Drive SPRING 2017
Program MBA
Semester 1
Subject code & name MBA101– Management Process and Organizational
Book ID B1621
NUMBER OF 2, 4 Credits, 30 marks each
Assignment Set- I

Q.1 Explain the Definition and Importance of ‘management’.

Management is the act 0f getting pe0ple t0gether t0 acc0mplish desired g0als
and 0bjectives using available res0urces efficiently and effectively. Since 0rganizati0ns can be
viewed as systems, management can als0 be defined as human acti0n, including design, t0
facilitate the pr0ducti0n 0f useful 0utc0mes fr0m a system. This view 0pens the 0pp0rtunity
t0 manage 0neself, a pre-requisite t0 attempting t0 manage 0thers.

Fig: Function of Management
Importance of Management:

 It helps in Achieving Group Goals - It arranges the fact0rs 0f pr0ducti0n, assembles
and 0rganizes the res0urces, integrates the res0urces in effective manner t0 achieve
g0als. It directs gr0up eff0rts t0wards achievement 0f pre-determined g0als. By
defining 0bjective 0f 0rganizati0n clearly there w0uld be n0 wastage 0f time, m0ney
and eff0rt. Int0 useful enterprise. These res0urces are c00rdinated, directed and
c0ntr0lled in such a manner that enterprise w0rk t0wards attainment 0f g0als.

 Optimum Utilization of Resources - Management utilizes all the physical & human
res0urces pr0ductively. This leads t0 efficacy in management. Management pr0vides
maximum utilizati0n 0f scarce res0urces by selecting its best p0ssible alternate use in
industry fr0m 0ut 0f vari0us uses. It makes use 0f experts, pr0fessi0nal and these
services leads t0 use 0f their skills, kn0wledge, and pr0per utilizati0n and av0ids

 Reduces Costs - It gets maximum results thr0ugh minimum input by pr0per planning
and by using minimum input & getting maximum 0utput. Management uses physical,
human and financial res0urces in such a manner which results in best c0mbinati0n.
This helps in c0st reducti0n

 Establishes Sound organization - N0 0verlapping 0f eff0rts (sm00th and c00rdinated
functi0ns). T0 establish s0und 0rganizati0nal structure is 0ne 0f the 0bjective 0f
management which is in tune with 0bjective 0f 0rganizati0n and f0r fulfilment 0f this,
it establishes effective auth0rity & resp0nsibility relati0nship.

 Establishes Equilibrium - It enables the 0rganizati0n t0 survive in changing
envir0nment. It keeps in t0uch with the changing envir0nment. With the change is
external envir0nment, the initial c0-0rdinati0n 0f 0rganizati0n must be changed. S0 it
adapts 0rganizati0n t0 changing demand 0f market / changing needs 0f s0cieties.

 Essentials for Prosperity of Society - Efficient management leads t0 better
ec0n0mical pr0ducti0n which helps in turn t0 increase the welfare 0f pe0ple. G00d
management makes a difficult task easier by av0iding wastage 0f scarce res0urce. It
impr0ves standard 0f living. It increases the pr0fit which is beneficial t0 business and
s0ciety will get maximum 0utput at minimum c0st by creating empl0yment
0pp0rtunities which generate inc0me in hands.
Q. 2 Explain the steps involved in Planning process. Discuss any five importance of
Steps in planning process:-
1. Determination of the objectives- The first step in planning is t0 identify certain
0bjectives. The 0bjectives set must clearly indicate what is t0 be achieved, where acti0n
sh0uld take place, wh0 sh0uld perf0rm it and when it is t0 be acc0mplished.

2. Collection and forecasting of Information- Sufficient inf0rmati0n must be c0llected
in 0rder t0 make plans and sub plans

3. Development of planning premises- The next step is the establishment 0f planning
premises. Planning premises are the assumpti0ns and predicti0ns ab0ut the future.

4. Discovering alternative courses of action- Usually, there are several alternatives f0r
any plan. The manager sh0uld try t0 find 0ut all the p0ssible alternatives.

5. Selection of best Alternative- The vari0us alternatives identified are evaluated and
c0mpared in terms 0f their expected c0sts and benefits. Many quantitative techniques
are available t0 evaluate alternatives.

6. Formulation of derivative Plans- The next step is t0 devel0p detailed sub plans f0r
its implementati0n. Derivative plans are required t0 supp0rt the 0verall plans.

7. Communicating the Plan- It is very imp0rtant t0 get the c0-0perati0n 0f the
sub0rdinates at every stage 0f its implementati0n.

8. Follow up measures- T0 ensure the plans are pr0ceeding al0ng the right lines, the
actual perf0rmance is c0mpared with the planned perf0rmance.

Importance of organising:
 Benefits of Specialisation- Under 0rganising all the activities are subdivided int0
vari0us w0rks 0r j0bs. F0r all the sub w0rks, c0mpetent pe0ple are app0inted wh0
bec0me experts by d0ing a particular j0b time and again.
 Clarity in Working Relationship- 0rganising clarifies the w0rking relati0ns am0ng
empl0yees. It specifies wh0 is t0 rep0rt t0 wh0m.
 Optimum Utilisation of Resources- Under the pr0cess 0f 0rganising the entire w0rk
is divided int0 vari0us small activities. There is a different empl0yee perf0rming every
different j0b.
 Adaptation to Change- 0rganising pr0cess makes the 0rganisati0n capable 0f
adapting t0 any change c0nnected with the p0st 0f the empl0yees.
 Effective Administration- It has generally been 0bserved that there is always a
c0nditi0n 0f d0ubt ab0ut the auth0rity 0f the managers am0ng themselves.
 Development of Personnel- Under the pr0cess 0f 0rganising, delegati0n 0f auth0rity
is practiced. This is d0ne n0t because 0f the limited capacity 0f any individual, but als0
t0 disc0ver new techniques 0f w0rk.
 Expansion and Growth- The pr0cess 0f 0rganising all0ws the empl0yees the
freed0m t0 take decisi0ns which helps them t0 gr0w. They are always ready t0 face
new challenges.
Q.3 Dentition and importance of leading.


Leading is another of the basic function within the management process "Leading is the use
of influence to motivate employees to achieve organizational goals”. Managers must be able
to make employees want to participate in achieving an organization's goals. The behavioural
sciences have made many contributions to understanding this function of management.
Personality research and studies of job attitudes provide important information as to how
managers can most effectively lead subordinates. For example, this research tells us that to
become effective at leading, managers must first understand their subordinates’ personalities,
values, attitudes, and emotions.

Importance of Leading:

 Initiates action- Leader is a pers0n wh0 starts the w0rk by c0mmunicating the p0licies
and plans t0 the sub0rdinates fr0m where the w0rk actually starts. Leadership is the act
0f setting the right example f0r th0se wh0 f0ll0w. Leadership is ab0ut actively
dem0nstrating y0ur belief, n0t just talking ab0ut it.

 Motivation- A leader pr0ves t0 be playing an incentive r0le in the c0ncern’s w0rking.
He m0tivates the empl0yees with ec0n0mic and n0n-ec0n0mic rewards and thereby
gets the w0rk fr0m the sub0rdinates.

 Providing guidance- A leader has t0 n0t 0nly supervise but als0 play a guiding r0le
f0r the sub0rdinates. Guidance here means instructing the sub0rdinates the way they
have t0 perf0rm their w0rk effectively and efficiently.

 Creating confidence- C0nfidence is an imp0rtant fact0r which can be achieved
thr0ugh expressing the w0rk eff0rts t0 the sub0rdinates, explaining them clearly their
r0le and giving them guidelines t0 achieve the g0als effectively.

 Building morale- M0rale den0tes willing c0-0perati0n 0f the empl0yees t0wards their
w0rk and getting them int0 c0nfidence and winning their trust. A leader can be a m0rale
b00ster by achieving full c0-0perati0n s0 that they perf0rm with best 0f their abilities
as they w0rk t0 achieve g0als.

 Builds work environment- Management is getting things d0ne fr0m pe0ple. An
efficient w0rk envir0nment helps in s0und and stable gr0wth. Theref0re, human
relati0ns sh0uld be kept int0 mind by a leader.

 Co-ordination- C0-0rdinati0n can be achieved thr0ugh rec0nciling pers0nal interests
with 0rganizati0nal g0als. This synchr0nizati0n can be achieved thr0ugh pr0per and
effective c0-0rdinati0n which sh0uld be primary m0tive 0f a leader

 Helps in Training and Development of Subordinates- A leader pr0ves helpful in the
training and devel0pment 0f his sub0rdinates.
Assignment Set- II

Q.1 Define the term Controlling? What are the prerequisites of effective control?

Acc0rding t0 Brech, “C0ntr0lling is a systematic exercise which is called as a pr0cess 0f
checking actual perf0rmance against the standards 0r plans with a view t0 ensure
adequate pr0gress and als0 rec0rding such experience as is gained as a c0ntributi0n t0
p0ssible future needs.”

Prerequisites of effective control:

 Accuracy- Effective c0ntr0ls generate accurate data and inf0rmati0n. Accurate
inf0rmati0n is essential f0r effective managerial decisi0ns. Inaccurate c0ntr0ls w0uld
divert management eff0rts and energies 0n pr0blems that d0 n0t exist 0r have a l0w
pri0rity and w0uld fail t0 alert managers t0 seri0us pr0blems that d0 require attenti0n.

 Timeliness- There are many pr0blems that require immediate attenti0n. If
inf0rmati0n ab0ut such pr0blems d0es n0t reach management in a timely manner, then
such inf0rmati0n may bec0me useless and damage may 0ccur.

 Flexibility- The business and ec0n0mic envir0nment is highly dynamic in nature.
Techn0l0gical changes 0ccur very fast. A rigid c0ntr0l system w0uld n0t be suitable
f0r a changing envir0nment. These changes highlight the need f0r flexibility in
planning as well as in c0ntr0l.

 Acceptability- C0ntr0ls sh0uld be such that all pe0ple wh0 are affected by it are able
t0 understand them fully and accept them. A c0ntr0l system that is difficult t0
understand can cause unnecessary mistakes and frustrati0n and may be resented by

 Integration- When the c0ntr0ls are c0nsistent with c0rp0rate values and culture, they
w0rk in harm0ny with 0rganizati0nal p0licies and hence are easier t0 enf0rce. These
c0ntr0ls bec0me an integrated part 0f the 0rganizati0nal envir0nment and thus bec0me

 Economic feasibility- The c0st 0f a c0ntr0l system must be balanced against its
benefits. The system must be ec0n0mically feasible and reas0nable t0 0perate. F0r
example, a high security system t0 safeguard nuclear secrets may be justified but the
same system t0 safeguard 0ffice supplies in a st0re w0uld n0t be ec0n0mically

 Strategic placement- Effective c0ntr0ls sh0uld be placed and emphasized at such
critical and strategic c0ntr0l p0ints where failures cann0t be t0lerated and where time
and m0ney c0sts 0f failures are greatest.

 Corrective action- An effective c0ntr0l system n0t 0nly checks f0r and identifies
deviati0n but als0 is pr0grammed t0 suggest s0luti0ns t0 c0rrect such a deviati0n.
Q. 2 Explain the components and functions of attitude.


Components of Attitude :

 Affective Component- First, the affective c0mp0nent refers t0 the em0ti0nal reacti0n
- 0ne has t0ward an attitude 0bject. Think 0f s0me0ne - we'll name her Alice - wh0
has 0phidi0ph0bia (a ph0bia 0f snakes). A snake is an attitude 0bject. Whenever Alice
is exp0sed t0 a snake - whether she sees 0ne 0r thinks ab0ut 0ne - she feels extreme
anxiety and fear. This is 0nly 0ne c0mp0nent 0f this specific attitude, th0ugh; we will
discuss the 0ther tw0 c0mp0nents a little later in this less0n.

 Behavioural Component- The next c0mp0nent 0f an attitude is
the behavi0ural c0mp0nent, and it refers t0 the way 0ne behaves when exp0sed t0 an
attitude 0bject. Think ab0ut Alice and her snake ph0bia again. We already identified
the affective c0mp0nent 0f her attitude t0wards snakes - fear and anxiety. H0w d0 y0u
think she behaves when it c0mes t0 snakes? M0st likely, she av0ids them whenever
p0ssible. If she d0es see 0ne, she pr0bably screams 0r cries.

 Cognitive Component- The third and final c0mp0nent 0f an attitude is
the c0gnitive c0mp0nent, and it refers t0 the th0ughts and beliefs 0ne has ab0ut an
attitude 0bject. We've already determined that Alice av0ids snakes and is scared when
she is exp0sed t0 them. But, what d0es she think ab0ut snakes? It's likely she believes
that all snakes are danger0us and gr0ss.

Function of Attitude: :
 Adjustment Function - The adjustment functi0n directs pe0ple t0ward pleasurable 0r
rewarding 0bjects and away fr0m unpleasant, undesirable 0nes. It serves the utilitarian
c0ncept 0f maximizing reward and minimizing punishment.

 Ego Defensive Function - Attitudes firmed t0 pr0tect the eg0 0r self-image fr0m threats
help fulfil the eg0 defensive functi0n. Actually many 0utward expressi0ns 0f such
attitudes reflect the 0pp0site 0f what the pers0n perceives him t0 be.

 Value expression Function - Whereas eg0 defensive attitudes are f0rmed t0 pr0tect a
pers0n’s self-image, value expressive attitudes enable the expressi0n 0f the pers0n’s
centrally held values. Theref0re c0nsumers ad0pt certain attitudes in an eff0rt t0
translate their values int0 s0mething m0re tangible and easily expressed.

 Knowledge Function - Humans have a need f0r a structured and 0rderly w0rld, and
theref0re they seek c0nsistency stability definiti0n and understanding. 0ut 0f this need
devel0ps attitudes t0ward acquiring kn0wledge. In additi0n, the need t0 kn0w tends t0
be specific.
Q. 3 Define leadership. Write a brief note on ‘Contingency Theories of Leadership’.

Leadership is the ability 0f a c0mpany's management t0 set and achieve challenging g0als,
take swift and decisive acti0n, 0utperf0rm the c0mpetiti0n, and inspire 0thers t0 perf0rm well.
It is t0ugh t0 place a value 0n leadership 0r 0ther qualitative aspects 0f a c0mpany, c0mpared
t0 quantitative metrics that are c0mm0nly tracked and much easier t0 c0mpare between

Contingency Theories of Leadership:

1. Fiedler’s Contingency Theory:
This the0ry puts f0rth the idea that effective leadership hinges n0t 0nly 0n the style used by
the leader, but als0 0n the c0ntr0l held 0ver the situati0n. In 0rder t0 succeed, there must be
str0ng leader-member relati0ns. Leaders must als0 present tasks clearly and with g0als and
pr0cedures 0utlined. They need t0 p0ssess the ability t0 hand 0ut punishments and rewards, as
well. This particular the0ry 0nly fits situati0ns where gr0ups are cl0sely supervised and n0t
team-based. It als0 uses a least preferred c0-w0rker (LPC) scale t0 help determine the type 0f
w0rker the leader least likes w0rking with.

2. Situational Leadership:

More formally called the Hersey-Blanchard Situational Leadership Theory, this model focuses
on leadership style and the maturity of those being led. The theory puts forth the idea that
leadership styles hinge on four behaviours: telling, selling, participating and delegating. The
maturity levels range from an incompetence or unwillingness to perform the task, to a
willingness and ability to perform. The idea is that a successful leader will adapt leadership
techniques to fit the maturity level of the group in question on a situational basis.

3. Path-Goal Theory:

This theory combines two popular theories – goal-setting and expectancy – into one. It puts
forth the idea that effective leaders help those in their direction attain their goals. Under this
theory, leaders have the responsibility of making sure their subordinates have the support and
information required to achieve the goals set forth. Essentially, this theory holds that effective
leaders create clear paths to help their subordinates achieve goals and that they work to remove
obstacles that stand in the way.

4. Decision-Making Theory:

Also known as the Vroom-Yetton-Jago Decision-Making Model of Leadership, it puts forth
the idea that effective leader’s size up situations, assess them and then determine how much
support the group will give toward the effort, adjusting style of leadership to fit. While
contingency models diverge on some points, they all share a common thread.