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SELF GYAN

MS 01 IGNOU
MANAGEMENT FUNCTIONS AND BEHAVIOUR
TABLE OF
CONTENTS
01 LONG IMP QUESTIONS
02 5 EXTRA LONG QUESTIONS
03 VERY IMP SHORT NOTES
04 10 EXTRA SHORT NOTES
Copyright ©
All rights reserved. No part of this
publication may be reproduced, distributed,
or transmitted in any form or by any means,
including photocopying, recording, or other
electronic or mechanical methods, without
the prior written permission of the copy
right holder,

ये book के वल ignou एग्जाम की तैयारी कराने के


लिए जिससे काम से काम समय में जल्दी आप
तैयारी कर सके और अच्छे मार्क्स ला सकते इसमें
सबसे पहले सबसे इम्पोर्टेन्ट question उसके बाद
काम इम्पोर्टेन्ट question को वरीयता से लिया गया
है आपको बुक को सुरु से अच्छे से पढ़ना है। self
gyan

01
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Q 1 Describe different responsibilities of managers with examples? (Vvvv imp questions)

Ans A manager have following responsibilities

1 RESPONSIBILITY TOWARDS CUSTOMERS

also from society-to

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2-RESPONSIBILITY TOWARDS SHAREHOLDERS

3- RESPONSIBILITY TOWARDS EMPLOYEES

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4-RESPONSIBILITY TOWARDS SUPPLIERS

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5-RESPONSIBILITY TOWARDS DISTRIBUTORS AND RETAILERS

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6-RESPONSIBILITY TOWARDS INDUSTRY AND COMPETITION

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7-RESPONSIBILITY TOWARDS UNION

8-RESPONSIBILITY TOWARDS GOVERNMENT

9-RESPONSIBILITY TOWARDS SOCIETY

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Q2 Describe the various task of managers ? (vvv imp)

Ans Following are the various task of a manager.

1-PROVIDING PURPOSEFUL DIRECTION TO THE FIRM

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2 MANAGING SURVIVAL AND GROWTH

3- MAINTAINING FIRM'S EFFICIENCY IN TERMS OF PROFIT GENERATION

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4- MEETING THE CHALLENGE OF INCREASING COMPETITION

5- MANAGING FOR INNOVATION

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6- BUILDING HUMAN ORGANISATION

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7- RETAINING TALENT AND INCULCATING SENSE OF LOYALTY

8-SUSTAINING LEADERSHIP EFFECTIVENESS

9- MAINTAINING BALANCE BETWEEN CREATIVITY AND CONFORMITY

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10- POSTPONING MANAGERIAL OBSOLESCENCE

11- MEETING THE CHALLENGE OF CHANGE

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12- COPING WITH GROWING TECHNOLOGICAL SOPHISTICATION

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13- COPING WITH GROWING PUBLIC CRI TICIS AND POLITICAL OPPOSITION-BOTH OBJECTIVE AND
IRRATIONAL

14- COPING WITH INCREASING LEVELS OF ASPIRATION

15- MAINTAINING RELATIONS WITH VARIOUS SOCIETY SEGMENTS

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Q3-What means by mission objective strategy and policies in respect of organization?

Ans – Following are the main key factor in each point

1-MISSION

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2-OBJECTIVES

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3-STRATEGY

4-POLICIES

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Q4- Different dimension and culture of organizations culture? ( Vvvv important)

Ans-

ORGANIZATION CULTURE -Organizational culture is the collection of values,


expectations, and practices that guide and inform the actions of all team
members. Think of it as the collection of traits that make your company
what it is. A great culture exemplifies positive traits that lead to improved
performance, while a dysfunctional company culture brings out qualities
that can hinder even the most successful organizations.
PERCEIVED CHARACTERISTICS OF CULTURE AND CLIMATE

DIMENSIONS OF OC

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DETERMINANTS OF OC

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Q5 Various reason for An organization to change ,how handle resistance to change ?

Ans ANTECEDENTS OF ORGANISATIONAL CHANGE-

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RESISTANCE TO CHANGE

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Q6- Importance of communication, barrier to effective communication ? (v v v important short


and long also)

Ans - COMMUNICATION: MEANING AND PURPOSE

IMPORTANCE OF COMMUNICATION

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BARRIERS TO EFFECTIVE COMMUNICATION

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Q7- Importance of delegation, requirement of effective delegation? (Vvv important)

Ans – Importance of delegation - Delegation of authority is a process in which the authority and
powers are divided and shared amongst the subordinates. When the work of a manager gets beyond
his capacity, there should be some system of sharing the work. This is how delegation of authority
becomes an important tool in organization function. Through delegation, a manager, in fact, is
multiplying himself by dividing/multiplying his work with the subordinates. The importance of
delegation can be justified by -

1. Through delegation, a manager is able to divide the work and allocate it to the subordinates.
This helps in reducing his work load so that he can work on important areas such as -
planning, business analysis etc.
2. With the reduction of load on superior, he can concentrate his energy on important and critical
issues of concern. This way he is able to bring effectiveness in his work as well in the work
unit. This effectivity helps a manager to prove his ability and skills in the best manner.
3. Delegation of authority is the ground on which the superior-subordinate relationship stands.
An organization functions as the authority flows from top level to bottom. This in fact shows
that through delegation, the superior-subordinate relationship become meaningful. The flow of
authority is from top to bottom which is a way of achieving results.
4. Delegation of authority in a way gives enough room and space to the subordinates to flourish
their abilities and skill. Through delegating powers, the subordinates get a feeling of
importance. They get motivated to work and this motivation provides appropriate results to a
concern. Job satisfaction is an important criterion to bring stability and soundness in the
relationship between superior and subordinates. Delegation also helps in breaking the
monotony of the subordinates so that they can be more creative and efficient.

Delegation of authority is not only helpful to the subordinates but it also helps the managers to
develop their talents and skills. Since the manager get enough time through delegation to
concentrate on important issues, their decision-making gets strong and in a way they can
flourish the talents which are required in a manager. Through granting powers and getting the
work done, helps the manager to attain communication skills, supervision and guidance,
effective motivation and the leadership traits are flourished. Therefore it is only through
delegation, a manager can be tested on his traits.

5. Delegation of authority is help to both superior and subordinates. This, in a way, gives stability
to a concern’s working. With effective results, a concern can think of creating more
departments and divisions flow working. This will require creation of more managers which
can be fulfilled by shifting the experienced, skilled managers to these positions. This helps in
both virtual as well as horizontal growth which is very important for a concern’s stability.

DELEGATION OF AUTHORITY

PREREQUISITES FOR EFFECTIVE DELEGATION

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Q8 Need of MBO in organization ,process involve in it, benefits of having it ? (vvvv


important)

Ans - THE NEED FOR MBO

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THE MBO PROCESS

There are three steps involved in the MBO process. These are setting objectives in each key result
area, action planning, and performance review.

Setting Objectives- Key result areas are usually more durable than objectives. While KRAs delineate
the' broad areas within which the organisation must focus its. attention, the objectives represent the
specific results expected to be' achieved within these KRAs.

Thus the first step is to identify the KRAs and pin responsibility for results with specific managerial
positions. Making people responsible for KRAs is a very critical step for translating MBO theory into
practice. KRAs and the persons responsible for them must be identified at the level of the entire
organisation as well as each functional area. Having identified KRAs, the next step is to set objectives
within them. At the organisational level, these will be the corporate objectives. Corporate objectives
define the purpose and mission of the organisation and can be described by seeking to answer the
question `what is our business'. Following out of the corporate objectives are the long and short-
term strategic objectives. Five to ten years is the usual time horizon for long range plans while
anything between three to five years describes the short-range. Strategic objectives spell out those
objectives related to choice of product, market and technology. Derived from these are the unit level
objectives in the case where an organisation consists of several different business units

Action Planning

Planning enables the objectives to be turned into reality. If objectives describe the `what', plans
describe the `how' or the way in which the objectives are to be achieved. Managers are paid to
achieve certain objectives. The objectives can be achieved only if the manager converts them into
specific action plans spelling out the various steps or activities to be performed and the specific time
within which these must be performed.

There are four broad steps involved in every action plan:

• Choosing strategies which are appropriate to the objectives

• Assigning responsibility for achieving the objectives

• Allocating resources for achieving the objectives

• Scheduling specific activities to achieve maximum utilisation of resources.

Activities form the basis of every plan. Activity refers to the thing or series of acts which have to be
done in order to achieve the objective. Further, these activities have to be arranged sequentially in
the most logical manner and a time frame has to be specified for the completion of each activity.
This is known as scheduling. It is only when this has been done that the plans get converted into
`action' plans.

There are many techniques which are extremely useful in planning. Some of the more common ones
are Activity Networks, Decision Trees, Milestone Charts, Programme Evaluation and Review

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Technique (PERT), and Critical Path Method (CPM). Depending on the specifics of your plan you can
use the appropriate technique to make them more useful.

In MB\O, objectives are set for the organisation or the unit as well as for specific individuals.
Therefore two kinds of plans are needed: plans for the team and individuals' plans. The reference
point for team or group plan may be the sales team, or group of R & D engineers working on new
product development or even the entire regional office striving as a team to achieve the objective of
a specified sales figure. Wherever objectives are specified for a group of people working together
towards a common goal, a team plan is required. Within the team individuals are assigned specific
objectives for achieving and these individuals need individual or personal plans.

Performance Review- Regular performance review is one of the main features of MHO. In the
absence of a review system the MBO system cannot function. In the MBO process, the focus of the
performance review is on.

BENEFITS OF MBO

The benefits accruing from MBO can be discussed in terms of the specific benefits to the
subordinate, the superior and the organisation:

1-Benefits to subordinates include greater role clarity, measurement of performance and increased
job satisfaction. W hen specific objectives have been agreed upon, the subordinate knows exactly
what he has to achieve and can plan his various activities towards this end. Role and goal clarity
ensure that there is no wastage of scarce organisational resources, on the one hand and single
minded dedication to achievement of objectives on the other."

MBO implies regular feedback and measurement of performance against objectives. This serves as a
great motivating factor for people to put in their best effort to achieve the objectives. It also helps to
weed out the non-performer and identify the real contributors. Clear, specific objectives and

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unbiased feedback about performance contribute to increased job satisfaction as compared to a


situation where a person does not know what is expected of him and how, if at all, his performance
will be judged. Job satisfaction emanates from the feelings of having done a job well to the best of
your capability as well as public recognition and approval for it. The former is possible only when
there are specific objectives while the latter can occur only if there is a system of review and reward.
A worker or manager who derives satisfaction from his job will work harder in order to improve his
performance while a dissatisfied, discontented manager will make a negative contribution. Thus
MBO can serve to bring about a change and put people on the self-propelling cycle of role clarity,
increased job satisfaction and increased productivity.

Some limitations:

In practical implementation you could sometimes encounter one or more of the following limitations
of MBO.

Problems in joint objective setting among unequals. MBO implies a process of point or consultative
objective setting between the superior and the subordinate. But this very relationship, based upon
status, may prove to be a hindrance in free, frank and open communication between the two, and
stall the process of setting goals in an objective manner;

Problems of MBO being effective at the lowest level. Theoretically, MBO is supposed to percolate
throughout the organisation right down to the lowest level since the manager as well as the worker

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at each level have set their own agreed upon objectives. However, in reality, the workers or
managers at the lower levels often do not have the full freedom to set their own objectives. This is
because MBO operates from top to down, starting with the corporate objectives. Thus, the process
of objective setting implies that the objectives at the lower level have already been locked in and
managers down the line have to match their own objectives with those of the level above them only.
If the process of objective setting is reversed to overcome this limitation, and objectives are first set
at the lowest level, it would mean that the entire organisation is being guided by people who have
less experience, less education, less knowledge and awareness; and it is Difficult to implement in a
situation of change. MBO assumes a stable environment in which the objectives once set will hold
good till they are achieved. In reality, however, many unforeseen changes may occur which may
render the objective impossible to achieve, or irrelevant, or invalid. In a situation where sudden
changes occur frequently MBO is difficult to implement

Q9- Formal and informal organization structure and importance of decentralization? (vvvv
important in short also )

Ans- FORMAL AND INFORMAL ORGANISATIONS

If you and your colleagues decide to meet every Saturday evening for one hour and form a
recreation club to play chess and carrom, you are meeting in an informal organisation. However,
when the same group of your colleagues meets to review tilt last quarter's performance and plan for
the next three months it is in the context of a formal organisation. Thus, while the informal
organisation is spontaneous, the formal organisation is the result of a deliberate and planned effort
to pattern activities and relationships in a specific manner to facilitate achieving the specified
objectives. A formal organisation is the result of explicit decision-making, deciding how people and
activities should be related to one another. However, there is no such decision-making involved in an
informal organisation which may simply evolve over time.

In the context of a business organisation, both the formal and the informal organisations operate
together to form the total organisation. The formal structure delineates specific departments,
activities, people and their reporting relationships. The informal structure refers to the social groups
or friendships which people working together may form.

A most important aspect of the informal organisation is the informal communication network or
`grapevine' as it is more commonly known. If you analyse the communication network in your
organisation, you would realise the amount of information you gather from official circulars, memos
and speeches is rather insignificant compared to what you unofficially learn from your colleagues,
your subordinates and even your peons. The grapevine constitutes an extremely important
component of the organisational information system. How often you have been able to avert a crisis
much before it actually erupted because the information about the impending crisis was conveyed
to you by the grapevine?

Besides the grapevine, the other rnanifestation of the informal organisation is the formation of
groups which may spontaneously evolve when the formal organisation. is slow to respond to
changing external and internal forces. But sometimes these informal groups may also work against

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the formal organisation. This may happen when an informal group of workers may force other
workers to lay down tools, or work to rule or generally pose impediments in the path of progress.

Sometimes the norms and work ethics evolved by the informal organisation take precedence over
the official norms. The head of the market research division of a large multi-national company
involved in manufacturing and marketing a wide range of consumer products, would always spend
three to four hours every Saturday morning in office, even though Saturday was officially a holiday.
Observing that the departmental head worked on a holiday, his immediate subordinates also felt
obliged to be in office every Saturday. The manager did not expect it from his subordinates, but the
latter felt that by doing so they would be creating a favourable image for themselves in the eyes of
their boss which would help them in their promotion within the formal organisation.

Similarly, you would find informali ty evolved values operating within the parameters of the formal
organisation. These values may relate to dress, employment of women, employment of members of
a minority community, etc., In understanding the structure of an organisation, you must understand
the important role played by the informal organisation within the formal organisation.

DEGREE OF DECENTRALISATION/ NEED Centralisation refers to the concentration of authority and


decision-making in one single position in the organisation. In a one-man enterprise, the
entrepreneur makes all the decisions and all the authority and decision-making power is vested in
him. With the expansion of business, it may no longer be possible for one man to control all the
operations and may become necessary for him to delegate some responsibility and authority to
another person. Delegation implies that you are acting on behalf of your boss by virtue of the power
which he has given to you. The greater the delegation of power the greater is the extent of
decentralisation in the organisation.

You will find that some companies, even though physically very large, have highly centralised
structures. All decisions are taken by the top management, with the middle and operating level
managers having little or no say in running the show. On the other hand, you may find that even in a
relatively small organisation, there is greater delegation of power and the structure is very
decentralised. The degree of decentralisation in an organisation is partly a manifestation of the top
management's attitude. Some managers do not like to delegate even the smallest task to their
subordinates. There may be a variety of reasons for this. Doing all the tasks himself may give the
manager a great sense of power, or he may feel that the subordinate is incompetent and may
commit mistakes.

Total centralisation, however, is never desirable as it may bog down the manager in routine, trivial
tasks and leave him no time for planning the company's future. An effective manager would decide
the issue of centralisation versus decentralisation on the basis of the requirements of the situation
rather than his own personal bias.

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The introduction of computers and real time information has influenced the concept of
centralisation in an organisation. Information may be generated at the factory, but it is
instantaneously transmitted to the decision-maker (even if he is located 10,000 kms away) for
suitable action. Information may be processed and used at the place where it is generated or it may
simply be passed on to another location for use in decision-making. Real time information can lead
to greater centralisation or decentralisation.

The degree to which a term decentralises its structure depends on the requirements of its unique
situation. Also. a firm may not decentralise all its operations, but go in for only partial
decentralisation. Functions which facilitate local adaptation, quick decision-making in response to
local changes and strengthen worker participation should certainly be decentralised. On the other
hand, functions involving economics of scale, utilisation of specialised knowledge and involving huge
sums of money may remain centralised. Finally, the degree of decentralisation also depends on the
availability of competent and reliable people to head the independent operations.

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SHORT NOTE VERY IMPORTANT


Q1-MANAGEMENT VALUE AND ITS ETHOS ( VVVV IMPORTANT)

Ans- MANAGERIAL VALUES AND ETHOS- we have indicated that the managerial values affect
perceived characteristics of the internal environment of an organisation. At this juncture you may
well ask what some of these values are. How do these values develop? How do they get transmitted
from one generation of managers to another? In this section, we are going to explain briefly some of
these issues.

Ethos refers to habitual character and values of individuals, groups, races, etc. Managerial ethos is
concerned with the character and values of managers as a professional group. Contemporary
managers hold some specific values which affect work and some of these are: autonomy, equity,
security and opportunity.

You may recall that individual autonomy is a very important dimension of OC. Enlightened managers
believe that most people prefer to feel free and to do things as they like within the constraints
imposed by their group. These managers tend to allow enough latitude to individual employees as
long as the use of this freedom does not violate basic norms of the organisation. In the last two
decades, some management practices have been innovated which are in keeping with this value of
autonomy.

Equity refers to justice in rewarding performance. Here again, modern managers strongly feel that a
person must get a reward proportionate to his input. In any case, deliberate exploitation is to be
avoided and as far as possible "fairness" is to be maintained.

Another highly rewarded value is security, both economic and emotional. Keeping a person on his
toes by making him feel insecure is slowly but steadily getting discredited as a management
philosophy. Even the societies which have practised "hire and fire" policy are unmistakably shifting
towards providing security of job.

Providing enough career advancement opportunities to employees is yet another contemporary


managerial value. For several reasons it may not be possible for many organisations to create
enough vacancies for everybody to advance in their career. However, modern managers encourage
themselves and others to continue growing through various modes of education, although, it does
not necessarily lead to career advancement. Besides these four values which affect a manager's
work, the manager may have a strong "Work Value". Work Value refers to the worth a person
ascribes to the opportunity of work. If you have a "strong" work value you are going to identify the
worth or value of work to you in more ways than one. You may view work as an opportunity to: (a)
accept challenges, (b) serve others, (c) earn money, (d) enjoy prestige and status, (e) be creative, or
(f) be independent, etc.

MANAGERIAL ETHOS: ITS CHARACTERISTICS- Apart from these values, the managerial ethos of high
order requires certain other characteristics as well. Let us describe these very briefly to you.

Action goal orientation: Persons with high sense of adequacy have clear goals about their future and
are directed by these goals. They usually do not think their goals in status terms (i.e., what they
would like to be) but in activity terms (i.e., what they would like to do). For example, when a junior

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manager thinks that he would like to be the "Chief of Marketing" he is status-goal oriented; but
when he thinks that he would like to be influenced the marketing policies of the company, he is
actiongoal oriented.

Pro-action: Proactive people do things on their own without having to be told by any one. Such
initiative taking behaviour leads to a high level of activity and experimentation. As contrasted to
these people are reactive persons or conformists who spend most of their lives in doing things that
others expect them to do. Reactive people are other-directed, whereas proactive ones are inner-
directed. A superior managerial ethos requires more of pro-action than reaction

Internal resources: Managers with high sense of adequacy are aware of their internal 'strength and
are guided by these strengths. They are aware of their weaknesses but this awareness does not
deter them from acting positively or to look for opportunities for continuous self-improvement. They
are open to feedback and ready to learn from experience..

Problem-solving attitude: A superior ethos requires that managers view themselves as problem
solvers, rather than problem-avoiders. These managers have a positive orientation to problem
situations and do not want to run away from problems. They tend to approach problem situations
with optimism because they have internal locus of control, i.e., a strong belief that they can change
the environment through their own efforts.

Q2-MIS

ANS- MANAGEMENT INFORMATION SYSTEM Management Information System (MIS) refers to that
system by which information is collected, processed and presented to management to help it in
making better decisions. A manager makes decisions all the time and anything which helps improve
his decision-making will obviously lead to better results, and he becomes a better manager. As we
discussed in the previous section, the systems concept implies an input, a process, and an output. In
case of MIS, data is the input which is processed to provide output in the form of information
reports, summaries, etc. To be really useful the output must aid the manager's decision-making
process. If it ' does not do so, it is not a management information system, but just an information
system. An effective MIS should be:

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A manager's requirement of information depends on the level of management at which he is


operating. In any organisation there are three broad levels of management i.e., top, middle and
operating management. It is the type of decisions made by one level that distinguishes it from the
others.

The top management's concern is the entire organisation or group of organisations. At the top, the
manager needs to have information about changes in the environment which can affect the very
survival of his company. The decisions that the top manager makes are oriented towards the future.
A decision to diversify into paper manufacturing is not a decision which a printing, company will
make every now and then, but when it does, it totally changes the future of the company.

Top management decisions cannot be taken in a regular, routine manner but only after a great deal
of deliberation and consideration and are known as non-programmable decisions.

The manager at the middle level is mostly concerned with acquiring and controlling the necessarIy
resources to implement the objectives laid down by the top management. The middle level
managers are concerned with decisions which are important both in the present and future context.
However, the future horizon of the operating manager's decision is much shorter than that of the
top management. The middle level manager's is concerned with managing his own department, or
activity rather than the entire organisation. Information needed by the middle manager relates to
utilisation of resources and measurement of performance.

Managers responsible for production scheduling and customer service who perform specific tasks,
within well-defined rules and procedures, are referred to as operating managers. The decisions
these managers need to make are of a routine nature and are encountered almost every day. Since
the situations are repetitive, it is easy to specify how the decisions are to be made. Such decisions
are known as programmable decisions. A store-keeper who orders for a new lot of packing cartons
when the stock in the store is down to just the next two days supply is an example of a
programmable decision.While designing the MIS, the different types of information required by
different managers must be kept in mind. The manager at the top needs more information about the
environment. Regarding the internal operations of the company, the top manager is only concerned
with the results as reflected in profits, sales volume, turnover, etc. Moreover these results should be
presented in a summary rather than detailed format. The middle level manager is interested in
finding out why the results were not as per the expected plan, knowing about the deviations of the
critical variables and taking corrective action. The operating manager's concern is with details, like
the number of hours each machine operated, number of units produced per hour, etc. Most of the
internal organisational information is generated at this 'level but as it moves upward it is reduced to
a summary highlighting only the critical performance variables.

We have so far defined what we mean by the terms system and management, but have yet to talk
about information. Let us understand this with the help of an illustration. A market research team
interested in finding out the daily sales volume of Beauty Soap in Nagpur, notes down the number of
soap cakes sold from each outlet in the city. The number of soaps sold by M/s Soaps Stores on 18
September, 1986 is a piece of data. In a similar manner, data on sales made by each store in the city
is collected. All this data when put together is information. Data by itself does not convey much
meaning. However, when all the data is put together we know that 67 outlets in Nagpur account for
a sale of 224 soap cakes. It constitutes a meaningful piece of information. To make it more

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meaningful, we may further classify the outlets by the type of store (general merchant, super bazar,
departmental store, etc.), geographical location or volume of sale. From this same data we may
generate a daily sales report for the marketing department and one for the accounts department
showing the outstanding amount against each store.

Thus we see that only when data is put together in a meaningful form does it constitute information.
Further, the same data can be used for generating multiple reports for use by different individuals
and departments.

In designing an effective MIS, the manager must understand the nature and flow of information.
Information regarding government policy, legislation, competition, etc. is generated in the
environment but is collected and used within the organisation. Similarly, the firm or organisation
may send out information to the environment in the form of annual reports, company balance
sheets, press-releases. Besides this, the company managers and employees are also information
carriers. Within an organisation, information may flow from operating level towards top
management level (bottom to top) and from top to bottom. Reports, summaries and feedback about
impact of decisions flow from bottom to top and decisions, instructions flow from top to bottom.
Information also flows sideways from one manager to another at the same managerial level.

deally a manager would like to collect information on all possible aspects of a situation before
making a decision but that is not always possible due to constraints of time and money. The costs
which act as a constraint on MIS are the costs involved in data collection, data processing and data
access. Data may be easily available within the organisation but still there is a definite cost involved
in collecting it.

Suppose you want to gather information about the age and educational qualifications of all the 150
workers in your organisation to determine how many of them would qualify for the proposed
scholarship for the under 35 years matriculate workers. You may either depute a man to personally
go to each employee and note down the data or you may circulate a small cyclostyled note to the
employees asking them to furnish the relevant data. Anyway you decide to do it, a cost is involved
(cost in terms of mandays of the person collecting the data or the 150 cyclostyled slips of paper).
Having collected all the data, someone will have to sit down and put it in a particular format (process

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it) so that it constitutes meaningful information which will serve your purpose. Again, an element of
cost is involved.

Having determined that only 64 workers qualify for the scholarship, the immediate use of the
information is over. You can throw away the remaining information or if you think you may offer.
this scholarship again next year, it would be wiser to store the information. The peon simply puts all
the papers in a file and locks it in the filing shelf. Next year when you need the information,
somebody will have to search for that particular file and make it available to you (make it
accessible). Time is needed to access the information. Thus every step involves time and money.

With the advent of computers the tasks of processing and storing data have become easier, and the
amount of data that can be processed and stored has increased a thousand fold. Buying, maintaining
and operating a computer also involves cost. The manager has to determine whether the costs
incurred in collecting, processing and accessing data are commensurate with the improvement it
yields to his decisionmaking

Q3-REGISTANCE TO CHANGE (VVVV IMPORTANT)

Ans- From its inception, the study of organisational change has noted the fact that many participants
respond with dogged resistance to altering the status quo. Since the industrial revolution began,
workers have at times sought, occasionally in extremely violent fashion, to block the introduction of
new technology. Supervisors and lower level managers have balked at large scale projects in job
redesign and job enrichment; even low level employees, the presumed beneficiaries of such
projects, have fought such changes. Divisional managers have fought pitched battles against
realignment of corporate structure. Even the proposal by a course coordinator to adopt a different
text book is capable of touching, off a frenzy of defensive tactics to resist change.

Such behaviour may be either overt or covert. Overt resistance may take the form of employees
deliberately failing to do the things necessary for successful change or simply being unenthusiastic
about the change. The absence of overt resistance does not mean that resistance is not present, as
resistance may be hidden from direct observation. Covert resistance can be more detrimental to
change than open resistance because it is harder to identify and eliminate.

Watson (1966) has suggested that there are at least two sets of factors which explain the process of
resistance. One set relates to the personality and the other relates to the social system.

In case of the personality related factors one can include the following:

Homoeostasis or the tendency of the organisation to maintain an equilibrium. Because of this


tendency all change related phenomena are resisted.

Habit : Since change entails a conflict with established habits, it tends to be resisted.

Primacy: The way in which a situation is first encountered and the difficulties are overcome tends to
be firmly established. This becomes an established behaviour tendency.

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Selective perception and retention : Human beings have a tendency to perceive and retain those
aspects of their environment which are cognitively consonant. An individual does not like to read or
hear views which contradict his own opinions. Many a good idea 'is rejected as a theory which would
not work in the practical situation

You will usually find that winning over thc uncommitted is a necessary but not sufficient condition
for actually ushering in a change programme. Frequently the resisters, even if a small minority, will
include in their ranks critically placed individuals or groups who, even if not able to block change,
have the potential for sabotaging it when put into operation. Successfully implemented change

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requires some means of coopting these groups. This usually necessitates substantial modifications of
the originally proposed programme.

One means of accommodating resisters is to invite their participation in the planning, design and
process of carrying out programmes. Numerous experiments and experiences demonstrate that
when members are allowed participation in planning the installation of new production methods,
they show less resistance to learning and adopting new methods. Participative forums give affected
parties a sense of ego-identification with the proposed changes leading to a commitment to see the
change effectively implemented. It also provides sufficient exposure to information about the nature
and consequences of the change so that the anxiety out of uncertainty is reduced.

Q4- Barrier of effective communication (v v v v v important in long question also )

Ans- communication has been defined as the transmission of meaning or understanding. Yet by far,
most of the communication in organisations or between persons fails to satisfy this criterion.
Communication quite often fails to convey the meaning or develop an understanding of the
communication sufficient enough to bring about a change in the behaviour of the recipient.
According to Peter Drucker, "We have more attempts at communications today, that is, more
attempts to talk to others, and a surfeit of communication media yet communication has proved as
elusive as the Unicorn. The noise level has gone up so fast that no one can really listen any more to
all that babble about communications. But clearly there is less and less of communicating. The
communication gap within institutions and between groups in society has been widening steadily-to
the point where it threatens to become an unbridgeable gulf of total misunderstanding."
(Management Tasks, Responsibilities and Practices p. 481.)

One of the biggest dangers in communication is to assume that communication has taken place.
Most of us indeed make a great effort in formulating ideas, and finding appropriate words for
communicating them to others. In organisations, too, much money and energy is used to develop its
system of communication. And yet, if you try to assess how far the system has led to effective.
communication in terms of the desired response, you will be surprised at the results. There is a fifty-
fifty chance of the communication not being understood to the degree you would be satisfied with.
This has been proved by a number of experiments and observations made by communication
specialists. There is a story from the army which tells of an instruction starting at one end of the line
as `Send reinforcements' and ending up at the other end of the line as `send three shillings and six
pence'.

You can perhaps test it yourself. Try to recollect the news items of the previous evening's news
telecast or broadcast. How many items can you recollect? Most likely less than half!

These examples indicate what happens to most of the communications between persons or within
organisations. It is not only important that a communication be sent, it is much more important that
it be understood. When an understanding of the communication does not take place, we can hardly
expect a desired change in the behaviour of the receiver. What causes a failure of communication?

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The failure in communication arises because of certain blockages or barriers between the sender
and the receiver. In order to make a communication effective, it must be ensured that these barriers
are removed. What the commercial media men these days try to achieve is to overcome the barriers
and reach the target audience. What kind of barriers interfere with the effectiveness of
communication? In the paragraphs that ' follow, we shall discuss the various reasons which either
prevent the communication from reaching the receiver or distort it in such a manner that it ends up
either as noncommunication or as miscommunication. Since a manager has to use communication
as a means of getting the work done through his subordinates, he must ensure that barriers are
minimised and effective communication takes place.

The barriers that interfere with the understanding of the, communication are of three kinds:
semantic, psychological and organisational. We shall discuss them one by one.

Semantic Barriers

Most of the difficulties in communication arise because the same word or symbol means different
things to different individuals. Perhaps you remember what happened to Shiny Abraham at the
recent (1986) Asian Games at Seoul. Despite coming first by a very wide margin in the 800 m. race,
she was disqualified and lost her gold medal for having crossed the track at the place where she
should not have done. According to her she mistook the symbol, i.e. the colour of the flag. Whereas
in our country the red flag indicates danger, in South Korea white flag is used for the same purpose.
Misinterpreting the white flag which had been put up at that point, she crossed the track at the
wrong place and suffered a setback.

Words, which are in reality symbols representing a thing, an action or a feeling, can have several
meanings. As explained earlier, words which represent concrete things, e.g. car or house, tend to be
understood in the same way, while abstract words like merit, effectiveness or responsibility, tend to
be interpreted by different persons in different ways. Difficulty in understanding may arise even in
the case of ordinary words which have different contextual meanings. Lately such difficulties are
being experienced increasingly by people working in international development field. One such
problem arose in interpreting the meaning of the word `steps'. In a training programme of health
workers relating to the family health in Jamaica when a question "What are some of the steps that a
mother should take to make sure that her baby keeps healthy?" was asked, it was found that there
was no response to it. The trainees who were accustomed to only one meaning of the word `steps'
based on their experience, could not just make any sense of the question.

Semantic difficulty may arise because of unfamiliarity with words, for example, a word of some
foreign language of which the receiver has no knowledge. A technical word may also create such a
problem-it may be beyond the ability of the receiver to understand it.

In order to make it effective, a communication must be put into words which are appropriate to the
environment and mental framework of the receiver. This ensures the communication to be grasped
properly and implemented effectively. A very interesting example of a communication made
effective by the use of words appropriate to the environment in which they were used is provided by
the following incident that took place in one of the. agricultural states of the USA.

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A proposal for raising the salaries of the faculty members of an agricultural college was under
discussion. The farmers' bloc was totally against giving the raise to the college teachers-they could
not see why they should pay those college teachers $5,000 a year just for talking 12 or 15 hours a
week. Faculty representatives made no headway in their negotiations until one of them who had
some farming experience, got an inspiration. "Gentlemen", he told the members of the
administrative body, "a college teacher is a little like a bull. It's not the amount of time he spends.
It's the importance of what he does!"

The faculty members got the raise. Semantic barrier may further be created by body language being
inconsistent with the verbal communication. A manager who praises the honesty and sincerity of his
subordinate in a sarcastic tone creates doubts in the minds of the subordinate as to the course of
action he should adopt in a given situation in future. The same kind of barrier is created by a
divergence between the verbal language and the action language of the superiors. When action and
language are used jointly, the actions often have more powerful influence on other's actions than do
words. A management may, for example, profess its belief in being guided solely by the merit of
employees while making promotions. Yet if employees observe that in actual practice promotions
are made on considerations other than merit, the management's professed policy is bound to be
affected by a semantic barrier-it is not likely to communicate anything, only the actions will
communicate and what they communicate will be contrary to what had been said in so many words.

Psychological Barriers

Psychological barriers are the prime barriers in inter-personal communication. The meaning that is
ascribed to a message depends upon the emotional or psychological status of both the parties
concerned. As such the psychological barriers may be set up either by the receiver or the sender of
the message. You have already seen that the effectiveness of any communication depends upon the
perception of the right meaning of the message on the part of the receiver. However the perception
of meaning is very much affected by the mental frame of the receiver al the time the message is
received. Emotions which dominate our mood at the time, e.g., anger, anxiety, fear, happiness, etc.,
will affect our interpretation of the message. The phrases `viewing with coloured glasses' or `seeing
with jaundiced eyes' explain vividly how our inner feelings may vitiate our perception of the message
or thesituation. Past experience of the receiver in such situations would also lead to the same effect.
The same thing may happen when different individuals interpret the same event or situation. For
example, take the case of a supervisor watching a group of employees resting and gossiping on the
lawns. How will this situation be perceived?

To the supervisor who believes that employees are basically lazy, the situation communicates to him
that they are playing truant with their work, and therefore should be given more work to do and
disciplined. To the supervisor who believes that his workers are self-motivated and are sincere
workers, the situation communicates that they are enjoying a well-earned rest. To the supervisor
who is personally insecure, the situation communicates that they are conspiring against him

You will, therefore, see that a particular kind of situation, event, happening or words and symbols
are capable of being interpreted by different people in different ways according to their own
psychological states. A receiver who is suspicious or hostile, either as a consequence of his feeling of
insecurity or because of his past experience with the sender of the communication, is more likely to
start `reading between the lines' and ascribe a distorted meaning to the message. To the receiver's

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mind a communication gets tied up with the personality of the source. This is what some people call
the halo effect. Thus if we receive a message from a person we admire, we are more likely to agree
with it and act accordingly. On the other hand, our immediate reaction will be one of disagreement
with a message that has been received from a person we do not like or trust. Thus our perception of
meaning of the communication is coloured by our own value judgments about the source of the
communication.

an organisation when communication is passed on verbally from one to another, as in a grapevine.

Organisational Barriers

Organisations provide a formal framework through which communication is designed to flow. The
structuring of the flow itself tends to act as a barrier against freer flow of communication between
persons and levels in the organisation. Rules may prescribe how communications are to move from
one level to another in upward or downward directions. Not only is there a possibility of delay in the
communication reaching its destination, but also there is every possibility of communication getting
distorted through the process of filtering described in the previous paragraphs. It has been found
that when information is channelled through different levels of organisation, it became altered as

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people interpreted facts differently. In an organisational setting this can be a very big problem since
senior level executives who work through others have to depend more and more on the information
and interpretations of their subordinates. Critical information that has lost its criticality because of
the actions of the intervening levels may jeopardise the position of the manager as well as the
organisation itself

It has been observed that the upward communication is particularly subject to the influence of
filtering in large organisations. Upward communication serves essentially two purposes in an
organisation. First, it helps in coordinating and controlling the activities of the organisation. Second,
it enables the superior to appraise the performance of his subordinates. While the former does not
create ony problems, the latter has behavioural implications. It is human nature to show one's
performance in a better light than what it actually is. This tendency of an individual naturally brings
about a filtering through conscious or unconscious altering, withholding or interpreting facts to be
transmitted upward.

Dependency syndrome of the subordinate heightens the tendency to filter information. In a


superior-subordinate relationship, the subordinate is, generally speaking, dependent on the superior
for his advancement. Studies show that the greater the dependency of the subordinate on his
superiors for the satisfaction of his needs, the more his tendency to filter information of an
unfavourable kind. It has been found that subordinates are generally unwilling to communicate
unfavourable information when they feel that their superior has the power to punish them in some
way. Only positive aspects of performance are likely to be communicated upwards. Another barrier
in organisational setting is created by the superior-subordinate relationship itself which develops a
distance between the two. People are more comfortable in communicating with persons of similar
status as their own. Communication with persons of higher or lower status is likely to be formal and
reticent rather than informal and free. The distance between the superior and subordinate and the
difficulty in freer communication between them tends to be heightened through status symbols
which might be used to show the hierarchical status of the person concerned. Status symbols within
an organisation may be in the form of separate parking space, separate bathrooms, separate
refreshment rooms, cabins with stylised furniture, carpets, etc. Such symbols accentuate the
distance between the different hierarchical levels and tend to widen the communication gap.
Perhaps you may have read that among the several characteristics of Japanese style of management
is the removal of status symbols. For example, under the Japanese system there are no separate
cabins for managers, uniforms for workers and managers are the same, they eat the same menu in
the same cafeteria. All these are intended to reduce the distance between the workers and the
managers, and bring about a better understanding of the problems of the organisation which is the
chief objective of organisational communication.

You have read in the last few pages about the problems that crop up in communicating with others,
whether inside or outside the organisation. These problems create an interference in the process of
sharing of the meaning of a communication, and thus block its effectiveness. As a manager you will
be continuously required to make use of your communication abilities in the performance of your
job. Since your success as a manager will be judged in terms of the results that you produce, the
effectiveness of your communication is, therefore, of prime importance to you. We shall explain to
you in a few paragraphs below what you can do to make your communications effective.

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Q5 Type of power ( v v v important )

Ans- Power has been an important aspect of human civilization since time immemorial. Power
might be physical, political or social. In the context of business as well, power dynamics tend to
influence decisions and people transactions heavily. So defining power can be difficult as it is
understood and interpreted in several ways however power can definitely not be called a force
which gets you what you want. Power basically emanates from position or authority which can
influence people both positively and negatively.

For simplicity and understanding purposes power is usually classified into following categories:

1. Coercive Power- This kind of power involves the usage of threat to make people do what
one desires. In the organizational set up, it translates into threatening someone with
transfer, firing, demotions etc. it basically forces people to submit to one’s demand for the
fear of losing something.
2. Reward Power- As the name suggests, this type of power uses rewards, perks, new projects
or training opportunities, better roles and monetary benefits to influence people. However
an interesting aspect of this type of power is that, it is not powerful enough in itself, as
decisions related to rewards do not rest solely with the person promising them, because in
organizations, a lot of other people come into play like senior managers and board.
3. Legitimate Power- This power emanates from an official position held by someone, be it in
an organization, beurocracy or government etc. The duration of this power is short lived as a
person can use it only till the time he/she holds that position, as well as, the scope of the
power is small as it is strictly defined by the position held.
4. Expert Power- This is a personal kind of power which owes its genesis to the skills and
expertise possessed by an individual, which is of higher quality and not easily available. In
such a situation, the person can exercise the power of knowledge to influence people. Since,
it is very person specific and skills can be enhanced with time; it has more credibility and
respect.
5. Referent Power- This is a power wielded by celebrities and film stars as they have huge
following amongst masses who like them, identify with them and follow them. Hence, they
exert lasting influence on a large number of people for a large number of decisions; like from
what car to buy to which candidate to choose for a higher office in the country.

So, power can be defined in a number of ways however what is important is the usage of the power
by people who possess it. Within the organizational context the power dynamics and equations need
to be carefully managed as they have a huge impact on the motivation and engagement level of
employees. It also defines the organization’s culture in general and people transactions within the
organization in particular. A very hierarchy and power driven organization finds it difficult to
accommodate new and innovative ideas, any change is vehemently refused, egos clash and lesser
opportunities are made available for the high performers, thus delaying organizational growth. On
the other hand, in an organization which is flat in structure, people are encouraged to innovate and
explore, thus bringing in new concepts and ideas to accelerate organizational growth and expansion .

Q6- Benefits of MBO (v v v v inmportant in long questions also)

Ans- The benefits accruing from MBO can be discussed in terms of the specific benefits to the
subordinate, the superior and the organisation:

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Benefits to subordinates include greater role clarity, measurement of performance and increased
job satisfaction. W hen specific objectives have been agreed upon, the subordinate knows exactly
what he has to achieve and can plan his various activities towards this end. Role and goal clarity
ensure that there is no wastage of scarce organisational resources, on the one hand and single
minded dedication to achievement of objectives on the other."

MBO implies regular feedback and measurement of performance against objectives. This serves as a
great motivating factor for people to put in their best effort to achieve the objectives. It also helps to
weed out the non-performer and identify the real contributors. Clear, specific objectives and
unbiased feedback about performance contribute to increased job satisfaction as compared to a
situation where a person does not know what is expected of him and how, if at all, his performance
will be judged. Job satisfaction emanates from the feelings of having done a job well to the best of
your capability as well as public recognition and approval for it. The former is possible only when
there are specific objectives while the latter can occur only if there is a system of review and reward.
A worker or manager who derives satisfaction from his job will work harder in order to improve his
performance while a dissatisfied, discontented manager will make a negative contribution. Thus
MBO can serve to bring about a change and put people on the self-propelling cycle of role clarity,
increased job satisfaction and increased productivity.

Benefits to Superiors: The benefits accruing to the subordinate will, of course, also accrue to the
superiors. But besides these, the other specific benefits for superiors are that MBO motivates
subordinates, strengthens superior-subordinate relationship, and provides an objective appraisal
method.

MBO is based on the concept of participation and this leads to greater motivation. Setting objectives
implies that both the superior and the subordinate have to sit across the table and openly discuss
their respective roles, work, obstacles and competencies. Such candid discussion always leads to
increased mutual trust and confidence in each other and provides an enduring bond to the
relationship. One of the biggest advantages of MBO is that it provides an objective basis for
reviewing performance on the basis of achievements rather than personality traits. Reviewing a
person on the basis of his personality not only puts him on the defensive but serves no purpose from
the organisation' s point of view. The only thing that matters is results. People are retained by
organisations to produce results andnot because they are sociable, soft spoken, introverted or
possess any other such personality characteristic which has no bearing on their competence or
capability.

Benefits to the organisation: MBO focuses on managerial effectiveness as a central value in the
entire organisation. And this emphasis permeates down to the lowest level, influencing each
manager and worker. This shows up in all the decisions which each manager makes and the overall
performance of the organisation is improved. Secondly, MBO with its focus on objectives improves
concentration and coordination of managerial effort. There is maximum utilisation of resources and
conflicting pulls in opposite directions are avoided. Thirdly, the periodic review in MBO helps identify
advancement potential of workers and managers. It also helps in identifying workers-who are under-
utilised or not making the full contribution. Lastly, MBO creates many centres of accountability as
against one centralised accountability point. It is not only the managing director or proprietor who is
accountable for producing the desired results but each manager is responsible for achieving the

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agreed-upon objectives. Thus MBO leads to greater decentralisation in terms of setting and
achieving objectives.

Some limitations:

In practical implementation you could sometimes encounter one or more of the following limitations
of MBO. Problems in joint objective setting among unequals. MBO implies a process of point or
consultative objective setting between the superior and the subordinate. But this very relationship,
based upon status, may prove to be a hindrance in free, frank and open communication between
the two, and stall the process of setting goals in an objective manner;

Problems of MBO being effective at the lowest level. Theoretically, MBO is supposed to percolate
throughout the organisation right down to the lowest level since the manager as well as the worker
at each level have set their own agreed upon objectives. However, in reality, the workers or
managers at the lower levels often do not have the full freedom to set their own objectives. This is
because MBO operates from top to down, starting with the corporate objectives. Thus, the process
of objective setting implies that the objectives at the lower level have already been locked in and
managers down the line have to match their own objectives with those of the level above them only.
If the process of objective setting is reversed to overcome this limitation, and objectives are first set
at the lowest level, it would mean that the entire organisation is being guided by people who have
less experience, less education, less knowledge and awareness; and it is

Difficult to implement in a situation of change. MBO assumes a stable environment in which the
objectives once set will hold good till they are achieved. In reality, however, many unforeseen
changes may occur which may render the objective impossible to achieve, or irrelevant, or invalid. In
a situation where sudden changes occur frequently MBO is difficult to implement.

Q7- Type of managerial decisions (v v important)

Ans -

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Q8 Brain storming (V V V V Important )

Ans-Madison Avenue advertising executive Alex Osborn developed the original approach and
published it in his 1953 book, "Applied Imagination." Since then, researchers have made many
improvements to his original technique.The approach described here takes this research into
account, so it's subtly different from Osborn's approach.Brainstorming combines a relaxed, informal
approach to problem solving with lateral thinking. It encourages people to come up with thoughts
and ideas that can, at first, seem a bit crazy. Some of these ideas can be crafted into original,
creative solutions to a problem, while others can spark even more ideas. This helps to get people
unstuck by "jolting" them out of their normal ways of thinking.Therefore, during brainstorming
sessions, people should avoid criticizing or rewarding ideas. You're trying to open up possibilities and
break down incorrect assumptions about the problem's limits. Judgment and analysis at this stage
stunts idea generation and limit creativity.Evaluate ideas at the end of the session – this is the time
to explore solutions further, using conventional approaches.
Why Use Brainstorming?
Conventional group problem solving can often be undermined by unhelpful group behavior . And
while it's important to start with a structured, analytical process when solving problems, this can
lead a group to develop limited and unimaginative ideas.By contrast, brainstorming provides a free
and open environment that encourages everyone to participate. Quirky ideas are welcomed and
built upon, and all participants are encouraged to contribute fully, helping them develop a rich array
of creative solutions.
Individual Brainstorming
While group brainstorming is often more effective at generating ideas than normal group problem
solving, several studies have shown that individual brainstorming produces more – and often better
– ideas than group brainstorming.This can occur because groups aren't always strict in following the
rules of brainstorming, and bad behaviors creep in. Mostly, though, this happens because people
pay so much attention to other people that they don't generate ideas of their own – or they forget
these ideas while they wait for their turn to speak. This is called "blocking."
When you brainstorm on your own, you don't have to worry about other people's egos or opinions,
and you can be freer and more creative. For example, you might find that an idea you'd hesitate to
bring up in a group develops into something special when you explore it on your own.

However, you may not develop ideas as fully when you're on your own, because you don't have the
wider experience of other group members to draw on

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Group Brainstorming

Here, you can take advantage of the full experience and creativity of all team members. When one
member gets stuck with an idea, another member's creativity and experience can take the idea to
the next stage. You can develop ideas in greater depth with group brainstorming than you can with
individual brainstorming.

Another advantage of group brainstorming is that it helps everyone feel that they've contributed to
the solution, and it reminds people that others have creative ideas to offer. It's also fun, so it can be
great for team building!

Group brainstorming can be risky for individuals. Unusual suggestions may appear to lack value at
first sight – this is where you need to chair sessions tightly, so that the group doesn't crush these
ideas and stifle creativity.

Where possible, participants should come from a wide range of disciplines. This cross-section of
experience can make the session more creative. However, don't make the group too big: as with
other types of teamwork, groups of five to seven people are usually most effective.

Q9- Johari window (vvv important )

Ans- The Johari Window is the psychological model developed by Joseph Luft and Harrington
Ingham, that talks about the relationship and mutual understanding between the group members. In
other words, a psychological tool that helps an individual to understand his relationship with himself
and with other group members is called as a Johari Window. The objective behind the creation of a
Johari window is to enable an individual to develop trust with others by disclosing information about
himself and also to know what others feels about himself through feedback.

The Johari Window model is made up of four quadrants that explain the overall relationship of an
individual with himself and with other group members. These are as follows:

1. Open Self: This quadrant shows the behavior, motives, attitudes, knowledge skills of an individual
that he is aware of and is willing to share it with others. The open self is characterized as a state
wherein the individual is open and straight forward to himself and others about what he is doing,
how is he doing and what are his intentions.

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2. Blind Self: The blind self shows the state of an individual known to others but not known to him. It
usually happens, when an individual or a subject copies the behavior of some significant
personalities unconsciously since his childhood.
3. Hidden Self: This quadrant of the Johari window shows the state of an individual known to him but
not known to the others. This is generally seen in the individuals who are introvert and do not like to
share their private lives with anyone. The individual keeps his feelings, ideas or thoughts to himself
and do not disclose it in front of the others.
4. Unknown Self: The unknown self is the mysterious state of an individual neither known to him, nor
others know about it. Ofen the feelings, thoughts or ideas go so deep down the individual that it
becomes difficult for the individual as well for the other people to understand it.
The ultimate need is to enlarge the open self quadrant with the intent to establish a fruitful
relationship with the self as well with others such that the work can be performed efficiently when
working as a team.

Q10 Decentralization (V V V IMPORTANT)

Ans - Decentralization refers to a specific form of organizational structure where the top
management delegates decision-making responsibilities and daily operations to middle and
lower subordinates. The top management can thus concentrate on making major decisions
with greater time abundance.

Businesses often feel the requirement of decentralization to continue efficiency in their


operationDecentralization can be understood as the orderly assignment of authority,
throughout the levels of management, in an organisation. It describes the way in which
power to take decisions is allocated among various levels in the organisational hierarchy. In
other words, it refers to the dissemination of powers, functions and responsibility, away from
the central location.

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EXTRA SHORT NOTE (IF TIME IN EXAM CAN DO THAT )

1- Individual vs group decision making


2- Successful vs effective leadership
3- Gamesman model of decision making unit 6.5
4- Group cohesiveness
5- Formal and informal organization
6- Line and staff relationship
7- Process of planning unit 3
8- Process of strategy formulation unit 5
9- Developing inter personal relationship

EXTRA 5 LONG QUESTION IMPORTANT (IF TIME IN EXAM CAN DO )

1- What is source of conflict and explain different mode of conflict management with example
unit 10
2- Different approach to coordination and its importance
3- Different management process and its importance unit 3
4- Advantage and disadvantage of group vs individual decision making . barrier to effective
decision making unit 7
5- Demerit of interpersonal behaviour .

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