Master of Business Administration in HRM (Semester 3)

Assignment

MANAGEMENT & ORGANIZATION DEVELOPMENT

SUBJECT CODE – MU0002
SET 1

Q1. Write a detailed note on importance of management.

Ans. Management refers to the process of getting activity completed efficiency and
effectively with an through other people or we can say it is the management which
uses available resources in such a manner that a business enterprise is able to
earn surplus to meet the needs of growth and expansion. Management is
required to plan, organize, co-ordinate and control the affairs of a business
concern. It brings together all resources and motivates people to achieve the
objectives of a business enterprise.

Importance of Management
According to Drucker, management is the dynamic lift-giving element in every
organization. It is the activating force that gets things done through people.
Without management, an organization is merely a collection of men, machines,
money and material. In its absence, the resources of production remain resources
and never become production. The importance of management can be
understood from the following points.

1) Optimum use of resources: Management ensures optimum utilization of

resources by attempting to avoid wastage of all kinds. It helps in putting the
resources to the best advantage within the limitations set by the organization
and its environment. A right climate is created for workers to put in their best
and show superior performance.
2) Effective leadership and motivation: In the absence of management, the
working of an enterprise will become random and haphazard in nature.
Employees feel a sense of security when they find a body of individual’s
working day and night for the continued growth of an organization.
Management makes group effort more effective. It enables employees to move
cooperatively and achieve goals in a coordinated manner. Management
creates teamwork and motivates employees to work harder and better by
providing necessary guidance, counseling and effective leadership.

3) Establishers sound industrial relations: Management minimizes industrial

disputes and contributes to sound industrial relations in an undertaking.
Industrial peace is an essential requirement for increasing productivity. To this
end, manager tries to strike a happy balance between the demands of
employees and organizational requirements. They initiate prompt actions
whenever workers express dissatisfaction over organizational rules, methods,
procedures and reward systems.

4) Achievement of goals: Management plays an important role in the

achievement of objectives of an organization. Objective can be achieved only
when the human and non-human resources are combined in a proper way.
Management is goal-oriented. With a view to realize the predetermined goals-
managers plan carefully. Organize the resources properly; hire competent
people and provide necessary guidance. They try to put everything on the right
tract. Overlapping efforts and waste motions are avoided. In the final analysis,
all these help in realizing goals with maximum efficiency.

5) Change and growth: Changes in technology, government policy, competition,

etc., often threaten the survival of a firm. Failure to take note of customer’s
needs regarding full efficiently has spelt doom for ‘Ideal java’ in the two-
wheeler market in India. An enterprise has to take note of these changes and
adapt itself quickly. Managers help an organization by anticipating these
 changes (careful planning, forecasting combined with efficient use of
resources) and taking appropriate steps. Successful managers are the ones
who anticipate and adjust to changing circumstances rather than being
passively swept along or caught unprepared.

6) Improves standard of living: Management improves the standard of living of

people by (a) using scarce resources efficiently and turning out profits. (b)
Ensuring the survival of the firm in the face of continued changes. (c)
Exploiting new ideas for the benefit of society as a whole and (d) developing
employee talents and capabilities while at work and prompting them to show
peak performance.

Q2. What is Organization Development? Compare organization development

with management development?

Ans. Organization Development (OD) is a response to change, a complex educational

strategy intended to change the beliefs, attitudes, values and structure of
organization so that they can better adapt to new technologies, markets, and
challenges, and the dizzying rate of change itself. (Bennis, 1969).

Organizational Development can be defined as a planned and sustained effort to

apply behavioural science for system improvement, using reflexive, self-analytic
methods. (Schmuck and Miles, 1971)

Organizational development is a process of planned change- change of an

organization’s culture from one which avoids an examination of social processes
(especially decision making, planning and communication) to one which
institutionalizes and legitimizes this examination. (Burke and Hornstein, 1972)

Organization development is an organizational process for understanding and

improving any and all substantive processes an organization may develop for
performing any task and pursuing any objective. A “process for improving
processes” – that is what OD has basically sought to be for approximately 25
years (Vaill, 1989)

“Organizational development is a set of behavioural science-based theories,

values, strategies, and techniques aimed at the planned change of the
organizational work setting for the purpose of enhancing individual development
and improving organizational performance, through the alteration of organizational
members’ on-the-job behaviours.” (Porras and Robertson, 1992)

“Organizational Development is a systematic application of behavioral science

knowledge to the planned development and reinforcement of organizational
strategies, structure, and processes for improving an organization’s
effectiveness.” (Cummings and Worley, 1993)

“Organization development is a planned process of change in an organization’s

culture through the utilization of behavioural science technologies, research, and
theory.” (Burke, 1994)

As these definitions overlap a great deal (that’s encouraging), and contain several
unique insights (that’s enlightening). All authors agree that Organizational
Development applies behavioural science to achieve planned change. Likewise,
they agree that the target of change is the total organization or system and that
the goals are increased organizational effectiveness and individual development.

Collectively, these definitions convey a sense of what organization development is

and does. They describe in broad outline the nature and methods of
Organizational Development. There is no set definition of Organizational
Development and no agreement on the boundaries of the field, that is, what
practices should be included and excluded. But these are not serious constraints
given that the field is still evolving, and that practitioners share a central core of
understanding as shown in the preceding definitions.
Now let’s turn to definition of organization development which is not the “right”
definition, but the one that includes characteristics which are important for the
present and future of the field.

“Organization development is a long-term effort, led and supported by top

management, to improve an organization’s visioning, empowerment, learning, and
problem-solving processes, through an ongoing, collaborative management of
organization culture-with special emphasis on the culture of intact work teams and
other team configurations-using the consultant-facilitator role and the theory and
technology of applied behavioural science, including action research.” This
definition is lengthy, but it includes a number of components that we consider
essential.

Difference between Management Development and OD

Factors Management Organization

Development Development
Objectives Increasing manager’s Changing the nature of the
contributions to goal organization.
accomplishments.
Focus Train and equip Focus on design, not on
employees and managers the managers; focus on
to perform better in achieving improvement in
existing organization. design.
Approach Educative and training Problem-solving approach.
Time Short-range. Long-range strategy for
organizational innovation
and renewal.

Specialist No special requirement. Trained specialists

required.
Q3. Mr. Vikram is the General Manager of a textile company. He has to
participate in a meeting with the board of directors of the company. He is
expected to conduct the SWOT Analysis of the company. Help him in
preparing the question checklist in order to attain the required information
about the company’s Strengths, Weaknesses, Opportunities and Threats.

Ans. Conduct a situational or SWOT analysis

A situation or SWOT (Strengths, Weaknesses, Opportunities, and Threats)
analysis is vital for the creation of any strategic plan. The SWOT analysis begins
with a scan of the external environment. Organizations need to examine their
business situation in order to map out the opportunities and threats present in
their environments. Sources of information may include stakeholders like,
customers (internal and external), suppliers, governments (local, state, federal,
international), professional or trade associations (conventions and exhibitions),
journals and reports (scientific, professional, and trade).

SWOT analysis provides the assumptions and facts on which a plan will be
based. Analyzing strengths and weaknesses comprises the internal assessment
of the organization. Mr. Vikram, General Manager can prepare the following
question checklist which conducting SWOT Analysis of their textile
company:

For assessing the strengths of the organization the following questions are
important:

1. What makes the organization distinctive?

2. How efficient is our manufacturing?
3. How skilled is our workforce?
4. What is our market share?
5. What financing is available?
6. Do we have a superior reputation?
For assessing the weaknesses of the organization the following questions are
important:

1. What are the vulnerable areas of the organization that could be

exploited?
2. Are the facilities outdated?
3. Is research and development adequate?
4. Are the technologies obsolete?

For identifying Opportunities the following elements need to be looked at:

1. In which areas is the competition not meeting customer needs?

2. What are the possible new markets?
3. What is the strength of the economy?
4. Are our rivals weak?
5. What are the emerging technologies?
6. Is there a possibility of growth of existing market?

Identifying Threats involves the following:

1. In which areas does the competition meet customer needs more

effectively?
2. Are there new competitors?
3. Is there a shortage of resources?
4. Are market tastes changing?
5. What are the new regulations?
6. What substitute products exist?

In general terms, the best strategy is one that fits the organization’s strengths to
opportunities in the environment.
The SWOT analysis is used as a baseline for future improvement, as well as gap
analysis. Comparing the organization to external benchmarks (the best practices)
is used to assess current capabilities. Benchmarking systematically compares
performance measures such as efficiency, effectiveness, or outcomes of an
organization against similar measures from other internal or external
organizations.

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