SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

Student Name: Abhinav Tyagi

Registration Number: 1305008208
Subject Name: Management Process and Organizational Behaviour

Course: MBA
LC Code: 3110
Subject Code: MB0038

Q1. Describe the concept of vision in an organisation with an example. How is it

different from mission statement?
Answer- Vision and mission
Every organization has a vision and mission. 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 a particular
person, 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
stakeholder. The vision cannot be made by 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 or her
vision.
In the Collins and Porras Format, the vision and mission are fairly well integrated. Vision is
the state that one want to be in and mission is the way of doing it. The Mission statement can
be separated one or it can be rolled into one but Collins and Porrasmodel has been gaining
popularity of late because it encapsulates the vision and mission into one and anchors the
value.
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.
Let us now discuss each of these parts in detail.
The core values are those things very close to your heart that you will not give up at
any cost. It can be integrity (for example, I will never cheat on the taxes I have to
pay) or quality (I will never use a lower quality wood), etc. Usually we say that you
should have only 4 to 6 core values. Of course, personal values and business values
may differ
Core purpose is the purpose of the organisation, for example, to make furniture. This
is something that you want to achieve within the framework of our core values. It
gives the achievement orientation to the business and therefore the focus. When we
get an opportunity to expand or sell off and if we are in a decision dilemma, this acts
as another light house.
The BHAG is about having a goal which qualifies the purpose. For example, to be the
best furniture maker in the town in five years or to be the most well known furniture
supplier in India by 2025, etc. We say that BHAG should be big, yet specific and that
your chance of attaining it is only 70%. If the probability of attaining it is more than
70%, perhaps your BHAG is not big enough and not audacious enough and you have
set your goals too low.
The vivid description should make the entire vision statement very inspiring to all
stakeholders. It should be simple and easily understandable.
A mission is the purpose of the organization. Thus, planning begins with clearly defining the
mission of the organization. The mission statement is broad, deconcise, summarizing what
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SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

the organization does. A mission statement should be short and should be easily understood
and every employee should ideally be able to narrate it from memory. An explicit mission
guides employees to work independently and yet collectively toward the realization of the
organization's potential. The mission statement may be accompanied by an overarching
statement of philosophy or strategic purpose designed to convey a vision for the future as
envisaged by top management.
Q2. Define the term management. Explain the scientific management theory proposed
by Taylor
Answer- Management is an art of getting things done through and with people in formally
organized groups. It is an art of creating an environment in which people can perform as
individuals and can cooperate towards the attainment of group goals. According to F.W.
Taylor, Management is an art of knowing what to do, when to do, and see that it is done in
the best and cheapest way.
Management is a recent discipline and it draws from the disciplines of Economics,
Psychology, Sociology, Anthropology, etc. However, as we have seen earlier, management
has evolved as an independent discipline.
Scientific management theory
The focus of this thought is increase in productivity and efficiency through applying
scientific methods on the shop floor or workplace. It tries to identify one best way of doing a
job; however, emphasizes on workers cooperation, management-labour relations and
developing workers and motivating. However, the focus is on shop floor efficiency through
scientific methods and even motivation is proposed to be executed through piece rate system
or paying based on the number of pieces of work produced. The thought was led by Fredrick
W. Taylor, and he enunciated the principles of scientific management in 1911 after
experimenting on the shop floor of a steel company as a supervisor. He was influenced by
Frank and Lillian Gilbreth and their Time and Motion study (a study that identifies the least
time required for a motion in workplace and make it scientific) of 1900 and that of Henry L.
Gantt who propounded the idea of scientific selection of workers and harmonious cooperation
in 1901. Scientific management in Taylors parlance means:
Develop a science for each element of a mans work which replaces the old rule of
thumb method
Scientifically select and then train, teach, and develop the workman, whereas in the
past, he chose his own work and trained himself as best as he could
The workers heartily cooperate with the men so as to ensure that all of the work are
done in accordance with the principles of science which has been developed
There is an almost equal division of work and responsibility between the
management and the workmen. The management takes over all work for which they
are better fitted than the workmen, while in the past; almost all of the work and the
greater part of the responsibility were thrown upon the men.
Q3. Give the definition and importance of planning in an organisation and explain the
steps in planning.
Answer- 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 organization 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
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SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

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 organization attempts to reach. Goal are
important because an organization exists for a purpose, and goal define and state that
purpose. Goals specify future ends; plans specify the means to do that.
Importances of Planning are:
It helps the management to clarify, focus, and research their businesses or projects
development and prospects.
It provides a considered and logical framework within which a business can
develop and pursue business.
It offers a benchmark against with the actual performance can be measured and
reviewed.
It plays a vital role in helping to avoids mistakes or recognize hidden
opportunities.
In the business context, it guides the development of products, management,
finances, and most importantly, markets and competition.
It helps in forecasting the future and makes the future visible to some extent.
It bridge between where we are and where we want to go.
Steps in Planning are as follows:i.
Being aware of opportunities This means being aware of the customer needs,
market, competition, our strengths, and weaknesses. This is usually done through
market research, competitor analysis, and analysis of own strengths and weaknesses
through a formal process called SWOT analysis (Strength, Weaknesses, Opportunity,
and Threat).
ii.
Establishing objectives This implies establishing what we want to be and what we
want to accomplish and when and in relation to which market segment. At the highest
level, this is done through vision and mission building. This process takes place at
business level, project level, etc also.
iii.
Developing premises Deciding on the environment (both external and internal) in
which our plans are going to operate. Business has external environment created by
political factors to include legislation, legal framework, etc. The external analysis is
done through a process called PEST analysis (Political, Economic, Social, and
Technological). Some add culture as an additional separate factor while others
include it in Social. PEST is a framework and helps you to think systematically
through the factors that could affect. In relation to the business mission, each of the
factors may become a threat or opportunity (or of course may be neither).
iv. Determining alternative courses Identifying the most promising alternatives to
accomplish what we want to. This is done by combining the information about the
opportunities, threats, and own strength and weaknesses. This is done through another
framework called TOWS matrix
v. Evaluating alternative courses Comparing the alternatives to find out which of
them will meet our goals and at optimal cost and profit keeping sustainability into
mind.
vi.
Selecting a course Selecting the course that we want to follow.
vii.
Formulating plans This implies making plans that support the course of action by
buying equipment, space, planning the type of HR, etc.
viii.
Qualifying plans by budgeting Identifying the cost involved, how the financial
resources will be mobilized, what is capital expenditure, what is operational
expenditure, the working capital, etc.

SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

Q4. What is meant by leading? Describe the characteristics of leading.

Answer- Leadership is one of the most important skills that a person should have. This skill
is especially important to those in the business field. In order for a business to run and
continue to generate profits, the leaders should be able to delegate tasks well and perform
their other duties as the heads of the company. However, a lot of businesses owners fail to
perform as they should that eventually lead to the malfunction of their business as well.
Leadership management is something not to be taken for granted because a lack of
understanding of this skill would contribute to a business' breakdown. In order to be
successful in the business field, the leaders should be able to have the right training in
handling even the most complicated of situations. If a leader is not able to deal with difficult
situations involving the company, the possibility of it crumbling down would be much
greater.
If you are lacking skills in leadership management, there are a lot of programs you can
participate in. These programs aim to transform people into great leaders by instilling to them
the importance of hard work and determination. Without the two, a person would not be
called a leader. Further, a truly effective leader should know how to treat his or her
employees. The employees are the ones responsible for keeping the company alive so the
leader should pay more attention to them by encouraging them to do better in their jobs.
Characteristics of Leading:
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
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SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

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.

Q5. What are attitudes? Explain the components and functions of attitude.
Answer- Attitudes are also known as "frames of reference." They provide the background
against which facts and events are viewed. It becomes necessary to know the attitudes of
members of an organization because they have to perceive specific aspects like pay, hours of
work, promotion, etc. of their work life in the wider context of their generalized attitudes.
Attitudes are also known as "frames of reference." An attitude is the predisposition of the
individual to evaluate some objects in a favourable or an unfavourable manner. The most
pervasive phenomenon is "attitude." People at work place have attitudes about lots of topics
that are related to them. These attitudes are firmly embedded in a complex psychological
structure of beliefs. Attitudes are different from values. Values are the ideals, whereas
attitudes are narrow. They are our feelings, thoughts and behavioural tendencies toward a
specific object or situation. Attitude is a predisposition to respond to a certain set of facts.
Attitudes are evaluative statements either favourable or unfavourable concerning the objects,
people or events.
Components of attitude
There are three components of an attitude namely
1) Cognition,
2) Affect
3) Behaviour.
i.

ii.

iii.

Cognition. It is the mental process involved in gaining knowledge and

comprehension, including thinking, knowing, remembering, judging and problem
solving. The cognition component of an attitude reflects a persons perceptions or
beliefs. Cognitive elements are evaluative beliefs and are measured by attitude scales
or by asking about thoughts.
Affect. This component refers to the person's feelings that result from his/her beliefs
about a person, object or situation. A person who believes that hard work earns
promotions may feel angry or frustrated when he/she works hard but is not promoted.
The affective component becomes stronger as an individual has more frequent and
direct experience with a focal object, person or situation. 'Affect' is the emotional
component of an attitude. It refers to an individual's feeling about something or
someone.
Behaviour. This component refers to the individual's behaviour that occurs as a result
of his or her feeling about the focal person, object or situation. An individual may
complain, request a transfer, or be less productive because he or she feels dissatisfied
with work. The behavioral component of an attitude refers to an intention to behave in
a certain way toward someone or something.
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SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

Functions of attitude
According to Katz, attitudes serve four important functions from the viewpoint of
organizational behaviour. These are as follows:
a. Adjustment function. Attitudes often help people to adjust to their work
environment. Well-treated employees tend to develop a positive attitude towards their
job, management and the organization in general, while berated and ill treated
organizational members develop a negative attitude. In other words, attitudes help
employees adjust to their environment and form a basis for future behaviour.
b. Ego-defensive function. Attitudes help people to retain their dignity and self-image.
When a young faculty member who is full of fresh ideas and enthusiasm, joins the
organization, the older members might feel somewhat threatened by him/her. But they
tend to disapprove his creative ideas as crazy and impractical and dismiss him/her
altogether.
c. Value-expressive function. Attitudes provide individuals with a basis for expressing
their values. For example, a manager who values hard and sincere work will be more
vocal against an employee who is having a very casual approach towards work.
d. Knowledge function. Attitudes provide standards and frames of reference that allow
people to understand and perceive the world around them. If one has a strong negative
attitude towards the management, whatever the management does, even employee
welfare programmes, can be perceived as something bad and as actually against
them.

Q6. Define leadership. Differentiate between authoritarian and democratic leadership

style.
Answer- Leadership is one of the most important skills that a person should have. This skill
is especially important to those in the business field. In order for a business to run and
continue to generate profits, the leaders should be able to delegate tasks well and perform
their other duties as the heads of the company. However, a lot of business owners fail to
perform as they should that eventually lead to the malfunction of their business as well.
Leadership management is something not to be taken for granted because a lack of
understanding of this skill would contribute to a business' breakdown. In order to be
successful in the business field, the leaders should be able to have the right training in
handling even the most complicated of situations. If a leader is not able to deal with difficult
situations involving the company, the possibility of it crumbling down would be much
greater.
If you are lacking skills in leadership management, there are a lot of programs you can
participate in. These programs aim to transform people into great leaders by instilling to them
the importance of hard work and determination. Without the two, a person would not be
called a leader. Further, a truly effective leader should know how to treat his or her
employees. The employees are the ones responsible for keeping the company alive so the
leader should pay more attention to them by encouraging them to do better in their jobs.
Characteristics of Leading:
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
6

SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

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.

Nelson and Quick defines democratic leadership as a style of leadership in which the leaders
takes collaborative, responsive, interactive actions with followers concerning the work and
the work environment. The distinct characteristics are:
Involves followers in setting goals
Engages in two-way, open communication
Facilitates discussion with followers
Solicits input regarding determination of policy and procedures
Focuses on interaction
Provides suggestions and alternatives for the completion of tasks
Provides frequent positive feedback
Rewards good work and uses punishment only as a last resort
Exhibits effective listening skills
Mediates conflict for group gain
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SIKKIM MANIPAL UNIVERSITY-DE Summer 2013

Laissez Faire
Nelson and Quick defines it as a style of leadership in which the leader fails to accept the
responsibilities of the position. The distinct characteristics are:
Allows followers free rein to set their own goals
Engages in noncommittal, superficial communication
Avoids discussion with followers to set policy and procedures
Avoids interaction
Provides suggestions and alternatives for the completion of tasks only when asked to
do so by followers
Provides infrequent feedback of any kind
Avoids offering rewards or punishments
May exhibit either poor or effective listening skills
Avoids conflict