1Winter / November 2011 Master of Business AdministrationSemester I MB0038 Management Process and Organizational Behaviour- 4 Credits(Book ID:B1127) Assignment

Set- 1 (60 Marks)Note: Each Question carries 10 marks. Answer all the questions.Q1. Explain the four processes of Social Learning Theory.Ans: The Social Learning Theory was proposed by Albert Bandura. It recognizest h e i m p o r t a n c e o f o b s e r v i n g a n d m o d e l i n g t h e b e h a v i o r s , a t t i t u d e s , a n d emotional reactions of others. The four processes of Social Learning Theory are:a) Attention processes, b) Retention processes, c) Motor reproduction processes,d) Reinforcement processesa)Attention processes: Social Cogn itive Theory implies that you must payattention for you to learn. If you want to learn from the behavior of themodel (the person that demonstrates the behavior), then you sho uldeliminate anything that catches your attention other than him. Also, themore interesting the model is, the more likely you are to pay full attentionto him and learn.b)Retention processes: The ability to store information is also an importantpart of the learning process. Retention can be affected by a number of factors, but the ability to pull up information later and act on it is vital toobservational learning.c)Reproduction processes: Once you have paid attention to the model andretained the information, it is time to actually perform the behavior youobserved. Further practice of the learned behavior leads to improvementand skill advancement.d)Reinforcement processes: Finally, in order for observational learning to besuccessful, you have to be motivated to imitate the behavior that hasbeen modeled. Reinforcement and punishment play an important role inmotivation. While experiencing these motivators can be highly effective,so can observing other experience some type of reinforcement orpunishment. For example, if you see another student rewarded with extracredit for being to class on time, you might start to show up a few minutesearly each day.Q2. What are the hindrances that we face in perception 2Ans: Following are the barriers to perception:a)Selective perception - People selectively interpret what they see on thebasis of their interests, background, experience, knowledge, expos ure,and attitudes. The tendency to see what we want to see using short cutscan make us draw unwarranted conclusions from an ambiguous situation.b)Halo Effect This effect occurs when we draw a general impression on thebasis of a single characteristic.But what this experiment demonstrates isthat although we can understand the halo effect intellectually, we oftenhave no idea when it is actually happening. This is what makes it such auseful effect for marketers and politicians. We quite naturally make thekinds of adjustments demonstrated in this experiment without eve

nrealising it. And then, even when it's pointed out to us, we may well stilldeny it.c)Contrast Effect Individuals do not evaluate a person in isolation. Theirr e a c t i o n t o o n e p e r s o n i s i n f l u e n c e d b y o t h e r p e o p l e t h e y h a v e encountered recently.d)Projection This tendency to attribute one`s own characteristics to otherpeople is called projection. This too can distort perceptions made aboutothers. When managers engage in projection, they compromise theirability to respond to individual differences. They tend to see people asmore homogeneous than they really are.e)Stereotyping Judging someone on the basis of our perception of thegroup to which he or she belongs. Stereotypes are generalizations about agroup of people whereby we attribute a defined set of characteristics tothis group. These classifications can be positive or negative, such as whenvarious nationalities are stereotyped as friendly or unfriendly. It is easiert o c r e a t e s t e r e o t y p e s w h e n t h e r e i s a c l e a r l y v i s i b l e a n d c o n s i s t e n t attribute that can easily be recognized. This is why people of colour, policeand women are so easily stereotyped. People from stereotyped groups canfind this very disturbing as they experience an apprehension (stereotypethreat) of being treated unfairly.f)First-Impression Error is the tendency to form lasting opinions about anindividual based on initial perceptions. We tend to remember what weperceive first about a person and sometimes we are quite reluctant tochange our initial impressions.Q3. Describe the bases of power.Ans: Power is the ability to make things happen in the way an individual wants,either by self or by the subordinates. The essence of power is control over thebehavior of others (French & Raven, 1962). Managers derive power from bothorganizational and individual sources. There two kinds of power Formal andInformal.Formal Power consists of the following bases Coercive, Reward, Legitimate,Informational

3Informal Power consists of the following bases Expert, Rational persuasion,Referent power, Charismatic powerPositional power Also called "legitimate power", it is the power of an individualbecause of the relative position and duties of the holder of the position within anorganization. Legitimate power is formal authority delegated to the holder of theposition. It is usually accompanied by various attributes of power suchasuniforms, offices etc. This is the most obvious and also the most importantkind of power.Referent powerReferent power is the power or ability of individuals to attractothers and build loyalty. It's based on thecharismaandinterpersonal skillsof thepower holder. A person may be admired because of specific personal trait, andthis admiration creates the opportunity for interpersonal influence. Here theperson under power desires to identify with these personal qualities, and gainssatisfaction from being an accepted follower.Nationalismandpatriotismcounttowards an intangible sort of referent power. For example, soldiers fight in warsto defend the honour of the country. This is the second least obvious power, butthe most effective.

Advertisers have long used the referent power of sportsfigures for products endorsements, for example. The charismatic appeal of thesports star supposedly leads to an acceptance of the endorsement, although theindividual may have little real credibility outside the sports arena.Expert power - Expert power is an individual's power deriving from the skills orexpertise of the person and the organization's needs for those skills andexpertise. Unlike the others, this type of power is usually highly specific andlimited to the particular area in which the expert is trained and qualified.Reward power - Reward power depends on the ability of the power wielder toconfer valued material rewards, it refers to the degree to which the individualcan give others a reward of some kind such as benefits, time off, desired gifts,promotions or increases in pay or responsibility. This power is obvious but alsoineffective if abused. People who abuse reward power can become pushy orbecame reprimanded for being too forthcoming or 'moving things too quickly'.Coercive power - Coercive power is the application of negative influences. Itincludes the ability to demote or to withhold other rewards. The desire for valuedrewards or the fear of having them withheld that ensures the obedience of thoseunder power. Coercive power tends to be the most obvious but least effectiveform of power as it builds resentment and resistance from the people whoexperience it.Informational power - Informational power is based on the potential use of informational resources. This influence can occur through such means as rationalargument, persuasion, or factual data. Members of a group can makeinformation into power by giving it to others who need it, by keeping it tothemselves, by organizing it in some way, by increasing it, or even by falsifyingit.Q4. Ms. Chanchal Das Gupta is a recruitment specialist. For the post of QCM a n a g e r , s h e i n t e r v i e w s t h r e e c a n d i d a t e s . G i v e n b e l o w a r e t h e p h y s i c a l characteristics of the candidates.

7Ans: Emotional intelligence (EI) refers to the ability to perceive, control andevaluate emotions. Some researchers suggest that emotional intelligence can belearned and strengthened, while others claim it is an inborn characteristic. Since1990, Peter Salovey and John D. Mayer have been the leading researcherson emotional intelligence. In their influential article "Emotional Intelligence," theydefined emotional intelligence as, "the subset of social intelligence that involvesthe ability to monitor one's own and others' feelings and emotions, todiscriminate among them and to use this information to guide one's thinking andactions" (1990).Goleman identified the five 'domains' of EQ as:1 . K n o w i n g y o u r e m o t i o n s . 2 . M a n a g i n g y o u r o w n e m o t i o n s . 3 . M o t i v a t i n g y o u r s e l f . 4.Recogni sing and understanding other people's emotions.5 . M a n a g i ng relationships, i.e., managing the emotions o f others.Emotional Intelligence embraces and draws from numerous other branches of behavioural, emotional and communications theories, such as NLP (Neuro-Linguistic Programming), Transactional Analysis, and empathy. By developingour Emotional Intelligence in these areas and the five EQ domains we canbecome more productive and successful at what we do, and help others to bemore productive and successful too. The process and outcomes of EmotionalIntelligence development also contain many elements known to reduce stress forindividuals and organizations, by decreasing conflict, improving relationships andunderstanding, and increasing stability, continuity and harmony.Q4. Explain the different leadership styles as per Managerial Leadership Grid Theory.Ans: The Managerial Grid is based on two behavioral dimensions: Concern for People This is the degree to which a leader considers theneeds of team members, their interests, and areas of personaldevelopment when deciding how best to accomplish a task. Concern for Production This is the degree to which a leaderemphasizes concrete objectives, organizational efficiency and highproductivity when deciding how best to accomplish a task.i.Country Club Leadership High People/Low Production This style of leader is most concerned about the needs and feelings of members of his/her team. These people operate under the assumptionthat as long as team members are happy and secure then they will workhard. What tends to result is a work environment that is very relaxed andfun but where production suffers due to lack of direction and control.ii.Produce or Perish Leadership High Production/Low PeopleAlso known as Authoritarian or Compliance Leaders, people in thiscategory believe that employees are simply a means to an end. Employeeneeds are always secondary to

the need for efficient and productiveworkplaces. This type of leader is very autocratic, has strict work rules,policies, and procedures, and views punishment as the most effectivemeans to motivate employees.

8iii.Impoverished Leadership Low Production/Low People This leader is mostly ineffective. He/she has neither a high regard forcreating systems for getting the job done, nor for creating a workenvironment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony.iv.Middle-of-theRoad Leadership Medium Production/Medium People This style seems to be a balance of the two competing concerns. It may atfirst appear to be an ideal compromise. Therein lies the problem, though:When you compromise, you necessarily give away a bit of each concern sothat neither production nor people needs are fully met. Leaders who usethis style settle for average performance and often believe that this is themost anyone can expect.v . T e a m L e a d e r s h i p H i g h P r o d u c t i o n / H i g h P e o p l e According to the Blake Mouton model, this is the pinnacle of managerialstyle. These leaders stress production needs and the needs of the peopleequally highly. The premise here is that employees are involved inunderstanding organizational purpose and determining production needs.When employees are committed to, and have a stake in the organizationssuccess, their needs and production needs coincide. This creates a teamenvironment based on trust and respect, which leads to high satisfactionand motivation and, as a result, high production.Q5. Distinguish between internal and external forces of change.Ans: Internal Forces:Poor financial performanceEmployee dissatisfactionInefficiency of existing business processes and systemsNeed to increase profitabilityExistence of cultural misfits to organisation goals and objectivesExternal Forces:Changes in technologyPolitical factorsGeneral macro-economic environmentChanges in consumer tastes, preferences, purchasing patterns & frequenciesDeclining market shares due to competitionQ6. What are the 14 principles of management of Henri Fayol?Ans: Following are the 14 principles of management of Henri Fayol:1.DIVISION OF WORK: Work should be divided among individuals andgroups to ensure that effort and attention are focused on special portionsof the task. Fayol presented work specialization as the best way to use thehuman resources of the organization.2 . A U T H O R I T Y : T h e c o n c e p t s o f A u t h o r i t y a n d r e s p o n s i b i l i t y a r e c l o s e l y related. Authority was defined by Fayol as the right to give orders and thepower to exact obedience. Responsibility involves being accountable, and istherefore naturally associated with authority. Whoever assumes authorityalso assumes responsibility.

93.DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this commoneffort.4.UNITY OF COMMAND: Workers should receive orders from only onemanager.5.UNITY OF DIRECTION: The entire organization should be movingtowards a common objective in a common direction.6.SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERALINTERESTS: The interests of one person should not take priority over theinterests of the organization as a whole.7.REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of thebusiness, should be considered in determining a workers rate of pay.8.CENTRALIZATION: Fayol defined centralization as lowering theimportance of the subordinate role. Decentralization is increasing theimportance. The degree to which centralization or decentralization shouldbe adopted depends on the specific organization in which the manager isworking.9.SCALAR CHAIN: Managers in hierarchies are part of a chain likeauthority scale. Each manager, from the first line supervisor to thepresident, possess certain amounts of authority. The President possessesthe most authority; the first line supervisor the least. Lower level managersshould always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if theorganization is to be successful.10.ORDER: For the sake of efficiency and coordination, all materialsand people related to a specific kind of work should be treated as equally aspossible.11.EQUITY: All employees should be treated as equally as possible.12.STABILITY OF TENURE OF PERSONNEL: Retaining productiveemployees should always be a high priority of management. Recruitmentand Selection Costs, as well as increased product-reject rates are usuallyassociated with hiring new workers.13.INITIATIVE: Management should take steps to encourage workerinitiative, which is defined as new or additional work activity undertakenthrough self direction.14.ESPIRIT DE CORPS: Management should encourage harmony andgeneral good feelings among employees.