POM 2011 FINAL EXAM PAPER

POM 2011 FINAL EXAM PAPER

1. a)      Discuss the  differences  if any in the contributions made by  the management thinkers viz., F W Taylor, Max Weber, and Henry Fayol  to the discipline of  Management.  Discuss  the application of the theories proposed by these management thinkers in   managing ‘ Valley Crossing’ exercise you have participated  in POM Class .

A) The scientific management approach is based on the concept of planning of work to achieve efficiency, standardization, specialization and simplification. The approach to increased productivity is through mutual trust between management and workers. Taylor proposed four principles of scientific management:

· Science, not rule-of-thumb;

· scientific selection of the worker;

· management and labor cooperation rather than conflict; and

· scientific training of workers.

                        The three people crossing the valley should be properly assigned the respective positions ie first or second or third based on their capabilities. This selection is done scientifically so as to complete the work effectively. Also, there should be a sense of mutual trust between the three as the jobs are highly interlocking. The methodology of crossing the valley is also scientifically devised.

                         

                          Weber's bureaucratic approach considers the organization as a part of broader society. This approach is considered rigid, impersonal, self-perpetuating and empire building. The organization is based on the principles of:

· Structure;

· specialization;

· predictability and stability;

· rationality; and

· democracy.

                         The three people should be properly trained for the exercise separately as well as collectively as the job includes fatal threat. A structured method is designed for crossing the valley, as at any time no two should be completely unsafe and when one is unsafe, his weight should be borne by the other two with four legs. Also, imagining the impossible task requires rational thinking.

                             Administrative theory was propounded by Henry Fayol and is based on several principles of management. Management was considered as a set of planning, organizing, training, commanding and coordinating functions.  

Division of work (specialization)

· Authority and responsibility

· Discipline· Unity of command· Unity of direction· Subordination of individual interest· Remuneration of personnel· Centralization· Scalar chain· Order· Equity· Stability of tenure of personnel· Initiative· Esprit de corps· The concept of line and staff· Committees· Functions of management- planning- organizing- training- commanding- coordinating

The three people can be classified based on their positions as discoverer, follower and follower respectively. The discoverer is at higher risk when compared to the other two, as he is taking the initiative. The planning of strategy and organizing the three people in their respective positions play a pivotal role in safe crossing. Also, training is to be given to the three separately as well as collectively. Members cooperation are put in systematic way so that the result of crossing the valley is achieved.

1. b)      What is Theory X and Theory  Y Management?  Explain   how  you to make use of the knowledge the Theory X  and Theory Y    in managing the Valley Crossing exercise ?

A)                       Theory X managers assume that people must be constantly coaxed into putting forth effort in their jobs. Theory Y managers on the other hand assume that people relish work and eagerly approach work as an opportunity to develop their creative capacities. Theory Y was an example of a complex person perspective. Theory Y management was stymied by the prevalence of Theory X practices in the organizations of 1950s.

THEORY X ('AUTHORITARIAN MANAGEMENT' STYLE)

·                     The average person dislikes work and will avoid it he/she can.

·                     Therefore most people must be forced with the threat of punishment to work towards organisational objectives.

·                     The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

THEORY Y ('PARTICIPATIVE MANAGEMENT' STYLE)

·                     Effort in work is as natural as work and play.

·                     People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment.

·                     Commitment to objectives is a function of rewards associated with their achievement.

·                     People usually accept and often seek responsibility.

·                     The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.

·                     In industry the intellectual potential of the average person is only partly utilised. 

                    Both theory X and theory Y are concerned only with the managers, and have nothing to do with the workers.

  If three workers are forced to cross the valley, they just cant concentrate in the whole process. Only when they are really interested in completing the job, that they envision the strategy to cross the valley and successfully complete the task. In the way of achieving the organizational objectives, lives of the three workers are at stake. Hence, they are self motivated towards the work. They accepted the responsibility on their own. They kept the interests of the job above their own security and hence theory x managers’ assumption that security is of utmost importance for the workers, is wrong.

2. a)      What is ‘Hawthorne Effect’?  Mention THREE ways how you as a manager use Hawthorne Effect in managing the Valley Crossing exercise?

A)                        The human relations movement grew out of a famous series of studies conducted at Western Electric’s Hawthorne plant near Chicago. These are called Hawthorne studies. The employees are divided into test groups and they were subjected to different working conditions like changes in lighting, changes in wages, introduction of varying length rest periods, shortening of work day. Productivity changes are measured in different situations. The results were ambiguous as the productivity rose and fell erratically. Finally it was concluded that because they had been singled out for special attention, the groups developed a group pride that motivated them to improve their productivity. Sympathetic supervision had further reinforced their motivation. This phenomenon is called Hawthorne effect. They also concluded that informal work groups have a positive influence on productivity.

                                    The three workers should be constantly monitored and they should get to know that they are being observed. Utmost importance is to be given to their safety. The equipment that they use to cross the valley should be provide with good quality.

2. b)   What is Herzberg theory of Motivation?  Explain Herzberg  theory of motivation for its relevance  for  Valley Crossing exercise ?

A)                        In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.

                           Dissatisfiers or hygiene factors included salary, working conditions and company policy-all of which affected the context in which the work was conducted. Positive ratings for these factors did not lead to job satisfaction but merely to the absence of dissatisfaction.

                   Satisfiers or motivating factors include achievement, recognition, responsibility, and achievement-all related to the job content and the rewards of work performance.

                       Herzberg’s theory was influential in the growth of job enrichment programs. This underscores the importance of managers understanding differences between human beings when designing motivational approaches.

3.a)      Explain the concepts   1. Divison of Labour  2. Departmentation  3. Hierarchy 4. Coordination

A)Division of labour : the separation of a work process into a number of tasks, with each task performed by a separate person or group of persons. The most people specialize, the more efficiently they can perform their work. This principle is epitomized by the modern assembly line.

Departmentation: The process of grouping of activities into units for the purpose of administration is called departmentation. It can be defined "as the process by which activities or functions of enterprise are grouped homogeneously into different groups." The administrative units are called divisions, units or departments.

Hierarchy: The line of authority in an organization – often represented today by the neat boxes and lines of the organization chart – runs in order of rank from top management to the lowest level of the enterprise.

Coordination: The process of integrating the activities of separate departments in order to pursue organizational goals effectively. The extent of coordination depends on the nature of the tasks performed and the degree of interdependence of people in the various units performing them.

4.a)      Explain the concepts Vision, Mission, Excellence, Effectiveness and  Efficiency  by giving references out of   Tower Building  exercise  you participated in POM Class..

A)
Vision: It outlines what the organization wants to be, or how it wants the world in which it operates to be (an "idealized" view of the world). It is a long-term view and concentrates on the future. It can be emotive and is a source of inspiration. The vision statement of an organization should be short and attractive. The vision statement for the tower building exercise can be to build a tower that touches the sky.

Mission: It defines the fundamental purpose of an organization or an enterprise, succinctly describing why it exists and what it does to achieve its vision. It is mostly either short-term or medium-term in nature. The mission statement for tower building should be such that the tower is constructed by the blind folded person, following the instructions from the other persons.

Excellence:Managers using a dynamic engagement approach pay close attention to the values that guide people in their organizations, and the values held by the people outside the organization.Excellence is achieved when an organization is generating the maximum level of profitability possible given the human, financial, capital, and other resources it possesses. The excellence in the tower building can be thought of as addition of efficiency and effectiveness.

Effectiveness: Effectiveness means “doing the right thing”. It involves choosing the right goals. A manager who selects an inappropriate goal is an ineffective manager, even if he achieves maximum efficiency. No amount of efficiency can make up for the lack of effectiveness. Effectiveness is the key to an organization’s success. The building we require may be of only 5 stories. But even if we construct a 7 storeyed building within least possible time, we are ineffective because we deviated from our right goal.

Efficiency:Efficiency refers to doing things in a right manner. Scientifically, it is defined as the output to input ratio and focuses on getting the maximum output with minimum resources.Efficiency is concerned with the present state or the ‘status quo’. Thinking about the future and adding or eliminating any resources might disturb the current state of efficiency. Constructing the tower with minimum material and within the least possible time improves the efficiency. 

5.a)      Modern Technologies are believed to enhance  the function of management.  Discuss how Google blogs as a technology enhances the effective learning with reference to higher education?
A)With the advent of the internet and its use in almost every household across the globe, learning has become interesting and fun. You can now get anything you want with just a few clicks, unlike the previous years when you had to search for books relating to the information that you are looking for and it could take ages to get that.

The internet has given education a new and interesting dimension altogether. Just like wiki, podcast and other sites, the different blogs can also be used in the classroom environment by children as a useful tool for communication and to keep a link between the study groups of different classes or even schools, and even maintain a diary entry. If the blogs are effectively used, they can very well create a wonderful learning environment which could possibly extend to a level that is beyond the traditional school. Blogs tend to provide the students with 4 basic functions:

Collaboration

They provide the students and teachers with a space for developing their writing and other skills and provide an advantage with an immediate audience. The teachers have the facility of providing the students with instructional tips that can be benefitted by the students who can practice and take full advantage. Online mentoring also becomes quite easy through blogs. The students also have the privilege of participating in the different learning activities which can enhance their skills effectively and in an interesting way.

Classroom Management

The classroom blogs tend to serve as portals and foster the learner community. They are quite easy to develop and also can be updated efficiently. They could also be used as a tool to inform the students about the requirements of the class, post handouts, homework assignments, notices and also an answer board.

Discussions

The class blog opens up plenty of opportunity for the students to discuss the various topics outside the classroom. With the help of such blogs, every student has the opportunity to share his/her views and opinions. The students also have excellent opportunities to reflect and react to each other’s blog posts. The teachers could also form a group of intellectuals for guiding the students and discussing different blog posts.

Student portfolios

The blogs tend to present, protect and organize the student’s work as a digital portfolio. The older entries can be archived too, making it easier to develop the skills and analyze the progress of the individual. The students also tend to produce better skills in writing as they realize that their efforts will be published.

Thus, education through blogs imparts much more motivation to the students and they find the digital way of learning quite intriguing compared to the boredom of classroom lectures.

6.a)      Explain the concepts  -  Bounded rationality, satisfying, and heuristics ?

A)Bounded rationality: The theory of bounded rationality points out that decision makers must cope with inadequate information about the nature of the problem and its possible solutions, a lack of time or money to compile more complete information, an inability to remember large amounts of information, and the limits of their own intelligence.

Satisfice: Instead of searching for the perfect or ideal decision, managers frequently settle for one that will adequately serve their purposes. They accept the first satisfactory decision they uncover, rather than maximize, or search until they find the best possible decision. What the effective decision maker learns to do is satisfice with a clear sense of goals for the organization in mind.

Heuristics: A method of decision making that proceeds along empirical lines, using rules of thumb, to find solutions or answers. Three heuristics show up repeatedly in human decision making. They are availability, representativeness, anchoring and adjustment.

7.a)      What is matrix structure? Under what conditions would a matrix structure be most suitable? What are its advantages and disadvantages? 

A)Matrix structure: The matrix structure, also called “multiple command system”, is a hybrid type of organization. An organization with a matrix structure has two types structure existing simultaneously. Employees have in effect two bosses – that is, they work in two chains of command. One chain of command is functional or divisional and the second is a horizontal overlay that combines people from various divisions into a project led by a project or group manager. As organizations have become more global, many use a type of matrix form in their international operations,

Advantages: The matrix structure is an efficient means for bringing together the diverse specialized skills required to solve a complex problem. Problems of coordination are minimized here because the most important personnel for a project work together as a group. By working together, people come to understand the demands faced by those who have different areas of responsibility. It gives the organization a great deal of cost-saving flexibility.

Disadvantages: A disadvantage is that not everyone adapts well to a matrix system. In addition, morale can be adversely affected when personnel are rearranged once projects and the new projects begun. Also, if hierarchies are not firmly established and effectively communicated, there is a danger that conflicting directives and ill-defined responsibilities will tie manager’s hands.

7.b)      What is the functional structure? How is it different from a product / market structure? What are the advantages and disadvantages of each?

A)Functional structure: A form of departmentalization in which individuals engaged in one functional activity, such as marketing or finance, are grouped into one unit. It is the most logical and basic form of departmentalization. It is used mainly by smaller firms that offer a limited line of products because it makes use of specialized resources. Another advantage is that it makes supervision easier, since each manager must be a expert in only a narrow range of skills. It also makes it easier to mobilize specialized skills and bring them to bear where they are most needed. Because functional managers have to report to central headquarters, it can be difficult to get quick decisions. It is often difficult to determine accountability and judge performance in a functional structure. Finally, coordinating the functions of entire members of the organization may become a problem for top managers.

Product/market structure: It is often referred to as organization by division, brings together in one work unit all those involved in production and marketing of a product or a related group of products, all those in a certain geographical unit, or all those dealing with a certain type of customer. Most large, multiproduct companies have a product/market structure. When a company’s departmentalization becomes too complex for coordinating the functional structure, top management will generally create semiautonomous divisions. Unlike a functional department, each division resembles a separate business. But the division manager must still report to the central headquarters. The division can be either by product type, by geography or by customer. Because all the skills required producing and marketing particular products are grouped in one place under one head, a whole job can be more easily coordinated and high work performance maintained. Both the quality and speed of decision are enhanced. The burden on central management is reduced because divisional managers have greater latitude to act. Also, accountability is clear. It has some disadvantages like the interests of the division may be placed ahead of the goals for the organization. Also, administration expenses increase, because each division has its own staff members and specialists.