1st SEMESTER

PAPER-I

MANAGEMENT PROCESS
AND BEHAVIOUR

Assignment -2

Questions and Answers

6. What do you mean by Business Ethics? What is the procedure
for managing ethics in business?

INTRODUCTION:

Business ethics are the desired norms of behaviour, exclusively dealing with
commercial transactions. According to Sekhar, one can convert values into
rules of behaviour that can then be described as ethics. It means values plus
knowledge equals ethics, which in business includes values governing
commercial transactions not only among persons and among organisations
but also among persons within organisations and political processes that
regulate such transactions.

Karve suggested the CATWOE model adopted from systems

management for resolving such ethical questions. CATWOE is an acronym
for ethical decision-making representing Customers (C); Actors who carry
out the decision (A); the Transformation process or the decision maker (T);
Worldview predominantly held (W); Owners (O); and Environment (E). In
the situation mentioned earlier, the model suggests that it is in the long-term
interests of stockholders involved in the decision that the area manager
should: i) decline to pay the bribe ii) appraise the top management of his
decision iii) try to resolve the issue correctly, with the help of top
management intervention at higher levels and threat of counter exposure, if
necessary iv) take customers into confidence to cater for the ‘worst-case’
scenario and v) ask the top management to propagate a code of ethics which
clearly forbids all types of bribes and illegal payments. The application of
the concept of organizational social responsibility is rooted in managerial
ethics.
This is because, organisations cannot make decisions; only
individuals within the organisations can do that. Since decisions relating to
undertaking of any social action projects must be made by corporate
managers, it is their sense of right or wrong that ultimately determines the
extent of their organization’s social responsiveness. It is in this context, the
study of backbone of modern civilization. Today’s corporate business is
complicated, comprehensive, and competitive. Technological advances
have enabled it to specialise and globalise. In the present socio-economic
environment, this concept is a vital issue to achieve individual as well as
social goals. Finally, it is said that there exists a certain synergy between
corporate governance and business ethics. The bedrock of good corporate
governance is quality of leadership and core values.
Ethical Value:

Management of corporate ethics is considered under two general categories.

They are ethical dilemmas and ethical lapses. An ethical dilemma is an
ethical issue which has two conflicting and valid views. A classic example
is whether tobacco companies or liquor marketers should be allowed to
advertise or not. Allowing them to do so, encourage unhealthy behaviour,
but, not allowing them to advertise would violate their freedom of speech
and hamper their ability to do business. An ethical lapse, on the other hand
occurs when managers make unethical business. The alleged nexus between
Tata Tea-ULFA, that hit the headlines for some period, is an interesting
insight.

Several philosophers and management experts have developed a

number of models and systems to help people resolve ethical dilemmas.
There are three fundamental ethical approaches for business managers: the
utilisation, the moral rights and the social justice approaches. The utilitarian
approach judges the effects of a particular action on a particular group in
terms of what provides the greatest good for the greatest number of people.
This approach thus focuses light on ‘actions’ rather than on the motives
behind the actions. The moral rights approach judges whether actions are in
accordance with the accepted principles of moral and legal rights. Also
known as ‘deontology’, it stresses on the rights of human beings to life and
safety, a standard of truthfulness, privacy and so on. The social justice
approach judges actions in terms of whether they are consistent with the
maintenance of fairness, equity and impartiality in the distribution of
rewards and costs among individuals and groups. In other words, this
approach implies that individuals as members of organisations should agree
to conform to the shared values and goals of their enterprises.

Steven Brenner and Earl Molander conducted a survey among the

practicing executives to identify the factors that influence ethical standards.
According to them, public disclosure by publicity and media coverage is the
most important determinant of ethical standards and the other factors being
public awareness, government regulation, professionalism in business
managers, new social expectations, and top management emphasis on
ethical action, in that order.
 Brenner and Molander also stated that most often managers find
themselves involved in conflict of interest situations with their superiors,
customers, subordinates, competitors, regulators and suppliers. They added
that the most common conflicts of interest related to honesty of
communication; gifts; entertainments and kickbacks; fairness and
discrimination; breaking of laws; honesty in contracts; firings and lay-off
and pricing practices. To assist managers who are frequently confronted
with these dilemmas, many firms are establishing written codes of ethics.
Amanda Bennett studied corporate codes of ethics and confirmed the earlier
findings relating to conflict of interest situations. The issues centre round
bribes and kickbacks, political contributions, authenticity of books,
misappropriation of corporate assets, and confidentiality of corporate
information, etc. Pradip N. Khandwala’s study on 30 senior and top level
executives from India’s leading public enterprises revealed whether there
were any core values that the management strongly emphasized to the staff.
Chakraborthy of IIM-C had presented nicely the issues relating to the values
for managers, values system in east and west, managing self and society,
etc.

It was found that product quality, high productivity, improved work

ethic and culture, teamwork and co-operation, were most commonly
stressed values, whereas integrity, and sense of belonginess to work were
somewhat less frequently stressed values. Further, meeting social
obligations was the least commonly emphasized core value. Vikram Karve
considered an ethical dilemma faced by a newly appointed area manager of
an IT Company. A state-of-the art product was to be launched on a certain
date that had been widely announced and there were heavy customer
bookings. Three days before the launching date, however, the manager’s
deputy told him the trucks transporting the product had been detained at the
octroi post, for want of some documents, and the octroi inspector was
demanding bribe for the immediate clearance of the consignment. “Should
we pay the bribe?”, the deputy manager asked him.

Indian corporate sector scenario is not what it was prior to 1991. The
package of economic reforms implemented over the last six years have
intensified the competition by opening the market for MNCs with a reduced
role for direct public investment and a concerted drive to woo foreign
investment through numerous concessions. Now, in the liberalised business
environment, Indian companies are compelled to replace old ethos and give
priority to enhancing shareholders’ values, maximum scope to professional
management, participative decision making and transparency in dealings,
besides providing competitive service to customers. This is a period of
transition from a controlled economy to a market-driven one.

Georgetown University, Washing D.C., concluded a seminar with the

following issues:

a) Ethical behaviour cannot be assured simply by writing and

distributing an ethical code of conduct;
b) Since ethics is a constant, living interpersonal process, we need
always to be working at it. If it is not improving, it is deteriorating;
c) The process of ethical behaviour can no longer be assured by an
authoritarian fiat or a command from the top. People today prize their
freedom and individuality too highly for mere commands to be
effective. Individuals must freely agree with, and commit themselves
to the principles and values that the corporation stands for;
d) Agreement is an exercise of intelligence. Therefore, values which are
proposed, must be reasonable. Commitment is a matter of free choice,
and therefore, values which are proposed must be desirable;
e) It is within the climate of a corporation that certain values are
recognized by the membership to be reasonable and desirable. The
climate grounds and supports values;
f) The creation of an ethical climate is the indispensable means,
therefore, ethical behaviour is to be promoted in a modern
corporation.
7. Define Coordination. What is the need for coordination
in an organization?
Coordination is the process of harmonizing activities, resources, and efforts
within an organization to achieve common goals effectively and efficiently.
It involves integrating and aligning various functions, departments, and
individuals to ensure smooth workflow and optimal performance.

Here are the key points explaining the need for coordination in an
organization:

1. Integration of Activities: Coordination helps in integrating the diverse

activities and functions of different departments or teams within an
organization. It ensures that all efforts are directed towards the achievement
of common objectives without conflicts or duplications.

2. Optimum Resource Utilization: By coordinating activities, organizations

can better utilize their resources, including manpower, materials, time, and
finances. This prevents wastage and maximizes productivity, leading to cost
savings and improved profitability.

3. Conflict Resolution: In a complex organizational setup, conflicts may

arise due to differences in goals, priorities, or methods among various
departments or individuals. Effective coordination facilitates
communication, collaboration, and conflict resolution, fostering a
harmonious work environment.

4. Enhancing Communication: Coordination promotes open communication

channels among different levels of management, departments, and
employees. Clear communication of goals, expectations, and feedback
ensures mutual understanding and alignment of efforts towards common
objectives.

5. Adaptability to Change: In today's dynamic business environment,

organizations need to be agile and adaptable to changes in market
conditions, technology, or regulations. Coordination enables timely
adjustments and responses to emerging challenges or opportunities,
ensuring organizational agility and resilience.
6. Facilitating Decision Making: Coordination provides the necessary
information and insights for informed decision-making at all levels of the
organization. It helps in identifying priorities, evaluating alternatives, and
implementing decisions effectively to achieve desired outcomes.

7. Promoting Innovation and Creativity: Effective coordination encourages

collaboration and cross-functional teamwork, fostering a culture of
innovation and creativity within the organization. By bringing together
diverse perspectives and expertise, coordination stimulates the generation
of new ideas and solutions.

8. Ensuring Customer Satisfaction: Coordination plays a crucial role in

delivering products or services that meet or exceed customer expectations.
By aligning internal processes and resources, organizations can consistently
deliver high-quality products or services promptly, enhancing customer
satisfaction and loyalty.

In summary, coordination is essential for the successful functioning of an

organization by integrating activities, optimizing resources, resolving
conflicts, enhancing communication, adapting to change, facilitating
decision-making, promoting innovation, and ensuring customer
satisfaction. Without coordination, organizations may struggle to achieve
their goals efficiently and may face challenges in maintaining
competitiveness in the dynamic business landscape.
8. Write about different leadership styles.
**Leadership: Meaning, Styles, and Importance**

Leadership style refers to the approach or manner in which a leader interacts

with and influences their team members to achieve organizational goals.
Different leadership styles are characterized by varying degrees of direction,
control, communication, and decision-making. Understanding the various
leadership styles can help leaders adapt their approach to different situations
and effectively lead their teams towards success.

**Introduction:**

Leadership is a fundamental aspect of human society, present in various

forms and contexts, from politics to business and beyond. In essence, it is
the process of influencing others towards the attainment of a common goal
or purpose. This lesson aims to explore the meaning of leadership, its
importance in organizational settings, and the various styles of leadership
that leaders adopt to guide their teams.

**Meaning and Definition of Leadership:**

Leadership can be defined as the ability to inspire, motivate, and guide

individuals or groups towards achieving shared objectives. It involves
influencing the behavior of others through effective communication,
direction, and example-setting. According to management guru Peter
Drucker, leadership entails elevating individuals' vision, performance, and
personality beyond their usual limitations.

**Styles of Leadership:**

Leadership styles refer to the behavioral patterns that leaders exhibit in their
roles. Different leaders adopt different styles based on their philosophies,
personalities, experiences, and values. Three primary leadership styles are
widely recognized:

1. **Autocratic or Authoritarian Style:** This style is characterized by

centralized power and decision-making authority in the hands of the leader.
The autocratic leader exercises complete control over subordinates, issuing
directives and expecting strict compliance. While this style facilitates quick
decision-making, it can lead to low morale and resistance among team
members.

2. **Democratic or Participative Style:** In contrast to autocracy,

democratic leadership involves decentralizing power and fostering
collaboration among team members. Leaders encourage participation, input,
and discussion, empowering subordinates to contribute to decision-making
processes. This style promotes engagement, creativity, and job satisfaction
among employees.

3. **Free-Rein or Laissez-Faire Style:** This leadership style entails

minimal interference from the leader, allowing team members to operate
with autonomy and freedom. The leader serves as a facilitator rather than a
directive force, enabling individuals to take ownership of their tasks and
decisions. While this approach promotes independence and creativity, it
may lack direction and cohesion without strong leadership guidance.

**Importance of Leadership:**

Leadership plays a crucial role in organizational success and growth. It

serves several essential functions:

1. **Coordination:** Effective leadership ensures alignment and

coordination among team members, maximizing productivity and efficiency
in achieving organizational goals.

2. **Motivation:** Leaders inspire and motivate employees to perform at

their best, fostering a positive work culture and driving employee
engagement and commitment.

3. **Decision Making:** Leaders facilitate decision-making processes,

guiding teams towards informed choices that benefit the organization as a
whole.

4. **Innovation:** Through visionary leadership, organizations can foster

innovation and creativity, staying ahead of competitors and adapting to
changing market dynamics.
5. **Conflict Resolution:** Leaders mediate conflicts and address
interpersonal issues within teams, promoting harmony and collaboration in
the workplace.

Leadership is a vital aspect of organizational management, influencing team

dynamics, productivity, and overall performance. By understanding the
different leadership styles and their implications, leaders can adapt their
approaches to suit various situations and effectively guide their teams
towards success. Ultimately, effective leadership is essential for achieving
organizational objectives and fostering a positive work environment
conducive to growth and innovation.
9. What are the determinants of Personality?

**Understanding Personality and Its Determinants**

**Introduction:**

The study of personality has long been a significant area of interest in

understanding human behavior. Personality influences various aspects of
individuals' lives, including their behavior, perceptions, attitudes, and
relationships. In the context of organizations, understanding personality
types is crucial as it impacts team dynamics, collaboration, and overall
organizational culture. This lesson delves into the concept of personality, its
determinants, and its implications for organizational behavior.

**Personality: Definition and Significance:**

Personality can be defined as the sum total of an individual's characteristic

patterns of thinking, feeling, and behaving. It encompasses how individuals
react and interact with others in different situations. Understanding
personality is essential because it shapes behavior, influences perceptions
and attitudes, and affects interpersonal relationships. Individuals with
similar personality types often find it easier to work together, while those
with contrasting personalities may experience conflicts and challenges in
collaboration.

**Personality Determinants:**

Several factors contribute to the development of an individual's personality:

1. **Heredity:** Heredity plays a significant role in determining an

individual's personality. It encompasses genetic factors that are inherited
from one's parents and influence physical characteristics, temperament,
energy levels, and biological rhythms. While hereditary traits provide a
foundation for personality development, they interact with environmental
influences to shape an individual's overall personality.

2. **Environment:** Environmental factors exert a significant influence on

personality formation. This includes the cultural norms, values, and
attitudes prevalent in the environment in which an individual is raised.
Family upbringing, social groups, educational institutions, and societal
influences contribute to shaping personality traits and behaviors. Cultural
differences may lead to variations in personality expression and influence
individuals' adaptation to different social contexts.

3. **Situation:** The situational context also plays a role in shaping an

individual's personality. While personality traits tend to be relatively stable
over time, they can manifest differently in various situations. Different
environments and social settings may elicit different aspects of an
individual's personality. Additionally, organizations play a crucial role in
shaping employees' personalities through the socialization process.

**Organizational Socialization:**

Organizational socialization refers to the process through which individuals

adapt to the norms, values, and practices of an organization. It involves
changes in attitudes, values, and behaviors to align with the organizational
culture and expectations. Key characteristics of organizational socialization
include:

- **Change of Attitudes, Values, and Behaviors:** Employees undergo a

transition in their beliefs, attitudes, and behaviors as they assimilate into the
organizational culture and adapt to its norms.
- **Continuity of Socialization Over Time:** Socialization is an ongoing
process that extends beyond the initial orientation period, as employees
continue to integrate into the organization over time.
- **Adjustment to New Roles and Practices:** New recruits learn to
navigate their roles, work groups, and organizational practices, adjusting to
the expectations and demands of their job.
- **Mutual Influence:** Socialization involves interaction between new
employees and their managers, as well as with other members of the
organization. This mutual influence shapes individuals' perceptions,
behaviors, and sense of belonging within the organization.

Personality is a complex construct shaped by a combination of

hereditary, environmental, and situational factors. Understanding the
determinants of personality is essential for comprehending individual
behavior and interactions within organizational settings.
10. Define organizational conflict. What are the sources of
organizational conflict?
**Understanding Organizational Conflict: Sources, Types, and
Resolution**

**Introduction:**

Organizational conflict is an inevitable aspect of workplace dynamics,

arising from differences in goals, interests, values, or perceptions among
individuals or groups within an organization. Conflict can manifest in
various forms and have both positive and negative implications for
organizational effectiveness and productivity. This discussion explores the
definition of organizational conflict, its sources, types, and strategies for
resolution.

**Definition of Organizational Conflict:**

Organizational conflict refers to disagreements, tensions, or disputes that

arise within or between groups or individuals in an organization. It occurs
when there is a perceived incompatibility between the goals, interests, or
values of different parties, leading to friction, resistance, or competition.
Conflict may arise at different levels of the organization, including
interpersonal conflicts between individuals, intragroup conflicts within
teams or departments, or intergroup conflicts between different units or
divisions.

**Sources of Organizational Conflict:**

Organizational conflict can stem from various sources, including:

1. **Resource Allocation:** Competition for scarce resources, such as

budgetary allocations, manpower, or physical space, can lead to conflict
within an organization. Differences in priorities, needs, or preferences may
result in disputes over the distribution or allocation of resources.

2. **Interpersonal Differences:** Conflicts may arise due to interpersonal

differences in personality, communication styles, or work habits.
Mismatched expectations, misunderstandings, or perceived slights can
escalate into interpersonal conflicts, affecting relationships and
collaboration among team members.

3. **Role Ambiguity and Role Conflict:** Unclear roles, responsibilities,

or expectations can create ambiguity and confusion, leading to role conflict
within teams or between individuals and supervisors. Misalignment
between job roles and organizational objectives can result in tensions and
disagreements over task allocation, decision-making authority, or
performance expectations.

4. **Organizational Change:** Organizational change initiatives, such as

restructuring, mergers, or technological advancements, can trigger conflicts
as employees adapt to new roles, processes, or systems. Resistance to
change, fear of job insecurity, or disruptions to established routines may fuel
resistance and opposition among employees.

5. **Cultural Differences:** Diversity in cultural backgrounds, values, or

communication norms can lead to misunderstandings and conflicts in
multicultural workplaces. Differences in perspectives, attitudes, or beliefs
may result in clashes over work practices, decision-making processes, or
interpersonal interactions.

6. **Leadership Styles:** Variations in leadership styles and approaches

can contribute to conflicts within teams or between managers and
subordinates. Authoritarian leadership styles may lead to resentment and
resistance, while participative leadership styles may foster collaboration and
engagement.

7. **Goal Incompatibility:** Conflicts may arise when individuals or

groups pursue divergent or conflicting goals within the organization.
Misalignment between personal or departmental objectives and
organizational goals can lead to competition, turf wars, or resistance to
collaborative efforts.

Organizational conflict is a common phenomenon in workplace

environments, stemming from various sources such as resource allocation,
interpersonal differences, role ambiguity, organizational change, cultural
diversity, leadership styles, and goal incompatibility. While conflict can
disrupt productivity and collaboration, it also presents opportunities for
innovation, growth, and organizational learning when managed effectively.
By understanding the sources and types of conflict, organizations can
implement strategies for conflict resolution, including communication,
negotiation, mediation, and collaborative problem-solving, to promote a
harmonious and productive work environment.