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

Assignment (60 Marks)

Q1. Describe the concept of vision and mission in an organization. AnsVision and mission Every organisation has a vision and mission. In the case of Raju, he may not have expressed it in a statement, i.e., it may not be explicit; but perhaps if you had talked with him, you would come to know that he wants to provide faultless tables to the people, earn money, provide for his family, get social status in the process, etc. A vision statement is a formal statement of what a business wants to be. But who decides what it wants to be? Well, it is not only Raju, but also the customers, the employees, and the society or in other words those who have an interest in the business because they get some benefit out of it. They are called stakeholders. In our case, Raju (owner or promoter or shareholder), the other carpenters (employees), the saw mill (supplier), the shops (distributors), banks who may have given loan (the financiers), and the people who bought the tables and chairs (the customers) are all stakeholders. So the vision cannot be made by the owner alone. He has to fulfill the wishes of the stakeholders. An owner who puts in money has to ask other people before deciding his/her vision. Yes, strange but true. How do we make a vision? Well, there has been a lot of research on this and various views. But Collins and Porras in their noted article Organisational Vision and Visionary Organisation spelt out that a vision statement has to have four parts namely: 1) Core values, 2) Core purposes, 3) The Big Hairy Audacious Goal or BHAG (pronounced as Beehag) and the vivid description.

Q2. (a) Define planning. (b) Explain the importance of planning. (a) Define planning:- Planning can be defined as a basic management function which enables
one to select the purpose of the business, and how the resources should be mustered to achieve that purpose to include using the available resources optimally to do that. Planning implies goal setting for the organisation keeping in mind the constraints, opportunities, and threats as much as what the person or business which is planning wants to do. Thus, a plan is a blueprint for goal achievement, a blue print that specifies the necessary resource allocations, schedules, tasks, and other actions to achieve the purpose. A goal is a desired future state that the organisation attempts to reach. Goals are important because an organisation exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify the means to do that. In Unit 1, we saw the idea of vision and mission and therefore, we can state that the method we choose to achieve the vision and execute the mission is planning. Therefore, planning is about looking ahead.

(b) Importance of planning:- Planning implies goal setting for the organisation keeping in mind
the constraints, opportunities, and threats as much as what the person or business which is planning wants to do. Planning answers six basic questions in regard to any activity: What needs to be accomplished? What are the alternative routes to it? When is the deadline? Where will this be done? Who will be responsible for it? How will it get done? How much time, energy, and resources are required to accomplish this goal? Planning is important for the following reasons: development and prospects. framework within which a business can develop and pursue business.

Q3. (a) Why leading is important? (b) What are the characteristics of leading? (a) Importance of Leading Leading or leadership function is said to be the heart of
management process. Therefore, it is the central point around which accomplishment of goals take place. A few philosophers call leading as Life spark of an enterprise. It is also called as an actuating function of management because it is through direction that the operation of an enterprise actually starts. Being the central character of an enterprise, it provides many benefits to a concern which are as follows: 1. Initiates actions Leading is the function which starts the work performance of the followers or subordinates. Mrs. Rakhi of Sambhavi initiated the actions by giving goals to the employees. She could have given direction, rules, and regulations. The work would perhaps still have been done but not with so much enthusiasm. Further, leading has a self perpetuating component in that the led knows where to do and therefore, even if they take different routes, ensure that the destination is reached more efficiently and effectively. This happens because of the human characteristics discussed in earlier section where we discussed the goal oriented behaviour under human factor 2. Sustains action Direction, much like leading initiates action but these directions have to be repeated if the actions have to go on. Leading on the other hand ensures that the actions go on and course corrections are done automatically by the followers because of their innate belief in the goal being something desirable to follow. When they face obstacles, they would either fall back on the leader if the obstacles are too huge to overcome. This is done when the leading process would ensure that additional resources including pooled wisdom are pumped in to resolve it. 3. Integrates efforts Through leading, the superiors are able to guide, inspire, and instruct the subordinates to work. When every employee, team leader, and division leader knows that his/her reaching the goal is dependent on others effort, there is a natural flow of inter team and interdepartmental information. If you had been directing, this relation will not only be forced but also monitored. Literature on directing will often speak of the need for effective communication and often communication is considered as the key to directing.

Means of motivation Leading helps in achievement of goals. A manager makes use of the element of motivation to improve the performances of subordinates. This can be done by providing incentives or compensation, whether monetary or non-monetary, which serves as a morale booster to the subordinates. Motivation is also helpful for the subordinates to give the best of their abilities, which ultimately helps in growth. You saw how the employees of Sambhavi are praised and rewarded. 5. Provides stability Stability and balance in a concern becomes very important for a longterm survival in the market. This can be brought upon by the managers with the help of four tools or elements of leading function - judicious blend of persuasive leadership, effective communication, clear performance goals, and efficient motivation. Stability is very important since that is an index of growth of an enterprise. Therefore, a manager can use of all the four traits in him/her so that the performance standards can be maintained. 6. Copes with the changes It is a human behaviour to show resistance to change. Adaptability with changing environment helps in sustaining planned growth and becoming a market leader. It is a directing function which is of use to meet the changes in the environment, both internal and external. But when it comes to leading, there is a much natural flow to change as people automatically embrace change and adapt to their journey towards the goal. It is the role of the manager to communicate the nature and contents of changes required for reaching the goal very clearly to the subordinates.

(b) Characteristics of Leading

Pervasiveness Leading is required at all levels of organisation. It is incorrect to believe that leading is required only at the top level. This is more so in the modern context where teams are the working entities. In team based working, the team leader has to act much like a CEO except that the level of working may be much smaller. He/she may be motivating a team of 5 or 10 people while the CEO may be motivating the whole company, but the function of giving targets, resources, support, motivating, etc. does not change. Continuity Leading is a continuous activity as it is continuous throughout the life of organisation. It takes place on a day to day basis though its importance may become higher when the organisation is undergoing a change. Human factor Leading implies the existence of followers much like directing implies the existence of subordinates to whom one can pass orders. It follows that there is a key human factor in leading and because human factor is complex and behaviour is unpredictable, leading function is important and people have to learn the art of leading.

Creativity Leading is a creative activity because of the human factors and individual variances and group variances. Executive function Leading is carried out by all managers and executives at all levels throughout the working of an enterprise. A follower receives tasks, resources, know-how, and support from a leader and he/she trusts his/her leader to do the same

Q4. (a) Define organisation behaviour (OB). (b) What are the limitations of OB?

(a) Organisation Behaviour (Ob):-OB can be defined as a systematic study that investigates
the impact of individuals, groups and organisational factors on productivity to include effectiveness and efficiency, absentee, turnover, organisational citizenship behaviour and job satisfaction. 1. By systematic study we mean looking at relationships and attempting to attribute causes and effects, and drawing conclusions based on scientific evidence. 2. By absenteeism we mean failure to report to work especially without informing. 3. By turnover we mean voluntary and involuntary permanent withdrawal from an organisation (simply put exiting or quitting). 4. By organisational citizenship we mean discretionary behaviour that is not part of an employees formal job requirements, but that nevertheless promotes the effective functioning of the organisation. 5. By job satisfaction we mean a general attitude towards ones job; the difference between the amount of reward the workers receive and the amount they believe they should receive. You also learnt the prerequisites of effective control and the various control techniques. Over the years, most management discussions have shifted to the term organisation rather than industry. The main reason for this is the acceptance of the increasing role of human beings in organisations. Although this might have always been so, the metamorphosis in the terminology has perhaps come about because of the shift to service based economy i.e., companies involved in services like healthcare, hospitality, insurance surpassing the manufacturing services. (b) Limitations of OB OB has some important limitations. These are: m. They tend to look only at the 'behavioural basis', which gives them a narrow view point. This tunnel vision often leads to satisfying employee experiences while overlooking the broader system of an organisation in relation to all its public. states that at some point increase of a desirable practice produces declining returns and sometimes negative returns when that point is exceeded). For example, too much of freedom and security could lead to less employee initiative and growth after reaching a level and to complacency after that. This relationship shows that organisational effectiveness is achieved not by having more and more of a particular factor but appropriate level of it. concern. Its knowledge and techniques could be used to manipulate people without regard for human welfare. People who lack ethical values could use people in unethical ways.

Q5. (a) What is meant by emotional intelligence? (b) What is the impact of emotional intelligence on managers?
(a) Emotional Intelligence

"Emotional intelligence is the capacity for recognising our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships." (Snow, 2001) Personal competence Personal competence comprises three dimensions of EI, such as, self-awareness, selfregulation and motivation. Self-awareness is the ability of an individual to observe himself/herself and to recognise 'a feeling as it happens' (Goleman, 1995). Social competence Social competence comprises of two dimensions namely, empathy and social skills. Empathy is the ability to feel and show concern for others, take their perspective and to treat people according to their emotional reactions. People with this ability are experts in generating and motivating others.

Emotional Intelligence and its Impact on Managers

Emotional intelligence is the capacity for recognising our own feelings and those of others, for motivating ourselves, for managing emotions well in ourselves and in our relationships." (Snow, 2001) Golemans model of Emotional Intelligence (EI) Daniel Goleman and the Hay Group have identified a set of competencies that differentiate individuals with EI. The competencies fall into four clusters: elf-awareness: Capacity for understanding one's emotions, one's strengths and one's weaknesses. -management: Capacity for effectively managing one's motives and regulating one's behaviour. are saying and feeling and why they feel and act as they do. results from others and reach personal goals. The most popular and accepted mixed model of EI is the one proposed by Goleman (1995). He viewed EI as a sum of personal and social competences. Personal competence determines how we manage ourselves, whereas social competence determines how we handle our interpersonal relationships. Let us now learn each of the competencies in detail. Personal competence Personal competence comprises three dimensions of EI, such as, self-awareness, selfregulation and motivation. Self-awareness is the ability of an individual to observe himself/herself and to recognise 'a feeling as it happens' (Goleman, 1995). The hallmarks of this ability are self-confidence, self-assessment and openness to positive criticism. Self-regulation is the ability to control emotions and to redirect those emotions that can have negative impact. Trustworthiness, integrity, tolerance of ambiguity and attitude to accept change are some characteristics of this ability. Motivation is the ability to channelise emotion to achieve a goal through self-control and by moderating impulses as per the requirement of the situation. The people who have this ability are optimistic and committed towards organisational as well as individual goals. Social competence Social competence comprises of two dimensions namely, empathy and social skills. Empathy is the ability to feel and show concern for others, take their perspective and to treat people according to their emotional reactions. People with this ability are experts in generating and motivating others. Social skills are the abilities to build a rapport and to manage relationships with people. People having this skill are very effective in persuasiveness and team

management. Social skill is the culmination of all other components of EI assuming that people can effectively manage social and work relationships only when they can understand and control their own emotion and can emphasise with the feelings of others. Assessment of EI and competence If EI is important, then assessing it in a way similar to IQ is important. The earlier view that there is nothing new in EI is now rather weak as research now suggests that EI, and particularly the new measures that have been

Q6. Suppose you are the Team Manager in a multinational company with team strength of 10 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?