Birla Institute of Technology & Science, Pilani

Work Integrated Learning Programmes Division

Second Semester 2018 - 2019
EC-3 (Regular Answer key)

Course Number : MGTS ZC211

Course Title : PRINCIPLES OF MANAGEMENT
Type of Exam : Open Book
Weightage : 50 %
Duration : 3 hours
Date of Exam : 00/00/2019

Note:
1. Please read and follow all the instructions given on the cover page of the answer script.
Start each answer from a fresh page. All parts of a question should be answered consecutively.

1. (6 marks) The matrix structure is an organizational structure that assigns specialists from
different functional departments to work on one or more projects being led by project
managers. Each product is managed by an individual who staffs his or her product team
with people from each of the functional departments. The addition of this vertical
dimension to the traditional horizontal functional departments, in effect, "weaves
together" elements of functional and product departmentalization creating a matrix
arrangement. One unique aspect of this design is that it creates a dual chain of command,
which violates the classical organizing principle of unity of command. Employees in a
matrix organization have two managers: their functional area manager and their product
or project manager, who share authority. The project managers have authority over the
functional members who are part of their project team in areas related to the project's
goals. However, decisions such as promotions, salary recommendations, and annual
reviews typically remain the functional manager's responsibility. To work effectively,
project and functional managers have to communicate regularly, coordinate work
 demands on employees, and resolve conflicts together. Although the matrix structure is an
effective structural design choice for some organizations, many are using a more
"advanced" type of project structure, in which employees continuously work on projects.
Unlike the matrix structure, a project structure has no formal departments that employees
return to at the completion of a project. Instead, employees take their specific skills,
abilities, and experiences to other projects. In addition, all work in project structures is
performed by teams of employees who become part of a project team because they have
the appropriate work skills and abilities. Project structures tend to be fluid and flexible
organizational designs. There's no departmentalization or rigid organizational hierarchy to
slow down decision making or taking actions. In this type of structure, managers serve as
facilitators, mentors, and coaches. They "serve" the project teams by eliminating or
minimizing organizational obstacles and by ensuring that the teams have the resources
they need to effectively and efficiently complete their work. The advantages of matrix
and project structures are that their fluid and flexible design can respond to
environmental changes and allows for faster decision making. The disadvantages are
there is some complexity of assigning people to projects and there are task and
personality conflicts.

2. A – Impoverished; B – Country Club; C – Task; D – Middle-of-the-Road; E – Team

(5*1 = 5)

3. (5*1 = 5)
i. The process is termed as backward vertical integration which takes place when a firm
assumes a function previously provided by a supplier.

ii. Focus Strategy (Cost leadership + Specific regional market or buyer group )
Southwest airlines is low cost leader and flying in specific 3 cities- Dallas, Houston , San
Antonio)

iii. Cost Leadership (low cost throughout the year)

iv. Concentration Strategy (current product but new market in India and Malaysia)
 v. Stability Strategy: (to maintain the status quo, absence of significant change in what
organization is currently doing)

Q4) i) Maslows hierarchy of needs theory; ii)Herzergs two factor theory; iii)Equity theory
iv)Expectancy theory (4*1 = 4)

Q5) Ishita: Directive leader; Pracheen : Participative leader; Aarti: Achievement oriented leader;
Sanket : Supportive leader (4*1 = 4)

6 a) Filtering b) Information Overload c) Defensiveness d) Language (4*1 = 4)

7 (10*0.5 = 5)

Strength : B(Diversified portfolio),C( high market share) ,G(aggressive marketing),I (Huge

network)

Weakness: D(Focus only on High End Customers),H (Little presence outside INDIA) ,J (high
Transaction cost )

Opportunity: F (Dissatisfied Customers of Other Banks,)

Threat : A (Ever improving nationalized banks) , E (Advent of MNC banks; This can
increase the level of competition and prove a potential threat for the market share of ICICI
bank.)

8)Tamera – Coercive; Kayse – Legitimate; Claye – Reward; Juan – Expert; Franklin – Referent
(5*1 = 5)

9. (6 marks) Employees are hired to work, not to surf the Web. Recreational on-the-job Web
surfing is thought to cost billions of dollars in lost work productivity annually. Watching online
video clogs corporate computer networks, making the transmission of business-related data
slower. Employers don't want to risk being sued for creating a hostile work environment because
of offensive messages or an inappropriate image on a coworker's computer screen. Concerns
about racial or sexual harassment are one reason companies might want to monitor or keep back-
up copies of all e-mail. Managers want to ensure that company secrets are not being leaked.

10. (6 marks) Not all conflicts are bad. Some conflicts, functional conflicts, are constructive and
support the goals of the work group and improve its performance. Other conflicts, dysfunctional
conflicts, are destructive and prevent a group from achieving its goals. Hence, an ideal strategy
for a manager would be to eliminate dysfunctional conflicts and to promote functional conflicts.