Management Process - Set - 2

MASTER OF BUSINESS ADMINISTRATION - SEMISTER -1 MB0038 MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOR
Q1. State the characteristics of management. Answer:
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Management is a distinct activity having the following salient features or characteristics: 1. Goal-oriented: Management is a purposeful activity. It co-ordinates the efforts of employees to achieve the goals of the organization. The success of management is measured by the extent to which the organizational goals are achieved. It is imperative that the organizational goals must be well-defined and properly understood by the mangers at various levels. 2. 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 resources, namely, labour, capital and materials. These factors do not by themselves ensure production, they require the catalyst of management to produce goods and services required by the society. Thus, management is an essential ingredient of an organization. 3. Distinct Process: Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. These functions are so interwoven that it is not possible to lay down exactly the sequence of various functions or their relative significance. In essence, the process of management involves decision-making and putting of decisions into practice. 4. 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. Managers also seek to harmonize the individuals goals with the organizational goals for the smooth working of the organization. 5. Intangible Force: Management has been called an unseen force. Its presence is evidenced by the result of its efforts-orderliness, informed employees, buoyant spirit and adequate work output. Thus, feeling of management is result-oriented. One may not see with the naked eyes the functioning of management but its results are apparently known.
SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)
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People often remark of the effectiveness (or ineffectiveness) of management on the basis of the end results, although they cant observe it during operation. 6. Results through Others: The managers cannot do everything themselves. They must have the necessary ability and skills to get work accomplished through the efforts of others. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 7. A Science and an Art: Management has an organized body of knowledge consisting of welldefined concepts, principles and techniques which have wide applications. So it is treated as a science. The application of these concepts, principles and techniques requires specialized knowledge and skills on the part of the manager. Since the skills acquired by a manager are his personal possession, management is viewed as an art. 8. System of Authority: Management as a team of managers represents a system of authority, a hierarchy of command and control. Managers at different levels possess varying degrees of authority. Generally, as we move down in the managerial hierarchy, the degree of authority gets gradually reduced. Authority enables the managers to perform their functions effectively. 9. Multi-disciplinary Subject: Management has grown as a field of study (i.e. discipline) taking the help of so many other disciplines such as Engineering, Anthropology, Sociology and Psychology. Much of the management literature is the result of association of these disciplines. For instance, productivity orientation drew its inspiration from Industrial Engineering and human relations orientation from Psychology. Similarly, Sociology and Operations Research have also contributed to the development of management science. 10. Universal Application: Management is universal in character. The principles and techniques of management are equally applicable in the fields of business, education, military, government and hospital. Henri Fayol suggested that principles of management would apply more or less in every situation. The principles are working guidelines which are flexible and capable of adaptation to every organization where the efforts of human beings are to be co-ordinated.
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Q2. 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: Measuring Job Satisfaction: Job satisfaction is the sense of fulfillment and pride felt by people who enjoy their work and do it well. For an organization, satisfied work force ensures commitment to high quality performance and increased productivity Job satisfaction helps organizations to reduce complaints and grievances, absenteeism, turnover, and termination. Job satisfaction is also linked to a healthier work force and has been found to be a good indicator of longevity. And although only little correlation has been found between job satisfaction and productivity, it has also been found that satisfying or delighting employees is a prerequisite to satisfying or delighting customers, thus protecting the bottom line (Brown, 1996). The most important factors conductive to job satisfaction are: i) Mentally Challenging Work: Employees tend to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom and feedback on how well they are doing. Under conditions of moderate challenge, most employees will experience pleasure and satisfaction. ii) Personality-Job Fit: People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands of their jobs; and because of this success, they have a greater probability of achieving high satisfaction from their work. It is important, therefore to fit personality factors with job profiles. iii) Equitable Rewards: Employees want pay systems and promotion policies that they perceive as being just, unambiguous, and in line with their expectations. When pay is seen as fair based on job demands, individual skill level, and industry pay standards, satisfaction is likely to result. Similarly, employees seek fair promotion policies and practices. Promotions provide opportunities for personal growth, more responsibilities and increased social status. Individuals who perceive that promotion decisions are made in a fair and just manner are likely to experience job satisfaction.
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iv) Supportive working conditions: Employees prefer physical conditions that are comfortable and facilitate doing a good job. Temperature, light, noise and other environmental factors should not be extreme and provide personal comfort. Further, employees prefer working relatively close to home, in clean and relatively modern facilities and with adequate tools and equipment. v) Supportive Colleagues: Employees have need for social interaction. Therefore, having friendly and supportive co-workers and understanding supervisors leads to increased job satisfaction. Most employees want their immediate supervisor to be understanding and friendly, those who offer praise for good performance, listen to employees opinions and show a personal interest in them. vi) Whistle blowing: Whistle-blowers are employees who inform authorities of wrongdoings of their companies or co-workers. Whistle blowing is important because committed organizational members sometimes engage in unethical behaviour in an intense desire
to succeed. Organizations can manage whistle blowing by communicating the conditions that are appropriate for the disclosure of wrongdoing. Clearly delineating wrongful behaviour and the appropriate ways to respond are important organizational actions. vii) Social Responsibility: Corporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. Socially responsible actions are expected of organizations. Current concerns include protecting the environment, promoting worker safety, supporting social issues, investing in the community, etc. Managers must encourage both individual ethical behaviour and organizational social responsibility. Job enrichment: It is a deliberate upgrading of responsibility, scope, and challenge in the work itself. Job enrichment usually includes increased responsibility, recognition, and opportunities for growth, learning, and achievement. Large companies that have used job-enrichment programs to increase employee motivation and job satisfaction include, AT&T, IBM, and General Motors (Daft, 1997). Workers role in job satisfaction A worker should also take some responsibility for his or her job satisfaction. Everett (1995) proposed the following questions which employees ask themselves in regard to job satisfaction at the workplace:
1. When have I come closest to expressing my full potential in a work situation? 2. What did it look like? 3. What aspects of the workplace were most supportive? 4. What aspects of the work itself were most satisfying? 5. What did I learn from that experience that could be applied to the present situation? The following suggestions can help a worker find personal job satisfaction: 1. Seek opportunities to demonstrate skills and talents. 2. Develop communication skills. 3. Acquire job related skills and try to implement them. 4. Demonstrate creativity and initiative. 5. Improve team building and leadership skill. 6. Learn to de-stress.
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Q3. Define emotional intelligence. Explain Golemans model of emotional intelligence.
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Answer: Emotional Intelligence - EI - is a relatively recent behavioral model, rising to prominence with Daniel Goleman's 1995 Book called 'Emotional Intelligence'. The early Emotional Intelligence theory was originally developed during the 1970s and 80s by the work and writings of psychologists Howard Gardner (Harvard), Peter Salovey (Yale) and John 'Jack' Mayer (New Hampshire). Emotional Intelligence is increasingly relevant to organizational development and developing people, because the EI principles provide a new way to understand and assess people's behaviors, management styles, attitudes, interpersonal skills, and potential. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. Ever since the publication of Daniel Golemans first book on the topic in 1995, emotional intelligence has become one of the hottest buzzwords in corporate America. For instance, when the Harvard Business Review published an article on the topic two years ago, it attracted a higher percentage of readers than any other article published in that periodical in the last 40 years. When the CEO of Johnson & Johnson read that article, he was so impressed that he had copies sent out to the 400 top executives in the company worldwide. "Emotional intelligence is the capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships." Golemans Model of Emotional Intelligence Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with Emotional Intelligence. The competencies fall into four clusters: Self-Awareness: Capacity for understanding one's emotions, one's strengths, and one's weaknesses. Self-Management: Capacity for effectively managing one's motives and regulating one's behavior.

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Social Awareness: Capacity for understanding what others are saying and feeling and why they feel and act as they do. Relationship Management: Capacity for acting in such a way that one is able to get desired results from others and reach personal goals.
The most popular and accepted mixed model of emotional intelligence is the one proposed by Goleman (1995). He viewed emotional intelligence as a total of personal and social competences. Personal competence determines how we manage ourselves, whereas social competence determines how we handle our interpersonal relationships. Personal competence It comprises of three dimensions of emotional intelligence, such as, self-awareness, selfregulation and motivation. Self-awareness is the ability of an individual to observe him/herself and to recognize 'a feeling as it happens' (Goleman, 1995). The hallmarks of this ability are selfconfidence, self- assessment and openness to positive criticism. Self-regulation is the ability to control emotions and to redirect those emotions that can have negative impact. Trustworthiness, integrity, tolerance of ambiguity and attitude to accept change are some characteristics of this ability. Motivation is the ability to channelize emotion to achieve a goal through self-control and by moderating impulses as per the requirement of the situation. The people who have this ability are optimistic and committed towards organizational as well as individual goals. Social competence It comprises of two dimensions namely, empathy and social skills. Empathy is the ability to feel and get concerned for others, take their perspective and to treat people according to their emotional reactions. People with this ability are experts in generating and motivating others. Social skills are the ability to build rapport and to manage relationships with people. People having this skill are very effective in persuasiveness and team management. Social skill is the culmination of all other components of emotional intelligence assuming that people can effectively manage social and work relationships only when they can understand and control their own emotion and can emphasize with the feelings of others.
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Fig. 6.1: Golemans emotional intelligence model (1995)
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Q4. Explain the different leadership styles as per Managerial Leadership Grid Theory. Answer: The Managerial and Leadership Grid The Ohio studies led to two dimensions of leadership behaviour-concern for tasks and concern for relations. Almost in the same style, the Michigan University studies made the distinction between job-centred and production- centred leaders. Blake and Mouton rated these concepts in a framework called the Managerial Grid. They interpreted the concepts in a broad way. Blake and Mouton have used "Concern for Production" and "Concern for People'" in their Managerial Grid on horizontal and vertical axes respectively. Managers may be concerned for their people and they also must also have some concern for the work to be done. The question is, how much attention do they pay to one or the other? This is a model defined by Blake and Mouton in the early 1960s.It included Impoverished management Authority-compliance Country Club management Middle of the road management Team management
The Managerial Grid was the original name; the modifications were made by Robert R Blake and Anne Adams McCanse.1 After the modifications it was named as Leadership Grid. Fig: Leader Ship grid
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Leadership Grid an approach to understanding a leaders concern for results (production) and concern for people 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers have low concern for both people and production. Managers use this style to avoid getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. A leader uses a "delegate and disappear" management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. Features 1. Does only enough to preserve job and job seniority. 2. Gives little and enjoys little. 3. Protects himself by not being noticed by others. Implications 1. Tries to stay in the same post for a long time. Examples of Leader speak: I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position.
2. The country club style (1, 9). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees, in hopes that this would increase performance. The resulting atmosphere is usually friendly, but not necessarily that productive. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members.
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Examples of Leader speak: I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work. 3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate)
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This believes in the authority-obedience. With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance back. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This is used in case of crisis management. People who get this rating are very much task-oriented and are hard on their workers (autocratic). There is little or no allowance for co-operation or collaboration. Heavily task-oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someone's creativity), so it is difficult for their subordinates to contribute or develop. Examples of Leader speak: I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation. 4. The middle-of-the-road style (5, 5). The Status Quo Leader. (Balance & Compromise) It is Organization - man management approach,which believes that the adequate organization performance is possible through balancing the necessity to get out wprk with maintaining morale of people at satisfactory level. Managers using this style try to balance between company goals and workers' needs. By giving some concern to both people and production, managers who use this style hope to achieve acceptable performance. Examples of Leader speak: I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability.
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5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit)
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This is based on the aspect that work accomplishment is from committed people; interdependence through a common stake in the organization purpose leads to relationships of trust and respect. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. This type of person leads by positive example and endeavours to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams. Examples of Leader speak: I initiate team action in a way that invites involvement and commitment. I explore all facts and alternative views to reach a shared understanding of the best solution.
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Q5. Distinguish between internal and external forces of change? Answer: Forces for change are of two types: Internal forces External forces.
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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.
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External forces
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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
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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.
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Q6. What are the 14 principles of management of Henri Fayol. Answer: The 14 Management Principles from Henri Fayol (1841-1925) are:
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1. Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority. The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership. 4. Unity of Command. Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount. 7. Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system. 8. Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.
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11. Equity. In running a business a combination of kindliness and justice is needed. Treating employees well is important to achieve equity. 12. Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of personal vanity on the part of many managers. 14. Esprit de Corps. Management must foster the morale of its employees. He further suggests that: real talent is needed to coordinate effort, encourage keenness, use each persons abilities, and reward each ones merit without arousing possible jealousies and disturbing harmonious relations.
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Management Process - Set - 2

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MASTER OF BUSINESS ADMINISTRATION - SEMISTER -1 MB0038 MANAGEMENT PROCESS AND ORGANIZATION BEHAVIOR

Q1. State the characteristics of management. Answer:

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

Fig. 6.1: Golemans emotional intelligence model (1995)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

SMU Roll No. 571111211 (ASHA JYOTHI SAJJA)

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