SMU Assignment MBA-1st Semester

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Assignment
Program : MBA
Semester : 1
Subject code & name: MB 0038 - Management Process and
Organization Behaviour
Book ID : B1621
1. Define the terms ‘strategy’. Explain the following:
a. Corporate strategy
b. Business strategy
c. Functional strategy
The definition of Strategy:
Strategy means the grand plan which helps in executing the Vision. In
other word, Strategy means the grand plan and the term is borrowed from
the military which distinguished between the grand plan and actual action by
calling the former strategy and the latter tactics.
Strategy in organizations can be divided into three:
a. Corporate Strategy
 A large organization may have several businesses running independently
and a corporate headquarters which controls these.

2. • The Corporate headquarters will have grand plans on how each business
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should operate.
• The grand plan created by corporate headquarters is called ‘Corporate
Strategy’.
b. Business Strategy
• Every business, big or small will have a business strategy. This is the
grand plan for doing business.
• Larger organizations will have their business strategy in consonance with
the Corporate Strategy.
c. Functional Strategy
• Once the business strategy is developed, each independent department
will need its own strategy.
• The grand plan made by each functional area in the organization can be
called as ‘Functional Strategy’.

3. 2. Define the term ‘management’. Explain the Behavioural science
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theory and Systems theory.
Definition of Management:
There are two definitions will be considered while we are talking about definition
of management as follows:
According to Harold Koontz, “Management is an art of getting things done
through and with people in formally organized groups. It is an art of creating an
environment in which people can perform as individuals and can co-operate
towards attainment of group goals”.
According to F.W. Taylor, “Management is an art of knowing what to do, when to
do and see that it is done in the best and cheapest way”.
Explanation of Behavioural science theory:
The thought was originated by Vilfredo Pareto in 1896, and he researched on
organisation and management relationship. Later, Hugo Munsterberg applied
psychology to increase industrial production in 1912 and around the same time,
Walter Dill Scott applied psychology to advertising, marketing, and personnel in
1910 and 1911. But it was Elton Mayo and F.J Roethlisberger who made an
impact on the behavioural science theory through their Hawthorne experiments
in Western Electric Company in 1933. These experiments proved that good
working relationship with the supervisor and colleagues and the idea of
challenge in the job accounted for higher productivity. Challenge is created
through setting high goals which cannot be normally achieved but which can be

4. achieved with a little additional effort. These experiments brought to fore the
importance of behavioural science in management. Extending the idea sometime
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in 1946 and 1947, Max Weber propounded the theory of bureaucracy.
Explanation of System theory:
Though the systems theory can be traced to biology, where we have
cardiovascular system, nervous system, etc which are fairly independent yet
interdependent, it was Chester Barnard who extended this into management
area through his writing ‘Functions of the Executive’ in 1938. In systems theory,
we perceive that organisations have a number of fairly independent systems
such as purchase system, operations system, marketing system, financial
system, etc. The workings of these are independent, but it has to be integrated
by the manager. This theory, perhaps, brings the idea of integration as a key
component of management.

5. 3. Give the definition and importance of planning in an organization and
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explain the steps in planning.
Definition of planning:
• Planning can be defined as a basic management function which enables one
to select the purpose of business and how the resources should be mustered
to achieve that purpose to include using the available resources optimally.
• Plan is a blueprint that specifies the necessary resource allocations,
schedules, tasks and other actions to achieve the purpose.
Explanation of the importance of planning:
• It helps the management to clarify, focus and research their business
developments and prospects.
• It provides a considered and logical framework within which a one can
develop and pursue business.
• It offers a benchmark against which the actual performance can be measured
and reviewed.
• It plays a vital role in helping to avoid mistakes or recognize hidden
opportunities.
• It guides the development of products, management, finances and most
importantly markets and competition.
• It helps in forecasting the future.
• It bridges the gap between where an organization is and where it wants to
go.

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List the steps in planning:
a. Being aware of Opportunities
b. Establishing objectives
c. Developing premises
d. Determining alternative course
e. Evaluating alternative courses
f. Selecting a course
g. Formulating plans
h. Qualifying plans by budgeting
Explanation of the steps in planning:
a. Being aware of Opportunities: This means being aware of the customer
needs, market, competition, strengths and weaknesses of the
organization.
b. Establishing objectives: This implies establishing what the organization
wants to be and what it wants to accomplish and in relation to which
market segment.
c. Developing premises: It means deciding on the environment in which the
plan is going to operate. Business has external environment created by
political factors to include legislation, legal framework.
d. Determining alternative course: It implies identifying the most promising
alternative to accomplish the organization goal.
e. Evaluating alternative courses: Comparing the alternatives to find out
which of them will meet the goals of the organization at an optimal cost
and profit keeping sustainability into mind.

7. f. Selecting a course: Selecting the course that the organization wants to
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follow.
g. Formulating plans: This implies making plans that support the course of
action by buying equipment, space, planning the type of HR etc.
h. Qualifying plans by budgeting: Identifying the cost involved, how the
financial resources will be mobilized, what is the capital expenditure, what
is the operational expenditure, the working capital etc.

8. 4. Define the term Controlling? What are the prerequisites of effective
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control?
Definition of controlling:
a. Controlling, defined as measuring and correcting of performance to
achieve the organizational goals.
b. Planning and controlling are integral parts of an organization as both are
important for smooth running of an enterprise
Pre-requisites of effective control:
a. Tailoring controls to plans and positions
b. Tailoring controls to individual manager
c. Designing 'point to the exceptions at critical point‘
d. Objectivity of controls
e. Flexibility
f. Fitting to the organizational culture
g. Economy of controls
h. Ability to lead to corrective action

9. 5. What are ‘attitudes’? Explain the components and functions of
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attitude.
Meaning of attitude
Attitudes are also known as “frames of reference.”
Attitudes are the predisposition of the individual to evaluate some objects in a
favorable or an unfavorable manner.
Attitude is defined as a more or less stable set of predisposition of opinion,
interest or purpose involving expectancy of certain kind of experience and
readiness with an appropriate response.
Attitudes are different from values. They are the individual’s feelings, thoughts
and behavioural tendencies towards a specific object or situation
Components of an attitude are:
a. Cognition: The cognition component of an attitude reflects a person’s
perceptions or beliefs.
b. Affect: This component refers to the person's feelings that result from
his/her beliefs about a person, object or situation.
c. Behavior: This component of an attitude refers to an intention to behave
in a certain way toward someone or something.

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The functions of attitude as per Katz are as follows.
a. Adjustment function: Attitudes often help people to adjust to their work
environment.
b. Ego-defensive function: Attitudes help people to retain their dignity and
self-image.
c. Value-expressive function: Attitudes provide individuals with a basis for
expressing their values.
d. Knowledge function: Attitudes provide standards and frames of
reference that allow people to understand and perceive the world around
them.

11. 6. Define leadership. Write a brief note on ‘Contingency Theories of
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Leadership’
Definition of leadership:
Leadership is the art of motivating a group of people to act towards achieving a
common goal.
Contingency Theories of leadership:
Contingency theories suggest that there is no one best style of leadership and an
effective style depend on how the leader adopts a style in relation to the group
and the situation. Effective leadership is about finding a good fit between the
behaviour, context, and need.
Contingency theories could be seen in three parts such as:
i. Fielder’s Contingency Model (FCM) of leadership:
FCM postulates that the leader’s effectiveness is based on ‘situational
contingency’ which is a result of the interaction of two factors, i.e.,
leadership style and situational favorableness.
Fielder identified three situational components that determine the
favorableness of situation control. They are:
 How defined and structured the work is?
 How much position power (authority) the leader has?
 The relationship between the leader and the followers.

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ii. Path goal theory:
This theory draws its inspiration from the expectancy model of motivation.
If there is a leader and a follower, the follower expects something and the
leader is able to fulfill it.
The expectation of the follower whether in terms of material or
psychological benefit has to be met by the leader and the follower expects
it too. Here the leader must correctly identify the reward that is expected
and promise him or her that. Thus leadership effectiveness is contingent
upon the promised reward and the creation of a smooth way to achieve
that reward. Path goal brings in a high degree of individual need.
iii. Situational leadership:
Paul Hersey and Kenneth Blanchard (1969, 1993) identified that the
leaders have four leadership styles. They are as follows:
1) Telling (directing)
2) Selling (consulting)
3) Participating
4) Delegating to the followers depending on (contingent upon) the
maturity of the follower to do the task.
This theory interestingly tends to merge the ideas of style with the ideas of
contingency or condition of the follower. Task and situation are inherent in this
since the term maturity relates to the ability to handle the task in a situation.