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PROGRAM-MBA
SEMESTER-I
MB0038 Management Process and Organizational Behavior
Q1. (a) A vision statement is a formal statement of what a business wants to be. According to Collins and Porras,
a vision statement should have four parts. What are those four parts?
Answer:
Parts of vision statement
1. The core values are those things very close to our hearts that we would 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 we should have only 4 to 6 core values. Of course, personal values and
business values may differ. For example, love may be a very important personal value but it may not be so
relevant in your business of furniture though it can be relevant if you were having a home for the aged.
2. Core purpose is the purpose of the organization, for example, to make furniture. This is something that we 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.
3. 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.
4. The vivid description should make the entire vision statement very inspiring to all stakeholders. It should be
simple and easily understandable. For example, Quit India is a very simple statement, but it is very vivid and
easily understandable by all. Let us be very clear that the vision statement is meant for the stakeholders and
therefore, the importance of the vivid and simple statement. We say that your grandmother should be able to
understand it or a twelve-year-old child should be able to understand it and you should test it on them. This is
also called The Grandmas Test or the 12-Year-Old Test.
(b) Differentiate between process and tasks (Parts of vision statement, Difference between process and tasks)
Answer:
Processes
Process is a set of logical activities that lead to some final or interim output. For example, taking pieces of wood,
making it smooth, cutting it, making grooves, connecting them, finishing them, and polishing them are processes to
create a table. These have to be done in some logical sequence. This is what a process is. Let us now look at Rajus
business itself. He has to manage things and for this, he will have to plan the number of pieces to be made, how much
wood to buy, which furniture to make, how to organize these, where to get manpower, etc. These too have to be done in
some logical sequence.
For example, he has to plan and decide the number of tables before deciding on the quantity of wood. Thus at the
business level, some processes come into play. These are planning, organizing, staffing, leading, and controlling. We
call them management processes. In other words, in the management system, these processes convert the input into
output (furniture, profit, growth, etc.).
Tasks (activities)
This is perhaps the most basic unit in an organization. In the example given above, teaching can be a task, cutting wood
can be a task, and making grooves in the wood can be a task. Thus, we have learnt that ever organization has a vision
and mission. To execute the organizational vision we create strategies. Structures, systems and processes help the
organization execute the strategies.
Q2. Planning is called as the cornerstone of management. Define planning and describe the importance of
planning. Explain the types of planning. (Definition of planning, Importance of planning, Types of planning)
Answer:
Definition and Importance of 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 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 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. Goals are important because an organization
exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify the means to do
that. Therefore, planning is about looking ahead. Planning answers six basic questions in regard to any activity:
It helps the management to clarify, focus, and research their businesses or project's development and prospects.
It provides a considered and logical framework within which a business can develop and pursue business.
It offers a benchmark against which the actual performance can be measured and reviewed.
It plays a vital role in helping to avoid mistakes or recognize hidden opportunities.
Type of planning
Planning can be classified from different perspectives. Figure 1 depicts the perspectives of planning.
There is some optimal limit to the number of subordinate a manager can have. But considering the communication and
control in mind, usually we say that the number should be within a range of seven to ten. This however depends on the
nature of the industry and technology level. In a computerized environment, it is possible to have even 40 to 50 people
under one head. More the number of subordinates under one head, flatter then organization becomes. But keeping the
factors that influence the span of control, a balance has to be struck.
Factors that influence the span of control
The time that a manager gets to spend with the subordinate is the fundamental factor. Based on this, several sub factors
emerge and are discussed below.
Training Wide span demands high level of training while in narrow span, one can manage with less.
Task definition and delegation Wide span demands clear task definition and delegation while this can be much less
in a narrow span.
Well defined plans and repetitive process If the business has these, a wide span is viable, if not a narrow span is
preferred.
Verifiable objectives Wide span demands verifiable objectives and this is much less in narrow span.
Speed of change When the speed of change is high, a wide span may not be practical from a communication
perspective but may not be practical if such changes need close control.
Organization structure, written and oral communication When this is of a higher order, wide span can work well.
Effective interaction and meeting Wide span demands both more than narrow span.
Specialists When there are a greater number of specialists at the upper level, a wide span is preferable. If the number
of specialists is more at the lower level, then a narrow span can work better.
Task simplicity If the task is simple, a wide span is viable.
Competency of managers With highly competent managers, a wide span works well.
Subordinate readiness If the subordinates are mature and are willing to assume responsibility, a wide span works
well.
Need for balance Ideally keeping these factors in mind, one has to balance between narrow and wide span of control.
Q4 Define Organizational behavior. What are the various approaches to Organizational behavior? (Definition
of OB, Approaches to OB) 2, 8
Q5. Perception is the way we see and interpret things. Explain the importance of such perception. What are the
factors affecting perception? (Importance of perception, Factors affecting perception) 4,6
Answer:
Importance of perception
Perception is perhaps the most important aspect of OB that we use in our daily life and in management. The importance
of perception is:
While creating vision for an organization, our perception of the future and the way things should be is a
deciding factor.
While making strategy, out perception of the opportunities and threats make us see the same situation
differently.
Perception gives the impetus to seek more information to make more rational decisions e.g., the perception of
Rakhi on the situation of the bakery in trouble, made her travel and talk to the employees to gain more
information. If she had perceived what the manager did was right or that it is too small a thing to intervene, she
would not have made the effort to find out more information.
Perception affects the planning because the goals set depend on our perception of the world and the employees
and their ability to achieve them.
The way we organize, i.e., flat versus hierarchical, depends on our perception of the competence of the
employees and business needs. You will find the same industry having different organizational set up because
of this.
The ways we select staff is often fully based on perception and once we select, the way we manage their
performance, reward and promote them and treat them are also heavily dependent on perception.
Business leaders make an effort to change the perception of the employees to bring about change.
The controls that we put in place are based on our perception of the competence and sincerity of the
employees.
Reasons for most workplace stress and conflict are differing perception and biases in perception.
Hence knowing about perception is very important.
Factors affecting perception
Factors that affect perception are:
Perceiver related factors
Target related factors
Situation related factors
Figure 4 depicts the factors affecting perception.
Interests-Interest is a natural inclination to talk, participate or perform a task. So, when you are interested in pleasing
customers you see things differently and when you are interested in adhering to discipline (both
are, of course, required), you perceive things differently.
Experiences-Experiences hard wire our brains. It is possible that the assistant manager would have had good
experience from the customer reaction when he serves in a way that is different from the manual and it is equally
possible that the manager would have been from an organization where systems and discipline are strict.
Expectations-The assistant manager expects the customers to be pleased when he serves them in a particular way and
therefore he expects the manager to accept this mode, while the manager expects the assistant manager to follow the
manual and therefore perceives the same situation differently.
Self-concept-Another factor that can affect social perception is the perceivers' self-concept. An individual with a
positive self-concept tends to notice positive attributes in another person.
Moods-Moods can have a strong influence on the way we perceive someone. We think differently when we are happy
than we do when we are depressed and perhaps the comment of the assistant manager could have been due to moods.
Cognitive structure-Cognitive structure, an individual's pattern of thinking, also affects perception. Some people have
a tendency to perceive physical traits, such as height, weight and appearance more readily. Others tend to focus more
on central traits or personality dispositions. Those with high cognitive complexity are able to perceive multiple
characteristics of another person rather than just a few and are therefore better decision makers.
Target related factors-These are novelty, motion, sound, size, background and proximity. We see how these are used
in business especially advertisements. Rakhi used to bake a cake for birthday of every one of her employees. This is
novelty because employers dont do it. Had the manager talked to this assistant manager softly but firmly in his room
the sound, background and proximity would have been more appropriate for the advice rather than on the shop floor. If
he had used the right body language and done some small talk as a background, the advice would most probably have
been received better.
Situation related-Time, work setting, work tradition, nature of word and social setting are important factors in a work
situation that affect perception. The manager admonished his assistant manager with long experience during the peak
work time, it was done against a work setting that focus on total customer satisfaction if not literal pampering of the
customers, which was Sambhavis tradition, the nature of work too was service and the attraction was kid care and
merchandise, which makes the service very different from a standard eatery or even a good restaurant. Hence the work
setting too was very different.
Q6. Give the definition and importance of motivation. Describe Maslows hierarchy of needs theory.
(Definition of motivation, Importance of motivation, Maslows hierarchy of needs theory)
Answer:
Definition and Importance of Motivation
Motivation is the process that account for an individuals intensity, direction, and persistence of effort toward attaining
a goal. (Robbins, 2003) Intensity is concerned with how hard a person tries. This is the element most of us focus on
when we talk about motivation. Direction is the orientation that benefits the organization. And persistence is a measure
of how long a person can maintain his/her effort. Motivated individuals stay with a task long enough to achieve their
goal.
Motivation is important to an individual because:
Motivation helps to achieve personal goals.
Motivation gives job satisfaction.
Motivation helps in self-development of individual.
An individual would always gain by working with a dynamic team.
Similarly, motivation is important to a business because:
The more motivated the employees are, the more empowered the team is.
The more is the team work and individual employee contribution, more profitable and successful is the
business.
During period of change, there is more adaptability and creativity.
Motivation leads to an optimistic and challenging attitude at work place.
In general, motivation has the following benefits:
Puts human resources into action and enables organizations to coordinate its physical and financial resources to
achieve its goals.