Feb drive 2011
Bachelor of Business Administration-BBA Semester 6
BB0031 - Management development
Marks 30 (2 CREDITS )
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.
Q. 1. What are the different types of decisions? Explain with examples
Ans : Decision making is the heart of modern administration. According to M.T. Copeland, administration essentially is a decision making process. Whatever, an administrator does he does through decision making. An administrators life is filled with a constant series of decisions. Everyday hundreds of decisions are made by the administrator consciously or unconsciously. Decisions which are relatively minor are taken almost subconsciously following rules and patterns of behavior established over many previous encounters with the problem. All major decisions however are taken very carefully and consciously. Such decisions usually involve the application of considerable human judgment and experience before a solution is obtained.
Types of Decisions:-
1. Organisational and personal decisions:-
Organizational decisions are made to advance the interest of the organization. When an executive acts formally in his expected role in an organization he makes organizational decisions making become organizations official decisions making power is delegated to others also and calls for decisions at subordinate levels supporting it.
An executive who charges jobs or organization is making a personal decision. Decisions to many to buy a house, to purchase a car are examples of personal decisions. Such decisions life of an executive but may affect the personal life of an executive but may affect the organization sometimes directly or indirectly.
2. Individual and group decisions:-
When a decision is taken by an individual in the organization, it is known as individual decision. These are concerned mainly with routine problems for which broad policies are available. Such decisions are generally taken in small organizations and in those organizations where autocratic style of management prevails.
Decisions taken by the board of directors or a committee are, examples of group decisions. Group decision making generally results in more realistic and well balanced decisions and encourages participative decision making.
3. Routine and strategic decisions:-
Routine decisions are made repetitively following certain established rules, procedures and policies. They do not require collection of new data and can be taken without much deliberations. Such decisions are taken generally by the executives at the middle and lower management levels.
Launching a new programme, location of a new plant, installation of a computer system are examples of strategic decisions.
4. Programme and non-programme decisions:-
Programmed decisions are concerned with relatively routine and repetitive problems. Information on these problems is already available and can be processed in a pre-planned manner. Such decisions have short-term impact and are relatively simply. They are, made at lower levels of management. These decisions require little thought and judgment. The decision maker identifiesthe problem and applies the predetermined solution. For example, if an employee is habitually late comer he can easily be dealt with under the established procedure. Non-programmed decisions deal with unique or unusual problems.
To order firing on a rioting mob, to impose curfew in the city, opening of a new branch are examples of such decisions. The ability to make good non-programmed decisions help to distinguish effective executives from non effective executives.
Q. 2 Discuss Line organizations in detail.
Ans : Line organization:-
This is the oldest form of organisation. This is known by different names, i.e. military, vertical, scalar, departmental, organisation. All other types of organisation structure have mostly been either modifications of this organisation. The concept of line organisation holds that in any organization derived from a scalar process, there must be a single head who commands it. Although an executive can delegate authority, he has ultimate responsibility for results. According to McFarland, "Line structure consists of the direct vertical relationship which connect the positions and tasks of each level with those above and below it." According to Allen, "Organisationally, the line is the chain of command that extends from the board of directors through the various delegations and redelegation of authority and responsibility to the point where the primary activities of the enterprise are performed."
Features of line organisation:
(1) There are many levels of management depending upon the scale of business and decision-
making ability of managers. Each level of management has equal rights.
(2) There is vertical flow of authority and responsibility. The lower positions derive authority from y
the positions above them.
(3) There is unity of command. Every person is accountable to only one person (his immediate boss)
and none else. A person receives orders only from his immediate boss.
(4) There is scalar chain in line organisation. The flow of orders, communication of suggestions and
complaints etc. are made as it is in the case of a ladder. One cannot defy the claim.
(5) There is limit on subordinates under one manager. A manager has control only over the
subordinates of his department.
Advantages of Line Organization:-
1.Simplest- It is the most simple and oldest method of administration.
2.Unity of Command- In these organizations, superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom.
3.Better discipline- The control is unified and concentrates on one person and therefore, he can independently make decisions of his own. Unified control ensures better discipline.
Disadvantages of Line Organization:-
1.Over reliance- The line executive’s decisions are implemented to the bottom. This results in over-relying on the line officials.
2.Lack of specialization- A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advices whatever decisions are taken by line managers are implemented in the same way.
3.Inadequate communication- The policies and strategies which are framed by the top authority are carried out in the same way. This leaves no scope for communication from the other end. The complaints and suggestions of lower authority are not communicated back to the top authority. So there is one way communication.
Q. 3 Mr. Narayan is Senior Manager HR with BrightShine Paints. He wants to develop a system which helps in drafting the plans and achieving them. It shall also help in improving the communication between the superior and subordinates. Suggest a technique which may help to achieve this. Explain the technique in detail.
Ans : Technique used by Mr. Narayan:-
Mr. Narayan can use the Management by Objective (MBO) Technique:
MBO relies on the defining of objectives for each employee and then to compare and to direct their performance against the objectives which have been set. It aims to increase the performance of the organization by matching organizational goals with the objectives of subordinates throughout the organization. Ideally, employees receive strong input to identify their objectives, time lines for completion, etc. MBO includes continuous tracking of the processes and providing feedback to reach
the objectives. According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and subordinate jointly identify its common goals, define each individual's major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.
There are various management philosophies and types used in the world of business. These types of management differ from one another. In some cases, a few of these management types can be mixed together in order to create something customed for a specific requirement.
1.The management chunks down the organizational goals and assign chunks to senior managers.
2.Senior managers then derive objectives for them to achieve the assigned organizational goals. This is where senior managers assign the objectives to the operational management.
3.Operational management then chunks down their objectives and identify the activities required for achieving the objectives. These sub-objectives and activities are then assigned to rest of the staff.
4.When objectives and activities are assigned, the management gives strong inputs to clearly identify the objectives, time frame for completion, and tracking options.
5.Each objective is properly tracked and the management gives periodic feedback to the objective owner.
6.In most occasions, the organization defines processes and procedures in order to track the objectives and feedback.
7.At the end of the agreed period (usually an year), the objective achievement is reviewed and an appraisal is performed. Usually, the outcomes of this assessment are used to determine the salary increments for year ahead and relevant bonuses to employees.
Figure:- MBO process:
(1) MBO ensures better and more effective management. MBO forces management to think of planning for results, rather than merely planning activities. MBO also force managers to think how the objectives can be achieved and what resources would be required, MBO also provides the standards of control. All these lead to better management.
(2) MBO results clarification in organisational roles and structure and responsibilities of individuals for achieving the goals. Thus various positions are treated as responsibility, authority and resources at their disposal. This process identifies and removes many deficiencies in the organisation.
(3) It reveals organisational deficiencies such as overlapping of authority, ineffective delegation and communication.
(4) It elicits people's commitment for performance.
(5) It furnishes objectivity and reduces the element of pure judgment.