ASSIGNMENT-02/02

Name: Registration No: Learning Center: Learning Center Code: Course: Subject: Semester: Subject Code: Date of submission: Marks awarded: MBA Management Process and Organization Behavior 1 MB0038 22.08.2012

Directorate of Distance Education Sikkim Manipal University II Floor, Syndicate House Manipal 576 104

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Q1. What are the consequences of conflict in organisations?

Answer: Conflict occurs whenever disagreements exist in a social situation over issues (work related or personal). Conflict is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about (Thomas, 1992). Conflict can be either constructive or destructive. Constructive conflict prevents stagnation, stimulates creativity, allows tensions to be released. However, excessive levels of conflict can hinder the effectiveness of a group or an organization, lessens satisfaction of group members, increases absence and turnover rates, and, lowers productivity. Functional, constructive forms of conflict support the goals of the group and improve its performance. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. Task conflict relates to the content and goals of the work. Low-tomoderate levels of task conflict are functional and consistently demonstrate a positive effect on group performance because it stimulates discussion, improving group performance. Relationship conflict focuses on interpersonal relationships. These conflicts are almost always dysfunctional and the friction and interpersonal hostilities inherent in relationship conflicts increase personality clashes and decrease mutual understanding. Consequences & Outcome of Conflicts Not all conflicts are bad. In fact, some types of conflict encourage new solutions to problems and enhance the creativity in the organizations. In these cases, managers will want to encourage the conflicts. Functional conflicts are conflicts that support the goals of the group and improve its performance. There are also conflicts that hinder group performance. These are dysfunctional or destructive forms of conflict. Therefore, managers should stimulate functional conflict and prevent or resolve non-dysfunctional conflict. This is the key to conflict

management. The consequences of conflict can be positive or negative, as shown below:

Positive Consequences Leads to new ideas. Stimulates creativity. Motivates Change. Promotes organizational vitality. Helps individuals and groups establish identities Serves as a safety valve to indicate problems. Negative Consequences Diverts energy from work. Threatens psychological well-being. Wastes resources. Creates a negative climate. Breaks down group cohesion. Can increase hostility and aggressive behaviours

Functional vs. Dysfunctional Conflict Functional, constructive forms of conflict support the goals of the group and improve its performance. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. Task conflict relates to the content and goals of the work. Low-to-moderate levels of task conflict are functional and consistently demonstrate a positive effect on group performance because it stimulates discussion, improving group performance. Dysfunctional Conflict: There are conflicts that hinder group performance, and are therefore known as dysfunctional or destructive forms of conflict. Dysfunctional conflict is an unhealthy, destructive disagreement between two or more people. A key for recognizing a dysfunctional conflict is that its origin is often emotional or behavioural. Disagreements that involve personalized anger and resentment directed at specific individuals rather than specific ideas are dysfunctional. In dysfunctional conflict, the losses to both parties may exceed any potential gain from the conflict.

Q2. State the characteristics of management.

Answer: Management is a technique of extracting work from others in an integrated and co-ordinated manner for realizing the specific objectives through productive use of different resources. Mobilizing the physical, human and financial resources and planning their utilization for business operations in such a manner as to reach the defined goals can be referred to as management. 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. 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 well-defined 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.

Q3. Explain the four processes of Social Learning Theory.

Answer: The social learning theory was proposed by Bandura. It recognizes the importance of observing and modeling the behaviors, attitudes, and emotional reactions of others. According to Bandura (1977), most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action. Social learning theory explains human behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and environmental influences. Learning would be exceedingly laborious, not to mention hazardous, if people had to rely solely on the effects of their own actions to inform them what to do. Fortunately, most human behavior is learned observationally through modeling: from observing others one forms an idea of how new behaviors are performed, and on later occasions this coded information serves as a guide for action. Albert Bandura, Social Learning Theory, 1977 Social learning has four processes: 1. Attention processes People learn from a model only when they recognize and pay attention to its critical features. In order to learn, it is required to pay attention. Anything that detracts the attention is going to have a negative effect on observational learning. If the is model interesting or there is a novel aspect to the situation, it is more likely to dedicate the full attention to learning. 2. Retention processes A models influence will depend on how well the individual remembers the models action after the it is no longer readily available. 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.

3. Motor reproduction processes After a person has seen a new behavior by observing the model, the watching must be converted to doing. 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. 4. Reinforcement processes Individuals will be motivated to exhibit the modeled behavior if positive incentives or rewards are provided. 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. Principles of social learning are as follows: 1. The highest level of observational learning is achieved by first organizing and rehearsing the modeled behavior symbolically and then enacting it overtly. Coding modeled behavior into words, labels or images results in better retention than simply observing. 2. Individuals are more likely to adopt a modeled behavior, if it results in outcomes they value. 3. Individuals are more likely to adopt a modeled behavior, if the model is similar to the observer and has admired status and the behavior has functional value.

Q4. What are the 14 principles of management of Henri Fayol?

Answer: Henri Fayol, a mining engineer and manager by profession, defined the nature and working patterns of the twentieth-century organization in his book, General and Industrial Management, published in 1916. In it, he laid down what he called 14 principles of management. This theory is also called the Administrative Theory. The principles of the theory are: 1. Division of work: tasks should be divided up with employees specializing

in a limited set of tasks so that expertise is developed and productivity increased. 2. Authority and responsibility: authority is the right to give orders and

entails enforcing them with rewards and penalties; authority should be matched with corresponding responsibility. 3. Discipline: this is essential for the smooth running of business and is

dependent on good leadership, clear and fair arguments, and the judicious application of penalties. 4. Unity of command: for any action whatsoever, an employee should

receive orders from one superior only; otherwise authority, discipline, order, and stability are threatened. 5. Unity of direction: a group of activities concerned with a single objective

should be co-coordinated by a single plan under one head. 6. Subordination of individual interest to general interest: individual or

group goals must not be allowed to override those of the business.

7.

Remuneration of personnel: this may be achieved by various methods but

it should be fair, encourage effort, and not lead to overpayment. 8. Centralization: the extent to which orders should be issued only from the

top of the organization is a problem which should take into account its characteristics, such as size and the capabilities of the personnel. 9. Scalar chain (line of authority): communications should normally flow up

and down the line of authority running from the top to the bottom of the organization, but sideways communication between those of equivalent rank in different departments can be desirable so long as superiors are kept informed. 10. Order: both materials and personnel must always be in their proper

place; people must be suited to their posts so there must be careful organization of work and selection of personnel. 11. 12. Equity: personnel must be treated with kindness and justice. Stability of tenure of personnel: rapid turnover of personnel should be

avoided because of the time required for the development of expertise. 13. Initiative: all employees should be encouraged to exercise initiative

within limits imposed by the requirements of authority and discipline. 14. Esprit de corps: efforts must be made to promote harmony within the

organization and prevent dissension and divisiveness. The management functions, that Fayol stated, consisted of planning, organizing, commanding, co-coordinating and controlling. Many practicing managers, even today, list these functions as the core of their activities. Fayol was also one of the first people to characterize a commercial organizations activities into its basic components. He suggested that organizations could be sub-divided into six main areas of activity:

1. Technical 2. Commercial 3. Financial 4. Security 5. Accounting 6. Management.

In defining the core principles governing how organizations worked and the contribution of management to that process, Fayol laid down a blueprint that has shaped organization thinking for almost a century.

Q5. Distinguish between internal and external forces of change.

Answer: Forces for change are of two types: Internal forces External forces. 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. 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 behaviour 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 behaviour of people in the organization. Therefore it is required to make adjustment in its working so that it matches with people.

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?
Answer: 1. Candidate Mr. Ravi Physical Characteristics : Muscular, thick skin, rectangular shaped. It is a Mesomorphic Body Type: hard, muscular body overly mature appearance rectangular shaped thick skin upright posture

Associated personality traits: adventurous desire for power and dominance

courageous indifference to what others think or want assertive, bold zest for physical activity competitive love of risk and chance

2. Candidate Mr.Gineesh Physical Characteristics: Thin, delicate build, large brain, tall. It is a Ectomorphic Body Type: thin flat chest delicate build young appearance tall lightly muscled stoop-shouldered large brain

Associated personality traits: self-conscious preference for privacy introverted inhibited socially anxious artistic mentally intense emotionally restrained

3. Candidate Mr.Ramgopal Physical Characteristics: Soft, round shaped, underdeveloped muscles.

It is a Endomorphic Body Type: soft body underdeveloped muscles round shaped over-developed digestive system love of food tolerant evenness of emotions love of comfort sociable good humoured relaxed need for affection

Associated personality traits:

Sheldon measured the proportions of hundreds of juvenile delinquent boys and concluded that they were generally mesomorphs Body types have been criticized for very weak empirical methodology and are not generally used in psychology. The use of somatotyping is used more often in alternative therapies and Eastern psychology and spirituality.