1. Fall / August 2012
Master of Business Administration- MBA Semester 1
MB0038 – Management Process and Organizational Behaviour
Assignment Set- 1
Q1. Explain strategy as an organisational process.
Strategic planning is an organization's process of defining its strategy, or direction, and making
decisions on allocating its resources to pursue this strategy. In order to determine the direction
of the organization, it is necessary to understand its current position and the possible avenues
through which it can pursue a particular course of action. Generally, strategic planning deals
with at least one of three key questions:
"What do we do?"
"For whom do we do it?"
"How do we excel?"
In many organizations, this is viewed as a process for determining where an organization is
going over the next year or—more typically—3 to 5 years (long term), although some extend
their vision to 20 years.
The key components of 'strategic planning' include an understanding of the firm's vision,
mission, values and strategies. (Often a "Vision Statement" and a "Mission Statement" may
encapsulate the vision and mission).
Vision: outlines what the organization wants to be, or how it wants the world in which it operates
to be (an "idealised" view of the world). It is a long-term view and concentrates on the future. It
can be emotive and is a source of inspiration. For example, a charity working with the poor
might have a vision statement which reads "A World without Poverty."
Mission: Defines the fundamental purpose of an organization or an enterprise, succinctly
describing why it exists and what it does to achieve its vision. For example, the charity above
might have a mission statement as "providing jobs for the homeless and unemployed".
Values: Beliefs that are shared among the stakeholders of an organization. Values drive an
organization's culture[citation needed] and priorities and provide a framework in which decisions
are made. For example, "Knowledge and skills are the keys to success" or "give a man bread
and feed him for a day, but teach him to farm and feed him for life". These example maxims
may set the priorities of self-sufficiency over shelter.
Strategy: Strategy, narrowly defined, means "the art of the general".- a combination of the ends
(goals) for which the firm is striving and the means (policies) by which it is seeking to get there.
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2. A strategy is sometimes called a roadmap - which is the path chosen to plow towards the end
vision. The most important part of implementing the strategy[citation needed] is ensuring the
company is going in the right direction which is towards the end vision.
Organizations sometimes summarize goals and objectives into a mission statement and/or a
vision statement. Others begin with a vision and mission and use them to formulate goals and
objectives.
Many people mistake the vision statement for the mission statement, and sometimes one is
simply used as a longer term version of the other. However they are meant[according to
whom?] to be quite different, with the vision being a descriptive picture of a desired future state,
and the mission being a statement of a business rationale, applicable now as well as in the
future. The mission is therefore the means of successfully achieving the vision.
For an organisation's vision and mission to be effective, they must become assimilated into the
organization's culture. They should also be assessed internally and externally. The internal
assessment should focus on how members inside the organization interpret their mission
statement. The external assessment — which includes all of the businesses stakeholders — is
valuable since it offers a different perspective. These discrepancies between these two
assessments can provide insight into their effectiveness.
A vision statement is a declaration of where you are headed—your future state - to formulate a
picture of what your organization's future makeup will be, and where the organization is headed.
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3. Q2. What are the factors that influences span of control?
Span of control refers to the number of subordinates a manager or supervisor can directly
supervise in an organization. Some of the major factors that affect the span of control in an
organization are described below.
1. Qualification and Qualities
If the superiors and subordinates are well-qualified, trained, experienced, and if they are experts
in their jobs then the span of control will be wide and vice-versa.
2. Level of Management
If the superiors are working at the top-level of management, then they have more
responsibilities. Therefore, their span of control will be narrow and vice-versa.
3. Nature of Work
If the work is difficult then the span of control is narrow and vice-versa.
4. Superior - Subordinates Relationship
If there are good relations between the superior and subordinates, then the span of control will
be wide and vice-versa.
5. Degree of Centralisation
Under decentralisation, the superior has to take fewer decisions. Therefore, he can have a wide
span of control. However, under centralisation, the superior has to take many decisions.
Therefore, he should have a narrow span of control.
6. Use of Communication Technology
If face-to-face communication is used, then the span of control will be narrow. However, if
electronic devices are used for communication then the span of control will be wide.
7. Financial position of the organisation
If the organisation has a good financial position, then it can have a narrow span of control. This
is because a narrow span requires more managers. More managers will increase the
compensation or wage bill of the organisation. However, if the organisation has a bad financial
position, then it will be forced to have a wide span of control.
8. Clearity of Plans and Responsibilities
If the plans are clear and if the responsibilities are well-defined, then the span of control will be
wide. This is because the subordinates will not have to go and consult their superior repeatedly
for getting orders and guidance.
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4. 9. Time available for Subordinates
If the superior is busy with another work, and if he has less time for his subordinates then his
span of control will be narrow and vice-versa.
10. Faith and Trust in Subordinates
If the superior has good faith, trust and confidence in his subordinates then the span of control
can be wider.
11. Physical location
It is easier to control and supervise when all the subordinates and manager are working at the
same location as may happen with a production supervisor and his team working in a factory. In
this case span of control tends to be bigger. In comparison, when manager and the
subordinates work in a widely dispersed location, for example a sales manager and the
salesmen working in different geographical territories, the span of control is smaller.
12. Capability of the Manager
All other things being equal, a more experienced and capable manager will be able to supervise
and control more subordinates as compared to less capable and skilled manager.
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5. Q3. What are the types of plans found in organizations?
Three major types of plans can help managers achieve their organization's goals: strategic,
tactical, and operational. Operational plans lead to the achievement of tactical plans, which in
turn lead to the attainment of strategic plans. In addition to these three types of plans, managers
should also develop a contingency plan in case their original plans fail.
Operational plans
The specific results expected from departments, work groups, and individuals are the
operational goals. These goals are precise and measurable. “Process 150 sales applications
each week” or “Publish 20 books this quarter” are examples of operational goals.
An operational plan is one that a manager uses to accomplish his or her job responsibilities.
Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
(see the next section). Operational plans can be a single-use plan or an ongoing plan.
• Single-use plans apply to activities that do not recur or repeat. A one-time occurrence,
such as a special sales program, is a single-use plan because it deals with the who,
what, where, how, and how much of an activity. A budget is also a single-use plan
because it predicts sources and amounts of income and how much they are used for a
specific project.
• Continuing or ongoing plans are usually made once and retain their value over a
period of years while undergoing periodic revisions and updates. The following are
examples of ongoing plans: A policy provides a broad guideline for managers to follow
when dealing with important areas of decision making. Policies are general statements
that explain how a manager should attempt to handle routine management
responsibilities. Typical human resources policies, for example, address such matters as
employee hiring, terminations, performance appraisals, pay increases, and discipline. A
procedure is a set of step-by-step directions that explains how activities or tasks are to
be carried out. Most organizations have procedures for purchasing supplies and
equipment, for example. This procedure usually begins with a supervisor completing a
purchasing requisition. The requisition is then sent to the next level of management for
approval. The approved requisition is forwarded to the purchasing department.
Depending on the amount of the request, the purchasing department may place an
order, or they may need to secure quotations and/or bids for several vendors before
placing the order. By defining the steps to be taken and the order in which they are to be
done, procedures provide a standardized way of responding to a repetitive problem. A
rule is an explicit statement that tells an employee what he or she can and cannot do.
Rules are “do” and “don't” statements put into place to promote the safety of employees
and the uniform treatment and behavior of employees. For example, rules about
tardiness and absenteeism permit supervisors to make discipline decisions rapidly and
with a high degree of fairness.
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6. Tactical plans
A tactical plan is concerned with what the lower level units within each division must do, how
they must do it, and who is in charge at each level. Tactics are the means needed to activate a
strategy and make it work.
Tactical plans are concerned with shorter time frames and narrower scopes than are strategic
plans. These plans usually span one year or less because they are considered short-term goals.
Long-term goals, on the other hand, can take several years or more to accomplish. Normally, it
is the middle manager's responsibility to take the broad strategic plan and identify specific
tactical actions.
Strategic plans
A strategic plan is an outline of steps designed with the goals of the entire organization as a
whole in mind, rather than with the goals of specific divisions or departments. Strategic planning
begins with an organization's mission.
Strategic plans look ahead over the next two, three, five, or even more years to move the
organization from where it currently is to where it wants to be. Requiring multilevel involvement,
these plans demand harmony among all levels of management within the organization. Top-
level management develops the directional objectives for the entire organization, while lower
levels of management develop compatible objectives and plans to achieve them. Top
management's strategic plan for the entire organization becomes the framework and sets
dimensions for the lower level planning.
Contingency plans
Intelligent and successful management depends upon a constant pursuit of adaptation,
flexibility, and mastery of changing conditions. Strong management requires a “keeping all
options open” approach at all times — that's where contingency planning comes in.
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7. Q4. What are the characteristics of an effective team?
Remaining answers are available in the full assignments.
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