Assignment-B

1. The management of RKM Enterprises is not professional and is family based. Analyse
and comment?
Answer 1:
The management of RKM Enterprises is not professional and is family based.
Key decisions were made by Mr. R.K. Mishra, who is also the Director of RKM
Enterprises (small trading company of Silk Sarees in Varanasi)
Finance department is handled by Ritesh (son of Mr. R.K. Mishra) and is also assisting
his father in other strategy related matters.
Since, Mr. R. K. Mishra takes all key decisions for the company, it shows that all decision
making, power exercised and control is centralized and also in the hands of family-member.
Hence, we can conclude that RKM Enterprises is family based.
For any small business like we have seen in this case study, it is very difficult to survive or face
the stiff competition from competitors (like traders in this instance) with authoritarian leadership
without decentralizing the power and authority to middle/lower level management.

2. Analyse the changes brought in by Rohit. ?

Answer 2:
After joining RKM Enterprises, Rohit made several changes in the organization:
Rohit restructured the whole company from family to professional business so that the
company can face the stiff competition from other traders.
Organization structure was also made flatter. Organizational structure changed from
vertical to horizontal. The authority to take several major decisions was transmitted to
lower levels. So, that higher level of responsibility, commitment and effectiveness should
be increased
Involvement of subordinates in decision making. Instructions were given to all managers
to consult their subordinates before taking any decisions. The opinion of subordinates
would give better idea of understanding. Involvement of lower staff would lead to think
vast.
Family based business become professional. As, Rohit was determined to see that the
company was professionally managed. Now, the power has been shifted from top
management to lower structural people.
 Assignment A
7.) What is departmentalization? Why is it required? Discuss any one form of
departmentalization?
Answer:
Departmentalization is the process of breaking down an enterprise into various departments.
How jobs are grouped together is called departmentalization. A Department is an organization
unit that is headed by a manager who is responsible for its activities. Departmentation and
Division of labour are same things. However technically both are different. Both emphasize on
the use of the specialized knowledge, but depratmentation has higher management level strategic
considerations while the division of labour has a lower level operating considerations.
Aim: To group activities and personnel to make manageable units.

Types / Methods/Basis of Departmentalization:

There are five common forms of departmentalization
(1) Functional Departmentalization
(2) Geographical Departmentalization
(3) Product Departmentalization
(4) Process Departmentalization
(5) Customer Departmentalization

1. FUNCTIONAL DEPARTMENTALIZATION:

It groups jobs according to function. Functional departmentalization defines departments by the

functions each one performs such as accounting or purchasing. Every Organization must perform
certain jobs in order to do its work. For example, Manufacturing, Production, R & D, Purchasing
etc. Same kinds of jobs are grouped together in departments. This kind of departmentalization
includes persons with same knowledge or skills (like Accounting Department having persons of
commerce, Marketing Department having MBA persons). As in department people with same
skill and knowledge are there. Their focus becomes narrow and they cannot appreciate each
others work in the same department.

Advantages:-
Efficiencies from putting together similar specialist and people with common skills,
knowledge, and orientations.
In-depth specialization.
 Co-ordination within functional area.

Limitations:-
Poor communication across functional areas.
Limited view of organizational goals.

2. GEOGRAPHICAL DEPARTMENTALIZATION:

It groups jobs according to geographic region. Geographical departmentalization is an

arrangement of departments according to geographic area or territory. It divides works well for
international business. Geographical Departmentalization is beneficial when Organization are
spread over a wide area. Even each part or areas have different requirement or interests. For
example, marketing a product in Western Europe may have different requirements than
marketing the same product in Southeast Asia. Market area is broken up into sales territories like
Northern, Southern, West, East. The Salesman appointed for each territory report to their
regional or territorial manager. These manager again reports to the sales manager who is head of
the sales department.
Advantages: -
More effective and efficient handling of specific regional issues that arise.
Serve needs of unique geographic markets better.

Limitations:-
Duplication of functions.
Can feel isolated from other organizational areas.

3. PRODUCT DEPARTMENTALIZATION:

It groups jobs by product line. Companies may have multiple products. Like Maruti is producing
Alto, Zen, Swift. Large companies are often organized according to the product. All common
activities required to produce and market a product are grouped together. Major disadvantages
are duplication of resources. Each product requires most of the same functional areas such as
finance, marketing, production etc. For example, Samsung manufactures Phones, T.V., Tablet etc.
For each product, they have same functional department like marketing, production etc. Thus, it
is duplication of functions. Product Departmentalization has become important for large complex
organization.
Advantages:-
Allows specialization in particular products and services.
Managers can become experts in their industry.
Closer to customers.
Limitations:-
Duplication of functions.
 Limited view of organizational goals.
4. PROCESS DEPARTMENTALIZATION:

It groups Jobs On The Basis Of Product Or Customer Flow. Departmentalization is done on the
basis of processing. In manufacturing organizations, the location of manufacturing plant or
department can be at different location due to cost of raw material and even labour charges. Even
departmentalization can be done depending on the types of machines required. The similar types
of machines can be kept at one place e.g. all lathes, all drilling machines, all shapers etc.
Activities are grouped into separate sections, each kept at one place.
Advantages:-
More efficient flow of work activities.

Limitations:-
Can only be used with certain types of products

5. CUSTOMER DEPARTMENTALIZATION

It groups Jobs On the Basis of specific And Unique Customers.

Customer divisions are divisions set up to service particular types of clients or customers.Some
companies or organization divides the different units based on customers or markets. For
example, any PC manufacturing company like HP has different divisions like Consumer PC,
Commercial PC, and Workstations etc. Nokia previously had three divisions like Consumer
Phone, Business Phone & Smart Phone. Recently Nokia had changed their departmentalization
from customer to process base.
Now there are only two divisions:
Hardware and Software base departmentalization. They will also sell their software to other
mobile company. Another example is an educational institution offers regular and extension
courses to cater to the needs of different students groups.

Advantages:-
Customers needs and problems can be met by specialists
Limitations:-
Duplication of functions.
Limited view of organizational goals.
3) Discuss in detail the contribution of Taylor to the development of Management thought.

F W Taylor Scientific management concept:

Scientific management concept is one of the principles of management and is also known as
classical theory. This principle is propounded by Fredrick Winslow Taylor (F.W Taylor) the
father of management. He was born in USA in 1856. He joined Midvale steel company where he
worked as a machine shop worker for two years as gang boss for some years and as chief
engineer at the age of 28.he also joined Bethlehem steel company where he served for a long
time. Later he devoted his time to develop the concept of scientific management.
He noticed that there were much disorder and wastage of human as well as other resources at
work place. The managers and staffs had no concept about systematic and efficient performance
of task. And all were following traditional ways of doing work. So he tried to remove these
problems through the development of new concept. Thus the scientific management concept was
developed.
Principles of Scientific Management:
Replacing the rule of thumb with science:-it requires scientific study and analysis of each
element of job in order to replace the old rule of thumb approach. Only through scientific
investigation and standardization better way of work can be developed. Scientific
selection of employees requires that decisions to make on facts rather than on opinions
and beliefs.
Harmony in group activities:- in the past there was only discord. Taylor has emphasized
harmony among employee and employer to attain common goals which could help to
contribute to the maximum limit.
Cooperation:- cooperation between management and labor is the major foundation of
scientific management. It creates a sense of mutuality through which maximum
prosperity can be guaranteed.
Development of employees:- personnel management must be backed up by scientific
selection of employees along with proper training to them. Efforts should be made to
develop each employee to achieve efficiency and prosperity.
Division of responsibility:- introduction of functional foremanship made division of
responsibility. Many foremen should be appointed out of which 4 for planning and 4 for
doing. In planning they were route clerk, instruction cord clerk, time and cost clerk and
disciplinarian. And for doing they were speed boss, gang boss, repair boss and inspector.
This promoted division of work which promoted division of responsibility
Maximum output:- Taylor was more concerned with continuous increase in production
and productivity. It maximum output is derived from optimum utilization of resources
than surely it will bring higher profits and better benefits to the employer and employees.
Contributions of F.W Taylor:
While working in Midvale Company as a manager Taylor observed that employees were not
performing as per their capacity of productivity. And he considered that this condition was
occurring because of no care towards the waste. Taylor worked towards the experiments at his
work place to increase the workers efficiency so that maximum output could be achieved by
utilizing effort at maximum level.
1. Scientific task setting:-
Taylor observed that the management does not know exactly the works pieces of
work- volume of works- which are to be performed by the workers during a fixed period
of time- which is called working day. In a working day how much work is to be dome by
a worker but be fixed by a manager and the task should be set every day. The process of
task setting requires scientific technique. To make a worker do a quantity of work in a
working day is called scientific task setting
2. Differential payment system:-
Under this system, a worker received the piece rate benefit which will attract
the workers to work more for more amount of wages and more incentives would be
created to raise the standardization of output to promote the workers to produce more and
perform more task than before and utilize waste time to earn more wages.

3. Reorganization of supervision:-
Concepts of separation of planning and doing and functional foremanship were
developed. Taylor opines that the workers should only emphasize in planning or in doing.
There should be 8 foreman in which 4 are for planning and 4for doing. For planning they
were route clerk, instruction cord clerk, time and cost clerk and disciplinarian. And for
doing they were speed boss, gang boss, repair boss and inspector.

4. Scientific recruiting and training:-

Staffs and workers should be selected and employed on scientific basis. Management
should develop and train every workers by providing proper knowledge and training to
increase their skills and make them effective.

5. Economy:-
Efficient cost accounting system should be followed to control cost which can
minimize the wastages and thoroughly reduced and thus eliminated.

6. Mental revolution:-
Taylor argued that both management and workers should try to understand each
other instead of quarreling for profits and benefits which would increase production,
profit and benefits.

________________________________________________________________________
5) Participation is an excellent method for identifying differences and resolving
conflicts. Do you agree or disagree. Discuss with suitable examples.

Answer:

Participation is a method clearly favored and spoken of by businesses and governing

bodies as the optimum tactic to be used in bringing about resolution and dealing with
issues of conflict in the workplace for example. Relationships are strengthened when two
groups can discuss and work through a problem in order to come to an agreement about
an issue which is even better than a compromise.

Participation forces the two parties to work through the issues that separate their own
ideas and often results in the best of both becoming part of the finished product, if in a
business scenario. It is this very tension within a team that is essential for creative
thinking and provokes individuals to see alternative solutions.

It isn't a guaranteed solution, however

Like noted above however, participation is only the best strategy and is not always
necessarily the strategy that brings about resolve in a situation. The ideal of collaborating
to produce the best result and also improve moral within the team can sometimes take up
time and resources that are just not a luxury.

Compromise, rather than collaboration, is sometimes the only way to resolve and issue in
order to meet a deadline. In that sense the strategy of participation can be too time
consuming and even then the two parties may result in having to compromise; a strategy
always used as a backup because it still produces some kind of result.

Understanding on how to navigate a conflict is necessary

Implementing the strategy of 'Participation' does not stand alone as a skill in conflict
management however. It must come from a basis of understanding of how to handle
conflict's creative stimulation, the ability to put aside personal agendas and insecurities,
to handle others emotions, to listen and to identify when and if a resolution via this
strategy is attainable. Only then is it an excellent method in dealing with differences and
conflicts.

When a team oversteps the mark of healthy difference of opinion, resolving conflict
requires respect and patience. The human experience of conflict involves our emotions,
perceptions, and actions; we experience it on all three levels, and we need to address all
three levels to resolve it. We must replace the negative experiences with positive one.
Participation definitely allows us to see that points which we were not even thinking
about, it throws light on new angles which definitely makes us to think more then what
were doing before looking at it, with more light of knowledge defiantly heat of difference
can be curb to a large extent, there is a difference between debating and arguing the
 former brings light of knowledge the later brings heat of discontent so its better to the
put the points forward and hear from others their point of view in order to resolve it.

4) Do you think when managers make decisions they follow the decision making steps as
has been conceptualized in the rational decision making model? Which steps are likely to
be overlooked or given inadequate attention? What can be the possible consequences of
overlooking any of the steps?

Answer:
Rational decision-making model, as it is called in organizational behavior is a process for
making logically sound decisions. This multi-step model and aims to be logical and
follow the orderly path from problem identification through solution. However, there are
a lot of assumptions, requirements without which the rational decision model is a failure.
Therefore, they all have to be considered. The model assumes that we have or should or
can obtain adequate information, both in terms of quality, quantity and accuracy. This
applies to the situation as well as the alternative technical situations. It further assumes
that you have or should or can obtain substantive knowledge of the cause and effect
relationships relevant to the evaluation of the alternatives. In other words, it assumes that
you have a thorough knowledge of all the alternatives and the consequences of the
alternatives chosen. It further assumes that you can rank the alternatives and choose the
best of it.

The following are the limitations for the Rational Decision Making Model:

It requires a great deal of time.

It requires great deal of information
It assumes rational, measurable criteria are available and agreed upon.
It assumes accurate, stable and complete knowledge of all the
alternatives, preferences, goals and consequences.
It assumes a rational, reasonable, non political world.
The rational decision making model contains a number of assumptions.
Problem clarity:
The problem is clear and unambiguous. The decision maker is assumed to have
complete information regarding situation.

Known options:
 It is assumed the decision maker can identify all the relevant criteria and can
list all the viable alternatives. Furthermore, the decision maker is aware of all possible
consequences of each alternative.
Clear preferences:
Rationality assumes that the criteria and alternatives can be ranked and weighted to reflect
their importance.
Constant preferences:
It's assumed that the specific decision criteria are constant and that the weights assigned to them
are stable over time.
No time or cost constraints:
The rational decision maker can obtain full information about criteria and alternatives because
it's assumed that there are no time or cost constraints.
Maximum payoff:
The rational decision maker will choose the alternative that yields the highest perceived value.