MBA I SEM Management Process and Organization Behavior-MB0022 Set 2

1. Discuss Henri Fayols administrative theory (14 principles of Management) Ans : Henri Fayol, (1841-1925) a French mining engineer, developed 14 principles of management based on his management experiences. These principles provide modern-day managers with general guidelines on how a supervisor should organize her department and manage her staff. Although later research has created controversy over many of the following principles, they are still widely used in management theories.

Following are the fourteen principles of management developed by the Henry Fayol: 1) Division of Work: According to Henry Fayol under division of work, "The worker always on the same post, the manager always concerned with the same matters, acquire an ability, sureness and accuracy which increases their output. In other words, division of work means specialization. According to this principle, a person is not capable of doing all types of work. Each job and work should be assigned to the specialist of his job. Division of work promotes efficiency because it permits an organizational member to work in a limited area reducing the scope of his responsibility. Fayol wanted the division of work not only at factory but at management levels also. 2) Authority and Responsibility: Authority and responsibility go together or coexisting. Both authority and responsible are the two sides of a coin. In this way, if anybody is made responsible for any job, he should also have the concerned authority. Fayol's principle of management in this regard is that an efficient manager makes best possible use of his authority and does not escape from the responsibility. In other awards when the authority is exercised the responsibility. In other awards when the authority is exercised the responsibility is automatically generated. 3 )Discipline: According to Henry Fayol discipline means sincerity about the work and enterprise, carrying out orders and instructions of superiors and to have faith in the policies and programmes of the business enterprise, in other sense, discipline in terms of obedience, application, energy and respect to superior. However, Fayol 1

does not advocate warming, fines, suspension and dismissals of worker for maintaining discipline. These punishments are rarely awarded. A well disciplined working force is essential for improving the quality and quantity of the production. 4) Unity of Command: A subordinate should take order from only one boss and he should be responsible and accountable to him. Further he claimed that if the unit of command is violated, authority is undermined, disciplined in danger, order disturbed and stability threatened. The violation of this principle will face some serious consequences. In this way, the principle of unity of command provides the enterprise disciplined, stable and orderly existence. It creates harmonious relationship between officers and subordinates, congenial atmosphere of work. It is one of the Fayol's important essential principle of management. 5) Unity of direction: Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led and directed by a single person. This enables effective co-ordination of individual efforts and energy. This fulfils theprinciples of unity of command and brings uniformity in the work of same nature. In this way the principle of direction create dedication to purpose and loyalty. It emphasizes the attainment of common goal under one head. 6) Subordination of individual interests to general interests : The interest of the business enterprise ought to come before the interests of the praise individual workers. In other words, principle of management state that employees should surrender their personnel interest before the general interest of the enterprise. Sometimes the employees due to this ignorance, selfishness, laziness, carelessness and emotional pleasure overlook the interest of the organisation. This attitude proves to be very harmful to the enterprise. 7) Fair Remuneration to employees :According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory. Both employees and exemployers should agree to it. Logical and appropriate wage-rate and methods of their payment reduces tension and differences between workers and management, create harmonious relationship and a pleasing atmosphere of work. Further Fayol recommends that residential facilities be provided including arrangement of electricity, water and facilities. 8) Centralization and Decentralization:There should be one central point in the organisation which exercises overall direction and control of all the parts. But the degree of centralization of authority should vary according to the needs of situation. According to Fayol there should be centralization in small units and proper decentralization in big organisation. Further, Fayol does not favor centralization or decentralization of authorities but suggests that these should be proper and effective adjustment between centralization and decentralization in order to achieve maximum objectives of the business. The choice between centralization and

decentralization be made after taking into consideration the nature of work and the efficiency, experience and decision-making capacity of the executives. 9) Scalar chain :The scalar chain is a chain of supervisors from the highest to the lowest rank. It should be short-circuited. An employee should feel the necessity to contact his superior through the scalar chain. The authority and responsibility is communicated through this scalar chain. Fayol defines scalar chain as "the chain of superiors ranging from the ultimate authority to the lowest rank." The flow of information between management and workers is a must.Business opportunities must be immediately avoided of. so we must make direct contact with the concerned employee. Business problems need immediate solution, so we cannot always depend on the established scalar chain. It requires that direct contact should be established. 10) Order: According to Fayol there should be proper, systematic and orderly arrangement of physical and social factors, such as land, raw materials, tools and equipments and employees respectively. As per view, there should be safe, appropriate and specific place for every article and every place to be used effectively for a particular activity and commodity. In other words,principles that every piece of land and every article should be used properly, economically and in the best possible way. Selection and appointment of the most suitable person to every job. There should be specific place for every one and every one should have specific place. This principle also stresses scientific selection and appointment of employees on every job. 11) Equity : The principle of equality should be followed and applicable at every level of management. There should not be any discrimination as regards caste, sex and religion. Aneffective management always accords sympathetic and human treatment. The management should be kind, honest and impartial with the employees. In other words, kindness and justice should be exercised by management in dealing with their subordinates. This will create loyalty and devotion among the employees. Thus, workers should be treated at par at every level. 12) Stability of use of personnel : Principle of stability is linked with long tenure of personnel in the organisation. This means production being a team work, an efficient management always builds a team of good workers. If the members of the team go on changing the entire process of production will be disturbed. It is always in the interest of the enterprise that its trusted, experienced and trained employees do not leave the organisation. Stability of job creates a sense of belongingness among workers who with this feeling are encouraged to improve the quality and quantity of work. 13) Initiative : Under this principle, the successful management provides an opportunity to its employees to suggest their new ideas, experiences and more convenient methods of work. The employees, who has been working on the specific job since long discover now, better alternative approach and technique of work. It 3

will be more useful, if initiative to do so is provided to employees. In simple, to ensure success, plans should be well formulated before they are implemented. 14) Spirit of Co-operation (Spirit de corps) : In order to achieve the best possible results, individual and group effort are to be effectively integrated and coordinated. Production is a team work for which the whole-hearted support and co-operation of the members at all levels is required. Everyone should sacrifice his personal interest and contribute his best energies to achieve the best results. it refers to the spirit of loyalty, faithfulness on the part of the members of the group which can be achieved by strong motivating recognition and importance of the members for their valuable contribution, effective coordination, informal mutual social relationship between members of the group and positive and constructive approach of the management towards workers' welfare.

2. Explain shaping behavior and different methods of shaping behavior. Ans : When a systematic attempt is made to change individuals behavior by directing their learning in graduated steps, it is called shaping behavior. There are four methods of Shaping Behavior. They are as follows: 1. Positive reinforcement Reinforcement) occurs when a behavior (response) is followed by a favorable stimulus (commonly seen as pleasant) that increases the frequency of that behavior. In the Skinner box experiment, a stimulus such as food or sugar solution can be delivered when the rat engages in a target behavior, such as pressing a lever. 2. Negative reinforcement Escape) occurs when a behavior (response) is followed by the removal of an aversive stimulus (commonly seen as unpleasant) thereby increasing that behavior's frequency. In the Skinner box experiment, negative reinforcement can be a loud noise continuously sounding inside the rat's cage until it engages in the target behavior, such as pressing a lever, upon which the loud noise is removed. 3. Positive punishment (Punishment) (also called "Punishment by contingent stimulation") occurs when a behavior (response) is followed by an aversive stimulus, such as introducing a shock or loud noise, resulting in a decrease in that behavior. 4. Negative punishment (Penalty) (also called "Punishment by contingent withdrawal") occurs when a behavior (response) is followed by the removal of a favorable stimulus, such as taking away a child's toy following an undesired behavior, resulting in a decrease in that behavior.

Both positive and negative reinforcement result in learning. They strengthen a response and increase the probability of repetition. Both punishment and extinction weaken behavior and tend to decrease its subsequent frequency.

3. Write a detailed note on MBIT and big five model. Ans : The Myers-Briggs Type Indicator (MBTI) assessment is a psychometric questionnaire designed to measure psychological preferences in how people perceive the world and make decisions. These preferences were extrapolated from the typological theories originated by Carl Gustav Jung, as published in his 1921 book Psychological Types (English edition, 1923).The original developers of the personality inventory were Katharine Cook Briggs and her daughter, Isabel Briggs Myers. They began creating the indicator during World War II, believing that a knowledge of personality preferences would help women who were entering the industrial workforce for the first time identify the sort of war-time jobs where they would be "most comfortable and effective." The initial questionnaire grew into the Myers-Briggs Type Indicator, which was first published in 1962. The MBTI focuses on normal populations and emphasizes the value of naturally occurring differences. The MBTI classifies human beings into four opposite pairs (dichotomies), base on their psychological opposites. These four opposite pairs result into 16 possible combinations. In MBTI, Individuals are classified as follows : a. b. c. d. Extroverted or introverted (E or I). Sensing or intuitive (S or N). Thinking or feeling (T or F). Perceiving or judging (P or J).

These classifications are then combined into sixteen personality types. For example: a. INTJs are visionaries. They usually have original minds and great drive for their own ideas and purposes. They are characterized as skeptical, critical, independent, determined, and often stubborn. b. ESTJs are organizers. They are realistic, logical, analytical, decisive, and have a natural head for business or mechanics. They like to organize and run activities. c. The ENTP type is a conceptualizer. He or she is innovative, 5

individualistic, versatile, and attracted to entrepreneurial ideas. This person tends to be resourceful in solving challenging problems but may neglect routine assignments.

The big five model Many researchers argue that five basic dimensions underlie all other personality dimensions (e.g McCrae and Costa, 1990 Digman, 1997).

The five basic dimensions are: 1. Extraversion: Comfort level with relationships. Extraverts tend to be gregarious, assertive, and sociable. Introverts tend to be reserved, timid, and quiet. 2. Agreeableness: Individuals propensity to defer to others. High agreeableness people cooperative, warm, and trusting. Low agreeableness peoplecold, disagreeable, and antagonistic. 3. Conscientiousness: A measure of reliability. A high conscientious person is responsible, organized, dependable, and persistent. Those who score low on this dimension are easily distracted, disorganized, and unreliable. 4. Emotional stability : A persons ability to withstand stress. People with positive emotional stability tend to be calm, self-confident, and secure. Those with high negative scores tend to be nervous, anxious, depressed, and insecure. 5. Openness to experience: The range of interests and fascination with novelty. Extremely open people are creative, curious, and artistically sensitive. Those at the other end of the openness category are conventional and find comfort in the familiar.

Research suggested important relationships between these personality dimensions and job performance (Barrick, & Mount , 1991). For example, conscientiousness predicted job performance for all occupational groups. Individuals who are dependable, reliable, careful, thorough, able to plan,organized, hardworking, persistent, and achievementoriented tend to have higher job performance. Employees higher in conscientiousness develop higher levels 6

of job knowledge. For the other personality dimensions, predictability depended upon both the performance criterion and the occupational group. Extraversion predicted performance in managerial and sales positions. Openness to experience is important in predicting training proficiency.

4. Explain the stepwise procedure of Rational Decision Making Model. Ans : Organisations take umpteen decisions during the functioning of the day-today activities.

Types of decisions There are two major categories of decisions- programmed and non-programmed. Programmed decisions are stapled and tested formula for problems that recur repeatedly. Non-programmed decisions are responses to situations, which are unique and have not been encountered previously. Rational decision-making model This is the commonly used framework for making decisions and aids taking nonprogrammed decisions. Step 1: Identify the problem and the criteria to be met. Misdiagnosed problems result in faulty decisions. Framing the problem in a new perspective helps decisionmakers think unconventionally. Another issue is mistaking the symptoms to be problems and not recognising the root cause. This hinders the problem identification stage and biases the process. Step 2: Develop a list of alternative actions. Generating a list of choices aids solution search. Soliciting information from various sources improves the quality of alternatives generated. Step3: Choose a solution from the list of alternatives. However, this is not the actual decision-making process. It is the first stage of a lengthy process of decisionmaking. The solution selected should have matching criteria to those identified in the first step. Often, there is no single alternative that fulfils all the criteria outlined in the problem identification stage. Further, decision-makers have to contend with the alternative, which minimally meets most criteria.

Step 4: The process of decision-making does not end with the selection of a solution. Its success depends on the implementation of the solution, which necessitates envisaging the future. This vision must be translated effectively into action through others involved in the process. Identifying each task to be completed and resources required for the completion of the objective is critical for the success of a decision-making process. Step 5: Evaluate the choice. Even after the successful implementation, the effectiveness of the decisions taken need to be monitored and evaluated periodically. The criteria developed in the first step are used for evaluation. The rational decision-making model demands creativity and innovation. Organisations need to thus create an environment that fosters such ingenuity in decision-making.

5. Elaborate Group Structure. Ans : Work groups in order to function as a coordinated unit need to have a proper structure where there must be certain elements like formal leadership, role clarity among group members. In the absence of these factors groups not only become conflict ridden, but also suffer from confusion, and function on a sub optimal level. Each element is explained briefly below: 1. Formal Leadership Almost every work group must have a formal leader, which is typically identified by a title. The leader can play an important part in the groups success. 2. Roles All group members are actors, where each is playing a role. While some of these roles may be compatible others create conflicts. Different groups impose different role requirements on individuals. 3. Role perception 8

For playing ones role effectively in a group, ones view of how one is supposed to act in a given situation must be clear leading to clear role perception. By watching and imitating senior members of a group the new comers learn how to take on their roles effectively and also learn how to play them well. 4. Role expectations Tuning oneself and behaving in a socially desirable manner is a part of fulfilling role expectations in a given situation in the context of achieving group goals and organizational goals. 1. Role conflict When a group member is faced with the challenge of playing multiple roles, role conflict may occur due to inability of the individual to balance all the roles effectively, thereby reducing role effectiveness, hampering the group and organizational goal attainment process.

6. Write down different steps of Conflict Management. Ans : The process of conflict management has the following steps (Schermerhorn et al, 20 02): Stage I: Potential Opposition or Incompatibility This stage concludes the conditions that create opportunities for conflict to arise. Th e conditions are as follows: 1. Communication Communication becomes a source of conflict due to semantic difficulties, misunderstandings, and noise (distortion) in the communication channels. Differing word connotations, jargon, insufficient exchange of information, and noise in the communication channel are all barriers to communication 9

and potential antecedents to conflict. 2. Structure The term structure includes variables such as size, degree of specialization, jurisdictional clarity, member goal compatibility, leadership styles, reward systems, and the degree of dependence. Size and specialization act as forces to stimulate conflict. The larger the group and more specialized its activities, the greater the likelihood of conflict. The potential for conflict is greatest where group members are younger and turnover is high. The greater the ambiguity in responsibility for actions lies, the greater the potential for conflict. 3. Personal variables Personal variables include individual value systems and personality characteristics. Certain personality types lead to potential conflict. Value differences are the best explanation for differences of opinion on various matters.

B. Stage II: Cognition and Personalization Antecedent conditions lead to conflict only when the parties are affected by and awa re of it. Conflict is personalized when it is felt and when individuals become emotionally involved. Emotions play a major role in shaping perceptions. Negative emotions produce oversimplification of issues, reductions in trust, and negative interpretations of the other partys behavior. Positive feelings increase the tendency to see potential relationships among the elements of a problem, to take a broader view of the situation, and to develop more innovative solutions (Robbins, 20 03).

C. Stage III: Intentions The primary conflict handling intentions are represented as follows: Cooperativenessthe degree to which one party attempts to satisfy the other partys concerns. Assertivenessthe degree to which one party attempts to satisfy his or her own concerns.

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 Competing: When one person seeks to satisfy his or her own interests, regardless of the impact on the other parties to the conflict. Collaborating: When the parties to conflict each desire to fully satisfy the concerns of all parties. The intention is to solve the problem by clarifying differe nces rather than by accommodating. Avoiding: A person may recognize that a conflict exists and want to withdraw from it or suppress it. Accommodating: When one party seeks to appease an opponent, that party is willing to be self sacrificing. Compromising: When each party to the conflict seeks to give up something, sharing occurs, resulting in a compromised outcome. There is no clear winner or loser, and the solution provides incomplete satisfaction of both parties concerns.

Stage IV: Behavior The behavior stage includes the statements, actions, and reactions made by the conflicting parties. These conflict behaviors are usually overt attempts to implement each partys intentions. It is a dynamic process of interaction with a continuum. At the lower part of the continuum, conflicts are characterized by subtle, indirect, and highly controlled forms of tension. Conflict intensities escalate as they move upward along the continuum until they become highly destructive. Functi onal conflicts are typically confined to the lower range of the continuum.

Stage V: Outcomes Outcomes may be functional improving group performance, or dysfunctional in hindering it. Conflict is constructive when it (Robins, 2003): a. Improves the quality of decisions. b. Stimulates creativity and innovation. c. Encourages interest and curiosity. d. Provides the medium through which problems can be aired and tensions released . e. Fosters an environment of self-evaluation and change. 11

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