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.
Post a Comment
Kindly give your valuable feedback to improve this website.