Professional Documents
Culture Documents
Semester: 2 Credit: 4
Course Title: Principles of Management
& Organizational Behavior Course Code:21ODBCT155
Sec A
Question No. 1-2 3-4 5-7 8-10
Sec B
Question No. 1 2 3 4 6
Student Signature:
UID:D21BCA16016 Course Code:21ODBCT155
Answer - Organizational behavior is the academic study of how people interact within groups.
The principles of the study of organizational behavior are mainly applied in efforts to make
companies operate more effectively.
KEY TAKEAWAYS
Organizational behavior is the academic study of how people interact within groups and its
principles are primarily applied in efforts to make businesses operate more effectively.
The study of organizational behavior includes areas of research devoted to improving job
performance, increasing job satisfaction, fostering innovation and encouraging leadership and is
the foundation of corporate human resources.
Answer - Henri Fayol, also known as the 'Father of Modern Management Theory', gave a new
concept to the concept of management. He introduced a general principle that can be applied to
all levels of management and to every department. The Fayol principle is practiced by managers
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Henri Fayol
The fourteen principles of management created by Henri Fayol:
1. Division of Work-
2. Authority and Responsibility-
3. Discipline-
4. Unity of Command-
5. Unity of Direction-
6. Subordination of Individual Interest-
7. Remuneration-
8. Centralization-
9. Scalar Chain-
10. Order-
11. Equity-
12. Stability-
13. Initiative-
14. Esprit de Corps-
Answer - Since most large-scale undertakings are organized as joint stock companies, the top
level of management is made up of a board of directors. However, in practice the directors do not
participate in the day-to-day affairs of the enterprise. But this function is generally delegated to
managing directors or general managers. He is called the chief executive and is responsible for
carrying out the broad policies framed by the board. However, the ultimate control rests with the
directors.
This top level management is the policy making body responsible for the overall direction and
success of all the activities of the company.
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Answer - Training and Development is one of the main functions of the Human Resource
Management Department. Training refers to a systematic setup where employees are instructed
and taught matters of technical knowledge related to their job. It focuses on teaching employees
how to use particular machines or how to perform specific tasks to increase efficiency.
Whereas, development refers to the overall overall and educational development and maturity of
people in managerial positions. The process of development is about insight, attitude,
adaptability, leadership and human relations.
Answer - Learning is the process by which a person receives, ingests and stores or accepts
information. Key features of learning; It is the process of acquiring knowledge to change human
behavior through interaction, practice and experience.
Our experiences with the information learned make up our body of knowledge. Learning is a
process unique to each individual.
Some learn quickly, scan information and master a concept or skill effortlessly.
Others stumble when processing information, taking longer to grasp the concept of requiring
multiple exposures at a constant time.
Answer - When two or more persons are grouped together either by organization or on the basis
of social needs, it is known as group. On the other hand, a team is a collection of people, who are
linked together to achieve a common objective.
Most of the work in a business unit is done in groups. Although the individual personality of an
employee is important, their effectiveness depends on the teams in which they are working
collectively to achieve an objective. In a particular team, there may be several groups in which
group members individually help their leader accomplish goals. Below you can see the
difference between group and team in an organization, which is explained in a tabular form.
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9. Define recruitment.
Recruitment is the process of selecting the right person for the right post and at the right time.
Recruitment also refers to the process of attracting, selecting and appointing potential candidates
to meet the resource requirements of the organisation.
Candidates can be recruited internally i.e. from within the organization or from external sources.
Answer - Planning is an important condition for achieving the cherished goals of a business
enterprise. In all managerial activities, it comes first because of the following advantages:
2. Since planning predicts the future and also makes a provision for it, it gives an added strength
to the business for its steady growth and continued prosperity.
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Answer - 2. Definitions
Organization - a consciously coordinated social unit, made up of two or more
people who work on a relatively continuous basis to achieve a common goal or set
of goals.
Organizational Behavior—According to Stephen P. Robbins, "Organizational"
Behavior as a systematic study of the actions and attitudes that people display
organizations.
Disciplines that Contribute to the Field of Organisational
Behaviour
Organizational behavior is an applied behavioral science and involves the integration of
Studies conducted in behavioral disciplines like psychology, sociology,
Anthropology, social psychology and political science.
Psychology- it is the science or study of behavior and it includes human as well as
animal behavior. interpersonal aspects of organizational behavior such as
Motivation, Personality, Perception Attitude Learning, Training and Development, Tasks
Stress, Emotions, Conflict Management attributes his studies to psychology. Diverse
Organizational Behavior and Its Role in Management of Business 565
Psychological tests are conducted in organizations for the selection of employees,
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Measuring personality characteristics and ability. The contribution of psychology has been
enriched
Much in the field of organizational behavior.
Sociology- It is the study of group behaviour. Sociology has enriched
Organizational behavior in the field of leadership, group dynamics, communication,
Formal and informal organisation, group process and decision making.
Anthropology- It is the study of mankind and its culture. organizations have
their own culture. Culture influences human behavior. perception of an employee
The way things go about and how it works is influenced by the culture of its organization.
Anthropology is more relevant to organizational behavior today due to globalization,
Mergers and acquisitions of various industries. people have to work today
Organizations with workforce diversity.
Social Psychology- This subject is a mixture of the concepts of psychology and
Sociology. It focuses on the influence of people on each other and tries to achieve
Better human behavior in the organization. One of the key areas in which it has helped
Management is 'change' - how to implement it successfully and reduce resistance to it.
Political Science-Organizations are Political Institutions and this is Political Science
Which helps in understanding the behavior of individuals in the political environment.
Government rules and regulations play a decisive role in the development of organizations.
Role of Organizational Behavior in Management of Business
Organizational Behavior Provides Insights to Multiple People Solutions Simultaneously
The challenges facing the organisations. Some of the important roles
performed by organisational behaviour in management of business are as follows:-
1. Globalisation- Due to globalisation, organisations are no longer confined to one
particular country. The Manager’s job is changing with the expansion of the
organisations across the national borders. Example, Volkswagen builds its cars
in Mexico, Mercedes and BMW in South Africa. Due to globalisation, the
management has to deal with the problems of unfamiliar languages, laws, work
ethics, management styles etc. The functions of hiring, training, etc must
acquire a global perspective. Organisational Behaviour helps the management
to become flexible, and proactive and enables it to execute the organisation on
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a global scale.
2. Managing work Force Diversity- Organisations are a hetrogeneous mix of
people in terms of age, gender, race etc. Managing the workforce diversity has
become a global concern. Managers have to deal with individuals and groups
belonging to different ethnic cultures. They have to exercise control and
channelize behaviour in the desired direction. Organisational behaviour help
the managers to effectively deal with work force diversity by promoting its awareness, increasing
diversity skills, encouraging culture and gender
diversity.
3. Improving Quality and Productivity- What are the problems the industry is facing?
excessive supply. This has increased the competition to a great extent. almost every
Manager is facing the same problem of improving productivity,
The quality of goods and services provided by their organization. programs
such as business process reengineering, and total quality management
are being implemented to achieve these goals. organizational behavior helps
Managers to empower their employees, as they are the dominant force
implement this change.
4. Improving Customer Service- Most of the employees work in the service sector. NS
Jobs in the service sector are in great demand. It requires constant contact
With the customers of the organizations i.e. customers. Management must ensure that
Employees do everything to satisfy the customers of the organization. NS
The attitude and behavior of an employee affects customer satisfaction.
Organizational behavior helps managers improve customer service and
organizational performance.
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a group is a group of people who interact with each other; recognize the rights and obligations as
members and who share a common identity.
Characteristics of a Group:
Regardless of the size or the purpose, every group has similar characteristics:
(b) Formal social structure (the rules of the game are defined)
(c) Common fate (they will swim together)
(d) Common goals (the destiny is the same and emotionally connected)
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Examples of assigned tasks are the development of a new product, the improvement of a
production process, or designing the syllabus under semester system.
Other common task groups are ad hoc committees, project groups, and standing committees. Ad
hoc committees are temporary groups created to resolve a specific complaint or develop a
process are normally disbanded after the group completes the assigned task.
3. Functional Groups:
A functional group is created by the organization to accomplish specific goals within an
unspecified time frame. Functional groups continue to exist after the attainment of the present
goals and objectives. Examples of functional groups would be a marketing department, a
customer service department, or an accounting department.
Unlike formal groups, informal groups are formed naturally and in response to the common
interests and shared values of individuals. They are created for purposes other than the
fulfillment of organizational goals and have no specified time frame. Informal groups are not
appointed by the organization and members may invite others to join from time to time.
i. Interest Group:
Interest groups usually continue over time and may last longer than general informal groups.
Members of interest groups may not be part of the same organizational department but they are
bound together by some other common interest.
The goals and objectives of group interests are specific to each group and may not be related to
organizational goals and objectives. An example of an interest group would be students who
come together to form a study group for a specific class.
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Answer - Building a high performance team involves more than just randomly assembling a
group of talented individuals. For a team to be truly effective, its members must unite with the
same vision and be motivated to bring that vision to life. They must share clear, measurable
goals, and be committed to each play their part in the overall success of the group.
4. Set expectations
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Define a standard of conduct for the team to ensure that each member understands what is
expected of them. Will communication be frequent, open, honest and transparent? Will the
contribution be encouraged, valued and recognized? Will the conflict be handled constructively?
Will team decisions and feedback be respected? Establishing clear standards from the outset will
ensure that each member's conduct and contribution is fair.
As the world becomes increasingly dependent on remote working, it is important to ensure that
team members are on the same page. Communication around project timelines and delivery will
be critical, and accountability will need to be defined. Success will be bolstered by building
trusting relationships to bridge the virtual distance between remote team members. For this,
online tools such as Yammer, video chat and phone conversations become beneficial to increase
connectivity and communication, and to avoid the sense of isolation that teams may experience.
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approach to planning that aims to remove barriers that may prevent an organization from
achieving its objectives. It involves working together by managers and their subordinates by
assigning responsibilities for setting goals and delegating authority to achieve goals. The final
step involves constant monitoring of performance so as to initiate continuous improvement.
All activities are goal oriented: The first important feature of MBO is that all activities under it
are goal oriented. This means that MBO focuses on the determination of unit and individual
goals along with organizational goals. These goals determine the state responsibilities of
different parts of the organization and help to coordinate the organization with its parts and its
environment.
MBO views the organization as a dynamic entity: This facility treats the organization as a
dynamic entity. It means that every organization is affected by various external and internal
factors hence organization is considered as a dynamic entity. The dynamic nature affects the
objectives which result in it becoming possible that the objectives set today cannot be met. In
such an event the organization may be forced to act swiftly to change its objectives.
MBO is a participatory effort: The MBO process is characterized by a high level of involvement
of relevant people in goal setting and performance appraisal. Increased involvement provides an
opportunity to influence decisions and build clear job relationships with managers and their
subordinates.
MBO Matches Objectives and Resources: When MBO approach is adopted by the organization
the objectives set are based on the available resources so as to avoid unfinished tasks or activities
due to paucity of resources.
MBO is a philosophy and not a technique: MBO is not a technique of management but it is a
philosophy, as a technique can be applied or used in only one department and its effect will be
felt only on particular department. For example an inventory technique can be used only in
relation to stock control and cannot be used in any other department like HRM.
MBO lays more emphasis on review and performance appraisal: Regular appraisal of work
performance of employees is one of the important features of MBO. This philosophy helps to see
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if all employees are performing at the expected level and also identify if there are any
impediments to their job performance.
MBO Provides More Freedom to Subordinates: With MBO philosophy subordinates are not only
associated with the task of coming up with objectives but they also get complete freedom in the
performance of their work. This philosophy empowers them to take decisions related to their
position and consequently increases their importance which improves their interest and job
satisfaction.
MBO lays more emphasis on results and not on work: with MBO philosophy the focus is more
on results. The subordinates have the freedom to choose which technique is to be adopted to
achieve the final result. This means that subordinates are expected to produce the best possible
results regardless of the technique used.
5. Write short note on the following:
i. Policies
ii. Objectives
iii. Budget
iv. Problem analysis
v. Standing plans
6. Explain in detail the process of Organizing.
The function of organizing is to organize, direct, coordinate and control the activities of an
enterprise. In other words, planning is the function through which management directs,
coordinates and controls business operations.
Planning involves establishing a strong organizational structure so that work can be done
according to plan. The purpose of organizing is to coordinate people with each other and work
towards the attainment of organizational goals.
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The managerial function of organizing can be termed as the 'process of organisation'. When
objectives have been set and policies are formulated, the necessary infrastructure of the
organization has to be created. Concentration moves to activities and tasks. These form the
'building blocks' of the organizational structure.
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Wire drawing - wire straightening - wire cutting - point grinding - polishing - pin-head fixing etc.
It was observed that as against 20 pins a day, work division and specialization enabled 10 people
to produce 48,000 pins a day – see the wonders of expertise!
(b) Efficiency:
Performing the same task over and over again increases the skill and efficiency of the workers.
Since complex work is broken down into smaller units, less skilled workers can be trained to
perform those activities.
Process 3. Grouping of Activities:
After people are assigned tasks, those performing similar activities are grouped into similar
departments. Various departments like production, marketing, finance etc. are created and filled
with people having different skills and expertise but performing similar activities. The grouping
of activities into departments is called departmentalisation. Each department works under the
supervision of the departmental head and is governed by a set of rules, procedures and standards.
Process 4. Defining Authority and Responsibility:
After creating the department, the departmental heads are appointed to carry out the activities of
their respective departments. It is ensured that the qualifications of the departmental head match
the job requirements of the department. Every head has the right to get the work done through
departmental members.
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The departmental head delegates responsibility and authority related to departmental activities to
the members of his department. It creates a structure of relationships where each person knows
their superiors and subordinates and their reporting relationships.
Process 5. Coordination of Activities:
When departments work for their own purposes, inter-departmental conflicts can develop. This
can affect the achievement of organizational goals. For example, the finance department wants to
cut costs, but the marketing department wants more money for advertising the products. This
conflict can be resolved through coordination so that all departments share common resources.
Resources are scarce and coordination helps in their optimum utilization. Coordination becomes
possible by defining the relationships between departments and people working in different
positions.
Process 6. Review and Reconstitution:
There should be continuous evaluation of the planning process so that changes in the
organization structure can be made as a result of changes in internal and external environmental
factors. Continuous evaluation and restructuring is an integral part of the planning process.
7. State and explain the basic steps involved in a typical selection procedure.
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