Name Nitin Jain Course MBA-I Roll No 521107680

MB0038 Management Process & Organizational Behaviour (Book ID: B1127) Assignment Set-2

Q1. State the Characteristics of Management. A1

Management is the creation and maintenance of an internal environment in an enterprise

where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals. Management is a distinct activity having the following salient features or characteristics: 1. Goal-oriented : Management is a purposeful activity. It co-ordinates the efforts of employees to achieve the goals of the organization. It is imperative that the organizational goals must be well-defined and properly understood by the managers at various levels. 2. Economic Resource : Management is one of the factors of production together with land, labour and capital. These factors do not by themselves ensure production; they require the catalyst of management to produce goods and services required by the society. Thus, management is an essential ingredient of an organization. 3. Distinct Process : Management is a distinct process consisting of such functions as planning, organizing, staffing, directing and controlling. In essence, the process of management involves decision-making and putting of decisions into practice. 4. Integrative Force : The essence of management is integration of human and other resources to achieved the desired objectives. Managers also seek to harmonize the individuals goals with the organizational goals for the smooth working of the organization.

5. Intangible Force: Management has been called an unseen force. People often remark of the effectiveness of management on the basis of the end results, although they cannot observe it during observation. 6. Results through others: The managers cannot do everything themselves. They must motivate the subordinates for the accomplishment of the tasks assigned to them. 7. A Science and an Art: Management has an organized body of knowledge consisting of well-defined concepts, principles and techniques which have wide applications. Since the skills acquired by a manager are his personal possession, management is viewed as an art. 8. System of Authority: Management as a team of managers represents a system of authority, a hierarchy of command and control. 9. Multi disciplinary subject: Management has grown as a field of study taking the help of so many other disciplines such as Engineering, Anthropology, Sociology and Psychology. 10. Universal Application: Management is universal in character. The principles are working guidelines which are flexible and capable of adaption to every organization where the efforts of human beings are to be co-ordinated.

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Q2. Mr. Suresh Kumar is the VP-HR of a leading financial services company. He is having a meeting with Ms. Rejani Chandran leading HR consultant. Mr. Suresh is concerned about creating an environment that helps in increasing the job satisfaction amongst employees. Assume that you are Ms. Rejani, the HR consultant. What suggestions you will give to Mr. Suresh, for creating an environment that increases job satisfaction? A2. Job satisfaction is the sense of fulfillment and pride felt by people who enjoy their work and do it well. As Ms. Rejani Chandran some of the following suggestions are to be given to Mr. Suresh in regarding increases job satisfaction: 1. Mentally Challenging Work : Employees tend to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom and feedback on how well they are doing. 2. Personality Job Fit : People with personality types congruent with their chosen vocations should find they have the right talents and abilities to meet the demands of their jobs; and because of this success, they have a greater probability of achieving high satisfaction from their work. 3. Equitable Rewards : Employees want pay systems and promotion policies that the perceive as being just, unambiguous, and in line with their expectations. Individuals who perceive that promotion decisions are made in a fair and just manner are likely to experience job satisfaction. 4. Supportive Working Conditions : Employees prefer physical conditions that are comfortable and facilitate doing a good job. Further, employees prefer working relatively close to home, in clean and relatively modern facilities and with adequate tools and equipment. 5. Supportive Colleagues : Employees have need for social interaction. Most employees want their immediate supervisor to be understanding and friendly, those who offer praise for good performance, listen to employees opinions and show a personal interest in them. 6. Whistle blowing : Whistle-blowers are employees who inform authorities of wrong doings of their companies or co-workers. Organizations can manage whistle blowing by communicating the conditions that are appropriate for the disclosure of wrong doing. 7. Social Responsibility : Corporate social responsibility is the obligation of an organization to behave in ethical ways in the social environment in which it operates. Managers must encourage both individual ethical behavior and organizational social responsibility.

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Q3. Define Emotional Intelligence. Explain Golemans Model of Emotional Intelligence. A3. Emotional Intelligence :Emotional intelligence is a relatively recent behavioral model, rising to prominence with Daniel Golemans 1995 Book called Emotional intelligence. The early emotional intelligence theory was originally developed during the 1970s and 80s by the work and writings of psychologists Howard Gardner. Emotional Intelligence is an important consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and more. Emotional intelligence is the capacity for recognizing our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships. Emotional intelligence is the ability to manage ourselves and our relationship effectively. Each capability is composed of a set of competencies. When psychologists began to write and think about intelligence, they focused on cognitive aspects, such as memory and problem solving. Emotional intelligence is an aggregate of individuals cognition of own and others emotions, feeling, interpretation and action as per environmental demand to manipulate the consequences which in turn result in superior performance and better human relationship. Golemans Model of Emotional intelligence Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with Emotional intelligence. The competencies fall into four clusters: 1. Self-Awareness : Capacity for understanding ones emotions, ones strengths, and ones weaknesses. 2. Self-Management : Capacity for effectively managing ones motives and regulating ones behavior. 3. Social Awareness : Capacity for understanding what others are saying and feeling and why they feel and act as they do. 4. Relationship Management : Capacity for acting in such a way that one is able to get desired results from others and reach personal goals. The most popular and accepted mixed model of emotional intelligence is the one proposed by Goleman (1995). He viewed Emotional Intelligence as a total of personal and social competencies. Personal Competence determines how we manage ourselves, whereas social competence determines how we handle our interpersonal relationships.

Golemans Emotional Intelligence Model

Emotional Intelligence

Personal Competence

Social Competence

Self- Awareness Self- Regulation Motivation

Empathy Social Skills

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Q4. Explain the Different Leadership Styles as per Managerial Leadership Grid Theory. A4. The Managerial Grid was the original name; the modifications were made by Robert R Blake and Anne Adams McCanse. After the modifications it was named as leadership Grid. Some of the Leadership Styles as per Managerial- Leadership Grid theory are as follows: A. 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. Examples of Leader Speak: I distance myself from taking active responsibility for results to avoid getting entangled in problems. If forced, I take a passive or supportive position. B. 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. Examples of Leader Speak: I support results that establish and reinforce harmony. I generate enthusiasm by focusing on positive and pleasing aspects of work. C. 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. Examples of Leader Speak : I expect results and take control by clearly stating a course of action. I enforce rules that sustain high results and do not permit deviation. D. 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 work 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.

Examples of Leader Speak: I endorse results that are popular but caution against taking unnecessary risk. I test my opinions with others involved to assure ongoing acceptability. E. 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. 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. Examples of Leader Speak: I initiate team action in a way that invites involvement and commitment. I explore all facts and alternatives views to reach a shared understanding of the best solution.

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Q5. Distinguish Between Internal and External Forces of Change. A5. Forces for a change are of two Types : Internal forces External forces Internal Forces Any change in organizations internal factors may also necessitate change. Such a change is required because of two reasons: change in managerial personnel and deficiency in existing organizational practices. Change in the Top Management: Change in the top management and consequent change in the ideas to run the organization also leads to change in the system, structure and processes. Old managers are replaced by new managers which are necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working into the organization. Moreover, attitudes, ideology, leadership style of the person may be different from the earlier one, this will reflect in their actions and decisions. The result is that an organization has to change accordingly. Change in Size of the Organization: Change in the organizations size leads to change in the internal structure and complexity of the operations in the organization. Performance Gaps: When a gap between set targets and actual results (in terms of market share, employee productivity and profit) is identified, organizations face the forces to change and reduce the gap. Employee Needs and Values: With changing needs and values of the employees, organizations change their policies. For example, attractive financial incentives, challenging assignments, vertical growth opportunities and autonomy at work may be provided in an organization to attract and retain its effective employees.

Deficiency in Existing Organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement and process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack of co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of co-operation between line and staff and so on.

External Forces Each organization has goals and responsibility related to others in its environment. The present day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technological, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions, production process, labourmanagement relations, nature of competition, economic constraints, organization methods, etc. In order to survive in the changing environment, organization must change. Technology: Technological changes are responsible for changing the nature of the job performed at all levels in an organization. When the organizations adopt a new technology, its work structures are affected and a new equilibrium has to be established. For example, computers and automation have made significant impact on organizational functioning. Business scenario: Due to rapid changes in the business scenario with increasing competition and global economy, the needs and demands are also changing among the customers, suppliers and other stakeholders. There may be two types of forces which may affect the competitive position of an organization other organizations supplying the same products and, buyers who are buying the products. Any change in these forces may require suitable changes in the organization. Similarly, there may be change in buyers in terms of their needs, liking-disliking, and income disposal for a product which meet buyers requirements. Environmental and National factors: Environmental factors such as economic, political and demographic and legal factors play a vital role in devising organizational policies and strategy. For example, organizations may have to change their employment policies in accordance with the govt. policy. Social changes: Social changes reflect in terms of peoples aspirations, their needs, and their way of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization.

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Q6. What are the 14 principles of Management of Henri Fayol? A6. The 14 Management Principles from Henri Fayol (1841-1925) are: 1. Division of Work : Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive. 2. Authority : The right to issue commands, along with which must go the balanced responsibility for its function. 3. Discipline : Employees must obey, but this is two-sided: employees will only obey orders if management plays their part by providing good leadership. 4. Unity of Command : Each worker should have only one boss with no other conflicting lines of command. 5. Unity of Direction : People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it. 6. Subordination of Individual Interest : (to the general interest). Management must see that the goals of the firms are always paramount. 7. Remuneration : Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system. 8. Centralization : (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel. 9. Scalar Chain : (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels. 10. Order : Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.

11. Equity : In running a business a combination of kindliness and justice is needed. Treating employees well is important to achieve equity. 12. Stability of Tenure of Personnel : Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely. 13. Initiative : Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of personal vanity on the part of many managers. 14. Esprit de Corps : Management must foster the morale of its employees. He further suggests that: real talent is needed to coordinate effort, encourage keenness, use each persons abilities, and reward each ones merit without arousing possible jealousies and disturbing harmonious relations.

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