1st SEMESTER MBA ASSIGNMENT

Question 1 - Define the terms strategy. Explain the following:

a) Corporate strategy
b) Business strategy
c) Functional strategy
Answer -1 Strategy: Strategy means the grand plan which may pertain to the
corporate, business, business or functional area such as marketing. This is a way of
achieving the vision and mission. Strategy in organization can be broadly divided into
Corporate Strategy, Business Strategy and Functional Strategy.
Corporate Strategy: Many big business conglomerates like TATA, Reliance etc.
have more than one business under them. Each of these businesses may be run
independently by a company. The corporate headquarters lays down a grand plan to
be followed by each business under a corporate headquarters. For example, it might
say that Reliance Communication will offer 4G service within 2 years at affordable
rates. This grand plan created by the corporate headquarters is called Corporate
Strategy.
Business Strategy: It is the grand plan for doing business in conjunction with
corporate strategy provided by the corporate headquarters. It is a means and
detailed plan of executing the corporate strategy. For example, the Reliance
Communications will have to make its own business strategy for rolling out its 4G
services at an affordable rate. Thus the detailed and grand plan for doing business
is called Business Strategy.
Functional Strategy: Once a business organization has a business strategy, each
independent department will need its own strategy. For example, the HR of Reliance
Communications will need a strategy quite different from the HR of Reliance
Petroleum. So, the operations, marketing, finance, HR, etc of each business will
make their own grand plan or strategy and this is called Functional Strategy. Usually
organizations have operations strategy, finance strategy, marketing strategy and HR
strategy. If the business is large and well diversified it may have an information
strategy, supply chain strategy etc.

Question 2 Define the term management. Explain the Behavioural science

theory and Systems theory.
Answer 2 - According to Harold Koontz, Management is an art of getting things
done through and with people in formally organized groups. It is an art of creating an
environment in which people can perform as individuals and can co-operate towards
the attainment of group goals. According to F.W. Taylor, Management is an art of
knowing what to do, when to do, and see that it is done in the best and cheapest
way.
After modifying the definition given by Harold Koontz management can be
defined as the process of designing and maintaining an environment in which the
individuals working in groups efficiently employ resources and accomplish the
selected goals of self and the organization. This definition brings to fore the
following key issues of management:(a)
(b)
(c)

It is about people and other resources,

There are goals but goals of the individual and the organization has to
be managed,
It involves creating an environment where people and resources
interact to produce the goals.

Behavioural science theory: The thought was originated by Vilfredo Pareto in

1896. Later, Hugo Munsterberg applied psychology to increase industrial production
in 1912 and around the same time, Walter Dili Scott applied psychology to
advertising, marketing, and personnel in 1910 and 1911. But it was Elton Mayo and
F.J Roethlisberger who made an impact on the behavioural science theory through
their Hawthrone experiments in Western Electric Company in 1933. These
experiments proved that good working relationship with the supervisor and
colleagues and the idea of challenge in the job accounted for higher productivity.
Challenge is created through setting high goals which cannot be normally achieved
but which can be achieved with a little additional effort. These experiments brought
to fore the importance of behavioural science in management.
Systems Theory: It was Chester Barnard who extended this seemingly biological
theory into management area through his writing Functions of the Executive in
1938. In systems theory, we perceive that organizations have a number of fairly
independent systems such as purchase system, operations system, marketing
system, financial system etc. The working of these are independent, but it has to be
integrated by the manager. This theory, perhaps, brings the idea of integration as a
key component of management.

Question 3 Give the definition and importance of planning in an organization

and explain the steps in planning.
Answer 3 Planning is a basic management function which enables one to select
the purpose of the business, and how the resources should be mustered to achieve
that purpose to include using the available resources optimally to do that. Planning
implies goal setting for the organization keeping in mind the constraints,
opportunities, and threats.
Planning is important for the following reasons:

It helps the management to clarify, focus, and research their businesses or

projects development and prospects.
It provides a considered and logical framework within which a business can
develop and pursue business.
It offers a benchmark against which the actual performance can be measured
and reviewed.
It plays a vital role in helping to avoid mistakes or recognize hidden
opportunities.
In the business context, it guides the development of products, management,
finances, and most importantly, markets and competition.
It helps in forecasting the future and makes the future visible to some extent.
It bridges between where we are and where we want to go.

Steps in planning are listed below:Qualifying Plans by Budgeting

Formulating Plans
Selecting a Course
Evaluating Alternative Courses
Determining Alternative Courses
Developing Premises
Establishing Objectives
Being Aware of Opportunities

Being aware of opportunities: This means being aware of the customer needs,
market, competition, our strengths, and weaknesses. This is done through market
research, competitor analysis and SWOT analysis.
Establishing objectives: This implies establishing what we want to be and what we
want to accomplish and when and in relation to which market segment.

Developing premises:
This means deciding on the external and internal
environment in which our plans are going to operate. The external analysis is done
through a process called PEST analysis.
Determining alternative courses: Identifying the most promising alternatives to
accomplish what we want to do is done by combining the information about the
opportunities, threats, and own strength and weakness. This is done through TOWS
matrix.
Evaluating alternative courses: Comparing the alternatives to find out which of
them will meet the goal at optimal cost and profit.
Selecting a Course: Selecting the course that we want to follow.
Formulating plans: This implies making plans that support the course of action by
buying equipment, space, planning the type of HR, etc.
Qualifying plans by budgeting: Identifying the cost involved, how the financial
resources will be mobilized, what is capital expenditure, what is operational
expenditure, the working capital etc.

Question 4 - What is meant by leading? Describe the characteristics of leading.

Answer 4 Leading can be defined as the process of setting direction, creating
alignment, and creating engagement to deliver high productivity and to facilitate
change.
Leading is different from directing which is the process by which the
managers instruct, guide, and oversee the performance of the workers to achieve
predetermined goals.
Thus leading and directing are not mutually exclusive, nor are they two sides of a
coin. They can be perceived to be a continuum along which organizations to
achieve maturity in getting work done and surpassing the goals.
Characteristics of leading: Various characteristics of leading are described below:Pervasiveness: Leading is required at all level of the organization. It is incorrect to
believe that leading is required only at the top level. In team based working, the
team leader has to act much like a CEO except that the level of working may be
much smaller.
Continuity: Leading is a continuous activity as it is continuous throughout the life of
organization. It takes place on a day to day basis though its importance may
become higher when the organization is undergoing a change.
Human factor: Leading implies the existence of followers much like directing
implies the existence of subordinates to whom one can pass orders. It follows that
there is a key human factor in leading and because human factor is complex and
behavior is unpredictable, leading function is important and people have to learn the
art of leading.
Creativity: Leading is a creative activity because of the human factors and
individual variances and group variances. It is creativity aspect which brings in the
differentiation. It also ensures that people have to look forward to the meaning and
without functions people find it difficult to find the meaning. Hence creating functions
around which people find meaning is a creative function that leads to achievements.
Executive function: Leading is carried out by all managers and executives at all
levels throughout the working of an enterprise. Leading implies that the followers
execute the functions, which the leader and the follower agree is important for
achieving the organizational goals and through it the individual goals.
Delegating function: Leading implies guiding followers to destination. It means
that the followers actually execute and if they have to execute, they need the powers
for doing so. Hence, delegating is natural fallout of leading.

Question 5 What are attitudes? Explain the components and functions of

attitude.
Answer 5 - Attitudes are also known as frames of reference. They provide the
background against which facts and events are viewed. It becomes necessary to
know the attitudes of members of an organization because they have to perceive
specific aspects like pay, hours of work, promotion, etc. of their work life in the wider
context of their generalized attitudes.
An attitude is the predisposition of the individual to evaluate some objects in a
favourable or an unfavourable manner. It is our feelings, thoughts and behavioural
tendencies toward a specific object or situation. Attitude is a predisposition to
respond to a certain set of facts. Attitudes are evaluative statements either
favourable or unfavourable concerning the objects, people or events.
Components of attitude
Cognition It is the mental process involved in gaining knowledge and
comprehension, including thinking, knowing, remembering, judging and
problem solving. The cognition component of an attitude reflects a persons
perceptions of beliefs.
Affect This component refers to the persons feelings that result from his/her
beliefs about a person, object or situation. Affect is the emotional component
of an attitude. It refers to an individuals feeling about something or someone.
Behaviour This component refers to the individuals behaviour that occurs
as a result of his or her feeling about the focal person, object or situation. The
behavioural component of an attitude refers to an intention to behave in a
certain way toward someone or something.
Functions of attitude
According to Kartz, attitudes serve four important functions from the viewpoint
of organizational behaviour. These are as follows:
Adjustment Function: Attitudes often help people to adjust to their work
environment. Well-treated employees tend to develop a positive attitude
toward their job, management and the organization in general, while berated
and ill treated organizational members develop a negative attitude.
Ego-defensive function: Attitudes help people to retain their dignity and selfimage. When a young faculty member who is full of fresh ideas and
enthusiasm, joins the organization, the older members might feel somewhat
threatened by him/her.
Value-expressive function: Attitudes provide individuals with a basis for
expressing their values. For example, a manager who values hard and

sincere work will be more vocal against an employee who is having a very
casual approach towards work.

Knowledge Function Attitudes provide standards and frames of reference

that allow people to understand and perceive the world around them.

Question 6 Define leadership.

democratic leadership style.

Differentiate between Laissez Faire and

Answer 6 According to Warren Bennis leadership is a function of knowing

yourself, having a vision that is well communicated, building trust among colleagues,
and taking effective action to realise your own leadership potential. According to
Bernard M. Bass leadership has been conceived as the focus of group proceses, as
a matter of personality, as a matter of inducing compliance, as the exercise of
influence, as particular behaviours, as a form of persuasion, as a power relation, as
an instrument to achieve goals, as an affect of interaction, as a differentiated role, as
initiation of structure, and as many combinations of these definitions.
Simply put, 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 wont happen unless those ideas can be communicated to others in a way that
engages them. In simple words, the leader is the inspiration and the director of the
action. He is the person in the group that possesses the combination of personality
and leadership skills that makes others want to follow his direction.
Difference between Laissez Faire and Democratic Leadership
Laissez Faire is a style of leadership in which the leader fails to accept the
responsibilities of the position. Whereas, Democratic leadership is a style of
leadership in which the leader takes collaborative, responsive, interactive actions
with followers concerning the work and the work environment. The major difference
between both the style of leadership are tabulated below:
Area
Goal setting

Laissez Faire
Allows followers free rein to set
their own goals.
Engages
in
noncommittal,
superficial communication.
Avoids discussion with followers to
set policy and procedures.
Avoids interaction

Democratic
Involves followers in setting
goals.
Communication
Engages in two-way, open
communication.
Discussion
Facilitates
discussion
with
followers.
Interaction
Focus on interaction. Solicits
input regarding determination of
policy and procedures.
Suggestion
Provides
suggestions
and Provides
suggestions
and
alternatives for the completion of alternatives for the completion of
tasks only when asked to do so by tasks.
followers.
Feedback
Provides infrequent feedback off Provides
frequent
positive
any kind.
feedback.
Rewards
& Avoids
offering
rewards
or Rewards good work and uses
punishment
punishment.
punishment only as a last resort.
Listening skills
May exhibit either poor or effective Exhibits effective listening skills.
listening skills.

Conflict
management

Avoids conflict.

Mediates conflict for group gain.