IGNOU MBA MS-1 Free Solved Assignment 2012

ASSIGNMENT

Course Code              :           MS - 1

Course Title               :           Management Functions and Behavior

Assignment Code      :           MS-1/TMA/SEM - I /2012

Coverage                    :           All Blocks

Note: Answer all the questions and submit this assignment on or before April 30, 2012, to the coordinator of your study center.

1.                   What are the essential components of an effective MIS and why? Describe the MIS of an organization, known to you or you are familiar with, giving detailed description and critically evaluate its effectiveness. Briefly describe the organization, you are referring to.

Solution: Components of a marketing information system

A marketing information system (MIS) is intended to bring together disparate items of data into a coherent body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the purposes of decision making. An MIS also provides methods for interpreting the information the MIS provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of information technologies:

"A marketing information system is a continuing and interacting structure of people, equipment and procedures to gather, sort, analyse, evaluate, and distribute pertinent, timely and accurate information for use by marketing decision makers to improve their marketing planning, implementation, and control".

Figure below describes the major components of an MIS, the environmental factors monitored by the system and the types of marketing decision which the MIS seeks to underpin.

The marketing information systems and its subsystems

The explanation of this model of an MIS begins with a description of each of its four main constituent parts: the internal reporting systems, marketing research system, marketing intelligence system and marketing models. It is suggested that whilst the MIS varies in its degree of sophistication - with many in the industrialised countries being computerised and few in the developing countries being so - a fully fledged MIS should have these components, the methods (and technologies) of collection, storing, retrieving and processing data notwithstanding.

Internal reporting systems: All enterprises which have been in operation for any period of time nave a wealth of information. However, this information often remains under-utilised because it is compartmentalised, either in the form of an individual entrepreneur or in the functional departments of larger businesses. That is, information is usually categorised according to its nature so that there are, for example, financial, production, manpower, marketing, stockholding and logistical data. Often the entrepreneur, or various personnel working in the functional departments holding these pieces of data, do not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to appreciate how information from other functional areas might help them and therefore do not request it.

The internal records that are of immediate value to marketing decisions are: orders received, stockholdings and sales invoices. These are but a few of the internal records that can be used by marketing managers, but even this small set of records is capable of generating a great deal of information

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2.                   State and explain the importance of Mission, Vision, Objectives, and Strategy in the functioning of an organization. Find out these statements of a few organizations and explain their significance. How do they help you understand about these organizations? Describe with brief details of the organization you are referring to.

Solution:  Setting of organizational objectives is the starting point of managerial actions. An organization’s end results for which an organization strives is termed as “mission”, purpose, objective, goal, target etc. Many times these terms are used interchangeably as all these denote end results.

MISSION STATEMENTS

A Mission Statement defines the organization's purpose and primary objectives. Its prime function is internal – to define the key measure or measures of the organization’s success – and its prime audience is the leadership team and stockholders. Mission statements are the starting points of an organisation’s strategic planning and goal setting process. They focus attention and assure that internal and external stakeholders understand what the organization is attempting to accomplish.

MISSION AND PURPOSE

Mission and purpose are used interchangeably, though at theoretical level, there is a difference between two. Mission has external orientation and relates the organization to the society in which it operates. A mission statement helps the organization to link its activities to the needs of the society and legitimize its existence. Purpose is also externally focused but it relates to that segment of the society to which it serves; it defines the business which the institution will undertake.

Dimensions of Mission statements:

According to Bart, the strongest organizational impact occurs when mission statements contain 7 essential dimensions.

Key values and beliefs

Distinctive competence

Desired competitive position

Competitive strategy

Compelling goal/vision

Specific customers served and products or services offered

Concern for satisfying multiple stakeholders

According to Vern McGinis, a mission should:

Define what the company is

Define what the company aspires to be

Limited to exclude some ventures

Broad enough to allow for creative growth

Distinguish the company from all others

Serve as framework to evaluate current activities

Stated clearly so that it is understood by all

Developing a Mission Statement

Structure of a mission statement

The following elements can be included in a mission statement. Their sequence can be different. It is important, however, that some elements supporting the accomplishment of the mission be present and not just the mission as a "wish" or dream.

Purpose and values of the organization (products or services, market) or who are the organization's primary "clients" (stakeholders)

What are the responsibilities of the organization towards these "clients"

What are the main objectives supporting the company in accomplishing its mission

A mission statement explains the company's core purpose and values.

1.   At is most basic, the mission statement describes the overall purpose of the organization.

2. If the organization elects to develop a vision statement before developing the mission statement, ask “Why does the image, the vision exist -- what is it’s purpose?” This purpose is often the same as the mission.

3. Developing a mission statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational mission.

4. When wording the mission statement, consider the organization's products, services, markets, values, and concern for public image, and maybe priorities of activities for survival.

5. Consider any changes that may be needed in wording of the mission statement because of any new suggested strategies during a recent strategic planning process.

6. Ensure that wording of the mission is to the extent that management and employees can infer some order of priorities in how products and services are delivered.

7. When refining the mission, a useful exercise is to add or delete a word from the mission to realize the change in scope of the mission statement and assess how concise is its wording.

8. Does the mission statement include sufficient description that the statement clearly separates the mission of the organization from other organizations?

 Mission Statements of Well Known Enterprises

"To solve unsolved problems innovatively" -Mary Kay Cosmetics

"To make people happy.” - Walt Disney

VISION STATEMENTS

Vision statements reflect the ideal image of the organization in the future. They create a focal point for strategic planning and are time bound, with most vision statements projected for a period of 5 to 10 years.  The vision statement communicates both the purpose and values of the organization. For employees, it gives direction about how they are expected to behave and inspires them to give their best. Shared with customers, it shapes customers’ understanding of why they should work with the organization.

Developing a Vision Statement

1.   The vision statement includes vivid description of the organization as it effectively carries out its operations.

2. Developing a vision statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational vision.

3. Developing the vision can be the most enjoyable part of planning, but the part where time easily gets away from you.

4. Note that originally, the vision was a compelling description of the state and function of the organization once it had implemented the strategic plan, i.e., a very attractive image toward which the organization was attracted and guided by the strategic plan. Recently, the vision has become more of a motivational tool, too often including highly idealistic phrasing and activities which the organization cannot realistically aspire.

VALUE STATEMENTS

Value statements define the organisation’s basic philosophy, principles and ideals. They also set the ethical tone for the institution. An organisation’s values are evident in the statements that define the organization and the processes used to achieve its mission and vision.

Developing a Values Statement

1. Values represent the core priorities in the organization’s culture, including what drives members’ priorities and how they truly act in the organization, etc. Values are increasingly important in strategic planning. They often drive the intent and direction for “organic” planners.

2. Developing a values statement can be quick culture-specific, i.e., participants may use methods ranging from highly analytical and rational to highly creative and divergent, e.g., focused discussions, divergent experiences around daydreams, sharing stories, etc. Therefore, visit with the participants how they might like to arrive at description of their organizational values.

3. Establish four to six core values from which the organization would like to operate. Consider values of customers, shareholders, employees and the community.

4. Notice any differences between the organization’s preferred values and its true values (the values actually reflected by members’ behaviors in the organization).

5. Incorporate into the strategic plan, actions to align actual behavior with preferred behaviors.

OBJECTIVES

Objectives are the ends toward which activity is aimed-they are the end results to ward which activity is aimed.

“Objectives are goals, aims or purposes that organizations wish over varying periods of time”-McFarland

“A managerial objective is the intended goal that prescribes definite scope and suggests direction to the planning efforts of a manger”-Terry and Franklin

GUIDELINES FOR OBJECTIVE SETTING

Objectives

Must be clearly specified

Must be set taking into account the various factors affecting their achievement

Should be consistent with organizational mission

Should be rational and realistic rather than idealistic

Should be achievable but must provide challenge to those responsible for achievement

Should start with “to” and be followed by an action verb

Should be consistent over the period of time

Should be periodically reviewed

Should have hierarchy

Organisational objectives

Should have social sanction

An organization may have multiple objectives

Can be changed

NATURE OF OBJECTIVES

Each organization or group of  individuals have some objectives

Objectives may be broad or they may be specifically mentioned

Objectives may be clearly defined

Objectives have hierarchy.

Organisational objectives have social sanction, that is, they are created within the social norms.

An organisation may have multiple objectives.

 Organisational objectives can be changed

 To define an organization

 To provide directions for decision making

 To set standards of performance

 To provide a basis for decentralization

 Integrate organization, group and individual

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3.                   What are the essential components /indicators/ Determinants of Organizational Climate and Organisational Culture? Take example of two organizations, list out the component /indicators/ dimensions of their climate and culture and explain their corresponding perceived major focus, with example. Briefly describe the organizations you are referring to.

Solution:   This study aimed to determine the dimensions of organizational climate within four- and five-star hotels and to assess whether these dimensions vary significantly across hotels. Jones and James’s climate survey was shortened, modified to incorporate the psychometric improvements of Ryder and Southey, and tailored for specific use within hotels. The survey was administered to 1,401 employees from 14 hotels and provided a high index of reliability (α = .959). From items representing 35 a priori concepts, principal components analysis identified seven dimensions, which were labeled leader facilitation and support; professional and organizational esprit; conflict and ambiguity; regulations, organization, and pressure; job variety, challenge, and autonomy; job standards; and workgroup cooperation, friendliness, and warmth. Univariate analyses found each of the dimensions to vary significantly across the 14 hotels.

In management  literature there is often ambiguity about the two concepts – organisational culture and

organisational climate. As explained earlier, organisational culture is a macro  phenomenon which refers to the patterns  of beliefs, assumptions, values, and  behaviours reflecting commonality in people working together. However,  organisational climate is a micro phenomenon and reflects how employees in an

organisation feel about the characteristics and quality of culture like morale,  goodwill, employee relations, job satisfaction, commitmrnt at the organisational,  department or unit level. It refers to the psychological enviornment in which  behaviour of organisational members occurs. It is a relatively persistent set of

perceptions held by organisational members about the organisational culture. Another viewpoint about climate is that various variables get subsumed under the concept of  climate, whereas has unique indicators like symbols, rites, myths, and stories.

Daniel Denison’s model (1990) asserts that organizational culture can be described by four general dimensions – Mission, Adaptability, Involvement and Consistency. Each of these general dimensions is further described by the following three sub-dimensions:

Mission - Strategic Direction and Intent, Goals and Objectives and Vision

Adaptability - Creating Change, Customer Focus and Organizational Learning

Involvement - Empowerment, Team Orientation and Capability Development

Consistency - Core Values, Agreement, Coordination/Integration.

The Paradigm: What the organization is about; what it does; its mission; its values.

Control Systems: The processes in place to monitor what is going on. Role cultures would have vast rulebooks. There would be more reliance on individualism in a power culture.

Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business.

Power Structures: Who makes the decisions, how widely spread is power, and on what is power based?

Symbols: These include organizational logos and designs, but also extend to symbols of power such as parking spaces and executive washrooms.

Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary. Stories and Myths: build up about people and events, and convey a message about what is valued within the organization. These elements may overlap. Power structures may depend on control systems, which may exploit the very rituals that generate stories which may not be true.

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4.                   What are the element of an organization structure, and the factors influencing its choice? Take example of two organizations and explain with logic as to how are their structures suited to their requirements or influenced by the other factors.

Solution:  Elements of organizational structure give companies effective and efficient ways to run their businesses, manage their employees and ensure that tasks are completed. Elements such as work specialization, departmentalization, chain of command, span of control, centralization, decentralization and formalization make up organizational structure. Each element impacts how employees interact with each other to accomplish company goals and objectives.

Work Specialization

Work specialization ensures that each employee has a set of specific duties they're expected to perform based on their work experience, education and skills. It prevents employees from being expected to perform tasks for which they have no previous experience or training.

Departmentalization

The departmentalization element breaks down how jobs are grouped together to create departments. Departments are created based on the types of jobs employees perform, the products or brands they're assigned to, geographical locations or customer needs.

Chain of Command

In a company, each employee is expected to report to one manager, rather than to several. Mangers are responsible for assigning tasks, informing employees of expectations and deadlines and offering motivation. Managers are also available to answer job-related questions from employees and handle conflicts within their departments. Employees are responsible for completing duties assigned to them by their manager accurately and in a timely fashion.

Span of Control

Span of control suggests how many employees each manager can handle within an organization. This element of organizational structure also outlines the number of mangers an organization needs, which is typically determined based on the number of employees and departments a company has.

Centralization and Decentralization

In a centralized organization, all decisions are made by c-level managers such as the chief executive officer, chief operating officer and chief marketing officer. Centralization leaves department managers with little to no input. This system is typical in larger, corporate organizations.

A decentralized system affords all managers the opportunity to give input, while bigger decisions are still made by c-level managers.

Formalization

Formalization is the element that outlines employee roles within a workplace, as defined by the rules and guidelines developed by management. Formalization determines whether employees have to sign in and out upon arriving and exiting the office, frequency and length of breaks, computer usage and dress code.

Factors Affecting Organizational Structure

Organizational structure is the framework companies use to outline their authority and communication processes. The framework usually includes policies, rules and responsibilities for each individual in the organization. Several factors affect the organizational structure of a company. These factors can be internal or external. Small business owners must be responsible for creating their companies organizational structure framework. Business owners may use a management consultant or review information from the Small Business Administration before setting up their organizational structure.

Size

Size is many times the driving factor for a company’s organizational structure. Smaller or home-based businesses do not usually have a vast structure because the business owner is usually responsible for all tasks. Larger business organizations usually require a more intense framework for their organizational structure. Companies with more employees usually require more managers for supervising these individuals. Highly specialized business operations can also require a more formal organizational structure.

Life Cycle

The company’s life cycle also plays an important part in the development of an organizational structure. Business owners attempting to grow and expand their company’s operations usually develop an organizational structure to outline their company’s business mission and goals. Businesses reaching peak performance usually become more mechanical in their organizational structure. This occurs as the chain of command increases from the business owner down to frontline employees. Mature companies usually focus on developing an organizational structure to improve efficiency and profitability. These improvements may be the result of more competitors entering the economic marketplace.

Strategy

Business strategies can also be a factor in a company’s organizational structure development. High-growth companies usually have smaller organizational structures so they can react to changes in the business environment quicker than other companies. Business owners may also be reluctant to give up managerial control in business operations. Small businesses still looking to define their business strategy often delay creating an organizational structure. Business owners are usually more interested in setting business strategies rather than developing and implementing an internal business structure.

Business Environment

The external business environment can also play an important part in a company’s organizational structure. Dynamic environments with constantly changing consumer desires or behavior is often more turbulent than stable environments. Companies attempting to meet consumer demand can struggle when creating an organizational structure in a dynamic environment. More time and capital can also be spent in dynamic environments attending to create and organizational structure. This additional capital is usually a negative

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5.                   Why do groups get formed? What are the stages of group formation? Explain the formation of a group and relate it to the stages with brief description of purpose and structure of the group, as you are aware of. Also briefly describe the organization, if this group was the part of it.

Solution: The formation of a group and relate it to the stages with brief description of purpose and structure of the group mention below:

Stage 1: Forming

In the Forming stage, personal relations are characterized by dependence. Group members rely

on safe, patterned behavior and look to the group leader for guidance and direction. Group

members have a desire for acceptance by the group and a need to be know that the group is safe.

They set about gathering impressions and data about the similarities and differences among them

and forming preferences for future subgrouping. Rules of behavior seem to be to keep things

simple and to avoid controversy. Serious topics and feelings are avoided. 

The major task functions also concern orientation. Members attempt to become oriented to the

tasks as well as to one another. Discussion centers around defining the scope of the task, how to

approach it, and similar concerns. To grow from this stage to the next, each member must

relinquish the comfort of non-threatening topics and risk the possibility of conflict.

Stage 2: Storming

The next stage, called Storming, is characterized by competition and conflict in the personalrelations dimension an organization in the task-functions dimension. As the group members

attempt to organize for the task, conflict inevitably results in their personal relations. Individuals

have to bend and mold their feelings, ideas, attitudes, and beliefs to suit the group organization.

Because of "fear of exposure" or "fear of failure," there will be an increased desire for structural

clarification and commitment. Although conflicts may or may not surface as group issues, they

do exist. Questions will arise about who is going to be responsible for what, what the rules are,

what the reward system is, and what criteria for evaluation are. These reflect conflicts over

leadership, structure, power, and authority. There may be wide swings in members’ behavior

based on emerging issues of competition and hostilities. Because of the discomfort generated

during this stage, some members may remain completely silent while others attempt to dominate.

In order to progress to the next stage, group members must move from a "testing and proving"

mentality to a problem-solving mentality. The most important trait in helping groups to move on

to the next stage seems to be the ability to listen.

Stage 3: Norming

In the Norming stage, interpersonal relations are characterized by cohesion. Group members are

engaged in active acknowledgment of all members’ contributions, community building and

maintenance, and solving of group issues. Members are willing to change theirpreconceived

ideas or opinions on the basis of facts presented by other members, and they actively ask

questions of one another. Leadership is shared, and cliques dissolve. When members begin to

1 know-and identify with-one another, the level of trust in their personal relations contributes to

the development of group cohesion. It is during this stage of development (assuming the group

gets this far) that people begin to experience a sense of group belonging and a feeling of relief as

a result of resolving interpersonal conflicts.

The major task function of stage three is the data flow between group members: They share

feelings and ideas, solicit and give feedback to one another, and explore actions related to the

task. Creativity is high. If this stage of data flow and cohesion is attained by the group members,

their interactions are characterized by openness and sharing of information on both a personal

and task level. They feel good about being part of an effective group.

The major drawback of the norming stage is that members may begin to fear the inevitable future

breakup of the group; they may resist change of any sort. 

Stage 4: Performing

The Performing stage is not reached by all groups. If group members are able to evolve to stage

four, their capacity, range, and depth of personal relations expand to true interdependence. In this

stage, people can work independently, in subgroups, or as a total unit with equal facility. Their

roles and authorities dynamically adjust to the changing needs of the group and individuals.

Stage four is marked by interdependence in personal relations and problem solving in the realm

of task functions. By now, the group should be most productive. Individual members have

become self-assuring, and the need for group approval is past. Members are both highly task

oriented and highly people oriented. There is unity: group identity is complete, group morale is

high, and group loyalty is intense. The task function becomes genuine problem solving, leading

toward optimal solutions and optimum group development. There is support for experimentation

in solving problems and an emphasis on achievement. The overall goal is productivity through

problem solving and work.

Stage 5: Adjourning

The final stage, Adjourning, involves the termination of task behaviors and disengagement from

relationships. A planned conclusion usually includes recognition for participation and

achievement and an opportunity for members to say personal goodbyes. Concluding a group can

create some apprehension - in effect, a minor crisis. The termination of the group is a regressive

movement from giving up control to giving up inclusion in the group. The most effective

interventions in this stage are those that facilitate task termination and the disengagement

process

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