SMU_MBA-Solved-Assignment-MB0038_Management Process and Organizational Behavior_Spring2015_Assignment

1. ASSIGNMENT, Drive SPRING 2015
Program MBA, Semester 1
Subject code & name MB0038 – Management Process and Organizational Behavior
Book ID B1621, Credit & Marks 4 CREDIT, 60 MARKS
Answerall questions.
Q. 1. Explainthe conceptof Management.Discuss the importance of Management.
Q. 2. Discussthe stepsinvolvedinthe Planningprocess.
Q. 3. What do you meanbyControl?Explainthe pre-requisitesof an Effective Control system.
Q. 4. Discussthe concept of a Group. Explainthe purpose of aGroup. Discussthe typesof Formal
Groups.
Q. 5. Discussany tencharacteristicsof an Effective team.
Q. 6. Write short notesonthe following:
a) Goleman’sModel of Emotional Intelligence.
b) Fielder’sContingencyModel of Leadership
Q. No 1. Explain the concept of Management. Discuss the importance of Management.
Ans.1- Conceptof Management
Accordingto HaroldKoontz,“Managementisan art of gettingthingsdone throughandwithpeople
informallyorganisedgroups.Itisanart of creatingan environmentinwhichpeoplecanperformas
individualsandcanco-operate towardsthe attainmentof groupgoals”.
Accordingto F.W.Taylor,“Managementisan art of knowingwhatto do,whento do,and see thatit
isdone in the bestand cheapestway”. Letus modifythe definitionof HaroldKoontzanddefine
managementas‘the processof designingandmaintaininganenvironmentinwhichthe individuals
workingingroupsefficientlyemployresourcesandaccomplishthe selectedgoalsof self andthe
organisation’.Thisdefinitionbringstofore the followingkeyissuesof management:
 It isabout people and otherresources
 There are goalsbutgoals of the individual andthe organisationhastobe managed
 It involvescreatinganenvironmentwherepeople andresourcesinteracttoproduce the goals.
Importance of Management:
Managementisimportantbecause of the followingreasons:
 It helpsin AchievingGroupGoals - It arrangesthe factorsof production,assemblesand
organizesthe resources,integratesthe resourcesineffective mannertoachieve goals.It
directsgroupeffortstowardsachievementof pre-determinedgoals.Bydefiningobjective of
organizationclearlythere wouldbe nowastage of time,moneyandeffort.Management
convertsdisorganizedresourcesof men,machines,moneyetc.intousefulenterprise.These
resourcesare coordinated,directedandcontrolledinsuchamannerthat enterprise work
towardsattainmentof goals.
 Optimum UtilizationofResources - Managementutilizesall the physical&humanresources
productively.Thisleadstoefficacyinmanagement.Managementprovidesmaximum
utilizationof scarce resourcesbyselectingitsbestpossiblealternateuse inindustryfromout
of varioususes.It makesuse of experts,professional andthese servicesleadstouse of their

2. skills,knowledge,andproperutilizationandavoidswastage.If employeesandmachinesare
producingitsmaximumthere isnounderemploymentof anyresources.
 ReducesCosts - It getsmaximumresultsthroughminimuminputbyproperplanningandby
usingminimuminput&gettingmaximumoutput.Managementusesphysical,humanand
financial resourcesinsuchamannerwhichresultsinbestcombination.Thishelpsincost
reduction.
 EstablishesSoundOrganization - Nooverlappingof efforts(smoothandcoordinated
functions).Toestablishsoundorganizational structure isone of the objective of
managementwhichisintune withobjective of organizationandfor fulfilmentof this,it
establisheseffective authority&responsibilityrelationshipi.e.whoisaccountable towhom,
whocan give instructionstowhom, whoare superiors&whoare subordinates.
Managementfillsupvariouspositionswithrightpersons,havingrightskills,trainingand
qualification.All jobsshouldbe clearedtoeveryone.
 EstablishesEquilibrium- It enablesthe organizationtosurvive inchangingenvironment.It
keepsintouchwiththe changingenvironment.Withthe change isexternal environment,
the initial co-ordinationof organizationmustbe changed.Soitadaptsorganizationto
changingdemandof market/ changingneedsof societies.Itisresponsible forgrowthand
survival of organization.
 Essentialsfor Prosperityof Society - Efficientmanagementleadstobettereconomical
productionwhichhelpsinturntoincrease the welfare of people.Goodmanagementmakes
a difficulttaskeasierbyavoidingwastage of scarce resource.Itimprovesstandardof living.
It increasesthe profitwhichisbeneficial tobusinessandsocietywillgetmaximumoutputat
minimumcostbycreatingemploymentopportunitieswhichgenerate income inhands.
Organizationcomeswithnewproductsandresearchesbeneficialforsociety.
Q. No 2. Discuss the steps involved in the Planning process.
Ans.2- Planningcanbe definedasabasic managementfunctionwhichenablesone toselectthe
purpose of the business,andhowthe resourcesshouldbe musteredtoachieve thatpurpose to
include usingthe available resourcesoptimallytodothat.
Let us now discussthe stepsinvolvedin the Planning process.
 Beingaware of opportunities – thismeansbeingaware of the customerneeds,market,
competition,ourstrengths,andweaknesses.Thisisusuallydone throughmarketresearch,
competitoranalysis,andanalysisof ownstrengthsandweaknessesthroughaformal process
calledswotanalysis(strength,weaknesses,opportunity,andthreat).
 Establishingobjectives – thisimpliesestablishingwhatwe wanttobe and whatwe wantto
accomplishandwhenandin relationtowhichmarketsegment.Atthe highestlevel,thisis
done throughvisionandmissionbuilding. Thisprocesstakesplace atbusinesslevel,project
level, etc. also.
 Developingpremises –Decidingonthe environment(bothexternal andinternal) inwhich
our plansare goingtooperate.Businesshasexternalenvironmentcreatedbypolitical
factors to include legislation,legalframework,etc. Forexample,foreigncompaniescannot
investdirectlyinmulti-brandretail inIndia.There canbe economicreasonssuchasgeneral
slowdowninwhichcase the shopperstothe bakerymaydecrease,there canbe factors such
as nuclearfamilyandeatingouthabitwhichhelpsSambhavi tohave agreatermarket,etc.
The external analysisisdone throughaprocesscalledPESTanalysis(Political,Economic,

3. Social,andTechnological).Some addculture asan additional separate factorwhile others
include itinSocial.PESTis a frameworkandhelpsyoutothinksystematicallythroughthe
factors thatcouldaffect.In relationtothe businessmission,eachof the factorsmay become
a threat or opportunity(orof course maybe neither).
 Determiningalternative courses – identifyingthe mostpromisingalternativesto accomplish
whatwe wantto. Thisisdone by combiningthe informationaboutthe opportunities,
threats,andown strengthandweaknesses.
 Evaluating alternative courses– comparingthe alternativestofindoutwhichof themwill
meetourgoals andat optimal costandprofitkeepingsustainabilityintomind.
 Selectinga course – selectingthe course thatwe wantto follow.
 Formulatingplans – thisimpliesmakingplansthatsupportthe course of actionby buying
equipment,space,planningthe type of hr,etc.
 Qualifyingplans by budgeting– Identifyingthe costinvolved,how the financial resources
will be mobilised,whatiscapital expenditure,whatisoperational expenditure,the working
capital,etc.
Q. No 3. What do you mean by Control?Explain the pre-requisitesofan Effective Control system.
Ans.3- Meaningof Control
Controllingcanbe definedasmeasuringandcorrectingof performance toachieve the organisational
goals.Accordingto Brech,“Controllingisasystematicexercise whichiscalledas a processof
checkingactual performance againstthe standardsorplanswitha view toensure adequate progress
and alsorecordingsuchexperience asisgainedasa contributiontopossible futureneeds.”
Accordingto Donnell,“Justasa navigatorcontinuallytakesreadingtoensure whetherhe isrelative
to a plannedaction,soshoulda businessmanagercontinuallytake readingtoassure himself thathis
enterprise isonrightcourse.”
Pre-requisitesofaneffective Control System
All managerslike tohave controlsbecause withoutthemtheirplanswouldgoawry.Letusnow
studythe pre-requisitestohave aneffective control system.
 Tailoring controlsto plans and positions – A control is exercisedonanactivityor a group of
activities.Itfollowsthatwhatcontrol isgoodfor a positionmaynotbe relevantforanother
e.g.,the Vice Presidentof marketingandthe Vice Presidentof operationscannothave the
same controlsthoughbothmaybe basedon a financial control system.E.g.,the outlet
managerof Sambhavi canhave a control basedonROI, butthe snack countermanager
needstohave it basedonper customerrevenue ratherthanROI.
 Tailoring controlsto individual manager– Controlshave tobe adjustedtothe individual
manager’scapabilityalso. If someonedoesnotunderstandacontrol,he/shewillnottrustit
or use it as a resultof whichit will become dysfunctional.
 Designing‘pointto the exceptionsat critical point’ – If a control has to be effective,itmust
control the exceptionandthattoo at the critical point.Forexample,the critical pointin
home deliveryof abirthdaycake is the time and accuracy of writingthe name.The
exceptioncanbe wrongname due to spellingvariationsandthe time of deliverydue to
wrongaddress.Therefore,control shouldexistsothatthe deliveryorderphone number(we
usuallyexperience itwhenwe orderapizza) andthe spellingof the name isrechecked.If the
AssistantManagercan call the customerjustbefore the deliveryandrecheckthe delivery
addressandthe spellingof the name,anappropriate control canbe designed.

4.  Objectivityof controls – Many managementactionsare subjective,butwhencontrolsare
created,theymustbe objective,accurate,andmustsuita standard.While thismaybe
relativelyeasyinmachine relatedsystemsandfinancial relatedindicator,we have tobe
careful whenwe have torelate itto the intangible areas.Forexample,how wouldyouhave
controlsforthe kidcare managerinSambhavi outlets?
 Flexibility–Controls mustbe flexibletoinclude the changedplans,unforeseen
circumstances,oroutrightfailure.Forexample,Sambhavi mayuse budgetcontrol tosaythe
inventorylevel butif the salesare significantlyhigherorlower,there shouldbe flexibilityin
the control.Suppose we definethe inventoryperrupee of costof productionorper
kilogramof production.Itwouldbe flexible tocontrol itusinganannual budgetarycontrol
or average inventorybasedonearlierdata.
 Fittingto the organisational culture – Imagine puttingtightcontrol overSambhavi whose
culture isfamily-likeandopenwiththe freedomtoexperiment.The control will most
certainlyaffectthe culture whichtobeginwithisthe competitive advantageof Sambhavi.
Therefore,itmustfitthe culture.If youhave a tightand bureaucraticsystem, alose control
will alsonotwork.
 Economy of controls – Controlsmustbe worththeircosts.Creatingcontrolswhichare
excessivelyexpensive iscounter-productive.Forexample,we cannothave the same controls
inan aircraft and a car.
 Abilityto lead to corrective action – The control shouldleadtocorrective action.Onlythen
it closesthe loopandleadstobetterperformance.Forexample,if the ROIof an outletis
belowthe standardsspecified,there shouldbe areview system, whichdetectsthe sections
that have not contributedtheirpartandhave exceededitsothat the performance canbe
correctedor rewarded.
Q. 4. Discuss the concept of a Group.Explainthe purpose of a Group.Discuss the typesof Formal
Groups.
Ans.4- Conceptof a group
A groupis basedonthe conceptof synergyto attainthe goal.By synergywe meanthatthe sum
total of the outputby the individualmembersare collectivelysurpassedbythe groupandthis
happensbecause of itsabilitytocreate betterinput(ideas) and workpracticesthatcoverthe
deficienciesof eachother.Social facilitationtheoryexplainshow performancetendstoimprove or
decline inthe presence of others.Infactthe synergyisdependentonsocial facilitation.Social
facilitationeffectalsoresultsinpeople whoare proficientinajobdoingthe same job fasterand
betterinthe presence of a groupand those whoare notproficientdoingitworse inthe presence of
a group. Interestingly,if we have totrainpeople onsimple things,itisbetter todoit ina groupas
the learningisfasterandif on complex things,itisbettertotrainthemindividually.Thatperhaps
explainswhymentoringisfarmore effective thanaclassroom sessionorgroupactivityintraining
managersto take decisions.
Purpose of groups
People joingroupsforvariouspurpose suchas:
 Goal achievement:Whenittakesmore than one personto do a thinge.g.,an orchestraor
playcards, or designasystem,make a commentary,thinkandcreate a solution,youneedto
joina group.
 Identity:It givespeople identityandtherefore enhancestheir self-esteemandoftenthe
affiliationneeds.
 Power and status: Groups give bothsince a groupis able toascertainrightsof itsmembers
betterandgive thema positioninsocietyandlife.

5.  Safety and security:Groups provide SafetyandSecurity.
Formal groups:-
Everyorganisationisdividedintoformal organisationalstructuressuchasmarketing,finance,
operations,projectetc.These are oftencalleddepartmentsandtechnicallytheyhave the
characteristicsof a group i.e.,size,interaction,influence andgoals.However,thesecharacteristics
are notstrict (i.e.,the size islarge,interactionfew,influence limitedandgoalsmany) inthe
departmentof anorganisation.Now,if the departmenthastoaccomplisha specificgoal,itwould
have to create a group withinthe departmentwithapurpose of doingthe worke.g.,creatingan
auditgroup withinthe finance department.These maybe permanentortemporaryinnature.A
formal grouphas the followingcharacteristics:
 Definedgoals,deadlines,androles.
 Explicitlydefinedstructure,procedural rules,andmembershipandnorms.
 Relativelypermanentortemporary(e.g.steeringgrouporproblemsolvinggroup).
Types offormal groups: - Formal groupscan be classifiedintothe following:
Command group: A commandgroupconsistsof a managerand the employeeswhoreporttohimor
herand fitsintothe organisation'shierarchy.Forexample,outletmanagerandthe managersof
bakery,snackmeal,merchandise whoreporttohim.Membershipinthe grouparisesfromeach
employee'spositiononthe organisational chart.
Task Group:A task groupis made up of employeeswhoworktogethertocomplete aparticulartask
or project.Here,the membersdonotreportto the hierarchical superiorbuttothe personwhois
giventhe taskto do. For example,URS’taskgroupto identifythe bestoutletconsistsof members
fromvariousoutletsandarea andwho donot reportto the group leaderinthe normal processof
business.
Committee:A group of people officiallydelegated toperformafunction,suchasinvestigating,
considering,reporting,oractingona matter.They usuallymake recommendationsandreports.
Q. 5. Discuss any ten characteristics of an Effective team.
Ans.5:- A teamisany groupof people organisedto worktogetherinterdependentlyand
cooperativelytomeetapurpose or a goal.
Characteristics ofan Effective team:-
1. Clear purpose refersto the conditionwhere groupmembersagree onthe group'sgoals.These
sharedgoalsact to spark group effortbyprovidingcleardirectionandbuyin.(Itshouldbe noted
that such goalscouldhave beenunilaterallysetbythe leaderasitoftenhappensinanorganisation,
jointlysetbythe leaderandgroupmembers,orsetby groupmembersindependentof the boss).
2. Consensusdecisionmaking occurs whengroupsallow all memberstoexpresstheiropinionsand
preferencesopenlyanddiscussanydisagreementthatmightexist.Withinthe consensusdecision-
makingprocess,all membersare allowedto‘have theirdayincourt’while buildingaconsensusasto
whichalternative iscorrect.Some members maystill believe thatthere isabetteralternative but
can accept the positiontakenbythe othergroupmembers.

6. 3. Shared leadershipoccurs whensuchleadershiprolesascontributor,collaborator,challenger,
facilitator,andcontrollerare carriedoutbythe groupmembersratherthanby the group's leader
exclusively.Suchsharedleadershipvariesfromsituationtosituationandmaynotalwaysbe carried
out bythe same individual.
4. Listeningreflectsthe willingnessof groupmemberstolistentoothersinaneffortto achieve
interpersonalunderstandingandfacilitateinterpersonal sensitivity.Teammembersactivelyseekout
listeningopportunitiestoensure openchannelsof communicationare maintained.
5. Open communicationoccurs whengroupmemberstake advantage of communication
opportunities,openlyshare theirfeelings,provide timelyandrelevantfeedback,andshare relevant
informationwithothergroupmembers.
6. Self-Assessmentallowsgroupsandtheirmemberstoassessperformance,changing
environments,andexistinggoals.Suchassessmentallowsgroupstodeterminewhenchangesshould
be made to ensure groupsuccess.
7. Civiliseddisagreementimpliesthatgroupshave developedappropriateinternal mechanismsand
interpersonalsensitivitiesnecessarytomanage the full range of conflictsthatoccur withinthe
groups.
8. Style diversityoccurs whengroupmembersare notonlytolerantof style andbehavioural
differencesbutalsoactivelyseekoutthose differencesnecessarytoperformanddevelop.
9. Networkingreflectsgroupmembers'abilityandwillingnesstolinkupwithothers,external tothe
group.Such contacts can be drawn uponforinformation,support,andassistance whenneededto
facilitate goal achievement.
10. Participationby group membersinabroad range of groupactivitiesanddecisionsfacilitates
memberbuy-in.Participationalsofacilitatesstrategydevelopmentandincreasesmemberself-
efficacy.
Q. 6. Write short notes on the following:
a) Goleman’sModel of Emotional Intelligence.
b) Fielder’sContingencyModel of Leadership
Ans.6- Emotional intelligence isthe capacityforrecognisingourownfeelingsandthose of others,
for motivatingourselves,formanagingemotionswell inourselvesandinourrelationships
Goleman’smodel ofEmotional Intelligence (EI)
Daniel Golemanandthe Hay Group have identifiedasetof competenciesthatdifferentiate
individualswithEI.The competenciesfallintofourclusters:
 Self-awareness:Capacityforunderstandingone'semotions,one'sstrengthsandone's
weaknesses.
 Self-management:Capacityforeffectivelymanagingone'smotivesandregulatingone's
behaviour.
 Social awareness:Capacityforunderstandingwhatothersare sayingandfeelingandwhy
theyfeel andact as theydo.
 Relationshipmanagement:Capacityforactinginsucha way that one isable to getdesired
resultsfromothersandreach personal goals.

7. The most popularandacceptedmixedmodel of EIisthe one proposedbyGoleman(1995). He
viewedEIasa sumof personal andsocial competences.Personal competencedetermineshow we
manage ourselves,whereassocialcompetence determineshow we handle ourinterpersonal
relationships.
Personal competence:-
Personal competence comprisesthree dimensionsof EI,suchas, self-awareness,self-regulationand
motivation.Self-awarenessisthe abilityof anindividual toobservehimself/herself andtorecognise
'a feelingasithappens'(Goleman,1995). The hallmarksof thisabilityare self-confidence,self-
assessmentandopennesstopositivecriticism.Self-regulationisthe abilitytocontrol emotionsand
to redirectthose emotionsthatcanhave negative impact.Trustworthiness,integrity,tolerance of
ambiguity andattitude toacceptchange are some characteristicsof thisability.Motivationisthe
abilitytochannelizeemotiontoachieve agoal throughself-controlandbymoderatingimpulsesas
perthe requirementof the situation.The peoplewhohave thisabilityare optimisticandcommitted
towardsorganisational aswell asindividualgoals.
Social competence:-
Social competence comprisesof twodimensionsnamely,empathyandsocial skills.Empathyisthe
abilitytofeel andshowconcernforothers,take theirperspectiveandtotreat people accordingto
theiremotional reactions.Peoplewiththisabilityare expertsingeneratingandmotivatingothers.
Social skillsare the abilitiestobuildarapportand to manage relationshipswithpeople.People
havingthisskill are veryeffective inpersuasivenessandteammanagement.‘Socialskill’isthe
culminationof all othercomponentsof EIassumingthatpeople caneffectivelymanage socialand
workrelationshipsonlywhentheycanunderstandandcontrol theirown emotionandcan
emphasise withthe feelingsof others.
Fielder’sContingencyModel ofLeadership
Contingencytheoriessuggestthatthere isnoone beststyle of leadershipandthataneffective style
dependsonhowthe leaderadoptsastyle inrelation tothe group andthe situation.A previously
successful style maynotbe effective inanew context.Effective leadershipisaboutfindingagoodfit
betweenthe behaviour,context,andneed.
Fielder’sContingencyModel (FCM) ofleadership:- Thismodel dominatesthe modernliterature on
contingencytheories.FCMpostulatesthatthe leader’seffectivenessisbasedon‘situational
contingency’whichisaresultof the interactionof twofactors,i.e.,leadershipstyle andsituational
favourableness.Thoughover400 studieshave beenconductedusingthistheory,itisnota highly
popularmodel.Fieldersuggestedthatthe leadershipstyleof the leadercanbe measuredbyan
instrumentcalledleastpreferred co-worker.The termanditsuse seemtohave made Fielder
unpopular.He identifiedthree situational componentsthatdeterminethe favourableness of
situationcontrol.Theyare:
 How definedandstructuredthe workis?
 How muchpositionpower(authority) the leaderhas?
 The relationshipbetweenthe leaderandthe followers.
Thoughthere mightbe criticismthatit iscomplex andthe LPC measuresare inaccurate andoften
missesitspredictivevalidity, etc.,thismodel givesusaclearideaof the fitbetweenthe leaderand
the situationandtendstosubstantiate thateffectivenessiscontingentuponthe leader’sorientation
and the situation.