MS-01: Management Functions and Behaviour

ASSIGNMENT
Course Code : MS - 01
Course Title : Management Functions and Behaviour
Assignment Code : MS-01/TMA/SEM-II/2017
Coverage : All Blocks
Note : Attempt all the questions and submit this assignment on or before 31st October, 2017 to
the coordinator of your study center.
1. Planning is needed, firstly for committing and allocating the organisations limited resources
towards achieving its objectives in the possible manner and, secondly for anticipating the future
opportunities and problems.
Elaborate this statement and discuss the underlying concepts as you have experienced in
organisational situation. Briefly describe the context, you are referring to.
2. Briefly referring to various models of Decision making process, explain the one/s you have
experienced to be favourite in any organisational situation and why. Explain with context, and
brief of the organization, you are referring to.
3. What are the major forces for change that confront an organisation? Briefly describe the
process of organisational change, and relate it to the experience you have had, or you are aware
of. Briefly explain the context and the organisation you are referring to.
4. The term centralization and decentralization are meaningful only in a relative sense.
Centralisation and decentralisation are extensions of delegation. Delegation refers mainly to
entrustment of responsibility and authority from one person to another. Downward transfer of
responsibility and authority at individual level is referred to as delegation and when the same is
done organisation-wide in a systematic way it is known as decentralisation.
Elaborate this statement and discuss the underlying concepts with reference to the organisational
experience your have or are aware of. Please give a brief of the organisation and the context you
are referring to.
Answers
1. Planning is needed, firstly for committing and allocating the organisations limited resources
towards achieving its objectives in the possible manner and, secondly for anticipating the future
opportunities and problems.
Elaborate this statement and discuss the underlying concepts as you have experienced in
organisational situation. Briefly describe the context, you are referring to.
Ans.: An effective manager needs skills to plan, control, organise, lead, and finally to take
decisions. In each case, a manager must exercise a unique set of skills.
As part of the management process you attempt to define the future state of your organisation.
You are not trying to predict the future, but rather to uncover things in the present to ensure that
the organisation does have a future. Hence planning skills will include:
being able to think ahead;

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 ability to forecast future environmental trends affecting the organisation;
ability to state organisational objectives;
ability to choose strategies that will help in attaining these objectives with respect to
future trends; and
ability to arrive at performance standards or yardsticks for monitoring the implementation
of these strategies, etc.
With growing complexity in the operations of large organisations, managers are expected to
acquire skills to interact with intermediate planning systems such as a computer.
Planning specifies the future course of direction of an organisation. The organising process
follows the planning process. 'While planning specifies what will be achieved when, organising
specifies who will achieve what and how it will be achieved.
Four important management processes are planning, controlling, organizing and leading.
Decision making is an integral part of management process as all the other four processes
involve Decision making. A particular manager may be more concerned with say, controlling
and organising, while another may be more concerned with planning. The degree of involvement
with each of these processes may vary from manager to manager, but essentially all managers
have to be concerned with these processes. We shall first take up the planning process because
only when there is planning can the other processes follow in logical sequence.
Planning is the most basic and pervasive process involved in managing. It means deciding in
advance what actions to take and when and how to take them.
Planning is needed, firstly for committing and allocating the organisation's limited resources
towards achieving its objectives in the best possible manner and, secondly for anticipating the
future opportunities and problems.
The first function of the manager is planning. It is also the foremost and the essential function.
Planning defines the goals and objectives to be reached in the plan period. It also consists of
policies, procedures, methods, budgets, strategy and programmes that are needed to achieve the
goals set. Decision-making is the most important and integral part of planning.
Planning is the most basic and pervasive process involved in managing. It means deciding in
advance what actions to take and when and how to take them.
Planning is needed, firstly for committing and allocating the organizations limited resources
towards achieving its objectives in the best possible manner and, secondly for anticipating the
future opportunities and problems.
Planning is putting down in black and white the actions which a manager intends to take. Each
manager is involved in planning though the scope and character may vary with the level of the
manager.
Importance of Planning
1. Planning affects performance.
2. Planning puts focus on objectives.
3. Planning anticipates problems and uncertainties.
4. Planning is necessary to facilitate control.
5. Planning helps in a process of decision making.

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Types of plans: Organizational plans are usually divided into two types, namely standing plans
and single use plans.
Standing plans are those which remain roughly the same for long periods of time and are used in
organizational situations that occur repeatedly.
Single use plans focus on relatively unique situations within the organization and may be
required to be used only once.
Standing plans:
Policies: A policy is a statement and pre-determined guideline that provides direction for
decision making and action taking. Policies are usually general enough to give the manager
sufficient freedom to make judgments.
Procedures: while policies cover a broad area of action, procedures prescribe the exact manner
in which an activity is to be completed. It is a series of steps established to accomplish a specific
project. They generally indicate how a policy is to be implemented and carried out. They are
more precise guidelines permitting little or no individual discretion. Procedures are a series of
related tasks that make up the chronological sequence and the established way of performing the
work to be accomplished.
Rules: Whereas procedures specify a chronological sequence of steps to be performed, a rule is
very specific and a narrow guide to action. These are plans that describe exactly how one
particular situation is to be handled. A rule is meant to be strictly followed and is generally
enforced by invoking penalties.
Single use plans:
Programmes: A programme is a single use plan designed to carry out a special project, solving
a problem or achieving a group of related goals. This project or problem is not intended to be in
existence over the entire life of the organization like the standing plans.
Budgets: A budget is another single use programme which is a financial plan that covers a
specified period of time. This plan identifies as to how funds will be raised and how these funds
will be utilized for procuring resources such as labour, raw materials, information systems and
other business functions such as marketing, research and development and so on.
Levels of Planning
There are basically three levels of planning associated with the different managerial levels.
1. Strategic Planning: is the process of determining overall objectives of the organization
and the policies and strategies adopted to achieve those objectives. It is a process by
which an organization makes decisions and takes actions that affect its long-term
performance. Top management of the organization is involved in strategic planning,
which is a long-range and has a major impact on the organization. It usually covers a time
period of up-to ten years and involves a major commitment of resources.
2. Tactical Planning: While strategic planning focuses on where the organization will be in
the future, tactical planning, also known as intermediate planning emphasizes how it will
be done. Such planning generally covers a shorter period of time, usually between one
and two years and involves middle level management.

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3. Operational planning: operational plans are the responsibility of lower level management
and involve unit supervisors, foremen and so on. These are short range plans covering a time
span of about one week to one year. These plans are more specific and they determine how a
specific job is to be completed in the best possible way. Most of them are divided into functional
units.
2. Briefly referring to various models of Decision making process, explain the one/s you have
experienced to be favourite in any organisational situation and why. Explain with context, and
brief of the organization, you are referring to.
Ans.: All models are beneficial for understanding the nature of decision-making processes in
enterprises or organisations. All models are based on certain assumptions on which the decisions
are taken.
1. The Rational/Classical Model: The rational model is the first attempt to know the decision-
making-process. It is considered by some as the classical approach to understand the decision-
making process. The classical model gave various steps in decision-making process which have
been discussed earlier.
2. Bounded Rationality Model or Administrative Man Model: Decision-making involve the
achievement of a goal. Rationality demands that the decision-maker should properly understand
the alternative courses of action for reaching the goals.
He should also have full information and the ability to analyse properly various alternative
courses of action in the light of goals sought. There should also be a desire to select the best
solutions by selecting the alternative which will satisfy the goal achievement.
Herbert A. Simon defines rationality in terms of objective and intelligent action. It is
characterised by behavioural nexus between ends and means. If appropriate means are chosen to
reach desired ends the decision is rational.
Bounded Rationality model is based on the concept developed by Herbert Simon. This model
does not assume individual rationality in the decision process.
Instead, it assumes that people, while they may seek the best solution, normally settle for much
less, because the decisions they confront typically demand greater information, time, processing
capabilities than they possess. They settle for bounded rationality or limited rationality in
decisions. This model is based on certain basic concepts.
3. Retrospective decision model (implicit favourite model): This decision--making model
focuses on how decision-makers attempt to rationalise their choices after they have been made
and try to justify their decisions. This model has been developed by Per Soelberg. He made an
observation regarding the job choice processes of graduating business students and noted that, in
many cases, the students identified implicit favorites (i.e. the alternative they wanted) very early
in the recruiting and choice process. However, students continued their search for additional
alternatives and quickly selected the best alternative.
Making a decision is not the end of the process, rather it is a beginning. Implementation of the
decision and the results obtained are the true barometer of the quality of the decision. Duties
must be assigned, deadlines must be set, evaluation process must be established and contingency
plans must be prepared in advance. The decisions must be implemented whole heartedly to get
the best results.

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3. What are the major forces for change that confront an organisation? Briefly describe the
process of organisational change, and relate it to the experience you have had, or you are aware
of. Briefly explain the context and the organisation you are referring to.
Ans.: Globalization, technological changes, knowledge management and cross boundaries
collaboration are four factors that are major forces creating change in organizations today. These
changes affect decision-making as organizations are forced to recognize that they need leaders
who are innovative, creative visionaries who understand the various environments that their
organizations are operating in, and are able to differentiate between these different environments.
These environments include: the external or operating environment; the competitive environment
(that part of the external environment in which firms that are competing for the same market
exist) and the macroenvironment in which influences such as the economy, government
regulations, societal values, demographics and technology come to bear upon an organization.
Faced with such complexities leaders need to be equipped with appropriate skill-sets such as
flexibility, good communication, and critical thinking and negotiation abilities. They must also
be supported with the necessary resources in order to make good decisions that will benefit their
organizations.
Globalization: Supports Convergence in international activities, such as increasing foreign
production of goods and services, increased consumer demand in emerging markets worldwide,
falling barriers to international trade of rapidly changing technology, creates aglobal economy
has resulted in the mutual dependence between countries as a norm today. So are the hiring
practices of companies that find the best talent is to have changed because the best talent may not
be resident in the home. Companies had their recruitment, training and management practices to
be calibrated to respond to this challenge will be. In a world that "Americans too often quite as
pushy, manipulative come, and talkative" (David, 2007, p.291), U.S.Organizations need the
culture, customs, political and legal differences with respect to the countries they operate in.
Some of these customs protocol related, such as exchange of gifts, the observance of holidays
and employment law. Even taking into account international standards vary. Organizations must
therefore be sensitive to these differences in the formulation of operational and human resource
(HR) strategies for the implementation abroad, in this global environment it isunlikely that the
companies, national policies can be applied that work at home and abroad.
Technological change: Technology is like a double-edged sword, make our lives easier, or may
be even worse. The Internet has revolutionized the way in which information is exchanged,
facilitating communication and trade conducted revolutionized. The technology is rapidly
changing demands and efficient management to more knowledge in these areas in order for
companies to manage their resources anddevelop obtain or retain their competitive advantage.
Modern technology has enabled the company to save time and money by conducting business
such as negotiation, and trade in real time, but may also facilitate the sharing of sensitive
information about the practices of a company's trade secrets and the development of new
products in a matter seconds.
Hackers can use the security of a company via the Internet and placed on companies in danger.
Organizations have responded by completely new speciesof departments such as information
technology (IT) departments by managers with titles such as Chief Information Officer (CIO),
led the management of both the opportunities and risks associated with technological changes
linked.

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Moreover, any technology has a number of high-tech devices to help lead and facilitate the
enterprises in the procurement and management of information generated worldwide in constant
contact with their employees what the communications and decisions immediately. This can be
both a blessing and a source of stress for managers and executives who have to learn to manage
their selection and use of these devices. In a global economy in knowledge management
technology can
Knowledge Management: Driving forces such as changes in buyer demographics and
preferences, technology, product innovation and market changes in society, consumer attitudes
and lifestyle require new ideas. This has created a need for knowledge workers.
Knowledge workers of a company include intellectual capital and the creative people with new
ideas and problem-solving capacity exists. Managing knowledge assets a company can have a
competitive advantage because they are effectively the expertise, skill, intellect, uses, and the
relations of the members of the organization.
Cross-border Collaboration: An important part of knowledge management is the effective
management of enterprise-wide collaboration. Use of appropriate technologies and applications
such as virtual private networks, VoIP, email, social networking sites like Face Book, and
company-sponsored blogs may be the communication between an organization and its
stakeholders to facilitate and help in various kinds of internal and externalcollaborative
processes. An example of a tool that can be used in cross-section to cross borders cooperation
could be an easily accessible online database that provides a central source of information for
employees, customers or suppliers.
In the 21st Century change is the norm rather than the exception and leaders must be able to
embrace it. They need to be able to develop:
A vision, and be able to communicate it to their organizations
An orientation to serving
An entrepreneurial mind-set
A commitment to continuous innovation
A global mindset
Ease and confidence with technology
Know-how in systems thinking (a broad view of the inter-relationship of an
organizations parts, rather than a narrow view that is focused on one part or event.)
A sense of ethics and appreciation of spirituality in the workplace
A commitment to continuous learning, personal and professional development
In order to respond effectively to the four major forces creating change in todays global
economy leaders must be willing to embrace change; they must be curious and appreciative of
the richness and diversity of other cultures. The must be trust-worthy and flexible; and they must
have very strong time management, communication, conflict-management, problem-solving and
people-skills in order to effectively manage these drivers of change.
4. The term centralization and decentralization are meaningful only in a relative sense.
Centralisation and decentralisation are extensions of delegation. Delegation refers mainly to
entrustment of responsibility and authority from one person to another. Downward transfer of
responsibility and authority at individual level is referred to as delegation and when the same is
done organisation-wide in a systematic way it is known as decentralisation.

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Elaborate this statement and discuss the underlying concepts with reference to the organisational
experience your have or are aware of. Please give a brief of the organisation and the context you
are referring to.
Ans.: Centralization is said to be a process where the concentration of decision making is in a
few hands. All the important decision and actions at the lower level, all subjects and actions at
the lower level are subject to the approval of top management. According to Allen,
Centralization is the systematic and consistent reservation of authority at central points in the
organization. The implication of centralization can be :-
Reservation of decision making power at top level.
Reservation of operating authority with the middle level managers.
Reservation of operation at lower level at the directions of the top level.
Under centralization, the important and key decisions are taken by the top management and the
other levels are into implementations as per the directions of top level. For example, in a
business concern, the father & son being the owners decide about the important matters and all
the rest of functions like product, finance, marketing, personnel, are carried out by the
department heads and they have to act as per instruction and orders of the two people. Therefore
in this case, decision making power remain in the hands of father & son.
On the other hand, Decentralization is a systematic delegation of authority at all levels of
management and in all of the organization. In a decentralization concern, authority in retained by
the top management for taking major decisions and framing policies concerning the whole
concern. Rest of the authority may be delegated to the middle level and lower level of
management.
The degree of centralization and decentralization will depend upon the amount of authority
delegated to the lowest level. According to Allen, Decentralization refers to the systematic
effort to delegate to the lowest level of authority except that which can be controlled and
exercised at central points.
Decentralization is not the same as delegation. In fact, decentralization is all extension of
delegation. Decentralization pattern is wider is scope and the authorities are diffused to the
lowest most level of management. Delegation of authority is a complete process and takes place
from one person to another. While decentralization is complete only when fullest possible
delegation has taken place. For example, the general manager of a company is responsible for
receiving the leave application for the whole of the concern. The general manager delegates this
work to the personnel manager who is now responsible for receiving the leave applicants. In this
situation delegation of authority has taken place. On the other hand, on the request of the
personnel manager, if the general manager delegates this power to all the departmental heads at
all level, in this situation decentralization has taken place. There is a saying that Everything that
increasing the role of subordinates is decentralization and that decreases the role is
centralization. Decentralization is wider in scope and the subordinates responsibility increase
in this case. On the other hand, in delegation the managers remain answerable even for the acts
of subordinates to their superiors.
The process by which authority passes from one managerial level to another is known as
delegation. As organisations grow in size and complexity, no one person can perform all the
tasks or exercise all the authority that is needed to accomplish goals. Delegation of authority is

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not the same as division of work. As Henry Fayol says, "Division of work permits reduction in
the number of objects to which attention and effort must be directed and has been recognised as
the best means of making use of individuals and of groups of people". Delegation of authority
denotes the superior vesting decision-making power in his subordinate. No one can delegate an
authority which he himself does not have. Delegation is one of the most important skills a
manager must possess. The overworked managers are often those who do not know how to
delegate. For they lack the skill to get results through others. An individual can perform limited
work in a day, all by himself. But through delegation-through dividing his load and sharing his
responsibilities with others-he can accomplish much more. No manager and no organisation can
run smoothly and effectively without delegation.
The number of delegation marks the effectiveness of the manager and influences the relationship
between the superior and the subordinate.
Delegation is the process where a manager divides the work assigned to him so as to get help
from others in accomplishing the same. It involves the following four steps that are indivisible:
the determination of results expected
the assignment of tasks
the delegation of authority for accomplishing these tasks
the exaction of responsibility for their accomplishment
Looked at differently, these four steps have three elements: responsibility, authority and
accountability. Delegation is the entrustment of responsibility and authority to another and the
creation of accountability for performance. Let us briefly consider these three elements.
Responsibility: Responsibility refers to the activities which must be performed to carry out the
task assigned. Responsibility can be delegated.
Authority: Authority refers to the powers and rights entrusted to enable performance of the task
assigned or delegated. Certain authority is imperative to shoulder a given responsibility. In
organisations people derive authority mainly from two sources: position and personal. Position
authority is related to powers of decision-making, reward and punishment. Personal authority
refers to the expert knowledge and certain qualities which are part of the personality of an
individual manager. Position authority can be delegated, but not personal authority. Authority
could be formal or informal. Here we refer to formal authority that is clear, structured and
communicated to all.
Accountability: Accountability is the obligation to carry out responsibility and exercise
authority as per established standards or norms. It is an obligation to account for, and report
upon, the discharge of responsibility or use of authority. Accountability cannot be delegated. The
person who delegates continues to be responsible to his superior for what he had delegated as
well.
Since accountability cannot be delegated, the accountability of superiors for the acts of their
subordinates is absolute. By the same token, we see that the delegatee is accountable to the
delegator to the extent he is delegated responsibility and authority For example, if the line
managers are not given the responsibility to train the operators, they cannot beheld accountable
for the operators proficiency. While accountability always moves upward, responsibility and
authority move downward in a hierarchy. A person can be accountable only to one superior for

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delegated responsibility and authority. Accountability is easy to establish if the standards and
measures of performance are predetermined.
Centralization and Decentralization are the two types of structures, that can be found in the
organization, government, management and even in purchasing. Centralization of authority
means the power of planning and decision making are exclusively in the hands of top
management. It alludes to the concentration of all the powers at the apex level.
On the other hand, Decentralization refers to the dissemination of powers by the top management
to the middle or low-level management. It is the delegation of authority, at all the levels of
management.

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