MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)

Management Process and Organizational Behaviour
Describe the concept of vision in an organisation with an example. How
is it different from mission statement?
Answer to Q1
A vision statement is a formal statement of what a business wants to be. It is generally
decided by keeping in mind the mindset and the wants of the customers, the employees, the
society, the suppliers, distributors, financers and all the stakeholders. With the help of
statement the stakeholders should be able to understand the values, Core purpose of the
company and the end goal for which the company works. The vision statement summarizes
the company scope, the companys end goal, the targeted audience and the benefits for all
the stake holders.
Examples
1) JPMORGAN has the vision statement as To provide unparalleled service to our
clients by empowering them with strong analytical insights that enable them to more
effectively manage their human assets.
The statement clearly shows that JPMORGAN is a client oriented company which believes
in providing the best service to the clients with the assistance of strong analytics skills used
for managing assets. The Statement from employees point of view enables them to
understand that Customer service is everything for them and they are selling their skill set to
manage assets of client more effectively. From Client perspective they can make it out
clearly that their assets would be managed more effectively by the company with better
returns and high level of customer services.
2) Apollo hospital has the Vision statement as To bring healthcare of International
standards within the reach of every individual. We are committed to the achievement
and maintenance of excellence in education, research and healthcare for the benefit
of humanity
Apollo hospital shows that they are not only concerned with providing international standards
to its customers, but also shows that they want it to be cost efficient enough so that all
individuals can effort the same. They also point out to its stakeholders and the employees
that it is not only providing services to its customers, but would also engage in research and
development aspect which would benefit the society as a whole.
Parts of Vision : As per Collins and Porras the Vision statement could be broken down to
four parts
1) Core Values Core Values are the ethics, moral values which a company would never
compromise on and which are always what stakeholders, customers look for. For example
Apollo hospital has mentioned that they want its service to reach out to all individuals with
high standards. Which clearly shows that their target audience are all set of people but
without compromising on the standard of service provided which is a core value to be
followed by the company.

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)
2) Core Purpose A good vision statement should be able to project the end goal of the
company with the means by which they would achieve the same. In the above example
JPMORGAN clearly states that its end objective is to manage Clients Human asset with the
assistance of its own strong analytics Skill.
3) BHAG Its means that company should put a goal which is difficult to achieve yet there
are some chances to attain the goal. In above example Apollo hospital claims to benefit the
whole humanity as a target audience which is very big since to be beneficial to whole
humanity it has to have global presence.
4) Vivid Descriptions The Statement should be inspiring enough to the stakeholders to be
impressed with firm as well establish trust on the firms working. However it has to be simple
enough to be understood by everyone. Generally it is said that a statement should be so
simple that a grandmother or a twelve year old test should be able to understand the same.
This is also called Grandmas Test or 12-Year-Old Test.
In the Collins and Porras format the vision and the mission statements are fairly well
integrated. Vision is the state that one wants to be and mission is the way to achieve the
vision. Your vision could be to become worlds no 1 company, and you will do it by providing
high quality of products.

Define the term management. Explain the scientific management

theory proposed by Taylor
Answer
Management could be defined as process of designing and maintaining an environment in
which the individuals working in groups efficiently employ resources and accomplish the
selected goals of self and the organisation. As per F.W Taylor Management is an art of
knowing what to do, when to do, and see that it is done in the best and cheapest
way.
Management is a recent discipline and it draws from the disciplines of Economics,
Psychology, Sociology, Anthropology, etc. It has evolved from series theories explained
below.
Scientific Management Theory
Operational Theory
Behavioural science
Systems theory
Scientific Management Theory

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)
Scientific Management Theory
The focus of this thought is increase in productivity and efficiency through applying scientific
methods on the shop floor or workplace. It tries to identify one best way of doing a job
however emphasises on workers co operation management labour relations and developing
workers and motivating. However the focus is on the shop floor efficiency through scientific
methods and even motivation is proposed to be executed through piece rate systems or
paying based on the number of pieces of work produced. The thought was led by Fredrick
W. Taylor, and he enunciated the principles of scientific management in 1911 after
experimenting on the shop floor of a steel company as a supervisor. He was influenced by
Frank and Lillian Gilbreth and their Time and Motion study(a study that identifies the least
time required for a motion in workplace and make it scientific) of 1900 and that of Henry L.
Gantt who propounded the idea of scientific selection of workers and harmonious
cooperation in 1901. Scientific management Taylors parlance means:

Develop a science for each element of a manss work which replaces the old rule of
thumb method.
Scientifically select and then train, teach, and develop the workman,whereas in the
past, he chose his own work and trained himself as best as he could.
The workers heartily cooperate with the men so as to ensure that all of the work are
done in accordance with the principles of science which has been developed.
There is an almost equal division of work and responsibility between the
management and the workmen. The management takes over all work for which they
are better fitted than the workmen, while in the past, almost all of the work and the
greater part of the responsibility were thrown upon the men.

Social scientist Max Weber, between the late 1980s and the early 1990s, propounded the
idea of bureaucracy. He was trying to find the systems that put order in the complex
industrial economy. Webers ideal bureaucracy envisaged hierarchical organisation and
delineated the lines of authority in a fixed area of activity, action on the basis of written rules,
implementation by the neutral officials, and the career advancement based on the idea of
primacy of the organisation over the individuals. His thoughts are considered in the scientific
school but transcends into behavioural science area also since he is talking about how
people should behave in an organisation and how that should be structured.

Q3 Give the definition and importance of planning in an organisation and explain

the steps in planning.
Answer
Planning can be defined as a basic management function which enables one to select the
purpose of the business, and how the resources should be mustered to achieve that purpose
to include using the available resources optimally to do that. Planning implies goal setting for
the organisation keeping in the mind the constraints, opportunities, and threats as much as
what the person or business which is planning wants to do. Thus a plan is a blueprint for

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)
goal achievement a blue print that specifies the necessary resource allocations, schedules,
tasks, and the other actions to achieve the purpose.
Planning is important for the following reasons:

It helps the management to clarify, focus and research their businesses or projects
development and prospects.
It provides a considered and logical framework within which a business can develop
and pursue business
It offers benchmark against which the actual performance can be measured and
reviewed.
It plays a vital role in helping to avoid mistakes or recognise hidden opportunities.
In the business context, it guides the development of products, management,
finances, and the most importantly, markets and competition.
It helps in forecasting the future and makes the future visible to some extent.
It bridges between where we are and where we want to go.
Steps in Planning
Steps in Planning
Qualifying Plans by Budgeting
Formulating Plans
Selecting a Course
Evaluating Alternatives Courses
Determining Alternatives Courses
Developing Premises
Establishing Objectives
Being aware of Opportunities

1. Being aware of Opportunities This means being aware of the customer needs,
market, competition, our strengths, and weaknesses. The companies do engage in
SWOT analysis( Strength, Weaknesses, Opportunity, and Threat)
2. Establishing objectives This implies establishing what we want to be and what we
want to accomplish and when and in relation to which market segment. At the highest
level, this is done through vision and mission building.
3. Developing premises Deciding on the environment (both external and internal) in
which our plans are going to operate. Business has external environment created by
political factors to include legislation, legal framework, etc. The external analysis is
done through a process called PEST analysis (Political, Economic, Social and
technological).Pest is a framework and helps you to think systematically through the

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)

4.

5.

6.
7.
8.

factors that could affect. In relation to the business mission, each of the factors may
become a threat or opportunity (or of course may be neither).
Determining alternatives courses Identifying the most promising alternatives to
accomplish what we want to. This is done by combining the information about the
opportunities, threats, and own strength and weaknesses.
Evaluating alternatives courses Comparing the alternatives to find out which of
them will meet our goals and at optimal cost and profit keeping sustainability into the
mind
Selecting the course Selecting the course that we want to follow.
Formulating plans This implies making plans that support the course of action by
buying equipment, space, planning the type of HR, etc.
Qualifying plans by budgeting Identifying the cost involved, how the financial
resources will be mobilised, what is capital expenditure, what is operational
expenditure, the working capital, etc.

What is meant by leading? Describe the characteristics of leading.

Answer
Leading can be defined as the process of setting direction, creating alignment, and creating
engagement to deliver high productivity and to facilitate change. Many organisations found
that leading, liberated the human spirit of independence and the desire to meet challenging
goals and surpass them. Organisations showed profits several times more than other
companies in the competition with the concept of leading. A Southwest Airline of the U.S is a
classical example wherein it reported profit quarter for over 30 years without a break when
every other airline was reporting loss.
Characteristic of Leading
Pervasiveness - Leading is required at all levels of organisation. It is incorrect to believe
that leading is required only at the top level. This is more so in the modern context where
teams are the working entities. In team based working, the team leader has to act much like
a CEO except that the level of working may be much smaller. He/she may be motivating a
team of 5 or 10 people while a CEO may be motivating the whole company, but the function
of giving targets, resources, support, motivating, etc, does not change.
Continuity Leading is a continuous activity as it is continuous throughout the life of
organisation. It takes place on a day to day basis though its importance may become higher
when the organisation is undergoing a change.
Human Factor Leading implies the existence of followers much like directing implies the
existing of subordinates to whom one can pass orders. It follows that there is a key human
factor in leading and because human factor is complex and behaviour is unpredictable.
Leading function is important and people have to learn the art of leading. Further this
characteristic is based on the belief that human beings are motivated by challenging jobs
and they feel a sense of achievement in doing these. The premise is also that people
normally work towards achieving the goals i.e. human being have goal oriented behaviour.

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)
Creativity Leading is a creative activity because of the human factors and individual
variance and group variances. It is the creativity aspect which brings in the differentiation. It
also ensures that people have to look forward to the meaning and without functions people
find it difficult to find the meaning. Hence we can see that creating functions around which
people find meaning is a creative function that leads to achievements.
Executive Function Leading is carried out by all managers and executives at all levels
throughout the working of an enterprise. A follower receives tasks, resources, know-know
and support from a leader and he/she trusts his/her leader to do the same. Leading implies
that the followers execute the functions, which the leader and the follower agree is important
for achieving the organisational goals and through it the individual goals.
Delegating function Leading implies guiding followers to the destination. It means that the
followers actually execute and if they have to execute, they need the powers for doing so.
Hence delegating is natural fallout of leading. It also follows that the leader trusts his/her
followers and the vice versa. Hence, mutual trust always exists in leading. Therefore,
delegating function based on the mutual trust is a characteristic of leading.

What are attitudes? Explain the components and functions of attitude.

Answer
An Attitude is the predisposition of the individual to evaluate some objects in a favourable or
an unfavourable manner. The most pervasive phenomenon is attitude. People at work
place have attitudes about lots of topics that are related to them. These attitudes are firmly
embedded in a complex psychological structure of beliefs. Attitudes are different from
values. Values are the ideals, whereas attitudes are narrow. They are our feelings, thoughts
and behavioural tendencies toward a specific object or situation. Attitude is a preposition to
respond to a certain set of facts. Attitudes are evaluative statements either favourable or
unfavourable concerning the objects, people or events.
Components of Attitude
Cognition It is the mental process involved in gaining knowledge and comprehension,
including thinking, knowing, remembering, judging and problem solving. The cognition
component of an attitude reflects a persons perceptions or beliefs. Cognitive elements are
evaluative beliefs and are measured by attitude scales or by asking about thoughts.
Affect This component refers to the persons feelings that result from his/her beliefs about
a person, object or situation. A person who believes that hard work earns promotions may
feel angry or frustrated when he/she works hard but is not promoted. Affect is the emotional
component of an attitude. It refers to an individuals feeling about something or someone.
Behaviour This component refers to the individuals behaviour that occurs as a result of
his or her feeling about the focal person, object or situation. An individual may complain,
request a transfer, or be less productive because he or she feels dissatisfied with work. The
behavioural component of an attitude refers to an intention to behave in a certain way
someone or something.

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)
Functions of attitude
Adjustment function Attitudes often help people to adjust to their work environment. Welltreated employees tend to develop a positive attitude towards their job, management and
the organisation in general, while berated and ill treated organisation members develop a
negative attitude. In other words, attitudes help employees adjust to their environment and
form a basis for future behaviour.
Ego-Defensive function Attitudes help people to retain dignity and self-image. When a
young faculty member who is full of fresh ideas and enthusiasm, joins the organisation, the
older members might feel somewhat threaten by him/her. But they tend to disapprove his
somewhat threatened by him/her. But they tend to disapprove his creative ideas as crazy
and impractical and dismiss him/her altogether.
Value-expressive function Attitudes provide individuals with a basis for expressing their
values. For example, a manager who values hard and sincere work will be more vocal
against an employee who is having a very casual approach towards work.
Knowledge function Attitudes provide standards and frames of reference that allow
people to understand and perceive the world around them. If one has a strong negative
attitude towards the management, whatever the management does, even employee welfare
programmes, can be perceived as something bad and as actually against them.
_________________________________________________________________________
Define leadership. Differentiate between authoritarian and democratic
leadership style.
Answer
Leadership is the art of motivating a group of people to act towards achieving a
common goal. Effective leadership is based upon ideas but wont happen unless those
ideas can be communicated to others in a way that engages them. In simple words, the
leader is the inspiration and the director of the action. He is the person in the group that
possesses the combination of personality and leadership skills that makes others want to
follow his direction. In business, leadership is welded to performance. Those who are viewed
as effective leaders are those who increase their companys bottom lines.
Authoritarian
Nelson and Quick defines authoritarian leadership as a style of leadership in which the
leader uses strong, directive, controlling actions to enforce the rules, regulations, activities
and the relationships in the work environment The distinct characteristic are:

Sets goals individually

Engages primarily in one-way, downward communication.
Controls discussions of followers
Sets policy and procedures unilaterally
Dominates interaction

MB0038 - Management Process and Organizational Behaviour - 4 Credits

(Book ID: B1621)

Directs the completion of tasks personally

Provides infrequent positive feedback
Rewards obedience and punishes mistakes
Exhibits poor listening skills
Uses conflict for personal gain

Democratic
Nelson and quick defines democratic leadership as a style of leadership in which the
leaders takes collaborative, responsive, interactive actions with followers concerning
the work and the work environment. The distinct characteristics are:

Involves followers in setting goals

Engages in two-way, open communication
Facilitates discussion with followers
Solicits input regarding determination of policy and procedures.
Focuses on interaction
Provides suggestions and alternatives for the completion of tasks
Provides frequent positive feedback.
Rewards good work and uses punishment only as a last resort
Exhibits effective listening skills
Mediates conflict for group gain.