Master of Business Administration

Semester I

MB0038 –Management Process & Organizational Behaviour

- 4 Credits

(Book ID:B1127)

Assignment

1. State the characteristics of Management?

Answer:

Management is a continuous, lively and fast developing science. Management is needed to convert the disorganized resources of men, machines, materials and methods into a useful and effective enterprise. Management is a pipeline, the inputs are fed at the end and they are preceded through management functions and ultimately we get the end results or inputs in the form of goods, services, productivity, information and satisfaction.

Management has been defined by different authors in a number of ways. Some call it a process of managing. Some call it a coordination of resources, some call it body of personnel challenged in the task of managing while others call it as an organized distinct discipline. The following are some of the main definitions of management:

1. Management as process:

Kimball, koontz and O'Donnell, Newmann and Summer, Stanley Vance, Theo Haimann, F.C. Hooper and E.F.T Breach they all call it a process. It is evident from the following definitions also:

I. According the Kimball-management may be broadly defined as the art of applying the economic principles that underlie the control of men and materials in the enterprise under consideration.

II. According to Koontz, "Management is the art of getting things done through and with people in formally organized groups."

III. According to Theo haimann, "Management is the function of getting things done through people and directing the efforts of individuals towards a common objective."

IV. According to Sisks, "Management is the process of working of with and other to effectively achieve organizational objectives by efficiently using limited resources in changing environment."

2. Management as an Activity:

According to this approach management consists of those activities, which are performed by managers in attaining the predetermined objectives of the business. This approach may be referred to Henry Fayol, who classified management activities into the following categories:

Technical - referred to production department. Commercial - relates to buying, selling and exchange. Financial concerned with maximum utilization of capital. Security concurred with protection of property and person. According concerned with maintenance of accounts, presentation and statistics and Management concerned to planning, organizing, commanding, coordinating and

controlling.3. Management as a group of personnel:

According to this approach human factor plays an important role in accomplishing business objectives. management is concerned with those who have been managing the affairs of the business. Managers are assigned duties and are also granted requisite authority to perform their duties efficiently and thus, management is effective direction, coordination and control of individual and group efforts to accomplish business objective.

This approach is advocated by management authorities like Taylor, Wilson and others. They have defined management as following. As per F.W. Taylor's approach, "Management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way."

4. Management as a discipline:

Some times the term 'Management' is used to connote neither the activity nor the personnel who exercise it, but as a substantive describes the subject, the body of knowledge and practices of management as a subject of study. Management is being taught in different college and universities as a district subject.

Thus, management, as such is a process, an activity, a discipline and as effort to coordination, control and direct individual and group efforts towards desired goal of the business.

Characteristics of Management:

The main characteristics of management are as follows:

I. Management is an activity: Management is an activity which is concerned with the efficient utilization of human and non-human resources of production.II. Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise or institution it is managing.III. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and objectives. According to the Haimann, "Effective management is always management by objectives". Managers and other personnel officers apply their knowledge, experience and skills to achieve the desired objectives.IV. Accomplishment through the efforts of Others: Managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others.V. Universal activity: Management is universal. Management is required in all types or organizations. Wherever there are some activities, there is management. The basic principles of management are universal and can be applied anywhere and in every field, such as business, social, religious, cultural, sports, administration, educational, politics or military.VI. Art as well as Science: Management is both an art and a science. It is a science as it has an organized body of knowledge which contains certain universal truths and an art as managing requires certain skills which apply more or less in every situation.VII. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles drawn from many social sciences like psychology, sociology etc.VIII. Management is distinct from ownership: In modern times, there is a divorce of management from ownership. Today, big corporations are owned by a vast number of

shareholders while their management is in the hands of paid qualified, competent and experienced managerial personnel.IX. Need at all levels: According to the nature of task and scope of authority, management is needed at all levels of the organization, i.e., top level, middle and lower level.X. Integrated process: Management is an integrated process. It integrates the men, machine and material to carry out the operations of the enterprise efficiently and successfully. This integrating process is result oriented.

2. What are the 14 principles of management of Henry Fayol?

Answer:

Management Principles developed by Henri Fayol:

1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

4. UNITY OF COMMAND: Workers should receive orders from only one manager. 5. UNITY OF DIRECTION: The entire organization should be moving towards a

common objective in a common direction. 6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The

interests of one person should not take priority over the interests of the organization as a whole.

7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.

8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

10.ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

11.EQUITY: All employees should be treated as equally as possible. 12.STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should

always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

13.INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.

14.ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

Q3. Distinguish between internal and external forces of change.

Answer:

Internal Forces:

Poor financial performance Employee dissatisfaction Inefficiency of existing business processes and systems Need to increase profitability Existence of cultural misfits to organisation goals and objectives

External Forces:

Changes in technology Political factors General macro-economic environment Changes in consumer tastes, preferences, purchasing patterns & frequencies Declining market shares due to competition

Q4. Define emotional intelligence. Explain Goleman’s model of emotional intelligence.

Answer:

Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions. Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic. Since 1990, Peter Salovey and John D. Mayer have been the leading researchers on emotional intelligence. In their influential article "Emotional Intelligence," they defined emotional intelligence as, "the subset of social intelligence that involves the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions" (1990).

Goleman identified the five 'domains' of EQ as:

1. Knowing your emotions.2. Managing your own emotions.3. Motivating yourself.4. Recognising and understanding other people's emotions.5. Managing relationships, i.e., managing the emotions of others.

Emotional Intelligence embraces and draws from numerous other branches of behavioural, emotional and communications theories, such as NLP (Neuro-Linguistic Programming), Transactional Analysis, and empathy. By developing our Emotional Intelligence in these areas and the five EQ domains we can become more productive and successful at what we do, and help others to be more productive and successful too. The process and outcomes of Emotional Intelligence development also contain many elements known to reduce stress for individuals and organizations, by decreasing conflict, improving relationships and understanding, and increasing stability, continuity and harmony.

Q5. Explain the different leadership styles as per Managerial – Leadership Grid Theory.

Answer:

The Managerial Grid is based on two behavioral dimensions: Concern for People – This is the degree to which a leader considers the needs of

team members, their interests, and areas of personal development when deciding how best to accomplish a task.

Concern for Production – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

i. Country Club Leadership – High People/Low ProductionThis style of leader is most concerned about the needs and feelings of members of his/her team. These people operate under the assumption that as long as team members are happy and secure then they will work hard. What tends to result is a work environment that is very relaxed and fun but where production suffers due to lack of direction and control.

ii. Produce or Perish Leadership – High Production/Low PeopleAlso known as Authoritarian or Compliance Leaders, people in this category believe that employees are simply a means to an end. Employee needs are always secondary to the need for efficient and productive workplaces. This type of leader is very autocratic, has strict work rules, policies, and procedures, and views punishment as the most effective means to motivate employees.

iii. Impoverished Leadership – Low Production/Low PeopleThis leader is mostly ineffective. He/she has neither a high regard for creating systems for getting the job done, nor for creating a work environment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony.

iv. Middle-of-the-Road Leadership – Medium Production/Medium PeopleThis style seems to be a balance of the two competing concerns. It may at first appear to be an ideal compromise. Therein lies the problem, though: When you

compromise, you necessarily give away a bit of each concern so that neither production nor people needs are fully met. Leaders who use this style settle for average performance and often believe that this is the most anyone can expect.

v. Team Leadership – High Production/High PeopleAccording to the Blake Mouton model, this is the pinnacle of managerial style. These leaders stress production needs and the needs of the people equally highly. The premise here is that employees are involved in understanding organizational purpose and determining production needs. When employees are committed to, and have a stake in the organization’s success, their needs and production needs coincide. This creates a team environment based on trust and respect, which leads to high satisfaction and motivation and, as a result, high production.

Q6. Mr. Suresh Kumar is the VP- HR of a leading Financial services company. He is having a meeting with Ms. Rejani Chandran leading HR consultant. Mr. Suresh is concerned about creating an environment that helps in increasing the job satisfaction amongst employees. Assume that you are Ms. Rejani, the HR consultant. What suggestions you will give to Mr. Suresh, for creating an environment that increases job satisfaction?

Answer:

Below are the suggestions for creating an environment with increased job satisfaction from an HR perspective:

Provide workers with responsibility-and then let them use it Show respect Provide a positive working environment Reward and recognition Involve and increase employee engagement Develop the skills and potential of your workforce Evaluate and measure job satisfaction