POM 2009 FINAL EXAM PAPER

POM 2009 FINAL EXAM PAPER

1.A. What is the Hawthorne effect and What is the importance of it  for  managerial excellence?

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.

1.B.  What is Theory X and Theory Y and how it is useful for managers?

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. Explain with examples from your experience in Mandi the difference between making decisions under conditions of Certainty, Risk, and Uncertainty? 

A)

Certainty: Decision making conditions in which managers have accurate, measurable, and reliable information about the outcome of various alternatives under consideration. Under such conditions, managers know their objectives and have accurate, measurable, and reliable information about the alternatives. If one cannot be certain about the outcomes, he moves to conditions of uncertainty or risk. Unfortunately, such conditions are far more common than conditions of certainty.

Risk: Decision making conditions in which managers know the probability a given alternative will lead to desired goal or outcome. Risk occurs when managers cannot predict an alternative’s outcome with certainty, but they do have enough information to predict the probability it will lead to the desired state. The probability is a statistical measure of the chance a certain event or outcome will occur.

Uncertainty: Decision making condition in which managers face unpredictable external conditions or lack the information needed to establish the probability of certain events. Uncertainty arises from two possible sources. First, managers have to face external conditions that are partially or entirely out of control such as weather. Second, the manager may not have access to key information.

2.B.  What  is Group Decision making process?  Explain your  decision making ability assuming that your hypothetical scores in Ranking method used in class room  were:    I – E is Maximum; G – E is low and I – G Maximum.

A) 

                                               Group decision making (also known as collaborative decision making) is a situation faced when individuals collectively make a choice from the alternatives before them. This decision is no longer attributable to any single individual who is a member of the group. This is because all the individuals and social group processes such as social influence contribute to the outcome. The decisions made by groups are often different from those made by individuals. Group polarization is one clear example: groups tend to make decisions that are more extreme than those of its individual members, in the direction of the individual inclinations. There is much debate as to whether this difference results in decisions that are better or worse. According to the idea of synergy, decisions made collectively tend to be more effective than decisions made by a single individual. However, there are also examples where the decisions made by a group are flawed, such as the Bay of Pigs Invasion, the incident on which the Group think model of group decision making is based.

Factors that impact other social group behaviors also affect group decisions. For example, groups high in cohesion, in combination with other antecedent conditions (e.g. ideological homogeneity and insulation from dissenting opinions) have been noted to have a negative effect on group decision making and hence on group effectiveness. Moreover, when individuals make decisions as part of a group, there is a tendency to exhibit a bias towards discussing shared information (i.e., shared information bias), as opposed to unshared information.

3 A.Discuss the Team roles of three people in the cartoon

A)                      Let us name the three members crossing the valley as A, B, C in the order they are standing. The jobs of three people can be described as below.

A – A is the first person who undertakes the work. The other two will follow him. Being the first and foremost person to undertake the job, he may be called ‘Discoverer’ who is said to be assuming additional effort in doing the job. No one tried the job till then and he was at more risk when compared to the other. This is true though by the end of completion of the task, all three of them are at risk equal number of times.

B – B follows his fore-walker A and hence he is a follower. Comparatively, his job is more risky when compared to A and less risky when compared to C. When he is in a fully risky condition, one is weighing him from the front and the other from the back and hence the amount of risk is less.

C – Similar to B, C is following his fore-walkers A and B in crossing the valley. Comparatively, C’s job is less risky when compared to both A and B.

3 B.What is that element of Teamwork in the Three People Crossing the Valley cartoon that are important in Modern day organizations?

A)                                      The most important element of successful team work is the establishment of a platform of mutual trust that enables the leadership team to engage in open debate and decision making that leads to commitments to action by individual members of the team.  Building this trust requires an openness that allows team members to know and understand the beliefs and behaviors of all members of the team so that team actions can be structured to take advantage of each member's uniqueness and talents.  Behavioral and values assessments are powerful tools in developing an understanding how each member of the leadership team views themselves and responds to others in the team.

4 B.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.

5 A. What is Span of Management? What are the key considerations in choosing a span of Management?

A) Span of management: The span of management refers to the number of people or the departments that report directly to a particular manager. Once work is divided, departments created, and the span of control chosen, managers can decide on a chain of command. These reporting lines are prominent features of any organization chart. The result of these decisions is a pattern of multiple levels that is called a hierarchy. Choosing an appropriate span of control for an organizational hierarchy is important for two reasons. The span can affect what happens to work relationships in one particular department. Too wide a span and too narrow a span are both inefficient. Second, span can affect the speed of decision making in situations where multiple levels in the hierarchy are necessarily involved. A long chain of command slows decision making, a disadvantage in rapidly changing environment. Wide spans create flat hierarchies, with fewer management levels between top and bottom.

5B. Explain Team norms ?  Identify five norms that you set in your Hamara Dhandha enterprise?

A) 

Team norms: Over time, group members form norms- expectations about how they and other members will behave. Some of these norms are carried over from society in general, such as dressing properly for work and showing up on time. Others are particular to the group and its special goals, such as questioning traditional ideas in a task group charged with launching a new product. When an individual breaks with team norms, other members will pressure him to conform. Conforming to norms can be extremely useful. Conformance frees us to concentrate on other tasks. But it can be negative if it stifles initiative and innovation. A manager must be in a good position to set norms that discourage too much conformity. The managers’ goal is to communicate norms that will channel the inevitable group pressures in constructive directions.

7A.What is the difference between line positions and staff positions?

A)

Line positions: Managers with line positions are those people who are directly responsible for achieving organizational goals. Line authority is represented by the standard chain of command. It is based primarily on legitimate power. Since line activities are identified in terms of company’s goals, the activities classified as line will differ in each organization. When an organization is small, all positions may be line roles.

Staff positions: Staff positions belong to those individuals or groups in an organization who provide services and advice to line managers. The concept of staff includes all elements of the organization that are not classified as line. Staff provides managers with varied types of expert help and advice. Staff authority is based primarily on expert power. As managers expand organizations over time, staff roles are often added to supplement line activities.

7B. How are decentralization and delegation related ?

A)                             Delegation is the act of assigning tasks that are regarding work and/or power to subordinate workers. It is basically the turning over of some kind of authoritative power and responsibility to another individual to perform certain predefined tasks. Delegation gives the power to a person to make all major decision pertaining to the given task. In essence, delegation is simply the shift of power to make decisions from one hierarchial level to another, usually a lower one. Delegation if not done effectively, is called as micromanagement, when the subordinate is overloaded with too much data to handle. 

                                    On the other hand, decentralization refers to the transfer of decision making authority to the different unit of an organization. It is basically the procedure of spreading out the decision making, getting it closer to the point of action. Basically, it is delegation on a larger level so as to disperse the work and give each unit its own freedom and authority, instead of there being one centralized entity to which everyone reports.

8A. Explain Motivation by using the Newton’s Three principles of motion ? 

A)

NEWTON's First law

A body that is at rest will remain at rest, unless acted upon by an unbalanced force. This means that people tend to keep doing what they are doing - unless and until they are acted upon by a new force. In physics the "force" is an outside push or pull. In business, this force is provided by the force of character of the leader. Some people do not have enough motivation to move themselves. They need to be pulled along by the will power of the team Leader. That leader provides the motive force that is necessary to overcome the inertia of the many. That is the job of the leader.

 

NEWTON's Second law

Force = mass x acceleration.

The amount of energy needed to be successful is proportional to: The size of the goal x how quickly you want to get it. If you want to achieve big goals quickly: Then you must apply mega watts of energy and will power.  If you want big goals but are willing to take your time: Then lower levels of energy persistently applied for decades will suffice. Notice that in both cases you must exert your force of will.

NEWTON's Third law

For every action there is an equal and opposite reaction. If you want a certain effect, you must initiate the correct actions. Don't expect to get rich without effort. If you want to be a champion, you must pay the price.

8B .Explain Goal Setting theory for motivating the students for Hamara Dhandha program

A)

                                  In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory states that goal setting is essentially linked to task performance. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. In simple words, goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in. The important features of goal-setting theory are as follows:

Ø  The willingness to work towards attainment of goal is main source of job motivation. Clear, particular and difficult goals are greater motivating factors than easy, general and vague goals.

Ø  Specific and clear goals lead to greater output and better performance. Unambiguous, measurable and clear goals accompanied by a deadline for completion avoids misunderstanding.

Ø  Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph when he attains them, and sets him up for attainment of next goal. The more challenging the goal, the greater is the reward generally and the more is the passion for achieving it.

Ø  Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. Feedback is a means of gaining reputation, making clarifications and regulating goal difficulties. It helps employees to work with more involvement and leads to greater job satisfaction.

Ø  Employees’ participation in goal is not always desirable.

Ø  Participation of setting goal, however, makes goal more acceptable and leads to more involvement.

      9.  Write short notes on  the following

1. Max Weber

2. Effectiveness

3. Conceptual skills

4. Job enrichment

5. Espirit De Corps

A) Max Weber: Reasoning that any goal oriented organization consisting of thousands of individuals would require the carefully controlled regulation of activities, the German sociologist Max Weber developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations and lines of authority. He considered the ideal organization to be a bureaucracy whose activities and objectives were rationally thought out and whose divisions of labour were explicitly spelled out.

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.

Conceptual skills: Conceptual skill is the ability to coordinate and integrate all of an organization’s interests and activities. It involves seeing the organization as a whole, understanding how its parts depend on one another, and anticipating how a change in any of its parts will affect the whole. The importance of conceptual skills increase as one rises through the ranks of a management system.

Job enrichment: The combining of several activities from a vertical cross section of an organization into one job to provide the worker with more autonomy and responsibility. It tries to deal with dissatisfied workers by increasing the depth of their jobs. The idea is to develop a stronger sense of accountability by allowing workers to set their own work pace, correct their errors, and decide the best way to perform the tasks.

Espirit de corps: Promoting team spirit will give the organization a sense of unity. To Fayol, even small factors should help to develop the spirit. He suggested, for example, the use of verbal communication instead of formal, written communication whenever possible.