Master of Business Administration- MBA Semester 1 MB0038 Management Process and Organizational Behaviour - 4 Credits (Book ID:B1621) Assignment

Set- 2 (60 Marks)

Master of Business Administration- MBA Semester 1 MB0038 Management Process and Organizational Behaviour - 4 Credits (Book ID:B1621) Assignment Set- 2 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions Q-1What are the principles of management? Answer: The 14 principles of management of Henri Fayol are: 1. Specialization of work: Henri Fayol proposed that a specialization of work increases output by making employees more efficient. 2. Discipline: Employees must obey orders, and the organization should stress the importance of following rules and orders. 3. Authority: Managers must be able to give orders; therefore the organization must give managers the legitimate authority to give orders to subordinates. 4. Unity of command: Every employee should only have one boss to report to. 5. Unity of direction: Each activity performed by the organization should only have one manager giving directions. 6. Subordination of individual interest: The individual interest of an employee should never take precedence over the interest of the organization. 7. Remuneration policy: Employees should always be paid a fair payment for their services to the organization. 8. Centralization: Decisions should generally be taken by top management, and not by the subordinates of the company. 9. Scalar chain of command: Communication from the top of the organization to the employees should always follow a scalar chain of command, meaning that communication should preferably flow top-down. 10. Order: All materials and employees should have a prescribed place, where they should always be found. 11. Equity: There should always be a principle of fairness about how the organization treats its employees. 12. Personnel tenure: Limited employee turnover is generally a good thing, and good employees should be offered lifetime employment. 13. Initiative: Employees should be given the ability to show individual initiative, which will result in great results for the company.

14. Esprit de corps: There should be harmony and cohesion between members of the organization, which would result in high work moral and motivation.

Q-2 What are the characteristics of leading? Answer-2 If you want to be a great leader it requires some indispensable characteristics and qualities. I have already written on some important Qualitys of a Leader, so today lets focus on some characteristic of an effective leader. 1. Visionary- A leader must have a clear picture of the future while remaining focused on the present. This can be hard because as Jonathan Swift said, Vision is the art of seeing things invisible. If a leader takes the time to think about the future of their industry and the possible changes, then they will see the invisible and stay ahead of todays fast paced society. Effective leaders have a clear picture of the future then gather people around them who can produce results which lead to the vision being accomplished. 2. Team Builder- An essential characteristic of leading others is the ability to build and maintain teams of people. Good leaders know the value of having a united team that can effectively work together to produce results. This can be done if a leader puts the right people in the right places within the team or organization. Doing this requires taking the time to know and understand your people 3. Communicator- A leader needs to be able to effectively communicate with others, both verbally and non-verbally. The leaders words and body language needs to be lined up with the message they are communicating. Becoming a better communicator is a skill every leader must develop. This is because so much of leadership is about communicating. James Humes said, The art of communication is the language of leadership. 4. Change Agent- Leaders need to avoid the dangers of not changing by becoming change agents. The status quo might be to stay the same and resist change but effective leaders chose to rise above the status quo and create change. Great organizations and teams only happen if the leader is moving forward. Many of the businesses and organizations that have fallen during the recession were resistant change and kept doing what they have always done. Those who have stayed strong have leaders who were creating change. 5. Producer- Effective leaders have the ability to produce and can influence others to produce results in given areas. The true test of an effective leader is their ability to produce desired results, whether its individual or team results. Its wise to remember leadership and results are closely connected with each other. Q.3 Briefly explain the four main approaches to Organisational Behaviour Answer- Briefly explain the four main approaches to Organisational Behaviour. Maslow's Hierarchy-: Perhaps the most famous theorist on the topic of human behavior was Abraham Maslow, who developed his theory on the hierarchy of needs in 1943. Essentially, Maslow proposed that humans attempt to satisfy their needs in order beginning with the most basic and do not move ahead to more complex needs until satisfying the basic needs first. The hierarchy of needs progresses from the most basic needs for food and shelter to the need for safety, the need for belonging and acceptance, the need for esteem and, finally, the need for self-actualization. To understand organizational behavior, many look to Maslow's hierarchy, particularly the last three levels, to help understand why individuals and groups behave the way they do within organizations.

Herzberg's Approach-: According to Frederick Herzberger, two basic types of motivation drive employees. The first he named "hygiene factors," which include working conditions, quality of supervision and the nature of the job, among other things. Hygiene factors can detract from an employee's level of motivation. The second group of factors is called "motivation factors," which include growth, recognition and achievement, among others. Motivation factors add to an employee's motivation. Essentially, Herzberg believed that employees' behavior is based primarily on these two sets of motivations. Expectancy Theory-: The expectancy theory is a theory of organizational behavior that individuals are primarily motivated by three concepts: valence, instrumentality and expectancy. Valence refers to the desirability of certain outcomes to a particular employee or individual. Instrumentality describes the employee's perception of the impact of specific behaviors on the outcome of a project. Expectancy illustrates the employee's perception of his individual behavior on the outcome of the project. Alderfer's ERG Approach-:Clayton Alderfer used Maslow's hierarchy of needs to develop his own model of motivation, called the ERG approach. Like Maslow, Alderfer ranked needs in a hierarchy but condensed Maslow's five needs into three: existence, relatedness and growth (ERG). An important difference of the ERG approach from Maslow's hierarchy is that the ERG approach holds that different needs can be pursued simultaneously. From an organizational behavior standpoint then, the ERG approach makes understanding motivations and needs that much more complex. Q-4Explain the five major leadership styles as per the Managerial Grid theory. Answer: The Managerial Grid was the original name which was the modifications were made by Robert R Blake and Anne Adams McCanse. After the modifications it was named as Leadership Grid. Figure: Leadership Grid

Leadership Grid an approach to understanding a leaders concern for results (production) and concern for people

The five major leadership styles specified as per Managerial Leadership Grid Theory: 1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude) In this style, managers have low concern for both people and production. Managers use this style to avoid getting into trouble. The main concern for the manager is not to be held responsible for any mistakes, which results in less innovative decisions. A leader uses a delegate and disappear management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles. 2. The country club style (1, 9). The accommodating Leader (Yield & Comply) This style has a high concern for people and a low concern for production. Managers using this style pay much attention to the security and comfort of the employees, in hopes that this would increase performance. The resulting atmosphere is usually friendly, but not necessarily that productive. This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more punitive coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. 3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate) This believes in the authority-obedience. With a high concern for production, and a low concern for people, managers using this style find employee needs unimportant; they provide their employees with money and expect performance back. Managers using this style also pressure their employees through rules and punishments to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or perceived failure. This is used in case of crisis management. People who get this rating are very much task-oriented and are hard on their workers (autocratic). There is little or no allowance for co-operation or collaboration. Heavily task-oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someones creativity), so it is difficult for their subordinates to contribute or develop. 4. The middle-of-the-road style (5, 5). The Status Quo Leader. (Balance & Compromise) It is Organization man management approach, which believes that the adequate organization performance is possible through balancing the necessity to get out wprk with maintaining morale of people at satisfactory level. Managers using this style try to balance between company goals and workers needs. By giving some concern to both people and production, managers who use this style hope to achieve acceptable performance. 5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit) This is based on the aspect that work accomplishment is from committed people; interdependence through a common stake in the organization purpose leads to relationships of trust and respect. In this style, high concern is paid both to people and production. As suggested by the propositions of Theory Y, managers choosing to use this style encourage teamwork and commitment among employees. This method relies heavily on making employees feel as a constructive part of the company. This type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams.

Q-5List some of the commonly found perceptual biases

Ans: (1) Fundamental attribution error-: This is the tendency to underestimate the influence
of external factors and overestimate the internal ones e.g., the assistant manager may not attribute that the managers action is because of the strict instructions from the head office and his own earlier grooming in another context and attribute that this person is not customer friendly and does not know the Sambhavi culture. (2)Self serving bias-: Tendency of people to attribute success to internal factors and failure to external factors e.g., the manager may attribute that the outlets success is due to his strict following of the rule book (until he found out otherwise when the revenue fell after the departure of the assistant manager) and failure to external factors e.g., he may feel that the revenue fell because the old time employees had ganged up against him. (3) Selective perception -: When we see a person, object or event some things stand out. You may judge a film based only on the hero or the music rather than the whole movie. When you evaluate a plan, you might miss out some data. (4)Halo effect-: Previous success creates a halo and we feel that he will be successful again e.g., halo of SachinTendulkar and our feeling that every time he goes to the ground, he should hit a century and if he does not, we further attribute it to some outside factors than his inability to do so. This happens in work place also. Sambhavis employers told Rakhi that she had taught them to serve customer in a particular way and since she was an adorable person in many other ways, she cannot be wrong in this. This is a halo effect. (5) Contrast effects -: Individuals do not evaluate a person in isolation. In the Sambhavi case, employees commented on the manager because his actions were perhaps in contrast to others or in contrast to the values in the organization as imbibed by them. Either way there was a contrast. (6)Projection-:Our tendency to feel and see that others are like us and taking decisions on the premise that others want what we want, is called projection. Thus the manager in Sambhavi may think that all the other managers and assistant managers are like him and therefore, his idea of service basedon the rule book, are what others also believe in, are what we call projection. (7)Stereotyping-: Stereotyping is judging someone on the basis of our perception of the group to which he or she belongs. It is a means of simplifying a complex world and it permits us to maintain consistency. The problem, of course, is when we inaccurately stereotype and often we believe that she is adwoman and therefore, she should act this waybased on gender stereotyping or he is an old manand therefore will not understand computers can be based on age based stereotyping. Q6. Suppose you are the Team Manager in multinational company with team strength of 12 members. You are given the responsibility of ensuring that the team gives excellent performance or results. What are the key issues you have to handle in team building? Ans: (1) Have clear expectations and context: Have clear performance targets and expectations from the team. The team should get sufficient resources-people, time and money. Their work should receive sufficient emphasis as a priority in discussions. This makes the team feel that they. Matter and then they perform. A classic example is the Nano team which was directly supported by Rattan Tata. Equally important is that the team understands the role and importance of their work and its strategic importance. Of course, this may not be so for some temporary teams such as a team

created to celebrate an annual or award function. The team members should be able to define their importance if a team has to yield results (2)Commitment: All team members may not be equally committed. First, ensure that all the members believe in the mission and anticipate recognition for their contribution. They expect their skills to grow and develop and they should feel excited and challenged by the opportunity. Only then does a team work well. Those without commitment are better out of the team.iii) Team design and competence: The next important aspect is having adequate competences. If the team is to improve a process; it should have people with expertise in each step of the process. Therefore, it is not sufficient to get some people together, but it is necessary to get people with the requisite competencies. If one fails in this, the teams may not perform or underperform. The team design should be such that the competencies required to accomplish the task are included. In addition to the technical competencies which vary from task to task, teams succeed if they have the right managerial or leadership competencies. The team wheel is one structure that we can look at to ensure that the competencies mentioned therein are included. Researchers have experimented with the team wheel and trained people in the deficient areas tonsure better team successive) Charter of performance: The team should take the assigned responsibility as its mission. This is the crux of a successful team. It must define its goals, the outcomes, the timelines, measuring success, and the process to accomplish tasks. Equally, the support of top leadershipfor the work of the team is a precondition. The task of the team should be a task derived from thetop management if it has to succeed.v) Control and coordination: Any management function works through controls andcoordination and teams are no exception. Some of the issues to be considered are what are thecontrols the team members accept and impose on themselves, what are the limitations in terms ofmoney, time, how far the members should go in pursuit of the solutions, what is the degree offreedom and the chain of reporting. To succeed, the teams should have sufficient freedom and amechanism for self regulation and coordination. One of the challenges in doing it is theinterdepartmental nature of the team and the interdepartmental conflicts which are often taken tothe team usually by denying a resource or an appropriate skill. The top management can addressthis challenge through incentives and motivation.