Spring / February 2012 Master of Business Administration- MBA Semester 1 MB0038 Management Process and Organizational Behavior - 4 Credits

(Book ID: B1127) Assignment Set- 1 (60 Marks) *Note: Each Question carries 10 marks. Answer all the questions. Q1. State the characteristics of management.
Ans: Characteristics of management are as: a) Goal-Oriented: Management has the task of attaining certain objectives. The success or failure of the management depends on how far it is able to attain the desired goals. It is judged by the extent to which it achieves its targets. b) Economic Resource: Management is one of the factors of production together with land, labour and capital. It is the most critical input in the success of any organized group activity. It is the force which assembles and integrates other activity. c) Distinct process: Consists of function such as planning, organizing, staffing, directing and controlling. These functions are so interrelated that it is impossible to lay down adjactly the sequence of various functions or their relative significance. d) Integrative Force: The essence of management is integration of human and other resources to achieve the desired objectives. All these resources are made available to those who manage. Managers apply knowledge, experience and management principles for getting the results from the workers by the use of non human resources. e) Intangible Force: It is also called invisible force. Its existence can be felt through the enterprise or institution it is managing. f) Result through Others: Managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. g) A science and an art: 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. h) System of Authority: 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. i) Multi-disciplinary System: Though management is a distinct discipline, it contains principles drawn from many social sciences like psychology, sociology etc j) Universal Application: Management is a universal activity, applied to any form of activity, economic or otherwise.

Q2. What are the 14 principles of management of Henri Fayol?

Ans: 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 workers 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, possesses 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.

Ans: 1) Internal forces: Any change in organizations internal factors may also necessitate change. Such a change is required because of two reasons: change in managerial personnel and deficiency in existing organizational practices. Change in the top management: Change in the top management and consequent change in the ideas to run the organization also leads to change in the system, structure and processes. Old managers are replaced by new managers which are necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working into the organization. The formal or informal relationships may change because of changes in top management. Moreover, attitudes, ideology, leadership style of the person may be different from the earlier one, this will reflect in their actions and decisions. The result is that an organization has to change accordingly. Change in size of the organization: Change in the organizations size leads to change in the internal structure and complexity of the operations in the organization. Performance gaps: When a gap between set target and actual results (in terms of market share, employee productivity and profit) is identified, organizations face the forces to change and reduce the gap. Employee needs and values: With changing needs and values of the employees, organizations change their policies. For example, attractive financial incentives, challenging assignments, vertical growth opportunities and autonomy at work may be provided in an organization to attract and retain its effective employees. Deficiency in existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack of co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co-operation between line and staff and so on. 2) External forces: Each organization has goals and responsibility related to others in its environment. Thus, an organization must not only deal with its environment in conducting its affairs, but also give consideration to the goals of others, as it establishes its goals and conducts its operations. The present-day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technological, and legal environment force organizations to change themselves. Such changes may result in organizational changes like

major functions, production process, labour-management relations, nature of competition, economic constraints, organization methods, etc. In order to survive in the changing environment, organization must change. Technology: Technological changes are responsible for changing the nature of the job performed at all levels in an organization. When there is a change in technology in the organizations environment and other organizations adopt the new technology, the organization under focus becomes less cost-effective and its competitive position weakens. Therefore, it has to adopt new technology. When the organizations adopt a new technology, its work structures are affected and a new equilibrium has to be established. We have seen that technology has impact on organization structure, organizational processes, and behavior of people. For example, computers and automation have made significant impact on organizational functioning. Business scenario: Due to rapid changes in the business scenario with increasing competition and global economy, the needs and demands are also changing among the customers, suppliers and other stakeholders. Organizations are, therefore, forced to change their operational methods to meet the demands of the stakeholders. Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization, other organizations supplying the same products and, buyers who are buying the product. Any change in these forces may require suitable changes in the organization. For example, when Indian economy was liberalized (the process still continues), there were many foreign organizations which entered the Indian market. This forced many Indian organizations to re-align themselves with the new situation. The result is that there have been many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking-disliking, and income disposal for a product. These changes force the organizations to bring those products which meet buyers requirements. Environmental and National factors: Environmental factors such as economic, political and demographic and legal factors play a vital role in devising organizational policies and strategy. Any change in these political and legal factors may affect the organizational operation. For example, organizations may have to change their employment policies in accordance with the government policy, demand of the non-government organizations and changing economic conditions of a country. Social changes: Social changes reflect in terms of peoples aspirations, their needs, and their way of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people.

Q4. Define emotional intelligence. Explain Golemans model of emotional intelligence.

Ans: 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. Since1990, 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. Recognizing 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 behavioral, 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.
Ans: 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 . C o u n t r y C l u b L e a d e r s h i p H i g h P e o p l e / L o w P r o d u c t i o n This 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.

I i . P r o d u c e o r P e r i s h L e a d e r s h i p H i g h P r o d u c t i o n / L o w P e o p l e Also 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.

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?
Ans: 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

Spring / February 2012 Master of Business Administration- MBA Semester 1 MB0038 Management Process and Organizational Behavior - 4 Credits (Book ID: B1127) Assignment Set- 2 (60 Marks) *Note: Each Question carries 10 marks. Answer all the questions. Q1. Explain sensitivity training.
Ans: sensitivity training is a psychological technique in which intensive group discussion and interaction are used to increase individual awareness of self and others,it is practiced in a variety of forms under such n a m e s a s T - group, encounter group, h u m a n r e l a t i o n s , a n d g r o u p d y n a m i c s t r a i n i n g . T h e group is usually small and unstructured and chooses its own goals. A trained leader is generally present to help maintain a psychologically safe atmosphere in which participants feel free to express themselves and experiment with new ways of dealing with others. The leader remains as much as possible outside the discussion. Issues are raised by the group members, and their interactions evokea w i d e v a r i e t y o f f e e l i n g s . T h e l e a d e r e n c o u r a g e s p a r t i c i p a n t s t o e x a m i n e verbally their own and others reactions. It is believed that as mutual trust is developed, interpersonal communication increases, and eventually attitudes will change and be carried over into relations outside the group. Often, however, these changes do not endure. Sensitivity training seems to be most effective if sessions are concentrated and uninterrupted, as in several days of continuous meetings. Sensitivity-training methods derived in large part from those of group psychotherapy. They have been applied to a wide range of social problems (as in business and industry) in an effort to enhance trust and communication among individuals and groups throughout an organization.

Q2. Describe the bases of power.

Ans: Power is the ability to make things happen in the way an individual wants, either by self or by the subordinates. The essence of power is control over the behavior of others (French & Raven, 1962). Managers derive power from both organizational and individual sources. There two kinds of power Formal and Informal. Formal Power consists of the following bases - Coercive, Reward, Legitimate, Informational.

Informal Power consists of the following bases Expert, Rational persuasion Referent power, Charismatic power. Positional power- Also called "legitimate power"; it is the power of an individual because of the relative position and duties of the holder of the position within an organization. Legitimate power is formal authority delegated to the holder of the position. It is usually accompanied by various attributes of power such as uniforms, offices etc. This is the most obvious and also the most important kind of power. Referent power- Referent power is the power or ability of individuals to attract others and build loyalty. It's based on the charisma and the interpersonal power of the skill holder. A person may be admired because of specific personal trait, and this admiration creates the opportunity for interpersonal influence. Here the person under power desires to identify with these personal qualities, and gains satisfaction from being an accepted follower, Nationalism and patriotism count towards an intangible sort of referent power. For example, soldiers fight in wars to defend the honor of the country. This is the second least obvious power, but the most effective. Advertisers have long used the referent power of sports figures for products endorsements, for example. The charismatic appeal of the sports star supposedly leads to an acceptance of the endorsement, although the individual may have little real credibility outside the sports arena. Expert power - Expert power is an individual's power deriving from the skills or expertise of the person and the organization's needs for those skills and expertise. Unlike the others, this type of power is usually highly specific and limited to the particular area in which the expert is trained and qualified. Reward power - Reward power depends on the ability of the power wielder to confer valued material rewards, it refers to the degree to which the individual can give others a reward of some kind such as benefits, time off, desired gifts, promotions or increases in pay or responsibility. This power is obvious but also ineffective if abused. People who abuse reward power can become pushy or became reprimanded for being too forthcoming or 'moving things too quickly'. Coercive power - Coercive power is the application of negative influences. It includes the ability to demote or to withhold other rewards. The desire for valued rewards or the fear of having them withheld that ensures the obedience of those under power. Coercive power tends to be the most obvious but least effective form of power as it builds resentment and resistance from the people who experience it. Informational power - Informational power is based on the potential use of informational resources. This influence can occur through such means as rational argument, persuasion, or factual data. Members of a group can make information into power by giving it to others who need it, by keeping it to themselves, by organizing it in some way, by increasing it, or even by falsifying it.

Q3. What are the hindrances that we face in perception?

Ans: Following are the barriers to perception: a) Selective perception - People selectively interpret what they see o n t h e basis of their interests, background, experience, knowledge, exposure, and attitudes. The tendency to see what we want to see using short cut scan makes us draw unwarranted conclusions from an ambiguous situation.

b) Halo Effect This effect occurs when we draw a general impression on the basis of a single characteristic .But what this experiment demonstrates is that although we can understand the halo effect intellectually, we often have no idea when it is actually happening. This is what makes it such a useful effect for marketers and politicians. We quiet naturally make the kinds of a d j u s t m e n t s d e m o n s t r a t e d i n t h i s e x p e r i m e n t w i t h o u t e v e n realizing it. And then, even when it's pointed out to us, we may well still deny it. C) Contrast Effect Individuals do not evaluate a person in isolation. Their reaction to one person is influenced by other people t h e y h a v e encountered recently. d) Projection This tendency to attribute one`s own characteristics to other people is called projection. This too can distort perceptions made about others. When managers engage in projection, they compromise their ability to respond to individual differences. They tend to see people as more homogenous than they really are. e) S t e r e o t y p i n g J u d g i n g s o m e o n e o n t h e b a s i s o f o u r p e r c e p t i o n o f t h e group to which he or she belongs. Stereotypes are generalizations about a group of people whereby we attribute a defined set of characteristics to this group. These classifications can be positive or negative, such as when various nationalities are stereotyped as friendly or unfriendly. It is easiert o c r e a t e s t e r e o t y p e s w h e n t h e r e i s a c l e a r l y v i s i b l e a n d c o n s i s t e n t attribute that can easily be recognized. This is why people of color, police and women are so easily stereotyped. People from stereotyped groups can find this very disturbing as they experience an apprehension (stereotype threat) of being treated unfairly. F) First-Impression Error -Is the tendency to form lasting opinions about an individual based on initial perceptions. We tend to remember what we perceive first about a person and sometimes we are quite reluctant to change our initial impressions

Q4. What are the consequences of conflict in organisations?

Ans: Organizational Conflict can have both positive and negative consequences. Negative consequences: Increased costs (time, money) devoted to dealing witht h e c o n f l i c t , w a s t e d r e s o u r c e s a n d e n e r g y s p e n t d e a l i n g w i t h t h e c o n f l i c t , Decreased productivity, Lowered motivation, Decreased morale, Poor decision-making, Withdrawal and miscommunication or non-communication, Complaints and blaming, Backstabbing and gossip, Attitudes of distrust and hostility (that may influence all future interactions, (Permanent) erosion to personal, work, and community relationships, Harm to others not directly involved in the conflict,D a m a g e d e m o t i o n a l a n d p s y c h o l o g i c a l w e l l b e i n g o f t h o s e i n v o l v e d i n t h e conflict, Dissatisfaction and stress.Positive consequences: Leads to new ideas, Stimulates creativity, Motivatesc hange, Promotes organizational vitality, Helps individuals and gro ups toestablish identities, Serves as a safety valve to indicate pr o b l e m s , B u i l d s cooperation, Helps individuals to develop skills on how to m a n a g e c o n f l i c t s , Improving quality decisions.

Q5. Explain the four processes of Social Learning Theory.

Ans: The Social Learning Theory was proposed by Albert Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes , a n d emotional reactions of others. The four processes of Social Learning Theory are: a) A t t e n t i o n p r o c e s s e s : S o c i a l C o g n i t i v e T h e o r y i m p l i e s t h a t y o u m u s t p a y attention for you to learn. If you want to learn from the behavior of them o d e l ( t h e p e r s o n t h a t d e m o n s t r a t e s t h e b e h a v i o r ) , t h e n y o u s h o u l d eliminate anything that catches your attention other than him. Also, the more interesting the model is, the more likely you are to pay full attention to him and learn. b) Retention processes: The ability to store information is also an important part of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital to observational learning. c) Reproduction processes: Once you have paid attention to the model and retained the information, it is time to actually perform the behavior you observed. Further practice of the learned behavior leads to improvement and skill advancement. d) Reinforcement processes: Finally, in order for observational learning to be successful, you have to be motivated to imitate the behavior that has been modeled. Reinforcement and punishment play an important role in motivation. While experiencing these motivators can be highly effective, so can observing other experience some type of reinforcement or punishment. For example, if you see another student rewarded with extra credit for being to class on time, you might start to show up a few minutes early each day.

Q6. Ms.Chanchal Das Gupta is a recruitment specialist. For the post of QC Manager, she interviews three Candidates. Given below are the physical characteristics of the candidates. Candidate Mr. Ravi Mr.Gineesh Mr.Ramgopal Physical Characteristics Muscular, thick skin, rectangular shaped. Thin, delicate build, large brain, tall. Soft, round shaped, underdeveloped muscles.

From the above descriptions, what personality traits can Ms. Chanchal derive out of the candidates as per Sheldons theory of personality? Ans: Per Sheldon`s theory of personality, below are the traits that Ms. Chanchal can derive:
a) Mr. Ravi represents Mesomorph body type. He is well-proportioned. Psychologically he is Adventurous, Courageous, Indifferent to what others think or want, Assertive/bold, Zest for physical activity, Competitive, With a desire for power/dominance, And a love of risk/chance b) Mr. Gineesh represents Ectomorph body type. Psychologically he is Selfconscious, Private, Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained, Thoughtful c) Mr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving, Love of food, Tolerant, Even-tempered, Good humored, Relaxed, With a love of comfort, And has a need for affection