2014 (August)
COMMERCE
Course: 102
(Organisational Behaviour and Theory)
Full Marks: 80
Time: 3 hours
The figures in the margin indicate full
marks for the questions.
1. (a) What is the
systems approach to organisation? What are the components involved in systems
analysis? 7+9=16
Ans: System
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.
In simple words, a system may be defined as a
set a interrelated and interdependent parts forming an organized unit or
entity. These parts are known as sub-systems which interact with each other and
are subject to change. They are interrelated as well as interdependent. Hence,
changes in any sub-system lead to changes in others. Any working organisation
may be said to have three sub-systems as follows:
1. Technical Sub-System It represents the formal relationships among
the members of an organisation.
2. Social Sub-System: It provides social satisfaction to members
through informal group relations.
3. Power Sub-System: It reflects the exercise of power or
influence by individuals and groups.
Critical Evaluation of system approach of
management
Systems theory has made the following
advantages
1. It
provides a manager a way of thinking about the job he has to managed and finds
an opportunity to him for looking it the organization as a whole and for
achieving overall effectiveness.
2. It
provides main focus to organizational efforts towards a direction which people
should move.
3. It
draws attention of managers to an important factor and that is the environment
in which an organization works. The interaction with the environment is
dynamic.
4. It
includes within it focus both micro and macro aspects of the organizations.
Hence it serves a multi-level and multi-dimensional approach.
5. It
implies that the modern manager should have analytical orientation should be
expert in motivating to achieve goals and open mandate to receive and respect
new ideas, i.e. creativity and innovation.
6. It
also implies that management education must seek to develop the ability to work
with and motivate others.
7. The
feed back mechanism provides and opportunity to rearrange organizations part
according to the change in the environment.
The system theories have been criticized on
the following grounds.
1. Systems
theory is not a complete explanation of the whole organizational system. It
does not explain how the sub-system of the specific organization is uniquely
related in a given environment.
2. The
conceptional framework for understanding organization provided by system theory
is too abstract.
3. It
does not really offer any new thing. Managers do understand interrelationship
between different parts and the influence of environment on organization and it
sub-systems.
Or
(b) Outline
Taylors scientific management and examine its relevance to management in the
present day business. 16
Ans: F.W. Taylor is one of the founders (the
other two are Max Weber and Henry Fayol) of classical thought/classical theory
of management. He suggested scientific approach to management also called
scientific management theory. Frederick Winslow Taylor well-known as the
founder of scientific management was the first to recognize and emphasis
the need for adopting a scientific approach to the task of managing an enterprise.
He tried to diagnose the causes of low efficiency in industry and came to the
conclusion that much of waste and inefficiency is due to the lack of order
and system in the methods of management. He found that the management
was usually ignorant of the amount of work that could be done by a
worker in a day as also the best method of doing the job. As a result,
it remained largely at the mercy of the workers who deliberately shirked work.
He therefore, suggested that those responsible for management should
adopt a scientific approach in their work, and make use of
"scientific method" for achieving higher efficiency. The scientific
method consists essentially of:
a)
Observation
b)
Measurement
c)
Experimentation and
d)
Inference.
He advocated a thorough planning of
the job by the management and emphasized the necessity of perfect understanding
and co-operation between the management and the workers both for the
enlargement of profits and the use of scientific investigation and knowledge in
industrial work. He summed up his approach in these words:
a)
Science, not rule of thumb
b)
Harmony, not discord
c)
Co-operation, not individualism
d)
Maximum output, in place of restricted output
e)
The development of each man to his greatest
efficiency and prosperity.
Concept
of Scientific Management
Scientific
Management may be defined as the scientific study and analysis of work,
scientific selection and training of employees, standardization and scientific
rate setting. It is an art of knowing exactly what a manager wants his workers
to do and seeing it that they do it in the best and cheapest way.
According to F.W.Taylor who is
regarded as the father of scientific management, “Scientific Management is the
art of knowing exactly what you want your men to do and seeing that they do it
in the cheapest way”.
Scientific management has the
following main objectives:
a) With the
use of standardized tools, methods, equipments, and development of workers
increasing the rate of production.
b) Reducing
the cost of production by using the different cost control techniques.
c) Improvement
in the quality of product through quality control and inspections.
d) To place
the right person at the right place.
e) Providing
the wages to the workers according to their efficiency.
Characteristics of Scientific
Management
a) Predetermined objectives: The objective of
every job is predetermined and in order to achieve that objective physical and
human resources are applied.
b) Predetermined plans: In order to achieve the
predetermined goal of every job, effective plans for the most appropriate use
of the available resources are prepared. Planning in this case is goal
oriented.
c) Scientific analysis of plans: The utility,
effectiveness and suitability of plans is tested and ascertained before it is
put in practical operation.
d) Set of rules: In order to implement the plans
a set of rules are made.
e) Work studies: Standardization of time, motion,
fatigue and work is done after careful time, motion, work & fatigue
studies, so that maximum output could be achieved at minimum sacrifice.
Advantages and criticism of scientific
management to the workers
Advantages
to the workers: Improved working conditions, Higher standard of living, Free
training, Interesting job, Incentive wage system
Criticism
of scientific management: Rigid Control, Monotonous work, Lack of
initiative, Exploitation, Lack of employment opportunities, Weak Unions.
Elements of Scientific Management: The
techniques which Taylor regarded as its essential elements or features may be
classified as under:
1. Scientific Task and Rate-Setting
(work study): Work study may be defined as the systematic, objective and
critical examination of all the factors governing the operational efficiency of
any specified activity in order to effect improvement. Work study includes.
(a) Methods Study: The
management should try to ensure that the plant is laid out in the best manner
and is equipped with the best tools and machinery. The possibilities of
eliminating or combining certain operations may be studied.
(b) Motion Study: It is a study
of the movement, of an operator (or even of a machine) in performing an
operation with the purpose of eliminating useless motions.
(c) Time Study (work measurement): The
basic purpose of time study is to determine the proper time for performing the
operation. Such study may be conducted after the motion study. Both time study
and motion study help in determining the best method of doing a job and the
standard time allowed for it.
(d) Fatigue Study: If, a
standard task is set without providing for measures to eliminate fatigue, it
may either be beyond the workers or the workers may over strain themselves to
attain it. It is necessary, therefore, to regulate the working hours and
provide for rest pauses at scientifically determined intervals.
(e) Rate-setting: Taylor
recommended the differential piece wage system, under which workers performing
the standard task within prescribed time are paid a much higher rate per unit
than inefficient workers who are not able to come up to the standard set.
2. Planning the Task: Having
set the task which an average worker must strive to perform to get wages at the
higher piece-rate, necessary steps have to be taken to plan the production
thoroughly so that there is no bottlenecks and the work goes on systematically.
3. Selection and Training: Scientific
Management requires a radical change in the methods and procedures of selecting
workers. It is therefore necessary to entrust the task of selection to a
central personnel department. The procedure of selection will also have to be
systematised. Proper attention has also to be devoted to the training of the
workers in the correct methods of work.
4. Standardization: Standardization
may be introduced in respect of the following.
(a) Tools and equipment: By
standardization is meant the process of bringing about uniformity. The
management must select and store standard tools and implements which will be
nearly the best or the best of their kind.
(b) Speed: There is usually an
optimum speed for every machine. If it is exceeded, it is likely to result in
damage to machinery.
(c) Conditions of Work: To
attain standard performance, the maintenance of standard conditions of
ventilation, heating, cooling, humidity, floor space, safety etc., is very
essential.
(d) Materials: The efficiency
of a worker depends on the quality of materials and the method of handling
materials.
5. Specialization: Scientific
management will not be complete without the introduction of specialization.
Under this plan, the two functions of 'planning' and 'doing' are separated in
the organisation of the plant. The `functional foremen' are specialists who
join their heads to give thought to the planning of the performance of
operations in the workshop. Taylor suggested eight functional foremen under his
scheme of functional foremanship.
(a) The Route Clerk: To lay
down the sequence of operations and instruct the workers concerned about it.
(b) The Instruction Card Clerk: To
prepare detailed instructions regarding different aspects of work.
(c) The Time and Cost Clerk: To
send all information relating to their pay to the workers and to secure proper
returns of work from them.
(d) The Shop Disciplinarian: To
deal with cases of breach of discipline and absenteeism.
(e) The Gang Boss: To assemble
and set up tools and machines and to teach the workers to make all their
personal motions in the quickest and best way.
(f) The Speed Boss: To ensure
that machines are run at their best speeds and proper tools are used by the
workers.
(g) The Repair Boss: To ensure
that each worker keeps his machine in good order and maintains cleanliness
around him and his machines.
(h) The Inspector: To show to
the worker how to do the work.
6. Mental Revolution: At
present, industry is divided into two groups – management and labour. The major
problem between these two groups is the division of surplus. The management
wants the maximum possible share of the surplus as profit; the workers want, as
large share in the form of wages. Taylor has in mind the enormous gain that
arises from higher productivity. Such gains can be shared both by the
management and workers in the form of increased profits and increased wages.
2. (a) Critically
discuss the necessity of decentralization of authority in an organisation so an
to make delegation more meaningful and effective. 16
Ans: Decentralisation: According to Allen,” Decentralization
implies consistent and systematic efforts to delegate to the lowest levels all
authority except that which can only be exercised at Central points.” Koontz and O’Donnell have stated that,
“Authority delegations may be extensive or limited. Much authority delegated
through the echelons of an organization is referred to decentralization of
authority, where as authority is said to be centralized wherever a manager
delegates little of it.”
Thus
decentralization implies delegation of formal authority, the pushing of
decision making down the chain of command.
Decentralization is the tendency to delegate formal authority to the
lower organizational units while centralization is exactly opposite of it.
Hence it may be stated that,” everything that goes to increase the importance
of the role of a subordinate is decentralization, and everything that goes to
reduce it is centralization.
Advantages of Decentralization: The main
advantages of decentralization are as discussed below
1)
It reduces the burden of top management so
that he can concentrate on other important functions like planning control etc.
2)
It makes growth and diversification easy. Under decentralization each product line is
treated as a separate division, hence it can respond quickly to the changes in
demands of its special market.
3)
It enables the organization to survive and
grow under the conditions of keen competition.
4)
It helps in promoting development of
executives. Decentralization provides
opportunity to subordinate managers to take decision and take initiative so as
to acquire leadership qualities.
Decentralization tends to promote autonomy, initiative and creativity on
the part of subordinates. It helps the
organization to maintain stability and continuity effectively.
5)
It improves motivation and morale of
subordinates. As opportunity to take decisions
is given to them, it helps in developing belongingness and satisfies the need
of power, prestige, status and independence.
When motivation and morale improves, productivity increases and healthy
working relationship also develops. It
helps in maximum utilization of talents of lower levels in the organization.
6)
It results in effective supervision because
lower level managers are given complete authority to make changes in work
assignment, to take disciplinary action, to recommend promotions and even to
change production schedule.
7)
Decentralization is useful in promoting
effective control through comparative evaluation of performance and clear-cut
accountability of results.
8)
It promotes democratic management and
flexibility of operations. Necessary
changes can be quickly made without disturbing the organizational structure.
9)
It helps in saving time as all the paper work
relating to the basic operations of business can be significantly reduced, work
can be completed early without wasting time.
Disadvantages of Decentralization: The main
weaknesses of decentralization are as discussed below:
1)
Decentralization may create problems of
co-ordination among different departments in the organization. Semi autonomous division may concentrate on
their own goals at the cost of the organizational objectives. There may be loss effective control and it
may lead to disintegration of the organization.
2)
There may be lack of uniformity as all the
decentralized units may not follow uniform policies and procedures. Thus inconsistencies may arise in the
activities of the organization.
3)
Decentralization may result into heavy
overheads on account of higher administrative expenses, duplication of staff
and facilities trained persons may not be fully utilized.
4) It is not suitable for small scale units as
decentralization needs broad product lines which are not available in small
scale units.
5) Decentralization may restrict timely action
during emergencies.
6) Some of the organizational activities cannot
be decentralized such as handling government authorities, trade union
negotiations etc.
7) Decentralization may not be possible due to
external constraints, such as increase in competition, growing power of trade
unions, government interventions, development of computerized information
system, rising cost of executives etc tend to reduce decentralization in
several cases.
Or
(b) Define the
term “span of management”. How would you determine the optimum span in a given
situation? 16
Ans: SPAN OF MANAGEMENT: In the words of Spriegal, "Span
of control means the number of people reporting directly to an authority. The
principle of span of control implies that no single executive should have more
people looking to him for guidance and leadership than he can reasonably be
expected to serve. The span of supervision is also known as span of control,
span of management, span of responsibility, span of authority and span of
direction.
Factors
influencing the span of Management
There
are number of factors that influence or determine the span of Management in a
particular organisation, the most important of these are as follows:
a)
The
capacity and ability of the executive: The characteristics and abilities
such as leadership, administrative capabilities; ability to communicate, to
judge, to listen, to guide and inspire, physical vigour, etc. differ from
person to person. A person having better abilities can manage effectively a
large number of subordinates as compared to the one who has lesser
capabilities.
b)
Competence
and training of subordinates: Subordinates who are skilled, efficient,
knowledgeable, trained and competent require less supervision, and therefore,
the supervisor may have a wider span in such cases as compared to inexperienced
and untrained subordinates who requires greater supervision.
c)
Nature of
Work: Nature and importance of work to be supervised is another factor
that influences the span of supervision. The work involving routine,
repetitive, unskilled and standardized operations will not call much attention
and time on the part of the supervisor.
d)
Time
available for supervision: The capacity of a person to supervise and
control a large number of persons is also limited on account of time available
at his disposal to supervise them. The span of control would be generally
narrow at the higher level of management because top manager have to spend
their major time on planning, organising, directing and controlling and the
time available at their disposal for supervision will be less.
e)
Degree of
Decentralization and Extent of Delegation: If a manager clearly delegates
authority to undertake a well-defined task, a well trained subordinate can do
it with a minimum of supervisor's time and attention.
f)
Effectiveness
of communication system: Faulty communication puts a heavy burden on
manager's time and reduces the span of control.
g)
Quality of
Planning: Effective planning helps to reduce frequent calls on the superior
for explanation, instructions and guidance and thereby saves in time available
at the disposal of the superior enabling him to have a wider span.
h)
Degree of
Physical Dispersion: If all persons to be supervised are located
at the same place and within the direct supervision of the manager, he can
supervise relatively more people as compared to the one who has to supervise
people located at different places.
i)
Assistance
of Experts: the span of supervision may be wide where the services of experts
are available to the subordinate on various aspects of work. In case such
services are not provided in the organisation, the supervisor has to spend a
lot of time in providing assistance to the workers himself and a such the span
of control would be narrow.
Type
of span of supervision: Broadly speaking there are two types, of span
of supervision:
a) Wider Span of Supervision: In this
type of span, the supervisor controls and guides the activities of subordinates
directly under his control. Wider span or supervision is favoured where workers
are competent and trained.
b) Narrow
Span of Supervision: under this type of supervision, there are many levels and
more supervisors are required to perform the job of guidance and control for
different activities. It increases the efficiency of supervision but the cost
of supervision is very high as compared to wider span of supervision. This type
of supervision is favored at higher levels of management where all the other activities
of planning, organising, directing, and controlling are also to be performed.
But more the levels of supervision, more difficult are the task of coordinating
the activities of various groups of people.
3. (a) Bring out the roles of
groups in an organisation. Substantiate the claims that group task influences
group performance and satisfaction. 8+8=16
Or
(b) What is the significance of
personality in organisational setting? Discuss various methods and techniques
to measure in individuals’ personality. 9+7=16
4. (a) Distinguish
between hygiene factors and motivation factors. What is the significance by
Herzbergs’ theory in actual life? 9+7=16
Ans: Another popular need-based approach to
motivation is the dual-structure approach developed by Frederick Herzberg. This
is also known as Two-factor Theory. Herzberg developed this approach after
interviewing 200 accountants and engineers in Pittsburg. He asked them to
recall such occasions when they had been dissatisfied and less motivated. He
found that entirely different sets of factors were associated with satisfaction
and dissatisfaction. For instance, an individual who identified 'low pay' as
causing dissatisfaction did not necessarily mention 'high pay' as a cause of
satisfaction. Instead, several other factors, such as recognition or
accomplishment, were cited as causing satisfaction.
This finding suggests that
satisfaction and dissatisfaction are at opposite ends of a single scale.
Employees would, therefore, be satisfied, dissatisfied or somewhere in between.
Herzberg argued that attitudes and motivation consists of a dual structure. One
structure involves a set of factors that result in feelings ranging from
satisfaction to no satisfaction. The other structure involves a set of factors
that result in feelings ranging from dissatisfaction to no satisfaction.
Herzberg identified two sets of
factors responsible for causing either satisfaction or dissatisfaction. The
factors influencing satisfaction are called motivation factors or motivators,
which are related specifically to the job itself and the factors causing
dissatisfaction, are called hygiene factors, which are related to the work
environment in which the job is performed.
Motivators
a)
Achievement
b)
Recognition
c)
Advancement
d)
The work itself
e)
The possibility of personal growth
f)
Responsibility
Hygiene or
Maintenance Factors
a)
Company policies
b)
Technical supervision
c)
Interpersonal relations with supervisor
d)
Interpersonal relations with peers
e)
Interpersonal relations with subordinates
f)
Salary
g)
Job security
h)
Personal life
i)
Work conditions
j)
Status
Based on these findings, Herzberg
recommended that managers seeking to motivate employees should first make sure
that hygiene factors are taken care of and that employees are not dissatisfied
with pay, security and working conditions. Once a manager has eliminated
employee dissatisfaction, Hertzberg recommends focusing on a different set of
factors to increase motivation, by improving opportunities for advancement,
recognition, advancement and growth. Specifically, he recommends job enrichment
as a means of enhancing the availability of motivation factors.
Criticism
Although
widely accepted by managers, Hertzberg’s dual structure approach however
suffers from certain drawbacks. Other researchers who measured satisfaction and
dissatisfaction based on different aspects reached very different conclusions.
They have also criticized Herzberg's theory for its inability to define the
relationship between satisfaction and motivation and to pay enough attention to
differences between individuals. Hence, at present Herzberg's theory is not
held in high esteem by researchers in the field of motivation. The theory,
however, had a major impact on managers and has played a key role in increasing
their awareness of motivation and its importance in type work place.
Or
(b) Point out, in brief, some
bahavioural implications of control. Suggest some suitable measures to minimize
behavioural dysfunctions of control. 8+8=16
5. (a) Why is organisational
change often resisted by individuals and groups within the organisation? How
can such resistance be prevented or overcome? 8+8=16
Or
(b) Discuss in detail the various channels of communication which are
generally used in modern business enterprises. 16
Ans: 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.
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