CITY OF OXFORD COLLEGE

MYANMAR INTERNATIONAL BUSINESS ACADEMY

Single Diploma in Business Management (Batch 10)

TITLE OF ASSIGNMENT

Module Name – Management and Organizational Bahaviour

Student Name – Ma Thin Thin

Lecturer – Daw Htay Htay

Assignment No.2

Date – 25.8.2017
Task 1

(a) Nature of Organizational Behaviour

An organization is a collection of people who work together to
achieve individual and organizational goals. Organizational
Behaviour is the study that investigates how individuals, groups
and structure affect and are affected by behaviour within
organizations, for the purpose of applying such knowledge
toward improving an organization’s effectiveness. It is concerned
with the study of the structure, functioning and performance of
organizations and the behavior of groups and individuals within
them.
Organizational Behaviour (OB) is a part of general management.
It represents behavioral approach to management. The OB is
heavily influenced by several other behavioral sciences and social
sciences like psychology, sociology and anthropology. OB has
psychological foundations. The concept like learning, perception,
attitude, motivation etc is borrowed from psychology, sociology
and anthropology.
OB is both art and science. It is considered as art because it
contains knowledge about behavior of individuals. It is
considered as science because it involves application of science.
Organizational Behaviour focuses the attention on people from
humanistic point of view. It is based on the belief that needs and
motivation of people are of high concern. It is oriented towards
organizational objectives. Organizational Behaviour tries to
integrate both individual and organizational objectives so that
both are achieved simultaneously.
The three internal organizational elements, people, technology
and structure and the fourth element, i.e., external social
systems may be taken as the scope of OB.

(1) People
The people constitute the internal social system of the
organization. They consist of individuals and groups.
 Groups may be large or small, formal or informal, official or
unofficial. They are dynamic. Human organization changes
everyday. It may change further in the coming days.
People are living, thinking and feeling being who created
the organization and try to achieve the objectives and
goals. Thus, organizations exist to serve the people and
not the people exist to serve the organization.

(2) Structure
Structure describes the organization formal frame work or
system of communication and authority. Different people in
an organization are given different roles and they have
certain relationship with others. It leads to division of
labour so that people can perform their duties or work to
accomplish the organizational goal. Different duties are to
be performed by different people. All are so related to each
other to accomplish the goal in a co-ordinated manner.
Thus, structure related to power and duties. One has the
authority and others have a duty to obey him.

(3) Technology
Technology imparts the physical and economic conditions
within which people work. The nature of technology
depends very much on the nature of the organization and
influences the work or working conditions. Thus,
technology brings effectiveness and at the same restricts
people in various ways.

(4) Social System

Social system provides external environment which the
organization operates. A single organization cannot exist
also. It is a part of the whole. One organization cannot give
everything and therefore, there are many other
organizations. All these organizations influence each other.
 It influences the attitudes of people, their working
conditions and above all provides competition for resources
and power.

Organizational Behaviour is the study of human behavior at

work in organizations.

(b) Various types of Organizational Structure

Organizational structure describes the formal framework of
organization or system of communication and authority within
organization. There has two structures, flat organizational
structure and tall organizational structure, but we can spread the
organizational structures base on chain of command (long or
short), span of control (wide or narrow), decision-making
(centralized or decentralized), departmentalization (functional,
customer, geographic, product and process) and so on.

Flat Organizational Structure

Flat Organizational Structure is simple structure since it usually
has only two or three vertical levels, an informal arrangement of
employees and one individual in whom decision-making authority
is centralized. It is most widely used by small businesses in
which the owner and manager are one and the same.

Advantages of Flat Organizational Structure

- Simple structure (low complexity) because there has only two
or three vertical levels.
- Fast, flexible and inexpensive to maintain and accountability is
clear.
- Quick decisions and actions can be taken.
- Fast and clear communication is possible among these few
levels of management.
- There has short ladder of promotion.
- There has smaller risk of divergence between the objectives of
one level and another.
 Disadvantages of Flat Organizational Structure

- This is effective only in small organizations.

- This has low formalization and high centralization.
- It is risky, because everything depends on one person.
- There has chances of loose of control because there has many
subordinates under one manager.
- There need greater flexibility at all levels.

Tall Organizational Structure

Tall Organizational Structure is a hierarchical structure with

many levels of management, and has a certain degree of
standardization and it is better suited for more complex or larger
scale organizations. Since there are many levels, decision-
making authority has to pass through more layers than flat
organizational structure.

Advantages of Tall Organizational Structure

- That is suitable for more complex or larger organizations.

- Clear defined roles and responsibilities between the various
levels.

Disadvantages of Tall Organizational Structure

- Possible confusion of objectives between the many levels.

- There has long ladder of promotion, which may discourage
those at the bottom.
- Discourage creativity and innovation in the organization.
- There has longer lines of command than flat organizational
structure.

Task 2

(a) Decision Making Process and types of decision

Decision Making is the process of making choices among
alternatives by identifying a decision. In general, the decision
 making process helps managers and other business professionals
solve problems by examining alternative choices and deciding on
the best route to take.
Using a step-by-step approach is an efficient way to make
decision to get the most satisfying alternative possible. There is
eight steps for decision making process, the decision maker need
to use all of the steps for some cases, but he/she need to use
only some steps for some cases.

Step (1) Identifying a Problem

The first step in making the right decision is identifying the

problem or opportunity between an existing and a desired
state of affairs. Problem identification is neither a simple
nor an insignificant step of the decision-making process.

Step (2) Identifying Decision Criteria

After identified a problem, we need to identify the decision

criteria is also important in making decision process. Every
decision maker has criteria that guide his/her decision,
he/she need to prepare decision criteria list.

Step (3) Allocating Weights to the Criteria

The criteria listed in step (2) are not all equally important
for decision making, so the decision maker must be
weighted in order as priority list. When the decision maker
decide the problems, the weighted priority list of criteria
guide him/her.

Step (4) Developing Alternatives

 The decision maker need to do list the several possible
alternatives that could solve the problem. He/she can also
use his/her imagination and additional information to
construct new alternatives. In this step, he/she will list all
possible and desirable alternatives.

Step (5) Analysing Alternatives

The decision maker need to analyse the possible

alternatives listed in step (4) before he/she decide to seek
the best or suitable alternatives.

Step (6) Selecting an Alternatives

Once the decision maker developed and analysed the

alternatives base on the weighted decision criteria, he/she
is ready to select the alternatives that seems to be the
best one for him/her. He/she may be choose a combination
of alternatives for some situations.

Step (7) Implementing the Alternatives

The decision maker may be take some positive action by

implementing the alternatives that he/she choose in step
(6).

Step (8) Evaluating Decision effectiveness

In the final step, the decision maker consider the results of

decision and evaluate the effectiveness of his/her decision
that he/she made. If the decision has not met with the
identified needed, he/she may want to repeat some steps
of the process to make a new decision.
 There are two types of decision making, Programmed also known
as structured decisions and Non-programmed, also known as
unstructured decisions.

Programmed/Structured Decisions

Programmed or structured are those decisions, which are well

defined and some specified procedure or some decision rule
might be applied to reach a decision. Such decisions are routine
and repetitive and require little time for developing alternatives in
the design phase. Programmed or structured decisions have
traditionally been made through habit, by operating procedures
or with other accepted tools. These decisions are taken generally
by lower level managers. For example – purchase of raw
materials, granting leave to an employee, etc.

Non-programmed /Unstructured Decision

Decisions, which are not well defined and have not pre-specified
procedures decision rule are known as unstructured or non-
programmed decisions. These require a custom-made response.
These decisions are very important for the organization. For
example – opening of a new branch of the organization, a large
number of employees absenting from the organization, etc.

(b) Importance of Planning and types of plan

Planning involves defining the organization’s objectives or goals,
determining the steps necessary to arrive the goals and
developing subplans to coordinate activities. It is concerned with
both ends (what is to be done) and means (how it is to be done).
It is needed at every level of management of every organization
or even for and individual. In the absence of planning all the
business activities of the organization will become meaningless.
As first step of planning, need to define the objectives of the
organization in simple and clear words. If so the managers and
employees get a direction and all their efforts are focused
towards a particular end. They can coordinate their activities,
cooperate with each other and work in teams. Without planning,
departments could be working with different purposes, that may
be overlapping and wasteful activities. Planning is always done
for future and future is uncertain. With the help of planning
possible changes in future are anticipated and various activities
are planned in the best possible way. In this way, the risk of
future uncertainties can be minimized.
It is clear that planning selects the best alternative out of the
many available. All these alternatives do not come to the
manager on their own, but they have to be discovered. While
making such an effort of discovery, many new ideas emerge and
they are studied intensively in order to determine the best out of
them. In this way, planning imparts a real power of thinking in
the managers. It leads to the birth of innovative and creative
ideas.
A good plan provides various financial and non-financial
incentives to both managers and employees. These incentives
motivate them to work hard and achieve the objectives of the
organization. Thus, planning through various incentives helps to
motivate the personnel of an organization.
Finally, planning establishes objectives or standards that are
used in controlling. If we are not ensure about our activities to
accomplish as planned, we compare actual performance against
the objectives, identify any significant deviations, and take the
necessary corrective action. Without planning, there would be no
way to control.
The most popular ways to describe organizational plans are by
their breadth (strategic versus operational), time frame (short
 versus long term), specificity (specific versus direction), and
frequency of use (single versus standing).

Strategic versus Operational Plans

Plans that apply to the entire organization, establish the
organization’s overall objectives, and seek to position the
organization in terms of its environment are called strategic
plans. Plans that specify the details of how the overall objectives
are to be achieved are called operational plans.
Top and some of the middle management levels define the
strategic plans for long-term goals of the organization and
strategic plans tend to include an extended time period usually
three, five, even ten years, serve as the framework for lower-
level planning.
Some of the middle management level and lower management
levels define the operational plans for monthly, weekly and day-
to-day plans to accomplish the objectives of organizations.

Short-Term Versus Long-Term Plans

Financial analysts traditionally describe investment returns as
short, intermediate and long term. The short term covers less
than one year. Any time frame past five years is considered long
term. The intermediate term is any period in between.

Specific Versus Directional Plans

Specific plans have clearly defined objectives. There is no
ambiguity, no problem with misunderstandings. When
uncertainty is high and management must be flexible in order to
respond to unexpected changes, then it is preferable to use
directional plans.

(c) Advantages of Management by Objective (MBO)

- MBO develop the overall organizational goals and establish
specific goals and plans for various departments, subunits and
individuals.
- All managers have a clear idea of the important areas of their
work and of the standards required.

- The performance of staff can be assumed and their needs for

improvement highlighted.

- Greater participation may improve morale and communication

between management and subordinates.

- It makes individuals more aware of organizational goal.

- 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.

- MBO often highlights the area in which the employees need

further training, leading to career development.

- MBO helps to develop effective control. Control involves

establishing own standards, evaluating performance and
taking necessary remedial action if there are any deviations.
Well defined objectives serve as the best standard for
effective control.

- MBO ensures better and more effective management. MBO

forces management to think of planning for results, rather
than merely planning activities. MBO also force managers to
think how the objectives can be achieved and what resources
would be required, MBO also provides the standards of
control. All these lead to better management.

- With everyone working together for a common goal, there is a

much higher level of motivation to reach them.
- One of the main features of MBO is the continual monitoring
of progress. This allows everyone to measure their
performance against the standards that have been put in
place. It is those clear standards that allow everyone to work
towards a very identifiable set of goals, all allowing for better
control.

- MBO helps everyone within the organization, but it gives

mangers in particular the opportunity to display their
leadership skills.

Disadvantages of Management by Objective (MBO)

- Some companies always tend to raise goals. If these are too

high, employees become frustrated.

- Appraisals are sometimes made on personality traits rather

than on performance.

- Most managers may not be sufficiently skilled in interpersonal

interaction such as coaching and counseling, which is
extensively required.
- 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.
- It is difficult to make comparative ratings of individuals
because each individual's goals are different from those of
others in terms of complexity, etc.
- It is difficult to appraise and identify potential. MBO only deals
with performance on the present job.
- The method is extraordinarily time-consuming due to too
many meetings and reports.
- A number of problems can pop up when it comes time to
coordinate the company objectives across multiple
departments. Since each department has their own goal
 ideas, they may set unrealistic goals in order to undermine
others.
- MBO tends to falter without strong, continual commitment
from top management.
- MBO can be misused as a punitive device.

Task 3

(a) Differences between Manager and Leader

- Manager has employees, leader create fans.
- Manager creates goals, leader creates vision.
- Manager builds systems and processes, leader builds
relationships.
- Manager directs, leader coaches.
- Manager controls risk, leader takes risk.
- Manager plans the details, leader sets the direction.
- Manager sees a problem, leader sees an opportunity.
- Manager relies on control, leader inspires trust.
- Manager does things right, leader does the right thing.
- Manager communicates, leader persuades.
- Manager directs groups, leader creates teams.
- Manager tries to be hero, leader makes hero of everyone
around him/her.
- Manager takes credit, leader takes responsibility.
- Manager exercises power over people, leader develops power
with people.
- Manager has position power, leader has personal power.
- Manager goals for improvement, leader goals for innovation.

(b) Two Management Styles

Management is directed toward activities such as planning,
organizing, staffing and controlling in order to get a job done.
Management is the use of authority inherent in designated
formal rank to obtain compliance from organizational members.
 Let me discuss two management styles amount many styles:
Autocratic and Democratic.

(1) Autocratic

Managers who typically tend to centralize authority, direct work

method, make all important decisions with no involvement from
subordinated and they are very controlling. When we need quick
decision making, we can use this autocratic style. This style is
suitable for the employees who are unable and unwilling to take
responsibility for doing something. The disadvantage of this style
is subordinates may not be to try to get new ideas due to
managers limit them to make decisions. There has no two-way
communication, which can be demotivating.

(2) Democratic

Managers trust their subordinates and they encourage them to

make decisions. Managers who embrace this management style
delegate authority to their subordinates and they listen to the
advice given by subordinates. This style requires good two-way
communication and it suggests that managers are willing to
encourage leadership skills in subordinates. The ultimate
democratic system occurs when actual decisions are made based
on the majority view of all the employees.

By delegating the authority to subordinates, which is motivating

them. When we have complex decisions are required that need
specialists’ skills, we can use this style. If our subordinates are
not skilled or experienced enough, we may be make mistakes or
errors.

(c) Two Leadership Styles

Leadership is a process whereby an individual influences a group
of individuals to achieve a common goal.
Let me discuss two leadership styles amount many styles: The
Hersey-Blanchard Situational Theory and Path-Goal Theory.
(1) The Hersey-Blanchard Situational Theory

This theory is a contingency theory that focuses on followers’

level of readiness or maturity. Readiness is the ability and
willingness of people to take responsibility for directing their own
behavior. There has four types of leadership styles base on the
subordinates’ level of readiness as follow:

Telling (high task-low relationship) – The leader makes decisions

and defines how to do work for subordinates, this style is
suitable for the subordinates, who are both unable and unwilling
to take responsibility.

Selling (high task-high relationship) – The leader provides both

directive and supportive behavior to subordinates, this style is
suitable for the two types of subordinates, who are unable but
willing to do job cases and are able but unwilling to do job cases.

Participating (low task-high relationship) – Both leader and

subordinates participate to make decisions, and this style is
suitable for the subordinates, who are able but unwilling to do
what the leader wants.

Delegating (low task-low relationship) – The leader provides little

direction or support for the subordinates, who are both able and
willing for their job cases.

(2) Path-Goal Theory

This theory is also a contingency theory that need to assist his or

her subordinates in attaining their goals and to provide the
necessary direction and/or support to ensure that their goals are
compatible with the overall objectives of the group or
organization.

According to the first of all theory, the manager's job is viewed

as guiding workers to choose the best paths to reach their goals,
as well as the organizational goals. The theory argues that
leaders will have to engage in different types of leadership
behavior depending on the nature and the demands of a
particular situation. The path-goal theory identifies four
leadership styles as follow:

Supportive leadership

Considering the needs of the subordinates, showing concern for

their welfare and creating a friendly working environment. This
includes increasing the follower's self-esteem and making the job
more interesting. This approach is best when the work is
stressful, boring or hazardous.

Directive leadership

Telling followers what needs to be done and giving appropriate

guidance along the way. This includes giving them schedules of
specific work to be done at specific times. Rewards may also be
increased as needed and role ambiguity decreased (by telling
them what they should be doing).

This may be used when the task is unstructured and complex

and the follower is inexperienced. This increases the follower's
sense of security and control and hence is appropriate to the
situation.

Participative leadership
Consulting with followers and taking their ideas into account
when making decisions and taking particular actions. This
approach is best when the followers are expert and their advice
is both needed and they expect to be able to give it.

Achievement-oriented leadership

Setting challenging goals, both in work and in self-improvement

(and often together). High standards are demonstrated and
expected. The leader shows faith in the capabilities of the
follower to succeed. This approach is best when the task is
complex.

I believe that every leadership styles have both advantages and

disadvantages. No leadership style is better than the other but it
depends on the situation when they are applied. The situation
may include number of employees, their readiness level, their
level of education/development, how fast the decision needs to
be made, organizational culture, type of organization, etc. We
will use the leadership styles of The Hersey-Blanchard Situational
Theory and Path-Goal Theory base on the situation.

For example – when we have subordinates, who are unable but

willing to do job cases, we use Selling leadership of The Hersey-
Blanchard Situational Theory and Directive leadership of Path-
Goal Theory. When we have experts as subordinates, we use
Delegating leadership of The Hersey-Blanchard Situational
Theory and Participative leadership or Achievement-oriented
leadership of Path-Goal Theory.
Task 4

(a) Importance of employees’ motivation and job satisfaction

There has link between employees’ motivation and their level of
job satisfaction. If employees get job satisfaction, their job
motivation also improve, resulting in better job performance and
increase efficiency.
There are several reasons why employee motivation and job
satisfaction are important. Mainly because it allows management
to meet the organizational objectives. Without a motivated and
satisfied workplace, organizations could be placed in a very risky
position.
Motivated employees can lead to increased productivity and
allow an organization to achieve higher levels of output, they will
generally put their best effort in the tasks that are assigned to
them.
Employee satisfaction is important for every organization
because this can lead towards a positive growth for the
organization. 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, his/her
realise the clear link between effort and results, which will
further motivate them to continue at a high level.
Motivated and satisfied employees will have committed approach
towards organizational objective, in turn organizations will also
have to show similar commitment towards employee objectives.
(b) How effective control can improve organizational
performance
Control is the process of checking current performance against
predetermined standards contained in the plans to accomplish
the objectives of organization, with a view to ensuring adequate
progress and satisfactory performance and of correcting any
significant deviations. Controlling is the nature of follow-up to the
other three fundamental functions (planning, organizing and
leading) of management.
Control is the function of every manager. Managers at all levels
have to perform this function to contribute to the achievement of
organizational objectives. Control leads to appraisal of past
activities. The deviations in the past are revealed by the control
process. Corrective actions can be initiated accordingly. Control
is linked with future, as past cannot be controlled. It should
anticipate possible deviations and to think of corrective action for
the control of such deviations in the future. It is usually
preventive as presence of control system tends to minimize
wastage's, losses and deviations from standards. Control is
concerned with setting standards, measurement of actual
performance, comparison of actual performance with
predetermined standards and bringing to light the variations
between the actual performance and the standard performance.
Control implies taking corrective measures.
The effective control system must provide timely information,
and an accurate control system is reliable and produces valid
data. The control system should be both, objective and
understandable. Objective controls specify the expected results
in clear and definite terms and leave little room for argument by
the employees. This is necessary both for the smooth working
and the effectiveness of the system. The control system should
be flexible so that it can be adjusted to suit the needs of any
change in the environment. Economy is another requirement of
 every control. The benefit derived from a control system should
be more than the cost involved in implementing it.
The system should be acceptable to organization members.
When standards are set unilaterally by upper level managers,
there is a danger that employees will regard those standards as
unreasonable or unrealistic. A control system is most effective
when it motivates people to high performance. Since most
people respond to a challenge, successfully meeting to tough
standard may well provide a greater sense of accomplishment
than meeting an easy standard. However, if a target is so tough
that it seems impossible to meet, it will be more likely to
discourage than to motivate effort. Merely pointing of deviations
is not sufficient in a good control system. It must lead to
corrective action to be taken to check deviations from standard
through appropriate planning, organizing and leading. A good
system of control not only points out the deviations or exceptions
but also pinpoints them where they are important or strategic to
his operations.
Control aims at results and not at persons. It is for correcting a
situation, and not for reprimanding persons. Information or
feedback is the guide to control. The feedback is helpful to the
manager to determine how far the operations are proceeding in
conformity with plans and standards, and where remedial action
is called for. Control involves continuous review of standards of
performance and results in-corrective action which may lead to
change in the performance of other functions of management.
This makes control a dynamic and flexible process. Control is a
continuous activity. It involves constant analysis of validity of
standards, policies, procedures etc.

References
Lecture

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