Name Aman Kumar Sinha
Roll Number 251410503411
ASTER OF BUSINESS
PROGRAM ADMINISTRATION (MBA)
SEMESTER 1
DMBA118 – ORGANIZATIONAL
Course Code and Name BEHAVIOUR
Question 1: Discuss the principles of organising and their significance in the
management of an organisation.
Organizing principles are fundamental guidelines employed to help managers put their
organizations in an effective order to realize efficiency, clarity, and coordination. The
principles, based on classical theory of management, lead organizational structure design in a
way that supports organizational goals. Some of the main organizing principles are:
Principle of Specialization: The principle adopts the division of labour on the basis of
qualifications, staff capability, and expertness. Specialization of employees increases
productivity and effectiveness in their line of work. For example, in a hospital environment,
doctors specialize in a specific specialty such as cardiology or neurology, which improves
patient care.
Principle of Functional Definition: There must be a specific definition of every job's function,
responsibilities, duties, authority, and interrelationships. Clarity of this sort makes
coordination easier and makes it clear to all concerned what each person is supposed to do. In
the corporate world, this might mean setting down well-defined job descriptions for all jobs,
from the CEO to the lowest job.
Principle of Span of Control: It is the number of subordinates that can be controlled by a
manager. It is either wide or narrow, depending on the nature of work, managerial skill, and
quality of subordinates. A wide span can be used for routine work, and a narrow span can be
used for complex, non-routine work.
Principle of Scalar Chain: This principle asserts a clear chain of command from the top to the
bottom of the organization. It ensures that authority and communication move freely,
therefore avoiding redundancy and ambiguity of action. For instance, in a ministry of
government, there is a clear chain of command from the ministers to the clerks to ensure
effective decision and action implementation.
Principle of Unity of Command: The Unity of Command Principle dictates that there is one
superior to be reported to by every subordinate. The principle eliminates confusion and keeps
directives clear and consistent. In the military, directives are followed by staff from their
immediate commander, thus upholding discipline and operational effectiveness.
The above principles are of special importance as they help in the development of a
systematic structure that facilitates the achievement of organizational objectives. They offer
efficient application of resources, clear definition of roles, and improvement of coordination
and communication between different sections of the organization. In practice, the above
principles help managers in assigning work according to the abilities of the employees,
defining roles with accuracy, determining the appropriate level of supervision, developing an
open hierarchy, and ensuring that all workers have one point of responsibility, thereby
minimizing responsibility and overall performance. In today's dynamic business scenario, the
above principles provide an established framework that can be adapted to overcome new
challenges, such as the introduction of matrix structures to facilitate flexibility while
maintaining hierarchical order.
Question 2: How do Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory, and
Expectancy Theory help in understanding what motivates employees?
Knowledge of the forces driving employee motivation is crucial for managers who aspire to
increase productivity and job satisfaction. Three prominent theories that offer valuable
insights into employee motivation are Maslow's Hierarchy of Needs, Herzberg's Two-Factor
Theory, and Expectancy Theory.
Maslow's Hierarchy of Needs has suggested that human needs can be organized in a
pyramidal fashion with the lower-level physiological needs at the base and self-actualization
at the top. Maslow has suggested that lower level needs first need to be fulfilled to make
higher-level needs driving forces. In an organizational context, it means that workers first
need to have their physiological needs fulfilled (e.g., fair pay and safe working environments)
before they can be motivated by higher needs such as recognition or self-actualization. For
example, a job-security-conscious worker will not be motivated by career advancement
opportunities unless his safety needs are well fulfilled.
Herzberg's Two-Factor Theory distinguishes hygiene factors from motivators. Hygiene
factors, including pay and company policy, need to be there to avoid dissatisfaction but are
not responsible for satisfaction or motivation. Motivators, including achievement and
recognition, are actually the cause for satisfaction and motivation. According to this theory,
though managers have to provide adequate hygiene factors, they have to concentrate on
providing motivators in order to enhance employee motivation. For example, challenging
work and opportunities to develop can significantly enhance motivation. Expectancy Theory,
developed by Victor Vroom, studies effort-performance-incentive association. The theory
assumes that people will be motivated when they are sure that effort will be rewarded with
satisfactory performance (expectancy), satisfactory performance will be rewarded
(instrumentality), and the rewards are important to them (valence). The theory believes in
clear communication of performance expectations and reward systems. For example, if an
employee is clear that overtime will receive a reward important to them, their motivation is
likely to rise.
Together, the three theories present a complete view of employee motivation. Maslow's
theory calls for managers to consider the whole spectrum of human needs, while Herzberg's
theory emphasizes the distinction between factors preventing dissatisfaction and factors
inducing satisfaction. Moreover, Expectancy Theory emphasizes the importance of perceived
value and equity in reward systems. Managers are able to establish a work culture that
satisfies the basic needs of employees and encourages them to perform at their best, leading
to improved performance and organizational success through these theories.
Question 3: Describe the journey of management thought from traditional to modern
theories. Mention some major contributors and what they added to management
knowledge.
The development of management theory from traditional models to contemporary methods
mirrors the development of organizational requirements and human behavior knowledge in
the workplace. It is possible to trace this development through numerous pivotal phases, each
of which has made a significant contribution to the management literature.
Classical Management Theory (Late 19th to Early 20th Century): This was the start of
systematic managerial thought, concerned with enhancing organizational effectiveness and
efficiency.
Scientific Management: Frederick Taylor created scientific management, examining work
processes to discover the "one best way" to carry out activities. Taylor's time and motion
studies, standardization, and incentive systems were designed to boost worker productivity.
Administrative Management: Henri Fayol's contribution was to define the managerial
functions (planning, organizing, commanding, coordinating, controlling) and suggest 14
principles, including division of work and unity of command, to be a model of business
organization.
Bureaucratic Management: Max Weber formulated theory in bureaucracy, calling for a
formal, hierarchical organizational arrangement with established rules and objective
relationships to promote effectiveness and justice.
Human Relations Movement (1920s-1930s):
The Hawthorne Studies, conducted by Elton Mayo, shifted the focus to the human element,
proving that social factors, such as group behaviour and employee satisfaction, have a
significant impact on the level of productivity. This also resulted in increased emphasis on
employee well-being, communication practices, and leadership.
Behavioural Science Paradigm (1940s-1950s):
This strategy utilized psychology, sociology, and other social sciences to learn about
individual and group behaviour. Motivation, leadership, communication, and organizational
culture were key. Abraham Maslow (Hierarchy of Needs) and Frederick Herzberg (Two-
Factor Theory) offered models for learning about employee motivation.
Systems Approach (1960s onwards):
The systems perspective considers organizations as open systems that are connected with
their outer environment by emphasizing relationships between various factors and examining
the overall operation of the organization by taking inputs, processes, outputs, and feedback
systems into perspective.
Contingency Theory (1960s-1970s):
Contingency theory holds that there is no one best way to manage; the best way depends on
the situation, determined by the size of the organization, the technology, and the external
environment, and calls for flexibility and adaptability.
Modern Management Theories (Late 20th Century and After):
Contemporary theories are Total Quality Management (TQM), where there is ongoing
improvement and customer satisfaction, and the Learning Organization theory by Peter
Senge, where there is learning, innovation, and ongoing improvement through systems
thinking, personal mastery, shared vision, team learning, and mental models.
Key contributors are:
Frederick Taylor: Developed scientific management, focusing on efficiency by using
scientific means.
Henri Fayol: Established administrative management functions and principles.
Max Weber: Created bureaucratic administration for effectiveness and equity.
Elton Mayo stressed the importance of personal relationships in increasing productivity.
Peter Drucker championed the principles of management by objectives and introduced the
notion of the knowledge worker.
Douglas McGregor introduced Theory X and Theory Y, which significantly impacted
leadership and motivational theories. Peter Senge: Popularized the learning organization
concept. All the contributors provided valuable insights, which have shaped modern
management practice to be more empathetic, effective, and resilient to change.
Question 4: Discuss the types of stress (eustress vs. distress) and their effects on employee
performance.
Stress is a natural occurrence in the workplace, but not all stress is equal. There are two types
of stress: eustress and distress. Knowing how to recognize the two and how they impact
employee performance is the key to successfully managing stress.
Eustress: Eustress is a type of positive stress that can bring positive results to people. It is
usually linked to difficult but bearable circumstances, like starting a new project or rehearsing
a speech. Eustress brings about excitement, satisfaction, and a sense of accomplishment.
Eustress is used to stimulate employees to perform at their best levels and can also enhance
their creativity and problem-solving abilities.
The Effects of Eustress on Employee Performance: More Motivation: Eustress generates the
energy and motivation needed to meet challenges, and the result is more engagement and
commitment.
Enhanced Performance: Employees who are exposed to eustress perform better due to
enhanced concentration and focus.
Personal Development: Conquering adversity presented by eustress can result in the
development of competence alongside higher confidence levels, leading to long-term
professional development.
Distress: Distress, on the other hand, is a negative type of stress that can cause harm. It arises
from experiences that are daunting or unmanageable, such as overwork, job insecurity, or
conflict with others. Distress can lead to feelings of frustration, anxiety, and fatigue.
Effects of Distress on Employee Productivity Reduced Productivity: Excessive stress can
impair cognitive processes, leading to mistakes, poor decision-making, and reduced
productivity.
Health Concerns: Prolonged stress may lead to various physical and psychological health
issues, including sleep disturbances, depressive disorders, and cardiovascular ailments, which
subsequently affect overall performance. High Turnover: People who are experiencing
distress might choose to leave their profession, leading to high turnover rates and loss of
talent in the organization. Briefly, eustress is an excellent motivator that enhances
performance and personal development, whereas distress negatively impacts personal well-
being and organizational performance. Managers must make sure that they foster a workplace
that allows for eustress via an effective challenge with capability, support, and means, and
staff recognition of accomplishments, while at the same time discovering and managing
sources of distress to have a healthy and functional workforce.
Question 5: Discuss the McKinsey 7-S Framework and explain how it can help organisations
align their internal elements.
The McKinsey 7-S Framework is a management model that was developed by McKinsey &
Company consultants in the 1980s. It is a method of examining and improving organizational
performance by aligning seven key internal variables. They are Strategy, Structure, Systems,
Shared Values, Skills, Style, and Staff.
The Seven Elements:
Strategy: The strategy to gain competitive advantage.
Structure: The task assignment and organizational structure.
Systems: The procedures and processes that enable the organization to operate.
Collective Values: Fundamental values and cultural background that exist within the
organization.
Skills: The skills and aptitudes of the workers.
Style: The style of leadership and leadership approach.
Personnel: The people in the organization and their backgrounds and opinions.
The model categorizes these building blocks as "hard" (Strategy, Structure, Systems) and
"soft" (Shared Values, Skills, Style, Staff) in character and emphasizes their interdependence.
How it assists in aligning internal factors:
McKinsey 7-S Framework assists organizations in aligning their internal components
through presenting a holistic picture of the interdependence of the seven variables. Through
the integration of all seven factors, organizations can ensure more effectiveness and
flexibility.
Procedures for Applying the Framework
Assess the Current Situation: Review each of the seven factors to understand the current
situation of the organization.
Find Discrepancies: Find out what are the areas that are not consistent with others or with the
organizational objectives.
Develop Alignment Plans: For every misaligned component, create plans for making the
adjustments necessary in a coordinated manner.
Implement Changes: Put the plans into action, tracking the effect on all seven areas.
Continual monitoring and fine-tuning are necessary to be effective over an extended period.
Example:
If a firm decides to shift its strategic emphasis from cost leadership to innovation, it will
require a reorganization involving the establishment of research and development teams.
Furthermore, the firm needs to improve its systems to allow new methods of idea generation
and prototyping, build the competence of employees by training them in creative thinking,
change its leadership style to adopt an entrepreneurial mindset, recruit employees with
innovation skills, and improve shared values that support creativity and risk-taking. Through
the use of the 7-S Framework, the organization can be sure that all the internal elements are
aligned with the newly selected strategy, thus improving the likelihood of its implementation.
In brief, the McKinsey 7-S Framework is a critical tool for organizations looking to improve
performance through aligning internal elements. It provides a structured approach to
understanding the complex interdependencies that exist within an organization and ensures
that change is implemented in an integrated way.
Question 6: Explain the difference between transactional and transformational leadership.
Leadership styles play an important role in organizational culture and the shaping of
employee behaviour. Two of the best-known leadership styles are transactional and
transformational leadership, both of which share some traits and organizational impacts.
Transactional Leadership: Transactional leadership is a control style that is interested in
organization and effectiveness. Transactional leadership is based on the basic principles of
reward and punishment, in which leaders establish clear goals and standards for their
subordinates. Workers are motivated by external rewards, such as raises or bonuses, or by
punishment due to failed goals. Transactional leadership is typically associated with
conservative, hierarchical management, in which the leader holds authority and exercises
control over the underlings' work.
Basic Qualities
Clear structure and hierarchy
Focus on activities and results.
Application of rewards and punishment to cause
Maintenance of the status quo
Transformational leadership:
Transformational leadership is more about inspiring and motivating followers to perform
beyond expectations. Transformational leaders are charismatic and visionary, and they can
communicate a powerful vision that inspires their followers. They are focused on innovation,
creativity, and individual development, and they foster an environment in which employees
are empowered and appreciated.
Basic Features:
Magnetic and motivating
Focus on vision and change
Promotion of innovation and creativity
Developing potential of followers
Variations
Motivation: Transactional leadership is based on extrinsic motivation (reward and
punishment), whereas transformational leadership is based on intrinsic motivation
(inspiration and self-enlargement).
Leadership Style: Transactional leaders have a directive style of leadership, instructing
followers on what to do, while transformational leaders motivate and inspire, locating
initiative in followers. Organizational Impact: Transactional leadership is successful in
retaining stability and accomplishing quick gains but can fail to create long-term growth or
encourage innovation. Transformational leadership, by contrast, facilitates change and can
result in major organizational change and long-term achievement. Follower Relationship:
Transactional leadership is based on a series of transactions or exchanges between the leader
and the follower. With transformational leadership, however, it is based on trust, respect, and
shared vision. Finally, while transactional leadership is essential to maintaining order and to
the achievement of set goals, transformational leadership is essential to inspiring change,
stimulating innovation, and actualizing the full potential of the organization and its
employees. Excellent leaders usually combine the best of both leadership styles, mixing the
approach to suit the needs of the situation and the needs of their employees.
