Name: SANDHYA S
Roll Number: 2214503765
Programme: MBA
Semester: 1st
Course Name: Management Process and Organisational Behaviour
Course Code: DMBA101
[Link] the concept of Decision Making along with BCG model of planning and decision making.
The way of choosing from alternatives or capitalize on the opportunity is known as Decision Making.
The importance of Decision-Making is, it helps you choose between various option. Before deciding we
need to gather all the information available and differentiate its pros and cons. Then focus on the right steps
that helps in taking right decision.
The process leading to decision is as follows:
1) Premising (make a premise on what is right/wrong and acting on it)
2) Identifying alternatives
3) Evaluating alternatives in relation to the goal sought
4) Decision making
BCG model of planning and decision making:
A BCG matrix is a model used to analyze a business product to aid with long term strategic planning which
helps the organization to identify new growth opportunities and decide how the firm should invest going
forward.
In the above diagram, the Market share is shown X-axis, Growth Rate is shown in y-axis and the four
quadrants consists of Stars, Question Mark, Cash Cows and Dogs.
Stars Quadrant: The business unit or the product with the best market share and generating more
revenue are considered as stars. However, because of high growth rate stars consume large amount of
cash as well.
Question Mark Quadrant: The business unit that have high growth prospectus but a low market
share. They consume a lot of cash but bring little in return.
Cash Cow Quadrant: A cash cow in a product or business unit that generated more cash than it
consumes. Its with a high market share but a low growth prospect.
Dogs Quadrant: The units or products with a low market share and low growth rates. The frequently
break. Neither earning nor consuming much cash. They are generally considered as cash traps because
business have money tied up in them but no returns.
With the help of each quadrants we can evaluate the objective and strategize the business plan. This matrix
helps us prioritize on products to invest or not to. Here are some ways to use BCG Matrix:
If the goal is to focus on innovation, increase your investment in Stars and Question Mark.
No more investment with you, keep it in the same quadrant and leave it alone.
Reduce the investment and take the max cash flow, better suited for cash cow.
If Dogs, invest the amount elsewhere.
Real-life BCG Matrix Example:
In the Apple Products Matrix, as the product attract a modest audience but still have space for growth. I-phone,
tabs and smart watch re the stars since they dominate the market in. Mac Book is a Cash cow since it
experiences low growth and high market share. And I-pad is a Dog since all the features with added features
are present in I-phone.
Limitation:
BCG Matrix doesn’t account any factors beyond market share and growth i.e., why the products or the business
units are succeeding or failing.
2) Discuss the concept of Organizing while having light on the importance of the concept.
Organizing is a function of the management that follows planning. It is a function in which the synchronization
and combination of human, physical and financial resources take place. Therefore, organizational function
helps in achieving the goal.
The term organising means doing these activities in a logical and systematic way so as to get maximum
production. By implication, it also means communicating between various activities to achieve co-ordination.
According to Chester Barnard, “Organizing is a function by which the concern is able to define the role
positions, the jobs related and the co-ordination between authority and responsibility.” Hence, a manger
always has to organise in order to achieve results.
A manager performs organizing function with the help of following steps:
1) Identifying and classifying of required activities: All activities that have to be performed in the firm
should be identified.
2) Grouping of activities to attain the objective: Here, the manager tries to combine and group similar
and related activities into units or departments.
3) Classifying the authority: Assigning each group to a person (or manager) with the required authority
to supervise, execute and to be held responsible for the output.
4) Co-ordination between authority and responsibility: Providing co-ordination (at the same level in the
concern) and vertically (between higher and lower organizational hierarchy) by creating an order.
Thus, organising is about creating an intentional structure of roles. It means that the activities that people do
and the roles they occupy are deliberately created.
Importance of Organizing Function:
Organizing is important for the following reasons:
Creates Roles: Organizing enables a business to create roles and links a person to a set of activity to
be performed.
Facilitates specialization: Roles can be categorized based on similarity by organizing. Thus, the
activities along with the roles can be divided into units and departments.
Clarifies authority: Helps in clarifying role, defining the powers of each role, the reporting structure,
communication and co-ordination between manager and employee so that all the activities run
smoothly such that the productivity increase.
Enables co-ordinations: By defining the above scales, organizing automatically brings co-ordination
in activities and ensures mutual co-operation among individuals.
Facilitates effective administration: Organizing is helpful in defining the job positions. Thus, it
enables a concern to administer the entire system smoothly.
Supports growth and diversification: It facilitates the growth of a company by creating functional
and homogenous entities of business with clear demarcation and yet clear linkages.
Provides sense of security: Provides security to employees indicating their areas of control and its
relative importance.
Define power, authority and responsibility, delegation and decentralisation: Organizing defines
the power of each managers, also defines authority and responsibility. By doing so, it makes a person
accountable for a task and thus facilitates goal setting, goal achievement and reward management. It
also enables delegation and decentralization.
Enables Change: Organising facilities change.
3) Detailed the concept of Controlling along with prerequisites of Effective Control.
Controlling can be defined as measuring and correcting of performance to achieve the organisational goal.
Controlling is defined as follows: “Controlling is a systematic exercise which is called as a process of checking
actual performance against the standards or plans with a view to ensure adequate progress and also recording
such experience as is gained as a contribution to possible future needs.” -Brech.
Planning and Controlling are integral parts of an organisation as both are important for smooth running of an
enterprises. They are the inseparable functions of management. Planning → Results → Corrective Action.
Prerequisites of Effective Controlling:
In order to have result of effective planning controlling is the key factor. Hence, there are few prerequisites
for effective controlling as follows:
Tailoring Controls to plans and positions: A control is exercised on an activity or a group of
activities. Based on the position held by the employee the control also varies. i.e. the TL of testing
team controls are different compared with TL of Network Management team.
Tailoring Controls to Individual Manager: Controls have to be adjusted to the individual manager’s
capability also. If he/she does not understand a control then the system is dysfunctional. For Example:
If a manger fails to motivate the team on the task to be performed then the team neglects their duty
this will reflect the planning. And production get disrupted.
Designing the point to the exceptions at critical points: To have an effective controlling even the
exception must be handled especially at a critical point. For Ex: When you are requested for
employee’s data by the manager, accuracy of the data provided is as important as delivery time of the
data. Hence, when an unexpected Ad-Hoc appears data accuracy and time of delivery both are
important.
Objectivity of Control: When the managements bring the control they must be objective, accurate,
and must suit the standards.
Flexibility: Controls must be flexible to include the changed plans, unexpected circumstances or
outright failure. For example, the day production of a bolt manufacture company is 100 units per hour.
Due to the power failure occurring often only 75 units can be produced. It would be flexible to get the
control among labours 75 units / hour rather than expecting 100 units/hr.
Fitting to the Organisational Culture: The organisation culture should not compromise on the
control the have for organisational benefit. However, it should not be contradiction as well. If the
organisation is family-like environment but with out open freedom to experiment on their domain is
not right.
Economy of Control: Control must be worth the cost. Creating control which are expensive is
counter-productive. For Example: The control in auto-mobile manufacture industry is different
compared with IT companies.
Ability to lead Corrective Action: The control should lead to corrective action. Only then it leads to
the better performance.
4) What is Motivation? Explain Maslow’s hierarchy of needs theory.
Motivation is the process that account for an individual intensity, direction and persistence of effort forward
attaining a goal. Intensity is concerned with how hard a person tries. Direction is the orientation that benefits
the organisation. And Persistence is a measure of how long a person can maintain his/her effort.
Motivation helps to achieve personal goals.
Motivation gives job satisfaction.
Motivation helps in self-development of individuals.
Importance of Motivation in business:
The more motivated the employee, the more empowered the team is.
The more is the team work and individual employee contribution; more profitable and successful the
business grows.
Maslow’s Hierarchy Theory:
Every human beings’ behaviour is influenced by their wants and desire. These needs follow an order of
importance like a priority checklist which is called as hierarchy. When the lower (bottom) need is satisfied
then he moves a step above and work for that. According to Maslow’s the following are the five hierarchies:
Psychological: The basic need of human category come under this category i.e. hunger, shelter, thirst,
sex and other bodily needs. So, the income he earns must fulfil these needs in order form him to move
above the step.
Safety: They are need to be physically safe and sound. Includes safety and protection from physically
and emotional harm. An individual does not expect to be threatened or abused at work place. When
such unexpected events occur it leads to post-traumatic stress disorder Hence, he/she looks for a safer
work environment.
Social: Includes friendship, care, affection and acceptance in the work place. And if he gets this calm
work environment the person will dedicate more to the organisation benefit. They need to be gratified
for reunions, family get to gather, picnics or being a part of the social group. This need is helpful at
times of stress and pressure. This will also motivate him and social relationship among colleagues will
lead to higher productivity.
Esteem: They are need for acceptance and achievement. It includes internal esteem factors such as
self-respect, autonomy and achievement. External esteem factors such as: Status, Recognition and
Attention. So, when the goal is set and support him/her to achieve it and reward him/her, it fulfils the
individuals esteem needs and also other needs through the earnings such as buying house, car,
shopping, vacations etc., The focus on the organisation now a days is to full fill these need and social
need that to be combined with the reward which will be able to fulfil other needs. Maslow revealed
that other’s respect and admiration is a lower-level esteem need and the respect we have for ourselves
is a higher – level esteem need. Hence Self respect is very much important to survive comfortably.
Self-Actualization: The drive to become capable of becoming one includes growth, achieving one’s
potential and self – fulfilment. They are the need to realise one’s full potential. It basically refers to
doing something that we are meant to do. People who reached this need are expected to be creative
and show self-acceptance.
5) Discuss the concept of ‘Team’, also to discuss seventeen characteristics of an Effective Team.
A team can be defined as group of people operating with complementary skills and high degree of
independence and accountability to achieve a common and usually difficult goal collectively with authority
to execute and the rights to share rewards of the performance.
Seventeen Characteristics of an Effective Team:
we recognize seventeen effective team characteristics as follows:
1. Clear Purpose: Refers to the condition where group members agree on the group’s goal. These shared
goal act to spark group effort by providing clear direction.
2. Consensus decision making: It occurs when groups allow members to express their opinions and
preferences openly and discuss any disagreement that might exist.
3. Shared Leadership: It occurs when such leadership roles as contributor, collaborator, challenger,
facilitator and controller are carried out by the group members rather than by the group’s leader
exclusively.
4. Listening: This reflects the willingness of group members to listen to others in an effort to achieve
interpersonal understanding and facilitate interpersonal sensitivity.
5. Open Communication: It occurs when group members take advantage of communication
opportunities openly share their opinion, provide timely and relative feedback and share relative
information with other group members.
6. Self-Assessment: It allows the group and their members to assess performance, changing
environments and existing goals.
7. Civilised disagreement: This implies that groups have developed appropriate internal mechanism and
interpersonal sensitivities necessary to manage the full rage of conflicts that occurs within the groups.
8. Style diversity: This occurs when group members not only tolerant of style and behavioural difference
but also actively seek out those differences necessary to perform and develop.
9. Networking: It reflects when group members ability and willingness to link up with others, external
to the group. Such contacts can be drawn upon for information, support, and assistance when needed
to facilitate goal achievement.
10. Participation: Participation by group members in a broad range of group activities and decision
facilitates member buy-in. It also facilitates strategy development and increases member self-efficacy.
11. Informal Relations: This occurs within a group environment that can be characterized by a
comfortable and relaxed atmosphere. Under these conditions, interpersonal interactions are sought out
and maintained because members feel comfortable with each other.
12. Clear roles and Assignments: It occur when group members have a clear understanding of their roles
and assignments and other group member also agree to the roles.
13. Willingness to share: This allows group members to benefit from the knowledge, experience,
emotional support, energy and equipment possessed by another group member.
14. Prepared for Independence: This increases the probability that group members have requisite skills
necessary to perform required tasks. This can be achieved through training or self-development.
15. Structural Support: Creates a work environment designed to facilitate group performance.
16. Leader/Management style: It relates to the manager’s ability to support, encourage, coach and
empower his/her staff so as to facilitate the employee self-confidence, self-management and
interpersonal interaction.
17. Learning Environment: It relates to the degree to which the group/organisational environment
permits group members to learn from their experiences and experiences of others.
6) Define the concept of Leadership. Discuss different dimensions Authoritarian, Democratic & Laissez
Faire in detail.
A simple definition of leadership is that “Leadership is the art of motivating a group of people to act
towards achieving a common goal”. This definition captures the leadership essentials of inspiration and
preparation. Effective leadership is based upon ideas but won’t happen unless those ideas can be
communicated to others in a way that engages them. In simple words, the leader is the inspiration and the
director of action.
Leadership Style Theories:
1) Authoritarian: Nelson and Quick defines authoritarian leadership as “a style of leadership in which
the leader uses strong, directive, controlling action to enforce the rules, regulation, activities and
relationships in the work environment”. The distinct characteristics are:
Sets goal individually.
Engages primarily in one-way, downward communication.
Controls discussions of followers.
Sets policy and procedures unilaterally.
Dominates interactions.
Directs the competition of the tasks personally.
Provides infrequent positive feedback.
Rewards obedience and punishes mistake.
Exhibits poor listening skills.
Uses conflict for personal gain.
2) Democratic: Nelson and Quick defines democratic leadership as “a style of leadership in which the
leaders take collaborative, responsive, interactive actions with followers concerning the work and
the work environment”. The distinct characteristics are:
Involves followers in setting goals.
Engages in two-way open communication.
Facilitates discussion with followers.
Solicits input regarding determination of policy and procedures.
Focuses on interaction.
Provides suggestions and alternatives for completion of tasks.
Provides infrequent positive feedback.
Rewards good work and uses punishment only as a last resort.
Exhibits effective listening skills.
Meditates conflict for group gain.
3) Laissez Faire: Nelson and Quick defines it as “a style of leadership in which the leader fails to
accept the responsibilities of the position”. The distinct characteristics are:
Allows follower free rein to set their own goals.
Engages to noncommittal, superficial communication.
Avoids discussion with followers to set policy and procedures.
Avoids interaction.
Provides suggestions and alternatives for completion of tasks only asked to do so by the
followers
Provides infrequent feedback of any kind.
Avoids offering rewards or punishments.
May exhibits poor or effective listening skills.
Avoids conflict.