Summer 2013 Master of Business Administration- MBA Semester 1 MB0038 - Management Process and Organizational Behaviour Q1.

Describe the concept of vision in an organisation with an example. How is it different from mission statement? Vision An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action. Vision Statement Creation Once you've created your mission statement, move on to create your vision statement: First identify your organization's mission. Then uncover the real, human value in that mission. Next, identify what you, your customers and other stakeholders will value most about how your organization will achieve this mission. Distil these into the values that your organization has or should have. Combine your mission and values, and polish the words until you have a vision statement inspiring enough to energize and motivate people inside and outside your organization.

Mission Statement and Vision Statement A Mission statement talks about HOW you will get to where you want to be. Defines the purpose and primary objectives related to your customer needs and team values. A Vision statement outlines where you want to be. Communicates both the purpose and values of your business Mission statement answers the question, What do we do? What makes us different. Vision statement answers the question, Where do we aim to be? A mission statement talks about the present leading to its future. about your future. A vision statement talks

Mission statement lists the broad goals for which the organization is formed. Its prime function is internal, to define the key measure or measures of the organization's success and its prime audience is the leadership team and stockholders. Vision statement lists where you see yourself some years from now. It inspires you to give your best. It shapes your understanding of why are you working here.

Your mission statement may change, but it should still tie back to your core values, customer needs and vision. Your vision should remain intact, even if the market changes dramatically, because it speaks to what you represent, not just what you do. Example: Vision statement of Infosys: To help our clients meet their goals through our people, services and solutions. Mission statement of Infosys: Infosys International Inc. is dedicated to providing the people, services and solutions our clients need to meet their information technology challenges and business goals. Q2. Define the term management. Explain the scientific management theory proposed by Taylor. Management may be defined in many different ways. Many eminent authors on the subject have defined the term management. Some of these definitions are: According to Lawerence A. Appley Management is the development of people and not the direction of things. (1959) In the words of Henry Fayol To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.(1949) According to Peter F. Drucker Management is a multi-purpose organ that manages a business and managers and manages worker and work.(1970) Frederick Taylors main emphasis was on finding one best way of doing each job. He stressed on selecting the right people for the job, train them to do it precisely in one best way. He favored wage plans to motivate the workers. His scientific principles of management stressed the following principles: 1. Shift all responsibility for the organization of work from the worker to the manager; managers should do all the thinking relating to the planning and design of work, leaving the workers with the task of implementation. 2. Use scientific methods to determine the most efficient way of doing work; assign the workers task accordingly, specifying the precise way in which the work is to be done. 3. Select the best person to perform the job thus designed. 4. Train the worker to do the work efficiently. 5. Monitor worker performances to ensure that appropriate work procedures are followed and that appropriate results are achieved.

Taylor was one of the first to attempt to systematically analyze human behavior at work. He insisted the use of time-and-motion study as a means of standardizing work activities. His scientific approach called for detailed observation and measurement of even the most routine work, to find the optimum mode of performance. The results were dramatic, with productivity increasing significantly. With passing time, new organizational functions like personnel and quality control were created. Of course, in breaking down each task to its smallest unit to find what Taylor called the one best way to do each job, the effect was to remove human variability. Hence he lay the ground for the mass production techniques that dominated management thinking in the first half of the twentieth century. Q3. Give the definition and importance of planning in an organisation and explain the steps in planning. 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. The tasks of the strategic planning process include the following steps: 1. Define the mission: A mission is the purpose of the organization. Thus, planning begins with clearly defining the mission of the organization. The mission statement is broad, deconcise, summarizing what the organization does. A mission statement should be short and should be easily understood and every employee should ideally be able to narrate it from memory. An explicit mission guides employees to work independently and yet collectively toward the realization of the organization's potential. The mission statement may be accompanied by an overarching statement of philosophy or strategic purpose designed to convey a vision for the future as envisaged by top management. 2. Conduct a situational or SWOT analysis The SWOT Analysis is one of several strategic planning tools that are utilized by businesses and other organizations to ensure that there is a clear objective defined for the project or 3

venture, and that all factors related to the effort, both positive and negative, are identified and addressed. In order to accomplish this task, the process of SWOT involves four areas of consideration: strengths, weaknesses, opportunities, and threats. It should be noted that when identifying and classifying relevant factors, the focus is not just on internal matters, but also external components that could impact the success of the project. 3. Set goals and objectives Strategic goals and objectives are developed to fill the gap between current capability and the mission. They are aligned with the mission and form the basis for the action plans of an organization. Objectives are also called performance goals. Generally, organizations have long-term objectives for factors such as, return on investment, earnings per share, etc. It also helps in setting minimum acceptable standards or common-sense minimums. Q4. What is meant by leading? Describe the characteristics of leading. 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. Characteristics of leading 1. Visionary- A leader must have a clear picture of the future while remaining focused on the present. This can be hard because as Jonathan Swift said, Vision is the art of seeing things invisible. If a leader takes the time to think about the future of their industry and the possible changes, then they will see the invisible and stay ahead of todays fast paced society. Effective leaders have a clear picture of the future then gather people around them who can produce results which lead to the vision being accomplished. 2. Team Builder- An essential characteristic of leading others is the ability to build and maintain teams of people. Good leaders know the value of having a united team that can effectively work together to produce results. This can be done if a leader puts the right people in the right places within the team or organization. Doing this requires taking the time to know and understand your people 3. Communicator- A leader needs to be able to effectively communicate with others, both verbally and non-verbally. The leaders words and body language needs to be lined up with the message they are communicating. Becoming a better communicator is a skill every leader must develop. This is because so much of leadership is about communicating. James Humes said, The art of communication is the language of leadership. 4. Change Agent- Leaders need to avoid the dangers of not changing by becoming change agents. The status quo might be to stay the same and resist change but effective leaders 4

chose to rise above the status quo and create change. Great organizations and teams only happen if the leader is moving forward. Many of the businesses and organizations that have fallen during the recession were resistant change and kept doing what they have always done. Those who have stayed strong have leaders who were creating change. 5. Producer- Effective leaders have the ability to produce and can influence others to produce results in given areas. The true test of an effective leader is their ability to produce desired results, whether its individual or team results. Its wise to remember leadership and results are closely connected with each other. Q5. What are attitudes? Explain the components and functions of attitude. Attitudes Attitudes are also known as "frames of reference". They provide the background against which facts and events are viewed. It becomes necessary to know the attitudes of members of an organization because they have to perceive specific aspects like pay, hours of work, promotion etc., of their job life in the wider context of their generalized attitudes. Attitudes are also known as "frames of reference". There are three components of an attitude: 1. Cognition 2. Affect 3. Behavior Cognition It is the mental process involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem solving. The cognition component of an attitude reflects a persons perceptions or beliefs. Cognitive elements are evaluative beliefs and are measured by attitude scales or by asking about thoughts. Affect This component refers to the person's feelings that result from his or her beliefs about a person, object or situation. A person who believes that hard work earns promotions may feel anger or frustration when he or she works hard but is not promoted. The affective component becomes stronger as an individual has more frequent and direct experience with a focal object, person or situation. 'Affect' is the emotional component of an attitude. It refers to an individual's feeling about something or someone. Behavior This component refers to the individual's behaviour that occurs as a result of his or her feeling about the focal person, object or situation. An individual may complain, request a transfer, or be less productive because he or she feels dissatisfied with work. The behavioural component of an attitude refers to an intention to behave in a certain way toward someone or something

Attitudes serve four major functions for the individual: (1) the adjustments function, (2) the ego defensive function, (3) the value expressive function (4) the knowledge function. Ultimately these functions serve peoples need to protect and enhance the image they hold of themselves. In more general terms, these functions are the motivational bases which shape and reinforce positive attitudes toward goal objects perceived as need satisfying and / or negative attitudes toward other objects perceived as punishing or threatening.

Q6. Define leadership. Differentiate between authoritarian and democratic leadership style. Leadership is a means of directing. It is the ability to influence a group towards the achievement of goals. It is the human factor that helps a group identify where it is going and then motivates it towards its goals. According to Drucker, "Leadership is the lifting of mans visions to higher sights, the raising of man's performance to a higher standard, the building of man's personality beyond its normal limitations.(1954) Autocratic or Authoritarian leadership An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns tasks and duties without consulting the employees. The leader takes full authority and assumes full responsibility. Autocratic leadership is negative, based on threats and punishment. Subordinates act as leader directs. Such leader neither cares for subordinates opinions nor permits them to influence the decision. He believes that because of his authority he alone can decide what is best in a given situation. Autocratic leadership is based upon close supervision, clear-cut direction and commanding order of the superior. It facilitates quick decisions, prompt action and unity of direction. It depends on a lesser degree of delegation. It is likely to produce frustration and retard the growth of the capacity of employees. In Lewin's experiments, he found that this caused the most level of discontent. 2. Democratic or participative leadership Participative or democratic leaders decentralize authority. It is characterized by consultation with the subordinates and their participation in the formulation of plans and policies. He encourages participation in decision-making. He leads the subordinates mainly through persuasion and example rather than fear and force. Sometimes the leader serves as a moderator of the idea and suggestions from his group. McGregor labels this style as Theory Y. Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision. The modern trend favors sharing the responsibility with the employees. This will foster enthusiasm in them. The employees feel that management is interested in them as 6

well as in their ideas and suggestions. They will, therefore, place their suggestions for improvement.