MS-01 Management Functions and Behaviour

Note : (i) There are two sections A and B. (ii) Attempt any four questions from Section A. Each question carries 15 marks. (iii) Section B is compulsory and carries 40 marks.

1. Enumerate various systems and processes involved in managing an organisation. Briefly explain system concept and its inter-relationship with sub systems in an organisational set-up.

2. Discuss various techniques used in decision making. Describe what are the main barriers to effective decision making. Explain with examples.

3. How do Traditional, Behavioural and Interactions views explain the process of conflict? Evaluate the changes, which take place within and between the groups as a result of long–standing inter-group conflict.

4. “Various multi-faceted task and activities of an organisation have to be differentiated into smaller, manageable components to facilitate efficient achievement of objectives. " Elaborate this statement and discuss underlying issues with suitable examples.

5. Write short notes on any three of the following:

(i) Responsibilities of a manager towards society

(ii) MBO

(iii) Organisational culture and climate

(iv) Span of control and levels of management

(v) Leadership styles

SECTION B

One afternoon in June 1972, Seth, the industrial engineer of ABC Company, was called to the office of his immediate superior Kapil, the production manager. Kapil said, "Seth. I want to discuss a situation in the production department. A lot of people feel that Joshi is not the right man for the Assistant Superintendent’s position. The President and others have decided that I

have got to fire Joshi or at least move him out of production. Everyone wants to fire Joshi, but I won't do it to him. I was talking with Bhai this morning and we decided that you might be able to make use of Joshi in your department.

Seth was surprised by both the information, and the proposal.

Kapil concluded his comments with “Seth I am asking you to take Joshi. You can say ‘No’. But then he gets fired. I have told Joshi this. Also, Joshi knows that if he goes with you he will take a pay cut. However, I think you can make use of him both to your own and his satisfaction. You are anyway, carrying our an in-process quality control, and you might be able to make good use of Joshi in view of his long technical experience of production work. Think it over, and let me know by tomorrow.

Seth thought over the matter.

ABC Company had been a successful enterprise until March 1972 at which time it suffered a sharp decline of profits: sales had fallen off, and production costs had risen. The President adopted three measures, which he hoped would improve the condition. First, by creating an Industrial Engineering department for establishing work standards on all production operations, to determine which manufacturing costs were out of line and where remedial action should be taken. Seth, 28 years old, who had been with the company for two years in the Purchasing department, was selected Seth had B.E and M.B.A. degrees to his credit. What he lacked in his business experience he made up by his eagerness to learn. He was ambitious and liked by his associates. He wanted a transfer from Purchasing to Production for better opportunities for advancement.

Secondly, he consulted a Management Consultation firm to make a study of the Production Department. They pointed out that the chain of command was too long from Production Manager through Plant Superintendent through Assistant Superintendent to Foremen. They recommended the elimination of the position of Assistant Superintendent.

Thirdly, he engaged an Industrial Psychologist to appraise all the Supervisory Personnel.

Joshi had been with the Company for 20 years since its founding, and during this period had worked on every production operation, and his last 11 years had been in supervisory capacity. His manners were rough and aggressive, and he had little formal education. The Industrial Psychologist’s report about Joshi contained the following points:

(i) Evaluation for the position of Assistant Superintendent, Not good enough.

(ii) Capacity for good human relations in supervision: Will have friction frequently.

(iii) Need for development counseling: Counseling greatly needed.

(iv) General evaluation: Joshi had a good ability profile. He suffers from a sense of inferiority. He does not like the responsibility of making decisions. His supervision is that of autocratic type. Though he has the ability, as far as his personality makes–up is concerned, he is out of place in the present position.

Questions:

(a) What is the core problem in the case? Explain.

(b) Explain Joshi's behaviour and works experience vis–a–vis the psychologist report.

(c) How do you see Kapil’s suggestion to Seth? Give reasons.

(d) What are Seth's considerations in taking a decision? What should he do? Explain.