Assignment

Of

Management Process & Organizational Behavior

For

Name Abhimanyu Kumar

ROLL No. 1802000207
Drive Spring 2018
Program Master of Business Administration- MBA
Semester Semester 1
Subject Code MBA 101
Subject Name Management Process & Organizational
Behavior
Book ID B1621
 Assignment Set 1
1. Explain the definition and importance of management.

Ans.

Management

The definition for management is more comprehensive and much wider in its
scope. From the definitions referred above, it is clear that management is getting
things done through the efforts of other people.
Definition of Louis A. Allen, “Management is what a manager does.
Definition of Henxy Fayol, “To management is to forecast and plan, to organize,
to command, to coordinate and to control.”
Definition of F.N. Taylor, “Management is the art of knowing what you want to
do..... in the best and the cheapest way.”
Importance of management

 It helps in Achieving Group Goals - It arranges the factors of

production, assembles and organizes the resources, integrates the resources
in effective manner to achieve goals. It directs group efforts towards
achievement of pre-determined goals. By defining objective of organization
clearly there would be no wastage of time, money and effort. Management
converts disorganized resources of men, machines, money etc. into useful
enterprise. These resources are coordinated, directed and controlled in such
a manner that enterprise work towards attainment of goals.
 Optimum Utilization of Resources - Management utilizes all the
physical & human resources productively. This leads to efficacy in
management. Management provides maximum utilization of scarce
resources by selecting its best possible alternate use in industry from out of
various uses. It makes use of experts, professional and these services leads
to use of their skills, knowledge, and proper utilization and avoids wastage.
If employees and machines are producing its maximum there is no under
employment of any resources.
 Reduces Costs - It gets maximum results through minimum input by
proper planning and by using minimum input & getting maximum output.
Management uses physical, human and financial resources in such a
manner which results in best combination. This helps in cost reduction.
 Establishes Sound Organization - No overlapping of efforts (smooth
and coordinated functions). To establish sound organizational structure is
one of the objective of management which is in tune with objective of
organization and for fulfillment of this, it establishes effective authority &
responsibility relationship i.e. who is accountable to whom, who can give
instructions to whom, who are superiors & who are subordinates.
Management fills up various positions with right persons, having right
skills, training and qualification. All jobs should be cleared to everyone.
  Establishes Equilibrium - It enables the organization to survive in
changing environment. It keeps in touch with the changing environment.
With the change is external environment, the initial co-ordination of
organization must be changed. So it adapts organization to changing
demand of market / changing needs of societies. It is responsible for growth
and survival of organization.
 Essentials for Prosperity of Society - Efficient management leads to
better economical production which helps in turn to increase the welfare of
people. Good management makes a difficult task easier by avoiding wastage
of scarce resource. It improves standard of living. It increases the profit
which is beneficial to business and society will get maximum output at
minimum cost by creating employment opportunities which generate
income in hands. Organization comes with new products and researches
beneficial for society.

2. Explain the step involved in planning process. Discuss any 5

importance of organizing.

Ans.

The steps involved in planning process

Steps in planning process

Perception of opportunity
Establishing objectives
Planning premises
Identification of alternatives
Evaluation of alternatives
Choice of alternative plans
Formulation of supporting plans
Establishing sequence of activities
 Step # 1. Perception of Opportunities:
Perception of opportunities is not strictly a part of the planning process. But
this awareness of opportunities in the external environment as well as within
the organisation is the real starting point for planning. It is important to take a
preliminary look at possible future opportunities and see them clearly and
completely.
 Step # 2. Establishing Objectives:
This is the second step in the planning process. The major organisational and
unit objectives are set in this stage. This is to be done for the long term as well
as for the short range. Objective specify the expected results and indicate the
end points of what is to be done, where the primary emphasis is to be placed
and what is to be accomplished by the various types of plans.
 Step # 3. Planning Premises:
After determination of organisational objectives, the next step is establishing
planning premises that is the conditions under which planning activities will
be undertaken. Planning premises are planning assumptions the expected
environmental and internal conditions.
 Step # 4. Identification of Alternatives:
The fourth step in planning is to identify the alternatives. Various alternatives
can be identified based on the organisational objectives and planning
premises. The concept of various alternatives suggests that a particular
objective can be achieved through various actions.
 Step # 5. Evaluation of Alternatives:
The various alternative course of action should be analysed in the light of
premises and goals. There are various techniques available to evaluate
alternatives. The evaluation is to be done in the light of various factors.
Example, cash inflow and outflow, risks, limited resources, expected pay back
etc., the alternatives should give us the best chance of meeting our goals at the
lowest cost and highest profit.
 Step # 6. Choice of Alternative Plans:
This is the real point of decision-making. An analysis and evaluation of
alternative courses will disclose that two or more .ire advisable and beneficial.
The fit one is selected.
 Step # 7. Formulation of Supporting Plan:
After formulating the basic plan, various plan are derived so as to support the
main plan. In an organisation there can be various derivative plans like
planning for buying equipment, buying raw materials, recruiting and training
personal, developing new product etc. These derivative plans are formulated
out of the basic or main plan and almost invariably required to support the
basic plan.
 Step # 8. Establishing Sequence of Activities:
 After formulating basic and derivative plans, the sequence of activities is
determined so those plans are put into action. After decisions are made and
plans are set, budgets for various periods and divisions can be prepared to give
plans more concrete meaning for implementation.
Importance of organizing

 Benefits of Specialisation:
Under organising all the activities are subdivided into various works or jobs.
For all the sub works, competent people are appointed who become experts by
doing a particular job time and again. In this way, maximum work is
accomplished in the minimum span of time and the organisation gets the
benefit of specialisation.
 Clarity in Working Relationship:
Organising clarifies the working relations among employees. It specifies who is
to report to whom. Therefore, communication becomes effective. It also helps
in fixing accountability.
 Optimum Utilisation of Resources:
Under the process of organising the entire work is divided into various small
activities. There is a different employee performing every different job.
 Effective Administration:
It has generally been observed that there is always a condition of doubt about
the authority of the managers among themselves. The process of organising
makes a clear mention of each and every activity of every manager and also of
their extent of authority.
 Adaptation to Change:
Organising process makes the organisation capable of adapting to any change
connected with the post of the employees. This becomes possible only because
of the fact that there is a clear scalar chain of authority for the manager’s right
from the top to the lower level.

3. Explain the following:

a) Definition of leading.

b) Importance of leading.
Ans.

Definition of leading

Leading is another of the basic function within the management process "Leading
is the use of influence to motivate employees to achieve organizational
goals" (Richard Daft). Managers must be able to make employees want to
participate in achieving an organization's goals. Three components make up the
leading function:

 Motivating employees
 Influencing employees
 Forming effective groups.

The leading process helps the organization move toward goal attainment.
Leading involves the social and informal sources of influence that you use to
inspire action taken by others. If managers are effective leaders, their subordinates
will be enthusiastic about exerting effort to attain organizational objectives.
The behavioral sciences have made many contributions to understanding this
function of management. Personality research and studies of job attitudes provide
important information as to how managers can most effectively lead subordinates.
For example, this research tells us that to become effective at leading, managers
must first understand their subordinates’ personalities, values, attitudes, and
emotions.
Studies of motivation and motivation theory provide important information about
the ways in which workers can be energized to put forth productive effort. Studies of
communication provide direction as to how managers can effectively and
persuasively communicate. Studies of leadership and leadership style provide
information regarding questions, such as, “What makes a manager a good leader?”
and “In what situations are certain leadership styles most appropriate and
effective?”
Importance of Leading
It has been said that without leadership, all other business elements lie dormant.
Strong leaders can help an organization to maximize productivity and achieve
business goals, whereas weak leadership can hurt productivity and put the health of
the business in jeopardy. Leadership is not one blanket characteristic that cures all
ills, however, there are many different elements that must be present for an
organization’s leadership to be considered adequate.

 Provides Guidance
Managers should be able to provide meaningful guidance and advice for
employees. If needed, managers should be able to show employees how to
perform their job tasks more efficiently and effectively. Managers should also
be able to provide the support that employees need to grow and develop.
 Motivation
Good leaders motivate employees to work hard and meet organizational
needs through one means or another. Some leaders may inspire employees to
work hard, while other managers may cause employees to fear the
consequences of not working hard. Both methods work to drive motivation
and one may work better than the other depending on the manager’s specific
style and the culture of the organization.
 Initiates Action
It is critical that leaders initiate action by planning out who will perform
what tasks, when the tasks will be completed, and by what means the tasks will
be accomplished. Without a clearly defined plan to complete business goals
and good communication between managers and relevant parties, an
organization will fail no matter how strong the other aspects of managerial
leadership are. Managers should be able to initiate fast action to utilize human
resources to complete business needs.
 Builds Morale and Improves Satisfaction
Good leaders drive employee productivity by building confidence in
employees and creating a positive environment that is conducive to
productivity. When employees feel stressed or distracted, job performance and
job satisfaction suffer. When managers build morale, it can help to improve
retention, increase employee job satisfaction, and may favorably impact the
bottom line.
 Coordination
One of the most important things that every manager must do in order to be
effective is to align employee needs and organizational needs. Employee
talents, interests, and scheduling needs can all either benefit or detract from
an organization, depending on how well a manager works to align these things
with organizational needs and goals. The best managers will find a way to
effectively align each employee’s needs and talents with the organization’s
goals.
 Delegates Responsibilities
It is possible for leaders to delegate too much and it is possible for leaders to
delegate too little. Strong leaders know what to delegate and what to handle so
that the organization is as productive as possible. Adequate delegation is also
necessary for maintaining employee satisfaction, as employees may take
advantage of a manager that delegates too little and resent a manager that
delegates too much.
 Assignment Set 2
1. Define the term controlling. What are the pre-requisites of effective
control?

Ans.

Definition of controlling

Controlling can be defined as measuring and correcting of performance to achieve

the organizational goals. According to Breach, Controlling is a systematic exercise
which is called as a process of checking actual performance against the standards or
plans with a view to ensure adequate progress and also recording such experience as
is gained as a contribution to possible future needs “ According to Donnell,” just as a
navigator continually takes reading to ensure whether he is relative to a planned
action, so should a business manager continually take reading to assure himself that
his enterprise is on right course.”
Pre-requisites of Effective control
All managers like to have controls because without them their plans would go
awry. Now study the pre-requisites to have an effective control system.
 Tailoring controls to plans and positions – A control is exercised on an
activity or a group of activities it follows that what control is good for a
position may not be relevant for another .

 Tailoring controls to individual manager – Controls have to be adjusted

to the individual manager’s capability also, if someone does not understand a
control, he\she will not trust it or use it as a result of which it will become
dysfunctional.

 Designing “point to the exceptions at critical point” – if a control has

to be effective, it must control the exception and that too at the critical point .

 Objectivity of controls – Many management actions are subjective, but

when controls are created, they must be objective, accurate, and must suit a
standard, While this may be relatively easy in machine related systems and
financial related indicator, we have to be careful when we have to relate it to
the intangible areas.

 Flexibility – Controls must flexibility to include the changed plans

unforeseen circumstances, or outright failure.

 Fitting to the organizational culture - Imagine putting tight control over

Sambhavi whose culture is family-like and open with the freedom to
experiment. The control will most certainly effect the culture which to begin
with is the competitive advantage of Sambhavi Therefore it must fit the
culture, If you have a tight and bureaucratic system, a lose control will also not
work.
  Economy of controls - Controls must be worth their costs. Creating controls
which are excessively expensive is counter-productive. For example, we cannot
have the same controls in an aircraft and a car.

 Ability to lead to corrective action - The control should lead to corrective

action. Only then it closes the loop and leads to better performance For
example, if the ROI of an outlet is below the standards specified, there should
be a review system, which detest the section that have not contributed their
part ad have exceeded it so that the performance can be corrected or rewarded.

2. Explains the components and functions of attitude.

Ans.
Components of attitude
Attitudes are simply expressions of much we like or dislike various things.
Attitudes represent our evaluations, preferences or rejections based on the
information we receive.

3 components of attitude are:

1. Cognitive Component.
2. Affective Component.
3. Behavioural Component.

 Cognitive Component
The cognitive component of attitudes refers to the beliefs, thoughts, and
attributes that we would associate with an object. It is the opinion or belief
segment of an attitude. It refers that part of attitude which is related in general
knowledge of a person.
Typically these come to light in generalities or stereotypes, such as ‘all
babies are cute’, ‘smoking is harmful to health’ etc.
 Affective Component
Affective component is the emotional or feeling segment of an attitude.

It is related to the statement which affects another person.

It deals with feelings or emotions that are brought to the surface about
something, such as fear or hate. Using the above example, someone might
have the attitude that they love all babies because they are cute or that they
hate smoking because it is harmful to health.
  Behavioural Component
Behaviour component of an attitude consists of a person’s tendencies to
behave ‘in a particular way toward an object. It refers to that part of attitude
which reflects the intention of a person in short run or long run.
Using the above example, the behavioural attitude maybe- ‘I cannot wait to
kiss the baby’, or ‘we better keep those smokers out of the library, etc.

Functions of attitude

Based on extensive review of surveys of employers, an analysis concluded that

“the most important consideration in hiring and the biggest deficit among new
workforce entrants are the attitudes concerning work that they bring with them to
their jobs.
Any particular attitude may satisfy one or more functions.
4 functions of attitudes are:

1. Adjustment Function.
2. Ego-Defensive Function.
3. Value-Expressive Function.
4. Knowledge Function.

 Adjustment Function
Attitudes often help people to adjust to their work environment. When
employees are well treated, they are likely to develop a positive attitude toward
management and the organization.
When employees are criticized and given a minimal salary, they are likely to
develop a negative attitude toward management and the organization.
 Ego-Defensive Function
The ego-defensive function refers to holding attitudes that -protect our self-
esteem or that justify actions that make us feel guilty.
This function involves psychoanalytic principles where people use defence
mechanisms to protect themselves from psychological harm. Mechanisms
include denial, repression, projection, rationalization etc.
 Value-Expressive Function
Whereas ego defensive attitudes are formed to protect a person’s self-
image, value-expressive attitudes enable the expression of the person’s
centrally held values.
 Knowledge Function
The knowledge function refers to our need which is consistent and relatively
stable.
This allows us to predict what is likely to happen, and so gives us a sense of
control. Some attitudes are useful because they help to make the world more
understandable.
They help people ascribe causes to events and direct attention towards
features of people or situations that are likely to be useful in making sense of
them.
3. Define leadership. Write a brief note on ‘Contingency theory of
leadership’.

Ans.

Definition of leadership

Leadership is the art of motivating a group of people to act towards achieving a

common goal. This definition of leadership captures the leadership essentials of
inspiration and preparation. Effective leadership is based upon ideas but won't
happen unless those ideas can be communicated to others in a way that engages
them.

Contingency Theories of Leadership

Contingency theories suggest that there is no one best style of leadership and that
an effective style depends on how the leader adopts a style in relation to the group
and the situation. A previously successful style may not be effective in a new context.
Effective leadership is about finding a good fit between the behaviour, context, and
need.

Fielder’s Contingency Model (FCM) of leadership

This model dominates the modern literature on contingency theories. FCM
postulates that the leader’s effectiveness is based on ‘situational contingency’ which
is a result of the interaction of two factors, i.e., leadership style and situational
favourableness. Though over 400 studies have been conducted using this theory, it is
not a highly popular model.

Path goal theory

Path goal theory draws its inspiration from the expectancy model of motivation. If
there is a leader and a follower, the follower expects something and the leader is able
to fulfil it by defining it as a goal, means to achieve the goal, removing obstacles to
achieving it, etc.

Situational leadership
The work of Paul Hersey and Kenneth Blanchard (1969, 1993) resulted in this
highly popular model of situational leadership. This theory interestingly tends to
merge the ideas of style with the ideas of contingency or condition of the follower.
Task and situation are inherent in this since the term maturity relates to the ability
to handle the task in a situation.

Reddin’s 3D theory of managerial effectiveness

This theory builds on the Hersey Blanchard theory of situational leadership and
Blake and Mouton theory of Managerial grid. He identifies four effective styles that
are matched to the situation using the situational sensitivity of the leaders, i.e., the
ability to evaluate the situation and style flexibility or the ability to change the style
according to the situation. Four styles he describes are as follows:
 Bureaucrat – Typically they should be delegating and allowing people to do
their job. But if they do it when there is an emergency such as a fire, shortage
 of material in the factory, a strike, etc, it becomes like 1, 1 leader and actually
become deserters.
 Developer – Highly people oriented and participative in style which may be
excellent in leading a research team or when the job is unstructured.
 Executive – Task and people oriented and is consulting and selling. At times,
the followers may not understand the importance of achieving targets or the
situation may demand flawless execution even at the cost of considerable
discomfort to the people.
 Benevolent autocrat – Highly task oriented and uses a directive style.
Useful with followers of average calibre and abnormal situation.

The End