Management & Organizational Behaviour Notes

Basic Functions of Management: Planning (Part 1)

Learning Outcomes

  • Define the concept of planning within organizations.

  • Discuss how organizations use plans at all management levels (from top to bottom).

  • Understand the nature of organizational goals and how they facilitate performance.

  • Discuss the planning techniques of SWOT Analysis and PESTLE Analysis.

Introduction

  • Planning is a common activity in everyday life, such as:

    • Coordinating events (sporting, charity, weddings, school plays, book signings, bake sales, concerts).

    • Planning meetings (business, brainstorming sessions).

    • Planning social gatherings (parties, reunions, holidays).

    • Organizing seminars or conferences.

Planning Within Organizations

  • Planning includes specifying goals and plans.

  • A goal is a future target or end result an organization wishes to achieve.

  • A plan refers to the methods devised to achieve an organizational goal.

  • Planning is a management function involving setting goals and deciding how to achieve them.

  • Planning is the process of choosing a goal and developing a method or strategy to achieve that goal.

Planning Process

  • Mission:

  • Goals:

  • Plans:

  • Goal attainment:

    • Organizational efficiency and effectiveness.

  • Organizational vision:

    • A mental picture that you have and want to turn into a reality in the future

  • Organizational mission:

    • The organization's purpose or fundamental reason for existence.

  • The planning process builds on the mission of the organization.

Planning Levels and Goal Alignment

  • Planning works best when goals and plans at lower and middle management levels support those at the top level.

  • Vision:

    • Top Managers

    • Setting missions. There are four ways:

      • Targeting

      • The common-enemy mission

      • The role-model mission

      • The internal-transformation mission

  • Mission:

    • Middle Management

      • Tactical Plans/Plans by Objectives:

        • Management by objectives (MBO) is a management technique used at all levels of an organization to develop and execute tactical plans.

  • Objectives:

    • First-Level Managers

      • Operational Plans:

        • Standing Plans

        • Single-Use Plans

Planning Process Details

  • Starting at the Top: Setting Missions.

  • Bending in the Middle:

    • Middle management develops and executes tactical plans or operational planning to accomplish an organization's mission.

    • Tactical plans specify how an organization intends to utilize its resources and budgets to achieve specific goals within its mission.

  • Ending at the Bottom:

    • Lower-level management develops and carries out operational plans, which are day-to-day plans for producing or delivering an organization's products and/or services.

Standing Plans

  • Standing plans save managers time because they are created once and then used repeatedly to handle frequently recurring events (unlike single-use plans).

  • There are three kinds of standing plans:

    • Policies:

      • Indicate a general course of action that organization managers could take in response to a particular event or situation.

    • Procedures:

      • Indicate a series of steps (detailed, step-by-step instructions) that should be taken in response to a particular event or situation.

    • Rules and regulations:

      • Specify what must or must not happen.

Single-Use Plans

  • Single-use plans deal with unique, one-time-only events (they are created, executed, and then never used again).

  • There are two main types of single-use plans:

    • Programmes

      • Dividing relevant tasks into parts or projects

      • Determining the relationships among the parts and developing a sequence

      • Deciding who will take responsibility for each part

      • Determining how each part will be completed and what resources will be necessary

      • Estimating the time required for completion of each part

      • Developing a schedule for implementation of each step

    • Projects

      • Plan that coordinates a set of limited-scope tasks or activities

      • Do not need to be divided into several components in order to reach an important non-recurring goal

      • Has its own budget

Planning Techniques

  • SWOT Analysis

    • A planning tool used to understand key factors – strengths, weaknesses, opportunities, and threats – involved in a project or in an organization.

    • It involves stating the objective of the organization or project and identifying the internal and external factors.

    • It helps to understand an organization or a situation

    • It helps for decision-making for many different scenarios.

  • PESTLE Analysis

    • It helps to maximize opportunities and minimize threats (external factors) that could affect organizations' decisions.

    • It has six external influences on an organization:

      • Political

      • Economic

      • Sociological

      • Technological

      • Legal

      • Environmental

Motivation

Learning Outcomes

  • Define the term motivation

  • Describe Maslow's Need Hierarchy theory of motivation

  • Discuss the McGregor's Theory X and Theory Y and the application of these two assumptions

  • Determine the relationship between Herzberg's Two Factor Theory and Maslow's need hierarchy

  • Classify the financial and non-financial techniques of motivation.

Introduction

  • Motivation is the psychological force that moves a person for action and continuously inspires him in the course of action.

Meaning of Motivation

  • Motivation can be defined as a process of channeling a person's inner drive so that he wants to accomplish the goals of the organization.

  • Motivation is a behavioral science that helps to understand why people behave as they do.

  • The concept of motivation is mainly psychological.

Importance of Motivation

  • Utilization of human resource

  • Use of material resources

  • Willingness for work

  • Good labor relations

  • Develops cooperation

  • Improve skill and knowledge

  • Boosts morale

  • Facilitates change

  • Sense of belongingness

  • Achieve organizational objectives

Theories of Motivation

  • Maslow's Need Hierarchy Theory

    • Self-Actualization Needs:

      • Reaching one's fullest potential according to individual perspectives.

    • Esteem Needs

      • Desire to feel good about oneself. Usually driven by a desire for prestige

    • Social Needs

      • Sense of belonging to someone or a particular group either at workplace or home

    • Safety and Security Needs

      • Physical safety and well-being: Safe from harm, emotional security, financial security.

    • Physiological Needs

      • Necessary needs such as food, water, oxygen. Things we can't live without.

  • McGregor's Theory X and Theory Y

    • Based on assumptions of the dual nature of human beings, which are manageable in two ways:

      • Theory X:

        • A set of negative assumptions of human behavior

      • Theory Y:

        • A set of positive assumptions of human behavior

  • Herzberg's Two-Factor Theory

    • Frederick Herzberg (1959) created a two-dimensional model of factors that influence people's attitudes towards work.

      • Motivators (satisfiers) – linked to long-term positive effects in job performance

      • Hygiene factors (dissatisfiers) – consistently produced only short-term changes in job attitudes and performance

    • Herzberg Two-Factor Theory

      • Job Dissatisfaction

        • Influenced by Hygiene Factors

          • Working Conditions

          • Co-worker Relations

          • Policies and Rules

          • Supervisor Quality

          • Base Wage, Salary

      • Job Satisfaction

        • Influenced by Satisfier Factors

          • Achievement

          • Recognition

          • Responsibility

          • Work Itself

          • Advancement

          • Personal Growth

    • Principles:

      • Improving the satisfier factors increases job satisfaction

      • Improving the hygiene factors decreases job dissatisfaction

Organisational Behaviour Part 1

Learning Outcomes

  • Explain the values and value system

  • Discuss the concept of attitudes

  • Discuss the concept and determinants on theory of personality

  • Describe the emotional intelligence

  • Outline the factors affecting perception

Definition of Values

  • Values are learnt from the society and hence are acceptable to the society as preferred 'mode of conduct' or 'end state'.

  • Values are stable and long-lasting beliefs about what is important in a variety of situations

Value System

  • The term 'value system' implies a ranking of individual values

  • It is a framework of personal philosophy, which governs and influences the individual's reactions and responses to various situations

  • Values are:

    • Moralistic in nature

    • Fewer in number than attitudes

    • Most central to an individual

    • Relatively permanent and resistant to change

    • Guide actions and judgments across specific objects or situations

Types of Values

  • Personal values

    • Formed from past experience and interaction with others

  • Cultural values

    • Dominant beliefs are held by collective society

  • Organizational values

    • Organizational culture in terms of shared assumptions, values and beliefs

  • Professional values

    • Held within an occupational group

Concept of Attitudes

  • It reflects how one feels about something

  • It is a persistent tendency to feel and behave a particular way toward some objects, persons or events

Attitudes vs. Values

  • Both are powerful instruments influencing cognitive process and behaviour of people

  • Both are learned and acquired from the same sources: people and objects

  • Both are relatively permanent and resistant to change

  • Both are interchangeable

  • Therefore, values people hold can explain their attitudes and, in many cases, the behaviours they engage in.

  • HOWEVER, it cannot determine which values underlie which attitudes and behaviours

Formation of Attitudes

  • Direct experience

    • attitudes are formed on the basis of one's past experience in concerned object or person

  • Social learning

    • The process of deriving attitudes from family, peer groups, religious organisations and culture. It acquires attitudes from his/her environment in an indirect manner

Organisational Behaviour Part 2

Learning Outcomes

  • Discuss the concept of group and group dynamics

  • Outline the types of group

  • Explain group behavior

  • Outline the types of team

  • Identify the difference between group and team

  • Describe team building and managing effective Team.

Introduction

  • Individuals work in organisations in collections, are known as 'groups'. As a matter of fact, groups have central part of everyday human lives. At any given time, we are members in many different groups, such as, our family, student club, work groups, sport clubs, professional associations, and political parties. At any one time, the average individual belongs to five or six different groups.

Concept of Group and Group Dynamics

  • A Group is a collection of two or more individuals, interacting and interdependent, which have come together to achieve particular objectives.

  • A group is, thus, an aggregation of people who interact with each other, are aware of one another, have a common objective, and perceive themselves to be a group.

Characteristics of a Group

  • Two or More people

  • Collective Identity

  • Interaction

  • Common Purpose

Managing Effective Teams

  • Balanced roles

  • Open communication

  • Handling stress

  • Team choices

  • Team goals

  • Review mechanism

  • Shared leadership

  • Facilitation skills

  • Consensus

Decision-Making

Learning Outcomes

  • Define decision and decision-making

  • Discuss the different types of decisions

  • Describe the process of decision-making

  • Differentiate between individual and group decisions

  • Explain the different techniques of decision-making

Introduction

  • Planning is important in organizational context as well as in our daily life. In planning, we face some situations like, who will do it? How will it be done? Where it will be done? Answering these questions means taking some decisions. Thus, decision-making is an element in the planning process. Decision-making is important in our life as well as in business organisations. Managers spend considerable amount of time in making decisions. Good decisions increase organisational efficiency

Meaning of Decision and Decision-Making

  • Decision

    • A choice which is made out of the available alternatives.

    • It implies that to make a decision, there must be some alternatives.

    • These alternatives are analysed and finally a particular alternative is selected

  • Decision-Making

    • Involves the selection of a particular course of action.

    • It is a mental activity requiring the consideration of different factors to make the best decision.

Types of Decisions

  • Programmed decisions

    1. These decisions are recurring in nature.

    2. These decisions are guided by organizational policies, procedures etc.

    3. These decisions are taken by the lower level management.

    4. Here, the problems are structured.

  • Non-programmed decisions

    1. These decisions are non-recurring in nature.

    2. These decisions are guided by the factors of the particular situation.

    3. These decisions are taken by the top level management.

    4. Here, the problems are unstructured.

Factors influencing decision making in an Organisation context

  • Leadership style

  • External Environment

  • Group dynamics and Team involvement

  • Time constraints

  • Personal factors

  • Strategic objectives

  • Organisational values

Examination Details

  • 2 hours

  • Wednesday, 20/11/2024, 9am

  • Case-Study

  • Answer ALL questions

  • Total Marks 60