MTTM 1

Shrichakradhar.
com MTTM-001
MTTM-001: Management Functions and Behaviour In Tourism

Guess Paper-I
Q. What do you understand by planning ? Mention the basic steps involved in designing a control process.
Ans. Planning is most basic and pervasive process involved in managing. It means deciding in advance what
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actions to take and when and how to take them. Planning is needed, firstly for committing and allocating the
organisation’s limited resources towards achieving its objectives in the best possible manner and, secondly for
anticipating the future opportunities and problems. Planning is putting down in black and white the actions
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which a manager intends to take. Each manager is involved in planning though the scope and character may
vary with the level of the manager. At the top, the managing director is involved in planning for the
company’s diversification over the next five years. The middle level marketing manager undertakes planning
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to increase the sale of products. The field sales supervisor plans the day’s activities of his or her team of sales
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officers.
Planning implies:
i) Making choices: There can be any number of diversification opportunities to choose from. It is up to the
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management to choose the alternative which offers maximum potential for growth and profitability.
ii) Committing resources: A marketing manager who increases the amount earmarked for television
promotion, and adds four more salesmen in each territory with the objective of achieving higher sales, is
committing scarce resources (money, people, etc. ) which then are not available for any other use.
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iii) A time horizon: Planning always refers to a specific time limit within which it must be completed. The
field supervisor plans movements of each of the salesgirls on a daily basis. The marketing manager plans
promotion effort for the next three months, six month or twelve months. The top management may have
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a time perspective which may extend anywhere between 5 and 15 years. Irrespective of the activity or
level at which plans may be drawn, the critical factors is that they focus on objectives and are directed
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towards their achievement. They serve to channelize the energies of the company in the desired
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direction. The future is always uncertain and therefore risky. Stepping out of home on a cloudy day with
an umbrella in hand is the way I cover my risk ( of getting wet) against the anticipated but uncertain
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future rain. It may or may not rain but I am prepared. The umbrella is representative of the plan which a
company draws up in anticipation and preparation of the future opportunities and problems. Planning
implies not simply reacting to events but anticipating and preparing for them. Planning ensures the most
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efficient use of scarce resources. Planning implies coordinated, inter-related effort towards achievement
of the common objective rather than uncoordinated haphazard, arbitrary, overlapping action towards
individual objectives. Joint, or coordinated effort implies pooling of resources and their optimum
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allocation without any wastage.

Planning is the only way by which an organisation can exercise control to check that it is on the desired
course of action. Only when there are objectives to work for, and plans to achieve these objectives, can
the manager exercise control to measure the performance of the organisation, department or
subordinates. An organisation without plans and controls is like a raft marooned on high seas with no
maps and compass to show the direction and no steering to manoeuvre with. Planning is needed at
every level of management and in every activity and department of the company. Annual sales targets,
cash-flow statements, budgets of each branch, individual career development blueprint, assembly line
operations, scheduling of production over a number of machines in the factory are examples of plans.
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Shrichakradhar. com MTTM-001
THE CONTROL PROCESS: The control process involves three steps: a) establishing standards, b) measuring
performance against these standards, and (c) reinforcing success / correcting deviations.
A. Establishing Standards: Standards mean criteria of performance. Standards may be of many kinds and
include verifiable goals set in qualitative or quantitative terms. An organisation can establish standards
in such areas as
• Profitability
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• Productivity
• Market Share
• Worker Performance
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• Innovation
• Social Responsibility
• Standards can be based on past performance, managerial judgment or scientific analysis.
Standards are used to measure performance and judge success or failure
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B. Measuring of Performance: Essentially, it is a comparison between “what is” and “what should be”
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the performance. Ideally, measurement should be done on a forward-looking basis to predict
probable deviations from standards rather than merely be used as a post mortem exercise. To the
extent prediction becomes possible, control becomes effective because appropriate actions can be
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taken well in advance of their actual occurrence.
C. Reinforcing Success / Correcting Deviations: When plans and organisation structures are clear, it is
easy to reinforce success and avoid failures. When deviations are noticed or apprehended based on
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warning signs, the reasons can be analysed and appropriate corrective actions taken promptly.
Robert J Meckler’s definition of Control helps us in determining the necessary steps of the control process.
According to him, "Management control is a systemic effort to set performance standards with planning
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objectives, to":
• design information feedback systems,
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• compare actual performance with these pre-determined standards,

• determine whether there are any deviations and to measure their significance, and . take any
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corrective action required to assure that all corporate resources are being used in the most effective
and efficient way possible for achieving corporate objectives.
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This definition, thus mentions four steps to be followed in the controlling process:
• establishing performance standards,
• measuring performance,
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• comparing performance with standards, i. e. interpreting results, and

• taking corrective action.
1)The first step in any control process is establishing standards: Standard is a desired or expected event
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which should grow out of organisational objectives. Standard may be . defined as a unit of measurement
which can be used to evaluate performance. Actually with the setting of standards the process of control
begins. Standards may be both I quantitative and qualitative. Three common types of standards are:
• Physical standards which include quantity of product, number of customers, clients, quality of the
product, etc.
• Monetary standards which include selling costs, material costs, gross profit, net profit, etc.
• Time standards refer to the speed and deadline within which the job is to be performed or completed.
Depending on the nature of the task and considering other related issues the management sets the standard
for a task. In setting standards you should keep in mind that they are valid, acceptable and clearly
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understandable to all concerned. The standards should be stated clearly in measurable terms with a time
bound approach. For example, upgrading the skills of a guide would be a vague objective unless it is specified
what upgradation means and by what time it has to be achieved. In a service industry like tourism,
measurements may include the time of the service a customer has to wait for.
2) After setting the standard the second step is the measuring or monitoring of performance: It is a
continuous ongoing process done with the help of an appropriate mechanism. Systematic flow of information
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is necessary to keep effective control over performance and this necessitates timely availability of accurate
reports. For this you must design simple reporting systems as per the requirement of the activity. This will
help you in detecting problems and accordingly make amends to work as per the plan.
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3) Next step in the control process is to compare the performance that the managers have been monitoring
with the standards established at the first stage. R. C. Davis identifies four phases in the comparison;
• receiving the raw data,
• accumulation, classification and recording of this information,
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• periodic evaluation of completed action, and .
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• reporting the status of accomplishment to higher line of authority.
4) After making a comparative assessment of established standards and performance the important step is
to take appropriate action. Corrective action is essential to ensure that a in future the desired objective is
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achieved. This may involve alterations, changes, rethinking or devising and employing better methods.
The important point is that as a manager you must consider various alternatives and depending on the
requirement take proper action. Only identifying failures is of no use.
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Information seeking, information sharing and information analysis are vital in the control process. For
seeking information you can:
• Depend on personal observations, i. e. , going to the area of activities and having a first-hand
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experience about the quality of services, service timings and attitudes of those providing services.
• Ask for oral reports from employees or interview customers regarding the quality of services,
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improvements, suggestions, complaints etc.

• Ask for written reports from employees or feedback forms from customers. For this appropriate
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formats have to be devised as per requirements.

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Q. As a manager of a Five Star Hotel how would you implement a Management by Objectives (MBO)
process and how will you ensure that an MBO works effectively ?
Ans.
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IMPLEMENTATION OF MBO: The MBO process seems apparently simple but to practice it requires great
analytical skill and clarity of purpose on the part of the management. MBO is not a managerial technique
which can simply be introduced at a moment's notice. MBO involves people who have their own fixed ideas,
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attitudes, values and perception which can make the MBO implementation a very complex affair. The
prerequisites of a successful MBO are:
• Evaluation
• Preparation
• Top management support
• Time horizon and
• Proper entry point
Evaluation: The first step is to evaluate what you expect from MBO. The most commonly made mistake is
that MBO is visualised either very narrowly as a just another appraisal system or as merely another way of
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tackling the problem of writing job descriptions or it is visualised as a solution to all problems. This leads to
unrealistic expectation from MBO. To avoid this, it is best, first of all, to evaluate the existing organisational
performance, culture, management style, systems of planning, controlling and monitoring and then decide
upon the specific needs which can be fulfilled by MBO. It must be remembered that MBO is a powerful tool
which can be used for improving the entire organisational performance, provided there is clarity about the
expected results.
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Preparation: The next step is to prepare the people for accepting MBO. Human nature always resists change.
The best way to overcome this resistance is to disseminate maximum information about M130 and educate the
concerned key people about its expected benefits. If possible, all the managers should be given a formal
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training exposure to MBO. This stage of preparation is very critical as MBO can be successful only if people
willingly accept and practice it.
Top Management Support: For MBO to be successfully implemented it is important that it has the full
backing and support of the top management. In the process of implementation, there may be some redefining
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of objectives which in turn may lead to jobs being redefined, restructured or even totally scrapped in some
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cases. This is bound to lead to conflicts and friction and top management intervention may often be required
to soothe disturbed emotions and find practical solutions. Top management needs to exhibit great patience,
understanding, and perseverance to see the MBO through its teething stage.
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Time Horizon: MBO means change which implies upheaval and disturbances. Just as some people can accept
and adapt to change quicker than others; similarly one organisation' s adaptability to change is different from
that of another. Depending on its personality and attitude towards change (whether it is resistant or highly
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flexible) each organisation has to decide upon the rate of change which it can withstand. These are the issues
best decided on evaluation of specific characteristics. There can be no hard and fast rule except that sufficient
time should be allowed to give MBO a fair trial.
Entry Point: If MBO is being introduced in phases, then the best point for beginning its implementation is the
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top management level. But the top management must really be serious about it and not merely profess to
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practice without actually doing so. Starting at the top has the advantages of setting an example for the rest of
the people and the relatively small number of people involved.
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SOME STRATEGIES TO MAKE MANAGEMENT BY OBJECTIVES WORK EFFECTIVE

1. Support from all: Executives may be keen to insert an Management by Objectives program into the
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organization, but it will only work if every member of management is on board with the plan. It’s not
only management that have to buy in, though, with every single employee needing to understand what is
needed to make it work and then cooperating every step of the way. They really have to feel that
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Management by Objectives is a program that benefits all as opposed to something that they are being
force fed.
2. Acceptance of Management by Objectives program by managers: Before the MBO program is
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implemented, managers must accept in their minds that is it a program that can deliver exactly what it
promises. If they have that belief, they will be more inclined to put in the effort to make it work, and will
make Management by Objectives effective. If instead they are forced to accept the new program, they will
have difficulty seeing any value in it, which in turn is likely to affect their level of involvement.
3. Training of managers: Since Management by Objectives differs from any other management style,
existing bosses must be brought up to date with the philosophy of Management by Objectives. They need
to understand how the principles of MBO can be integrated into the current company philosophy. This
training is a crucial part of the process, especially since it’s the manager and employees that are going to
be responsible for setting the majority of goals and objectives.
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4. Organizational commitment: Management by Objectives is not a method that should simply be adopted
in order to be current. It relies on everyone playing their part and switching their mindset from planning
to work to planning on goal achievement. Koontz put it best when he said, “An effective program of
managing by objective must be woven into an entire pattern and style of managing. It cannot work as a
separate technique standing alone. ”
5. Allocation of adequate time and resources: Even the best planned Management by Objectives program
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requires a minimum of 3 to 5 years before it will yield real positive results. What that means is that
managers and employees should not employ Management by Objectives thinking that it will be a quick
fix solution. It takes time and the correct resources for any Management by Objectives program to work.
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Provision of uninterrupted information feedback: Everyone, from the top on down, should have access to
regular reports in order to see how goal performance is progressing. Mangers should use that information to
ensure that their employees have all the help and resources they need in order to succeed. They should also
be sure to compliment and encourage when those goals are being met, as that is the easiest way to maintain a
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high level of motivation.
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Q. Discuss the external factors that influence the choice of an organizational structure. Give examples.
Ans. Impact of Environment: The first factor affecting the design of your organisation structure is the
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environment. An organisation is continuously interacting with its environment in terms of drawing inputs
from it and providing it its outputs. All organisations operate within an environment which comprises
economic, social, cultural, political and legal subsystems. A change in any of these sub-systems may force you
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to change the design of your structure. Change in Government regulations regarding foreign equity
participation in India made it imperative for the most foreign owned companies to dilute their holdings and
become more national in character. Increasing awareness about personal rights and social pressure on
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maintaining the natural state of environment have forced many companies to set up Personnel Welfare
Departments and instal expensive equipment to neutralise the toxic effluents generated in their
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manufacturing process. You might have-noticed that banks have instituted a process by which public
complaints can be tackled at the highest level. Some of the bank managers and chairmen even set aside
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specific timings when they give a personal hearing to individual grievances. Business organisation are very
much in the public eye today. Generally speaking, the more responsive your organisation is to the changes in
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the environment, the more favourable will be its public image and greater the chances of its survival and
success. You have not only to ensure that appropriate changes are made, but equally important these changes
must be perceived by both the public and the Government.
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Impact of Technology: The second factor affecting the structure of your organisation is the technology that
you have adopted. To begin with, each pair of shoes was made by a single cobbler who. probably spent four
to five days on the entire process. With the concept of specialisation and division of work, organisations,
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instead of being designed around individual craftsmen, were structured on the basis of different people doing
only a specialised part of the entire process of shoe-making. This concept was further refined with the
introduction of automation and assembly lines. Now with the introduction of computerisation and robots,
new structural designs are once again emerging. Entire plants are manned by a single operator who controls
the operations through computers. Major human inputs are needed in designing computer controls and
software rather than in performing repetitive jobs. These technological changes affect not only the large firms
but also the smaller ones. In India, in a large number of medium and small scale companies, simple routine
functions such as preparing payroll, invoicing and ledger maintenance have been computerised. Such small
changes also necessitate redefining jobs and redesigning existing departments to suit the new technological
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process. Today the greatest impact of technology is on the manner in which people collect, receive and use
information. In many companies full-fledged Management Information System departments have been set up
in response to the explosion in information technology.
Impact of Psychosocial Characteristics: The changing psychosocial characteristics of the workers is the third
factor impinging upon the design of the organisation structure. Greater demand for leisure time led to the
introduction of the five, and in some places, even the four-day week. Our country has also recently adopted a
five-day week. Greater awareness about worker rights and use of more militant means to earn those rights
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have led to the widespread formation of trade unions in almost every organisation. Some companies have had
to redesign their structure in order to give a formal recognition to the unions. The three factors that we have
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discussed so far are external to the organisation and its management. However, there are some attitudes and
values of the management which have a critical bearing on the structure of an organisation. Most important of
these are the management's attitude towards the issues of decentralization and delegation of authority and
the role and function of line and staff personnel. Also affecting the organisation structure are the scalar
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principle and span of control. For example:- As a manager, it is your job to design a structure that will best
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suit the specific requirements of your organisation. Designing an organisation structure is a continuous
process. What seems to be the ideal design today may tomorrow prove to be totally ineffective. It is your task
as a manager to be continually improving the structure of your organisation. Any change in factors which
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impinge upon the design of an organisation will necessitate a change in the structure to suit the new
conditions.
Q. Explain the needs that the groups help us to satisfy.

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Ans.
i) Safety and security needs: Do you remember, the first question asking you as to how old you were when
you first joined a group? The answer is, perhaps you joined in a group in your pre-school years in a nursery
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class room. You learned to protect yourself by being in a group. In a class, a teacher asks the kids who broke
the toy and seldom gets an answer. All the kids keep quite. Although young, they protect their members by
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not disclosing anybody’s name or pointing out at any one in a group. Even in emergency activities of putting
off fire, the fire fighters depend on each other for protection. This is a case where individuals doing hazardous
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jobs derive physiological and psychological support from the groups. They need to be physically together
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even if they know that this may increase their collective danger.
This helps them to be more confident and able to perform well, less fearful and more responsible to carry out
their duties. Hence, safety and security are offered by a group.
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ii) Relatedness or belongingness needs

You might have noticed many persons in your working life, who are very isolated or who prefer to be absent
from wok most of the times or an organisation having high turnover of employees or frequent change of
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employees. Studies show, such phenomena occur where people are unable to belong to a group. This is
because of the fact that all of us are social beings, and belonging to or relating to groups, satisfies a number of
social needs. We get emotional support from a group, which is particularly helpful at times of stress. In
normal situations, affiliation to a group has a major influence on human behaviour in organisations. When we
are isolated from human communication and companionship, we simply lose touch with reality. A group
offers a feeling of oneness and belongingness.
iii) Esteem and growth needs: When you do a piece of work, you get a praise from others. This gives a sense
of recognition which fulfils you esteem need (being recognised) and also brings a sense of fulfilment of your
need for growth towards further achievement of good work and career prospects. A group provides you this
opportunity.
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Q. Explain the theory of Homan, Newcomb and Thaibaut & Kelly.

Ans.
1) Homans (1950) explained the basis of group formation in terms of activities, interaction and sentiments of
people. These three elements are directly related to each other. In the example of controlling a queue breaker
in the line, cited earlier, the required activities are the assigned tasks at which people work. All others knew
their turn and how to exercise it especially, with a sudden change of situation created by the queue breaker.
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The required interaction takes place when any one person’s activity follows or is influenced by the activity of
another. In this example the person whose turn was dislocated by the queue breaker influences all other’s
activities.
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As soon as he pushes out the person (the queue breaker) or tells him not to do it, all others follow him. Hence
required interaction may be verbal (telling him not to break the queue) or non-verbal (pushing him out of the
queue). One can see the activities and the interactions. But as sentiments are the feelings or attitudes of a
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person towards others, his likes or dislikes, approval or disapproval, can only be inferred from the behaviour.
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After the activity of throwing out the queue breaker changed, the interactions also change. In the above
example, people talk to each other in a very informal way after they succeeded in throwing out the queue
breaker. These informal interactions, known as emergent interactions, change the activities into informal or
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emergent activities such as people reorganising their queue and ensuring that no other intruder comes in out
of turn.
All these activities emerge because of the sentiments or feelings of the people. You will notice that the more
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activities the people share, the more numerous will be their interactions and the stronger will be their mutual
sentiments. Therefore, in turn, with more interactions among persons, the more will be their shared activities
and sentiments. Again in turn the more sentiments the persons have for one another, the more will be their
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shared activities and interactions. Homan’s theory therefore explains the formation of group on the basis of
people’s interaction with each other. People are not only physically together, but they also solve problems,
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attain goals, facilitate coordination, reduce tension and achieve a balance. In an organisation the participants
interact with each other in this manner and tend to form into powerful groups.
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2) Newcomb (1961) came up with the balance theory of group formation which explains group formation on
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the basis of attraction of persons towards each other as they have similar attitudes towards common objects or
goals. For example, person A and B will interact and form a relationship because of their common attitudes
towards C. If A and B form a relationship or a group, they will strive to maintain a symmetrical balance
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between the attraction and the common attitudes and values. Whenever this relationship between A and B
becomes unbalanced, both will try to restore the balance. If the balance cannot be restored, then their
relationship is dissolved. Both affiliation and interaction play a significant role in balance theory.
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3) Thaibaut and Kelly (1959) talk of another theory of group formation, citing the outcome of interaction as
the basis of group formation. The outcome of a relationship should be rewarding in order to have attraction or
affiliation among the persons or members of a group. The persons derive personal and social satisfaction from
having interactions with each other.
If they incur anxiety or frustration or embarrassment or fatigue in such interactions, then that interaction
becomes a cost for them rather than a reward. Thaibaut and Kelley’s theory or group formation is known as
exchange theory of reward and cost outcomes. Affiliation, interaction and common attitudes – all play their
roles in the exchange theory.
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Q. Explain “Path-goal Leadership Theory”

Ans. Theory by House (1971) states that the leader smooth out the path towards goals and provides rewards
for achieving them. As a leader, you should understand the needs of the people and their desire to work or
behave in a way that accomplishes goals that satisfy those needs. This theory is based on a situation of the
above kind. If you know the need of the person and his or her desire to work and he or she is able to
accomplish the work, you can reward to make him or her feel happy and satisfied. In essence, you are doing
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three things; One, you are motivating the members of the group by clarifying the path to personal rewards
that result from attaining personal goals. You have thus ‘fixed’ him or her on the job and made him or her see
that his or her performance can lead to positive or negative rewards. Two, you have already made the path-
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goal clear to the member and also told him or her about what the job-requires. You need not say too many
things about the job to him or her as this may decrease the interest in the work and deter performance. Three,
you must offer the reward to the member of the group who actually accomplishes the task. Your rewards may
be a praise or increase in the pay or promotion of the member to a higher position. Your judgement about the
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desirability of the member to a higher position is crucial. Your judgement about the desirability of the
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member’s effort and the goal helps you to decide whether a reward can be given.
It is very important for the leader to know every member as a person, in order to use a style to get the best out
of the member. For example, a task-oriented leader is preferred by a highly achievement oriented member,
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whereas a person-oriented leader is preferred by a person who needs a good deal of affiliation with others.
Similarly it does good for the leader to know each situation to adjust his or her style of functioning for better
results. With a clear task on hand, members feel satisfied if the leader is supporting them. They may not show
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a lot of output, but they are satisfied. On the other hand with a less clear or more vague task on hand,
members show more output, if the leader directs them to work better. The member in this situation may not
be very satisfied. In most of the Indian work settings, it is usually observed that members are quite dependent
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on the leader or the superior. They also are quite conscious of their status, but have very little commitment to
work. Singh (1980) suggests that the leader who is task-oriented and nurtures the dependence of members on
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him is most effective in dealing with such members. He or she can get the work done in his nurturant task
style from the members of group. To a great extent, he knows characteristics of the members’ work group,
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which he utilises in making the leadership style-oriented, effective and getting the work done. From the above
discussion, it is clear that a leader is a person who has ability to persuade others to get the work done. You
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must have seen a person having the title of a leader. He or she may by very popular, but may not have the
ability of leadership. Many leaders try to become popular by agreeing with everyone, thus avoiding any kind
of conflict. Their influence on the subordinate or members of the work group may not be very lasting. There
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are leaders, who by virtue of their ability to exercise authority and power show better influence on members.
It is therefore necessary for you to understand the authority of a leader and his or her sources of power, which
help him or her to exercise influence on the subordinates.
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Guess Paper-II
Q. Explain the concept of “Johari window”.

Ans. The Johari Window is a conceptual model for studying interpersonal awareness. It was developed by
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Joseph Luft and Harry Ingham ( the name Johari combines their first names). It is a schematic model that
shows how people expose themselves to others and receive feedback from others in their interpersonal
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relationships. As shown in Figure II, the Johari Window has four parts: Arena, Blindspot, Closed and Dark.
Arena represents the “Public self” that is known to the self and others. The Blindspot area is known to others,
but not to the self. The Closed area is the “private self” which is known to the self, but not to others. The Dark
area is neither known to the self nor to others. The implication of this model is that if Arena is very small,
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there is very little free and spontaneous interaction. On the other hand, the larger the Arena, the greater the
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chance for participants in any relationship to make correct perceptual judgements about each other. This
accurate perceptual judgement helps them to develop realistic mutual expectations. Meeting these
expectations increases their level of trust and influence, and it helps them maintain a mutually satisfying
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relationship. As Arena expands, the Closed area or private self-shrinks and it becomes less necessary to hide
or deny things one knows or feels. The Blindspot takes longer to reduce because self-concept protection
mechanisms are involved. Arena can be expanded by means of self-disclosure and feedback. These two
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variables are shown as two large arrows in the figure and range from less to more. Self-disclosure means
revealing oneself to another person and sharing one’s feelings, emotions, facts and knowledge with that
individual. Self-disclosure is an act of showing respect for, and sharing intimacy with another person. Such an
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act requires trust in another person and is likely to encourage the other person to follow suit. But self-
disclosure involves both rewards and costs. Being open (more self-disclosure) offers the possibility of self-
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understanding, growth and better interpersonal adjustments. On the other hand, when we disclose ourselves
to another, we are taking the risk of being rejected, misinterpreted or short changed. However, unless
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someone takes the risk and initiates self-disclosure, the relationship will not develop. Feedback reduces the
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Blindspot area and helps us increase our self-awareness, since we often do not know how others view us. We
can guess how they see us by their reactions, but these reactions are often not clear and likely to be
misperceived. Unless we receive feedback as to how they see us, or what kind of effects our behaviours have
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on them, we are likely to be blind to their feelings and reactionsThe feedback given by others can hope to
reduce Blindspot only if it has the following characteristics
1) Intended to help the recipient.
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2) Given directly, with real feelings and based on a foundation of trust between the giver and receiver.
3) Descriptive rather than evaluative.
4) Specific rather than general, with good, clear and preferably recent examples.
5) Given at a time when the recipient appears to be in a condition of readiness to accept it.
6) Checked with others to be sure that they support its validity.
7) Includes only those things that the recipient might be expected to be able to do something about.
8) Does not include more than the recipient can handle at any particular time.
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Interpersonal awareness can be increased in several ways. When you feel that something is wrong with a
relationship but the problem area cannot be identified, you may take one of the following actions:
1) Ask the other party how the relationship is working out for him or her (i. e. , solicit feedback). Take the
initiative in expressing your concerns and feelings (i. e. , initiate self-disclosure) and listen to the feedback
with empathy and without any attempt to defend. The feedback obtained may not be satisfactory but at least
opens the door for improvement.
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2) Ask yourself whether you are fulfilling the psychological contract. Take stock of your perceptions of
mutual expectation and see if each of you is meeting these expectations . Keeping in mind the characteristics
of effective feedback, communicate your concerns to your partner.
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Q. List out the various steps of interpersonal relationship.
Ans. The four stages of developing interpersonal relationship.
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• Forming first impressions
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• Developing mutual expectations
• Honouring psychological contracts
• Developing trust and influence
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1) Forming First Impressions -First impressions, though may be inaccurate, are lasting impressions. This is
because they influence the way in which people see subsequent data about the perceived object or person. So,
whether or not first impressions are correct, it is important for us to make favourable impressions on other
people. Initial impressions do not guarantee long-term relationship, but they are essential for entering into
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enduring relationships with others. Many studies have shown that much of the ground-work for subsequent
relationships with others is laid in the very first stage of socialisation and this is very important in service
industry. In all front line operations (e. g. guides, escorts, receptionist etc. ) the first impression on customer is
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vital. The first stage of socialisation has a significant implication for those who are looking for jobs. When an
organisation searches for a new manager, it will probably contact between 10 to 40 potential candidates. Of
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these, it will probably interview between three to eight people, but only one will be selected for the position.
The initial selection is probably based on substantive qualities such as educational achievement, job
h
experience and specialisation, reference, etc. as described in the resume. But the next selection most likely
results from the impression the candidates make during the job interview. Remember that in forming first
ic
impressions, your non-verbal behaviour plays as important a role as your verbal behaviour. You will
appreciate that the body-language associated with different “ego states” (like Nurturing Parent, Adult,
hr
Adapted Child and Natural Child ) play a very important part in the process of exchange of positive “strokes”
to each other.
2) Developing Mutual Expectations- When people are mutually impressed, they are more likely to enter into
S
a long-term relationship. When this happens, they develop certain expectations about each other. In work
organisations, managers may expect new employees to be competent, productive, reliable and loyal and to
conform to organisational norms. New employees, on the other hand, expect their superiors to be fair,
supportive and considerate of their needs. Many of these expectations are unwritten and unspoken. People
usually do not have clear ideas about what they expect from other people or from organisations, especially at
the beginning of a relationship. Initial expectations are usually very general and tend to be unrealistic.
Unrealistic expectations often develop because people promise more than they can deliver at the initial stage
in order to impress the other party. Parties must go beyond the stage of establishing general expectations in
order to determine whether or not the relationship is satisfactory. Unless they work out more realistic
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expectations, the relationship becomes superficial and less meaningful. The process of working out mutual
expectations involves a series of exchanges and adjustment to each other’s expectations. It also helps
determine the quality or levels of customer care in tourism organisations. A set of mutual expectations that is
worked out and understood by the parties is called a psychological contract; it governs the relationships
between them in day-to-day interactions. Although this contract is neither formally stated nor legally binding,
it serves as the basis for evaluating the quality of the relationship.
m
3) Honouring Psychological Contracts: An effective interpersonal or work relationship cannot develop and
be maintained unless the participants are willing to honour their psychological contracts. Each party expects
the other to be faithful in the relationship, not to take arbitrary actions and to be honest with him or her. There
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will, of course, be times when some of these expectations cannot be fully satisfied. But when this happens,
each party must be reassured that the other is acting in good faith. What do people expect from others in
working relationships ? In his study on the development of trust influence and expectations, J. Gabarro (1978)
pointed out that executives expected three things from their colleagues: reliable character, professional
.
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competence and good judgement.
The character-based expectations include:
1. Integrity: Maintaining personal and moral honesty in the relationship.
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2. Motive: Having good intentions and acting in good faith.
3. Consistency: Showing consistency in behaviour.
4. Openness: Levelling and being honest with another person.
5. Discretion: Maintaining confidence
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Each of us has a minimum acceptable level of satisfaction. If the actual fulfilment of expectations is below that
level, the situation will be viewed as a violation of the contract. When this happens the affected member will
send out signals of dissatisfaction in the form of joking, complaining or showing anger (sometimes through
k
withdrawal). If these signals are received and honoured by the other person, the relationship can be restored
or the contract may be renegotiated. Otherwise, the association will suffer chronic discontent, strife, alienation
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and eventual termination.

h
4) Developing Trust and Influence: The result of meeting the psychological contract is an increased level of
trust and influence. When the parties to the contract are able to meet their mutual expectations, the
ic
relationship produces mutual trust and favourable sentiments. The more satisfactory the association becomes,
the greater the influence the parties have on each other. Since the relationship is fulfilling, the parties will
continually rely on it to satisfy their needs. This dependency permits them to exert influence on each other.
hr
The increased level of influence enhances each party’s ability to affect the behaviour and thinking of the other.
When a person is able to influence others, the person becomes more effective in performing a task. The
person’s effectiveness is especially increased when the task requires a high degree of interaction with other
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people, for the influential person is capable of enlisting the necessary support and cooperation from others.
Q. Explain the factors Influencing centralisation, decentralisation and coordination.

Ans. Centralisation and decentralisation are extensions of delegation. Delegation refers mainly to
entrustment of responsibility and authority from one person to another. Down ward transfer of responsibility
and authority at individual level is referred to as delegation and when the same is done organisation-wide in
a systematic way it is known as decentralisation. Decentralisation refers to systematic delegation of authority
in an organisation. An organisation is considered centralised to the degree that authority is not delegated, but
concentrated at higher levels of management. In juxtaposition, to the degree that authority is delegated, an
11
organisation is considered decentralised. As Henry Fayol puts it, “Everything that goes to increase the
importance of the subordinate’s role is decentralisation, everything which goes to reduce it is centralisation”.
The terms centralisation and decentralisation are meaningful only in a relative sense. No organisation can
operate on a completely decentralised basis since all authority to make decisions would rest at the lowest
managerial levels and make it difficult to achieve coordination. Similarly, except very small firms, no
organisation can be completely centralised.
m
Factors Influencing Centralisation: An organisation or a manager needs to have some reserve authority to
integrate the efforts in an organisation and achieve the desired degree of coordination and control required to
accomplish the specific goals. Centralisation also facilitates personal leadership when the company is small, to
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provide for integration and uniformity of action, and to handle emergencies.
Factors Influencing Decentralisation: Decentralisation becomes important and imperative when an
organisation grows bigger. The main purpose of decentralisation is to ease the burden of top executives. The
.
warning signals that point to a need for decentralisation can be had from the problems in planning and
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control of operations, neglect of proactive strategies in preference to routine fire-fighting operations,
proliferation of personal staff around top executives and mushrooming of committees. Decentralisation
facilitates diversification and visualisation and is in fact a necessary accompaniment, if not a prerequisite.
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Decentralisation also encourages and motivates managers towards better performance because it affords them
opportunities to take more important decisions and gives them the flexibility and autonomy in their
functioning.
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Factors Influencing Coordination: Any organisation will have certain objectives. People are grouped in an
organisation, usually, into separate departments such as production, finance, marketing, personnel, etc. Each
department is allocated different tasks. One deals with production of goods and another deals with their
k
distribution. One department may plan, a second may develop new products and a third carries out actual
production. There are a number of service functions such as finance, maintenance, materials, personnel, etc. ,
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each with a different task, though all are collectively directed to accomplish the organisational goals. The
process of internal specialisation and task differentiation grows with the overall size of the organisation. Over
h
the years, modern organisations acquired centrifugal tendencies, with individuals and departments straining
ic
to pursue different paths toward functional autonomy. As a sequel, loyalty of managers today is generally
more toward their own specialisation or department than to the organisation. Within the departments there
may be a high degree of homogeneity and commitment to the functional tasks but the more such
hr
homogeneity and commitment the greater the problems in achieving integration between and among
departments. Such problems accumulate and aggravate in situations where allocation of different objectives,
targets and resources to departments causes perceptual difficulties and misunderstanding. Sometimes the
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reactive approaches of top management may reinforce the centrifugal tendencies and quest for functional
autonomy than promote what is known in current management literature as “superordinate goals” that
promote and preserve awareness of an overriding organisational objective.
For example, in one organisation the Chairman of a company issued directives to plant managements that
they should stop overtime payments with immediate effect. Three months later, when the Chairman noticed
that overtime is still being paid in some departments he issued another directive, this time to the finance
department, not to make overtime payments even if the time managers authorise such payments. This new
directive strained the relations between finance and production departments.
12
Q. Steps of formulating a plan.

Ans. 1) Perception of Opportunity- The first step for you to take while planning is to be aware of the
opportunities. As you have studied earlier, plans determine a course of action to be adopted ‘today’ in order
to obtain the desired results ‘tomorrow’. In order that planning is regarded as effective, it must anticipate and
meet the conditions as they develop in future. Forecasting, therefore, is a prerequisite to planning which
simply stated, means making an intelligent estimate of the conditions that will exist during the plan period.
For example, a demand forecast, which shows the level of demand of a particular product or service over a
m
period of time is the first step towards production and sales planning in an enterprise. Quite often existing
problems themselves induce managers to search for opportunities. A hotel Manager confronted with the
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problem of low occupancy and falling profit levels will be driven to seek new opportunities. Planning
requires realistic diagnosis of opportunities.
2) Establishment of Goals- The second step for you is to establish goals which are to be achieved during the
specified period. This implies the establishment of goals for the whole enterprise as also for each of its sub-
.
units. Whatever the goal − profits, sales, market share− it is better if it is measurable because later you will use
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these goals to evaluate the performance of the unit or its managers. Various kinds of budgets and cost
standards provide a means of establishing the standards.
3) Appraisal of Planning- Premises refer to the factors in the environment that affect the achievement of
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goals. Government policy is one of those factors which can have significant impact either favourable or
unfavourable on any plan formulated by an enterprise. Planning in any organisation rests on several
premises, in other words, on assumption about the expected environment conditioning the plan. Obviously a
change in any one or more assumed conditions will necessitate an alteration in the plans. Such assumptions
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relate to factors which may affect the plans either from within the enterprise or from outside. Accordingly,
planning premises may be grouped as external or internal. A brief description of some of the factors that
influence the formulation of the plan by an enterprise will follow later.
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4) Explore and Determine- Action Paths The final step in the planning function is to explore and evaluate
alternative plans of action, and determine a specific action plan. Once the goals have been established and the
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factor or factors affecting the plans taken care of, actual action plan in the form of programmes and budgets
are formulated.
h
A programmes shows:
ic
A. major steps required to reach an objective,

B. organisational unit or person responsible for each step, and
C. sequence and timing of each step.
hr
A programme may be accompanied by a budget which indicates the financial resources allocated by the
organisation for the implementation of the plan. Actually in order to achieve the overall goals of the
organisation, a number of activities will have to be performed, each activity having a separate programme
S
and separate budget within the overall programme and budget. The system under which budgets are used for
purposes of planning is known as the Budgetary Planning System.
Q Discuss the communication process.

Ans. The most simple model of the communication process can be :
Sender -------------------------------------- Message ------------------------------------ Receiver
The model indicates the essential elements of communication, viz. , the sender and the receiver, and the
message that is exchanged between them. If any one of the three elements is missing, communication does not
take place. However, the process of communication is a much more complex phenomenon consisting of at
least five elements which are subject to various influences. The model can be put as follows :
13
m
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.
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We shall briefly see what the various elements of this model mean.
Source: In this model the first element is the source of the communication from where the communication
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originates. The source or sender can be a person, a number of persons, or even a machine like a satellite or
computer. The sender initiates communication because he or she has some need, thought, idea or information
that he or she wishes to convey to the other person, persons or machine. If, for example, an accidental fire has
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broken out in a part of Hotel, the security officer (source) will need to convey the message immediately to the
guests (receiver). Fire alarm (machine) will do the same in place of the security officer.
Encoding Message: The next element in the process is that of encoding the information to be transmitted.
k
Encoding enables the thoughts to be put in the form of symbols. Normally language provides the symbols
that are used in the transmission of thoughts to another person. However, language is not the only means to
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convey the thoughts, needs or information. There are non-verbal means, e. g. , gestures, which provide
another form through which thoughts can be transmitted. The more complex the ideas, needs or information
h
to be communicated, the more complex becomes the process of encoding them. While an involuntary shriek
ic
may adequately convey the degree of alarm felt by the victim, even a carefully worded statement or letter
may fail to convey the essential purpose of communication. This can happen if the language or symbols used
convey different meanings to the sender and the receiver. This is one reason that Phonetic Codes and
hr
abbreviations are used cautiously while communicating in the tourism industry.

Channel: The next element in the process of communication is the channel through which the communication
is transmitted. It is the link that joins the sender and the receiver. The most commonly used channels are sight
S
and sound. In the organisational environment, the channel could take the form of face-to-face conversation,
written memos, telephonic exchanges, group meetings, computerised Local Area Network (LAN), etc.
Outside the organisation, the channels could be letters or circulars, magazines, radio programmes or TV
shows, teleconferencing, satellite communications, Wide Area Network (WAN), etc. For communication to be
effective the channel used should be appropriate for the message as well as the receiver. For an urgent
message telegram, telephone or e-mail would be the appropriate channel. Again, the channel chosen would
be influenced by the consideration as to whom the message is being directed.
Decoding: Decoding and understanding the message constitute the last two elements in the process of
communicating from sender to receiver. The receiver in the first instance receives the message and decodes it,
14
that is to say, interprets and translates it into thoughts, understanding and desired response. A successful
communication occurs when the receiver decodes the message and attaches a meaning to it which very nearly
approximates the idea, thoughts or information the sender wished to transmit.
Feedback: Response and feedback complete the two-way process of communication. It is through the
feedback that the source (sender) comes to know if the message was correctly received and understood. In
case it is found that the message has been received incorrectly, it is possible to make corrections subsequently
m
but for this the response has to be timely. Sender’s efforts to communicate are aimed at eliciting the desired
response. However, a communication may result in producing any of the three outcomes : a desired change
may occur, an undesired change may occur or no change may take place. We consider communication as
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successful only when it produces the desired response.
Noise: Surrounding the entire spectrum of communication is the noise that affects the accuracy and fidelity of
the message communicated. Noise is any factor that disturbs, confuses or otherwise interferes with
.
communication. It can arise at any stage in the communication process. The sender may not be able to encode
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the message properly or may not be properly audible. The message may get distorted by other sounds in the
environment. The receiver may not hear the message, or comprehend it in a manner not entirely intended by
the sender of the message. The channel also may create interference by ‘filtering’, i. e. allowing some
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information to pass through and disallowing others. In any case, there is so much of noise or interference in
the entire process that there is every possibility of the communication being distorted. We will see later in this
Unit why distortion takes place and what can be done to minimise the distortion of communication.
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Q. What are the Integration of organisational tasks and activities?

Ans. The basis for integration is provided by the three elements of an organisational structure, namely
authority, administration and communication network.
k
1) Integration through Authority- The hierarchical relationships in an organisation define the status of each
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position in relation to the others and the power that goes with that position. The basis for the hierarchical
relationship is that the superior has authority over the subordinate in terms of assigning him or her work and
h
the latter, in turn, is obliged to obey the superior. Hierarchical relationships facilitate integration because they
ensure that all activities are ultimately placed under one authority and thus are linked together. The top
ic
position becomes the centre for all coordination. In a small organisation , with a single product line,
integration and coordination from one central position is certainly feasible. But if you consider large
organisations with operations spread over many geographical areas, product lines running into hundreds and
hr
employing thousands of people, it is no longer physically possible for one person to coordinate all the tasks
and activities. In such situations, the hierarchical structure has to be supported by the administrative structure
S
and communication network.

2) Integration through Administration- “A great deal of coordinate effort in organisation is concerned with a
horizontal flow of work of a routine nature. Administrative systems are formal procedures designed to carry
out much of this routine. ” (Joseph A. Hitterer, The Analysis of Organisation, 1973). Every organisation has its
own administrative procedure and system. These relate to almost every aspect of organisational life. The
procedure for selecting new work force, calculation and mode of overtime, travel, medical and other
allowances, the system of memos and movement of a file from one department to another for decision-
making are all illustrations of administrative procedures. The larger the organisation, generally, the more
formally prescribed and numerous are its administrative procedures. How administrative procedures help in
15
integrating different departments and different levels within an organisation can easily be understood by an
illustration. In a typical organisation, at the end of the corporate year, each individual, say a salesman, would
fill his own assessment of his performance. The salesman’s immediate boss would fill in a Confidential Report
(CR) on his performance.
The salesman’s own assessment and the CR would both be given over the Personnel Department which may
add information from its records on the number of years the salesman has been with the company, his
m
starting salary and designation, number of promotions and increments and bonus received, any loans
outstanding against his name, etc. This complete file would then go to the manager marketing, who would in
consultation with the general manager decide on the salesman’s next promotion and increment in accordance
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with the established salary structure. Thus, the administrative procedure for deciding promotions involves
sharing of information between different levels in the same department (Marketing) and between different
departments (Marketing, Personnel and General Administration)
.
3) Integration through Communication- In the previous illustration, the bases for taking a decision about the
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salesman’s promotion were his own assessment report and his boss’ Confidential Report (CR). Both these are
representatives of the means of communication used in an organisation. Minutes of meetings, circulars,
notices, progress reports, monthly in-house newsletters are all specific tools of the communication network of
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an organisation. Just as manpower, raw material and machines are the resources of an organisation, so is
information. Information regarding the development of a new technology by a rival company, or the
introduction of a new product model are vital pieces of information which can drastically affect the future
course of action for a company. But information is highly perishable. If not communicated to the right person
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at the right time it has little value. Information may be received at one level in the organisation but utilised at
another. Salespersons and other field staff are usually the eyes and ears of any organisation. They gather bits
and pieces of vital information. But to be useful, these disjointed information pieces must be immediately
k
communicated to the ‘brains’ of the organisation, i. e. , the managers who will analyse and act upon the
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information. Just as market information moves upwards within the organisation, decisions have to be
communicated downwards.
h
A decision regarding change in the distribution network is made at the top, but implemented by people in
the field. Therefore, there is a need for communication networks which provide for transmission of
ic
information both up and down the hierarchical structure. Similarly, networks should be available for
exchange of information at the horizontal level. Computers and many other technical improvements have
hr
resulted in organisation’s increased ability to collect, process, analyse and transmit vast amounts of
information. Organisations today have greater access to an almost unbelievable array of information In the
final analyse, however, it is not so much the access to sophisticated technology which an organisation has that
S
determines the efficiency or efficacy of its communication network but rather the stance and attitude of the
top management encouraging its people to talk with each other and share more information.
16

Guess Paper-III
Q. Why is there resistance to change ? How to deal with it?

Ans. The threat of power on an individual level. It is more likely that managers will resist changes that will
m
decrease their power and transfers it to their subordinates. In such a way, the threat of power is one of the
causes of resistance to change;
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1. Threat of power on an organizational level. With the change process, some groups, departments or
sectors of the organization become more powerful. Because of that, some persons will be opposed to
such a proposal or processes where they will lose their organizational power;
2. Losing control of employees. The change process sometimes can reduce the level of control that
.
managers can conduct. In such a way managers can resist the proposed changes if the change process
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will require a reduction of their control power;
3. Increasing the control of the employees. Organizational changes can increase the managerial control of
the employees, and this process can produce employees to become resistant to such proposal proposals
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of change;
4. Economic factors. Organizational changes sometimes can be seen from the employee’s side simply as
something that will decrease or increase their salary or other economic privileges that some workplace
brings to them at the moment before the implementation of the change process. It is normal to expect
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that those people who feel that they will lose the portion of their salary will resist the change.
5. Image, prestige, and reputation. Each workplace brings adequate image, prestige, and reputation that
k
are important to all employees. Organizational changes can make a drastic shift in these employee’s
benefits. If this is the case with the proposed change, then it will produce dissatisfaction. So, image,
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prestige, and reputation is one of the causes of resistance to change;

6. The threat of comfort. Organizational changes in many cases result in personal discomfort and make
h
employee’s life more difficult. They make a transfer from the comfort of the status quo to the discomfort
of the new situation. Employees have the skills to do an old job without some special attention to
ic
accomplishing the task. Each new task requires forgetting the old methods of doing the job and learning
new things that lead to waste of energy, and causes dissatisfaction;
7. Job’s security. Organizational change can eliminate some workplaces, can produce technological excess,
hr
layoffs and so on. Job’s security simply is one of the causes of resistance to change;
8. Reallocation of resources. With organizational changes, some groups, departments or sectors of the
organization can receive more resources while others will lose. So, this will bring resistance from the
S
individuals, groups or departments who will lose some of their currently available resources.
9. Already gained interests of some organized groups in the company. Organizational change can make
new groups more significant for the success of the organization. That’s a big threat for old coalitions that
will cause resistance to change in those groups that will become more insignificant with the proposals;
10. Implications on personal plans. Organizational change can stop other plans, projects or other personal
or family activities. In such a way this become one of the causes of resistance to change for those persons
who will be reached by this change;
17
11. Too much dependence on others. In an organization, there are employees who too much depend on
other individuals. This dependence is based on the current support that they receive from powerful
individuals. If the change process brings the threat of that dependence, it will cause resistance to change
of those persons that will be threatened by this change;
12. Misunderstanding the process. Organizational individuals usually resist change when they do not
understand the real purpose of the proposed changes. When employees don’t understand the process,
m
they usually assume something bad. This will cause resistance to change;
13. Mistrust to initiators of change. When employees don’t have trust in the initiators of the process, the
process will not be accepted and this will cause resistance to change;
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14. Different evaluation and perception. Different evaluation and perception can affect organizational
changes if there are persons who consider the proposed changes as a bad idea. Because of that, they are
resistant to proposed changes.
How to Deal With Resistance to Change: One of the most baffling and recalcitrant of the problems which
.
business executives face is employee resistance to change. Such resistance may take a number of forms—
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persistent reduction in output, increase in the number of “quits” and requests for transfer, chronic quarrels,
sullen hostility, wildcat or slowdown strikes, and, of course, the expression of a lot of pseudo logical reasons
why the change will not work. Even the more petty forms of this resistance can be troublesome. All too often
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when executives encounter resistance to change, they “explain” it by quoting the cliché that “people resist
change” and never look further. Yet changes must continually occur in industry. This applies with particular
force to the all-important “little” changes that constantly take place—changes in work methods, in routine office
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procedures, in the location of a machine or a desk, in personnel assignments and job titles.
No one of these changes makes the headlines, but in total they account for much of our increase in productivity.
They are not the spectacular once-in-a-lifetime technological revolutions that involve mass layoffs or the
k
obsolescence of traditional skills, but they are vital to business progress.

Does it follow, therefore, that business management is forever saddled with the onerous job of “forcing” change
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down the throats of resistant people? My answer is no. It is the thesis of this article that people do not resist
technical change as such and that most of the resistance which does occur is unnecessary. I shall discuss these
h
points, among others:

1. A solution which has become increasingly popular for dealing with resistance to change is to get the people
ic
involved to “participate” in making the change. But as a practical matter “participation” as a device is not a
good way for management to think about the problem. In fact, it may lead to trouble.
hr
2. The key to the problem is to understand the true nature of resistance. Actually, what employees resist is
usually not technical change but social change—the change in their human relationships that generally
accompanies technical change.
3. Resistance is usually created because of certain blind spots and attitudes which staff specialists have as a result
S
of their preoccupation with the technical aspects of new ideas.

4. Management can take concrete steps to deal constructively with these staff attitudes. The steps include
emphasizing new standards of performance for staff specialists and encouraging them to think in different
ways, as well as making use of the fact that signs of resistance can serve as a practical warning signal in directing
and timing technological changes.
5. Top executives can also make their own efforts more effective at meetings of staff and operating groups where
change is being discussed. They can do this by shifting their attention from the facts of schedules, technical
details, work assignments, and so forth, to what the discussion of these items indicates in regard to developing
resistance and receptiveness to change.
18
Q. State the Socialisation process.

Ans. Socialisation process has three stages:
• Prearrival
• Encounter
• Metamorphosis
1. Prearrival: This stage tries to ensure that prospective members arrive at an organisation with a certain set
m
of values, attitudes and expectations. This is usually taken care of at the selection stage itself. Selectors try
to choose the “right type” of people, who they feel, will be able to “fit” the requirements of an
organisation. Thus an organisation, even before allowing an outsider to “join”, makes an attempt to
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ensure a proper match which contributes towards the creation of a uniform culture within the
organisation. The views of the founding fathers of an organisation as well as the ethos of the present top
management influences, consciously or inadvertently, the selection of the parameters of this “proper
.
match”.
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2. Encounter: After gaining an entry into the organisation a new member faces an encounter stage. There is
always a possibility of difference between his or her expectations of an organisation and the OC. If the
expected image and OC matches, then the encounter stage passes off smoothly leading to confirmation of
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the image. If the imbalance between the two is acute, the person has usually two choices open. First, the
person undergoes further socialisation which detaches him or her from previous expectations, replaces
these with another set of expectations and thus helps him or her get adjusted to the prevailing system.
Second, he or she drops out due to disillusionment. In both the cases the final result is the same: the status
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quo of traditions and customs maintained.

3. Metamorphosis: People who had discovered an anomaly between their expectations and OC, but decided
not to drop out enter into the metamorphosis stage. As they must sort out their problems and go through
k
changes, this is called metamorphosis. When this metamorphosis is complete, the members develop a
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uniform perception of OC and feel ‘comfortable’ with the organisation and job. Successful metamorphosis
results in the member’s productivity being as per organisation’s ‘norm’, ‘average’ commitment and
h
lowered propensity to leave the organisation. All these are indications of “typical” or “normative”
behaviour.
ic
Q. Characteristics of Managerial ethos.

hr
Ans. 1. Action goal orientation: Persons with high sense of adequacy have clear goals about their future and
are directed by these goals. They are action oriented to reach their clear goals
2. Pro-action/Pro-active: Proactive people do things on their own without having to be told by anyone. Such
S
initiative taking behaviour leads to a high level of activity and experimentation.

3. 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.
4. 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.
19
Q. What are the key concept of MBO.

Ans.
1) Emphasis on results rather than activities The basic feature of every MBO is the emphasis on results
rather than activities. Activities, per se, are never important. Their importance lies in the fact that they
lead to results. If an activity produces no results, it may just as well be dropped. This is because, it is only
consuming time and resources with no output. In MBO, the starting point is the identification of results
m
which are important to the organisation and then working backwards to see which activities can lead to
these results. George Morrisey has identified “management by activities or reactions” and “management
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by objectives and results” as the two theoretical extremes. Traditionally, management was characterised
by activities. Even today you may find this happening in many cases. For instance, most job descriptions
are spelled out in terms of activities, such as travelling, meeting people, corresponding, etc. rather than
results. It is this disproportionate focus on activities which leads to the situation where apparently all
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managers are very busy but are not able to achieve any significant results. To shift from an activity-
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oriented to a result-oriented management system is not always easy. Engaging in activities gives a lot of
satisfaction to most people even when they know that the result contribution is very low. The more
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visible is the activity, such as preparing graphs, charts, etc. the greater is the satisfaction. The other reason
why people derive satisfaction from engaging in activities is because sometimes the gap between
activities and results may be so long and uncertain that keeping a constant focus on results may be very
difficult. Urgent, pressing problems arising out of crisis situations or out of the need to meet deadlines,
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such as drawing up of balance sheet by the end of the financial year, require immediate activity which is
unavoidable. However, if a person always keeps in mind the results for which one is accountable , one
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can change his or her style of working towards result achievement.

2) Objectives for specific managerial positions In the context of MBO, objectives are defined as expected
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results. Objectives must be specified for every managerial position at each level of the managerial
hierarchy. Objectives are set for specific managerial positions and not for the individuals who occupy
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these positions. Irrespective of whether it is Mr. K. D. Das or Ms. Rita Venkat who is manager of after
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sales service, the objective of the managerial position still will remain the same. It is important to specify
objectives according to managerial positions to ensure the continuity of effort in the achievement of
organisational objectives. The only exception to this is in the case of top management. When a company
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changes hands or a new managing director is appointed it is likely that he or she may like to modify or
even totally change some of the existing corporate objectives and provide a totally new direction to the
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organisation.
In such a situation, objectives for all the managers may have to be modified or changed. There are three
distinct levels of management in every organisation and these are: the top management, middle
management and operating management. Objectives must be specified for each level of management. At
the top management level the objectives are referred to as corporate objectives and they provide the
general direction for the entire organisation. Since their scope extends to the entire firm, corporate
objectives necessarily encompass a span of five to ten years. Predictions of future events can never be
made with complete certainty and therefore the corporate objectives are specified more in general rather
than very specific terms. Corporate objectives are externally oriented as they are derived from the external
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environment in which the firm operates. This environment comprises economic, technical, legal, social,
cultural, political and demographic factors as well as consumer tastes, attitudes, competition, etc. Thus, a
budget hotel may well define it corporate objective as satisfying the accommodation needs of middle
income classes.
3) Participatory or joint objective setting We have seen that all operating objectives are derived from the
corporate objectives by breaking them down into smaller workable and specific functional area objectives.
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In an organisation practising MBO these objectives are set by the concerned managers themselves in
consultation with their superiors. The emphasis is on participation of the concerned manager himself or
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herself. The participation process allows the manager to exert influence on those very objectives and
decisions against which the performance will be measured. This participation ensures that the objectives
set are realistic since the manager is in direct contact with the market, labour, production facilities, etc.
and knows the real situation. Since the objectives are realistic and set in agreement with the concerned
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manager their chance of being attained is also higher.
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4) Identification of key results areas Every managerial position has associated with it certain results or
outputs. However, it is the achievement of only a few result areas that is critical to the organisation’s
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success and these are known as key result areas (KRAs). For instance, the various results areas for a
production manager may include quality, quantity, adherence to delivery schedules, rejects, wastage,
inventory, labour costs, material cost, machine down time, etc. Depending on the nature of the
organisation and industry, the production manager will identify his or her key result areas. In an
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industry, where the raw material and machinery are the major cost contributors, the manager’s key result
areas may be raw material cost, wastage and machinery utilisation. On the other hand, in an industry like
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television set manufacturing, where assembly is the major operation, labour costs, critical component
costs, and quantity may by the key result areas. Similarly, in other functional areas the key result areas
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can be identified. In marketing, these may by related to sales, new markets, new customers, marketing
research, distribution, pricing policy, media advertisements, local sales promotion plans, etc.
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5) Establishment of Periodic Review System An important feature of every MBO is the periodic review
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system. The review may be held at intervals of every three, six or twelve months. The purpose is to
review the performance against the objectives. Also, the validity of continuing with the pre-established
objectives may be reviewed. An organisation which professes to follow the MBO approach but has no
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review system is only paying lip service to MBO without actually practising it. Objectives are useful only
if they can initiate action and the review system is a way to ensure that the action in the desired direction
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is being taken and is yielding the desired results. The review system thus provides a mechanism for both
measuring and controlling. MBO should not be confused with a performance appraisal system. There are
many elements which are common to both, but MBO is wider in both, the concept and application than a
system of performance appraisal. Without going into too many details, it would be useful to point out one
major difference between the two. In performance appraisal, the emphasis is on simply reviewing the
past, while in MBO the focus in on initiating future corrective action. Though MBO may also be used for
performance appraisal, you must remember that this is not its main purpose. The purpose of MBO is to
improve managerial performance and effectiveness.
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Q. ExplainEconologic Model or Economic Man Model.

Ans. The econologic model represent the earliest attempt to model decision process. Briefly, this model rests
on two assumptions:
(1) It assumes people are economically rational; and
(2) that people attempt to maximise outcomes in an orderly and sequential process.
Economic rationality, a basic concept in many models of decision making, exists when people attempt to
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maximise objectively measured advantage, such as money or units of goods produced. That is, it is assumed
that people will select the decision or course of action that has the greatest advantage or payoff from among
the many alternatives. It is also assumed that they go about this search in a planned, orderly, and logical
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fashion.
1. Discover the symptoms of the problem or difficulty,
2. Determine the goal to be achieved or define the problem to be solved,
3. Develop a criterion against which alternative solutions can be evaluated,
.
4. Identify all alternative courses of action,
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5. Consider the consequences of each alternatives as well as the likelihood of occurrence of each,
6. Choose the best alternative by comparing the consequences of each alternative (step5) with the decision
criterion (step3), and
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7. Act or implement the decision
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The economic man model represents a useful prescription of how decisions should be made, but it does not
adequately portray how decisions are actually made. If you look closely in this prescriptive model you shall
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be able to recognise some of the assumptions it makes about the capabilities of human beings:
• First, people have the capability to gather all necessary information for a decision, i. e. , people can have
complete information.
• Second, people can mentally store this information in some stable form, i. e. , they can accurately recall
any information any time they like,
• Third, people can manipulate all this information in a series of complex calculations design to provide
expected values, and
Fourth, people can rank the consequences in a consistent fashion for the purposes of identifying the preferred
alternative.
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Q. Main focus of organisational context of decisions. With suitable example

Ans. The mission is the very reason and justification for the existence of a firm. Mission is always defined in
terms of the benefits the firm provides to its customers and not in terms of any physical dimensions of the
firm or its products. A firm exists and functions only in relation to the customer whose need (s) it satisfies.
For example if there were no guests to stay there would be no hotels or if there are no tourists there would be
no tour operator or travel agency. Thus the starting point for defining the mission of any business is its
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customer. Since the customer exists outside the business, the mission must be defined from the outside. The
firm must ask the questions like “What is our business ?” and “What should it be?” However, the firm must
seek the answers to these questions from the customer’s viewpoint.
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However long a mission may remain valid without any change, it must be noted that the concept of mission is
dynamic and not static. It must change over time with changes occurring in the environment like changes in
technology, social structure, tourism trends, tastes, fashion, etc. A firm which wants to grow and ensure its
.
future must keep pace with these environmental changes and, if need be, accordingly change its definition of
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business. But the critical factor which the firm must remember is that its future is determined by the way it
defines its business today. There can be many descriptions of the business mission and there is no one right or
correct answer. The firm has to make a choice as to how it wants to define what is its business. Making a
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choice is never easy. It involves examining and evaluating the various alternatives available and finally
choosing one which is consistent with top management’s perception about the benefits they are providing to
the customers today and their aspirations for the future. Thus, the mission has to seek a balance between the
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present and the future, and avoid being defined too narrowly or too broadly.
Too narrow a definition will prevent a firm from availing many new and profitable opportunities that may
come its way . For example a firm involved in distributing films for screening in cinema theatres had defined
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its business as “seeking to fulfil the entertainment needs of customers through distributing films to theatres
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for exhibiting to actual customer”. With the increasing popularity of videos and the subsequent decrease in
earnings from theatres this firm was soon faced with the prospect of dwindling business. On the other hand,
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if the firm had defined its business as “fulfilling the entertainment needs through distributing means of
audio-cum-visual entertainment”, it could have undertaken the distribution of video films along with films
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and continued to grow. In this example, the key words are ‘entertainment’, the specific need of the customers
that the firm is seeking to fulfil, and ‘audio-cum-visual’, describing the type of entertainment. Suppose this
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same firm had, instead, defined its business as “distributing means of entertainment”. What would be the
outcome? The field which the firm had identified is far too broad to be meaningfully able to concentrate on
any workable opportunity. Consider that books, magazines, records, music cassettes also constitute means of
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entertainment. For many people both indoor and outdoor games are a way of entertainment. Should this firm
then include hockey sticks, badminton rackets footballs, and chess boards also?
The scope of a firm’s business flows from its definition of mission but is described in more specific rather than
generic terms. Scope refers to the choice of the specific products/ services and markets in which a firm wishes
to operate. The definition of product/market scope has a direct bearing on the subsequent decisions regarding
choice of objectives and strategy. A shipping company may describe its mission as fulfilling the transportation
needs of its customers. It may, if it so chooses, further qualify the scope by defining whether the
transportation is meant for goods (cargo) or for passengers or both.
23
Q. Explain motivating and leading. Give suitable examples

Ans. Motivation is that desire or feeling within an individual which prompts him or her to action. Every
individual has needs, desires and drives, which we collectively call motives and which channelize all his or
her behaviour and action towards achievement of some objectives. The manager’s role is to influence each
individual’s behaviour and action towards achievement of common organisational objectives. A great deal of
research has been conducted in this area and there are many theories of motivation. It is not possible to
explain all these theories here and we shall briefly explain the various factors that can act as motivation.
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Money, is the most commonly used motivating factor in the form of salary, bonus, incentives, commissions
and rewards. Salary or wage is of course the primary motivation, and the poorer the economic background of
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an individual the greater the motivational value of money. However, once a basic salary or wage is assured,
to motivate people to work that little bit extra, achieve that ten per cent higher sales figure, incentives and
commissions come in handy. Most sales organisations pay salary plus incentives to their sales people. The
incentives may be calculated on the basis of individual or team results, and may be linked to a sales target.
.
Similar incentives can be offered to the production department. However, performance linked rewards are
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difficult to compute in areas such as finance, personnel, and administration where work output cannot be
easily measured. A percentage of total profits can be distributed to these departments as incentive. Humans
do not live by bread alone is an old saying. Man is a social animal and seeks recognition and status in society
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through his work. The status or position which an individual enjoys in the organisation, the number of people
who work for him, the non-monetary benefits and perks which he enjoys are important motivational factors.
In fact sometimes these are more important than the actual take-home pay packet.
Gupta started his career as a salesman in a medium sized company manufacturing and marketing stereo
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systems. Because of his analytical ability, capacity to work hard and achieve results, Gupta soon rose to be the
area sales manager of North India. The owner of the company relied a great deal on Gupta’s judgement and
always consulted him on every important matter. Gupta was making good money performing well and
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enjoyed the great confidence of the great confidence of the owner, yet he felt that there was no power or
position in his job which could give him a better status in society. Therefore, when the opportunity arose,
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Gupta joined an American Multinational as Divisional Manager, selling scientific laboratory glassware. It was
the glamour, the power, and the status which the job conferred on him that motivated Gupta to join.
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However, two years with the multinational were enough for Gupta to realise that he had no authority to take
any independent decisions and he was not deriving any satisfaction from his job. Gupta quit his job and went
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back to his previous employer. Thus satisfaction at work is an important motivating factor. The lesson from
Gupta’s story is that the same individual will be motivated by different factors at different stages of his or her
career. Generally as you move up the organisation to more important positions, the importance of money and
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monetary benefits as motivating factors decreases and intangible factors such as job satisfaction, confidence of
the boss, good relationship with the boss, the status and respect commanded in the organisation, etc. become
more important. The physical working environment in which a person works also has tremendous
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motivational force. A pleasant, noise-free, well-lit room comfortable temperature, and proper facilities of
telecommunication, secretarial assistance, canteen, transport, etc. are always conducive to work. Different
individual are motivated by different factors. This is because each individual in the organisation comes from a
different socio-economic, cultural, religious, educational and family background, and each of these has a role
in determining the degree to which he or she can be motivated by different factors. In many developed
countries, a great deal of emphasis is laid on leisure and individuals may be motivated to take up that job
which affords greatest opportunity for leisure. Similarly cultural background and personal values are
important influences on the effectiveness of motivating factors. The manager’s concern is to find a set of
common factors which can motivate all the people coming from diverse and different backgrounds and
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working at different levels of management. The manager’s task will be greatly simplified when he or she
understands that motivational factors are present in, and can be used, in design of work, rewards, work
environment, work relationships and work content. All monetary benefits and non-monetary advantages
such as free medical cover, company car and driver, club membership, etc. are part of the work reward and
are important motivators. Work environment as a motivating factor, first and foremost, refers to the status of
the organisation for which a person works and the mere fact of working in that organisation gives him or her
that status. If a University has the reputation of being amongst the best in the world then anyone who has
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graduated from there is generally perceived to be at least above average, if not excellent. The actual physical
factors present in the work environment also act as motivators. Relationships developed at work, with the
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boss, colleagues and subordinate have an important motivating influence. The more congenial, friendly and
supportive are these relationship, the greater their positive motivational value. In contrast, strained
relationships which create tension and unhappiness are serious enough reasons for people to leave jobs which
in all other respects seem very comfortable and attractive. The design and content of the actual work to be
.
done is in itself an important motivational factor. An element of freedom to experiment with new ideas within
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the parameters of the job fulfils the creative urge in every individual. Freedom to take decisions and assume
responsibility for the results are factors which enhance an individual’s self-confidence and feeling of self-
esteem. The more such factors can be built into the job, the greater would be the job satisfaction of the
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individual performing the job. A happy, satisfied worker is a productive worker and a great asset to any
organisation. If an individual is himself or herself associated with designing the content and objectives of the
job, there are greater chances that he or she will work utmost to fulfil these objectives. This is the approach
known as Management by Objective (MBO) and has tremendous motivational potential. The manager has not
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only to motivate his or her people but also provide them with leadership. To that extent every manager is a
leader. A manager has to inspire and influence subordinates to willingly work towards achieving the
organisational objectives.
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When put in a situation of leading, you must remember that it is a role you are performing, and that your
personality has an important influence on your performance as does the situation in which you are expected
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to perform. To be an effective leader, a manager must have a pleasing physical personality, ability to get along
with people, qualities of honesty and integrity and be an excellent speaker. To command respect of others, the
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manager must excel at his or her basic job whether it is operating a machine or managing the finances of a
large company. The leader must first set an example by his or her own actions rather than by just making
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speeches. The actions must communicate to the people that the manager belongs to them. Only when one is
able to generate this feeling of oneness will he or she be able to inspire confidence in the people. Secondly, a
manager must remember that he or she is only playing a role. However, to be able to perform effectively, the
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role demands that the manager be perfectly objective in all his or her judgements and decisions, and be
guided only by the organisational objectives and have no other considerations. For a leader the interests of his
or her people are of paramount importance and come first while personal benefits take second place. Thirdly,
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the role must be moulded according to the unique situation in which the manager is placed. In our society,
great emphasis is laid on personal relationships and contacts and managers are perceived to be father figures
and are expected to have a paternalistic attitude towards their workers. In contrast, in the West and especially
in countries with a British colonial past, the relationships between manager and worker is only confined to the
work. There, if a manager were to adopt a paternalistic approach, he or she would be totally ineffective. At
the same time a manager who usually follows a consultative, participative approach, seeking the opinions
and consensus of subordinates before implementing any decision, in a crisis situation may adopt a very
authoritarian approach and effectively manage the situation.
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Shrichakradhar.

MTTM-001: Management Functions and Behaviour In Tourism

allocation without any wastage.

• compare actual performance with these pre-determined standards,

• comparing performance with standards, i. e. interpreting results, and

improvements, suggestions, complaints etc.

formats have to be devised as per requirements.

SOME STRATEGIES TO MAKE MANAGEMENT BY OBJECTIVES WORK EFFECTIVE

Q. Explain the needs that the groups help us to satisfy.

ii) Relatedness or belongingness needs

Q. Explain the theory of Homan, Newcomb and Thaibaut & Kelly.

Q. Explain “Path-goal Leadership Theory”

MTTM-001: Management Functions and Behaviour In Tourism

Q. Explain the concept of “Johari window”.

and eventual termination.

Q. Explain the factors Influencing centralisation, decentralisation and coordination.

Q. Steps of formulating a plan.

A. major steps required to reach an objective,

Q Discuss the communication process.

abbreviations are used cautiously while communicating in the tourism industry.

Q. What are the Integration of organisational tasks and activities?

and communication network.

MTTM-001: Management Functions and Behaviour In Tourism

Q. Why is there resistance to change ? How to deal with it?

prestige, and reputation is one of the causes of resistance to change;

obsolescence of traditional skills, but they are vital to business progress.

points, among others:

of their preoccupation with the technical aspects of new ideas.

Q. State the Socialisation process.

quo of traditions and customs maintained.

Q. Characteristics of Managerial ethos.

initiative taking behaviour leads to a high level of activity and experimentation.

Q. What are the key concept of MBO.

can change his or her style of working towards result achievement.

Q. ExplainEconologic Model or Economic Man Model.

Q. Main focus of organisational context of decisions. With suitable example

Q. Explain motivating and leading. Give suitable examples

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