ALLAMA IQBALOPENUNIVERSITY, ISLAMABAD

(Commonwealth MBA/MPA Programme)

Course: Management & Organization (5569)

Level: COL MBA/MPA Programme

Semester: Spring, 2014

Total Marks: 100

ASSIGNMENT No. 1
by
FAISAL SAFDAR KHAN
ROLL NO. AW565146

Assignment #1
Code 5569

Roll No. 565146

(Faisal Safdar Khan)

Q.1 Perception can influence employee performance in organizations. Link the two
stated attributes and support the statement with examples.
(20)

Answer
PERCEPTION
We attach meanings, interpretations and values to our actions as humans. What we do
in the world depends on:

how we understand our place in it,

how we perceive ourselves and our social and physical environment,

How we perceive our circumstances.

Behaviour can be described with terms like reason, motive, intention, purpose,
desire and so on.
Every person perceives the world around him in different ways. The personal
perception of the facts and actions shapes and directs the behaviours. For example, if a
person in an air-conditioned room perceives that it is cold, he will reach for his warm
clothes or wishes to increase the temperature of the thermostat. On the other hand, if
the person standing next to him perceives that it is warm, he will do otherwise /
opposite to the first person. These opposing behaviours can be observed happening at
the same time, irrespective of the actual ambient temperature as measured by a
thermometer. Therefore, it is clear that human behaviour is a function of the way in
which the world around us is perceived.
We often find ourselves unable to understand other people's behaviour. To understand
each other's behaviour, we need to be able to understand each others perceptions.
FACTORS INFLUENCING PERCEPTION
We can classify the factors that influence perception into three main categories:
1. The Perceiver
Following factors in the perceiver affect perception process:
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Attitudes

Motives

Expectations

Interests

Experience

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2. Situation / Conditions

Time

Work Setup or conditions

Social Setup or conditions

3. The Target

Uniqueness

Motion

Sound

Size

Proximity

Background

Similarity

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Q.2 Groupthink is never healthy for organizational development. Explain with the help
of examples.
(20)
ANSWER

GROUP
Two or more individuals interacting and interdependent, who have come together to
achieve particular objectives. Groups may be FORMAL or INFORMAL. Other types of
groups are Command Group, Task Group, Interest Group and Friendship Group.
People join groups due to certain reasons / requirements which may be of social,
official, common interests / nature:

Security

Status

Self-esteem

Affiliation

Power

Goal Achievement

GROUPTHINK
Groupthink is a phenomenon which can lead to flawed group decisions. It usually
occurs in highly organized groups and arises when team members try to avoid being too
critical in ascertaining other team members ideas.
It is Hdefinitely more pleasant for us when we can agree with our group-mates.
Groupthink strives toward achieving consensus within groups by minimizing conflict. In
an environment of groupthink, minimizing conflict becomes the primary goal rather
than producing concrete results or achieving true consensus.
SYMPTOMS OF GROUPTHINK

Illusion of invulnerability:
Group members become overconfident among themselves, allowing them to take
extraordinary risks.

Assumption of morality:
Group members believe highly in the moral rightness of the groups objectives and
do not feel the need to debate the ethics of their actions.

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Rationalized resistance:
Group members rationalize any resistance to the assumptions they have made. No
matter how strongly the evidence may contradict their basic assumptions, members
behave so as to reinforce those assumptions continually.

Peer pressure:
Members apply direct pressures on those who momentarily express doubts about
any of the groups shared views or who question the validity of arguments
supporting the alternative favored by the majority.

Suppression of Innovation
Groupthink suppresses individual thought, and innovation is often a casualty. As a
result, organizations often fail to see or respond to developing market trends or
adopt emerging technologies. A larger danger of groupthink occurs with companies
that are dealing with stressful internal or external conditions or have faced failure in
the past, especially as the result of deviating from standard procedure.
Organizations with a homogeneous work force are also more subject to groupthink
than companies that embrace multiculturalism, a balance between men and
women, and a range of age groups.

Combating Risks / Disadvantages of Groupthink

After Irving Janis discovered groupthink in the early 1970s, extensive efforts sprang up
to combat it, leading to some strategies and tactics still in use. Group members, for
instance, should implement safeguards intended to make effective decisions instead of
decisions protecting the group's cohesiveness. Dissenting opinions should be
encouraged, as groupthink leads members to prematurely commit without considering
objections. Group leaders should encourage rather than punish dissent. Separating the
group into smaller ones may also improve the validity of decisions if all separate groups
reach the same decision. To combat groupthink, acknowledge that the group isn't
perfect. Allow time for decisions to sit with the group before making them permanent.
However, there are some preventative measures that can be taken to reduce the
chances of risk of wrong decisions taken by groupthink, including:

Define rules and processes for decision making and uphold them.

Encourage full participation of every group member.

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Divide group members up into smaller brainstorming groups before sharing ideas
with the larger group.

Support debate and productive conflict in the group.

Make it a priority to examine all alternatives before making a decision.

Invite outside experts in to share their perspectives and insights with the group.

Ask leaders to hold their opinions or ideas until after the group has had a chance
to express their opinion.

Have a designated evaluator or 'devil's advocate' in the group to challenge ideas

and decisions.

Real World Examples of Disadvantages of Group Think

Space Shuttle Challenger Disaster
Perhaps one of the most well-known examples of groupthink can be found in the Space
Shuttle Challenger disaster, which occurred just after liftoff on January 28, 1986. It is
important to note that the Challenger explosion was caused by the hardware failure of
a solid rocket booster (SRB) O-ring, but the decision made by NASA on that day was also
flawed. The decision was simple (to launch or not to launch), the decision was flawed,
and the decision was final.
On the day before the launch, NASA had received a warning from Thiokol - the
subcontractor directly responsible for the development of the SRB O-rings - concerning
the abnormally cold temperatures expected for the day of the launch and the potential
threat to performance it would bring to the O-ring. Because NASA had already delayed
the launch for weather, it was not entertaining the idea of postponing it a second time
for inclement weather conditions. NASA chose to rely on test results on the O-rings
despite Thiokol's warning that the system was also unreliable. Pressures were put on
Thiokol engineers to conform to NASA's desire to launch, so they asked to hold a
private meeting. Within five minutes, Thiokol agreed, without any further objections, to
proceed with the launch.
Groupthink Examples in Business
The Flying Bank is one of the prime entrepreneurial examples of groupthink in business.
This refers to the collapse of Swissair, a Swiss airline company that believed itself to be
so financially stable that it became known as the Flying Bank. Authors Aaron Hermann
and Hussain Rammal described two symptoms of groupthink in their article "The
Grounding of the 'Flying Bank.'" These symptoms were the belief that the group was
invulnerable and its morality superior. Before its collapse, Swissair reduced its company
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board, losing much of its industrial expertise in the process. Experts attribute the
resizing as a factor in groupthink.
Group Think Example in US Govt. Administration
The decision for both US military deployments in the Gulf region helps to prove that
groupthink is not confined to a presidential era and can very well transcend the
boundaries of time so long the needed antecedents exist. Steve Yetiv attempts to
explain this in an analysis of the 1990 decision to deploy troops to the Gulf region to
oust Iraqi forces from Kuwait. He argues that the antecedents of groupthink present in
George H. W. Bushs administration heavily influenced this path to war

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Q.3 Select an FMCG and analyze its decision making models in detail.

(20)

Answer
AN FMCG COMPANY
1.

Likely to produce greatest ROI (Return On Investment)

2.

Likely to be quickest and easiest to implement.

3.

Probably justifying immediate action planning or feasibility study.

4.

Likely to produce good returns if capability and implementation are viable.

5.

Potentially more exciting, stimulating, and rewarding due to challenge, surprise

tactics, and benefits from addressing and achieving improvements.

6.

Only basic awareness, planning, and implementation required to meet these

challenges.

7.

Investment in these issues is generally safe and necessary.

8.

There are advantages of proposition?

Capabilities?

Competitive advantages?

USP's (unique selling points)?

Resources, Assets, People?

Experience, knowledge, data?

Financial reserves, likely returns?

Marketing - reach, distribution, awareness?

Innovative aspects?

Location and geographical?

Price, value, quality?

Accreditations, qualifications, certifications?

Processes, systems, IT, communications?

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9.

Cultural, attitudinal, behavioral?

Management cover, succession?

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Advantages of opportunities:

Speedy Market developments?

Exploit Competitors' vulnerabilities?

Exploit Industry or lifestyle trends?

Seek new markets, vertical, horizontal?

Exploit Niche target markets?

Seek Geographical, export, import?

Exploit Market need for new USP's?

Opportunity for Major contracts, tenders?

Available Information and research?

Opportunity Partnerships, agencies, distribution?

Exploit Market volume demand trends?

Opportunity in Seasonal, weather, fashion influences?

End-user sales control and direction.

Right products, quality and reliability.

Superior product performance vs competitors.

Better product life and durability.

Spare manufacturing capacity.

Some staff has experience of end-user sector.

Have customer lists.

Direct delivery capability.

Product innovations ongoing.

Can serve from existing sites.

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Products have required accreditations.

Processes and IT should cope.

Management is committed and confident

Local competitors have poor products.

Profit margins will be good.

End-users respond to new ideas.

Could extend to overseas.

New specialist applications.

Can surprise competitors.

Support core business economies.

Could seek better supplier deals.

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Summary
Application of the three decision-making models, the seven decision-making strategies,
and the two marketing theories can be seen in current efforts by marketing
practitioners and academicians to tease apart the complex decisions made by
consumers. For example, choice models and conjoint models are multivariate analysis
techniques based on these understandings. Consumers are provided with choices in
controlled environments that, hopefully, control for other difficult variables, and then
the choices are decomposed to understand both the conscious and unconscious
elements driving the consumers' choices.
One limitation for practitioners is important to address at this point. When one is
attempting to manipulate marketing variables such as price or promotion, or even
conduct research into consumer decision-making, it is critical that a solid theoretical
base be used. Without this base, the surveys have the potential of producing

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contradictory or misleading answers, and the attempts to manipulate the variables at

hand may produce less than satisfying results.
In summary, this area of investigation is complex and uncertain, though extremely
promising. The fields of economics, psychology, sociology, and marketing are all deeply
involved in trying to move this research forward, with often-conflicting research
streams and terminology. However, the end resultgaining a better understanding of
how consumers make decisionsis of great theoretical and practical value to all
involved. As such, it will continue to be a major research area in all the above fields.

Note: Both information and insights were provided for this paper by Dr. Daniel Levine,
Professor of Psychology, University of Texas at Arlington.

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Q.4 Transformational Leadership can introduce Ethical behaviour your organization,

explain focusing on your organization of work.
(20)
TRANSFORMATIONAL LEADERSHIP
Transformational leadership is defined as a leadership approach that causes change in
individuals and social systems. Ideally, it creates valuable and positive change in the
followers with the end goal of developing followers into leaders. Transformational
leadership enhances the motivation, morale and performance of followers through a
variety of mechanisms. These include connecting the follower's sense of identity and
self to the mission and the collective identity of the organization; being a role model for
followers that inspires them; challenging followers to take greater ownership for their
work, and understanding the strengths and weaknesses of followers, so the leader can
align followers with tasks that optimize their performance.
The interests of the organization and its members need to be aligned. Such is a task for
the transformational leader. In contrast to the transactional leader who practises
contingent reinforcement of followers, the transformational leader inspires,
intellectually stimulates, and is individually considerate of them. Transformational
leadership may be directive or participative. Requiring higher moral development,
transformational leadership is recognized universally as a concept. Furthermore,
contrary to earlier expectations, women leaders tend to be more transformational than
their male counterparts. Although a six-factor model of transformational/ transactional
leadership best fits a diversity of samples according to confirmatory factor analyses,
whether fewer factors are necessary remains an open question.
Different managers employ distinctly different management styles, ranging from
relatively hands-off, facilitative styles to autocratic, micromanaging styles. Managers
can also employ different motivational strategies and techniques to boost employee
performance or accomplish internal change
The concept of transformational leadership was initially introduced by leadership
expert and presidential biographer James McGregor Burns. According to Burns,
transformational leadership can be seen when "leaders and followers make each other
to advance to a higher level of moral and motivation." Through the strength of their

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vision and personality, transformational leaders are able to inspire followers to change
expectations, perceptions, and motivations to work towards common goals.
Later, researcher Bernard M. Bass expanded upon Burns' original ideas to develop what
is today referred to as Bass Transformational Leadership Theory. According to Bass,
transformational leadership can be defined based on the impact that it has on
followers. Bass suggested that the Transformational leaders gain trust, respect, and
admiration from their followers.
COMPONENTS / QUALITIES OF TRANSFORMATIONAL LEADERSHIP
Bass also suggested that there were four different components of transformational
leadership, also known as Four Is:
1.

Intellectual Stimulation
Transformational leaders not only challenge the status quo; they also
encourage creativity among followers. The leader encourages followers to explore
new ways of doing things and new opportunities to learn.

2.

Individualized Consideration
Transformational leadership also involves offering support and encouragement to
individual followers. In order to foster supportive relationships, transformational
leaders keep lines of communication open so that followers feel free to share
ideas and so that leaders can offer direct recognition of the unique contributions
of each follower.

3.

Inspirational Motivation
Transformational leaders have a clear vision that they are able to articulate to
followers. These leaders are also able to help followers experience the same
passion and motivation to fulfill these goals.

4.

Idealized Influence
The transformational leader serves as a role model for followers. Because
followers trust and respect the leader, they emulate this individual and internalize
his or her ideals.

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The abilities and skills, given above, represent the crux of transformational leadership.
Therefore, the conclusion is that qualities of transformational leadership make the
essence of transformational management and the key to successful management of
transformational organizational changes.
It is becoming increasingly obvious that the full integration of ethical standards into
business practice is not only preferable, but also necessary for long-term organizational
survival. Indeed, ethical behaviours are difficult to legislate for. Minkes et al. (1999)
assert that ethical behaviour is concerned with ought and ought not, not just 'must'
and 'must not'. Therefore it means that there are standards which may extend beyond
what is required by law or which are commercially profitable.
"Transformational leaders...are those who stimulate and inspire followers to both
achieve extraordinary outcomes and, in the process, develop their own leadership
capacity. (Bass and Riggio)
SUMMARY AND CONCLUSION
Transformational leaders help followers grow and develop into leaders by responding
to individual followers' needs by:

empowering them

aligning the objectives and goals of the individual followers, the leader, the
group, and the larger organization."

Researchers have found that this style of leadership can have a positive effect on the
group. In Transformational Leadership, leaders and followers raise each other to higher
levels of morality and motivation.
Goals have been determined to help staff members develop a professional organization
culture, foster employee development and solve problems more effectively. To
accomplish these goals there are a few strategies to consider. It is very important to
get everyone involved in determining organization goals, beliefs and visions at the
beginning of the year. As long as communication lines are open and the employees
work together there will be consistency among them in their performance and in
handling situations. The Management must have high expectations of the employees

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and expect their efforts and commitment to be excessive, but also give this effort
him/herself.
It is important to let them share ideas and experiment with new ideas, posing questions
for others to think about. The needs and wants of the staff should be considered. Also,
their attitudes and philosophies should be heard. Using active listening will show them
that they are cared about. When they feel this, they will likely be more productive.
Bringing workshops to the organization that can involve staff participation gives the
employees an opportunity to share ideas. The management might also hold his or her
own workshop and share new information from other conferences he/she attended
with staff members. When new staff are hired they should be encouraged to
participate in decision-making. They should be informed of this type of leadership for
the organization and what it involves.
Reflective thinking is a process that employees and administrators can use for problem
solving and decision-making. Also, employees who are not happy with this style should
be given the chance to transfer. This helps establish an environment where all those
present are willing to commit fully to the organizations purpose. The management
might also help employees work smarter by placing individual problems in a larger
perspective of the whole organization, therefore they can work together to find
solutions, and avoiding preconceived solutions. The management should not impose
his or her opinion or perspective but support this group effort and guide them by
summarizing key points at meetings.
Also, action research teams or organization improvement teams are a way of sharing
power. This gives everyone responsibilities and involves the staff in governance
functions. Those who do not participate might be asked to be in charge of the
committee.

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Q.5 Process Re-engineering can result in organizational optimization; support this

statement with real life examples.
(20)

ANSWER
PROCESS
A business process is a set of related work activities that are performed by employees
to achieve business goals. Individual processes are combined to increase efficiencies
and productivity. Workers are allowed to make on the spot decisions to eliminate
process roadblocks. This is useful for overall business performance, as well as it can also
increase employee satisfaction and loyalty. Employees can expand their skill and
knowledge into other areas, and have the ability to make decisions that affect their
individual performance.
PROCESS RE-ENGINEERING
Process re-engineering is a method for improving the efficiency and effectiveness of
business processes within and across organisations. Process Reengineering is not
reorganizing, restructuring, downsizing, automation or cost cutting. All of these things
may be a result of a well thought out, well planned and well-executed reengineering
project. However, the individual goals listed should not be the sole reason for a
company to choose to do a process reengineering effort (Carr and Johansson, 1995).
It may appear that process reengineering could be the solution to many of the
performance issues facing businesses today; however, it's time for a reality check.
Basically, a business process is the way we perform our work and business process
reengineering is the process of changing the way we do our work so we do it better to
accomplish the goals of our business.
IMPORTANCE OF BPR
The idea behind business process reengineering is to make your company more flexible,
responsive, efficient and effective for all stakeholders including customers, employees
and owners. In order for BPR to work, the business must be willing to make the
following changes:

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Change the focus from a management focus to a customer focus - the boss is
not the boss, the customer is the boss.

Empower workers that are involved in each process to have decision-making

and ownership in the process.

Change focus from managing activities to focusing on results.

Get away from 'score keeping' and focus on leading and teaching, so employees
can measure their own results.

Change the company's orientation from a functional to a process or crossfunctional orientation. This allows for an increase in organizational knowledge
among its members and a greater degree of flexibility in completing tasks.

Move from serial operations to concurrent operations - in other words,

multitask instead of just doing one thing at a time.

Get rid of overly complex and complicated processes in favor of simple,

streamlined processes. Use the KISS Principle - keep it simple, stupid.

Stop trying to build an empire and protect the status quo, rather invent new
systems and processes that look towards the future.

ORGANIZATIONAL OPTIMIZATION THROUGH PROCESS RE-ENGINEERING

Businesses facing performance issues often find it difficult to differentiate the symptom
from the cause. Many businesses therefore suffer cash flow and profitability losses. Our
Re-Engineering professionals have experience in steering distressed businesses towards
a stronger position. The objective is to assist management to work through periods of
significant financial and operational stress without having to resort to formal
liquidation arrangements. D.R.L Solutions will optimize business process lifecycle to
increase value-added activities and decrease revenue leakage.
Our BPR projects involve modern methodologies, notations and technologies (i.e.
modeling tools) that are designed to facilitate, maximize expected results and enable
process maintenance and adjustment. Such projects can also address any horizontal
(department) or vertical (end-to-end process) subset of an organization, according to
business goals. Additionally, they can extend to IT implementations (i.e. Business
Process Management) and/or Key Performance Indicators (KPIs) definition and
monitoring.
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Greater analytical tools and capabilities give us a broader, farther reaching view of
whats happening, and what might happen. We can better analyze the business impact
of decisions we make.
Our technology solutions include profitability systems, management information
systems and reporting tools that can help:

Produce more accurate P&L forecasts

Implement customer profitability systems

Create the financial reports required for business purposes

Spot trends that will affect business

Understand the impact of changing variables

Apply strategy models

D.R.L builds solutions that take advantage of our understanding of boardroom needs
and technological capabilities. We blend business and technological expertise with data
streams, to create strategic solutions.
Smart businesses view an ERP implementation as an opportunity to optimize
performance through improved business processes and operational governance.
Offering various levels and services to give organizations the flexibility to pick the level
of improvement they want to achieve; D.R.Ls business process reengineering practice
can be deployed at any point throughout software selection or implementation. For
instance, a company can choose to simply gain a baseline understanding of its current
business process (and associated time and waste), it can make improvements and
optimize key business processes, or it can choose to improve and optimize every
business process within its entire organization.
At its core, business process reengineering helps organizations fundamentally rethink
and radically redesign their existing business processes to improve both efficiency and
flexibility. D.R.Ls business blueprinting drives ERP software configuration and
customization specifications via use cases to deliver optimal benefits realization.
We have based our business process reengineering and performance management
service offering by combining approach and principles of improvement with our
methodology. The result is a comprehensive and holistic analysis of the current
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business state and, as requested, a detailed recommendation for improved efficiency

and operational excellence aligned with the organizations overall executive and
operational strategy.
BUSINESS PROCESS REENGINEERING FOCUS AREAS:

Benchmark Assessment

Process Mapping

Change Impact Analysis

Organizational Structure Redesign

Financial Impact Assessment

Business Case and Return on Investment

Continuous Process Improvement

End-user and Executive Training

Leadership and Organizational Change Management Support and Services

BENEFITS OF BPR
A few of the benefits include:

Increased Customer Satisfaction:

Customer satisfaction should improve when an organization employs the use of
BPR. As mentioned in previous programmes when an organization utilizes this
process it is geared towards the customer. As processes are re-engineered and
employees deliver a high quality service the customer seeks to benefit. This is due
to a reduction in the time and cost associated with BPR as those processes that
added no value would have been eliminated.

Increased Employee Satisfaction:

Due to the way business process re-engineering is made it allows the employees
of an organization to have a greater sense of responsibility and accountability.
Employees are driven to deliver a higher quality service to its customers and at
the same time important tasks are performed at the highest standards.
Employees get motivated as BPR reduces the length of time at a task; thus
allowing fewer tasks to be performed in delivering service of a high standard.

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Increased flexibility of the organization:

Traditionally, organizations can be rigid in structure but by the application of BPR
a different environment is created and resultantly the organizational structure is
forced to change. Organizations therefore have to be flexible and adapt to the
changes that will come as a result of the BPR.
An organization and by extension its employees will experience growth as new
ideas emerge to break old assumptions. Thus, it is important to be flexible and
open when incorporating the use of technology in the new environment. This
leads to more productive and willing employees and an organization that opens
up itself to new ventures.

EXAMPLE
One very simple and a short example of BPR at Benazir Bhutto International Airport
(BBIAP) Islamabad is that previously international passengers travelling from Islamabad
to any International destination (departing passengers) had to face long queues in car
parking areas, drop lanes, briefing area entry point, Airport Security Force (ASF)
scanning area, customs clearance area and Anti-Narcotics Force (ANF) checking areas
due to:

Number of international flights operating at very close intervals

Single entry at airport main entry gate

Separate scannings at ASF, Customs and ANF

The problems were identified the CAA airport management and re-engineering of the
processes was recommended which was carried out after obtaining the approval from
the competent authority as follows:

Flights were staggered as far as practicable

More than two additional gates / lanes introduced for entry of vehicles

Integrated scanning system is introduced and implemented for all the three
agencies.

Thus the BRP improved over-all performance of the passenger facilitation system at
BBIAP Islamabad by facilitating the passengers as well as the employees of the various
agencies / functionaries performing duties at the airport.
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SUMMARY
In short, once the organization successfully implements BPR it will see a transformation
in many areas, i.e., reduced costs and time, increased efficiency and effectiveness,
which leads to overall customer satisfaction.
An empowered organization is one in which individuals have the knowledge, skill,
desire, and opportunity to personally succeed in a way that leads to collective
organizational success." (Stephen Covey)
CONCLUSION
Business processes are the lifeline of any organization. These are the work activities
required to provide products and services to customers, end-users, or client groups. An
organization must optimize its business processes in line with its mission and strategic
priorities, to be highly effective. For most organizations, achieving this optimization
requires major changes in policies, procedures, organization structure, management
viewpoint and use of technology.
Most managers are familiar to functional units and activities which can virtually stand
alone. BPR demands for a much different view. The process orientation crosses the
boundaries between organizational sub-units or functions and often crosses
organizational boundaries as well. Under this orientation, a vertical view of an
organization is replaced by a horizontal view of many interlocking processes. Together,
all of the processes in an organization form a total delivery system for services and
products. Real value-added comes from the integration of activities across processes.

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References

Lectures / Presentations by Mrs Javeria, AIOU Islamabad.

Bass, B. M. (1985). Leadership and Performance. N. Y: Free Press.

Bass, B. M. & Riggio, R. E. (2008). Transformational Leadership. Mahwah, New

Jersey: Lawrence Erlbaum Associates, Inc.

Burns, J. M. (1978). Leadership. N.Y: Harper and Raw.

Riggio, R.E. (2009, March 24). Are you a transformational leader? Psychology
Today. Found online at http://blogs.psychologytoday.com/blog/cutting-edgeleadership/200903/are-you-transformational-leader

http://www.mun.ca/educ

Business Process Reengineering Online Learning Center. Business Process

Reengineering.

Retrieved

January

28,

2004

from

http://www.prosci.com/reengineering.htm

http://www.reconciliation.gov.vc

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