mb0038-assignment set 1 and 2

8/2/2019 MB0038-Assignment Set 1 and 2

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Name Deepak Kikan

Roll No 571121390

Learning Centre 00964

Subject Management Process and

Organizational Behaviour

Assignment 1 and 2

Date of Submission at

the learning centre

Master of Business AdministrationSemester I

MB0038 Management Process and Organizational Behaviour- 4 Credits

(Book ID:B1127)Assignment

Set- 1 (60 Marks)

Q1. Explain the four processes of Social Learning Theory.

Ans:The social learning theory recognizes the importance of observing and modeling thebehaviors, attitudes, and emotional reactions of others.

Social learning has four processes:

1. Attention processes People learn from a model only when they recognizeand pay attention to its critical features. In order to learn, it is required topay attention. Anything that detracts the attention is going to have anegative effect on observational learning. If the is model interesting or thereis a novel aspect to the situation, it is more likely to dedicate the fullattention to learning.


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2. Retention processes A models influence will depend on how well theindividual remembers the models action after it is no longer readilyavailable. The ability to store information is also an important part of thelearning process. Retention can be affected by a number of factors, but theability to pull up information later and act on it is vital to observationallearning.

3. Motor reproduction processes After a person has seen a new behaviorby observing the model, the watching must be converted to doing. The abilityto perform what is observed is very important part of the learning process.Retention is improved by performing or doing what is learnt from observationprocess. Reproduction helps in retention and ability to pull up informationlater.

4. Reinforcement processes Individuals will be motivated to exhibit themodeled behavior if positive incentives or rewards are provided. Finally, inorder for observational learning to be successful, you have to be motivated

to imitate the behavior that has been modeled. Reinforcement andpunishment play an important role in motivation. While experiencing thesemotivators can be highly effective, so is observing other experience sometype of reinforcement or punishment. For example, if you see anotherstudent rewarded with extra credit for being to class on time, you might startto show up a few minutes early each day.

Q2. What are the hindrances that we face in perception?

Ans:

Perception can be defined as a process by which individuals organize and interprettheir sensory impressions in order to give meaning to their environment.

Individuals have a tendency to use a number of shortcuts when they judge others.An understanding of these shortcuts can be helpful toward recognizing when theycan result in significant distortions.

1. Selective PerceptionAny characteristic that makes a person, object, or event stand out will increasethe probability that it will be perceived. It is impossible for an individual tointernalize and assimilate everything that is seen .Only certain stimuli can betaken in selectively. Selectivity works as a shortcut in judging other people by

allowing us to speed-read others, but, not without the risk of drawing aninaccurate picture. The tendency to see what we want to see can make us drawunwarranted conclusions from an ambiguous situation.

2. Halo EffectThe halo effect (Murphy & Anhalt, 1992) occurs when we draw a generalimpression on the basis of a single characteristic. For example, while appraisingthe lecturer, students may give prominence to a single trait, such as,


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enthusiasm and allow their entire evaluation to be tainted by how they judge theinstructor on that one trait which stood out prominently in their estimation ofthat person. Research suggests that it is likely to be most extreme when thetraits to be perceived are ambiguous in behavioral terms, when the traits havemoral overtones, and when the perceiver is judging traits with which he or shehas had limited experience.

3. Contrast EffectsIndividuals do not evaluate a person in isolation. Their reaction to one person isinfluenced by other persons they have encountered recently. For example, aninterview situation in which one sees a pool of job applicants can distortperception. Distortions in any given candidates evaluation can occur as a resultof his or her place in the interview schedule.

4. ProjectionThis tendency to attribute ones own characteristics to other people which iscalled projection can distort perceptions made about others. When managers

engage in projection, they compromise their ability to respond to individualdifferences. They tend to see people as more homogeneous than they really are.

5. StereotypingStereotyping judging someone on the basis of our perception of the group towhich he or she belongs. Generalization is not without advantages (Hilton &Hippel, 1996). It is a means of simplifying a complex world, and it permits us tomaintain consistency. The problem, of course, is when we inaccuratelystereotype. In organizations, we frequently hear comments that representstereotypes based on gender, age, race, ethnicity, and even weight. From aperceptual standpoint, if people expect to see these stereotypes, that is what

they will perceive, whether or not they are accurate.

6. First-impression errorIndividuals place a good deal of importance on first impressions. Firstimpressions are lasting impressions. We tend to remember what we perceivefirst about a person, and sometimes we are quite reluctant to change our initialimpressions. First-impression error means the tendency to form lasting opinionsabout an individual based on initial perceptions. Primacy effects can be

particularly dangerous in interviews, given that we form first impressions quicklyand that these impressions may be the basis for long-term employmentrelationships.

Q3. Describe the bases of power.

Ans:Power is the ability to make things happen in the way an individual wants, either byself or by the subordinates. The essence of power is control over the behavior ofothers (French & Raven, 1962).


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Power can be categorized into two types: Formal and informalA. Formal Power:It is based on the position of an individual in an organization. Formal power isderived from either ones ability to coerce or reward others or is derived from theformal authority vested in the individual due to his/ her strategic position in theorganizational hierarchy. For example, a manager may threaten to withhold a payraise, or to transfer, demote, or even recommend the firing of a subordinate whodoes not act as desired. Such coercive power is the extent to which a manager candeny desired rewards or administer punishments to control other people. Theavailability of coercive power also varies across organizations. The presence ofunions and organizational policies on employee treatment can weaken this powerbase significantly.

Formal power may be categorized into four types which are as follows:

1. Coercive Power:The coercive power base is being dependent on fear. It is based on the

application, or the threat of application, of physical sanctions such as theinfliction of pain, the generation of frustration through restriction ofmovement, or the controlling by force of basic physiological or safety needs.In an organization one can exercise power over another if they have thepower to dismiss, suspend, demote another assuming that the job is valuableto the person on whom power is being unleashed.

2. Reward Power:The opposite of coercive power is reward power. Reward power is the extent

to which a manager can use extrinsic and intrinsic rewards to control otherpeople. Examples of such rewards include money, promotions, compliments,

or enriched jobs. Although all managers have some access to rewards,success in accessing and utilizing rewards to achieve influence variesaccording to the skills of the manager.

3. Legitimate Power:The third base of position power is legitimate power, or formal authority .Itstems from the extent to which a manager can use subordinates internalizedvalues or beliefs that the boss has a right of command to control theirbehavior. For example, the boss may have the formal authority to approve ordeny such employee requests as job transfers, equipment purchases,personal time off, or overtime work. Legitimate power represents a specialkind of power a manager has because subordinates believe it is legitimate for

a person occupying the managerial position to have the right to command.The lack of this is legitimacy will result in authority not being accepted bysubordinates. Thus this type of power has the following elements:

It represents the power a person receives as a result of his/herposition in the formal hierarchy.

Positions of authority include coercive and reward powers.


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Legitimate power, however, is not limited to the power to coerce andreward. It encompasses the acceptance of the authority of a positionby members of an organization.

4. Information Power:This type of power is derived from access to and control over information.When people have needed information, others become dependant on them.(For example, managers have access to data that subordinates do not have).Normally the higher the level, the more information would be accessed bymanagers.

B. Personal PowerPersonal power resides in the individual and is independent of that individualsposition. Three bases of personal power are expertise, rational persuasion, andreference.

Expert poweris the ability to control another persons behavior by virtue of

possessing knowledge, experience, or judgment that the other person lacks,but needs. A subordinate obeys a supervisor possessing expert powerbecause the boss ordinarily knows more about what is to be done or how it isto be done than does the subordinate. Expert power is relative, not absolute.However the table may turn in case the subordinate has superior knowledgeor skills than his/ her boss. In this age of technology driven environments,the second proposition holds true in many occasions where the boss isdependent heavily on the juniors for technologically oriented support.

Rational persuasion is the ability to control anothers behavior, since,through the individuals efforts, the person accepts the desirability of an

offered goal and a viable way of achieving it. Rational persuasion involvesboth explaining the desirability of expected outcomes and showing howspecific actions will achieve these outcomes.

Referent power is the ability to control anothers behavior because theperson wants to identify with the power source. In this case, a subordinateobeys the boss because he or she wants to behave, perceive, or believe asthe boss does. This obedience may occur, for example, because thesubordinate likes the boss personally and therefore tries to do things the waythe boss wants them done. In a sense, the subordinate attempts to avoiddoing anything that would interfere with the pleasing boss subordinaterelationship. Followership is not based on what the subordinate will get for

specific actions or specific levels of performance, but on what the individualrepresents a path toward lucrative future prospects.

Charismatic Power is an extension of referent power stemming from anindividuals personality and interpersonal style. Others follow because theycan articulate attractive visions, take personal risks, demonstrate followersensitivity, etc.


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Q4. Ms. Chanchal Das Gupta is a recruitment specialist. For the post of QCManager, she interviews three candidates. Given below are the physicalcharacteristics of the candidates.

Candidate Physical Characteristics

Mr.Ravi Muscular, thick skin, rectangular shaped.Mr.Gineesh Thin, delicate build, large brain, tall.

Mr.Ramgopal Soft, round shaped, underdeveloped muscles.

From the above descriptions, what personality traits can Ms. Chanchalderive out of the candidates as per Sheldons theory of personality?Ans:William Sheldon (1940, 1942, cited in Phares, 1991) classified personality accordingto body type. He called this a persons somatotype.

Sheldon identified three main somatotypes:

Table: Sheldons Classification of Personality Types.

Sheldon'sSomatotype

Character Shape SamplePicture

Endomorph[viscerotonic]

relaxed, sociable,tolerant, comfort-loving, peaceful

plump, buxom, developedvisceral structure

Mesomorph[somatotonic]

active, assertive,vigorous, combative

muscular

Ectomorph[cerebrotonic]

quiet, fragile,restrained, non-

assertive, sensitive

lean, delicate, poor muscles


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As per the description given in the question, the somatotypes of the threecandidates are the following:

Candidate Physical Characteristics Somatotype

Mr.Ravi Muscular, thick skin, rectangularshaped.

Mesomorph [somatotonic]

Mr.Gineesh Thin, delicate build, large brain,tall. Ectomorph [cerebrotonic]

Mr.Ramgopal Soft, round shaped,underdeveloped muscles.

Endomorph [viscerotonic]

As per Sheldon, these body types have the following corresponding personalitytraits:

Candidate Somatotype Personality traitsMr.Ravi Mesomorph

[somatotonic] adventurous desire for power and dominance courageous indifference to what others think or want assertive, bold zest for physical activity competitive love of risk and chance

Mr.Gineesh Ectomorph[cerebrotonic]

self-conscious preference for privacy introverted inhibited socially anxious artistic mentally intense emotionally restrained

Mr.Ramgopal Endomorph[viscerotonic]

love of food tolerant evenness of emotions love of comfort sociable good humoured relaxed need for affection

So Ms Chanchal can derive out the personality traits based on the informationpresented in the table above.

Q5. What are the consequences of conflict in organisations?

Ans:Conflict occurs whenever disagreements exist in a social situation over issues (workrelated or personal). Conflict is a process that begins when one party perceives that


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another party has negatively affected, or is about to negatively affects, somethingthat the first party cares about (Thomas, 1992).

Conflict can be either constructive or destructive. Constructive conflict preventsstagnation, stimulates creativity, allows tensions to be released. However,excessive levels of conflict can hinder the effectiveness of a group or anorganization lessens satisfaction of group members, increases absence andturnover rates, and, lowers productivity.

Not all conflicts are bad. In fact, some types of conflict encourage new solutions toproblems and enhance the creativity in the organizations. In these cases, managerswill want to encourage the conflicts. Functional conflicts are conflicts that supportthe goals of the group and improve its performance. There are also conflicts thathinder group performance. These are dysfunctional or destructive forms of conflict.Therefore, managers should stimulate functional conflict and prevent or resolvenon-dysfunctional conflict. This is the key to conflict management. Theconsequences of conflict can be positive or negative, as shown below:

Positive Consequences Negative Consequences

1. Leads to new ideas. 1. Diverts energy from work.

2. Stimulates creativity. 2. Threatens psychological well-being.

3. Motivates Change. 3. Wastes resources.

4. Promotes organizational vitality. 4. Creates a negative climate.

5. Helps individuals and groupsestablish identities

5. Breaks down group cohesion.

6. Serves as a safety valve to indicateproblems.

6. Can increase hostility andaggressive behaviours

Q6. Explain sensitivity training.

Ans:Sensitivity training is an important part of Organization development (OD) which isa planned approach to improve employee and organizational effectiveness byconscious interventions in those processes and structures that have an immediatebearing on the human aspect of the organization (Ramanarayan, Rao, and Singh1998).

Sensitivity training is also known as T-group, T standing for training. This approachevolved from the group dynamics concept of Kurt Lewin and the first sensitivitytraining session was held in 1946 in State Teachers College, New Britain, USA.Since then, it spread to numerous training centers in USA and other countries.Sensitivity training is a small-group interaction process in the unstructured form


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which requires people to become sensitive to others feelings in order to developreasonable group activity. The objectives of sensitivity training are as follows:

1. To make participants increasingly aware of, and sensitive to, the emotionalreactions and expressions in themselves and others.

2. To increase the ability of participants to perceive, and to learn from, theconsequences of their actions through attention to their own and othersfeelings.

3. To stimulate the clarification and development of personal values and goalsconsonant with a democratic and scientific approach to problems of personaland social decisions and actions.

4. To develop achievement of behavioural effectiveness in participants.5. To develop concepts and theoretical framework for linking personal values

and goals to actions consistent with these inner factors and situationalrequirements.

Process of Sensitivity Training

Sensitivity training focuses on small group (T-group) with number of membersranging from ten to twelve. T-groups are designed to provide members withexperiential learning about group dynamics, leadership and interpersonalrelationships. The basic T-group training or sensitivity training is to change thestandards, attitudes and behavior of individuals by using psychological techniquesand programs. Based on the sources from where these members are drawn, theremay be three types of T-group: stranger-lab, cousin-lab, and family-lab. In thestranger-lab, all participants are from different organizations and they are strangersto each other. In cousin-lab, all participants are from the same organization butfrom different units.


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Master of Business AdministrationSemester I

MB0038 Management Process & Organizational Behaviour

- 4 Credits(Book ID:B1127)

AssignmentSet- 2 (60 Marks)

Q1. State the characteristics of management.

Ans:Management may be defined in many different ways. Many eminent authors on

the subject have defined the term management. Some of these definitionsare:According to Lawerence A. Appley Management is the development of peopleand 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)In the words of Koontz and ODonnel Management is defined as the creation

and maintenance of an internal environment in an enterprise where individualsworking together in groups can perform efficiently and effectively towards the

attainment of group goals. (1972)

From the definitions quoted above, it is clear that management is a techniqueof extracting work from others in an integrated and coordinated manner forrealizing the specific objectives through productive use of different resources.Mobilizing the physical, human and financial resources and planning theirutilization for business operations in such a manner as to reach the definedgoals can be referred to as management.

Management is a distinct activity having the following salient features orcharacteristics:

1. Goal-oriented: Management is a purposeful activity. It coordinates the

efforts of employees to achieve the goals of the organization. The success ofmanagement is measured by the extent to which the organizational goals are

achieved. It is imperative that the organizational goals must be well-defined andproperly understood by the mangers at various levels.

2. Economic Resource: Management is one of the factors of productiontogether with land, labour and capital. It is the most critical input in the success


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of any organized group activity. It is the force which assembles and integratesother resources, namely, labour, capital and materials. These factors do not bythemselves ensure production; they require the catalyst of management toproduce goods and services required by the society. Thus, management is anessential ingredient of an organization.

3. Distinct Process: Management is a distinct process consisting of suchfunctions as planning, organizing, staffing, directing and controlling. Thesefunctions are so interwoven that it is not possible to lay down exactly thesequence of various functions or their relative significance. In essence, theprocess of management involves decision-making and putting of decisions intopractice.4. Integrative Force: The essence of management is integration of human andother resources to achieve the desired objectives. All these resources are madeavailable to those who manage. Managers apply knowledge, experience and

management principles for getting the results from the workers by the use ofnon-human resources. Managers also seek to harmonize the individuals goals

with the organizational goals for the smooth working of the organization.5. Intangible Force: Management has been called an unseen force. Its

presence is evidenced by the result of its efforts-orderliness, informedemployees, buoyant spirit and adequate work output. Thus, feeling of

management is result-oriented. One may not see with the naked eyes thefunctioning of management but its results are apparently known.People often remark of the effectiveness (or ineffectiveness) of management onthe basis of the end results, although they cant observe it during operation.

6. Results through Others: The managers cannot do everything themselves.They must have the necessary ability and skills to get work accomplished

through the efforts of others. They must motivate the subordinates for the

accomplishment of the tasks assigned to them.7. A Science and an Art: Management has an organized body of knowledgeconsisting of well-defined concepts, principles and techniques which have wideapplications. So it is treated as a science. The application of these concepts,

principles and techniques requires specialized knowledge and skills on the partof the manager. Since the skills acquired by a manager are his personal

possession, management is viewed as an art.8. System of Authority: Management as a team of managers represents a

system of authority, a hierarchy of command and control. Managers at differentlevels possess varying degrees of authority. Generally, as we move down in the

managerial hierarchy, the degree of authority gets gradually reduced. Authority

enables the managers to perform their functions effectively.9. Multi-disciplinary Subject: Management has grown as a field of study (i.e.discipline) taking the help of so many other disciplines such as Engineering,Anthropology, Sociology and Psychology. Much of the management literature isthe result of association of these disciplines. For instance, productivityorientation drew its inspiration from Industrial Engineering and human relationsorientation from Psychology. Similarly, Sociology and Operations Research havealso contributed to the development of management science.


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10. Universal Application: Management is universal in character. Theprinciples and techniques of management are equally applicable in the fields ofbusiness, education, military, government and hospital. Henri Fayol suggestedthat principles of management would apply more or less in every situation. Theprinciples are working guidelines which are flexible and capable of adaptation to

every organization where the efforts of human beings are to be co-ordinated.

Q2. Mr. Suresh Kumar is the VP- HR of a leading Financial servicescompany. He is having a meeting with Ms. Rejani Chandran leading HRconsultant. Mr. Suresh is concerned about creating an environment thathelps in increasing the job satisfaction amongst employees. Assumethat you are Ms. Rejani, the HR consultant. What suggestions you willgive to Mr. Suresh, for creating an environment that increases jobsatisfaction?

Ans:

There are a number of factors that create an environment that increases jobsatisfaction amongst the employees. Some of these important factors are:The most important factors conductive to job satisfaction are:

i) Mentally Challenging Work: Employees tend to prefer jobs that give themopportunities to use their skills and abilities and offer a variety of tasks,freedom and feedback on how well they are doing. Under conditions ofmoderate challenge, most employees will experience pleasure and satisfaction.

ii) Personality-Job Fit: People with personality types congruent with theirchosen vocations should find they have the right talents and abilities to meet

the demands of their jobs; and because of this success, they have a greaterprobability of achieving high satisfaction from their work. It is important,

therefore to fit personality factors with job profiles.

iii) Equitable Rewards: Employees want pay systems and promotion policiesthat they perceive as being just, unambiguous, and in line with theirexpectations. When pay is seen as fair based on job demands, individual skilllevel, and industry pay standards, satisfaction is likely to result. Similarly,employees seek fair promotion policies and practices. Promotions provideopportunities for personal growth, more responsibilities and increased socialstatus. Individuals who perceive that promotion decisions are made in a fair and

just manner are likely to experience job satisfaction.

iv) Supportive working conditions: Employees prefer physical conditions thatare comfortable and facilitate doing a good job. Temperature, light, noise and

other environmental factors should not be extreme and provide personalcomfort. Further, employees prefer working relatively close to home, in clean

and relatively modern facilities and with adequate tools and equipment.


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v) Supportive Colleagues: Employees have need for social interaction.Therefore, having friendly and supportive co-workers and understandingsupervisor's leads to increased job satisfaction. Most employees want theirimmediate supervisor to be understanding andfriendly, those who offer praise for good performance, listen to employees'

opinions and show a personal interest in them.

vi) Whistle blowing: Whistle-blowers are employees who inform authorities ofwrongdoings of their companies or co-workers. Whistle blowing is importantbecause committed organizational members sometimes engage in unethicalbehaviour in an intense desire to succeed. Organizations can manage whistleblowing by communicating the conditions that are appropriate for the disclosureof wrongdoing. Clearly delineating wrongful behaviour and the appropriate waysto respond are important organizational actions.

vii) Social Responsibility: Corporate social responsibility is the obligation of an

organization to behave in ethical ways in the social environment in which itoperates. Socially responsible actions are expected of organizations. Currentconcerns include protecting the environment, promoting worker safety,supporting social issues, investing in the community, etc. Managers mustencourage both individual ethical behaviour and organizational socialresponsibility.

Q3. Define emotional intelligence. Explain Golemans model ofemotional intelligence.

Ans:

"Emotional intelligence is the capacity for recognizing our own feelings andthose of others, for motivating ourselves, for managing emotions well in

ourselves and in our relationships." (Snow, 2001)

Emotional Intelligence - EI - is a relatively recent behavioural model, rising toprominence with Daniel Goleman's 1995 Book called 'Emotional Intelligence'.The early Emotional Intelligence theory was originally developed during the1970s and 80s by the work and writings of psychologists Howard Gardner(Harvard), Peter Salovey (Yale) and John 'Jack' Mayer (New Hampshire).

Emotional Intelligence is increasingly relevant to organizational developmentand developing people, because the EI principles provide a new way to

understand and assess people's behaviours, management styles, attitudes,interpersonal skills, and potential. Emotional Intelligence is an important

consideration in human resources planning, job profiling, recruitmentinterviewing and selection, management development, customer relations and

customer service, and more.


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Emotional intelligence is the ability to manage ourselves and our relationshipeffectively. Each capability is composed of a set of competencies. Emotionalintelligence skills and cognitive skills are synergistic top performers have both?The more complex the job, the more emotional intelligence matters Emotionalcompetencies cluster into groups each is based on a common underlying

emotional intelligence capacity.Vitello Cicciu (2002)Golemans Model of Emotional IntelligenceDaniel Goleman and the Hay Group have identified a set of competencies thatdifferentiate individuals with Emotional Intelligence. The competencies fall intofour clusters:

Self-Awareness: Capacity for understanding one's emotions, one'sstrengths, and one's weaknesses.

Self-Management: Capacity for effectively managing one's motives andregulating one's behavior.

Social Awareness: Capacity for understanding what others are saying andfeeling and why they feel and act as they do.

Relationship Management: Capacity for acting in such a way that one isable to get desired results from others and reach personal goals.

The most popular and accepted mixed model of emotional intelligence is the oneproposed by Goleman (1995). He viewed emotional intelligence as a total ofpersonal and social competences. Personal competence determines how wemanage ourselves, whereas social competence determines how we handle ourinterpersonal relationships.

Personal competence

It comprises of three dimensions of emotional intelligence, such as, self-awareness, self-regulation and motivation. Self-awareness is the ability of an

individual to observe him/herself and to recognize 'a feeling as it happens'(Goleman, 1995). The hallmarks of this ability are self-confidence, self-

assessment and openness to positive criticism. Self-regulation is the ability tocontrol emotions and to redirect those emotions that can have negative impact.Trustworthiness, integrity, tolerance of ambiguity and attitude to accept changeare some characteristics of this ability. Motivation is the ability to channelizeemotion to achieve a goal through self-control and by moderating impulses asper the requirement of the situation. The people who have this ability areoptimistic and committed towards organizational as well as individual goals.

Social competence

It comprises of two dimensions namely, empathy and social skills. Empathy isthe ability to feel and get concerned for others, take their perspective and to

treat people according to their emotional reactions.


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People with this ability are experts in generating and motivating others. Socialskills are the ability to build rapport and to manage relationships with people.People having this skill are very effective in persuasiveness and teammanagement. Social skill is the culmination of all other components of

emotional intelligence assuming that people can effectively manage social andwork relationships only when they can understand and control their ownemotion and can emphasize with the feelings of others.

Q4. Explain the different leadership styles as per Managerial

Leadership Grid Theory.

Ans:Behavioral Theory developed by scholars from Ohio State University during1940-1950s led to two dimensions of leadership behaviour-concern for tasks

and concern for relations. Almost in the same style, the Michigan University

studies made the distinction between job-centred and production- centredleaders.Blake and Mouton rated these concepts in a framework called the Managerial

Grid. They interpreted the concepts in a broad way. Blake and Mouton haveused "Concern for Production"and "Concern for People'"in their Managerial Grid

on horizontal and vertical axes respectively. Managers may be concerned fortheir people and they must also have some concern for the work to be done.

The question is, how much attention do they pay to one or the other? This is amodel defined by Blake and Mouton in the early 1960s. It included

Impoverished management Authority-compliance Country Club management


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Middle of the road management Team management

The Managerial Grid was the original name; the modifications were made byRobert R Blake and Anne Adams McCanse. After the modifications it was namedas Leadership Grid.

Leadership Grid an approach to understanding a leaders concern for results

(production) and concern for people

1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude)

In this style, managers have low concern for both people and production.Managers use this style to avoid getting into trouble. The main concern for the

manager is not to be held responsible for any mistakes, which results in less

innovative decisions. A leader uses a "delegate and disappear" managementstyle. Since they are not committed to either task accomplishment ormaintenance; they essentially allow their team to do whatever it wishes and

prefer to detach themselves from the team process by allowing the team tosuffer from a series of power struggles.

Features1. Does only enough to preserve job and job seniority.

2. Gives little and enjoys little.3. Protects himself by not being noticed by others.Implications

1. Tries to stay in the same post for a long time.

Examples of Leader speak:I distance myselffrom taking active responsibility for results to avoid gettingentangled in problems.

If forced, I take a passive or supportive position.

2. The country club style (1, 9). The accommodating Leader (Yield &Comply)


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This style has a high concern for people and a low concern for production.Managers using this style pay much attention to the security and comfort of theemployees, in hopes that this would increase performance. The resultingatmosphere is usually friendly, but not necessarily that productive.This person uses predominantly reward power to maintain discipline and to

encourage the team to accomplish its goals. Conversely, they are almostincapable of employing the more punitive coercive and legitimate powers. Thisinability results from fear that using such powers could jeopardize relationshipswith the other team members.Examples of Leader speak:

I support results that establish and reinforce harmony.I generate enthusiasm by focusing on positive and pleasing aspects of work.

3. The produce or perish style (9, 1). The Controlling Leader (Direct &

Dominate)This believes in the authority-obedience. With a high concern for production,

and a low concern for people, managers using this style find employee needsunimportant; they provide their employees with money and expect performanceback. Managers using this style also pressure their employees through rules andpunishments to achieve the company goals. This dictatorial style is based onTheory X of Douglas McGregor, and is commonly applied by companies on theedge of real or perceived failure. This is used in case of crisis management.People who get this rating are very much task-oriented and are hard on theirworkers (autocratic). There is little or no allowance for co-operation orcollaboration. Heavily task-oriented people display these characteristics: they

are very strong on schedules; they expect people to do what they are toldwithout question or debate; when something goes wrong they tend to focus on

who is to blame rather than concentrate on exactly what is wrong and how toprevent it; they are intolerant of what they see as dissent (it may just be

someone's creativity), so it is difficult for their subordinates to contribute ordevelop.

Examples of Leader speak:I expect results and take control by clearly stating a course of action.I enforce rules that sustain high results and do not permit deviation.

4. The middle-of-the-road style (5, 5). The Status Quo Leader.(Balance & Compromise)It is Organization - man management approach, which believes that the

adequate organization performance is possible through balancing the necessityto get out work with maintaining morale of people at satisfactory level.

Managers using this style try to balance between company goals and workers'needs. By giving some concern to both people and production, managers who

use this style hope to achieve acceptable performance.Examples of Leader speak:

I endorse results that are popular but caution against taking unnecessary risk.I test my opinions with others involved to assure ongoing acceptability.


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5. The team style (9, 9). The Sound / Team Leader (Contribute &Commit)This is based on the aspect that work accomplishment is from committedpeople; interdependence through a common stake in the organization purpose

leads to relationships of trust and respect. In this style, high concern is paidboth to people and production. As suggested by the propositions of Theory Y,managers choosing to use this style encourage teamwork and commitmentamong employees. This method relies heavily on making employees feel as aconstructive part of the company.This type of person leads by positive example and endeavours to foster a teamenvironment in which all team members can reach their highest potential, bothas team members and as people. They encourage the team to reach team goalsas effectively as possible, while also working tirelessly to strengthen the bonds

among the various members. They normally form and lead some of the mostproductive teams.

Examples of Leader speak:I initiate team action in a way that invites involvement and commitment.I explore all facts and alternative views to reach a shared understanding of thebest solution.

Q5. Distinguish between internal and external forces of change.

Ans:Forces for change are of two types:

Internal forces External forces.

Internal forces

Any change in organizations internal factors may also necessitate change. Sucha change is required because of two reasons: change in managerial personnel

and deficiency in existing organizational practices.Change in the top management: Change in the top management and

consequent change in the ideas to run the organization also leads to change inthe system, structure and processes. Old managers are replaced by new

managers which are necessitated because of retirement, promotion, transfer or

dismissal. Each new manager brings his own ideas and way of working into theorganization. The formal or informal relationships may change because of

changes in top management. Moreover, attitudes, ideology, leadership style ofthe person may be different from the earlier one, this will reflect in their actions

and decisions. The result is that an organization has to change accordingly.Change in size of the organization: Change in the organizations size leads

to change in the internal structure and complexity of the operations in theorganization.


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Performance gaps: When a gap between set target and actual results (interms of market share, employee productivity and profit) is identified,organizations face the forces to change and reduce the gap.Employee needs and values: With changing needs and values of theemployees, organizations change their policies. For example, attractive financial

incentives, challenging assignments, vertical growth opportunities andautonomy at work may be provided in an organization to attract and retain itseffective employees.Deficiency in existing organization: Sometimes, changes are necessarybecause of deficiency in the present organizational arrangement and process.These deficiencies may be in the form of unmanageable span of management,large number of managerial levels, lack of co-ordination between variousdepartments, obstacles in communication, multiplicity of committees, lack ofuniformity in policy decisions, lack of co-operation between line and staff and so

on.

External forcesEach organization has goals and responsibility related to others in itsenvironment. Thus, an organization must not only deal with its environment inconducting its affairs, but also give consideration to the goals of others, as itestablishes its goals and conducts its operations. The present-day environmentis dynamic and will continue to be dynamic. Changes in social, political,economic, technological, and legal environment force organizations to changethemselves. Such changes may result in organizational changes like majorfunctions, production process, labour-management relations, nature of

competition, economic constraints, organization methods, etc. In order tosurvive in the changing environment, organization must change.

Technology: Technological changes are responsible for changing the nature ofthe job performed at all levels in an organization. When there is a change in

technology in the organizations environment and other organizations adopt thenew technology, the organization under focus becomes less cost-effective and

its competitive position weakens. Therefore, it has to adopt new technology.When the organizations adopt a new technology, its work structures are

affected and a new equilibrium has to be established. We have seen thattechnology has impact on organization structure, organizational processes, and

behaviour of people. For example, computers and automation have madesignificant impact on organizational functioning.

Business scenario: Due to rapid changes in the business scenario with

increasing competition and global economy, the needs and demands are alsochanging among the customers, suppliers and other stakeholders. Organizations

are, therefore, forced to change their operational methods to meet the demandsof the stakeholders. Since every organization exports its outputs to the

environment, an organization has to face competition in the market. There maybe two types of forces which may affect the competitive position of an

organization other organizations supplying the same products and, buyerswho are buying the product. Any change in these forces may require suitable


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changes in the organization. For example, when Indian economy was liberalized(the process still continues), there were many foreign organizations whichentered the Indian market. This forced many Indian organizations to re-alignthemselves with the new situation. The result is that there have been manycases of divesting the business and concentrating on the core business,

acquiring core business, and developing competitive competence to facecompetitive threats. Similarly, there may be changes in buyers in terms of theirneeds, liking-disliking, and income disposal for a product. These changes forcethe organizations to bring those products which meet buyers requirements.

Environmental and National factors: Environmental factors such aseconomic, political and demographic and legal factors play a vital role indevising organizational policies and strategy. Any change in these political andlegal factors may affect the organizational operation. For example,organizations may have to change their employment policies in accordance with

the government policy, demand of the non-government organizations andchanging economic conditions of a country.

Social changes: Social changes reflect in terms of peoples aspirations, their

needs, and their way of working. Social changes have taken place because of

the several forces like level of education, urbanization, feeling of autonomy, andinternational impact due to new information sources. These social changes

affect the behaviour of people in the organization. Therefore it is required tomake adjustment in its working so that it matches with people.

Q6. What are the 14 principles of management of Henri Fayol?

Ans:

Henri Fayol,a mining engineer and manager by profession, defined the nature

and working patterns of the twentieth-century organization in his book, Generaland Industrial Management, published in 1916. In it, he laid down what hecalled 14 principles of management. This theory is also called the AdministrativeTheory. The principles of the theory are:

1. Division of work: tasks should be divided up with employees specializing in a

limited set of tasks so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails

enforcing them with rewards and penalties; authority should be matched withcorresponding responsibility.

3. Discipline: this is essential for the smooth running of business and isdependent on good leadership, clear and fair arguments, and the judiciousapplication of penalties.

4. Unity of command: for any action whatsoever, an employee should receive

orders from one superior only; otherwise authority, discipline, order, andstability are threatened.


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5. Unity of direction: a group of activities concerned with a single objectiveshould be co-coordinated by a single plan under one head.

6. Subordination of individual interest to general interest: individual or groupgoals must not be allowed to override those of the business.

7. Remuneration of personnel: this may be achieved by various methods but itshould be fair, encourage effort, and not lead to overpayment.

8. Centralization: the extent to which orders should be issued only from the topof the organization is a problem which should take into account its

characteristics, such as size and the capabilities of the personnel.

9. Scalar chain (line of authority): communications should normally flow up anddown the line of authority running from the top to the bottom of theorganization, but sideways communication between those of equivalent rank indifferent departments can be desirable so long as superiors are kept informed.

10. Order: both materials and personnel must always be in their proper place;

people must be suited to their posts so there must be careful organization ofwork and selection of personnel.

11. Equity: personnel must be treated with kindness and justice.

12. Stability of tenure of personnel: rapid turnover of personnel should beavoided because of the time required for the development of expertise.

13. Initiative: all employees should be encouraged to exercise initiative withinlimits imposed by the requirements of authority and discipline.

14. Esprit de corps: efforts must be made to promote harmony within theorganization and prevent dissension and divisiveness.

mb0038-assignment set 1 and 2

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