Wednesday, September 18, 2019

M.Com Previous Year Solved Papers: Organisational Behaviour' 2014 (August - Incomplete)

2014 (August)
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.
(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.
(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
(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.
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.
                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.
(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
(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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