Question-1

(a) Contrast efficiency and effectiveness, give an example of a time when an organization
was effective but not efficient, efficient but not effective, both effective & efficient and
neither effective not efficient?

Answer:- Efficient means using resources wisely and in an cost-effective way. On the other
hand effective means making the right decision and successfully implementing them.

Efficiency and effectiveness are both commonly used in management. Yet, while they sound
similar and start with same letters, they both mean different things.

Efficiency refers to doing things in aright manner.

On the other hand, Effectiveness refers to doing the right things.

Since efficiency is all about focusing on the process, importance is given to the `means` of doing
things whereas effectiveness focuses on achieving the end goal.

Efficiency Effectiveness

Means ------Resources Ends-----------------Goals

Use (or waste) as few Active goals as fully

resources as possible possible

Managerial success

1. Low resources use :- high efficiency

2. High goal achievement :- high effectiveness

Efficiency is concerned with the present state or the status quo. Thinking about the future and
adding or eliminating any resources might disturb the current state of efficiency.

On the other hand, Effectiveness believes in meating the end goal and therefore takes into
consideration any variables that may change in the future.

Efficiency will look at avoiding mistakes or errors whereas effectiveness is about gaining
success.

Process
Efficiency Effectiveness
Machine
The amount of resources Ratio between actual

needed to execute process Line & theoretical output

Productivity

Fig: Ratio between efficiency and effectiveness

When an organization was effectiveness but not efficiency. Example: supposed I owned a
company named X Company. I supply all the widgets that the entire West coast needs. I get them
everything on time, at a price that they like. Unfortunately, I have about 15 employees that do
practically nothing and basically either get in the way or just sit there and collect a paycheck
from week to week.

I am effectively supplying my goods to the people but I am running my business in an inefficient

way, where efficiency refers to doing things in a right manner, but I cannot do things in a right
manners. So, the organization was effective but not efficient.

When an organization was efficient but not effective------

Example: - Let firm produced CD players. They could very efficiently produced portable CD
players but still not succeed because the market for such devices has largely been supplanted by
the iPod and similar mp3 players. A firm that produced product that no one wants is therefore not
effective.

Then it was a matter of efficient but not effective.

When an organization has both effective and efficient---------

Example: - A firm Toyota Motors Corporation, which produces high-quality products at

relatively low cost, it’s efficient. By effective we mean making the right decision and
successfully implementing them. Toyota makes cars with the styling and quality to inspire
customer interest and confidence. When their product attract customer then it is effective. So, it
is matter of both effective and efficient.

When an organization neither effective not efficient--------

Example: - A restaurant of Sylhet. In this restaurant the authority made food in unhealthy and
unhygienic way. After eating this food the customer became sick. And none can brought food
from their restaurant. Then the restaurant business status fall down. So, it is a matter of neither
effective not efficient.

(b) Briefly describe the 10 managerial role of advocated by Henry Mintzberg. Give an
example of each?

Answer:- Management expert professor Henry Mintzberg has argued that a managers work can
be boiled down to ten common roles. According to Mintzberg, these roles or expectations for a
manager’s behavior fall into three categories: informational (managing by information),
interpersonal (managing through people) and decisional (managing through action).

The 10 rules are then divided into 3 categories as follows:

Category: Interpersonal

Role-1: Figurehead: As a manager, you have social, ceremonial and legal responsibilities. You
are expected to be a source of inspiration. People look up to you as a person with authority, and
as a figurehead.

Example: Great visitors, sign legal documents, attend ribbon cutting ceremonies etc.
Roles-2: Leader: This is where you provide leadership for your team, your department or
perhaps your entire organization and it’s where you manage the performance and responsibilities
of everyone in the group.

Example: Includes almost all interactions with subordinates.

Roles-3 Liaison: Managers must communicate with internal and external contracts. You need to
be able to network effectively on behalf of your organization.

Example: Business correspondence, participation in meetings with representatives of other

divisions or organization.

Category: Informational

The managerial roles in this category involve processing information.

Role-4 Monitor: In this role, we seek out information related to our organization and industry,
looking for relevant changes in the environment. We also monitor our team, in terms of both
their productivity and their well-being.

Example: Sean/read trade press, periodicals, report, training.

Role-5 Disseminator: This is where we communicate potentially useful information to our

colleagues and our team.

Example: Send memos and report, inform staffer and sub-ordinates of decision.

Role-6 Spokesperson: Managers represent and speak for their organization. In this role we are
responsible for transmitting information about our organization and its goal to the people outside
it.

Example: Pass on memos, reports and informational materials.

Category: Decisional

The managerial roles in this category involve using information.

Role 7 Entrepreneur: As a manager, we create and control change within the organization. This
means solving problems, generating new ideas and implementing them.

Example: Implement innovations, plan for the future.

The manager who must take change. We also need to help mediate disputes within it.
Example: Settle conflicts between subordinates choose strategic alternatives, overcome crisis
situations.

Role 9 Resource Allocator: We will also need to determine where organizational resources are
best applied. This involves allocating funding as well as assigning staff and other organizational
resources.

Example: Draft and approve of plans, schedules, budgets, set priorities.

Role 10 Negotiator: We may be needed to take part in and direct, important negotiations within
our team, department or organization.

Example: Depends business interest.

Question-02

(a) What are the differences between contingency and universal perspective on
management? How is contingency perspective management today?

Answer: An attempt to identify the one best way to do something is universal perspective.
Contingency refers to the immediate contingent.

The differences between contingency and universal perspective on management is given below:

Contingency perspective Universal perspective

1. Research effort to determine which
managerial practices and appropriate in
specific situations.
2. The chainable approach is considered
contingency perspective.
3. It suggests that appropriate managerial
behavior in a given situation depend on.
4. It refers that no simple way is right.
5. The contingency theory takes a broader view
that includes contingent factors about leader
capability and also includes other variables
within the situation.
1. Assumes that all organizations require the
same rational management process.
2. The classical approach are considered
universal perspective.
3. It tries to create one best way for managerial
behavior in all situations.
4. It tries to identify the one best way.
5. The universal theory takes a narrow view
and wants to made a same way to manage
variables situations.

The contingency perspective management today: The contingency perspective suggests that
appropriate managerial behavior in a given situation depend on or is contingent on, a wide
variety of elements. It suggests that universal theories cannot be applied to organizations because
each organization is unique. The contingency approach model of business is a theory of
managerial control used both in small and large companies across the world. In practice the
contingency approach empowers management specific, integrated solutions to solve workplace
issues and meet the project goal of clients. This can provides highly specialized task completion
as long as managers and supervisors assign the right mix of qualified employees.

The contingency perspective provides today’s management.

(b) Describe the system perspective, why is a business organization considered an open
system?

Answer: System perspective: taking into account all of the behaviors of a system as a whole in
the context of its environment is the system perspective. While the concept of system itself is a
more general notion that indicates separation of part of the universe from the rest, the idea of a
system perspective is to use a non-reductionist approach to the task of describing the properties
of the system itself.

In the system perspective, once one has identified the system as a separate part of the universe
one is not allowed to progressively decompose the system into isolated parts. Instead, one is
obligated to describe the system as a whole. If one uses separation into parts, as part of the
description of system properties, this is only part of complete description of the behavior of the
whole, which must include a description of the relationship between these parts and any
additional information needed to describe the behavior of the entire system. Further, in a system
perspective one should be careful about considering the system in the context of the environment
and not as an interactions and relationships between the system and environment.

Open systems are systems that interact with their environment. Maximums business organization
considered an open system because they do not make the mistake of ignoring their environment.
They behaving as through their environment are important.

Question-3

(a) What are the major forces that affect organization environment relationship? Describe
those factors?

Answer: Three basic perspectives can be used to describe how environments affect organization:

1. Environmental change and complexity.

2. Competitive forces and

 3. Environmental turbulence

1. Environmental change and complexity: James D. Thompson was one of the first people to
recognize the importance of the organizations environment. Thompson suggested that the
environment can be described along two dimensions i.e. its degree of change and its degree of
homogeneity. The degree of change is the extent to which the environment is relatively stable or
relatively dynamic. The degree of homogeneity is extent to which the environment is relatively
simple or relatively complex.

The lest environmental uncertainty is faced by organizations with the stable and simple
environments. Organizations with dynamic but simple environments generally face a moderate
degree of uncertainty.

Another combination of factors is one of stability and complexity. Again, a moderate amount of
uncertainty result.

Finally, very dynamic and complex environmental conditions yield a high degree of uncertainty.
The environment has a large number of elements and the nature of those elements is constantly
changing.

2. Competitive Forces: The environments of their organization in terms of five competitive

forces. The threat of new entrant is the extent to which new competitors can easily enter a market
or market segment.

Competitive rivalry is the nature of the competitive relationship between dominant firms in the
industry.

The treat of substitute product is the extent to which alternative products or services may
supplant or diminish the need for existing products or services.

The power of buyers is the extent to which buyers of the products or services in an industry have
the ability to influence potential buyers.

3. Environmental turbulence: Although always subject to unexpected changes and upheavals

the five competitive forces can nevertheless be studied and assessed systematically and plans can
be developed for dealing with them. At the same time, through organizations face the possibility
of environmental change or turbulence, occasionally with no warning at all. The most common
form of organizational turbulence is a crisis of some sort.

(b) Consider the three elements of a firm, which of the environments has the most direct
and immediate impact on the firm? Which one has a more diffuse and delayed impact?
Explain.
Answer: Organizations have both an external and internal environment. The external
environment is everything outside organizations boundaries that might affect it. And the internal
environment is the conditions and forces within an organization.

The external environment consists of two layers:

The general environment and the task environment. This three environment are impact on an
organization. Now, consider the three environments of a firm.

The task environment supplies functional information more readily. The manager in this case can
identify environmental factors of specific interest to the organization. The task environment
consists of competitors, regulators, customers, suppliers and strategic planners. These factors can
vary on a day to day basis. The vitality and role they play on firms is what creates is immediate
and direct impact on firms. Let take case of Taco Bell a few years back, when a food borne
illness arose from their infected meat. After several consumers plummeted. Another example of
its immediate impact is when suppliers, who are for the most part stable, are affected by some
natural disaster and cannot supply raw materials in time. The firm must find an immediate
resolution or else face serious consequences. General environments on the other hand offer a
vague, diffused and delayed impact on firms. The main reason for this is because the general
environmental factors offer long term results. These dimensions stay relatively constant from day
to day. A shifting of demographics take time, it doesn’t occur overnight.

Question-4

(a) Summarize the basic stance that an organization can take regarding social
responsibility?

Answer: Organizations can adopt a variety of approaches to social responsibility. For example,
a firm that never considers the consequences of its decisions and tries hide its transgressions is
taking an obstructionist stance.

Obstructionist stance: The few organizations that take what might be called an obstructionist
stance to social responsibility usually do as little as possible to solve social or environmental
problems. When they cross the ethical or legal line that separates acceptable from unacceptable
practices their typical response is to deny or avoid accepting responsibility for their actions.

Defensive stance: One step removed from the obstructionist stance is the defensive stance,
whereby the organization does everything that is required of it legally, but nothing more. This
approach is most consistent with the arguments used against social responsibility. Managers in
organizations that take a defensive stance insist that their job is to generate profit.
Accommodative stance: A firm that adopts an accommodative stance meets its legal and ethical
obligations but will also go beyond these obligations selected cases. Such firms voluntarily agree
to participate in social programs but solicitors have both to convince the organization that the
programs are worthy of its support.

Proactive stance: The highest degree of social responsibility that a firm can exhibit is the
proactive stance. Firms that adopt this approach take to heart the arguments in favor of social
responsibility. Through the unethical conduct of a small number of people at an organization
might tarnish the firm’s reputation, other employees at the same organization may be highly
ethical people who would never consider an unethical action.

(b) Describe the formal and informal dimensions of social responsibility?

Answer: The demands for social responsibility placed on contemporary organizations by an

increasingly sophisticated and educated public are probably stronger than ever. Organization
therefore need to fasion an approach to social responsibility in the same way that they develop
any other business strategy. In other words, they should view social responsibility as a major
challenge that requires careful as a major challenge that requires careful planning, decision
making, consideration and evaluation. They may accomplish this through both formal and
informal dimensions of managing social responsibility.

Formal organization dimensions:

Some dimensions of managing social responsibility involve a formal and planned activity on the
part of the organization. Indeed, some businesses are approaching social responsibility from a
strategic perspective.

Legal compliance: Legal compliance is the extent to which the organization conforms to local,
state, federal and international laws. The task managing legal compliance is generally assigned to
the appropriate functional managers.

Ethical compliance: Ethical compliance is the extent to which the members of the organization
follow basic ethical standards behavior.

Philanthropic giving: Finally, philanthropic giving is the awarding of funds or gifts to charities
or other worthy causes.

Informal organization dimension:

In addition those formal dimensions for managing social responsibility, there are also informal
ones. Leadership, organization culture and how the organization responds to whistleblower all
help shape and define people’s perceptions of the organizations stance on social responsibility.
Organizational leadership and culture: Leadership practices and organization culture can go a
long way toward defining the social responsibility stance an organization and its members will
adopt.

Whistle-blowing: Whistle-blowing is the disclosure by an employee of illegal or unethical

conduct on the part of others within the organization. How an organization responds to this
practice often indicates its stance on social responsibility.