MU0002 Management & ion Development

8/9/2019 MU0002 Management & ion Development

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Master of Business Administration-MBA Semester 3MU0002 Management and Organization Development - 2 Credits

(Book ID: B1021)Assignment Set- 1

Question 1: Write a detailed note on importance of management.

Answer 1:

Importance of Management

According toDrucker, management is the dynamic lift-giving element in everyorganization. It is the activating force that gets things done through people. Without

management, an organization is merely a collection of men, machines, money andmaterial. In its absence, the resources of production remain resources and never become

production. The importance of management can be understood from the following points.

(i) Optimum use of resources:

Management ensures optimum utilization of resources by attempting to avoid wastage of

all kinds. It helps in putting the resources to the best advantage within the limitations setby the organization and its environment. A right climate is created for workers to put in

their best and show superior performance.

(ii) Effective leadership and motivation:

In the absence of management, the working of an enterprise will become random andhaphazard in nature. Employees feel a sense of security when they find a body of

individuals working day and night for the continued growth of an organization.Management makes group effort more effective. It enables employees to move

cooperatively and achieve goals in a coordinated manner. Management creates teamworkand motivates employees to work harder and better by providing necessary guidance,

counseling and effective leadership.

(iii) Establishers sound industrial relations:

Management minimizes industrial disputes and contributes to sound industrial relations

in an undertaking. Industrial peace is an essential requirement for increasing productivity.To this end, manager tries to strike a happy balance between the demands of employees

and organizational requirements. They initiate prompt actions whenever workers expressdissatisfaction over organizational rules, methods, procedures and reward systems.


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(iv) Achievement of goals:

Management plays an important role in the achievement of objectives of an organization.Objective can be achieved only when the human and non-human resources are combined

in a proper way. Management is goal-oriented. With a view to realize the predetermined

goals-managers plan carefully. Organize the resources properly; hire competent peopleand provide necessary guidance. They try to put everything on the right tract. Thusunnecessary deviations. Overlapping efforts and waste motions are avoided. In the final

analysis, all these help in realizing goals with maximum efficiency.

(v) Change and growth:

Changes in technology, government policy, competition, etc., often threaten the survival

of a firm. Failure to take note of customers needs regarding full efficiently has speltdoom for Ideal java in the two-wheeler market in India. An enterprise has to take note

of these changes and adapt itself quickly.Managers help an organization by anticipating

these changes (careful planning, forecasting combined with efficient use of resources)and taking appropriate steps. Successful managers are the ones who anticipate and adjustto changing circumstances rather than being passively swept along or caught unprepared.

(vi) Improves standard of living:

Management improves the standard of living of people by (a) using scarce resources

efficiently and turning out profits. (b) Ensuring the survival of the firm in the face ofcontinued changes. (c) Exploiting new ideas for the benefit of society as a whole and (d)

developing employee talents and capabilities while at work and prompting them to showpeak performance.


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Question 2: What is Organization Development? Compare organization developmentwith management development?

Answer 2:

Organization Development (OD) is a response to change, a complex educational strategyintended to change the beliefs, attitudes, values and structure of organization so that theycan better adapt to new technologies, markets, and challenges, and the dizzying rate of

change itself. (Bennis, 1969).

OD can be defined as a planned and sustained effort to apply behavioural science for

system improvement, using reflexive, self-analytic methods. (Schmuck andMiles, 1971)

Organizational development is a process of planned change- change of an organizationsculture from one which avoids an examination of social processes (especially decision

making, planning and communication) to one which institutionalizes and legitimizes this

examination. (Burke and Hornstein, 1972)

Organization development is an organizational process for understanding and improving

any and all substantive processes an organization may develop for performing any taskand pursuing any objectives. A process for improving processes that is what OD

has basically sought to be for approximately 25 years (Vaill, 1989)

Organizational development is a set of behavioural science-based theories, values,

strategies, and techniques aimed at the planned change of the organizational work settingfor the purpose of enhancing individual development and improving organizational

performance, through the alteration of organizational members on-the-job behaviours.

(Porras and Robertson, 1992)

OD is a systematic application of behavioral science knowledge to the planned

development and reinforcement of organizational strategies, structure, and processes forimproving an organizations effectiveness. (Cummings and Worley, 1993)

Organization development is a planned process of change in an organizations culture

through the utilization of behavioural science technologies, research, and theory. (Burke,1994)

As you can see, these definitions overlap a great deal (thats encouraging), and contain

several unique insights (thats enlightening). All authors agree that OD appliesbehavioural science to achieve planned change. Likewise, they agree that the target ofchange is the total organization or system and that the goals are increased organizational

effectiveness and individual development.


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Collectively, these definitions convey a sense of what organization development is anddoes. They describe in broad outline the nature and methods of OD. There is no set

definition of OD and no agreement on the boundaries of the field, that is, what practicesshould be included and excluded. But these are not serious constraints given that the field

is still evolving, and that practitioners share a central core of understanding as shown in

the preceding definitions.

Now lets turn to our definition of organization development. We do not propose it as the

right definition, but as one that includes characteristics we think are important for thepresent and future of the field.

Organization development is a long-term effort, led and supported by top management,

to improve an organizations visioning, empowerment, learning, and problem-solvingprocesses, through an ongoing, collaborative management of organization culture-with

special emphasis on the culture of intact work teams and other team configurations-usingthe consultant-facilitator role and the theory and technology of applied behavioural

science, including action research. This definition is lengthy, but it includes a number ofcomponents that we consider essential.

Difference between Management Development and OD

Factors Management Development Organization Development

Objectives Increasing managerscontributions to goalaccomplishments.

Changing the nature of the organization.

Focus Train and equip employees and

managers to perform better inexisting organization.

Focus on design, not on the managers;

focus on achieving improvement indesign.

Approach

Time

Educative and training

Short-range.

Problem-solving approach.

Long-range strategy for organizationalinnovation and renewal.

Specialist No special requirement. Trained specialists required.


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Question 3:Mr. Vikram is the GeneralManager of a textile company. He has toparticipate in a meeting with the board of directors of the company. He is expected to

conduct the SWOT Analysis of the company. Help him in preparing the questionchecklist in order to attain the required information about the companys Strengths,

Weaknesses, Opportunities and Threats.

Answer 3:

Conduct a situational or SWOT analysis

A situation orSWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is

vital for the creation of any strategic plan. The SWOT analysis begins with a scan of theexternal environment. Organizations need to examine their business situation in order to

map out the opportunities and threats present in their environments. Sources ofinformation may include stakeholders like, customers (internal and external), suppliers,

governments (local, state, federal, international), professional or trade associations

(conventions and exhibitions), journals and reports (scientific, professional, and trade).

SWOT analysis provides the assumptions and facts on which a plan will be based.Analyzing strengths and weaknesses comprises the internal assessment of the

organization.

For assessing the strengths of the organization the following questions are important:

1. What makes the organization distinctive?

2. How efficient is our manufacturing?

3. How skilled is our workforce?

4. What is our market share?

5. What financing is available?

6. Do we have a superior reputation?

For assessing the weaknesses of the organization the following questions are important:

1. What are the vulnerable areas of the organization that could be exploited?

2. Are the facilities outdated?

3. Is research and development adequate?

4. Are the technologies obsolete?


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For identifying Opportunities the following elements need to be looked at:

1. In which areas is the competition not meeting customer needs?

2. What are the possible new markets?

3. What is the strength of the economy?

4. Are our rivals weak?

5. What are the emerging technologies?

6. Is there a possibility of growth of existing market?)

IdentifyingT

hreats involves the following:

1. In which areas does the competition meet customer needs more effectively?

2. Are there new competitors?

3. Is there a shortage of resources?

4. Are market tastes changing?

5. What are the new regulations?

6. What substitute products exist?

In general terms, the best strategy is one that fits the organizations strengths to

opportunities in the environment.

The SWOT analysis is used as a baseline for future improvement, as well as gap analysis.Comparing the organization to external benchmarks (the best practices) is used to assess

current capabilities. Benchmarking systematically compares performance measures such

as efficiency, effectiveness, or outcomes of an organization against similar measuresfrom other internal or external organizations.

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MU0002 Management & ion Development