Management Process and Organizational Behavior

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Master of Business Administration-MBA Semester 1

Subject code MB0022

Subject Name: Management Process and Organizational Behavior

Assignment Set- 1

Q.1 “Today managers need to perform various functions”: Elaborate the statement

Managers create and maintain an internal environment, commonly called the organization, so that others can work efficiently in it. A manager’s job consists of planning, organizing, directing, and controlling the resources of the organization. These resources include people, jobs or positions, technology, facilities and equipment, materials and supplies, information, and money. Managers work in a dynamic environment and must anticipate and adapt to challenges. The manager looks after more than one function. Therefore, managerial practices used successfully in big firms cannot be blindly used in small-scale units. Basic managerial functions in large and small business are the same. But the manner in which these functions should be carried out can be different. Managing starts with planning. A manager with a definite and welldefined plan has more chances of success than another who tries to start an enterprise without planning. According to Killen” planning is the process of deciding in advance what is to be done‚who is to do it‚how it is to be done and when it is to be done’’. Planning involves thinking and decision and is, therefore, called a logical process. Planning is a continuous process as changes in plans have to be made from time to time to take care of changing environment. Many a times, a vague approach is adapted to planning in a small firm. There is a false impression that small firms are uncomplicated and do not require planning. The small-scale manager does not want to engage his employees in the planning process due to the desire to keep the secrets with him. Personal accountability for results, lack of expert staff and not having planning skills are other major obstacles to planning in small firms. The owner or manager of a small enterprise is too involved in day-to-day operation to try planning before com encing actual operation. But they need pre-planning mostbecause small firms have limited resources to conquer their upcoming problem and cannot afford to finance losses that can take place while adjusting to unanticipated happenings/changes. An manager needs an enterprise which can achieve the business objectives. During the function of organising he leads human resources to successful completion of the project, arranging the functions and activities into different levels in the organization structure, thus facilitating the assignments of personnel according to their capabilities, skills and motivation. According to Peter F. Drucker the process of organizing consists of three steps - activities analysis, decisions analysis and relation analysis.

(i). Activities Analysis: It consists of the following:
a) Determining the main functions for achieving the objectives of the firm. b) Various sub-functions in each major function.
c) Amount of work in each major function and its sub-function. d) The position required to perform the activities.
(ii) Decisions Analysis: It consists of the following:
a) Choosing the basis of departmentalization so that functions could be grouped into specialized units. Generally, functional departmentation is appropriate for small-scale units. Customers, Products and territories are other important base of departmentalization. b) Choosing the type of organization structure so that departments are incorporated into a formal structure. (iii) Relations Analysis: The authority, responsibility and accountability of every position and its relationship with other positions are clearly defined. Various positions are manned with persons having the necessary education, training, experience and other qualifications. To obtain best possible benefit from each employee it is necessary to delegate...
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