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Winter / November 2011
Master of Business Administration
Semester 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 recognizes the importance of
observing and modeling the behaviors, attitudes, and emotional reactions of others. The four
processes of Social Learning Theory are: a) Attention processes, b) Retention processes, c) Motor
reproduction processes, d) Reinforcement processes
a) Attention processes: Social Cognitive Theory implies that you must pay attention for you to
learn. If you want to learn from the behavior of the model (the person that demonstrates
the behavior), then you should eliminate anything that catches your attention other than
him. Also, the more interesting the model is, the more likely you are to pay full attention to
him and learn.
b) Retention processes: The ability to store information is also an important part 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 to observational learning.
c) Reproduction processes: Once you have paid attention to the model and retained the
information, it is time to actually perform the behavior you observed. Further practice of the
learned behavior leads to improvement and skill advancement.
d) Reinforcement processes: Finally, in order for observational learning to be successful, you
have to be motivated to imitate the behavior that has been modeled. Reinforcement and
punishment play an important role in motivation. While experiencing these motivators can
be highly effective, so can observing other experience some type of reinforcement or
punishment. For example, if you see another student rewarded with extra credit for being to
class on time, you might start to show up a few minutes early each day.
Q2. What are the hindrances that we face in perception?
Ans: Following are the barriers to perception:
a) Selective perception - People selectively interpret what they see on the basis of their
interests, background, experience, knowledge, exposure, and attitudes. The tendency to see

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what we want to see using short cuts can make us draw unwarranted conclusions from an
ambiguous situation.
b) Halo Effect – This effect occurs when we draw a general impression on the basis of a single
characteristic. But what this experiment demonstrates is that although we can understand
the halo effect intellectually, we often have no idea when it is actually happening. This is
what makes it such a useful effect for marketers and politicians. We quite naturally make the
kinds of adjustments demonstrated in this experiment without even realising it. And then,
even when it's pointed out to us, we may well still deny it.
c) Contrast Effect – Individuals do not evaluate a person in isolation. Their reaction to one
person is influenced by other people they have encountered recently.
d) Projection – This tendency to attribute one`s own characteristics to other people is called
projection. This too can distort perceptions made about others. When managers engage in
projection, they compromise their ability to respond to individual differences. They tend to
see people as more homogeneous than they really are.
e) Stereotyping – Judging someone on the basis of our perception of the group to which he or
she belongs. Stereotypes are generalizations about a group of people whereby we attribute
a defined set of characteristics to this group. These classifications can be positive or
negative, such as when various nationalities are stereotyped as friendly or unfriendly. It is
easier to create stereotypes when there is a clearly visible and consistent attribute that can
easily be recognized. This is why people of colour, police and women are so easily
stereotyped. People from stereotyped groups can find this very disturbing as they
experience an apprehension (stereotype threat) of being treated unfairly.
f) First-Impression Error - is the tendency to form lasting opinions about an individual based on
initial perceptions. We tend to remember what we perceive first about a person and
sometimes we are quite reluctant to change 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 the behavior of others (French & Raven,
1962). Managers derive power from both organizational and individual sources. There two kinds of
power – Formal and Informal.
Formal Power consists of the following bases - Coercive, Reward, Legitimate, Informational
Informal Power consists of the following bases – Expert, Rational persuasion, Referent power,
Charismatic power
Positional power - Also called "legitimate power", it is the power of an individual because of the
relative position and duties of the holder of the position within an organization. Legitimate power is
formal authority delegated to the holder of the position. It is usually accompanied by various
attributes of power such as uniforms, offices etc. This is the most obvious and also the most
important kind of power.
Referent power - Referent power is the power or ability of individuals to attract others and build
loyalty. It's based on the charisma and interpersonal skills of the power holder. A person may be

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admired because of specific personal trait, and this admiration creates the opportunity for
interpersonal influence. Here the person under power desires to identify with these personal
qualities, and gains satisfaction from being an accepted follower. Nationalism and patriotism count
towards an intangible sort of referent power. For example, soldiers fight in wars to defend the
honour of the country. This is the second least obvious power, but the most effective. Advertisers
have long used the referent power of sports figures for products endorsements, for example. The
charismatic appeal of the sports star supposedly leads to an acceptance of the endorsement,
although the individual may have little real credibility outside the sports arena.
Expert power - Expert power is an individual's power deriving from the skills or expertise of the
person and the organization's needs for those skills and expertise. Unlike the others, this type of
power is usually highly specific and limited to the particular area in which the expert is trained and
qualified.
Reward power - Reward power depends on the ability of the power wielder to confer valued
material rewards, it refers to the degree to which the individual can 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 also ineffective if abused. People who abuse reward power can become pushy
or became reprimanded for being too forthcoming or 'moving things too quickly'.
Coercive power - Coercive power is the application of negative influences. It includes the ability to
demote or to withhold other rewards. The desire for valued rewards or the fear of having them
withheld that ensures the obedience of those under power. Coercive power tends to be the most
obvious but least effective form of power as it builds resentment and resistance from the people
who experience it.
Informational power - Informational power is based on the potential use of informational resources.
This influence can occur through such means as rational argument, persuasion, or factual data.
Members of a group can make information into power by giving it to others who need it, by keeping
it to themselves, by organizing it in some way, by increasing it, or even by falsifying it.
Q4. Ms. Chanchal Das Gupta is a recruitment specialist. For the post of QC Manager, she interviews
three candidates. Given below are the physical characteristics of the candidates.
Candidate Physical Characteristics
Mr.Ravi
Muscular, thick skin, rectangular shaped
Mr.Gineesh Thin, delicate build, large brain, tall
Mr.Ramgopal Soft, round shaped, underdeveloped muscles
From the above descriptions, what personality traits can Ms. Chanchal derive out of the candidates
as per Sheldon’s theory of personality?
Ans: Per Sheldon`s theory of personality, below are the traits that Ms. Chanchal can derive:

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• Mr. Ravi represents Mesomorph body type. He is “well-proportioned”. Psychologically he is
Adventurous, Courageous, Indifferent to what others think or want, Assertive/bold, Zest for
physical activity, Competitive, With a desire for power/dominance, And a love of risk/chance
• Mr. Gineesh represents Ectomorph body type. Psychologically he is Self-conscious, Private,
Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained, Thoughtful
• Mr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving,
Love of food, Tolerant, Even-tempered, Good humoured, Relaxed, With a love of comfort,
And has a need for affection
Q5. What are the consequences of conflict in organisations?
Ans: Organizational Conflict can have both positive and negative consequences.
Negative consequences: Increased costs (time, money) devoted to dealing with the conflict, wasted
resources and energy spent dealing with the conflict, Decreased productivity, Lowered motivation,
Decreased morale, Poor decision-making, Withdrawal and miscommunication or non-
communication, Complaints and blaming, Backstabbing and gossip, Attitudes of distrust and hostility
(that may influence all future interactions, (Permanent) erosion to personal, work, and community
relationships, Harm to others not directly involved in the conflict, Damaged emotional and
psychological well-being of those involved in the conflict, Dissatisfaction and stress.
Positive consequences: Leads to new ideas, Stimulates creativity, Motivates change, Promotes
organizational vitality, Helps individuals and groups to establish identities, Serves as a safety valve to
indicate problems, Builds cooperation, Helps individuals to develop skills on how to manage
conflicts, Improving quality decisions.
Q6. Explain sensitivity training.
Ans: sensitivity training is a psychological technique in which intensive group discussion and
interaction are used to increase individual awareness of self and others; it is practiced in a variety of
forms under such names as T-group, encounter group, human relations, and group-
dynamics training. The group is usually small and unstructured and chooses its own goals. A trained
leader is generally present to help maintain a psychologically safe atmosphere in which participants
feel free to express themselves and experiment with new ways of dealing with others. The leader
remains as much as possible outside the discussion. Issues are raised by the group members, and
their interactions evoke a wide variety of feelings. The leader encourages participants to examine
verbally their own and others’ reactions. It is believed that as mutual trust is developed,
interpersonal communication increases, and eventually attitudes will change and be carried over
into relations outside the group. Often, however, these changes do not endure.
Sensitivity training seems to be most effective if sessions are concentrated and uninterrupted, as in
several days of continuous meetings. Sensitivity-training methods derived in large part from those
of group psychotherapy. They have been applied to a wide range of social problems (as in business
and industry) in an effort to enhance trust and communication among individuals and groups
throughout an organization.

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Winter / November 2011
Master of Business Administration
Semester I
MB0038 –Management Process & Organizational Behaviour
- 4 Credits
(Book ID:B1127)
Assignment
Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. State the characteristics of management.
Ans: The main characteristics of management are as follows:
I. Management is an activity: Management is an activity which is concerned with the efficient
utilization of human and non-human resources of production.
II. Invisible Force: Management is an invisible force. Its existence can be felt through the enterprise
or institution it is managing.
III. Goal Oriented: Management is goal oriented as it aims to achieve some definite goals and
objectives. According to the Haimann, "Effective management is always management by objectives".
Managers and other personnel officers apply their knowledge, experience and skills to achieve the
desired objectives.
IV. Accomplishment through the efforts of Others: Managers cannot do everything themselves. They
must have the necessary ability and skills to get work accomplished through the efforts of others.
V. Universal activity: Management is universal. Management is required in all types or organizations.
Wherever there are some activities, there is management. The basic principles of management are
universal and can be applied anywhere and in every field, such as business, social, religious, cultural,
sports, administration, educational, politics or military.
VI. Art as well as Science: Management is both an art and a science. It is a science as it has an
organized body of knowledge which contains certain universal truths and an art as managing
requires certain skills which apply more or less in every situation.
VII. Multidisciplinary Knowledge: Though management is a distinct discipline, it contains principles
drawn from many social sciences like psychology, sociology etc.
VIII. Management is distinct from ownership: In modern times, there is a divorce of management
from ownership. Today, big corporations are owned by a vast number of shareholders while their
management is in the hands of paid qualified, competent and experienced managerial personnel.
IX. Need at all levels: According to the nature of task and scope of authority, management is needed
at all levels of the organization, i.e., top level, middle and lower level.

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X. Integrated process: Management is an integrated process. It integrates the men, machine and
material to carry out the operations of the enterprise efficiently and successfully. This integrating
process is result oriented.
Q2. Mr. Suresh Kumar is the VP- HR of a leading Financial services company. He is having a meeting
with Ms. Rejani Chandran leading HR consultant. Mr. Suresh is concerned about creating an
environment that helps in increasing the job satisfaction amongst employees. Assume that you are
Ms. Rejani, the HR consultant. What suggestions you will give to Mr. Suresh, for creating an
environment that increases job satisfaction?
Ans: Below are the suggestions for creating an environment with increased job satisfaction from an
HR perspective:
• Provide workers with responsibility-and then let them use it
• Show respect
• Provide a positive working environment
• Reward and recognition
• Involve and increase employee engagement
• Develop the skills and potential of your workforce
• Evaluate and measure job satisfaction
Q3. Define emotional intelligence. Explain Goleman’s model of emotional intelligence.
Ans: Emotional intelligence (EI) refers to the ability to perceive, control and evaluate emotions.
Some researchers suggest that emotional intelligence can be learned and strengthened, while others
claim it is an inborn characteristic. Since 1990, Peter Salovey and John D. Mayer have been the
leading researchers on emotional intelligence. In their influential article "Emotional Intelligence,"
they defined emotional intelligence as, "the subset of social intelligence that involves the ability to
monitor one's own and others' feelings and emotions, to discriminate among them and to use this
information to guide one's thinking and actions" (1990).
Goleman identified the five 'domains' of EQ as:
1. Knowing your emotions.
2. Managing your own emotions.
3. Motivating yourself.
4. Recognising and understanding other people's emotions.
5. Managing relationships, i.e., managing the emotions of 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 developing our Emotional Intelligence in these areas and the five EQ
domains we can become more productive and successful at what we do, and help others to be more
productive and successful too. The process and outcomes of Emotional Intelligence development
also contain many elements known to reduce stress for individuals and organizations, by decreasing
conflict, improving relationships and understanding, and increasing stability, continuity and
harmony.

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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 the needs of team
members, their interests, and areas of personal development when deciding how best to
accomplish a task.
• Concern for Production – This is the degree to which a leader emphasizes concrete
objectives, organizational efficiency and high productivity 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 assumption that as long as team members are happy
and secure then they will work hard. What tends to result is a work environment that is very
relaxed and fun but where production suffers due to lack of direction and control.
ii. Produce or Perish Leadership – High Production/Low People
Also known as Authoritarian or Compliance Leaders, people in this category believe that
employees are simply a means to an end. Employee needs are always secondary to the need
for efficient and productive workplaces. This type of leader is very autocratic, has strict work
rules, policies, and procedures, and views punishment as the most effective means to
motivate employees.
iii. Impoverished Leadership – Low Production/Low People
This leader is mostly ineffective. He/she has neither a high regard for creating systems for
getting the job done, nor for creating a work environment that is satisfying and motivating.
The result is a place of disorganization, dissatisfaction and disharmony.
iv. Middle-of-the-Road Leadership – Medium Production/Medium People
This style seems to be a balance of the two competing concerns. It may at first appear to be
an ideal compromise. Therein lies the problem, though: When you compromise, you
necessarily give away a bit of each concern so that neither production nor people needs are
fully met. Leaders who use this style settle for average performance and often believe that
this is the most anyone can expect.
v. Team Leadership – High Production/High People
According to the Blake Mouton model, this is the pinnacle of managerial style. These leaders
stress production needs and the needs of the people equally highly. The premise here is that
employees are involved in understanding organizational purpose and determining
production needs. When employees are committed to, and have a stake in the
organization’s success, their needs and production needs coincide. This creates a team
environment based on trust and respect, which leads to high satisfaction and motivation
and, as a result, high production.
Q5. Distinguish between internal and external forces of change.
Ans: Internal Forces:
Poor financial performance
Employee dissatisfaction
Inefficiency of existing business processes and systems
Need to increase profitability
Existence of cultural misfits to organisation goals and objectives

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External Forces:
Changes in technology
Political factors
General macro-economic environment
Changes in consumer tastes, preferences, purchasing patterns & frequencies
Declining market shares due to competition
Q6. 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 and groups to ensure that
effort and attention are focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the organization.
2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was
defined by Fayol as the right to give orders and the power to exact obedience. Responsibility
involves being accountable, and is therefore naturally associated with authority. Whoever
assumes authority also assumes responsibility.
3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties
should be applied judiciously to encourage this common effort.
4. UNITY OF COMMAND: Workers should receive orders from only one manager.
5. UNITY OF DIRECTION: The entire organization should be moving towards a common
objective in a common direction.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of
one person should not take priority over the interests 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 the business, should be considered in determining
a worker’s rate of pay.
8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the
subordinate role. Decentralization is increasing the importance. The degree to which
centralization or decentralization should be adopted depends on the specific organization in
which the manager is working.
9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each
manager, from the first line supervisor to the president, possess certain amounts of authority.
The President possesses the most authority; the first line supervisor the least. Lower level
managers should always keep upper level managers informed of their work activities. The
existence of a scalar chain and adherence to it are necessary if the organization is to be
successful.
10. ORDER: For the sake of efficiency and coordination, all materials and people related to a
specific kind of work should be treated as equally as possible.
11. EQUITY: All employees should be treated as equally as possible.
12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a
high priority of management. Recruitment and Selection Costs, as well as increased product-
reject rates are usually associated with hiring new workers.
13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined
as new or additional work activity undertaken through self direction.
14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings
among employees.

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