Wednesday, September 18, 2019

M.Com Previous Year Solved Papers: Organisational Behaviour' 2015 (August - Incomplete)

2015 (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) Discuss the various types of organisation. To what extent sound organisation helps in effective management? 9+7=16
Ans: TYPOLOGIES OF ORGANISATION

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.
Importance of Organising in effective management
Organising is the fundamental activity of management.  It is necessary for management to mobilize men machinery money and materials or resources for achieving organisational objectives.  Organising provides basis for other functions of management, hence scientifically designed organisation helps manager to function efficiently and effectively.  The importance of organisation may be explained as follows –
a)      Efficiency of Management: A Good organisation helps in making optimum use of available resources for achieving organisational objectives, increasing efficiency of management.
b)      Facilities Administration: A properly designed and balanced organisation facilitates both management and operation of the enterprise.
c)       Facilitates growth and diversification: On account of sound organisational structure growth and diversification can be successfully achieved for improving competitive strength of the organisation.
d)      Facilitates Technological progress: Sound organisational structure is useful for coping with technological changes which have become inevitable under modern conditions.
e)      Encourages healthy human relations: Scientific and balanced organisational structure when manned by right type of people tends to motivate people through job satisfaction that promotes healthy human relations in the organisation.  It helps maintaining morale at a higher level.
f)       Stimulates initiative and creativity: Sound organisation stimulates creative thinking and initiative by providing opportunities to experiment with new ideas for developing new ways of doing things.
g)      Reduction in work load of top management: Sound organisation stimulates creative thinking and initiative by providing opportunities to experiment with new ideas for developing new ways of doing things.
h)      Smooth direction: In sound organisation right men are placed at right place hence direction tends to become smooth and effective.
i)        Easy communication: Every organisation has its own channels or methods of communication.  Effective communication helps in effective management..
j)        Integration of individual efforts to achieve organisational goals: The functions, duties and responsibilities of the different departments are clearly defined which helps in achieving organisational goals.
k)      Effective control over employees: Each subordinate should have only one superior. There should not be dual subordination. It helps in effective control over the employees.
Or
(b) What are the various approaches to organisation analysis? What are the components involved in systems analysis? 8+8=16
Ans: Various approaches to organisation analysis
a) THE BEHAVIORAL Or SITUATIONAL APPROACH: The behavioral approach of management thought developed, in part, because of perceived weaknesses in the assumptions of the classical approach. The classical approach emphasized efficiency, process, and principles. Some felt that this emphasis disregarded important aspects of organisational life, particularly as it related to human behavior. Thus, the behavioral approach focused on trying to understand the factors that affect human behavior at work.
(i) Human Relations: The Hawthorne Experiments began in 1924 and continued through the early 1930s. A variety of researchers participated in the studies, including Elton Mayo. One of the major conclusions of the Hawthorne studies was that workers' attitudes are associated with productivity. Another was that the workplace is a social system and informal group influence could exert a powerful effect on individual behavior. A third was that the style of supervision is an important factor in increasing workers' job satisfaction.
(ii) Behavioral Science: Behavioral science and the study of organisational behavior emerged in the 1950s and 1960s. The behavioral science approach was a natural progression of the human relations movement. It focused on applying conceptual and analytical tools to the problem of understanding and predicting behavior in the workplace. The behavioral science approach has contributed to the study of management through its focus on personality, attitudes, values, motivation, group behavior, leadership, communication, and conflict, among other issues.
b) THE QUANTITATIVE APPROACH: The quantitative approach focuses on improving decision making via the application of quantitative techniques. Its roots can be traced back to scientific management.
(i) Management Science: Management science (also called operations research) uses mathematical and statistical approaches to solve management problems. It developed during World War II as strategists tried to apply scientific knowledge and methods to the complex problems of war. Industry began to apply management science after the war. The advent of the computer made many management science tools and concepts more practical for industry
 (ii) Production And Operations Management: This approach focuses on the operation and control of the production process that transforms resources into finished goods and services. It has its roots in scientific management but became an identifiable area of management study after World War II. It uses many of the tools of management science. Operations management emphasizes productivity and quality of both manufacturing and service organisations. W. Edwards Deming exerted a tremendous influence in shaping modern ideas about improving productivity and quality. Major areas of study within operations management include capacity planning, facilities location, facilities layout, materials requirement planning, scheduling, purchasing and inventory control, quality control, computer integrated manufacturing, just-in-time inventory systems, and flexible manufacturing systems.
c) SYSTEMS APPROACH: 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.
d) 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.

2. (a) “Authority is the legitimized power that is linked to each position within the organisation.” Discuss.        16
Or
(b) When does a bureaucratic organisation suffer from serious problems? Suggest whether it is feasible to design an organisation free from bureaucratic elements.                                  9+7=16
3. (a) Compare and contrast theory “X” and theory “Y”. What are the implications of these theories on managerial practices?                                           9+7=16
Ans: McGregor’s Theory X and Y
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.
Or
(b) Define Perception. Explain the perceptual process. What is the influence of perception on behaviour? 6+10=16
Ans: Perception: Perception is an important mediating cognitive process. Through this complex process, people make interpretations of the stimulus or situation they are faced with. Both selectivity and organization go 'into perceptual, interpretations. Externally, selectivity is affected by intensity, size, contrast, repetition, motion and novelty and familiarity. Internally, perceptual selectivity is influenced by the individual's motivation, learning and personality. After the selective process filters the stimulus situation, the incoming information is organized into a meaningful whole.
Individual differences and uniqueness are largely the result of the cognitive processes. Although there arc a number of cognitive processes, it is generally recognized that the perceptual process is a very important one. It is a process that takes place between the situation and the behaviour and is most relevant to the study of organizational behaviour. For example, the observation that a department head and a subordinate may react quite differently to the same top management directive can be better understood and explained by the perceptual process.
In the process of perception, people receive many different kinds of information through all five senses, assimilate them and then interpret them. Different people perceive the same information differently.
Perception plays a key role in determining individual behaviour in organizations. Organizations send messages in a variety of forms to their members regarding what they are expected to do and not to do. In spite of organizations sending clear messages, those messages are subject to distortion in the process of being perceived by organizational members. Hence, managers need to have a general understanding of the basic perceptual process.
Basic Perceptual Process
Perception is influenced by characteristics of the object being perceived, by the characteristics of the person and by the situational processes.
a)      Characteristics   of the   object   include   contrast, intensity, movement, repetition and novelty.  
b)      Characteristics of the person include attitude, self-concept and personality.
The details of a particular situation affect the way a person perceives an object; the same person may perceive the same object very differently in different situations. The processes through which a person's perceptions are altered by the situation include selection, organization, attribution, projection, stereotyping process, and the halo effect process. Among these, selective perception and stereotyping are particularly relevant to organizations.
a) Selective Perception: Selective perception is the process of screening out information that we are uncomfortable with or that contradicts our beliefs. For example, a manager has a very positive attitude about a particular worker and one day he notices that the worker seems to be goofing up. Selective perception may make the manager to quickly disregard what he observed. For example, a manager who has formed a very negative attitude about a particular worker and he happens to observe a high performance from the same worker. In this case influenced by the selective perception process he too will disregard it. In one sense, selective perception is beneficial because it allows us to disregard minor bits of information. But if selective perception causes managers to ignore important information, it can become quite detrimental.
b) Stereotyping: Stereotyping is the process of categorizing or labeling people on the basis of a single attribute. Perceptions based on stereotypes about people's sex exist more or less in all work places. Typically, these perceptions lead to the belief that an individual's sex determines which tasks he or she will be able to perform. For example, if a woman is sitting behind the table in the office, she will be very often, perceived as a clerk and not an executive at first. But it would induce holding an exactly opposite assumption about a man. Stereotyping consists of three steps: identifying categories of people (like women, politician), associating certain characteristics with those categories (like passivity, dishonesty respectively) and then assuming that any one who fits a certain category must have those characteristics. For example, if dishonesty is associated with politicians, we are likely to assume that all politicians are dishonest.
4. (a) Define Motivation. Indicate how management can successfully motivate people taking clues from Vroom’s Valence Expectancy model.                                         6+10=16
Ans: The word motivation is derived from ‘motive', which means an active form of a desire, craving or need that must be satisfied. Motivation is the key to organisational effectiveness. The manager in general has to get the work done through others. These 'others' are human resources who need to be motivated to attain organisational objectives.
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to action."
According to Berelson and Steiner “A motive is an inner state that energizes activates, or moves and directs or channels behavior goals".
According to Lills "It is the stimulation of any emotion or desire operating upon one's will and promoting or driving it to action".
According to Encyclopedia of Management  "Motivation refers to the degree of readiness of an organism to pursue some designated goals and implies the determination of the nature and locus of force inducing a degree of readiness."
Vroom’s Expectancy  theory
Victor Vroom made an important contribution to the understanding of the concept of motivation and the decision process that people use to determine how much effort they will expend on their jobs. He said that a person’s motivation towards an action at any time would be determined by an individual’s perception that a certain type of action would lead to a specific outcome and his personal preference for this outcome. This model is based on the belief that motivation is determined by the nature of the reward expect to get an a result of their job performance. There are three variable in Vroom’s model given in the form of an equation. Since the model is a multiplier, all the three variable must have high positive value to imply motivated performance choices. If any of the variable is zero the probability of motivated performance tends to be zero.
MOTIVATION = VALENCE X EXPECTANCY X INSTRUMENTALITY
All these three variable are explained as follows:
1)      Valence: Valence means the attraction (or repulsion) of an outcome to the individual. Whenever an individual has preference for a reward valence is the strength of that preference.
2)      Expectancy: Expectancy is also referred to as the Effort-Performance Probability. It refers to the extent to which the person believes his efforts will lead to the first level outcome i.e. completion of the task.
3)      Instrumentality (Performance-Reward Probability): Instrumentality refers to the probabilities attached by the individual to each possible performance-outcome alternative just as the individual previously assigned probabilities to various levels of effort leading to different levels of performance (expectancy).
The plus points of this theory are:
a)      The expectancy model is highly useful in understanding organizational behaviour. It can improve the relationship between the individual and the organizational goals. This model explains how individuals’ goals influence his efforts and like need-based models reveal that individual behaviour is goal oriented.
b)      The expectancy theory is a cognitive theory, which values human dignity. Individuals are considered rational human beings who can anticipate their future on the basis of their beliefs and expectations.
c)       This theory helps the managers in looking beyond what Maslow and Herzberg implied. According to him motivation does not mean satisfying the unsatisfied needs. The managers must make it possible for an employee to see that effort can result in appropriate need satisfying rewards.
Despite these plus points, there are some drawbacks of Vroom’s expectancy model as given below:
a)      Vroom’s theory is difficult to research and apply in practice. This is evident by the fact that there have been a very few research studies designed specifically to test Vroom’s theory.
b)      This theory assumes man to be a rational human being who makes all the decisions consciously. But there are numerous instances where decision are taken with no conscious thought. This is particularly true for routine jobs.
c)       Although, it is an important theory of motivation but it is quite complex. Many managers, in actual organizational situations, do not have the time or sources to use a complex system on the job.
Or
(b) Explain the nature and functions of leadership based on the following formula: L = f (1, f, s). Also suggest measures of effective leadership.                     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.
Functions of Leadership
The important functions of leadership:
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.
Essentials of good leadership
1.       Patience: Patience is the capacity to face difficult situations, hardships or inconvenience without making a single complaint. A good leader must show patience while waiting for expected results, facing difficult situations and taking important decisions. He must avoid taking hasty decisions and actions.
2.       Good Personality: A good personality is a combination of physical, mental and social qualities. Good personality helps a leader to influence his followers. Attractive physique and good manners add an advantage to the leader's personality.
3.       Self-confidence: A good leader must have self confidence. This quality is necessary for facing challenging situations and for solving problems easily and effectively.
4.       Human Skills: A good leader must have essential social and human skills. That is, he must understand people. This quality is necessary for dealing with different types of persons and social groups.
5.       Judgment skills: A good leader should be able to examine problems in right perspective. His judgment and decision making abilities should be superior to others. He should be able to form opinions and judge based on facts and not be prejudiced
6.       Communication skills: A good leader should be able to communicate the goals and procedures of the organisation clearly, precisely and effectively to the subordinates. Only then will it be possible for him to convince, persuade and stimulate subordinates to action.
7.       Listening skills: People tend to avoid a leader who does not listen. Hence a good leader in one who can listen to other peoples problems. He should be able to create a culture whereby people can be frank with him and give him information and also give him feedback about himself, which can help him to improve himself.
8.       Inspiring skills: A good leader should be able to inspire people to deal with the “why” question. He should not just command and control but be able to lead the people and get them involved to work together as a team.
9.       Administrative Skills: A good leader must have an administrative ability. This means, he must be able to get the work done through his followers. He must know how to plan, organize and control the work of his followers.
10.   Discipline: A good leader must be a disciplined person. This means he must have respect for the rule and regulations of the organisation. This is because his followers will follow his example.
11.   Initiative: A good leader must always take an initiative. This means he should do the right thing at the right time without being told by others. He must be able to construct and implement his own plan.
12.   Intelligence: A good leader must be smart and intelligent. That is, he should have a good educational background and sound technical knowledge. He should be more intelligent than his followers. If not, his followers will not respect him. This will have a bad effect on his performance.
13.   Innovative:  A good leader must have an art of innovation. That is, he must have a good imagination and visualization skills. He must develop new ideas and tactics to solve problems. He must combine the new ideas with the old ideas.

5. (a) What criteria are used for judging the effectiveness of an organisation? How does the degree of integration of goals affect organisational accomplishment?                                  8+8=16
Or
(b) “Persistence to change is a normal part of the process of change”. Discuss. What techniques would you use in overcoming such resistance?                                      9+7=16
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