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Program Na me Single Business Management (Batch-10)

2. Name Ma Yin Yin Tun
3. Module Name Management and Organizational Behaviors
4. Assignment No. 2
5. Date 18.08.2017 (Friday)

1. (A) The Nature and structure of organizations,

Organizational Behaviors is a recent origin and developing as a separate field of study. It

has properly progressed in the latter half of the twentieth century. Its present nature may be
discussed as under.

A separate field of study - Organizational Behaviors is a separate field of study. Many

researches and analysis have been done in this field. But it is not still accepted as a science.
There is no foundation of basic concepts that may guide its development as a science.

Goal Oriented - Since OB is applied science it is oriented towards organizational goals.

Sometimes there may be conflict of organizational goals with infidel goals. In that case, both the
objectives are achieved simultaneously.

Interdisciplinary Approach - Organizational behaviors is interdisciplinary in nature. It is

based on behavioral and social sciences that contributes to the subject. It applies from this
disciplines ideas that will improve the relationships between people and organization.

Focus Attention on people - OB focus the attention on people. It is based on the concept that
need and motivation of the people should be given priority. If the people are given proper
environment and working condition, they are creative, independent and capable of achieving
organizational objectives.
Normative Science - OB is a normative science. It just not only define the cause and effect
relationship but also suggests, how the results of various researches can be applied to get
organizational results. What acceptable by society is not defines positive science, but it is done
by normative science.

From the above discussion it is clear that OB is not a discipline in itself. It draws concepts
and principles from other behavioral sciences, which help in directing human behavior in the

Information technology, globalization, diversity and ethics serve as important dimensions

for organizational behavior but the people are the key factor. The technology can be purchased
and copied but the people cannot be. Interestingly, whereas the technology changes dramatically,
sometimes monthly or even weekly, the human side of enterprise has not and will not change
that fast.
(B) There are mainly four major types of organizational structures.
(1)Functional Organizational Structure,
(2)Divisional Organizational Structure,
(3)Matrix organizational Structure
(4) Horizontally linked Organizational Structure
In a functional organizational structure, an organization's reporting relationships are grouped
based on specialty, or functional area. For example, there might be separate departments for
marketing, accounting, and engineering. Generally, all the functional heads will report directly to
the company president or CEO.

There are some definite advantages to grouping all staff by function:

 Staff is managed by a person with experience in their same specialty who can adequately
understand and review their work.
 Staffers have the opportunity to move up within their functional areas, which gives a
reason for them to stay long-term. The company gets the advantage of their expertise and
company knowledge over time.
 Staffers work with others in their field, which allows for knowledge sharing and lateral
job moves to learn new skills.


The functional structure also has some disadvantages, including:

 Functional areas may have difficulties working with other functional areas. There is often
a perception that they are competing with other functional areas for resources and a lack
of understanding of what other areas do for the company. So, the accounting department
may be upset that its request for an additional headcount is denied, but the company
financial results point to a need for additional sales people rather than accountants.
 As the company grows larger, the functional areas can become difficult to manage due to
their size. They can become almost like small companies on their own, with their own
cultures, facilities, and management methods.
 Functional areas may become distracted by their own goals and focus on them, rather
than on overall company objectives. For instance, there may be a desire by the I.T.
department to implement a new, state-of-the-art computer system, but the overall
company objectives support investment in new products instead. Since the unit doesn't
have an overview of the entire company, it may focus attention on goals that it believes
are important but which are not priorities for top management.
(2)(a) Decision making is the process of making choices by identifying a decision, gathering
information, and assessing alternative resolutions.

Using a step-by-step decision-making process can help you make more deliberate,
thoughtful decisions by organizing relevant information and defining alternatives. This approach
increases the chances that you will choose the most satisfying alternative possible.

Step 1 Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the
decision you must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is
needed, the best sources of information, and how to get it. This step involves both internal and
external “work.” Some information is internal: you’ll seek it through a process of self-
assessment. Other information is external: you’ll find it online, in books, from other people, and
from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out
each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met
or resolved through the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching
your goal. Finally, place the alternatives in a priority order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems
to be best one for you. You may even choose a combination of alternatives. Your choice in Step
5 may very likely be the same or similar to the alternative you placed at the top of your list at the
end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative
you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified need, you
may want to repeat certain steps of the process to make a new decision. For example, you might
want to gather more detailed or somewhat different information or explore additional

(b) Three major types of plans can help managers achieve their organization's goals:
strategic, tactical, and operational. Operational plans lead to the achievement of tactical plans,
which in turn lead to the attainment of strategic plans.
Planning helps an organization chart a course for the achievement of its goals. The process
begins with reviewing the current operations of the organization and identifying what needs to be
improved operationally in the upcoming year. From there, planning involves envisioning the
results the organization wants to achieve, and determining the steps necessary to arrive at the
intended destination--success, whether that is measured in financial terms, or goals that include
being the highest-rated organization in customer satisfaction.
Strategic planning is important to an organization because it provides a sense of direction
and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day
decisions and also for evaluating progress and changing approaches when moving forward.
An Operational Plan is a detailed plan used to provide a clear picture of how a team,
section or department will contribute to the achievement of the organization’s strategic goals.
Tactical planning takes a company's strategic plan and sets forth specific short-term
actions and plans, usually by company department or function. The tactical planning horizon is
shorter than the strategic plan horizon.

(c) Management by Objectives

Management by objectives (MBO) can also be referred as Management by Results or

Goal Management, and is based on the assumption that involvement leads to commitment and if
an employee participates in goal setting as well as setting standards for measurement of
performance towards that goal, then the employee will be motivated to perform better and in a
manner that directly contributes to the achievement of organizational objectives.

Advantages of Management by Objectives

1. Since Management by objectives (MBO) is a result-oriented process and focuses on setting

and controlling goals, if encourages managers to do detailed planning.

2. Both the manager and the subordinates know what is expected of them and hence there is no
role ambiguity or confusion.

3. The managers are required to establish measurable targets and standards of performance
and priorities for these targets. In addition, the responsibilities and authority of the personnel is
clearly established.

4. It makes individuals more aware of the company goals. Most often the subordinates are
concerned with their own objectives and the environment surrounding them. But with MBO, the
subordinates feel proud of being involved in the organizational goals. This improves their morale
and commitment.

5. Management by objectives (MBO) often highlights the area in which the employees need
further training, leading to career development.

6. The system of periodic evaluation lets the subordinates know how well they are doing. Since
MBO puts strong emphasis on quantifiable objectives, the measurement and appraisal can be
more objective, specific and equitable.

7. It improves communication between management and subordinates.

Disadvantages of Management by Objectives

1. MBO can only succeed if it has the complete support of the top management.

2. Management by Objectives (MBO) may be resented by subordinates. They may be under

pressure to get along with the management when setting goals and objectives and these goals
may be set unrealistically high. This may lower their morale and they may become suspicious
about the philosophy behind MBO.
They may seriously believe that MBO is just another of the management’s ploys to make the
subordinates work harder and become more dedicated and involved. The emphasis in the MBO
system is on quantifying the goals and objectives. It does not leave any ground for subjective
goals. Some areas are difficult to quantify and even more difficult to evaluate.

There is considerable paperwork involved and it takes too much of the manager’s time. Too
many meetings and too many reports add to the manager’s responsibility and burden. Some
managers may resist the program because of this increased paperwork.

The emphasis is more on short-term goals. Since the goals are mostly quantitative in nature,
it is difficult to do long-range planning because all the variables affecting the process of planning
cannot be accurately forecast due to the constantly changing socio-economic and technological
environment which affect the stability of goals.

Most managers may not be sufficiently skilled in interpersonal interaction such as coaching
and counseling, which is extensively required.

The integration of MBO system with other systems such as forecasting and budgeting etc.,
is very poor. This makes the overall functioning of all systems mare difficult.

Group goal achievement is more difficult. When the goals of one deportment depend on the
goals of another department, cohesion is more difficult to obtain. For example, the production
department cannot produce a set quota if it is not sufficiently supplied with raw materials and

Suggestions for Improving the Effectiveness of MBO

1. It is important to secure top management support and commitment. Without this

commitment, MBO con never really be a success. The top managers and their subordinates
should all consider themselves as players of the some team. This means that the superiors must
be willing to relinquish and shore the necessary authority with subordinates.

2. The objectives should be clearly formulated, should be realistic and achievable. For
example, it is not realistic for the R&D department of on organization to set a goal of, say, 10
inventions per year. These goals should be set with the participation of the subordinates. They
must be properly communicated, clearly understood and accepted by all. MBO works best when
goals are accepted.

3. MBO should be on overall philosophy of management and the entire organization, rather
than simply a divisional process or a performance appraisal technique. MBO is a major
undertaking and should replace old systems rather than just being added to it. Felix M. Lopex
has observed, when an organization is managed by objectives, it becomes performance
oriented. It grows and it develops and it becomes socially useful.

4. The goals must be continuously reviewed and modified, as the changed conditions require.
The review technique should be such that any deviations are caught early and corrected.
5. All personnel involved should be given formal training in understanding the basics as
well as the contents of the programmer. Such education should include as to how to set goals, the
methods to achieve these goals, methods of reviews and evaluation of performance and
provisions to include any feedback that may be given.

6. Management by Objectives (MBO) system is a major undertaking based upon sound

organizational and psychological principles. Hence it should be totally accepted as a style of
managing and should be totally synthesized with the organizational climate. All personnel
involved must have a clear understanding of their role authority and their expectations. The
system should be absorbed totally by all members of the organization.

(3)(a) The main difference between leaders and managers is that leaders have people
follow them while managers have people who work for them. A successful business owner
needs to be both a strong leader and manager to get their team on board to follow them towards
their vision of success. The terms leadership and management, like many business terms, are
often used 4However, there is an important difference between managers and leaders.

A manager may be a leader, or a leader may be a manager, but a manager is not necessarily
a leader and a leader is not necessarily a manager! Leadership is a specific and difficult task.
Attributes at least 15% of a firm's success directly to its leader, but clearly this leaves the
other 85% attributable to other factors - one of which is the quality of the management.
Management, like leadership is difficult to define and categories, which has left the field open
for millions of books on the subject. In this section, we will examine some of the more seminal
research on the subject. However, as a starting point, we will explore some general differences
between the two terms:

The Role of the Manager

Management's function is the effective and efficient deployment of the resources of the
firm. A manager is someone who, as a result of appointment to a particular role or position, has
legitimate power to carry out that function. Great managers tend to have one thing in common:
they possess the ability to turn employee skills and talents into improved performance and the
satisfaction of organizational goals. The essence of management is delivering excellent quality
and customer service. However, these are measures of management success and outcomes; the
real focus of management is transforming employee skills and talents to deliver these outcomes.
The coaching instinct is, therefore, a core skill of good managers.

It can be argued that management is more about tactical decisions in an organization,

leaving the vision and strategy to the leader. Management is mostly about processes. Managers
establish and/or follow rules and procedures and follow the culture of the organization. This is a
simple way to see how leadership is different to management:

The Role of the Leader

Leaders need to win the hearts and minds of their followers to ensure that their vision of the
future is understood and followed by everyone. Leadership is mostly about behavior. It is
particularly important at significant change points in the firm's development. When the business
is young the founder needs to provide the vision for the organization and to drive this forward.
When large organizations change, leaders need to re-energies the workforce, refocus the vision
and set the new strategic direction of the business.

At the core of leadership is an ability to cut through individual differences and focus on
common needs. Leadership relies most strongly on less tangible and less measurable things like
trust, inspiration, attitude, decision-making, and personal character. Unlike managers, leaders are
instigators of change, so they are risk-takers and decision makers. They:

 Identify the fundamental elements of an organization; who it serves and its core strengths
 Set the strategic direction of the organization
 Are optimistic, innovative, entrepreneurial and creative

Leadership is centrally concerned with people. The leader focuses on the future and rallies
others to this vision. Of course leadership involves decisions and actions relating to all sorts of
other things, but leadership is special compared to any other role because of its unique
responsibility for people.
(b) Managers have to perform many roles in an organization and how they handle various
situations will depend on their style of management. A management style is an overall method
of leadership used by a manager. There are two sharply contrasting styles that will be broken
down into smaller subsets later:

o Autocratic
o Permissive

Each style has its own characteristics:

Autocratic: Leader makes all decisions unilaterally.

Permissive: Leader permits subordinates to take part in decision making and also gives them a
considerable degree of autonomy in completing routine work activities.

Combining these categories with democratic (subordinates are allowed to participate in decision
making) and directive (subordinates are told exactly how to do their jobs) styles gives us four
distinct ways to manage:

Directive Democrat: Makes decisions anticipatively; closely supervises subordinates.

Directive Autocrat: Makes decisions unilaterally; closely supervises subordinates.

Permissive Democrat: Makes decisions anticipatively; gives subordinates latitude in carrying
out their work.

Permissive Autocrat: Makes decisions unilaterally; gives subordinates latitude in carrying out
their work.

In what situations would each style be appropriate? Inappropriate?

Managers must also adjust their styles according to the situation that they are presented with.
Below are four quadrants of situational leadership that depend on the amount of support and
guidance needed:

Telling: Works best when employees are neither willing nor able to do the job (high need of
support and high need of guidance).

Delegating: Works best when the employees are willing to do the job and know how to go about
it (low need of support and low need of guidance).

Participating: Works best when employees have the ability to do the job, but need a high
amount of support (low need of guidance but high need of support).

Selling: Works best when employees are willing to do the job, but don’t know how to do it (low
need of support but high need of guidance).

The different styles depend on the situation and the relationship behavior (amount of support
required) and task behavior (amount of guidance required).

Can you guess which management styles would work best for each situation listed above?

Should managers use only one management style? Situational style?

Listed below are a few situations and options for what you would do. Try to decide which of
the four situational styles would work best in each situation. Then pick the option that best fits
that style.

Situation 1

The employees in your program appear to be having serious problems getting the job done.
Their performance has been going downhill rapidly. They have not responded to your efforts to
be friendly or to your expressions of concern for their welfare.

Which style would you pick? What would you do?

a. Reestablish the need for following program procedures and meeting the expectations for
task accomplishment.
b. Be sure that staff members know you are available for discussion, but don’t pressure
c. Talk with your employees and then set performance goals.
d. Wait and see what happens.

Situation 2

During the past few months, the quality of work done by staff members has been
increasing. Record keeping is accurate and up to date. You have been careful to make sure that
the staff members are aware of your performance expectations.

Which style would you pick? What would you do?

a. Stay uninvolved.
b. Continue to emphasize the importance of completing tasks and meeting deadlines.
c. Be supportive and provide clear feedback. Continue to make sure that staff members are
aware of performance expectations.
d. Make every effort to let staff members feel important and involved in the decision
making process.

Situation 3

Performance and interpersonal relations among your staff have been good. You have
normally left them alone. However, a new situation has developed, and it appears that staff
members are unable to solve the problem themselves.

Which style would you pick? What would you do?

Continue to involve the staff in the planning, but direct the change.
Announce the changes and then implement them with close supervision.
Allow the group to be involved in developing the change, but don’t push the process.

Let the staff manage the change process.

a. Bring the group together and work as a team to solve the problem.
b. Continue to leave them alone to work it out.
c. Act quickly and firmly to identify the problem and establish procedures to correct it
d. Encourage the staff to work on the problem, letting them know you are available as a
resource and for discussion if they need you.

Situation 4
You are considering a major change in your program. Your staff has a fine record of
accomplishment and a strong commitment to excellence. They are supportive of the need for
change and have been involved in the planning.

Which style would you pick? What would you do?

a. Continue to involve the staff in the planning, but direct the change.
b. Announce the changes and then implement them with close supervision.
c. Allow the group to be involved in developing the change, but don’t push the process.
d. Let the staff manage the change process.

(c) People have a boss or coach they remember. The reason could be the person was a
candidate worthy of a film villain role. Or, it could be because that person helped move an
organization forward in unanticipated ways. One of the reasons for a memorable boss could the
person's leadership style.
Transactional Leaders
The transactional leadership style requires hard lines between leaders and followers. This
type of leader focuses on exchanges of benefits or transactions with subordinates. Transactional
leaders believe people are motivated by rewards and punishment. To a transactional leader, the
promise of reward drives followers to reach their maximum potential.
Transformational Leaders

Transformational leaders view themselves as social engineers in some ways. They seek to
make changes and improvements in individuals and social systems. This type of leader enjoys
assessing the strengths and weaknesses of followers and using that information to help them
achieve their best. The transformational leader also identifies with followers and derives
inspiration from interactions with subordinates.

(4)(a) The Importance of Employee Motivation. Motivating your employees is vital to any
business. A motivated workforce means a highly productive staff, all of which will help you
achieve your business goals. And this should be a main objective in your organizational and
business plan.

Benefits of Motivated Employees

Employee motivation is highly important for every company due to the benefits that it brings to
the company. Benefits include:

Increased employee commitment

when employees are motivated to work, they will generally put their best effort in the tasks
that are assigned to them.

Improved employee satisfaction

Employee satisfaction is important for every company because this can lead towards a
positive growth for the company.
Ongoing employee development
Motivation can facilitate a worker reaching his/her personal goals, and can facilitate the
self-development of an individual. Once that worker meets some initial goals, they realize the
clear link between effort and results, which will further motivate them to continue at a high level.

Improved employee efficiency

An employee’s efficiency level is not only based on their abilities or qualifications. For the
company to get the very best results, an employee needs to have a good balance between the
ability to perform the task given and willingness to want to perform the task. This balance can
lead to an increase of productivity and an improvement in efficiency.

How to Increase Employee Motivation


The easiest way to increase employee motivation is by having positive communication at the
workplace. Not relying only on emails but by making sure they talk to their employees in person
and even on a personal level, if possible.

Try setting aside some time each day to talk with employees or you can join them during
coffee breaks instead of sitting at your desk. By doing so, you actually make employees feel as
though you are part of the team; a leader instead of just the boss.

Employees also want to see the company that they are working for succeed. Many have
excellent ideas, ranging from money saving to operational improvements. Management must
make an effort to take some time to ask and listen to suggestions. Nothing is more worthwhile
than feeling valued.

Value Individual Contributions

Management should ensure their employees on how their individual efforts and contribution
plays an important part of the company’s overall goals and direction. Employees will take pride
and be engaged in their work if they are aware how their efforts create an impact the
organization; regardless of how big or small their contributions are.

Management does not have to reward their employees with gifts every single time they did
a good job at a task. At times, a simple “Thank You” or “Great job” will suffice. These
meaningful words acknowledge effort, build loyalty and encourage people to work even harder.

Positive Workplace Environment

Sometimes, the employees lack motivation because their workplace does not have a positive
work environment. To fix this, management could sent out surveys and get feedback from
employees in order to solve the issues that they may face.
Management could also post a positive quote or picture by the copier, coffee machine or
somewhere else that is visible and that receives high foot traffic so that others can see. Flora and
fauna also helps create a serene workplace environment for your employees, so why not add a
couple of plants around the office.

Management could also find creative ways in which to consistently keep their employees
motivated as much as possible. You can read our post on how to motivate your employees in 12
easy steps to help you with your company’s employee motivation.

In Summary

A positive workplace is the basic element that will get your company to the top. We
understand that it may be time consuming and difficult to encourage employee motivation at the
workplace. However, in order to achieve a high level of employee productivity, management
needs to encourage a positive workplace environment.

Ensure that your employees feel that their work and efforts is an important contribution to
the company’s success. Remember to always keep an ‘open-door’ policy and have an
approachable management team.

Good luck in motivating your employees!

Job satisfaction or employee satisfaction has been defined in many different ways. Some
believe it is simply how content an individual is with his or her job, in other words, whether or
not they like the job or individual aspects or facets of jobs, such as nature of work or
Factors of Workplace Satisfaction

Keeping employees engaged and satisfied takes more than just good pay and benefits. The
following list reveals some of the key job satisfaction aspects cited by employees:

 Respect – According to the SHRM report, employees rate respectful treatment of all
employees as the most important factor in job satisfaction.
 Trust – Perhaps because of workplace uncertainty in the years following the Great
Recession, employees indicated that trust between themselves and senior management
was another highly important satisfaction factor.
 Security – If you’ve ever had to go to work each day wondering whether your job is
secure, you know it can cause a great deal of anxiety. Organizations can provide a sense
of security through honest communication and transparency about the company’s health
and long-term viability.
 Healthy Environment – Workplaces that are free from stress, morale issues, harassment
and discriminatory practices can create a positive and healthy environment for everyone.
 Career Path – No one wants a dead-end job. Employees are more likely to excel when
they can see an established upward path, with the opportunity to earn a higher wage and
take on greater responsibilities.
 Pay and Benefits – Good wages aren’t the only reason employees find satisfaction in
their jobs, but they typically rank high on the list. Competitive pay generally makes
employees feel valued, and gives them less reason to look elsewhere for work.

How important is Job Satisfaction?

There is little doubt that great employees are an organization’s number one resource.
Keeping workers happy helps strengthen a company in many ways, including:

 Lower Turnover – Turnover can be one of the highest costs attributed to the HR
department. Retaining workers helps create a better environment, and makes it easier to
recruit quality talent and save money. The bottom line: satisfied employees are typically
much less likely to leave.
 Higher Productivity – Irrespective of job title and pay grade, employees who report high
job satisfaction tend to achieve higher productivity.
 Increased Profits – Keeping employees safe and satisfied can lead to higher sales, lower
costs and a stronger bottom line.
 Loyalty – When employees feel the company has their best interests at heart, they often
support its mission and work hard to help achieve its objectives. And, they may be more
likely to tell their friends, which helps spread goodwill.

(b) Effective Organizational Control Systems

The management of any organization must develop a control system tailored to its
organization's goals and resources. Effective control systems share several common
characteristics. These characteristics are as follows:

 A focus on critical points. For example, controls are applied where failure cannot be
tolerated or where costs cannot exceed a certain amount. The critical points include all
the areas of an organization's operations that directly affect the success of its key

 Integration into established processes. Controls must function harmoniously within

these processes and should not bottleneck operations.

 Acceptance by employees. Employee involvement in the design of controls can increase


 Availability of information when needed. Deadlines, time needed to complete the

project, costs associated with the project, and priority needs are apparent in these criteria.
Costs are frequently attributed to time shortcomings or failures.

 Economic feasibility. Effective control systems answer questions such as, “How much
does it cost?” “What will it save?” or “What are the returns on the investment?” In short,
comparison of the costs to the benefits ensures that the benefits of controls outweigh the
 Accuracy. Effective control systems provide factual information that's useful, reliable,
valid, and consistent.
 Comprehensibility. Controls must be simple and easy to understand.