ignou mba ms-1 free solved assignment 2012(1)

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ASSIGNMENT

Course Code : MS - 1

Course Title : Management Functions and Behavior

Assignment Code : MS-1/TMA/SEM - I /2012

Coverage : All Blocks

Note:Answer all the questions and submit this assignment on or before April 30, 2012, to the coordinator of

your study center.

1. What are the essential components of an effective MIS and why? Describe the MIS of an organization,known to you or you are familiar with, giving detailed description and critically evaluate its

effectiveness. Briefly describe the organization, you are referring to.

Solution: Components of a marketing information system

A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body

of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes

of decision making. An MIS also provides methods for interpreting the information the MIS provides.

Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information

technologies:

"A marketing information system is a continuing and interacting structure of people, equipment and procedures

to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing

decision makers to improve their marketing planning, implementation, and control".

Figure below describes the major components of an MIS, the environmental factors monitored by the system

and the types of marketing decision which the MIS seeks to underpin.

The marketing information systems and its subsystems
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The explanation of this model of an MIS begins with a description of each of its four main constituent parts: the

internal reporting systems, marketing research system, marketing intelligence system and marketing models. It

is suggested that whilst the MIS varies in its degree of sophistication - with many in the industrialised countries

being computerised and few in the developing countries being so - a fully fledged MIS should have these

components, the methods (and technologies) of collection, storing, retrieving and processing data

notwithstanding.

Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of

information. However, this information often remains under-utilised because it is compartmentalised, either in

the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information

is usually categorised according to its nature so that there are, for example, financial, production, manpower,

marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the

functional departments holding these pieces of data, do not see how it could help decision makers in other

functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas

might help them and therefore do not request it.

The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and

sales invoices. These are but a few of the internal records that can be used by marketing managers, but even this

small set of records is capable of generating a great deal of information

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2. State and explain the importance of Mission, Vision, Objectives, and Strategy in the functioning

of an organization. Find out these statements of a few organizations and explain their

significance. How do they help you understand about these organizations? Describe with brief

details of the organization you are referring to.


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Solution: Setting of organizational objectives is the starting point of managerial actions. An

organizationsend results for which an organization strives is termed as mission, purpose,

objective, goal, target etc. Many times these terms are used interchangeably as all these denote end

results.

MISSION STATEMENTS

A Mission Statement defines the organization's purpose and primary objectives. Its prime function is

internalto define the key measure or measures of the organizations success and its prime

audience is the leadership team and stockholders. Mission statements are the starting points of an

organisations strategic planning and goal setting process. They focus attention and assure that

internal and external stakeholders understand what the organization is attempting to accomplish.

MISSION AND PURPOSE

Mission and purpose are used interchangeably, though at theoretical level, there is a differencebetween two. Mission has external orientation and relates the organization to the society in which it

operates. A mission statement helps the organization to link its activities to the needs of the society

and legitimize its existence. Purpose is also externally focused but it relates to that segment of the

society to which it serves; it defines the business which the institution will undertake.

Dimensions of Mission statements:

According to Bart, the strongest organizational impact occurs when mission statements contain 7

essential dimensions.

Key values and beliefs

Distinctive competence

Desired competitive position

Competitive strategy

Compelling goal/vision

Specific customers served and products or services offered

Concern for satisfying multiple stakeholders

According to Vern McGinis, a mission should:

Define what the company is

Define what the company aspires to be

Limited to exclude some ventures

Broad enough to allow for creative growth


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Distinguish the company from all others

Serve as framework to evaluate current activities

Stated clearly so that it is understood by all

Developing a Mission Statement

Structure of a mission statement

The following elements can be included in a mission statement. Their sequence can be different. It is

important, however, that some elements supporting the accomplishment of the mission be present

and not just the mission as a "wish" or dream.

Purpose and values of the organization (products or services, market) or who are the organization's

primary "clients" (stakeholders)

What are the responsibilities of the organization towards these "clients"

What are the main objectives supporting the company in accomplishing its mission

A mission statement explains the company's core purpose and values.

1. At is most basic, the mission statement describes the overall purpose of the organization.

2. If the organization elects to develop a vision statement before developing the mission statement,

ask Why does the image, the vision exist -- what is its purpose? This purpose is often the same asthe mission.

3. Developing a mission statement can be quick culture-specific, i.e., participants may use methods

ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions,

divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants

how they might like to arrive at description of their organizational mission.

4. When wording the mission statement, consider the organization's products, services, markets,

values, and concern for public image, and maybe priorities of activities for survival.

5. Consider any changes that may be needed in wording of the mission statement because of any

new suggested strategies during a recent strategic planning process.

6. Ensure that wording of the mission is to the extent that management and employees can infer

some order of priorities in how products and services are delivered.

7. When refining the mission, a useful exercise is to add or delete a word from the mission to realize

the change in scope of the mission statement and assess how concise is its wording.

8. Does the mission statement include sufficient description that the statement clearly separates the

mission of the organization from other organizations?

Mission Statements of Well Known Enterprises


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"To solve unsolved problems innovatively" -Mary Kay Cosmetics

"To make people happy. - Walt Disney

VISION STATEMENTS

Vision statements reflect the ideal image of the organization in the future. They create a focal point

for strategic planning and are time bound, with most vision statements projected for a period of 5 to

10 years. The vision statement communicates both the purpose and values of the organization. For

employees, it gives direction about how they are expected to behave and inspires them to give their

best. Shared with customers, it shapes customers understanding of why they should work with the

organization.

Developing a Vision Statement

1. The vision statement includes vivid description of the organization as it effectively carries out itsoperations.

2. Developing a vision statement can be quick culture-specific, i.e., participants may use methods



how they might like to arrive at description of their organizational vision.

3. Developing the vision can be the most enjoyable part of planning, but the part where time easily

gets away from you.

4. Note that originally, the vision was a compelling description of the state and function of theorganization once it had implemented the strategic plan, i.e., a very attractive image toward which

the organization was attracted and guided by the strategic plan. Recently, the vision has become

more of a motivational tool, too often including highly idealistic phrasing and activities which the

organization cannot realistically aspire.

VALUE STATEMENTS

Value statements define the organisations basic philosophy, principles and ideals. They also set the

ethical tone for the institution. An organisations values are evident in the statements that define

the organization and the processes used to achieve its mission and vision.

Developing a Values Statement

1. Values represent the core priorities in the organizations culture, including what drives members

priorities and how they truly act in the organization, etc. Values are increasingly important in

strategic planning. They often drive the intent and direction for organic planners.

2. Developing a values statement can be quick culture-specific, i.e., participants may use methods



how they might like to arrive at description of their organizational values.


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3. Establish four to six core values from which the organization would like to operate. Consider

values of customers, shareholders, employees and the community.

4. Notice any differences between the organizations preferred values and its true values (the values

actually reflected by members behaviors in the organization).

5. Incorporate into the strategic plan, actions to align actual behavior with preferred behaviors.

OBJECTIVES

Objectives are the ends toward which activity is aimed-they are the end results to ward which

activity is aimed.

Objectives are goals, aims or purposes that organizations wish over varying periods of time-

McFarland

A managerial objective is the intended goal that prescribes definite scope and suggests direction tothe planning efforts of a manger-Terry and Franklin

GUIDELINES FOR OBJECTIVE SETTING

Objectives

Must be clearly specified

Must be set taking into account the various factors affecting their achievement

Should be consistent with organizational mission

Should be rational and realistic rather than idealistic

Should be achievable but must provide challenge to those responsible for achievement

Should start with to and be followed by an action verb

Should be consistent over the period of time

Should be periodically reviewed

Should have hierarchy

Organisational objectives

Should have social sanction

An organization may have multiple objectives

Can be changed

NATURE OF OBJECTIVES


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Each organization or group of individuals have some objectives

Objectives may be broad or they may be specifically mentioned

Objectives may be clearly defined

Objectives have hierarchy.

Organisational objectives have social sanction, that is, they are created within the social norms.

An organisation may have multiple objectives.

Organisational objectives can be changed

To define an organization

To provide directions for decision making

To set standards of performance

To provide a basis for decentralization

Integrate organization, group and individual============================================================================

3. What are the essential components /indicators/ Determinants of Organizational Climate and

Organisational Culture? Take example of two organizations, list out the component /indicators/

dimensions of their climate and culture and explain their corresponding perceived major focus,

with example. Briefly describe the organizations you are referring to.

Solution: This study aimed to determine the dimensions of organizational climate within four- and five-star

hotels and to assess whether these dimensions vary significantly across hotels. Jones and Jamess climate survey

was shortened, modified to incorporate the psychometric improvements of Ryder and Southey, and tailored for

specific use within hotels. The survey was administered to 1,401 employees from 14 hotels and provided a high

index of reliability ( = .959). From items representing 35 a priori concepts, principal components analys is

identified seven dimensions, which were labeled leader facilitation and support; professional and organizational

esprit; conflict and ambiguity; regulations, organization, and pressure; job variety, challenge, and autonomy; job

standards; and workgroup cooperation, friendliness, and warmth. Univariate analyses found each of the

dimensions to vary significantly across the 14 hotels.

In management literature there is often ambiguity about the two conceptsorganisational culture and

organisational climate. As explained earlier, organisational culture is a macro phenomenon which refers to the

patterns of beliefs, assumptions, values, and behaviours reflecting commonality in people working together.

However, organisational climate is a micro phenomenon and reflects how employees in an


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organisation feel about the characteristics and quality of culture like morale, goodwill, employee relations, job

satisfaction, commitmrnt at the organisational, department or unit level. It refers to the psychological

enviornment in which behaviour of organisational members occurs. It is a relatively persistent set of

perceptions held by organisational members about the organisational culture. Another viewpoint about climate

is that various variables get subsumed under the concept of climate, whereas has unique indicators like

symbols, rites, myths, and stories.

Daniel Denisons model (1990) asserts that organizational culture can be described by four general dimensions

Mission, Adaptability, Involvement and Consistency. Each of these general dimensions is further described by

the following three sub-dimensions:

Mission - Strategic Direction and Intent, Goals and Objectives and Vision

Adaptability - Creating Change, Customer Focus and Organizational Learning

Involvement - Empowerment, Team Orientation and Capability Development

Consistency - Core Values, Agreement, Coordination/Integration.

The Paradigm: What the organization is about; what it does; its mission; its values.

Control Systems: The processes in place to monitor what is going on. Role cultures would have vast rulebooks.

There would be more reliance on individualism in a power culture.

Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business.

Power Structures: Who makes the decisions, how widely spread is power, and on what is power based?

Symbols: These include organizational logos and designs, but also extend to symbols of power such as parking

spaces and executive washrooms.

Rituals and Routines: Management meetings, board reports and so on may become more habitual than

necessary. Stories and Myths: build up about people and events, and convey a message about what is valued

within the organization. These elements may overlap. Power structures may depend on control systems, which

may exploit the very rituals that generate stories which may not be true.

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4. What are the element of an organization structure, and the factors influencing its choice? Takeexample of two organizations and explain with logic as to how are their structures suited to their

requirements or influenced by the other factors.

Solution: Elements of organizational structure give companies effective and efficient ways to run their

businesses, manage their employees and ensure that tasks are completed. Elements such as work specialization,

departmentalization, chain of command, span of control, centralization, decentralization and formalization make

up organizational structure. Each element impacts how employees interact with each other to accomplish

company goals and objectives.

Work Specialization


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Work specialization ensures that each employee has a set of specific duties they're expected to perform based on

their work experience, education and skills. It prevents employees from being expected to perform tasks for

which they have no previous experience or training.

Departmentalization

The departmentalization element breaks down how jobs are grouped together to create departments.

Departments are created based on the types of jobs employees perform, the products or brands they're assigned

to, geographical locations or customer needs.

Chain of Command

In a company, each employee is expected to report to one manager, rather than to several. Mangers are

responsible for assigning tasks, informing employees of expectations and deadlines and offering motivation.

Managers are also available to answer job-related questions from employees and handle conflicts within their

departments. Employees are responsible for completing duties assigned to them by their manager accurately and

in a timely fashion.

Span of Control

Span of control suggests how many employees each manager can handle within an organization. This element of

organizational structure also outlines the number of mangers an organization needs, which is typically

determined based on the number of employees and departments a company has.

Centralization and Decentralization

In a centralized organization, all decisions are made by c-level managers such as the chief executive officer,

chief operating officer and chief marketing officer. Centralization leaves department managers with little to no

input. This system is typical in larger, corporate organizations.

A decentralized system affords all managers the opportunity to give input, while bigger decisions are still made

by c-level managers.

Formalization

Formalization is the element that outlines employee roles within a workplace, as defined by the rules and

guidelines developed by management. Formalization determines whether employees have to sign in and out

upon arriving and exiting the office, frequency and length of breaks, computer usage and dress code.

Factors Affecting Organizational Structure

Organizational structure is the framework companies use to outline their authority and communication

processes. The framework usually includes policies, rules and responsibilities for each individual in the

organization. Several factors affect the organizational structure of a company. These factors can be internal or

external. Small business owners must be responsible for creating their companies organizational structure

framework. Business owners may use a management consultant or review information from the Small Business

Administration before setting up their organizational structure.

Size

Size is many times the driving factor for a companys organizational structure. Smaller or home-based

businesses do not usually have a vast structure because the business owner is usually responsible for all tasks.

Larger business organizations usually require a more intense framework for their organizational structure.


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Companies with more employees usually require more managers for supervising these individuals. Highly

specialized business operations can also require a more formal organizational structure.

Life Cycle

The companys life cycle also plays an important part in the development of an organizational structure.

Business owners attempting to grow and expand their companys operations usually develop an

organizational structure to outline their companys business mission and goals. Businesses reaching peak

performance usually become more mechanical in their organizational structure. This occurs as the chain of

command increases from the business owner down to frontline employees. Mature companies usually focus on

developing an organizational structure to improve efficiency and profitability. These improvements may be the

result of more competitors entering the economic marketplace.

Strategy

Business strategies can also be a factor in a companys organizational structure development. High-

growth companies usually have smaller organizational structures so they can react to changes in the business

environment quicker than other companies. Business owners may also be reluctant to give up managerial control

in business operations. Small businesses still looking to define their business strategy often delay creating an

organizational structure. Business owners are usually more interested in setting business strategies rather than

developing and implementing an internal business structure.

Business Environment

The external business environment can also play an important part in a companys organizational

structure. Dynamic environments with constantly changing consumer desires or behavior is often more turbulent

than stable environments. Companies attempting to meet consumer demand can struggle when creating an

organizational structure in a dynamic environment. More time and capital can also be spent in dynamic

environments attending to create and organizational structure. This additional capital is usually a negative

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5. Why do groups get formed? What are the stages of group formation? Explain the formation of a

group and relate it to the stages with brief description of purpose and structure of the group, as

you are aware of. Also briefly describe the organization, if this group was the part of it.

Solution: The formation of a group and relate it to the stages with brief description of purpose andstructure of the group mention below:

Stage 1: Forming

In the Forming stage, personal relations are characterized by dependence. Group members rely

on safe, patterned behavior and look to the group leader for guidance and direction. Group

members have a desire for acceptance by the group and a need to be know that the group is safe.

They set about gathering impressions and data about the similarities and differences among them

and forming preferences for future subgrouping. Rules of behavior seem to be to keep things

simple and to avoid controversy. Serious topics and feelings are avoided.

The major task functions also concern orientation. Members attempt to become oriented to the

tasks as well as to one another. Discussion centers around defining the scope of the task, how to


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approach it, and similar concerns. To grow from this stage to the next, each member must

relinquish the comfort of non-threatening topics and risk the possibility of conflict.

Stage 2: Storming

The next stage, called Storming, is characterized by competition and conflict in the personalrelations dimension

an organization in the task-functions dimension. As the group members

attempt to organize for the task, conflict inevitably results in their personal relations. Individuals

have to bend and mold their feelings, ideas, attitudes, and beliefs to suit the group organization.

Because of "fear of exposure" or "fear of failure," there will be an increased desire for structural

clarification and commitment. Although conflicts may or may not surface as group issues, they

do exist. Questions will arise about who is going to be responsible for what, what the rules are,

what the reward system is, and what criteria for evaluation are. These reflect conflicts over

leadership, structure, power, and authority. There may be wide swings in members behavior

based on emerging issues of competition and hostilities. Because of the discomfort generated

during this stage, some members may remain completely silent while others attempt to dominate.

In order to progress to the next stage, group members must move from a "testing and proving"

mentality to a problem-solving mentality. The most important trait in helping groups to move on

to the next stage seems to be the ability to listen.

Stage 3: Norming

In the Norming stage, interpersonal relations are characterized by cohesion. Group members are

engaged in active acknowledgment of all members contributions, community building and

maintenance, and solving of group issues. Members are willing to change theirpreconceived

ideas or opinions on the basis of facts presented by other members, and they actively ask

questions of one another. Leadership is shared, and cliques dissolve. When members begin to

1 know-and identify with-one another, the level of trust in their personal relations contributes to

the development of group cohesion. It is during this stage of development (assuming the group

gets this far) that people begin to experience a sense of group belonging and a feeling of relief as

a result of resolving interpersonal conflicts.

The major task function of stage three is the data flow between group members: They share

feelings and ideas, solicit and give feedback to one another, and explore actions related to the

task. Creativity is high. If this stage of data flow and cohesion is attained by the group members,

their interactions are characterized by openness and sharing of information on both a personal

and task level. They feel good about being part of an effective group.

The major drawback of the norming stage is that members may begin to fear the inevitable future

breakup of the group; they may resist change of any sort.

Stage 4: Performing

The Performing stage is not reached by all groups. If group members are able to evolve to stage

four, their capacity, range, and depth of personal relations expand to true interdependence. In this


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stage, people can work independently, in subgroups, or as a total unit with equal facility. Their

roles and authorities dynamically adjust to the changing needs of the group and individuals.

Stage four is marked by interdependence in personal relations and problem solving in the realm

of task functions. By now, the group should be most productive. Individual members have

become self-assuring, and the need for group approval is past. Members are both highly task

oriented and highly people oriented. There is unity: group identity is complete, group morale is

high, and group loyalty is intense. The task function becomes genuine problem solving, leading

toward optimal solutions and optimum group development. There is support for experimentation

in solving problems and an emphasis on achievement. The overall goal is productivity through

problem solving and work.

Stage 5: Adjourning

The final stage, Adjourning, involves the termination of task behaviors and disengagement from

relationships. A planned conclusion usually includes recognition for participation and

achievement and an opportunity for members to say personal goodbyes. Concluding a group can

create some apprehension - in effect, a minor crisis. The termination of the group is a regressive

movement from giving up control to giving up inclusion in the group. The most effective

interventions in this stage are those that facilitate task termination and the disengagement

process

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ignou mba ms-1 free solved assignment 2012(1)

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