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Management Functions & Behavior

Assignment A
1.
A.1

How can the field of OB contribute to the effective functioning of organizations and the
well being of the individual?
OB is related to the individual behaviors in organizations, apart from group behaviors
and behaviors in organizations. An organization is as good as its working group. An
organization needs to grow continuously therefore, there is a need to keep its persons
rising through following procedures they are:
1. Continuous Learning The continuous learning in individuals works substantially in
the growth of the individuals. There are many ways of learning that helps individuals to
grow. Learning can be termed as any permanent change in behavior or behavior
potential that results from experience. There is need to promote functional behavior
among individuals for effective functioning of organizations, and discourages behavior
that is unfavorable to the organisations. There are different methods of learning and
various means through which learning can be converted into desirable behavior in the
individuals.
2. Creating Right Perception: There is need to create right perception among
individuals. Perception can be termed as process through which we select, organize
and interpret inputs that are supplied to us by our sensory receptors. There are five
senses in humans (eyes through sight, ears through audition, nose through smell,
mouth or tongue through taste, and skin through touch) and these senses continuously
gathers information from the surroundings. It is the perception that gives meaning to the
various set of informations that are gathered through these senses. The study of OB
helps in creating right perception that is prime requirement for the efficiently working
with people.
3. Building Positive Attitudes and Values: The building of positive attitude and values
plays significant role in the growth of individuals. Attitude can be defined as long-lasting
evaluation that represents an individual like or dislike for an item, group, or issues.
Positive attitudes form an important element in building effective relationships. Values
are the fundamental ideas that a definite form of way of survival is individual or social
and is preferable to an opposite or adverse form of performing the work. Values are the
base of attitudes and behaviour, therefore it is important to discover values in OB.
4. Having Personality and Emotions Compatible at Work Place: Personality is persons
unique and relatively constant model of behaviour, thoughts, and feelings. There is
requirement in organisations to generate a right grouping of person and job, in order to
utilize full potential of an individual. According to the provisions of the work, qualities can
be also developed. Emotions are reactions which are the outcome of subjective
cognitive states, physiological reactions, and expressive behaviors. Cognition is the
mental behavior related to the thought, knowledge, and memory. Proper understanding
of emotions helps an individual for self-development.
5. Maintaining Stress-free Individuals and Environment: Stress is a self-motivated

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condition in which an individual is to deal with an opportunity, constraint, or demand
related to what he or she needs and for which the result is supposed to be both doubtful
and significant. With rising competition and survival, and quality becoming higher and
difficult to match, stress is the administrative anxiety of modern era.
6. Keeping Individuals and Teams Motivated and providing Job Satisfaction: Motivation
can be explained as the most important indescribable source of the organization.
Motivation is an indirect in-house procedure that activates, guides, and maintains
behavior over time. Job satisfaction is a universal approach towards ones job. It also
depends on the segregation between the amount of rewards workers receive and the
amount they believe they should be given.
Organisations as well as individuals do not exist in isolation. There is constant
fluctuation of environmental impact on organisation that helps in stimulating behaviour
pattern within the organisation. It is important for organisation to muster flexibility for its
long-term existence. The boundaries of organisations are becoming more transparent
rather more fragile. Organisations are required to focus on many emerging issues so as
to integrate it well with the environmental changes. Some of these are as follows:
Continuous improvement of people and process.
Integrating human factor with grand objectives of the organisation.
More emphasis on quality of products, services, and process.
Restructuring to suit requirements of service organisations, task force teams, as well
as, in case of rightsizing and acquisition and merger.
Managing diversity.
Product innovation.
Managing creativity and innovations.
Cross-cultural management.
Managing multinationals.

4. Do you think when managers make decisions they follow the decision making steps as
has been conceptualized in the rational decision making model? Which steps are likely
to be overlooked or given inadequate attention? What can be the possible
consequences of overlooking any of the steps?
A.4 Rational decision-making model, as it is called in organizational behavior is a
process for making logically sound decisions.This multi-step model and aims to be logical
and follow the orderly path from problem identification through solution.
However, there are a lot of assumptions, requirements without which the rational decision
model is a failure. Therefore, they all have to be considered. The model assumes that we
have or should or can obtain adequate information, both in terms of quality, quantity and
accuracy. This applies to the situation as well as the alternative technical situations. It
further assumes that you have or should or can obtain substantive knowledge of the cause
and effect relationships relevant to the evaluation of the alternatives. In other words, it
assumes that you have a thorough knowledge of all the alternatives and the consequences

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of the alternatives chosen. It further assumes that you can rank the alternatives and choose
the best of it. The following are the limitations for the Rational Decision Making Model:

It requires a great deal of time.

It requires great deal of information
It assumes rational, measurable criteria are available and agreed upon.
It assumes accurate, stable and complete knowledge of all the alternatives,
preferences, goals and consequences.
It assumes a rational, reasonable, non political world.

The rational decision making model contains a number of assumptions.

Problem clarity: The problem is clear and unambiguous.The decision maker is assumed
to have complete information regarding situation.
Known options: It is assumed the decision maker can identify all the relevant criteria
and can list all the viable alternatives. Furthermore, the decision maker is aware of all
possible consequences of each alternative.
Clear preferences: Rationality assumes that the criteria and alternatives can be ranked
and weighted to reflect their importance.
Constant preferences: It's assumed that the specific decision criteria are constant and
that the weights assigned to them are stable over time.
No time or cost constraints: The rational decision maker can obtain full information
about criteria and alternatives because it's assumed that there are no time or cost
constraints.
Maximum payoff:The rational decision maker will choose the alternative that yields the
highest perceived value.

5. Participation is an excellent method for identifying differences and resolving conflicts.

Do you agree or disagree. Discuss with suitable examples.
A.5 Conflict is a positive element of all groups. Without it, people would not be challenged to
think beyond their everyday, routine boundaries. When a variety of people with different
perspectives, values, experiences, education, lifestyles and interests come together,
differences abound. That diversity can enrich the discussion, the ideas and the project goals if
the conflict and tensions that emerge are resolved and the group uses the learning to improve
its work. Conflict can be pretty much inevitable when you work with others. People have
different viewpoints and under the right set of circumstances, those differences escalate to
conflict. How you handle that conflict determines whether it works to the team's advantage or
contributes to its demise.
You can choose to ignore it, complain about it, blame someone for it, or try to deal with it
through hints and suggestions; or you can be direct, clarify what is going on, and attempt to
reach a resolution through common techniques like negotiation or compromise. It's clear that
conflict has to be dealt with, but the question is how: It has to be dealt with constructively and
with a plan, otherwise it's too easy to get pulled into the argument and create an even larger
mess.

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Understanding and appreciating the various viewpoints involved in conflict are key factors in its
resolution. These are key skills for all team members to develop. The important thing is to
maintain a healthy balance of constructive difference of opinion, and avoid negative conflict
that's destructive and disruptive.
Getting to, and maintaining, that balance requires well-developed team skills, particularly the
ability to resolve conflict when it does happens, and the ability to keep it healthy and avoid
conflict in the day-to-day course of team working. Let's look at conflict resolution first, then at
preventing it.
Resolving Conflict
When a team oversteps the mark of healthy difference of opinion, resolving conflict requires
respect and patience. The human experience of conflict involves our emotions, perceptions,
and actions; we experience it on all three levels, and we need to address all three levels to
resolve it. We must replace the negative experiences with positive one.
Participation definitely allows us to see that points which we were not even thinking about, it
throws light on new angles which definitely makes us to think more then what were doing
before looking at it, with more light of knowledge defiantly heat of difference can be curb to a
large extent, there is a difference between debating and arguing the former brings light of
knowledge the later brings heat of discontent so its better to the put the points fwd and hear
from others there point of view then infer upon

Q4. Case study: Please read the case study given below and answer questions given at the
end.
Mr. R.K. Mishra owns a small trading company in Varanasi by the name of RKM Enterprises.
The company provided raw material to the manufacturers of silk sarees. The business
enterprise is also engaged in supply of silk sarees and other silk garments produced by local
weavers to the big stores in major cities. In addition they have substantial export orders.
The company is mainly a family based enterprise. Mr. R.K. Mishra is the Director and his son
Ritesh is looking after finance department. The son is also assisting his father in other
strategical matters. Key decisions are taken by the Director himself after occasional
discussions with Ritesh. The existing employee strength is more than 200 with 15 offices

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spread across the country. During the last one decade of its existence, the business has
grown considerably. In fact, the turnover surpassed Rupees 100 million in the year 2003-04.
However, since then the business faced stiff competition from other traders. In last one year
the orders that have been received have reduced substantially.
Rohit, younger son of the Director is holding a management degree from Banaras Hindu
University. He has recently left a job with an MNC located in Mumbai and joined his fathers
business to help in solving the problems. After joining, Rohit made several changes in the
organization. A major restructuring drive was carried out. The authority to take several major
decisions was transmitted to lower levels. Organization structure was also made flatter.
Instructions were given to all managers to consult their subordinates before taking any
decisions. He was determined to see that the company was professionally managed.
Questions:
1.
The management of RKM Enterprises is not professional and is family based. Analyze
and comment.
A.1
It is true that the management of RKM Enterprises is not professional and is family
based. On all the major post in the company there are family members. They are taking
the decisions without consulting anyone in the company. Mr. Mishra is the director of
the company and his son was handling finance. When company was not generating
profit they do not consult any senior manager or staff of the company instead his
younger son came into the company after leave his job and handled the family
business. So we can say that company is not professional and all the decision is taken
by family members only. Any company who wants to grow in the market and want
achieve profit have to adopt professional approach. They have to control the family
interference in the company to achieve success in the professional front.
2.

Analyze the changes brought in by Rohit.

A.2
The changes brought by Rohit was not very professional and lacking the
experience behind those changes. Rohit is younger and does not have enough
experience to make these types of changes. His decision of consulting subordinates
and to take decision with the help of lower staff is not very professional as there is a
chance of leaking the information or conflict between management and staff.

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Assignment C
(Objective Type Questions
Tick Marks () the most appropriate answer.
1.

Which of the following was NOT a need proposed by David McClellands Theory of
Needs?
(a)
(b)
(c)
(d)

The need for power

The need for esteem
The need for affiliation
The need for achievement

2.

Managers engage in ________ to increase their power and pursue goals that favor their
individual and group interests.
(a)
Organizational politics
(b)
Political decision making
(c)
Accommodation
(d)
Self satisfaction

3.

Which of the following is NOT A motivator according to Hertzberg?

(a)
Achievement
(b)
Relations with others
(c)
Recognition
(d)
Responsibility

4.

Cognitive Dissonance theory has been given by

(a)
Taylor
(b)
Vroom
(c)
Festinger
(d)
Skinner

5.

The purpose of feedback in communication is

(a)
(b)
(c)
(d)

6.

To ensure that message has been understood

To carry the message back from receiver to sender
To complete the process of communication
All of the above

Self Esteem means

(a)
(b)
(c)
(d)

Love for yourself

Respect for yourself
Trust for yourself
All the above

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7.

The Hawthorne experiment was started by:

(a)
(b)
(c)
(d)

8.

--------------is the systematic study of the ways interaction, interdependence and

influence among persons affect their behavior and thoughts
(a)
(b)
(c)
(d)

9.

Traits, behaviors and results.

Affective, cognitive and behavioral
Individual , organizational and social
Individual , group and organizational

Which type of leaders gives complete freedom to their employees?

(a)
(b)
(c)
(d)

13.

F.W. Taylor
Henri Fayol
Peter F. Drucker
Watson

The three levels of analysis that are studied in organizational behavior are?
(a)
(b)
(c)
(d)

12.

Rogers
Alderfer
Janis
Freud

MBO was first suggested by?

(a)
(b)
(c)
(d)

11.

Social psychology
Industrial psychology
Anthropology
Sociology

Psychoanalytic theory has been propounded by?

(a)
(a)
(b)
(c)

10.

Kurt Lewin
B.F.Skinner
Elton Mayo
W.Dickson

Autocratic leaders
Bureaucratic leaders
Participative leaders
Laissez-faire leaders

------------refers to the ability of individuals or groups to induce or influence the beliefs

or actions of other individuals or groups?
(a)

Power

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(b)
(c)
(d)
14.

Robert Own, Charles Babbage, Henry R. Lowne , Andrew Ure and Charles Duplin
contributed to the ___________school of management thought?
(a)
(b)
(c)
(d)

15.

Departmentation by simple numbers

Departmentation by time
Departmentation by process or equipment
Departmentation by strategic numbers

Which managerial function gives attention to influencing and motivating employees to

improve performance and achieve corporate objectives?
(a)
(b)
(c)
(d)

19.

Encourages decision-making
Easy to have uniform policy
Greater Control
Decreases complexity of coordination

Which type of departmentation is useful only at the lowest level of organizations?

(a)
(b)
(c)
(d)

18.

Trait theory
ERG theory
Contingency theory
Transactional theory

Which is an advantage of decentralization?

(a)
(b)
(c)
(d)

17.

Classical
Behavioral
Neo-classical
Pre-classical

Which of the following is not a leadership theory?

(a)
(b)
(c)
(d)

16.

Responsibility
Delegation
Discipline

Leading
Organizing
Staffing
Controlling

The _______ refers to the delivery by one individual to another of the right to
act, to make decisions, to requisition resources and to perform other tasks in order to
fulfill job responsibilities
(a)
(b)
(c)

Centralization of power
Delegation of authority
Centralization of authority

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(d)
20.

In the process of communication, the translation of intended meanings into words and
gestures is known as?
(a)
(b)
(c)
(d)

21.

How the task of an organization are divided and coordinated

The informal patterns of communication
The stakeholders who have an interest in the company
The physical layout of the buildings on a site

When a manager secures the agreement of a colleague to work on a project in return

for the promise of providing the colleague with some extra remuneration, what type of
power is he or she exercising?
(a)
(b)
(c)
(d)

25.

Dogmatism
Perception
Stereotyping
Congnitive dissonance

The organization chart is a way of showing?

(a)
(b)
(c)
(d)

24.

Centralization
Departmentation
Decentralization
Fictionalization

Which of the following processes shows how an individual seeks information about a
certain issue and how he interprets that information?
(a)
(b)
(c)
(d)

23.

Encoding
Decoding
Processing
Transforming

The establishment of a distinct area, unit of subsystem of an organization over which a

(a)
(b)
(c)
(d)

22.

Delegation of responsibility

Expert power
Coercive power
Referent power
Reward power

Which of the following is not one of the steps identified as part of the controlling
process?
(a)
(b)
(c)

Setting performance standards or goals

Measuring performance
Writing the reports

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(d)
26.

Which of the following refers to changing a task to make it inherently more rewarding,
motivating and satisfying?
(a)
(b)
(c)
(d)

27.

(b)
(c)
(d)

It is vested in people not positions

Subordinates accept it
It flows across the horizontal hierarchy
It emerges from the organizational values

Which of these refers to the set of characteristics that underlie a relatively stable pattern
of behavior in response to ideas, objects or people in the environment?
(a)
(b)
(c)
(d)

31.

The quantity of the membership, the organizational structure and position of

authority
The quantity of leader-member relationships, task structure and position power
The style of leadership, the educational level of the membership and the
organizational structure
The power of the leadership, the member relationships and the organizational
structure

Which of the following characteristic distinguishes authority?

(a)
(b)
(c)
(d)

30.

Facilitation and support

Explicit and implicit coercion
Manipulation and cooptation
Participation and involvement

According to Fieldlers contingency model, leadership situations can be analyzed in

terms of three elements. What are they?
(a)

29.

Enlargement
Rotation
Enhancement
Enrichment

When people are resisting because of adjustment problem, the _________method for
dealing with resistance to change is commonly used
(a)
(b)
(c)
(d)

28.

Taking corrective action

Dissonance perception
Personality
Halo effect
Attitude

The tendency to place the primary responsibility for ones success or failure either within
oneself or on outside forces is referred to as
(a)

Authoritarianism

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(b)
(c)
(d)
32.

The tendency to see ones own personal traits in other people is called
(a)
(b)
(c)
(d)

33.

TQM
Continuous improvement
Benchmarking
Empowerment

Standing plans are

(a)
(b)
(c)
(d)

37.

Capital expenditure budget

Balance sheet budget
Cash budget
Revenue budget

______ is a process whereby companies find how others do something better than they
do and then try to imitate or improve on it.
(a)
(b)
(c)
(d)

36.

Expectancy
Reinforcement
Need hierarchy
Equity

A financial budget that estimates cash flows on a daily basis or weekly basis to ensure
that the company can meet its obligations is called a
(a)
(b)
(c)
(d)

35.

Perceptual defense
Projection
Stereotyping
The halo effect

Which of the following theories deals with employees perception of fairness?

(a)
(b)
(c)
(d)

34.

Emotional stability
Locus of control
Extroversion

Plans that are developed to achieve a set of goals that are unlikely to be
repeated in the future
Plans that are used to provide guidance for tasks performed repeatedly
within the organization
Plans that define company responses to specific situations, such as emergencies
or setbacks
Most important in the organization

Which of the following is not a perceptual distortion?

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(a)
(b)
(c)
(d)
38.

Stereotype
Halo effect
Projection
Extinction

Nonverbal communication behaviors includes

(a)
(b)
(c)
(d)

Twitching, Scratching, rolling your eyes

Secret notes passed between fellow works
Intrapersonal dialog
Sending an email response to an irate customer

39.

Democratic leadership is also known as--(a)

Autocratic
(b)
Participative
(c)
Bureaucratic
(d)
Laissezfaire

40.

A significant part of a managers job is an organization is to use the tools and

techniques developed through OB research to increase organizational
(a)
Structure
(b)
Morale
(c)
Complexity
(d)
Effectiveness
_____________________________