Department Of Management Studies

MCOB
Coaching Material
UNIT-1
Management Definition :
Management is the “art of getting things done through other people” is stated
by Mary Parker Follett.
According to FW Taylor “management is the art of knowing what you want to do
and then seeking that it is done in the best and cheapest way.

Functions of Management:
Planning, Organising, Staffing, Directing and Controlling.

Levels of Management:

F.W.Taylor’s Theory of Scientific Management:

Frederick Winslow Taylor (1856-1915) is the father of scientific management.

He exerted great influence on the development of management thought through
his experiments and writings. During a career spanning 26 years, he arranged a
series of experiments in three companies: Midvale Steel, Simonds Rolling
Machine and Bethlehem Steel.
• Time and motion study: Since Taylor had been an operator himself; he
knew how piecework workers used to hold back production to one-third its
level. The workers feared that their employers would cut their piece rate
as soon as there was a rise in production. The real trouble, Taylor thought,
was that no one knew how much work was reasonable for a man to do.
Therefore, he established the time and motion study, where every job
motion was supposed to be timed by using a stopwatch and shorter and
fewer motions. Thus, the best way of keeping an account of work
performance was found. This had replaced the old
rule-of-thumb-knowledge of the worker.

• Differential payment: Taylor had founded the differential piecework

system and the related incentives with production. Under this plan, a
worker received a low piece rate if he produced the standard number of
pieces and a high rate if he surpassed the standard. Taylor also
comprehended that the attraction of a new high piece rate would
encourage the workers to increase production.

• Drastic reorganisation of supervision: Taylor developed two new

concepts: (i) Division of planning and doing and (ii) Functional
foremanship. In those days, it was customary for each worker to plan his
own work. The worker himself used to select his tools and decide the
sequence of performance of operations. The foreman essentially told the
worker what jobs were to be performed, not how they were to be
performed. Taylor suggested that the work should be designed by a
foreman and not by the worker. He stated that there were distinctive
functions involved in doing any kind of job and that each of the foremen
should give orders to the worker in his specialised field.

• Scientific recruitment and training: Taylor also gave importance to

the scientific selection and development of the worker. He said that the
management should develop and train every worker in order to bring out
his best output and to enable him to perform a superior, more interesting
and profitable class of work than he has done in the past.

• Intimate and friendly cooperation between the management and

workers: Taylor said that, “a complete mental revolution” on the part of
management and labour was necessary to make the organisation
successful. Rather than argue over profits, they should both try to increase
production. Consequently, profits will also increase manifold, which will
leave no room for further disagreements. Taylor realised that both, the
management and labour, had a common interest in maximising
production.
2. Gantt identified the significance of the human element in productivity and
suggested the concept of motivation. He introduced two new features in Taylor’s
incentive scheme, which was found to have minimal motivational impact. First,
every worker who finished a day’s assigned workload was to win a 50-cent bonus
for that day. Second, the foreman was to get a bonus for each worker who
achieved the daily standard, plus an extra bonus if all the workers reached it.

3. Frank and Lillian Gilbreth contributed to the scientific management

movement as a
team. They made motion and fatigue study their lifework. Using motion picture
cameras,
Frank Gilbreth tried to find the most economical motions for bricklaying. He
classified all
movements employed in industrial work into 17 basic types called 'Therbligs' (A
Therblig is the name for one of a set of fundamental motions required for a
worker to perform a
manual operation or task. The set consists of 18 elements, each describing a
standardized activity) and provided a shorthand symbol for each so that the
analyst could easily and quickly jot down each motion as he observed the worker
in action. The eighteen elements were: search, find, select, grasp, hold, position,
assemble, use, disassemble, inspect, transport loaded, transport unloaded,
pre-position for next operation, release load, unavoidable delay, avoidable delay,
plan, rest to overcome fatigue. According to the Gilbreths, motion and fatigue
studies increased workers’ morale, physical benefits etc.

Contributions and Limitations of Scientific Management

Firstly, through the time and motion studies we understand that the tools and
physical activity concerned in a job can be made better balanced and organised.
Secondly, scientific management discovered how important scientific selection of
workers was and comprehended that without capability and training, a person
cannot be expected to do his job properly. Finally, the significance that scientific
management gave to work design encouraged managers to seek the ‘one best
way’ of doing a job. Thus, scientific management has developed a rational
approach to solve the organisation's problems and contributed a great deal to the
professionalism of management. Scientific management is criticised on the
following grounds:

• Taylor’s conviction that monetary incentives are strong enough to

motivate workers for improved production has been proved wrong. No man
is entirely 'an economic man’ i.e. a man’s behaviour is not always dictated
by his financial needs. He has different types of needs such as security
needs, egoistic needs or social needs which motivate him far more than his
desire for money, at least after he has risen above the starvation level.
• Taylor’s time and motion study is not accepted as entirely scientific.
• Newer methods and better tools and machines led to the removal of some
workers, who found it challenging to get other jobs. This caused discontent
among them.
Fourteen principles of management advocated by Henry Fayol.
● Division of work: Division of work in the management process
produces increased and improved performance with the same effect.
Various functions of management like planning organising, directing and
controlling cannot be performed efficiently by a single proprietor or by a
group of directors. They must be entrusted to the specialists in the related
fields.

● Authority and responsibility: A manager may exercise formal

authority and personal power. Formal authority is derived from his official
position, while personal power is the result of intelligence, experience,
moral worth, ability to lead, past service etc. Responsibility is closely
related to authority and it arises wherever authority is implemented. Both
responsibility and authority are equally important.

● Discipline: Discipline is necessary for the smooth functioning of a

business. By discipline, we mean the obedience to authority, adherence to
the rules of service and norms of performance, reverence for agreements,
sincere efforts for completing the delegated responsibility, deference for
superiors etc. The best measures of maintaining discipline are (a) good
supervisors at all levels, (b) transparent, unambiguous and unbiased
agreement between the employer and (c) judicious application of penalties.
In fact, discipline is what leaders make it.

● Unity of command: Every employee should receive orders from only one
superior. There should be a clear-cut chain of command.

● Unity of direction: This means that there must be complete congruency

between individual and organisational goals on the one hand and between
departmental and organisational goals on the other.

● Subordination of individual interest to general interest: In a firm,

an individual is concerned with making the most of his own satisfaction
through more money, recognition status etc.

● Remuneration: The remuneration paid to the employees of the firm

should be fair. It should be based on general business conditions, cost of
living, productivity and efficiency of the concerned employees and the
capacity of the firm to pay. Just and adequate remuneration increases
employee effectiveness and confidence and maintains good relations
 between them and the management. If the compensation is not sufficient,
it will lead to dissatisfaction and employee relinquishment.

● Centralisation: If subordinates are given a greater role and importance

in the management and organisation of the firm, it is known as
decentralisation but if they are given a smaller role and importance, it is
known as centralisation. The management must decide the degree of
centralisation or decentralisation of authority based on the nature of the
circumstances, size of the undertaking, the category of activities and the
characteristic of the organisational structure. The objective or purpose
should be the optimum utilisation of all faculties of the personnel.

● Scalar chain: As per this principle, the orders or communications should

pass through proper channels of authority along the scalar chain.

● Order: To put things in an order takes effort. On the other hand, disorder
does not require any effort. It evolves by itself. The management must
bring about order, harmony and regulation in work through appropriate
organisation. The management should observe the principle of 'right place
for everything and for every man'. To view this principle, there is a need
for the selection of competent personnel, right assignment of duties to
employees and good organisation.

● Equity: Equity results from a mixture of kindness and justice. Employees

expect the management to be equally just with everybody. It requires
managers to be free from all prejudices, personal likes or dislikes. Equity
provides healthy industrial relations between management and labour,
which is necessary for the successful functioning of the enterprise.

● Stability of tenure of personnel: In order to motivate workers to

perform additional and improved quality and quantity of work, it is
necessary that they be assured of the security of their job by the
management. If they have a fear of insecurity of their job, their morale
will be low and they cannot deliver sufficient quality and quantity of work.
Further, they will not have any sense of attachment to the firm and they
will always be on the lookout for a job elsewhere.

● Initiative: Initiative is to think and implement a plan. The zeal and

energy of employees is augmented by initiative. Innovation, which is the
hallmark of technological progress, is possible only where the employees
are encouraged to take initiative. According to Fayol, “initiative is one of
the keenest satisfactions for an intelligent man to experience” and hence,
he advises managers to give their employees ample scope to take the
initiative. Employees should have a positive attitude and make
suggestions freely.
 ● Esprit de Corps: This means team strength. Only when all the personnel
unite as a team, is there scope for realising the objectives of the concern.
Harmony and solidarity among the staff is a great source of strength for
the undertaking. To achieve this, Fayol suggested two things. One, the
motto of divide and rule should be avoided and two, verbal communication
should be used for removing misunderstandings. Differences further
deteriorate through written communication.

UNIT-2

Characteristics of a sound plan:

Ans: The characteristics of a good business plan include: primacy, continuity,
flexibility, consistency, precision, and pervasiveness.
Differences of Formal and Informal Organization:

BASIS FOR
FORMAL GROUP INFORMAL GROUP
COMPARISON

Meaning Groups created by the Groups created by the

organization, for the purpose employees themselves, for
of accomplishing a specific their own sake are known
task are known as Formal as Informal Groups.
Groups.

Formation Deliberately Voluntarily

Size Large Comparatively small.

Life Depends on the type of group. Depends on the members.

Structure Well Defined Ill Defined

Importance is Position Person

given to

Relationship Professional Personal

 BASIS FOR
FORMAL GROUP INFORMAL GROUP
COMPARISON

Communication Moves in a defined direction. Stretches in all the

directions.

Characteristics of planning:

Various stages of Control:

The control function can be viewed as a five-step process:
● Establish standards,
● Measure performance,
● Compare actual performance with standards and identify any deviations,
● Determine the reason for deviations, and
● Take corrective action, if needed.

Various steps in planning process:

Setting Objectives

● This is the primary step in the process of planning which specifies the
objective of an organisation, i.e. what an organisation wants to achieve.
● The planning process begins with the setting of objectives.
● Objectives are end results which the management wants to achieve by its
operations.
● Objectives are specific and are measurable in terms of units.
● Objectives are set for the organisation as a whole for all departments, and
then departments set their own objectives within the framework of
organisational objectives.
Example:
A mobile phone company sets the objective to sell 2,00,000 units next year, which is
double the current sales.

Developing Planning Premises

● Planning is essentially focused on the future, and there are certain events
which are expected to affect the policy formation.
● Such events are external in nature and affect the planning adversely if
ignored.
● Their understanding and fair assessment are necessary for effective planning.
● Such events are the assumptions on the basis of which plans are drawn and
are known as planning premises.
Example:

The mobile phone company has set the objective of 2,00,000 units sale on the basis of
forecast done on the premises of favourable Government policies towards
digitisation of transactions.

Identifying Alternative Courses of Action

● Once objectives are set, assumptions are made.

● Then the next step is to act upon them.
● There may be many ways to act and achieve objectives.
● All the alternative courses of action should be identified.
Example:

The mobile company has many alternatives like reducing price, increasing
advertising and promotion, after sale service etc.

Evaluating Alternative Course of Action

● In this step, the positive and negative aspects of each alternative need to be
evaluated in the light of objectives to be achieved.
● Every alternative is evaluated in terms of lower cost, lower risks, and higher
returns, within the planning premises and within the availability of capital.
Example:

The mobile phone company will evaluate all the alternatives and check its pros and
cons.

Selecting One Best Alternative

● The best plan, which is the most profitable plan and with minimum negative
effects, is adopted and implemented.
● In such cases, the manager’s experience and judgement play an important
role in selecting the best alternative.
Example:

Mobile phone company selects more T.V advertisements and online marketing with
great after sales service.

Implementing the Plan

● This is the step where other managerial functions come into the picture.
● This step is concerned with “DOING WHAT IS REQUIRED”.
● In this step, managers communicate the plan to the employees clearly to help
convert the plans into action.
● This step involves allocating the resources, organising for labour and
purchase of machinery.
Example:

Mobile phone company hires salesmen on a large scale, creates T.V advertisement,
starts online marketing activities and sets up service workshops.

Follow Up Action

● Monitoring the plan constantly and taking feedback at regular intervals is

called follow-up.
● Monitoring of plans is very important to ensure that the plans are being
implemented according to the schedule.
● Regular checks and comparisons of the results with set standards are done to
ensure that objectives are achieved.
Example:

A proper feedback mechanism was developed by the mobile phone company

throughout its branches so that the actual customer response, revenue collection,
employee response, etc. could be known.

Matrix
Organization Structure:

A hybrid organizational structure in which individuals from different functional

areas are assigned to work on a specific project or task.
A matrix organization is a company structure where teams report to multiple
leaders. The matrix design keeps open communication between teams and can help
companies create more innovative products and services. Using this structure
prevents teams from needing to realign every time a new project begins

UNIT-3

Organizational Behavior definition :

“Organisation Behaviour is concerned with the study of what people do in an
organisation and how that behaviour affects the performance of the organisation.”
(Robbins)

Various disciplines contributing to Organizational Behaviour:

Disciplines contributing to OB. Are:

- PSYCHOLOGY
- SOCIOLOGY
- ANTHROPOLOGY
- POLITICAL SCIENCE
- ECONOMICS
- MEDICAL SCIENCES.

PSYCHOLOGY
It is a subject of study of the mind and its functions.
O.B. is a specialized branch of Psychology. Many topics from pure Psychology have
been taken to O.B. like -
- Motivation
- Work stress
– Personality
- Job satisfaction
- Attitude
- Performance Appraisal
– Communication
- Leadership
- Training
- Employee selection ...

SOCIOLOGY
It is the study of large group, behavior of large group and large communities and
societies
It contributes areas like
• Group Dynamics
• Morale
• Roles
• Power
• Conflict
ANTHROPOLOGY
It is the study of evolution of mankind - history of man over a very long period
Its contribution to OB -
- Leadership
- Sentiments
- Effect of value system
- Interaction
Political Science
It is a governance by the state through political parties
It has contributed in areas like
- Power
- Emotional aspects of organization
- Authority
- Conflict
– Clique (group)
ECONOMICS
• It is the study of application of resources to satisfy Human wants. Economics
Laws on production, consumption etc are very relevant for Organization.
• It has contributed in areas like
- labor Economics
- Satisfaction with respect to workers
- Interaction of people with finance ...
MEDICAL SCIENCES.
It contributes to areas like
• - Health
• - Welfare
• - Safety
• - Stress ...
Nature and scope of OB in detail:
1. It studies Individuals.
2. It studies Groups.
3. It studies Organization itself.
4. It studies Different Levels of people in the Organization.
5. It studies real life situation
6. It studies Dynamic Situation
7. It is both Art and Science.
8. It is Interdisciplinary study.
9. It aids Rational study
- not a Black magic,
- not a Rule of Thumb,
- not an Unscientific rule.
10. Studies both formal and informal relationships in practical situations.
11. Oriented towards objectives - both Individual and Organizational objective.
12. It is developmental in Nature.

Definition of Perception

⮚ Perception may be defined as the process of selecting, organizing and

interpreting or attaching meaning to events happening in environment.
⮚ Perception is a process by which individuals organise and interpret their
sensory impressions in order to give meaning to their environment.
⮚ Perception is the mental process- we use to select, organize and evaluate
stimuli from the external environment to mold it into a meaningful
experience.
Features of Perception

⮚ Perception is the intellectual Process - through which a person selects the

data from the environment, organizes it, & obtains meaning from it.
⮚ Perception is distinct from Sensation - S - physical process of obtaining data
from environment, known as sensation.
⮚ P is the basic psychological process - the manner in which a person perceives
the environment affects his behavior. Thus people's actions, emotions,
thoughts or feelings are trigged by the perception of the surroundings.
 ⮚ P being an intellectual and psychological process, becomes a subjective
process - different people may perceive the same environmental event
differently based on what particular aspect of the situation they choose to
absorb, how they organize this information & the manner in which they
interpret the situation.

• Thus, the subjectively perceived ' reality' in any given setting may be
different for different people.

Perception Process

1. Stimuli (perceptional input):

⮚ Everything which contributes to the occurrence of events can be termed as

stimuli (inputs).
⮚ Stimuli may be in the form of - People, Objects, Events, Information,
Conversation.
⮚ The perceptual process can't start in the absence of stimuli.
2. Receiving Stimuli:
 ⮚ The actual perception process starts with the receipt of the stimuli or data
from various sources.
⮚ Most data is received through the 5 organs.
⮚ Ears - hear them, Nose - Smells, Tongue - Tastes, Body - Touches, Eye -
Sight.
⮚ Reception of Stimuli is the Physiological aspect of perception process.
3. Selection of Stimuli:

⮚ After receiving the stimuli or data, some are selected for further
processing while others are screened out because it is not possible for a
person to select all stimuli for processing to attach meaning which he
receives from the environment.
⮚ Two factors affect the selection of stimuli for processing.
⮚ (i) External factors: are intensity of stimuli, its size, contrast,
movement, repetition, familiarity, strange characteristics, etc. Such
features of stimuli attracts the attention of perceiver more when compared
to the other stimuli.
⮚ (ii) Internal factors (Or factors related to the perceiver): is the
perceiver’s self-acceptance. Such factors of the perceiver influence his
interest or indifference in the object being received for perception.
4. Organization of stimuli

⮚ After selecting the data, they are organized to make sense out of them.
Such organization of stimuli may take the form of figure – ground,
grouping, simplification & closure.
⮚ Figure – ground - in perceiving stimuli there is a tendency to keep
certain phenomena in focus & other in background. More attention is
paid to phenomena which have been kept as figure & less attention to
phenomena kept in background.
⮚ eg: while reading a book letters presented – figure page on which it is
presented – background perception may change if certain stimuli are
changed form figure to background.
 ⮚ eg : in certain org, good performance (a figure promotion in normal
case) may be taken as background & maintaining good relations with
boss for promotion (ground in general cases) may be taken as figure.
Grouping- In grouping, the perceiver groups the various stimuli on the basis of
their Similarity & Proximity. Thus all such stimuli which have been grouped
together are likely to be perceived as having same characteristics.

Example
All the workers having same opinion about the management because -
grouping on the basis of similarity, (or) All the persons coming from the
same place
may be perceived as having same characteristics because of grouping on
the basis of proximity.

Simplification -
Whenever people are over loaded with information, they try to simplify it
to make it more meaningful and understandable. In simplification process,
the perceiver subtracts less salient information & concentrates on
important one.
Simplification helps to make things more understandable because the
perceiver has been able to reduce the complexity by eliminating some of
the things which are less important.

Closure
When faced with incomplete information, people fill up the Gaps
themselves to make the information meaningful. This may be done on the
basis of past experience, past data or hunches.

EXAMPLE In advt-alphabets -- ? --- to fill up by people.

Interpretations
 Perceptual inputs that have been organized will have to be interpreted by
the
perceiver so that he can sense and extract some meaning of what is going
on in the situation. People interpret the meaning of what they have
selectively perceived and organized in terms of their own assumptions of
people, things, situations.They also become judgmental as well and tend to
interpret things as good or bad, beautiful or ugly and so on which are quite
relative terms.

In such process there are chances of misinterpretation. Interpretation of

stimuli is affected by -
● characteristics of stimuli,
● situations under which perception takes place,
● characteristics of the perceiver.
These factor also affect their selection for perception & also the
interpretation
similarly the physical, social & organizational stimuli in which an object is
perceived also affect the interpretation.

5.Action -
The last phase of the perceptual process is that of acting in relation to
what has been perceived.This is the output aspect of perception
process.The action may be covert, or overt.
Covert – the covert actions may be in the form of change in attitude,
opinions, feelings , values & impression formation resulting form the
perceptual input & through puts.
Overt – the overt action may be in the form of behavior easily visible