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M.Com Previous Year Solved Papers: Organisational Behaviour' 2017 (August - Incomplete)

2017 (September)
COMMERCE (Paper: 102)
(Organisational Behaviour and Theory)
Full Marks – 80
Time – Three Hours
The figures in the margin indicate full marks for the questions.
1. (a) Define Organisation? Discuss in brief the important typologies of organisations.        6+10=16
Ans: The term 'Organization' can be used in different senses. It can be used as a group of person working together to as a structure of relationships or as a process of management.
When it is used to refer to a group of person working together, it means a concern, an undertaking or as enterprise.
When it is used to refer to a structure of relationships, it means the structural relationships among the positions and jobs and person (i.e., the framework of responsibility and authority) through which the enterprise functions, and it is called organization structure.

Allen – “An organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
Mooney and Reily – “Organization is the form of every human association for the attainment of a common purpose.”
Koontz & O’Donnel – Organizing involves the establishment of an intentional structure of roles through determination and enumeration of the activities required to achieve the goals of an enterprise and each part f it, the grouping of these activities, the assignment of such groups of activities to manager, the delegation of authority to carry them out and provision for co-ordination of authority and informational relationships, horizontally and vertically in the organization structure.
Thus organizing function of management includes
a)      Division of work
b)      Grouping of activities
c)       Assignment of duties
d)      Delegation of authority and
e)      Defining relationships.
Some scholars based on size, ownership, legal status and the area of operation have classified organisation. Another set of scholars has classified the organisation based on function or purpose, primary beneficiary, consumer and authority. Now we will be discussing about the classification based on the latter set of scholars.
a) Typologies by Goal or Function or Purpose
Talcott Parsons has classified organisations into four types on the basis of their functions or goal served by the organisation. The four types of organisations are:
i) Production/Economic Organisation: these types of organisations produce goods or make things which are consumed by the society.
ii) Political Organisation: these types of organisations are concerned with the attainment of political goals. They generate and allocate power within the society and also maintain peace and stability in the society. Legislature and government departments are examples of such organisations.
iii) Integrative Organisations: These organisations try to settle conflicts, integrate and coordinate various segments of the society to work together and provide stability in the society. Judicial courts, police, and social agencies are examples of this type of organisation.
iv) Pattern Maintenance Organisation:  These organisations are concerned with the societal continuity with a focus on long-term issues such as of society’s values, patterns, knowledge, culture, etc. through the educational, cultural and religious institutions.
Katz and Kahn have also classified organisations into four types based on the functions or goals served by the organisation. The four types of organisations are:
(i) Production or Economic Organisation: These organisations are concerned with the manufacture of goods, provision of essential services to the people and also building up of infrastructure. Their focus is on creation of wealth.
(ii) Managerial or Political Organisation: These organisations are concerned with adjudication; coordination and control of resources; people; and sub-systems.
(iii) Adaptive Organisation: These organisations provide opportunities for creation of knowledge, testing and development of theories and also provide information and solutions to the existing problems. Universities and research institutions are examples of these organisations.
(iv) Maintenance Organisation: These organisations give space and scope and devote to the socialization of people for their roles in other organisations and in the larger society. Schools, church, and health and welfare institutions are examples of this type of organisation.
b) Typologies on the Bases of the Consumer or Primary Beneficiary Blau and Scott
They classified the organisation based on the primary recipient of the output or who benefits. The main basis for this classification is who the direct consumer of the output of the organisation is, or who the prime beneficiary is. Four types of organisation are derived on this basis:
(i) Mutual Benefit Association: In this type of organisation the primary beneficiaries are the members themselves. Political parties, trade unions, professional associations and religious bodies are examples of these organisations.
(ii) Business Organisations or Business Concerns: In this type of organisation the owners of properties are the prime beneficiaries of the organisation. They are mostly concerned about the return on investment in the organisation than with the nature of output of the organisation. The other main concern is that of operating efficiently to make the maximum profit at minimum cost. In order to survive they have to compete with other organisations.
(iii) Service Organisations: In this type of organisation the clients who are served are the prime beneficiaries. Hospitals, educational institutions, social work agencies legal aid societies, etc. are examples of these organisations.
The clients who are supposed to be the primary beneficiaries do not have usually control over these organisations.
(iv) Commonwealth Organisations: In this type of organisation the public at large is its primary beneficiary. Post office, police service, fire department, military service are examples of these types of organisations. They perform mostly protective services or serve as its administrative arm.
c) Typologies on the Basis of Compliance A. Etzioni: He differentiates organisation on the basis of compliance. Compliance involves one party telling or directing another party to do something. It refers to the manner in which the lower participants in an organisation respond to the authority system of the organisation. In this context, Etzioni identifies three types of power: coercive, utilitarian and normative. Coercive power is based on the application or the threat of physical sanction. Here compliance is alienated. Utilitarian power is based on control over material resources. Here compliance takes a calculative or utilitarian approach. Normative power based on the allocation of symbolic rewards. Here the compliance is moral. Almost all the organisations would follow the three types of authority, which combine three types of compliance.
d) Typologies on the Basis of Authority: Max Weber identifies three types of organisation on the basis of exercise of authority. They are explained below:
(i) Charismatic Authority: In this type of organisation there will be a leader and set of disciples or followers. Because of charisma or an exceptional quality of the followers accept his authority or repose their faith in the person. In this type of organisation the administrative apparatus is very loose and unstable that is a built in instability.
(ii) Traditional Authority: In this type of organisation the followers or employees accept the authority of a person who occupies the traditionally sanctioned position of authority. The administrative apparatus in this kind of domination would consist of personal servants, relatives and feudal lords.
(iii) Legal or Rational Authority: In this type of organisation people or followers accept the authority of a leader, which is based on the belief in the rightness of law. It is legal because authority is exercised by means of a system of rules and procedures by reason of the office, which an individual holds. The administrative apparatus corresponding to this kind of authority is bureaucracy.

(b) What do you mean by System and Contingency Approach? Make an Appraisal of Systems and Contingency Theory. 6+10=16
Ans: The systems approach focuses on understanding the organisation as an open system that transforms inputs into outputs. The systems approach began to have a strong impact on management thought in the 1960s as a way of thinking about managing techniques that would allow managers to relate different specialties and parts of the company to one another, as well as to external environmental factors. The systems approach focuses on the organisation as a whole, its interaction with the environment, and its need to achieve equilibrium.
In simple words, a system may be defined as a set a interrelated and interdependent parts forming an organized unit or entity. These parts are known as sub-systems which interact with each other and are subject to change. They are interrelated as well as interdependent. Hence, changes in any sub-system lead to changes in others. Any working organisation may be said to have three sub-systems as follows:
1. Technical Sub-System It represents the formal relationships among the members of an organisation.
2. Social Sub-System: It provides social satisfaction to members through informal group relations.
3. Power Sub-System: It reflects the exercise of power or influence by individuals and groups.
Appraisal of System Approach
Systems theory has made the following advantages
1. It provides a manager a way of thinking about the job he has to managed and finds an opportunity to him for looking it the organization as a whole and for achieving overall effectiveness.
2. It provides main focus to organizational efforts towards a direction which people should move.
3. It draws attention of managers to an important factor and that is the environment in which an organization works. The interaction with the environment is dynamic.
4. It includes within it focus both micro and macro aspects of the organizations. Hence it serves a multi-level and multi-dimensional approach.
5. It implies that the modern manager should have analytical orientation should be expert in motivating to achieve goals and open mandate to receive and respect new ideas, i.e. creativity and innovation.
6. It also implies that management education must seek to develop the ability to work with and motivate others.
7. The feed back mechanism provides and opportunity to rearrange organizations part according to the change in the environment.
The system theories have been criticized on the following grounds.
1. Systems theory is not a complete explanation of the whole organizational system. It does not explain how the sub-system of the specific organization is uniquely related in a given environment.
2. The conceptional framework for understanding organization provided by system theory is too abstract.
3. It does not really offer any new thing. Managers do understand interrelationship between different parts and the influence of environment on organization and it sub-systems.
CONTINGENCY APPROACH: The contingency approach focuses on applying management principles and processes as dictated by the unique characteristics of each situation. It emphasizes that there is no one best way to manage and that it depends on various situational factors, such as the external environment, technology, organisational characteristics, characteristics of the manager, and characteristics of the subordinates. Contingency theorists often implicitly or explicitly criticize the classical approach for its emphasis on the universality of management principles; however, most classical writers recognized the need to consider aspects of the situation when applying management principles.
Appraisal of Contingency approach: The contingency approach focuses on applying management principles and processes as dictated by the unique characteristics of each situation. It emphasizes that there is no one best way to manage and that it depends on various situational factors, such as the external environment, technology, organisational characteristics, characteristics of the manager, and characteristics of the subordinates. Contingency theorists often implicitly or explicitly criticize the classical approach for its emphasis on the universality of management principles; however, most classical writers recognized the need to consider aspects of the situation when applying management principles. The main features of contingency approach are:
Management is entirely situational. The application and effectiveness of any techniques is contingent on the situation.
Management action is contingent on certain action outside the system or subsystem as the case may be.
Management should, therefore, match or fit its approach to the requirements of the particular situation. To be effective management policies and practices must respond to environmental changes.
Organizational action should be based on the behaviour of action outside the system so that organization should be integrated with the environment.
Management should understand that there is no one hard way to manage.
However, it is an abstract depiction of the contingency model. In order to operationalise the contingency approach, managers need to know the alternatives for different situations. It may be operationalized as a ‘if then’ approach to management. The environment (If) is an independent variable where as management (when) is a dependent variable. In this model, a manager has to take four sequential steps:
Analyze and understand the situation,
Examine the applicability or validity of different principles and techniques to the situation at hand,
Make the right choice by matching the techniques to the situations,
Implement the choice.
2. (a) What are the indicators of Power? Discuss the various ways of uses and outcome of Power.            6+10=16
(b) Discuss the type of extent of authorities you would prefer to delegate as a manager.                              16
3. (a) Discuss the determinants of Organisations give importance in understanding human behaviour?   8+8=16
(b) “Theory X and Theory Y are concerned with the nature of people”. How does the job situation affect the application of this theory? What are its implications?                           16
Ans: Doughlas McGregor introduced these two theories i.e., Theory X and Theory Y, based on two distinct views of human beings. He proposed, at opposite extremes, two pairs of assumptions about human beings which he thought were implied by the actions of the mangers. Theory X deals with one extreme, based on one set of assumptions and Theory y deals with another extreme based on another set of assumptions. These theories are not based on any research, but according to McGregor, these are intuitive deduction.
Theory X: -This theory is based on the traditional approach to human behavior. The assumptions generally, held by the managers in their theory are: -
a)      The average human beings inherently dislike work and will try to avoid it, whenever possible
b)      A the employee are lazy, they must be controlled, coerced, threatened with punishment to achieve goals, to which they are indifferent
c)       Average employee will try to avoid responsibility and seek formal directions whenever possible, because they have relatively little ambition.
Theory y: -This approach assumes that management by direction and control is questionable method for motivating such people whose physiological and social needs have been satisfied and whose social; esteem and self actualization needs are becoming more important. For such people, Theory Y seems to be applicable, which is the contrast of Theory X. This theory makes the following assumptions about people:
a)      The average human being does not inherently dislike work. He can view work as natural or enjoyable as rest or play
b)      Employees will exercise self direction and self control in the attainment of the objectives to which they are committed
c)       Given proper working conditions, average person can learn to accept and even to seek responsibility
d)      Commitment to objectives is a function of the rewards associated with their achievement
e)      All the people are capable of making innovative and creative decision and the decision making is not the sole province of the people in management position.
4. (a) Make a comparison between Herzberg’s Two Factor Theory and Maslow’s Need Hierarchy Theory.            16
Ans: Difference between Maslow’s Need Hierarchy theory and Herzberg’s motivation Hygiene Theory
1. Meaning:
Maslow's theory is based on the concept of human needs and their satisfaction.
Hertzberg's theory is based on the use of motivators which include achievement, recognition and opportunity for growth.
2. Basis of Theory:
Maslow's theory is based on the hierarchy of human needs. He identified five sets of human needs (on priority basis) and their satisfaction in motivating employees.
Hertzberg refers to hygiene factors and motivating factors in his theory. Hygiene factors are dissatisfies while motivating factors motivate subordinates. Hierarchical arrangement of needs is not given.
3. Nature of Theory:
Maslow's theory is rather simple and descriptive. The theory is based long experience about human needs.
Hertzberg's theory is more prescriptive. It suggests the motivating factors which can be used effectively. This theory is based on actual information collected by Hertzberg by interviewing 200 engineers and accountants.
4. Applicability of Theory:
Maslow's theory is most popular and widely cited theory of motivation and has wide applicability. It is mostly applicable to poor and developing countries where money is still a big motivating factor.
Herzberg's theory is an extension of Maslow's theory of motivation. Its applicability is narrow. It is applicable to rich and developed countries where money is less important motivating factor.
5. Descriptive or Prescriptive
Maslow's theory or model is descriptive in nature.
Herzberg's theory or model is prescriptive in nature.
6. Motivators
According to Maslow's model, any need can act as motivator provided it is not satisfied or relatively less satisfied.
In the dual factor model of Hertzberg, hygiene factors (lower level needs) do not act as motivators. Only the higher order needs (achievement, recognition, challenging work) act as motivators.
(b) What do you mean by Control? Discuss about the behavioural implications of Control.             6+10=16
5. (a) What is Organisational Effectiveness? Explain the various approaches or models of organisational effectiveness. 6+10=16
(b) How do you distinguish between Formal and Informal Communication? Explain how barriers to communication can be overcome.                                          8+8=16
Ans: Difference between Formal and Informal Communication Channel
Formal Communication
Informal Communication
01. Rules
In Formal communication, Organizational rules are strictly followed.
It does not generally follow the rules of organization
02. Recognition
Such communication requires official’s recognition.
In informal communication, It does not require any official’s recognition.
03. Flexibility
It is inflexible in nature as it cannot be changed when desired.
Being flexible, It can be changed easily.
04. Secrecy
Such Communication is not free and open to all. So, Secrecy is maintained here.
It is free and open to all, So it is very difficult to maintain secrecy here. i.e. Grapevine communication which spread informally. 
05. Time & Cost
It follows various rules of organization. So, It requires much time and cost.
Informal communication does not bother for the formalities of organization and therefore it requires less time and cost.
06. Record Keeping
This type of communication involves written procedure, So record can be kept in formal communication.
Permanent record is impossible here because almost nothing is written here.
07. Errors or Mistakes
Very careful attention is given here in encoding the message and sending the message through formal way. Due to this seriousness, there is less chance of placing mistakes or errors.
It is personal in nature and therefore less attention is involved which can cause many errors or mistakes.
08. Compulsion
It is bound to follow the formal rules of communication.
There is no pressure here to follow any rules.
09. Necessity
Formal communication is necessary to achieve organizational goal.
Informal communication is necessary to improve personal relation.
10. Delegation or Authority
Authority can be delegated through formal communication.
Authority cannot be delegated through such communication.
Steps to overcome the barriers of communication in an organization
In order to remove barriers to communication an open door communication policy should be prepared and followed by managers at all levels. The superiors in the organization must create an atmosphere of confidence and trust in the organization so that the credibility gap may be narrowed down. Major efforts in this direction are:
1.       Two-way communication: The organization’s communication policy should provide for a two-way traffic in communication upwards and downwards. It brings two minds closer and improves understanding between the two parties the sender and the receiver. There should be no communication gap.
2.       Strengthening Communication Network: The communication network should be strengthened to make communication effective. For this purpose the procedure of communication should be simplified, layers in downward communication should be reduced to the minimum possible. Decentralization and delegation of authority should be encouraged to make information communication more efficient.
3.       Promoting Participative Approach: The management should promote the participative approach in management. The subordinates should be invited to participate in the decision making process. It should seek cooperation from the subordinates and reduce communication barriers.
4.       Appropriate Language: In communication certain symbols are used. Such symbols may be in the form of words, pictures and actions. If words are used, the language should be simple and easily comprehensible to the subordinates. Technical and multi-syllable words should, as far as possible be avoided. The sender must use the language with which the receiver is familiar.
5.       Credibility in Communication: One criterion of effective communication is credibility. The subordinates obey the orders of their superior because they have demonstrated through their actions that they are trustworthy. They must practice whatever they say. The superior must also maintain his trust worthiness. If the superior is trusted by the subordinates, communication will be effective.
6.       Good Listening: A communicator must be a good listener too. A good manager gives his subordinates a chance to speak freely and express their feelings well before him. The manager also gets some useful information for further communication and can also have a better understanding of the subordinates needs, demands etc.
7.       Selecting on Effective Communication Channel: To be effective the communication should be sent to the receiver through an effective channel. By effective channel mean that the message reaches its destination in time to the right person and without any distortion, filtering or omission.
8.       Preventing Predictable Decision Making Errors: Predictable errors in decision making are preventable errors. And a few simple techniques can help in clear of the most common wrong turns in decision making.

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