MBA Semester 1 Subject Code: MB0038

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Management Process and Organzaton
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Q.1 Write a detailed note on management theories developed during classical Era. [10]
Ans.
Follett (1933) defined management as "the art of getting things done through people". One can
also think of management functionally, as the action of measuring a quantity on a regular basis
and of adjusting some initial plan.
Management functions are as follows:

1. Planning

2. Organizing

3. Commanding

4. Coordinating

5. Controlling

Planning
It involves the process of defining goals, establishing strategies for achieving these goals, and
developing plans to integrate and coordinate activities. Every organization needs to plan for
change in order to reach its set goal. Effective planning enables an organization adapt to change
by identifying opportunities and avoiding problems. It provides the direction for the other
functions of management and for effective teamwork. Planning also enhances the decision-
making process. All levels of management engage in planning in their own way for achieving
their preset goals.
Planning in order to be useful must be linked to the strategic intent of an organization.
Therefore, planning is often referred to as strategic in nature and also termed as strategic
planning.

Strategic Planning: Top level managers engage chiefly in strategic planning or long range
planning Strategic planning is the process of developing and analyzing the organization's
mission, overall goals, general strategies, and allocating resources.
Organizing
It involves designing, structuring, and coordinating the work components to achieve
organizational goal. It is the process of determining what tasks are to be done, who is to do,
how the tasks are to be grouped, who reports to whom, and where decisions are to be made. A
key issue in accomplishing the goals identified in the planning process is structuring the work of
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the organization. Organizations are groups of people, with ideas and resources, working toward
common goals. The purpose of the organizing function is to make the best use of the
organization's resources to achieve organizational goals. Organizational structure is the formal
decision-making framework by which job tasks are divided, grouped, and coordinated.
Formalization is an important aspect of structure. It is the extent to which the units of the
organization are explicitly defined and its policies, procedures, and goals are clearly stated. It is
the official organizational structure conceived and built by top management. The formal
organization can be seen and represented in chart form. An organization chart displays the
organizational structure and shows job titles, lines of authority, and relationships between
departments.

The steps in the organizing process include:
1. Review plans
2. List all tasks to be accomplished
3. Divide tasks into groups one person can accomplish - a job
4. Group related jobs together in a logical and efficient manner
5. Assign work to individuals
6. Delegate authority to establish relationships between jobs and groups of jobs.

A key issue in accomplishing the goals identified in the planning process is structuring the work
of the organization

3. Leading
An organization has the greatest chance of being successful when all of the employees work
toward achieving its goals. Since leadership involves the exercise of influence by one person
over others, the quality of leadership exhibited by supervisors is a critical determinant of
organizational success.
Supervisors can learn about leadership through research. Leadership studies can be classified as
trait, behavioral, contingency, and transformational. Earliest theories assumed that the primary
source of leadership effectiveness lay in the personal traits of the leaders themselves. Yet, traits
alone cannot explain leadership effectiveness. Thus, later research focused on what the leader
actually did when dealing with employees. These behavioral theories of leadership sought to
explain the relationship between what the leader did and how the employees reacted, both
emotionally and behaviorally. Yet, behavior can't always account for leadership in different
situations. Thus, contingency theories of leadership studied leadership style in different
environments. Transactional leaders, such as those identified in contingency theories, clarify
role and task requirements for employees. Yet, contingency can't account for the inspiration
and innovation that leaders need to compete in today's global marketplace. Newer
transformational leadership studies have shown that leaders, who are charismatic and
visionary, can inspire followers to transcend their own self-interest for the good of the
organization. An organization has the greatest chance of being successful when all of the
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employees work toward achieving its goals. Since leadership involves the exercise of influence
by one person over others, the quality of leadership exhibited by supervisors is a critical
determinant of organizational success.

Controlling

It involves monitoring the employees behavior and organizational processes and take
necessary actions to improve them, if needed. Control is the process through which standards
for performance of people and processes are set, communicated, and applied. Effective control
systems use mechanisms to monitor activities and take corrective action, if necessary.
According to Mintzberg (1973), managerial roles are: Informational roles, Decisional roles and
Interpersonal roles. Katz (1974) has identified three essential management skills: technical,
human, and conceptual. Luthans (1988) found that all managers engage in four managerial
activities: (i) Traditional managementThis activity consists of planning, decision making, and
controlling, (ii) CommunicationThis activity consists of exchanging routine information and
processing paperwork, (iii) Human resource managementthis activity consists of motivating,
disciplining, managing conflict, staffing, and training, and (iv) Networkingthis activity involves
socializing, politicking, and interacting with outsiders.

There are four steps in the control process.
They are as follows:

Step 1. Establish Performance Standards. Standards are created when objectives are set during
the planning process. A standard is any guideline established as the basis for measurement. It is
a precise, explicit statement of expected results from a product, service, machine, individual, or
organizational unit. It is usually expressed numerically and is set for quality, quantity, and time.
Tolerance is permissible deviation from the standard.
Organizational behavior (OB) is a field of study that investigates the impact that individuals,
groups, and structure have on behavior within an organization, then applies that knowledge to
make organizations work more effectively (Robbins, 2003). An effective and efficient manager
should focus on two key results. Management functions have been grouped into four
categories: planning, organizing, leading and controlling.
The characteristics of management are goal oriented. Economic resource, distinct process,
integrative force, intangible force, a science and an art, results through others, system of
authority and multidisciplinary subject.




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Q.2 . Write a short note on: [10]
(a) Contemporary work cohort (b) Alexithymia
Ans.
(a) Contemporary work cohort: contemporary Work Cohort Robbins (2003) has proposed
Contemporary Work Cohort, in which the unique value of different, cohorts is that the U.S.
workforce has been segmented by the era they entered the workforce. Individuals values
differ, but tend to reflect the societal values of the period in which they grew up.

The cohorts and the respective values have been listed below:
1. Veterans Workers who entered the workforce from the early 1940s through the early 1960s.
They exhibited the following value orientations:
They were influenced by the Great Depression and World War II
1. Believed in hard work
2. Tended to be loyal to their employer
3. Terminal values: Comfortable life and family security

2. Boomers Employees who entered the workforce during the 1960s through the mid1980s
belonged to this category. Their value orientations were:
1. Influenced heavily by John F. Kennedy, the civil rights and feminist movements, the Beatles,
the Vietnam War, and baby boom competition
2. Distrusted authority, but gave a high emphasis on achievement and material success
3. Organizations that employed them were vehicles for their careers
4. Terminal values: sense of accomplishment and social recognition



3. Xersbegan to enter the workforce from the mid1980s.

They cherished the following values:
1. Shaped by globalization, two career parents, MTV, AIDS, and computers
2. Value flexibility, life options, and achievement of job satisfaction
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3. Family and relationships were important and enjoyed team oriented work
4. Money was important, but would trade off for increased leisure time Value, Ethics And
5. Less willing to make personal sacrifices for employers than previous generations
6. Terminal values: true friendship, happiness, and pleasure

4. Nexters most recent entrants into the workforce.
1. Grew up in prosperous times, have high expectation, believe in themselves, and confident in
their ability to succeed
2. Never ending search for ideal job see nothing wrong with job hopping
3. Seek financial success
4. Enjoy team work, but are highly self-reliant
5. Terminal values: freedom and comfortable life
(b) Alexithymia:
Ans:
Alexithymia is usually regarded as a disturbance of affect regulation (Talyor, Bagby and Parker,
1997). The literal meaning of the word alexithymia is `no words for feelings'. The construct
alexithymia has undergone a continuing development for the past years, according to recent
definitions alexithymia consists of the following salient features:
1. Difficulties defining emotions and differentiating emotions and the bodily sensations of
emotional arousal.
2. Difficulties in describing emotions to other people, verbalizing.
3. Limited imaginative processes, a lack of fantasy.
4. a stimulus bound, externally oriented cognitive style.

Measuring alexithymia
Alexithymia is usually measured with the Toronto Alexithymia Scale(TAS-20), developed by the
Taylor group. A shortcoming of this test is that it doesn't fully cover the alexithymia spectrum
(Zech, Luminet, Rim, and Wagner, 1999; Berthoz, Perez-Diaz, Consoli, and Jouvent, 2000;
Vorst, and Bermond, 2001). Only the features 1, 2 and 4 are in the TAS-20. According to Nemiah
and Sifneos (1970), the founders of alexithymia, besides the three scales used in the TAS-20
(identification, verbalizing and externally oriented cognitive style) reduced emotionality and
reduced imagination are also part of the alexithymia construct. The alexithymia questionnaire
developed by Vorst and Bermond (2001), the so called Bermond Vorst Alexithymia
Questionnaire (BVAQ), has the remaining scales incorporated and therefore it covers the whole
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alexithymia spectrum with the use of five subscales (reduced emotionality and imagination,
reduced capacities to verbalize, identify and analyze emotions). By applying a second order
factor analysis to these subscales, two underlying dimensions emerge: an affective dimension
(emotionality and fantasy), and a cognitive dimension (verbalizing, analyzing and identifying).
The cognitive component of the BVAQ has a strong resemblance with the summed score of the
TAS-20 (Zech, Luminet, Rim, and Wagner, 1999; Berthoz et al.,2000; Vorst and Bermond,
2001).
Alexithymia Types
Combining the extreme scores on the affective and cognitive component of the BVAQ allows
for the creation of four main types of alexithymia (Moormann, Bermond and Rood, 2004;
Bermond, Vorst and Moormann, 2006; Moormann et al., In press). The four main types can be
described in short as follows:
y Type I alexithymia
Individuals diagnosed with type 1 alexithymia are characterized by low emotionality, a
reduced fantasy and have difficulties with verbalizing, identifying and analyzing their
emotions. These individualss can't talk about their feelings, but also don't know what
they are feeling.
y Type II alexithymia
People identified as type II alexithymia experience emotions, but have difficulties with
verbalizing, identifying and analyzing them. In contrast to type I alexithymia they have a
well developed imagination. Type II alexithymia has often been found amongst victims
of sexual abuse .
Q.3 Mr. Khanna wants to improve his conflict management skills. He visits a consultant to
help him. He gives the list of situations to the consultant.
Ans:
The five basic methods for resolving conflict are the following:
5.1 AVOIDING (DENIAL/WITHDRAWAL):
A person avoids the issue by sidestepping it, pretending it does not exist, postponing it until
later, or withdrawing from a threatening situation.

It is useful when the issue is not critical, when the stakes are low and when timing is not critical.
It may give time to clarify the situation, to let people cool down, or let others resolve the
conflict more effectively.

Often, however, the conflict escalates and makes management more difficult because it is still
there.
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5.2 ACCOMMODATING (SUPPRESSION, SMOOTHING):
A person using accommodating plays down differences to satisfy the concerns of the other
person.

It may be useful when the issue is much more important to the other person than to yourself -
as a goodwill gesture to help maintain a cooperative relationship. Also when you realize you are
wrong; or when continued competition would only damage your cause, for instance when you
are outmatched and losing. It is useful when it is more important to preserve a relationship
than to deal with an insignificant issue through conflict.

The source of the conflict rarely goes away.
5.3 DOMINEERING (POWER, COMPETITION):
This method is often used to settle differences. The power or dominance referred to in this
strategy is coercive power or position power (authority).

Power tactics, however, result in winners and losers, and losers do not support a final decision
in the same way that winners do. Future meetings of a group are often sabotaged by the
conscious or unconscious renewal of the struggle previously supposedly resolved by power.

This strategy may be useful when quick, decisive action is vital and you know you are right. It is
sometimes necessary when you need to protect yourself against people who take advantage of
non-competitive behaviour.

Because of the poor outcome relationship inherent in this strategy, it should be carefully
considered, as a win/lose situation may deteriorate into a lose/lose situation.


5.4 COMPROMISING (BARGAINING):
Compromise (meeting each other halfway) has some serious drawbacks.

Bargaining often causes both sides to assume an inflated position. They are aware that they are
going to have to give a little and want to buffer the loss.

The compromise solution may be watered down or weakened to the point where it will not be
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effective. There is often little real commitment by any of the parties, and eventually a new deal
will be sought.

However there are situations when compromise is useful. Such as when resources are limited
or when two opponents with equal power are strongly committed to mutually exclusive goals.
(as in labour versus management bargaining.) It is also useful to achieve temporary settlements
to complex issues or as a backup mode when collaboration or dominance fails to be successful.
It is dependent on both parties honouring the agreements.
5.5 COLLABORATING (INTEGRATION, NEGOTIATION):
This strategy is time-consuming but has the advantage that the outcome relationship is
improved by the development of trust between the parties. It requires that all parties recognise
the abilities and expertise of the others. It requires a high level of creativity and innovation.

The position of each party is well understood by the other parties. The emphasis of the group is
on trying to solve the problem here, rather than on defending particular positions or views as
the work progresses. Ultimately, the best of the group's thinking will emerge. It represents a
shift away from a win/lose settlement, towards an assumption that the needs of both parties
can be fulfilled.

Situation Approach
1. When quick, decisive action is vital (e.g.,
emergencies). Competing/Domineering
2. On important issues where unpopular actions
need implementing (e.g., cost cutting, enforcing
unpopular rules, discipline). Competing/Domineering
3. To merge insights from people with different
perspectives. collaborating
4. When you perceive no chance of satisfying
your concerns. Avoiding
5. When issues are more important to others
than to you - to satisfy others and maintain
cooperation. Accommodating
6. To gain commitment by incorporating
concerns into a consensus. collaborating
7. On issues vital to company welfare when you
know you are right. Competing/Domineering

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Q.4 Explain General Adaptation syndrome (GAS):
General Adaptation Syndrome (GAS) is a model of stress described by Hans Selye. This model
comprises of three stages

(A) Alarm Reaction
(B) Resistance or Adaptation
(C) Exhaustion

The alarm stage is characterized by body's response to stress both physiologically and
psychologically. At physiological level, in alarm stage, the body may experience fast-beating
heart, butterflies in stomach, increased blood pressure, heavy breathing, eye dilation, dry
mouth. At psychological level, one may experience anxiety; flight or fight response; intense
concentration over the problem till it gets over.

At the resistance stage, the body might get immune in such a way, that even the stressors are
present, the body responds in a susceptible pattern leading the body being weak day by day.

The final stage is known as exhaustion, in which the body's immune system completely breaks
up and the psychological and physiological devastation takes place. If we continue our
resistance in a similar fashion we may even die. In the other way out, the body starts releasing
hormones to bring homoeostasis in the system.
Q.5 What is groupthink ? what are its symptoms and also suggest measures to prevent
groupthink.
Ans:
Groupthink is a type of thought exhibited by group members who try to minimize conflict and
reach consensus without critically testing, analyzing, and evaluating ideas. During Groupthink,
members of the group avoid promoting viewpoints outside the comfort zone of consensus
thinking. A variety of motives for this may exist such as a desire to avoid being seen as foolish,
or a desire to avoid embarrassing or angering other members of the group. Groupthink may
cause groups to make hasty, irrational decisions, where individual doubts are set aside, for fear
of upsetting the groups balance. The term is frequently used pejoratively, with hindsight.
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Some symptoms of groupthink are:
y Having an illusion of invulnerability
y Rationalizing poor decisions
y Believing in the group's morality
y Sharing stereotypes which guide the decision
y Exercising direct pressure on others
y Not expressing your true feelings
y Maintaining an illusion of unanimity
y Using mindguards to protect the group from negative information
Some Measures include:
y Using a policy-forming group which reports to the larger group
y Having leaders remain impartial
y Using different policy groups for different tasks
y Dividing into groups and then discuss differences
y Discussing within sub-groups and then report back
y Using outside experts
y Using a Devil's advocate to question all the group's ideas
y Holding a "second-chance meeting" to offer one last opportunity to choose another
course of action.
Q.6 Unique fashions is a textile company . it is undergoing a process of change and expanding
its business. The company is facing several obstacles. There are lot of problems related to
different departments. It needs some Intervention that may help the company to diagnose its
problems and developing the action plan for problem solving. The company also expects that
the intervention should help in improving the relationships amongst group members of
different departments.

Ans. The OD process begins when an organization recognizes that a problem exists which
impacts the mission or health of the organization and change is desired. It can also begin when
leadership has a vision of a better way and wants to improve the organization. An organization
does not always have to be in trouble to implement organization development activities.
A typical OD process can be divided into the following phases:
Problem identification: The first step in OD process involves understanding and identification of
the existing and potential problems in the organization. The awareness of the problem includes
knowledge of the possible organizational problems of growth, human satisfaction, the usage of
human resource and organizational effectiveness.
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Data collection: Having understood the exact problem in this phase, the relevant data is
collected through personal interviews, observations and questionnaires.


Identification data: It includes organization name, location, type of
organization, organization affiliation, size (financial condition,
stockholders, employees).
Historical data: Chief complaints, duration and possible determinants,
short-range and long-range problems, major crisis of the organization
(natural catastrophy, loss of key personnel, labour problems, financial
emergencies, technological changes), product service history (change
and development of organizational goals, sequence of development in
product or service), organizational folklore
Structural data: Organizational chart, formal job description, ecology of
the organization (spatial distribution of individuals, activities), financial
structure, personnel (size, various educational levels, average tenure,
range or skills, absentee rate, turnover rate, accident rate), structure
for handling personnel (recruitment, orientation, training, growth of
the job, promotion, compensation, performance analysis), rules and
regulations (medical, safety, retirement, recreation, other fringe
benefits).
experienced in the environment (internal or/and external). In problem identification, there is a
high possibility of taking symptoms as problems. How the problem is seen, experienced and
perceived by different people in the organization is very important for its solution.

Identification of Organizational Need

Does the organization need OD interventions? At this stage, this is ascertained. The
commitment of the top management is very important because OD is a Top Down Approach.
The Consultant has to make sure, whether OD is the right intervention for solving the problems
of the organization. Only after making sure he should proceed ahead.





Identification of Areas for In-depth Analysis

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OD is costly intervention. On the basis of preliminary problems identification, and resources
likely to be made available, areas for in-depth analysis may be identified. Too many problems
should not be taken up in the beginning.
According to Rao and Hari Krishna (2002), four steps in organizational diagnosis can be
identified:
Structural analysis: Determines how the different parts of the organization are functioning in
terms of laid down goals.
Processes analysis: Process implies the manner in which events take place in a sequence. It
refers to the pattern of decision-making, communication, group dynamics and conflict
management patterns within organizations to help in the process of attainment of
organizational goals.
Function analysis: This includes strategic variables, performance variables, results,
achievements and final outcomes.
Domain analysis: Domain refers to the area of the organization for organizational diagnosis.
Planning and implementation: After diagnosing the problem, the next phase of OD, with the OD
interventions, involves the planning and implementation part of the change process.
Evaluation and feedback: Any OD activity is incomplete without proper feedback. Feedback is a
process of relaying evaluations to the client group by means of specific report or interaction.
Interventions are structured activities used individually or in combination by the members of a
client system to improve their social or task performance. They may be introduced by a change
agent as part of an improvement program, or they may be used by the client following a
program to check on the state of the organization's health, or to effect necessary changes in its
own behavior. "Structured activities" mean such diverse procedures as experiential exercises,
questionnaires, attitude surveys, interviews, relevant group discussions, and even lunchtime
meetings between the change agent and a member of the client organization. Every action that
influences an organization's improvement program in a change agent-client system relationship
can be said to be an intervention.
[11]

There are many possible intervention strategies from which to choose. Several assumptions
about the nature and functioning of organizations are made in the choice of a particular
strategy. Beckhard lists six such assumptions:
1. The basic building blocks of an organization are groups (teams). Therefore, the basic
units of change are groups, not individuals.
2. An always relevant change goal is the reduction of inappropriate competition between
parts of the organization and the development of a more collaborative condition.
3. Decision making in a healthy organization is located where the information sources are,
rather than in a particular role or level of hierarchy.
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4. Organizations, subunits of organizations, and individuals continuously manage their
affairs against goals. Controls are interim measurements, not the basis of managerial
strategy.
5. One goal of a healthy organization is to develop generally open communication, mutual
trust, and confidence between and across levels.
6. People support what they help create. People affected by a change must be allowed
active participation and a sense of ownership in the planning and conduct of the
change.
[3]

Interventions range from those designed to improve the effectiveness of individuals through
those designed to deal with teams and groups, intergroup relations, and the total organization.
There are interventions that focus on task issues (what people do), and those that focus on
process issues (how people go about doing it). Finally, interventions may be roughly classified
according to which change mechanism they tend to emphasize: for example, feedback,
awareness of changing cultural norms, interaction and communication, conflict, and education
through either new knowledge or skill practice.
[12]

One of the most difficult tasks confronting the change agent is to help create in the client
system a safe climate for learning and change. In a favorable climate, human learning builds on
itself and continues indefinitely during man's lifetime. Out of new behavior, new dilemmas and
problems emerge as the spiral continues upward to new levels. In an unfavorable climate, in
contrast, learning is far less certain, and in an atmosphere of psychological threat, it often stops
altogether. Unfreezing old ways can be inhibited in organizations because the climate makes
employees feel that it is inappropriate to reveal true feelings, even though such revelations
could be constructive. In an inhibited atmosphere, therefore, necessary feedback is not
available. Also, trying out new ways may be viewed as risky because it violates established
norms. Such an organization may also be constrained because of the law of systems: If one part
changes, other parts will become involved. Hence, it is easier to maintain the status quo.
Hierarchical authority, specialization, span of control, and other characteristics of formal
systems also discourage experimentation.
[11]

The change agent must address himself to all of these hazards and obstacles. Some of the
things which will help him are:
1. A real need in the client system to change
2. Genuine support from management
3. Setting a personal example: listening, supporting behavior
4. A sound background in the behavioral sciences
5. A working knowledge of systems theory
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A belief in man as a rational, self-educating being fully capable of learning better ways to do
things