Organization and Management JUNE 2010 :

Question 1 :Do you agree with the following statements? Write 'Yes' or 'No' giving proper reasoning in support of your answer. No marks will be awarded for just mentioning 'yes' or 'no'. (a) Organization is not a function, but a process. (b) Under functional organization structure, the authority flows from top to bottom. (c) A committee is an organization which has precise function. (d) Division of labour increases the efficiency of the labourer. (e) Perception means an individual view of reality. (f) The organization, in general is a social system composed of several interacting parts. (g) The 'mission' of an organization refers to the scope of the operation in terms of products or services or clients. (h) The organizational performance is judged in terms of goals. (i) Centralization is nothing but an advanced form of delegation of authority. Answer 1: The answers are given in an elaborate manner for better understanding. In examination, you can modify it depending upon the marks attached with the question. (a) Yes. Organization as a process means the organization defines and divides the activities to be performed, grouping them, deciding who is to perform and to whom to report. Organization is process of identifying and grouping of activities to be performed, assigning duties and responsibilities and delegation of authority. (b) No. Scalar processes refer to chain of command from top to bottom of organization. It consists of authority flowing down and accountability going up. It is based on unity of command which means each subordinate would report to one superior only. The functional process is concerned with departmentation on the basis of similarity and compatibility. The line and staff organisation is an example of functional process. In this, the executive in a particular function issues orders / directions throughout the organization in respect of such function. (c) Yes. It is established to perform a particular function or to deal with a particular problem. (d) Yes. Division of labour divides the task to many functions. It leads to specialization of that particular segment of task and thus increases the efficiency of labourer. (e) Yes. In this process the inputs received by the perceiver are examined through selection and interpretation. (f) Yes. The people working in the organization give it a social look. They seek some rewards for their inputs. (g) No. Mission is much more than scope of operation. Mission statement of an organisation is timeless and replies the question '' What business we are in?'' and tells what it is, why it exists and the unique contribution it can make. (h) Yes. The goals are specific targets to be achieved in a specific period. The goals are parts or segments of overall objectives.

(i) No. The advanced form of delegation of authority is called decentralization. Centralization is concentration of power at a few points at the top. Question 2 : (a)What do you mean by the term '' delegation of authority'' ? What are the basic steps in delegation ? Answer 2 (a) : This is repeated question of Dec 2009 ( 7 a). Answer is already given in page S.1.117 of last scanner. Question 2 (b) : Define line and staff organization. Explain the reasons for conflict between line and staff. Answer 2 (b) : For first part please see Chapter 1 : 2005 Dec 8(b) on page S 1.5. For second part of reasons of conflicts please see Chapter 1 : Descriptive question 2008 June 6 on page S 1.12. Question 3 : (a) What are the factors influencing attitudes ? Answer 3 (a) : The main factors influencing attitudes are as follows : 1. Personality Factors : The personal beliefs, ideas, values, information play a major role in forming the attitude of a person. His physical and psychological factors determine his attitude to a great extent. His / Her attitude may change if any of these factors undergo some change. 2. Social Factors : Family, religion, social class, culture and other social factors may force a person to form and maintain a particular attitude. 3. Organizational Factors : The organizational factors like nature of job, incentives and rewards related with job, office environment, quality of superiors and subordinates influence the attitude of a person. A person is given a job matching with his personality, his attitude may go up and vice versa. 4. Economic Factors : This are also very powerful factors. If economics of a job is exciting, the worker may make compromises on other factors. 5. Political Factors : The party in power, the attachment of worker towards the ideology of a particular party, political stability and behaviour of political leaders are the factors which influence the attitudes of people. Question 3 (b) : State the functions of organizational goals. Answer 3 (b) : The functions of organizational goals are many. Some of them are : (i) They provide the standards against which actual performance can be measured and deviations may be analysed. (ii) They direct and motivate the activities to be performed (iii) They make the overall objective possible and within reach (iv) They act as the measurement of success of the organization. Question 3 (c) : What are the determinants of personality ? Answer 3 (c) : (Suggestive reading : page 78 of study material) The factors which shape the personality of an individual are as follows : (i) Biological Factors : The personality of a person is chiefly defined by his / her parents and ancestors. The face, colour, height, physical structure etc are all related to biology of his parents. His intelligence, diligence, character are greatly related to his biological factors. (ii) Family and Social Factors : Parents, close family members, teachers and neighbors etc exercise great influence over one's personality in many ways. The ideas, values, culture, customs etc. granted by them have power to shape his personality for the whole life.

(iii) Cultural Factors : There is no direct relationship between culture and personality. The personality may be totally different or rather opposite to what the culture demands. (iv) Situational Factors : Situations may force a altogether change in personality. A dacoit may become saint or a saint may become dacoit in response to a situation. There may be favourable or unfavourable, positive or negative impact on the personality in some situation. Question 4(a) : Match the column I with column II : Column I Column II (i) Industrial Relations A. Subsidised Canteen (ii) Discipline B. Estimates of future conditions (iii) Training C. Determine personnel needs (iv) Non-financial incentive D. Sensitivity training (v) Development E. Familiarization with organization (vi) Forecasts F. Emotions (vii) Information G. Vroom's Expectancy Theory (viii) Manpower planning H. Creates obedience (ix) Induction I. Basic requirements for decision Making (x) Barriers to communication J. Growth of the individual (xi) Motivation K. Continuous process (xii) T Group L. Industrial peace and democracy Answer 4 : Column I (i) Industrial Relations (ii) Discipline (iii) Training (iv) Non-financial incentive (v) Development (vi) Forecasts (vii) Information (viii) Manpower planning (ix) Induction (x) Barriers to communication (xi) Motivation (xii) T Group Column II L. Industrial peace and democracy H. Creates obedience K. Continuous process A. Subsidised Canteen J. Growth of the individual B. Estimates of future conditions I. Basic requirements for decision Making C. Determine personnel needs E. Familiarization with organization F. Emotions G. Vroom's Expectancy Theory D. Sensitivity training

Question 4 (b) : Fill in the blanks with appropriate words (a) As per Theory Y, work is . (b) In the area of inventory control is an example of critical point control. (c) Break even analysis is adopted as a tool of .. (d) Planning is looking ahead whereas control is (e) Authority can be delegated but no (f) Centralization implies the .. at the top level of the organization.

(g) Leadership is the which binds a group together. (h) . Leadership style permits quick decision making. (i) Informal communication system is known as .. Answer 4 (b) : (a) natural like rest or play (b) ABC analysis (c) Profit planning (d) Looking back (e) responsibility (f) Concentration of authority (g) Human factor (h) Autocratic (i) Grapevine. Question 4 (c) : State what the following abbreviations stand for : (i) GD (ii) MBE (iii) OD (iv) PESB (v) NRF (vi) DC (vii) WTO (viii) POSDCORB Answer 4 (c) : (i) GD : Group Dynamics or Group Discussion (ii) MBE : Management by Exceptions (iii) OD : Organization Development (iv) PESB : Public Enterprises Selection Board (v) NRF : National Relief Fund or National Renewal Fund (vi) DC : Disinvestment Commission (vii) WTO : Word Trade Organization (viii) : POSDCORB : Planning, organizing, Staffing, Directing, Coordinating. Reporting and Budgeting. Question 4 (d) : Define the following in just one sentence : (i) Human Resources Management (ii) Job Analysis (iii) Vestibule Training (iv) MBO (v) Group Dynamics. Answer 4 (d) : (i) Human Resources Management : It is the management of the people working in the organization. (ii) Job Analysis : It is conducted to find out the best way to accomplish a job. (iii) Vestibule Training : (vestibule means entrance) : It is the initial training imparted to a beginner to let him know his job. It is simulation of actual job. (iv) MBO : It stands for management by objective. The performance is measured by the fulfillment of objective. (v) : Group Dynamics : It refers to the forces operating in a group. Question 5 : 'Public sector enterprises should generate adequate surplus to assist economic development.'' Do you agree ? Answer 5 : Yes I agree. Not only public sector enterprises but private sector enterprises as well and in general all enterprises should generate adequate surplus. The surplus so generated may at first point be used for the growth of enterprise and at later will cause the overall economic development of the entire nation. PSU have larger dimensions in comparison to other enterprises and following reasons may be presented in support of generation of adequate surplus : 1. This will lead to self sufficiency in many sectors. 2. It may cause expansion of basic industries. 3. Employment generation. 4. Availability of economical products and services with lower cost and higher efficiency and performance, 5. Financial support to national plans. 6. Development of backward areas. The student may quote more reasons as well. Question 6: Explain the sequential set of steps in the process of decision making. Answer 6: (Suggestive reading : Page 222 of study material). This is repeated question which has been asked four times earlier. The answer is available on page S 1.104 chapter 13 of solved scanner.

Question 7 : (a) What do you understand by inter- group conflicts? How they can be avoided ? Answer 7 (a) : (suggestive reading : page 114 of study material) As the name indicates, it is the conflict between the groups within the same organization. There are various groups formal and informal both which may enter into conflict on some issues. The usual example being conflict between experts and executives. The executives may not find it practicable to follow the suggestions of expert and a conflict may ensue. Sometimes inter-individual conflict may develop into inter-group conflict. Inter- group conflict may arise due to following reasons : 1. Incompatible goals (incompatible means mismatched or unsuited) 2. Sharing of resources 3. Joint decision making process 4. Uncertainty over incentives 5. Economics of operation etc. The inter-group conflict may be avoided by some measures as given below : 1. Rearrangement of structure and resources 2. Problem solving 3. Compromise 4. Confrontation 5. Avoidance. Question 7 (b) What are the barriers to effective communication ? How to remove these barriers ? Answer 7 (b) : This is repeat of June 2005 (6). The answer is already available in chapter 14 page S.1.110 of solved scanner. Question 8 : Write Short notes on : (a) Fundamental principles of Taylor's scientific management. (b) Steps in planning ; (c) Qualities of a successful leader (d) Statutory duties of Board of Directors (e) Importance of public enterprises. Answer : (a) Fundamental principles of Taylor's scientific management. (suggestive reading : page 156 of study material) Taylor has given certain basic principles of scientific management which are as follows :

1. Replacing rule of thumb with science : He suggested that the rule of thumb is arbitrary and should be replaced with scientifically established figures in all aspects of managing. All aspects of work should be measured precisely on scientific parameters rather than on vague estimates. 2. Harmony in group : Synergic effect can only be experienced when the entire group is in harmony. All conflict, discord and difference should be resolved by the management in amicable manner so as to achieve the maximum possible output.

3. Co-operation : Scientific management is based on mutual cooperation, trust, goodwill and confidence. In his own words '' substitution of war with peace, hearty and brotherly cooperation for contentment and strife, replacement of suspicious watchfulness with mutual confidence, of becoming friends instead of enemies. It is along this line, I say, that scientific management must be developed.'' 4. Maximum output : It should be a continuous process to increase the production and productivity. Neither the management nor the worker should be allowed to restrict production in any manner for any reason whatsoever. 5. Development of workers : Development of workers calls for scientific selection and imparting proper training to them. In scientific management all workers should be developed to maximum possible extent for the progress and prosperity of themselves and the company.
(b) Steps in Planning : See Chapter 12 of solved scanner page S 1.97. It was earlier asked in 2003 June (3) and 2007 June (5). (c) Qualities of a successful leader : Repeat of 2004 Dec (8b). See Chapter 16 page S.1.119. (d) The statutory duties of BOD are as follows: (a) Disclosure of relevant facts : The BOD should ensure that the company makes disclosure of all relevant facts and figures in the prospectus. (b) Holding qualification shares : The Directors should purchase and hold the required qualification shares. (c) Attending Board Meetings : The Directors should attend the Board meeting regularly. (d) Getting permission of Central Govt. for raising loans : The directors should obtain permission from Central Govt. for taking loans from the company. (e) Disclosure of personal interest : It is duty of every director to disclose personal interest in contracts to be entered into by the company. (f) Holding the meetings : To hold statutory meetings, annual general meetings, extraordinary general meeting according to provisions of the Act.

(g) Forwarding Statutory report : to forward day copy of statutory report at least 21 days before the statutory meeting to every member of the company and to the Registrar. (h) Filing return of allotment : To file a return of allotment to the Registrar within thirty days of the allotment of shares. (i) Paying dividend to shareholders : (j) Maintaining required books and records : (e) Importance of Public Enterprises :

In general the public enterprises are those enterprises for which the government provides the capital and controls the management. The rationale or the objectives or the importance behind establishing public sector in India, are as follows : 1) Elimination of monopoly of business houses : The evils of monopoly are checked, controlled and nullified by public sector enterprises. It attacks the concentration of power in a few hands. 2) Promotion of social welfare : It is the basic component of national policy. It supplies the fundamental necessities of life at reasonable prices. It aims at social welfare. Its chief objectives are socio-economic in nature. 3) Better condition and treatment to employees : It eliminates the exploitation of labour, job uncertainty, poor working terms and conditions, 4) Economies of scale : Large scale production results in lowering of cost per unit of product. Public sectors are capable of availing all the benefits of economies of production, operation and distribution. 5) Employment opportunities : It has potential of generating employment of high magnitude. This can also ensure employment of unutilised resources for the benefit of the society. 6) Overall Economic Development : The main idea is economic development of the public at large. The surplus profit generated may be used for socio-economic activities for the benefit of people. 7) Planned Growth with industrialization : The private sector is unlikely to invest in capital intensive projects because of huge requirements of funds and delayed and unattractive rate of return. The objective of public undertakings is to correct such imbalances in industrial development.