Management process and organizational behaviour

MB0038/MBF-101
FALL SECSSION
ASSIGNMENT
LC-02009
NANDESHWAR SINGH
ROLL NO.1408001255
Q1. Define term `Strategy’. Explain the following

A) Corporate strategy

B) Business strategy

c) Functional strategy?

Ans. A) Corporate strategy- This strategy is generally used in large company which has a
several business and a corporate headquarters under control these companies. Each of these
businesses may be run by an independent company. The corporate headquarters will have grand
plans on how each business should operate. For example, it might say that Tata Motors should
design, develop, and manufacture an indigenous small car Nano or that TCS should expand
business to china. This large plan created by the corporate headquarters is called `corporate
strategy’.

B) Business strategy- All business, small or big have their business strategy to run the
organizational successfully. For example, Raj can make a grand plan of expanding his business
to another district or having branches. He can take a decision to be the provider of low cost
furniture or highly differentiated a supplier of all furniture needs, etc. furniture, household
furniture only, and modular furniture only. This is a business strategy.

C) Functional strategy- When you have a business strategy, then each of department will
need its own strategy. For example, the HR of Tata Motors will need a strategy quiet different
from the HR of Tata consultancy Services (TCS), so the operations, marketing, finance, HR, etc
this is called functional strategy.

Q2. Define the term `Management’? Explain the Behavioral Theory and
Scientific theory?
Ans. Management is a process of planning, organizing, staffing, directing, and controlling to
achieve the organizational objective efficiently with optimum utilization of resources.

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’’

Behavioural science theory- This theory introduced by Vilfredo patreto in 1896, and
researched on organisation and management relationship. Hugo Munsterberg applied psychology
to increase industrial production in 1912 and around the same time, but it was Elton Mayo and
F.J Roethlisberger who made an impact on the behavioral science theory through their
Hawthorne experiments in western Electric Company in 1933.This experiment proved that good
working relationship with the supervisor and colleagues and the idea of challenge in the job
accounted for higher productivity.

System Theory- This theory introduced by Chester Barnard who extended this into
management area through his writing ``Function of the executive’’ in 1938. In system theory, we
perceive that organisatons have a number of fairly independent systems such as purchase system,
operations system, marketing system, financial system etc. The workings of these are
independent, but it has to be integrated by the manager.

Q3. Give the definition and importance of planning in organization? Explain

the steps of planning?
Ans. planning is deciding in advance what to do, how to do, when to do, where to do, and by
whom to do, in other words we says that it is a time gap between where we have today and
where we want to reach tomorrow is known as planning.

IMPORTANCE OF PLANNING
• Planning helps in clarifying the objective of the organization.

• Planning provides a logical framework to organization which helps to create a rough idea
of the task.

• Planning will helps to measure deviation and review their performance.

• It helps in forecasting so this will reduce the uncertainties and risk which occurs in future.

• It plays a vital role in helping to avoid mistakes or recognize hidden opportunity.

• It helps to review the performance of employee with setting up standard targets.

STEPS OF PLANNING

• Being Aware of Opportunities

• Establishing Objective

• Developing Premises

• Determining Alternative courses

• Evaluating Alternative Courses

• Selecting a courses

• Formulating Plans

• Qualifying Plans by Budgeting.

• Being aware of opportunities- It means awareness about the customers need,

demand, and competition in market, our strength and weakness. For example, sambhavi
being aware of the customer need to have the outlets in other districts.

• Establishing Objective-It implies what we want and what we accomplish and

relation with market segment. At the highest level, this is done through vision and
mission building. This process take place at business level, project level, etc also.

• Developing premises- It means deciding business environment. External

environment created by political factors to include legislation legal framework, etc. for
 example, foreign companies cannot invest directly in multi-brand retail in India. The
external analysis is done through a process called PEST analysis.

• Determining alternative courses – After developing premises next step is

determining the various alternatives. This is done by combining the information about the
opportunities, threats, and own strength and weaknesses. This is done through another
framework called TOWS matrix.

• Evaluating alternative courses- There are different course of alternatives, so

manager will select the most beneficial alternative either on the basis cost or time to meet
their goals.

• Selecting a course- After evaluating the different course of alternative selecting the
most suitable alternative course to achieve the organizational objective.

• Formulating a course- It is also called derivative or supportive plans which support

alternatives action by buying equipment, space, planning the type of HR, etc.

• Qualifying plans by budgeting- It means before selecting the alternative

Identifying the cost involved in it, resources will be mobilized or not, what is capital
expenditure, what is operational expenditure, the working capital, etc.

Q4. What is controlling? Explain their pre-requisites of Effective control?

Ans. Controlling is comparison between actual performances with standard
performance and if there is any deviation come so manager will take some course of
action to come on the path of plan is called Controlling.

Prerequisites of Effective Control- The pre-requisites of effective control are as

following:

• Tailoring controls to plans and positions- Controlling is applied on a

group of activities. It follow that what control is good for a position may not be
relevant for another e.g., the vice-president of marketing and the vice-president
of operation cannot have the same controls though both may be based on a
financial control system.

• Tailoring controls to individual manger- Controlling process will change

according to individual manager`s capability also. If someone does not
 understand a control, he/she will not trust it or use it as a result of which it will
become dysfunctional.

• Designing `point to the exceptions at critical point’- Effective control

help the exception and at the critical point. For example, the critical point in
home delivery of a birthday cake is the same time and accuracy of writing the
name. The exception can be wrong name due to spelling variation and the time
of delivery order wrung address. Therefore, control should exist so that of
delivery order phone number and the spelling of the name are rechecked.

• Objectivity of controls- Once the controls are created, they must be accurate
objective and suits to standard targets. While this may be relatively easy in
machine related systems and financial related indicator, we have to be careful
when we have to relate it to the intangible areas.

• Flexibility- Controlling is the flexible and dynamic it includes the changed plans,
unforeseen circumstances, or outright failure. For example, Birla may use budget
control to say the inventory level but if the sales are significantly higher or lower,
there should be flexibility in the control.

• Fitting to the organizational culture- If rules and regulations of

organization so hard so it was difficult to employees to give their valuable
participation if less too much freedom so organizational objective cannot
achieve. Therefore, it must fit their nature and culture. It must bureaucratic
system.

• Economy of controls- Creating controls which are excessively expensive is

counter-productive. Controls must be worth their costs. For example, we cannot
have the same controls in an aircraft and a car.

• Ability to lead to corrective action-Controlling is comparison between

actual performance with standard performance and after this take corrective
action. Only then it closes the loop and leads to better performance. For
example, if the ROI of outlets is below the standards specified, there should be a
review be a review system, which detects the sections that have not contributed
their part and have exceeded it so that the performance can be corrective or
rewarded.
 Q.5 what are `Attitudes’? Explain the components and functions of
attitudes?
Ans. It also known as “frames of reference” It provides background against which
facts and events are viewed. It is 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 generalised
attitudes.

Components of attitudes-There are three components of an attitude are as

following:

• Cognition- It is the thinking process which involve in gaining knowledge and

comprehension, including thinking, remembering, judging and problem solving. It is
a component of an attitude reflects a person`s perceptions or beliefs.

• Affects- It refers to feeling of person that results from beliefs about a person,
object or situation. A

Person who believes to work hard but they may feel angry or frustrated when
he/she worked hard but they cannot promote “Affect” is the emotional component
of an attitude.

• Behaviour- It refers to individual behaviour that occurs as a result of his/her feeling

towards situation. An individual may complain, request a transfer, or be less productive
because they feel dissatisfied with work.

FUNCTION OF ATTITUDE- According to Katz, attitude serves four functions from the
viewpoint of orgainisational behaviour. These are as follows:

• Adjusting function- Attitude will help the employee to adjust themselves according
to their work environment. Well-treated employee tend to develop positive attitude
towards their job, management and the organisation in general, while ill treated
orgainisational members develop a negative attitude.

• Ego-defensive function- It also help people to retrieve their goodwill and dignity.
When a young faculty members who is full of new ideas and enthusiasm, joins the
organization, the older members might feel somewhat threated by him/her. But they
tend to disapprove his creative ideas as ‘crazy’ and ‘impractical’ altogether.
• Value-expressive function- Attitude provide individual with a basis for expressing
their values. For example, a manger who values hard and sincere work will be more
vocal against an employee who is having a very casual approach towards work.

• Knowledge function- Attitude provide a framework of reference that people will

easily understood and perceive the world around them. A person who has a strong
negative feeling towards their management, whatever the management does, even
employee welfare program, seethe actually against it.
 Q.6. Define Leadership. Write a brief note on Contingency Theories of
leadership?
Ans. According to Warren Bennis “I used to think running an orgainisation was
equivalent to conducting a symphony orchestra. But I don`t think that`s quite it; it`s
more like jazz. There is more important’’

Contingency Theories of Leadership- This theory depicts that hoe the leader
adopt a style in relation to the group and the situation. Effective leadership is about
finding a good and suitable between the behaviour, context and need.

Fielder`s Contingency Model (FCM) of leadership- FCM depict that the leader`s
effectiveness is based on ‘situational contingency’ which results interaction of leadership style
and situational favorableness. It is not highly popular modal.Fiedler suggest that the leadership
style of the leader can be measured by an instrument called least preferred coworker. He
identified three situational components’ that determine the favorableness of situation control
is:

• How defined and structured the work is?

• How much position authority the leader has?

• The relationship between the leader and the followers?

It might be criticism that it is complex and the LPG measure are inaccurate and
often misses its predictive validity, etc, this model gives us a clear idea of the fit
between the leader and the situation.

Path goal theory- This theory draws its inspiration of motivation. If there is a
leader and a follower, the follower expects something and the leader is able to
fulfill it by defining it as a goal, means to achieve the goal, removing obstacles to
achieving it, etc. The expectation of the followers whether in term of material or
other kind of benefits has to be met by the leader and the follower expects it
too. Here the leader must correctly identifying the reward that is expected and
the promise him or her. Leadership effectiveness is most promised reward and
the creation of a smooth way to achieve that reward.

Situational leadership- This theory propound by Paul Hersey and Kenneth

Blanchard. They describe four type of leadership styles are: 1.telling (directing)
2.spelling (consulting), 3participating and 4. Delegating this theory tends to
emerge the ideas of style with ideas of contingency of followers .situation and
task are inherited in this since the term maturity relates to the ability to handle
the task in a situation. The authors and several researchers have developed a
number of instruments to measure this, and this is a highly popular theory.

Reddin`s 3D theory of managerial effectiveness- This theory propound

by Hersey Blanchard theory of situational leadership and Blake and Mouton
theory of Managerial grid. He identifies four effective styles that are matched to
the ability to evaluate the situation and style flexibility or the ability to change
the style according to the situation. Four styles he describes are as following:

• Bureaucrat- If they does not delegated and allowing people to do their

job there is an emergency such as shortage of material, lookouts, strikes,
etc, it becomes like one, one leader and actually become deserters. This
will help to identifies how bureaucratic style which is very functionally.

• Developer- It is highly people oriented and participative. When

followers are not so capable or the situation demands structured steps as
in the case when a product is launched or a project deadline missed, then
it becomes useless.

• Executive- It is task oriented and people oriented. When the followers

may not understand the importance of achieving targets or the situation
may demand will flawless execution even at the cost of considerable
discomfort to the people.

• Benevolent autocrat- It is highly task oriented and use as a directive

style. It is useful with followers of average caliber and abnormal situation.
It becomes dysfunctional when used with high caliber follower.