Unique Paper Code: 52411102

Name of the Paper: Business Organisation and

Management
Name of the Course: B. Com
Mode: Semester 1
Q1. Explain three formats of business namely Brick & Mortar, Pure online, and Brick & Click.
Which format is gaining popularity these days and why?
Ans.
BRICK & MORTAR
➢ Brick and mortar is the common term used to reference a retailer or business that operates a minimum of one physical
location
➢ It references the material used to construct a physical location, although, of course, not all physical locations are
actually built using bricks and mortar.
➢ Brick and mortar stores must employ more tricks in order to entice customers to leave their homes and come and shop
in a physical store
➢ Brick and mortar stores, while not as necessary as they once were, are still thriving
➢ Just as many brick and mortar stores are starting to create an online presence, a number of previously “internet only”
businesses are expanding their operations to include a brick and mortar presence in “the real world.”
➢ These type of businesses have strong street presence

PURE ONLINE
➢ Business model that works exclusively through the Internet
➢ Regardless of physical headquarters, these virtual businesses lower establishment costs and can exploit
specialization by addressing segmented audiences that are impossible to cover in fixed locations
➢ Companies that only operate online can sell products at a greater discount to customers because they have fewer
operational costs
➢ Internet business have fewer overheads but businesses that have a strong street presence inspire more customer
confidence
BRICK & CLICK
➢ Bricks and clicks, or omnichannel retail strategy, is a jargon term for a business model by which a
company integrates both offline (bricks) and online (clicks) presences Many retailers also offer
telephone ordering and mobile phone apps, with most providing telephone sales support.
➢ An example of the bricks and clicks model is when a chain of stores offers consumers a choice of
purchasing products either online, or physically, in one of their stores, which may subsequently be
either picked-up at one of their retail stores (click and collect, curbside pickup), or delivered.
➢ The model has many alternative combinations, as well as the related omnichannel concept
of showrooming where customers try on clothing in person but the actual purchased product is
ordered in-store on the retailer's website and delivered to their home later.

Format is gaining popularity these days: Brick & Click

➢ Combining online and offline retail efforts in your business plan has the power to amplify reach and
sales.
➢ “Don’t put all of your eggs in one basket.”
➢ This model is in line with the latest consumer trends, the economy, and even competition
➢ Customers can see goods in person to assess quality and fit (with clothing), get advice from
knowledgeable staff, and enjoy the shopping experience.
➢ Orders can be picked up at the store or delivered to customers’ homes according to their preference
and on their schedule.
➢ Orders can be placed from mobile devices even without access to a PC.
➢ Customers have the option of in-person returns, reducing the business’ shipping costs.
➢ Major brick-and-mortar stores can utilize their existing logistics networks for their new ecommerce
site.
Q2. Explain the nature of interaction between a business organisation and its environment (Micro, Meso,
and Macro environment).
Ans.
✓ Understanding the market environment as it relates to a given company requires not only identifying all known factors but also having
some sense of how those factors blend together to create the setting in which the company must operate.
✓ External business environments comprises of favourable events and unfavourable events. Favourable events if properly explored can
result in leading a successful business. Unfavourable events if not managed effectively may pose tough times for the organizations.
Scanning of external environment may lead to exploration of opportunities and threats.
✓ Opportunities may help an organization taking advantage of external environment. Exploration of threats helps an organization to
construct and implement a plan in order to safeguard their business interest.
✓ Main purpose of environmental scanning is to recognize new marketing opportunities. Marketing opportunity is an area of buyer
need or potential interest in which a company can perform profitably. Opportunities can be in many forms and marketers must have
an ability of spotting them.

The nature of interaction between a business organisation and its environment can be made on three levels: macro, meso and micro.
Macro – contextual level
➢ The contextual level consists of ‘global forces’, think about: economic development, demographics, politics, technological
developments and social developments. Foresight Cards – STEEP edition focusses on external forces that address the contextual
level.
➢ The macro-environment refers to all forces that are part of the larger society and affect the micro- environment. It includes concepts
such as demography, economy, natural forces, technology, politics, and culture. The macro-environment is less controllable.
➢ Factors affecting organization in Macro-environment are known as PESTEL, that is- Political, Economical, Social, Technological,
Environmental and Legal.
➢ The aspect of the macro-environment is the cultural environment, which consists of institutions and basic values and beliefs of a
group of people.
Meso – transactional level
➢ The transactional level consists of ‘market forces’, think about: suppliers, supply and demand,
distribution, competitors and strategic alliances.
➢ The meso-environment is the setting between the macro and micro opportunities. It shapes the
framework of a business or organisation and can be considered as its infrastructure- policies,
standard operating procedures, rules and guidelines.
➢ Quality systems or staff hand-books are good examples of the meso.

Micro – organizational level

➢ The organizational level involves forces that address the internal environment of the firm.
Think about: vision, mission, strategy, resources, processes, products and services.
➢ The micro environment refers to the forces that are close to the company and affect its ability
to serve its customers. It includes the company itself, its suppliers, marketing intermediaries,
customer markets and publics.
➢ The company aspect of microenvironment refers to the internal environment of the company.
This includes all departments, such as management, finance, research and development,
purchasing, operations and accounting. Each of these departments has an impact on
marketing decisions.
➢ For example, research and development have input as to the features a product can perform
and accounting approves the financial side of marketing plans and butt in customer
dissatisfaction.
➢ The micro-environment is made from individuals and organizations that are close to the
company and directly impact the customer experience.
Q3. Explain the decision making techniques to enhance creativity in the
organisation. Suggest at least six techniques to support your answer
Ans. Creativity allows the decision maker to more fully appraise and understand the problem, sometimes in
ways others can’t see it.
Creativity is the ability to link or combine ideas in novel ways, and their unique alternatives have to be
considered useful to others. Creativity is also known as divergent or lateral thinking. Lateral thinking moves
away from the linear approach that’s advocated in rational decision making.
The three components of creativity suggest that creativity lies at the
intersection of motivation, expertise and developed creative thinking skills.
1. Expertise. Technical, procedural and intellectual knowledge—is the
foundation for all creative work. Organizations can have a positive impact on
increasing employee expertise with training, mentorship programs, etc.
2. Creative thinking skills. Encompass all those personality traits we talked
about earlier that are common to creative leaders. Organizations, when
cognizant of the traits that foster creativity, can interview and select
candidates for hire that have these characteristics
3. Motivation. Here means that an individual wants to work on a particular task
because it’s interesting and engaging. An individual who is more intrinsically
motivated is likely to have an easier time developing creativity than one who
is more extrinsically motivated. Motivation determines the extent to which an
individual will engage his expertise and creative thinking skills
Decision making Techniques to supports creativity in the organisation:
1. Set Clear objectives:
Managers must have purpose for creativity. They should know what ideas to be tried, when and for what. Clear
objectives will optimize the use of time, energy and money
2. Encourage new ideas:
The manager should welcome new ideas. Listening to new ideas and implementing the profitable ones encourages a
creative climate in the organisation.
Improved communication: Interaction with people within and outside the enterprise encourages exchange of useful
information and generation of new ideas.
3. Tolerate failure:
New ideas may prove to be failures. People should not get disheartened. They should consider time, money and
energy in ideas that have failed as investment for bright future prospects
4. Recognise the need for change:
Though people are generally resistant to change, accepting the need for change is necessary to promote creativity.
People must feel that they will be benefitted by change.
5. Don’t drag decision making out too long. Avoid “analysis paralysis.”
When decision making is drawn out too long and too many options are evaluated in too much detail, group creativity
may be high initially but quickly decreases as the process takes too much time
6. Don’t act bureaucratically. Avoid “My way or the highway.”
A bureaucratic top-down leader makes a decision and requires the group to implement it, without input or feedback.
This may increase group efficiency in the short term, but it diminishes team buy-in and creativity in the long term
7. Read the Group. Develop each member.
Sometimes the leader’s mere recognition and encouragement of an individual member’s skills, attitude, or efforts
may be that one thing which “grows” that person into a strong collaborative member of the team.
“It is not advisable to control each and every aspect of organizational activities.” Comment on the statement. Also
discuss the relationship between Control and Planning.
organizational control is the process of assigning, evaluating, and regulating resources on an ongoing basis to
accomplish an organization's goals. To successfully control an organization, managers need to not only know what the
performance standards are, but also figure out how to share that information with employees.
Control can be defined narrowly as the process a manager takes to assure that actual performance conforms to the
organization's plan, or more broadly as anything that regulates the process or activity of an organization

Limitations of Controlling:
1. Difficulty in setting quantitative standards:
Control system loses its effectiveness when standard of performance cannot be defined in quantitative terms and it is
very difficult to set quantitative standard for human behaviour, efficiency level, job satisfaction, employee’s morale,
etc. In such cases judgment depends upon the discretion of manager.

2. No control on external factors:

An enterprise cannot control the external factors such as government policy, technological changes, change in
fashion, change in competitor’s policy, etc.

3. Resistance from employees:

Employees often resist control and as a result effectiveness of control reduces. Employees feel control reduces or
curtails their freedom. Employees may resist and go against the use of cameras, to observe them minutely.

4. Costly affair:
Control is an expensive process it involves lot of time and effort as sufficient attention has to be paid to observe the
performance of the employees.
Planning and controlling are two separate fuctions of management, yet
they are closely related. The scope of activities if both are overlapping to
each other. Without the basis of planning, controlling activities becomes
baseless and without controlling, planning becomes a meaningless
exercise. In absense of controlling, no purpose can be served by.
Therefore, planning and controlling reinforce each other.
Relationship between the two can be summarized in the following points
Planning preceeds controlling and controlling succeeds planning.
Planning and controlling are inseperable functions of management.
Activities are put on rails by planning and they are kept at right place
through controlling.
The process of planning and controlling works on Systems Approach
which is as follows :
Planning → Results → Corrective Action
Planning and controlling are integral parts of an organization as both are
important for smooth running of an enterprise.
Planning and controlling reinforce each other. Each drives the other
function of management.
Planning Originates Controlling → Controlling Sustains Planning
→ Controlling Provides Information for Planning → Planning and
Controlling are Interrelated → Planning and Control are Forward
Looking
Q5. “No single leadership style is the best.” Comment on the statement. Also
discuss three broad styles of leadership.
Ans. Different leadership styles are required in different and often challenging business environments.
During times of change, a transformational leadership style is often needed and can be very effective.
These transformational leaders are often charismatic – not necessarily boisterous – and inspire followers to
higher goals and achievements. They encourage followers to be creative and tackle original, challenging
projects with energy by extolling a shared vision. For transformational leaders, their leadership is an
entrepreneurial activity.

During business conditions that are defined by maintaining the status quo, a transactional leadership style
is often more appropriate. Instead of motivation for change, transactional leaders encourage excellence via
compliance and efficiency. This is a much more process-oriented style of leadership where tasks are
clearly defined, logic is virtuous and there is less outside-the-box thinking. In these organisations, leaders
strive to build higher performance cultures within the existing frameworks rather than creating something
new or different all the times.

Given the fluid nature of business today and increasing frequency of disruption, companies are
continuously transitioning through stages of change and certainty. Companies that can afford complacency
for the time being are bound to enter a period where change is necessary for survival. Thus, managers will
require more than just one type leadership skill throughout their career if they are to remain relevant, and
become effective leaders.
The style of leadership is based on the kind of control the leader exercises on a group and their behaviour.
1. Autocratic or Authoritative Style:
It is also known as leader centered style. Under this style of leadership there is complete centralisation of authority
in the leader i.e., authority is centered in the leader himself He has all the powers to take decisions. He designs the
work-load of his employees and exercise tight control over them. The subordinates are bound to follow his order and
directions.
Advantages:
(i) Autocratic leadership style permits quick decision-making.
(ii) It provides strong motivation and satisfaction to the leaders who dictate terms.
ADVERTISEMENTS:
(iii) This style may yield better results when great speed is required.
Disadvantages:
(i) It leads to frustration, low moral and conflict among subordinates,
(ii) Subordinates tend to shirk responsibility and initiative.

2. Democratic Style:
Under this style, a leader decentralises and delegates high authority to his subordinates. He makes a final decision
only after consultation with the subordinates. Two way communication channel is used. While delegating a lot of
authorities to subordinates, he defines the limits within which people can function. Democratic leaders have a high
concern for both people and work.
Advantages:
(i) Exchange of ideas among subordinates and leader improves job satisfaction and morale of the subordinates.
(ii) Human values get their due recognition which develops positive attitude and reduces resistance to change.
(iii) Labour absenteeism and labour turnover are reduced.
(iv) The quality of decision is improved.
Disadvantages:
(i) Democratic style of leadership is time consuming and may result in delays in decision-making.
(ii) It is less effective if participation from the subordinates is for name sake.
(iii) Consulting others while making decisions go against the capability of the leader to take decisions.

3. Free Rein or Laissez Fair style:

Under this style, a manager gives complete freedom to his subordinates. The entire decision-making
authority is entrusted to them. There is least intervention by the leader and so the group operates
entirely on its own. There is free flow of communication. In this style manager does not use power but
maintains contact with them. Subordinates have to exercise self control. This style helps subordinates to
develop independent personality.
Advantages:
(i) Positive effect on job satisfaction and moral of subordinates.
(ii) It gives chance to take initiative to the subordinates.
(iii) Maximum possible scope for development of subordinates.
Disadvantages:
(i) Under this style of leadership, there is no leadership at all.
(ii) Subordinates do not get the guidance and support of the leader.
(iii) Subordinates may move in different directions and may work at cross purpose which may create
problem for the organisation.
Free rein style of leadership may be appropriate when the subordinates are well trained, highly
knowledgeable, self-motivated and ready to assume responsibility.
Q6. Write short notes on Sociocracy, Flexi timings for work, and Workplace
diversity.
Ans.
SOCIOCRACY
➢ Sociocracy is a governance system, just like democracy or corporate governance methods. It’s best
suited for organizations that want to self-govern based on the values of equality.
➢ Also referred to as Dynamic Self-Governance or simply Dynamic Governance.

Sociocratic features come in the areas of structure, meetings, and continuous improvement.
Organizational structure:
➢ Small groups are the basis of everything. Those small groups are called circles.
➢ Those sociocracy circles have a defined aim (= a description of what the circle is doing) and full
authority in a domain (= what the circle has authority over).
➢ Circles will define roles, both to run itself smoothly and to “package” operations into meaningful bits.
Any member will fill one or more roles.
➢ Linking roles connect circles to other related circles. In double-linking, two people from one circle –
the delegate and the leader – are also full members of the parent circle so information can flow
between the teams and their decisions align.
Decision making and rounds
➢ Circles make policy decisions by consent. There is consent to a proposal when no member of the
circle has an objection.
➢ At the same time, circles use consent to elect people into roles like the circle leader, secretary,
facilitator or a self-defined operational role. The intention is that only people serve in offices who have
the trust of all their co workers.
➢ A circle will decide by consent what topics they put on their agenda and how much time they spend
on each topic.
➢ Rounds: a trademark tool for meetings, rounds refer to the practice of talking one-by-one in meetings
until everyone has spoken once in that round. The intention is to hear all voices. At the same time,
rounds contribute to more mutual listening and understanding.

Continuous improvement
➢ A set of practices supports the general commitment for continuous improvement of the organization.
Examples are performance reviews, meeting evaluations ,or a requirement to set review dates for
policies. The intention is for these agreements to be lived and maintained well.
➢ Intentional spaces for feedback encourage a commitment to growth and learning through feedback,
both on the organizational level, team, and individual level.
Flexi Timings For Work
➢ Flexitime, sometimes also called flextime, is a working schedule which allows employees to choose
when to start and end their workday, and/or how long to take their break for, within agreed limits set
by management.
➢ It’s one of the key ways to increase work flexibility and attractiveness of a workplace.
➢ You can increase work flexibility for your employees by changing three main parameters:
a) Working hours (e.g. flexitime)
b) Working patterns (e.g. job sharing)
c) Working locations (e.g. remote work, flexplace)
The end goal is to offer any combination of the above to employees, preferably a combination which will
boost both employee satisfaction and company productivity all at once.

The main advantages of flexitime for employees are:

➢ A better work environment with greater satisfaction and motivation
➢ Reduced stress and fatigue
➢ Easier and faster commuting, rush hours can be avoided
➢ Easier planning of quiet time in the office
➢ Full pay and benefits are kept
➢ Extended office hours
➢ Better fit of working hours with school hours, college hours, or care arrangements

The main advantages for employers are: higher productivity, reduced absenteeism and tardiness, and a
more attractive working place for keeping and attracting top talents.
The main challenges of flexitime for employees:
✓ It can take more discipline to manage flexible work
✓ You need a good software solution to keep logs
✓ Flexitime also presents some challenges for employers, such as less supervision during certain time periods, and
understaffing at times.
✓ It may also create difficulties with scheduling meetings, and tracking working hours can be difficult

Workplace Diversity
✓ Workplace diversity is the term used for the workplace composed of employees with varying characteristics, such as
different sex, gender, race, ethnicity, sexual orientation, etc.
✓ A company with workplace diversity is the company who has employees with a wide range of characteristics and
experiences.
✓ The term workplace diversity has been expanded to encompass many different characteristics, such as: Race,
Ethnicity, Gender, Age, Sexual orientation, Physical abilities and disabilities, Religion, Political beliefs, Education
,Socioeconomic background, Geographical orientation, Language, Culture, Military service

Increased range of ideas

➢ One of the key benefits of diversity in society is the vast range of ideas that can be explored.
➢ Diversity in the workplace will often result in a much broader spectrum of creativity, from people with different
backgrounds, skills and experiences.
➢ A wider range of different perspectives will be highly beneficial across all teams; from marketing to finance.

Increased employee engagement

➢ Employees who feel included and wanted will be more engaged and motivated to do well.
➢ In turn, a more engaged team will often yield better team performance; making it a win-win for employers.
Boosts company reputation & simplifies recruitment processes
➢ Diversity in the workplace will help to build a great reputation for the company; especially important
when you are looking to hire and retain talent.
➢ Especially in terms of graduate recruitment, D&I can play a huge role in attracting candidates to your
business; if done well, it can also help you stand out from the bigger firms.

Wider talent pool to choose from

➢ Companies that only hire men, for example, are limiting themselves to the skills of half the population,
this is just one of the many benefits of gender diversity in the workplace.

Helps you to understand your customers better

➢ Having a more diverse team will help your company gain a broader understanding of your customers,
what they want and what they look for.
➢ Who knows? Your company could be missing out on a huge group of potential customers that could
be explored by hiring more diversely.

Reduce employee turnover

➢ Companies with a diverse workforce will tend to retain employees for longer, because ultimately
employees who feel accepted and valued will be much less likely to leave.
➢ Likewise, companies who clearly value career development, and really care about their employees,
will tend to have a much higher retention rate than those who don't.