Professional Documents
Culture Documents
MOD 2 Ans Bank
MOD 2 Ans Bank
MODULE II
ANS 2:
The main focus was on the fields of motion study and time study, combined with an interest
on the psychology of efficiency and work. The Gilbreth theory held that there was a one best
way to do any task. Efficiency, according to the Gilbreth business management theory, could
therefore be improved by finding this one best way and replicating it throughout the
manufacturing process. The Gilbreths used new technologies such as film to break motions
down into incremental parts, which they called therbligs. By reducing the number of
therbligs for any task, one could increase the efficiency of the worker.
The management theory of Frank and Lillian Gilbreth can be summed up by the following:
2. Focus on the incremental study of motions and time to understand an entire task.
3. The goal of increased efficiency is both increased profit and greater worker satisfaction.
ANS 3:
(b) The managers must study the inter-personal relations among the people at work.
(c) Larger production and higher motivation can be achieved only through good human
relation.
(d) The study of management must draw the concepts and principles of various behavioural
sciences like Psychology and Sociology.
2. Non-Economic Awards:
The earlier assumption was that workers will work more if they are offered more monetary
incentives. Taylor was the main proponent of this approach. Elton Mayo said that the
techniques of economic incentives were not only inadequate but also unrealistic.
He was able to show that humane and respectful treatment, sense of participation and
belonging, recognition, morale, human pride and social interaction are sometimes more
important than pure monetary rewards.
3. Social Man:
Mayo developed a concept of social man. He said that man is basically motivated by social
needs and obtains his sense of identity through relationships with others. He is more responsive
to the social forces of the informal group rather than managerial incentives and controls. He
also related productivity to a social phenomenon.
Hawthornes experiments were criticized for lack of scientific and vigorous research. The
experiments were too narrow to warrant generalizations. Despite these observations Mayos
work was a turning point in the development of management thought.
ANS 4:
The McKinsey 7-S model can be applied to elements of a team or a project as well. The
alignment issues apply, regardless of how you decide to define the scope of the areas you study.
The McKinsey 7-S model involves seven interdependent factors which are categorized as either
"hard" or "soft" elements:
Shared Values
Strategy Skills
Structure Style
Systems Staff
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard elements
if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the elements
and indicates how a change in one affects all the others.
Let's look at each of the elements specifically:
Strategy: the plan devised to maintain and build competitive advantage over the
competition.
Structure: the way the organization is structured and who reports to whom.
Systems: the daily activities and procedures that staff members engage in to get the job
done.
Shared Values: called "superordinate goals" when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the general
work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for the company.
ANS 5:
Systems approach is based on the generalization that everything is inter-related and inter-
dependent. A system is composed of related and dependent element which when in interaction,
forms a unitary whole. A system is simply an assemblage or combination of things or parts
forming a complex whole.
One its most important characteristic is that it is composed of hierarchy of sub-systems. That
is the parts forming the major system and so on. For example, the world can be considered-to
be a system in which various national economies are sub-systems.
In turn, each national economy is composed of its various industries, each industry is composed
of firms and of course a firm can be considered a system composed of sub-systems sudi as
production, marketing, finance, accounting and so on.
(iii) An organisational system has a boundary that determines which parts are internal and
which are external.
(iv) A system does not exist in a vacuum. It receives information, material and energy from
other systems as inputs. These inputs undergo a transformation process within a system and
leave the system as output to other systems.
In the systems approach, attention is paid towards the overall effectiveness of the system rather
than the effectiveness of the sub-systems. The interdependence of the sub-systems is taken into
account. The idea of systems can be applied at an organisational level. In Appling system
concepts, organisations are taken into account and not only the objectives and performances of
different departments (sub-systems).
The systems approach is considered both general and specialised systems. The general systems
approach to management is mainly concerned with formal organisations and the concepts are
relating to technique of sociology, psychology and philosophy. The specific management
system includes the analysis of organisational structure, information, planning and control
mechanism and job design, etc.
As discussed earlier, system approach has immense possibilities, A system view point may
provide the impetus to unify management theory. By definitions, it could treat the various
approaches such as the process of quantitative and behavioural ones as sub-systems in an
overall theory of management. Thus, the systems approach may succeed where the process
approach has failed to lead management out of the theory of jungle.
Systems theory is useful to management because it aims at achieving the objectives and it views
organisation as an open system. Chester Barnard was the first person to utilize the systems
approach in the field of management.
ANS 6:
Management Ethics is related to social responsiveness of a firm. It is the discipline dealing
with what is good and bad, or right and wrong, or with moral duty and obligation. It is a
standard of behaviour that guides individual managers in their works.
It is the set of moral principles that governs the actions of an individual or a group.
Ethical Activities:
1. The foremost goal of managers is to make their organizations effective.
2. Profit maximisation and stakeholders interests were not the central goals of the managers
studied.
4. Integrity was the characteristic most highly rated by managers at all levels.
6. Spouses are important in helping their mates grapple with ethical dilemmas.
2. Moral management:
According to moral management ethics, managers aim to maximise profits within the confines
of ethical values and principles. They conform to professional and legal standards of conduct.
The guiding principle in moral management ethics is Is this action, decision, or behaviour fair
to us and all parties involved?
3. Amoral management:
This type of management ethics lies between moral and immoral management ethics. Managers
respond to personal and legal ethics only if they are required to do so; otherwise there is lack
of ethical perception and awareness.
(b) Unintentional:
Managers do not deliberately avoid ethical practices but unintentionally they make decisions
whose moral implications are not taken into consideration.
3. Business houses operate in the social environment and use resources provided by the society.
They are, therefore, morally and socially committed to look after the interests of society by
adopting ethical business practices.
4. Ethical business activities improve companys image and give it edge over competitors to
promote sales and profits.
5. Legal framework of a country also enforces ethical practices. Under Consumer Protection
Act, for example, consumers can complain against unethical business practices. Labour laws
protect the interests of workers against unethical practices. Legal framework of the country,
therefore, promotes ethical business behaviour. Business houses want to avoid Government
intervention and, therefore, follow ethical practices.
2. Group membership:
Informal groups lead to group code of ethics. Group members are strongly bonded by their
loyalty and respect for each other and unethical behaviour of any member of the group is
generally ignored by the rest.
3. Ambiguous priorities:
When policies are unclear and ambiguous, employees behaviour cannot be guided in a unified
direction. It is difficult to understand what is ethical and what is unethical.
Solutions to Barriers:
1. Organisational objectives and policies should be clear so that every member works towards
these goals ethically.
2. The behaviour of top managers is followed by others in the organisation. Ethical actions of
top managers promote ethical behaviour throughout the organisation.
3. Imposing penalties and threats for not conforming to ethical behaviour can reduce unethical
activities in the organisation. Formal procedures of lodging complaints help subordinates report
unethical behaviour of superiors to the concerned committees.
4. Educational institutions also offer courses and training in business ethics to develop
conscientious managers who observe ethical behaviour.
ANS 7:
A contingency approach to management is based on the theory that management effectiveness
is contingent, or dependent, upon the interplay between the application of management
behaviours and specific situations. In other words, the way you manage should change
depending on the circumstances. One size does not fit all.
Theory
The contingency approach to management finds its foundation in the contingency theory of
leadership effectiveness developed by management psychologist Fred Fielder. The theory
states that leadership effectiveness, as it relates to group effectiveness, is a component of two
factors: task motivation, or relation motivation, and circumstances. You measure task
motivation, or relation motivation, by the least preferred co-worker (LPC) scale.
The LPC scale asks the manager to think of the person they least like working with and then
rate that person on a set of questions, each involving an 8-point scale. For example, a score of
one would be uncooperative, and a score of eight would be cooperative. Fielder believed that
people with a higher LPC score try to maintain harmony in their work relationships, while
people with a lower LPC score are motivated to focus on task accomplishment.
The theory states that task or relations motivations are contingent upon whether the manager
is able to both control and affect the group's situational favourability, or outcome. According
to the theory, you can assess situational favourability by three factors:
William Ouchi developed Theory Z after making a comparative study of Japanese and
American management practices. Theory Z is an integrated model of motivation. Theory Z
suggests that large complex organisations are human systems and their effectiveness depends
on the quality of humanism used. A type Z organisation has three major featurestrust,
subtlety and intimacy.
Mutual trust between members of an organisation reduces conflict and leads to team work.
Subtlety requires sensitivity towards others and yields higher productivity. Intimacy implies
concern, support and disciplined unselfishness.
3. Employee Involvement:
Theory Z suggests that involvement of employees in related matters improves their
commitment and performance. Involvement implies meaningful participation of employees in
the decision-making process, particularly in matters directly affecting them. Such participation
generates a sense of responsibility and increases enthusiasm in the implementation of decisions,
Top managers serve as facilitators rather than decision-makers.
4. Integrated Organisation:
Under Theory Z, focus is on sharing of information and resources rather than on chart,
divisions or any formal structure. An integrated organisation puts emphasis on job rotation
which improves understanding about interdependence of tasks. Such understanding leads to
group spirit.
5. Coordination:
The leaders role should be to coordinate the efforts of human beings. In order to develop
common culture and class feeling in the organisation, the leader must use the processes of
communication, debate and analysis.
Thus, Theory Z is a hybrid system which incorporates the strengths of American management
(individual freedom, risk taking, quick decision-making, etc.) and Japanese management (job
security, group decision-making, social cohesion, holistic concern for employees, etc.)
systems.
Japanese companies operating in the United State have successfully used Theory Z. After
collaboration between Japanese and Indian companies, some experts have suggested
application of this theory in India, in Maruti Udyog, which has collaboration with Suzuki
motors of Japan an attempt has been made to apply Theory Z.
The workplace has been designed on the Japanese pattern, which involves open offices. The
same uniform has been introduced for all employees irrespective of their designation.
Similarly, there is a common canteen for all. These practices are expected to avoid status
differentials and class feeling among employees and thereby facilitate teamwork in the
company.
Limitations of Theory Z:
Theory Z suffers from the following limitations:
(i) Provision of lifetime employment to employees to develop a strong bond between
organisation and employees may fail to motivate employees with higher level needs. It merely
provides job security and may fail to develop loyalty among employees.
n employee may leave the organisation when better employments are offered to him by some
other enterprise. Moreover, complete security of job may create lethargy among many
employees. Employers also do not like to retain inefficient employees permanently.
(ii) Participation of employees in the decision-making process is very difficult. Managers may
dislike participation as it may hurt their ego and freedom. Employees may be reluctant to
participate due to fear of criticism and lack of motivation. Even if they sit along with
management they may contribute little unless they understand the issues and take initiative.
Involvement of all employees may also slow down the decision-making process.
(iii) Theory Z suggests organisation without any structure. But without structure there may be
chaos in the organisation as nobody will know who is responsible to whom.
(iv) It may not be possible to develop a common culture in the organisation because people
differ in their attitudes, habits, languages, religions, customs, etc.
(v) Theory Z is based on Japanese management practices. These practices have been evolved
from Japans unique culture. Therefore, the theory may not be applicable in different cultures.
Thus, Theory Z does not provide complete solution to motivational problems of all
organisations operating under different types of environment. However, it is not merely a
theory of motivation but a philosophy of managing.
ANS 10:
Functions of a Manager:
1. Planning
It is the basic function of management. It deals with chalking out a future course of action &
deciding in advance the most appropriate course of actions for achievement of pre-determined
goals. According to KOONTZ, Planning is deciding in advance what to do, when to do &
how to do. It bridges the gap from where we are & where we want to be. A plan is a future
course of actions. It is an exercise in problem solving & decision making. Planning is
determination of courses of action to achieve desired goals. Thus, planning is a systematic
thinking about ways & means for accomplishment of predetermined goals. Planning is
necessary to ensure proper utilization of human & nonhuman resources. It is all pervasive, it is
an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages
etc.
2. Organizing
It is the process of bringing together physical, financial and human resources and developing
productive relationship amongst them for achievement of organizational goals. According to
Henry Fayol, To organize a business is to provide it with everything useful or its functioning
i.e. raw material, tools, capital and personnels. To organize a business involves determining
& providing human and non-human resources to the organizational structure. Organizing as a
process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has
assumed greater importance in the recent years due to advancement of technology, increase in
size of business, complexity of human behaviour etc. The main purpose of staffing is to put
right man on right job i.e. square pegs in square holes and round pegs in round holes. According
to Kootz & ODonell, Managerial function of staffing involves manning the organization
structure through proper and effective selection, appraisal & development of personnel to fill
the roles designed in the structure.
Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the person
And giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
4. Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and staffing
are the mere preparations for doing the work. Direction is that inert-personnel aspect of
management which deals directly with influencing, guiding, supervising, motivating sub-
ordinate for the achievement of organizational goals. Direction has following elements:
Supervision
Motivation
Leadership
Communication
(i) Supervision- implies overseeing the work of subordinates by their superiors. It is the act of
watching & directing work & workers.
(ii) Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to
work. Positive, negative, monetary, non-monetary incentives may be used for this purpose.
(iii) Leadership- may be defined as a process by which manager guides and influences the
work of subordinates in desired direction.
(iv) Communications- is the process of passing information, experience, opinion etc from one
person to another. It is a bridge of understanding.
5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if
any to ensure achievement of organizational goals. The purpose of controlling is to ensure that
everything occurs in conformities with the standards. An efficient system of control helps to
predict deviations before they actually occur.
According to Theo Haimann, Controlling is the process of checking whether or not proper
progress is being made towards the objectives and goals and acting if necessary, to correct any
deviation. According to Koontz & ODonell Controlling is the measurement & correction
of performance activities of subordinates in order to make sure that the enterprise objectives
and plans desired to obtain them as being accomplished. Therefore controlling has following
steps:
(i) Establishment of standard performance.
(ii) Measurement of actual performance.
(iii) Comparison of actual performance with the standards and finding out deviation if any.
(iv) Corrective action.
ANS 11:
In 1960, Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of
human behaviour at work, or in other words, two different views of individuals (employees):
one of which is negative, called as Theory X and the other is positive, so called as Theory Y.
According to McGregor, the perception of managers on the nature of individuals is based on
various assumptions.
Assumptions of Theory X
An average employee intrinsically does not like work and tries to escape it whenever
possible.
Since the employee does not want to work, he must be persuaded, compelled, or warned
with punishment so as to achieve organizational goals. A close supervision is required
on part of managers. The managers adopt a more dictatorial style.
Many employees rank job security on top, and they have little or no aspiration/
ambition.
Employees generally dislike responsibilities.
Employees resist change.
An average employee needs formal direction.
Assumptions of Theory Y
Employees can perceive their job as relaxing and normal. They exercise their physical
and mental efforts in an inherent manner in their jobs.
Employees may not require only threat, external control and coercion to work, but they
can use self-direction and self-control if they are dedicated and sincere to achieve the
organizational objectives.
If the job is rewarding and satisfying, then it will result in employees loyalty and
commitment to organization.
An average employee can learn to admit and recognize the responsibility. In fact, he
can even learn to obtain responsibility.
The employees have skills and capabilities. Their logical capabilities should be fully
utilized. In other words, the creativity, resourcefulness and innovative potentiality of
the employees can be utilized to solve organizational problems.
Thus, we can say that Theory X presents a pessimistic view of employees nature and behaviour
at work, while Theory Y presents an optimistic view of the employees nature and behaviour
at work. If correlate it with Maslows theory, we can say that Theory X is based on the
assumption that the employees emphasize on the physiological needs and the safety needs;
while Theory X is based on the assumption that the social needs, esteem needs and the self-
actualization needs dominate the employees.
McGregor views Theory Y to be more valid and reasonable than Theory X. Thus, he
encouraged cordial team relations, responsible and stimulating jobs, and participation of all in
decision-making process.
Quite a few organizations use Theory X today. Theory X encourages use of tight control and
supervision. It implies that employees are reluctant to organizational changes. Thus, it does
not encourage innovation.
Many organizations are using Theory Y techniques. Theory Y implies that the managers
should create and encourage a work environment which provides opportunities to employees
to take initiative and self-direction. Employees should be given opportunities to contribute
to organizational well-being. Theory Y encourages decentralization of authority, teamwork
and participative decision making in an organization. Theory Y searches and discovers the
ways in which an employee can make significant contributions in an organization. It
harmonizes and matches employees needs and aspirations with organizational needs and
aspirations.
ANS 12:
Approaches to management:-
I) Traditional Approaches
1. Classical/Management process/Empirical Approach
2. Neo-Classical/ Behavioural Approach
II) Modern Approaches
1. Decision Theory/ Mathematical/Management Science Approach
2. System Approach.
3. Situational/ Contingency Approach
2. Neo-Classical or Behavioural Approach: While the classical approach focused on the jobs,
the behavioural approach stressed the individuals performing these jobs. Prof. Elton Mayo
is considered to be the founder of the behavioural school of thought.
The behavioural approach focuses on human behaviour in organization and seeks to promote
verifiable factors that help in understanding the human behaviour in the organizations. The
basic proposition of the behavioural approach is as follows:
a) An organization is a socio-technical system.
b) A wide range of factors influence interpersonal and group behaviour of people in the
organization.
c) There should relationship between organizational goals and needs.
d) Several differences in the attitudes, perceptions and values of employees exist and
influence their behaviour and performance.
iii) Faulty assumption in the theory: The human relations approach is based on a wrong
assumption that satisfied workers are more productive.
iv) Limited importance to economic incentives: The human relations approach has given
limited importance to economic incentives in motivating employees.
MODERN APPROACHES
3. Systems Approach in Management
A system is an organised entity i.e. a company or a business enterprise made up of parts
connected and directed to some purpose. Each system has an input, a process and an output.
It acts as a self-sufficient unit. Every system is interlinked with its subsystems.
ii) Interdependent parts: A system is a set of interdependent parts which together form a
unitary whole that perform some function. An organisation is also a system which consists
of four interdependent parts viz., task, structure, people and technology.
iii) Consideration of whole system: No part of the system can be precisely analysed and
under-stood apart from the whole system. Conversely, the whole system cannot be exactly
evaluated without understanding all its parts. Each part is related to every other part. For
example, in order to understand the operations of the finance or production or marketing
departments, he must understand the company as a whole. It is because activity of any one
part of the company affects the activity of every other part.
iv) Information, energy and material: Generally, there are three basic inputs that enter the
processor of the system viz., information (technology), energy (motive power) and materials
to be transformed into goods.
v) Defined boundaries: Each system including an organisation has its own boundaries which
separate it from other system in the environment. The system is inside the boundary, the
environment is outside the boundary'.
vi) Synergy: Output of a system is always more than the combined output of its parts. This
is called 'synergy. In organizational terms, synergy means when separate departments
within an organisation cooperate and interact, they become more productive than if they had
acted in isolation e.g., it is certainly more efficient for each department to deal with one
secretarial department than for each department to have a separate secretarial department of
its own.
vii) Feedback mechanism: A system can adopt and adjust itself to the changing environment
through the feedback mechanism. As operations of the system proceed information in
feedback to the appropriate people. This helps to assess the work and if need be, to get it
corrected.
viii) Multidisciplinary approach: Systems approach freely draws concepts and techniques
from many fields of study such as psychology, sociology, ecology, economics, mathematics,
statistics, operations research, systems analysis etc.
Limitations of Systems Approach
i) The systems approach is criticized on the ground that it is too abstract and vague. It is
difficult to apply it to practical problems directly and easily.
ii) The systems theory/approach fails to provide specific tools and techniques for the
practicing executives/managers.
The systems approach does not recognize differences in systems. It fails to clearly identify
the nature of interactions and interdependencies between an Organization and its external
environment it also fails to offer a unified body of knowledge.
The contingency/situational approach is the second approach (the first being the systems
approach) which attempts to integrate the various schools of management thought in an
orderly manner. The basic theme of contingency approach is that organisations have to deal
with different situations in different ways. There is no single best way of managing
applicable to all situations.
ANS 13: