1. Define the terms strategy.

Explain the following:

a) Corporate strategy
b) Business strategy
c) Functional strategy
Strategy means the grand plan and the term is borrowed from the military which
distinguished between the grand plan and the actual action by calling the former
strategy and the latter statistics.
It may be classified into three terms namely,
Corporate strategy
If you are a company like TATA or BIRLA, you will have several businesses under you
and a corporate headquarters which controls these. Each of these businesses may be run
by an independent company much like Tata Motors runs the vehicles business and Tata
Consultancy Service runs the IT business. The corporate headquarters will have grand
plans on how each business should operate. For example, it might say that Tata Motors
should design, develop, and manufacture an indigenous small car Nano or that TCS
should expand business to china.
This grand plan created by the corporate headquarters is called corporate strategy. It lays
down the grand plan to be followed by each business under a corporate headquarters. If
you are small like Raju you will not have a corporate strategy; however, will still have a
strategy for your business. Through you can call it the corporate strategy of Raju on the
argument that Raju is a corporate. It is perhaps inappropriate. Since Raju is not very big,
usually we prefer to call his strategy as business strategy.
Business strategy
Every business, small or big, will have a business strategy. This is the grand plan for
doing business. For example, Raju can make a grand plan of expanding his business to
another district or having branches. He can take a decision to be the provider of low cost
furniture or highly differentiated furniture, household furniture only, a supplier of all
furniture needs etc. this is what business strategy is. If you were a TATA company, each
business of TATA would have their own business strategy in consonance with the
corporate strategy.
Functional strategy
Once you have a business strategy, each independent department will need its own
strategy. For example, the HR of Tata Motors will need a strategy quite different from the
HR of TATA Consultancy Service. So the operations, marketing, finance, HR, etc of each
business will make their own grand plan or strategy and this is called functional
strategy.in the case of Raju, he might plan to hire more carpenters and pay daily wages or
wages per piece. This is the HR strategy. In other words, the grand plan made by each
functional area is called functional strategy.

2. Define the term management. Explain the Behavioural science theory and Systems
theory.
Management has been happening right through the history of man and it is all about
making things smooth or shall we say efficient. It is also about achieving our goals which
in modern management literature we call effectiveness
According to Harold Koontz management is an art of getting things done through and
with people is formally organised 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.
Modify definition of Harold Koontz as the process of designing and maintaining an
environment in which the individuals working in groups efficiency employ resources and
accomplish the selected goals of self and the organisation. This definition brings to fore
the following key issues of management;

It is about people and other resources

There are goals bur goals of the individual and the organisation has to be managed
It involves creating an environment where people and resources interact to
produce the goals.

Behavioural science theory

The thought was organised by Vilfredo Pareto in 1896, and he researched on
organisation and management relationship. Later, Hugo Munsterberg applied
psychology to increase industrial production in 1912 and around the same time,
Walter Dill Scott applied psychology to advertising, marketing, and personnel in 1910
and 1911. But it was Elton Mayo and F.J Roethlisberger who made an impact on the
behavioural science theory through their Hawthorne experiments in Western Electric
Company in 1933. These experiments proved that good working relationship with the
supervisor and colleagues and the idea of challenge in the job accounted for higher
productivity. Challenge is created through setting high goals which cannot be
normally achieved but which can be achieved with the little additional effort. These
experiments brought to fore the importance of behavioural science in management.
Extending the idea sometime in 1946 and 1947, Max Weber propounded the theory of
bureaucracy.
Systems theory
Though the system theory can be traced to biology, where we have cardiovascular
system, nervous system, etc. which are fairly independent yet interdependent, it was
Chester Barnard who extended this into management are through his writing functions
of the executive in 1938. In systems theory we perceive that organisation have a
number of fairly independent systems such as purchase system, operation system,
marketing system, financial system, etc. the working of these are independent, but it
has to be integrated by the manager, this factory, perhaps, bring the idea of integration
as the key component of management.

3. Give the definition and importance of planning in an organisation and explain the
steps in planning.
Panning 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 is important for the following reason:

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 which ta actual performance can be measured
and reviewed.
It plays a vital role in helping to avoid mistakes or recognise hidden
opportunities.
It helps in forecasting the future and makes the future visible to some extent.
The steps in planning are
Qualifying plans by budgeting
Formulating plans
Selecting a course
Evaluating alternative course
Determining alternative course
Developing premises
Establishing objective
Being aware of opportunities

In details the steps in planning

Being aware of opportunities this means being aware of the customer
needs, market, competition, our strengths, and weaknesses.

Establishing objective 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.

Developing premises deciding on the environment in which our plans are

going to operate. Business has external environment created by political
factors to include legislation, legal framework etc.

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 which we will
handle in some details in a subsequent section in this unit.

Evaluating alternative course comparing the alternative to find out which

of them will meet our goals and at optimal cost and profit keeping
sustainability into mind.
Selecting a course selecting the course that we want to follow.

Formulating plans this implies making plans that support the course of
action by buying equipment, space, planning, the type of HR, etc.

Qualifying plans by budgeting identifying the cost involved, how the

financial resources will be mobilised, what is capital expenditure, what is
operational expenditure, the working capital, etc.

4. Define the term Controlling? What are the prerequisites of effective control?
Controlling can be defined as measuring and correcting of performance to achieve the
organisational goals. According to Brech Controlling is a systematic exercise which is
called as a process of checking actual performance against the standards or plans with a
view to ensure adequate progress and also recording such experience as is gained as a
contribution to possible future needs
Perquisites of effective control are
Tailoring controls to plans and positions a control is exercised on an activity
or a group of activities. It follows that what controls is good for a position may not
be relevant for another.
Tailoring controls to individual manager controls have to be adjusted to the
individual managers capability also. If someone does not understand a control,
he/she will not trust it or use it as a result of which it will become dysfunctional
Designing point to the exceptions at critical point if a control has to be
effective, it must control the exception and that too at critical point. For example,
the critical point in home delivery of a birthday cake is the time and accuracy of
writing the name.
Objective of controls many management actions are subjective, but when
controls are created they must be objective, accurate, and must suit a standard.
While this may be relatively easy in machine related systems indicator, we have to
be careful when we have to relate it to the intangible areas.
Flexibility controls must be flexible to include the changed plans, unforeseen
circumstances, or outright failure. For example, Sambhavi may use budget control
to say the inventory level but if the sales are significantly higher or lower, there
should be flexibility in the control.
Fitting to the organisational culture imagine putting tight controls over
Sambhavi whose culture is family-like and open with the freedom to experiment.
The control will most certainty affect the culture which to begin with is the

competitive advantages of Sambhavi. Therefore, it must fit the culture. If you

have a tight and bureaucratic system, a lose control all also not work.
Economy of controls controls must be worth their costs. Creating controls
which are excessively expensive is counter-productive. For example, we cannot
have the same controls in an aircraft and a car.
Ability to lead to corrective action the control should lead to corrective action.
Only then it closes the loop and leads to better performance. For example, if the
ROI of an outlet is below the standards specified, there should be a review system,
which detects the sections that have not contributed their part and have exceeds it
so that the performance can be corrected or rewarded.

5. What are attitudes? Explain the components and functions of attitude.

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 organisation because they have to perceive specific aspects like pay, hours
of work, promotion, etc. of their work life in the wider context of their generalised
attitudes. Attitudes are also known as frames of reference
Components of attitude are
There are three components of attitude namely
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 persons feelings that result from his/her
belief about 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 individuals feelings about
something or someone.
Behaviour. This component refers to the individuals 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 behavioural component of an attitude refers
to an intension to behave in a certain way toward someone or something.

Functions of attitude are

According to Katz attitude serve four important functions

Adjustment function. Attitude often help people to adjust to their work

environment, well treated employees tend to develop a positive attitude towards
their job, management and the organisation in general, while berated and illtreated organisational members develop a negative attitude.
Ego-defensive function. Attitude helps people to retain their dignity and selfimage. When a young faculty member who is full of fresh ideas and enthusiasm,
joins the organisation, the older members might feel somewhat threatened by
him/her.
Value-expressive function. Attitude provides 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.
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.

6. Define leadership. Write a brief note on Contingency Theories of Leadership.

Warren Bennis definition of leadership is focused much more on the individual
capability of the leader. Leadership is a function of knowing yourself, having a
vision that is well communicated, building trust among colleagues and taking
effective action to realise your own leadership potential.
Contingency theories of leadership
Contingency theories suggest that there is no one best style of leadership and
that an effective style depends on how the leader adopts a style in relation to
the group and the situation. A previously successful style may not be effective
in a new context. Effective leadership is about finding a good fit between the
behaviour, context, and need.
Fielders contingency model (FCM) of leadership

This model dominates the modern literature on contingency theories. FCM

postulates that the leaders effectiveness is based on situational contingency
which is a result of the interaction of two factors, i.e., leadership style and
situational favourableness. Though over 400 studies have been conducted using
this theory, it is not a highly popular model. Fielder suggested that the leadership
style of the leader can be measured by an instrumental called least preferred coworker. The term and its use seem to have made Fielder unpopular. He identified
three situational components hat determine the favourableness of situation control.
They are:
How defined and structured the work is?

How much position power (authority) the leader has?

The relationship between the leader and the followers.
Though there might be critism that it is complex and the LPC measures are
inaccurate and often miss its predictive validity, etc., this model gives us a clear
ides of the fit between the leader and the situation and tends to substantiate that
effectiveness is contingent upon the leaders orientation and the situation.