Wednesday, September 18, 2019

M.Com Previous Year Solved Papers: Organisational Behaviour' 2013 (August - Incomplete)


2013 (August)
COMMERCE
Paper: 102
(Organisational Behaviour and Theory)
Full Marks – 80
Time – Three Hours
The figures in the margin indicate full marks for the questions.
Answer all the questions.
1. (a) What is meant by “organising”? Briefly explain the steps involved in the organising process.        4+12=16
Ans: Introduction of Organisation and organising
The term 'Organisation' 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 organisation structure.
On the other hand, Organising or Organizing in management refers to the relationship between people, work and resources used to achieve the common objectives (goals).

Definitions
In the words of
Allen – “An organisation 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 – “Organisation is the form of every human association for the attainment of a common purpose.”
Koontz & O’Donnel – Organising 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 organisation structure.
Steps or Process of Organising
Organization is the process of establishing relationship among the members of the enterprise. The relationships are created in terms of authority and responsibility. To organize is to harmonize, coordinate or arrange in a logical and orderly manner. Each member in the organization is assigned a specific responsibility or duty to perform and is granted the corresponding authority to perform his duty. The managerial function of organising consists in making a rational division of work into groups of activities and tying together the positions representing grouping of activities so as to achieve a rational, well coordinated and orderly structure for the accomplishment of work. The various steps involved in this process are:
a) Determination of Objectives: It is the first step in building up an organization. Organization is always related to certain objectives. Therefore, it is essential for the management to identify the objectives before starting any activity. Organization structure is built on the basis of the objectives of the enterprise. That means, the structure of the organization can be determined by the management only after knowing the objectives to be accomplished through the organization. This step helps the management not only in framing the organization structure but also in achieving the enterprise objectives with minimum cost and efforts.
b) Enumeration of Objectives: If the members of the group are to pool their efforts effectively, there must be proper division of the major activities. The first step in organising group effort is the division of the total job into essential activities. Each job should be properly classified and grouped. This will enable the people to know what is expected of them as members of the group and will help in avoiding duplication of efforts. For example, the work of an industrial concern may be divided into the following major functions – production, financing, personnel, sales, purchase, etc.
c) Classification of Activities: The next step will be to classify activities according to similarities and common purposes and functions and taking the human and material resources into account. Then, closely related and similar activities are grouped into divisions and departments and the departmental activities are further divided into sections.
d) Assignment of Duties: Here, specific job assignments are made to different subordinates for ensuring a certainty of work performance. Each individual should be given a specific job to do according to his ability and made responsible for that. He should also be given the adequate authority to do the job assigned to him.
e) Delegation of Authority: Since so many individuals work in the same organization, it is the responsibility of management to lay down structure of relationship in the organization. Authority without responsibility is a dangerous thing and similarly responsibility without authority is an empty vessel. Everybody should clearly know to whom he is accountable; corresponding to the responsibility authority is delegated to the subordinates for enabling them to show work performance. This will help in the smooth working of the enterprise by facilitating delegation of responsibility and authority.
Or
(b) What is the contingency approach to organisation? Explain its salient features.        9+7=16
Ans: Contingency Approach to Management: Another important approach which has arisen because of the inadequacy of the Quantitative, Behavioural and System Approach to management is the Contingency Approach. Pigors and Myers propagated this approach in 1950. They analyzed the relationship between organization and environment. They concluded that managers must keep the functioning of an organization in harmony with the needs of its members and the external forces. Management is situational and lies in identifying the important variables in a situation. The basic theme of contingency approach is that organizations have to cope with different situations in different ways. There cannot be particular management action which will be suitable for all situations. The management must keep the functioning of an organization in harmony with the needs of its members and the external forces.
According to Kast and Rosenzweig, “The contingency view seeks to understand the interrelationships within and among sub-system as well as between the organization and its environment and to define patterns of relationships or configurations of variables. Contingency views are ultimately directed towards suggesting organizational designs and managerial actions most appropriate for specific situations”.
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) Explain the term Departmentation. Examine the factors that govern the choice of any particular basis of departmentation.                                           6+10=16
Ans: Departmentation: The process of dividing activities into units and subunits is referred to as departmentation. The term departmentation is used in a generic sense n is not only confined to the creation of such units as are called departments, but it includes divisions, sections and jobs also.
Dividing up work calls or identification of total activities and classification of such activities into units and subunits. There are three bases for primary grouping of activities at the second level of the organisation just below the top level. Units at the second level are commonly called departments when business functions are adopted as the pattern of grouping activities. Such units go by the name of divisions when either products manufactured or territories are adopted as the means of classifying activities.
There are, however, two approaches to departmentation- top down and bottom-up approaches. In the top-down approach, activities are divided step by step downward form the chief executive's job to the operating jobs. In the bottom-up approach, the division of activities is carried on in a reverse order. Starting form operating jobs, there arise sections form combining some correlated jobs, departments from combining some sections and finally the chief executive position form putting departments together. While the top-down approach gives emphasis on co-ordination and managerial action, the bottom-up approach gives emphasis on co-ordination and managerial action, the bottom-up approach focuses attention on employee performance. Although the top-down approach is easy for understanding the departmentation process, both the approaches are utilized in actual practice
Bases or Methods of departmentation
Departmentation provides motivation by developing feeling of autonomy to the extent possible. There are several bases of departmentation. The more commonly used bases are function, produt, territory, process, customer, time etc. Some of these bases are internal-operation – oriented like function, process, time while others like product, territory and customer are output-oriented.
a)      Functional Departmentation: The grouping of common or homogeneous activities to form an organisation unit is known as functional departmentation. Functional departmentation is the most widely used basis for organising activities and is present almost in every large organisation at some level.
b)      Functional departmentation is most commonly used because it offers certain advantages which include advantages of specialization, ensuring performance of activities necessary for the achievement of organisational objectives, elimination of un-necessary activities, easier control over functions, easier way for pinpointing training need of the managers and maintaining the relative importance of functions in the organisation.
c)      Product wise departmentation: Product departmentation involves the grouping together of all activities necessary to manufacture a product or product line. Product departmentation is preferred for product expansion and diversification when manufacturing and marketing characteristics of each product are of primary concern. Product departmentation offers several advantages places attention to product lines, reduces problems of coordination for different products, provides opportunities for further diversification and expansion of organisation and provides product specialization necessary for managers specially when each product is different from other.
d)      Territory – wise Departmentation: Territorial or geographical departmentation is specially useful to large-sized organisations having activities which are physically  or geographically spread such as banking, insurance, transportation etc., Territorial departmentation provides certain efficiency in operation. Local factors such as customers, culture, styles, preferences etc., always affect organisational functioning.
e)      Production processes – wise departmentation: In  process departmentation, processes involved in production or various types of equipments used are taken as basis for departmentation. When the production activities involve the use of several distinctive processes, these can be used as the base for grouping of activities. Such activities may be textiles, oil production etc., The process are set in such a way that a series of operations is feasible making operations economic. It provides advantages of specialization required at each level of total processes, maintenance of plant can be done in better way, and manpower can be utilized effectively.
f)       Customer – wise departmentation: Customer based departmentation is  basically market – oriented in which departments are created around the markets served or around marketing channels. The basic idea of this departmentation is to provide services to clearly identified groups of customers. Each group of customers has different purchase behavior, payment schedule, demand pattern etc., Therefore they can be attracted to the organisation’s business by satisfying them by providing services, payment schedule demand pattern etc.
Choice of bases for departmentation Or DETERMINANTS OF DEPARTMENTATION
The selection of bases for departmentation involves a consideration of the relative advantages of each base for the organisation. Ideally speaking, a suitable basis of departmentation is one which facilitates the performance of organisational functions efficiently and effectively so that its objective are achieved.
a)      Specialization: While assigning activities into departments, care must be taken to ensure that the benefits of specialization are achieved.
b)      Control: One of the primary aims of departmentation is to facilitate control. Departments should be so created as to fix clear responsibilities so as to enable effective control.
c)       Coordination: Coordination involves that all the related activities are performed in a way that their performance is synchronized so that each activity contributes to others.
d)      Economy: A balance should be maintained between the cost of creating a department and its contribution. The existence of a department is desirable only when it contributes more than its cost.
e)      Focus on Result: Those activities which contribute to the achievement to these results should be given proper attention.
f)       Human Considerations: Departments should be created on the basis of availability of personnel, their aspirations and value systems, informal work groups and attitudes of people towards various forms of organisation structure.
g)      Emphasis on Local Conditions: while assigning activities proper emphasis should be given to local conditions at the places concerned, viz. the personality of the individuals who may be given the responsibilities, the nature of informal relationship among the people, the attitude of the people, etc.
h)      Economy: Another important factor to be considered while creating separate departments is the expense involved and economy in its operations.
i)        Key Activities: there are certain activities which are very crucial. Such activities should be placed in separate divisions.

Or
(b) Explain the sources of authority and discuss the reasons for delegating the authority.                              8+8=16
3. (a) Describe the basic process by which learning takes place. Is the use of reinforcement sufficient to change behaviour effectively?                                        9+7=16
Or
(b) State and explain the differences between the theory X and theory Y.                          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) Bring out the essence of Porter and Lawer theory of motivation. Do you think that the model is comprehensive? Justify your answer with examples.                                         16
Or
(b) “Good leadership is an integral part of effective direction.” Discuss the statement.                                16
Ans: Leadership is the ability to build up confidence and deal among people and to create an urge in them to be led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations may demand different types of leadership.
Leadership means influencing the behaviour of the people at work towards realizing the specified goals. It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.
Koontz and 0' Donnel “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal”.
George R Terry “Leadership is the activity of influencing people to strive willingly for group objectives”.
Nature and Characteristics of Leadership:
                An analysis of the definitions cited above reveals the following important characteristics of leadership.
a)      Leadership is a personal quality.
b)      It exists only with followers. If there are no followers, there is no leadership?
c)       It is the willingness of people to follow that makes a person a leader.
d)      Leadership is a process of influence. A leader must be able to influence the behaviour, attitude and beliefs of his subordinates.
e)      It exists only for the realization of common goals.
f)       It involves readiness to accept complete responsibility in all situations.
g)      Leadership is the function of stimulating the followers to strive willingly to attain organisational objectives.
h)      Leadership styles do change under different circumstances.
i)        Leadership is neither bossism nor synonymous with management.
Significance of Leadership
The importance of leadership are as follows:
1.       It improves motivation and morale: Through dynamic leadership managers can improve motivation and morale of their subordinates. A good leader influences the behaviour of an individual in such a manner that he voluntarily works towards the achievement of enterprise goals.
2.       It acts as a motive power to group efforts: Leadership serves as a motive power to group efforts. It leads the group to a higher level of performance through its persistent efforts and impact. On human relations.
3.       It acts as an aid of authority: The use of authority alone cannot always bring the desired results. Leadership acts as an aid to authority by influencing, inspiring, and initiating action.
4.       It is needed at all levels of management: Leadership plays a pivotal role at all levels of management because in the absence of effective leadership no management can achieve the desired results.
5.       It rectifies the imperfectness of the formal organizational relationships: No organizational structure can provide all types of relationships and people with common interest may work beyond the confines of formal relationships. Such informal relationships are more effective in controlling and regulating the behaviour of the subordinates. Effective leadership uses these informal relationships to accomplish the enterprise goals.
6.       It provides the basis of co-operations: Effective leadership increases the understanding between the subordinates and the management and promotes co-operation among them.

5. (a) What criteria are used for judging the effectiveness of an organisation? How does the degree of integration of goals affect organisational accomplishment?                                                9+7=16
Or
(b) Write short notes on any two of the following:                     8+8=16
1)      Communication process.
2)      Communication networks.
3)      Characteristics of grapevine.
4)      Formal communication.
1) Process of Communication
The process of communication is the inter relationship between several independent components. It consists of a chain of related actions and reaction which together result in exchange of information. In order to understand the process of communication, it is necessary to describe each of these components. A model of communication process is as follows:-
a)      Sender: The sender is the first component of the process of c communication. The sender may be a speaker, a writer or any other person. He is the one who has a message and wants it to share it for some purpose.
b)      Ideation: Ideation is the preliminary step in communication where sender creates an idea to communicate. This idea is the content and basis of the message to be communicated. Several ideas may generate in the sender’s mind. The sender must identify, analyze and arrange the ideas sequentially before transmitting them to the receiver.
c)       Message: Message is the heart of communication. It is what the sender wants to convey to the receiver. It may be verbal i.e. written or spoken or non verbal i.e. body language, space language, etc.
d)      Encoding: To encode is to put an idea into words. In this step the communicator organizes his ideas into a series of symbols or words which will be communicated to the intended receiver. Thus the ideas are converted into words or symbols. The words and the symbols should be selected carefully, it should be understandable and most of all it should be suitable for transmission and reception.
e)      Transmission: Next in the process of communication is transmission of the message as encoded messages are transmitted through various media and channels of communication connects the sender and the receiver. The channel and media should be selected keeping in mind the requirement of the receiver, the communication to be effective and efficient the channel should be appropriate.
f)       Receiver: Receiver is the person or group for whom the message is meant. He may be a listener, a reader or a viewer. Any neglect on the part of the receiver may make the communication ineffective. Receiver is thus the ultimate destination of the message. It the message does not reach the receiver the communication is said to be incomplete.
g)      Decoding: Decoding means translation of symbols encoded by the sender into ideas for understanding. Understanding the message by receiver is the key to the decoding process. The message should be accurately reproduced in the receiver’s mind. If the receiver is unable to understand the message correctly the communication is ineffective.
h)      Behaviour of the receiver: It refers to the response by the receiver of the communication received from the sender. He may like to ignore the message or to store the information received or to perform the task assigned by the sender. Thus communication is complete as soon as the receiver responses.
i)        Feedback: Feedback indicates the result of communication. It is the key element in the communication and is the only way of judging the effectiveness of communication. It enables the sender to know whether his message has been properly interpreted or not. Systematic use of feedback helps to improve future message. Feedback, like the message could be oral, written or non verbal. It has to be collected from the receiver.
2) Channel of communication/Communication Networks
A channel means a path or a way. Thus a channel of communication is the path or way through which information is transmitted throughout the organization. It is the route through which the message flows from the sender to the receiver.  Human beings in an organization are inter-related to each other. They are related both formally as well as informally. These relationships are maintained by means of communication. Therefore there exists in an organization two channels of communication: -
1. Formal channel of communication
2. Informal channel of communication
Various forms of Formal channel of communication
Formal Channel of Communication are classified into following forms:
1. Downward communication: Communication that flows from the top level of the organization to the bottom level along with the scalar chain is known as downward communication. Example for such type of communication are orders, instructions, rules, policies, programs and directives etc. it specifies the extent of the subordinates authority and their responsibility.
2. Upward Communication: Upward communication is just the opposite of downward communication. In this communication system, the message is transmitted from the bottom of the organization upward to the top of the organization through the middle managers along with the line. Usually this includes workers grievances, suggestions and reactions. This communication system was not appreciated by the superiors. But it has assured importance in modern times and is considered to be a main source of motivating employees.
3. Horizontal communication: The flow of information between departments or people of equal level in an organizational structure may be termed as horizontal or lateral communication. The two departments may be under the same superior or may have different heads. Such communication may be written or oral. The main object of lateral communication is to co-ordinate the efforts of different departments or persons.
4. Diagonal communication: Diagonal communication is between people who are neither in the same department nor on the same level of organizational structure. It cuts across departmental lines. It generally takes place when members cannot communicate effectively through other channels. 
These upward, downward, horizontal or diagonal communications may be oral, written, informal or gestural.
Various forms of Informal channel of communication
Keith Davis has identified four different networks for transmitting information via the grapevine:-
1. Single Strand Chain: In single strand chain one person communicate with only one person. In this the first person tells something to the 2nd, the 2nd to the 3rd person, the 3rd to 4th person and so on till the message is communicated to all.
2. Gossip Chain: In gossip chain one person communicates with many persons. As soon as a person gets some interesting non jog related information he conveys the same to every other person.
3. Probability chain: In probability chain communication takes place between many persons. There information is conveyed from one person to another irrespective of the fact that they are related to each other or not whether formally or informally. In this the information passes at random.
4. Cluster Chain: In cluster chain one person communicates with many other persons but selectively. In this one person may convey information to 4 or 5 persons whom he knows very well and can trust out of these 4-5 persons one or two may again pass on the information. As the number grows larger and larger and information staler, it gradually dies out. This is knows as cluster chain because one person while conveying message may from cluster.

3) Grapevine/Informal Communication: Communication arising out of all those channels of communication that fall outside the formal channels is known as informal communication. Informal communication does not flow lines of authority as is the case of formal communication. It arises due to the personal needs of the members of an organization. At times, in informal communication, it is difficult to fix responsibility about accuracy of information. Such communication is usually oral and may be covered even by simple glance, gesture or smile or silence.
Informal communication is known as grapevine. Grapevine arises because of the desire of the people to communicate without following the formal channel of communication. It follows no setlines, nor any definite rules, but spreads like grapevine, in any direction anywhere.
Informal or grapevine communication has the following characteristics:
(1) Formation through Social Relations: This communication is born out of social relations who mean that it is beyond the restrictions of the organisation. No superior-subordinate relationship figures therein. A more sociable superior can gather much information through this channel.
(2) Two types of Information: Through this communication, information about the work and the individual can be collected.
(3) Uncertain Path: Since it is beyond the restrictions of the organisation, it follows no definite channel. Like a grapevine, it moves in a zigzag manner.
(4) Possibility of Rumour and Distortion: Responsibility for the true or false nature of communication does not lie on any individual and, therefore, not much attention is paid to its meaning while communicating. Consequently, the rumours keep floating.
(5) Quick Relay: Informal communication makes news spread like wildfire. Not only this, people start adding something of their own which sometimes changes the real meaning of the communication.
4) Formal Communication: Communication takes place through the formal channels of the organization structure along the lines of authority established by the management is called Formal Communication. It is that route of communication which is institutionally determined and is associated with status or position of the receiver and sender. The formal channels are deliberately related to ensure that accurate information flows smoothly and timely. Such communications are generally in writing and may take any of the forms; policy; manuals: procedures and rule books; memoranda; official meetings; reports, etc.
Characteristics: Following are the chief characteristics of the formal communication
(1) Written and Oral: Formal communication can both be written and oral. Daily works are handled through oral communication, while the policy matters require written communication.
(2) Formal Relations: This communication is adopted among those employees where formal relations have been established by the organisation. The sender and the receiver have some sort of organisational relations.
(3) Prescribed Path: The communication has to pass through a definite channel while moving from one person to another. For example, to convey the feelings of a worker to the manager, the foreman’s help has to be sought.
(4) Organisational Message: This channel is concerned with the authorised organisational messages only and the personal messages are out of its jurisdiction.
(5) Deliberate Effort: This channel of communication is not established automatically but effort has to be made for its creation. It is decided keeping in view the objectives of the organisation.
Advantages of Formal Communication
Formal communication is required for any organization because it provides a list of below advantages:
1. Smooth Communication System: Formal communication moves through pre-determined channel and therefore everyone is aware for where and how to send the message. So, it does not face any problem to flow.
2. Increase in Efficiency: Such Communication increase overall efficiency of the management as organizational rules and procedures are required to be followed always.
3. Permanent Record: All formal communication like letters, report & memos are kept permanently. So it is helpful in future decision making.
4. Discipline: This communication creates the discipline in the mind of employees in any organization.
Disadvantages of Formal Communication
In formal communication, there exists a set of rules and regulation which must be maintained. And for this, there are grown some disadvantages of Formal communication too. In spite of enjoying some advantages of formal communication, it suffers from the following limitations:
1. Authoritarian System: Formal communication states clear relationship between upper level management and lower level management. When there is a downward communication, there is an authoritarian tone to dominate lower level employees.
2. Inflexibility: It is a rigid form of communication as make up or change cannot be considered easily when required.
3. Costly: This sort of communication maintains all formalities of communication for which it involves more cost.
4.  Wastage of Time: Formal communication process passes through various stages or levels of an organization and therefore requires more time to reach to its destination. This is ultimately wastage of time.

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