Subject Code: IMT-01

Subject Name : MANAGEMENT PROCESS AND ORGANIZATION

Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.
b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IV (Case Study) must be sent
together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Only hand written assignments shall be accepted.
A. First Set of Assignments: 5 Questions, each question carries 1 marks.
B. Second Set of Assignments: 5 Questions, each question carries 1 marks.
C. Third Set of Assignments: 5 Questions, each question carries 1 marks. Confine your answers to 150
to 200 Words.
D. Forth Set of Assignments: Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

Objective:
The objective of the course is to make students aware of environmental changes and to show them how
effective managers are adapting. The emphasis will be on the conceptual developments in the area of planning,
organizing, leading and controlling managerial functions. The course also elaborates on conceptual framework
of leadership and the role of managers as leaders and change agents.

Contents:
NATURE OF MANAGEMENT
Management Defined, Nature of Management, Scope of Management, Need for Management, Management
and Administration, Management-A Science or an Art, Management Levels, Top-level managers, Middle
level managers, First level supervisory managers, General versus Functional managers
MANAGERIAL ROLES, FUNCTIONS AND SKILLS
Management Functions, Planning, Organising, Staffing, Directing, Controlling, Managerial Roles,
Interpersonal Roles, Informational Roles, Decisional Roles, Managerial Skills, Technical Skills, Human
Skills, Conceptual skills, Diagnostic Skills, , Communicational Skills, Political Skills
EVOLUTION OF MANAGEMENT THOUGHT
Classical Approach, Bureaucracy, The Scientific Management Stage, Contribution by F.W. Taylor - Scientific
Management, Contribution by Henry Fayol - Principles of Management, Contribution by Peter F. Drucker –
MBO
COORDINATION
Meaning and Definition of Coordination, Characteristics of coordination, Need for coordination, Types of
coordination, Principles of coordination, Independence and coordination, Approaches for achieving effective
coordination, Techniques of coordination
PLANNING AND FORECASTING
Planning: An Overview, Importance of Planning, Advantages and potential , disadvantages of planning,
Principles of Effective Planning, Plan types , Levels of Planning , Contingency planning, Forecasting,
Techniques of Forecasting, , Forecasting Demand and Supply
MBO AND SYSTEMS APPROACH
Characteristics of Objectives, Organisational Objectives, Characteristics of sound objectives, Hierarchy of
objectives, Management by Objectives (MBO), Objectives of MBO, The MBO Process, Advantages of MBO,
Disadvantages of MBO, Suggestions for improving the effectiveness of MBO, The Systems Approach to
Management

Management Process and Organization ................... Page 1 of 4 ............................................................................... IMT-01

DECISION MAKING AND CREATIVITY
Managerial Decision Making, Defining a Problem, Structure of problems, The problem pointers, Factors
Affecting Decision Making, Steps in Decision Making, Rational Decision Making, Creativity
FUNDAMENTALS OF ORGANISING
What is an Organisation, Importance of Organising, Guidelines for effective organization, , The Organisation
Process, Formal and Informal organization
STRUCTURAL DESIGN AND DEPARTMENTATION
Organisational Structure: Design, Steps in the Organisational Structuring, Benefits of a Good Organisational;
Structure, Mechanistic Versus Organic Structures, Determinants of Organisational Structure, Types of
Organisational Structures, The Line Structure, Line and Staff Structure, Departmentation, The Functional
Structure, Divisional Structure, Organisational Chart
SPAN OF MANAGEMENT
What is Span of Management, Span of Control and Levels of Organisation, Narrow span structure, Wide span
structure, Graicunas Theory, Factors Affecting Span of Management , Limitations of Span of Management
DELEGATION OF AUTHORITY
Concept of Authority, Characteristics of Authority, Sources of Authority, Scope of Authority, Delegation of
Authority, Principles for Delegation, Process of Delegation, Advantages of Delegation, Problems with
Delegation, Personal Factors as Barriers to Delegation, Reluctance of Executives, Reluctance of
Subordinates, Overcoming Obstacles
CENTRALISATION AND DECENTRALISATION
Centralisation versus Decentralisation, Factors Determining the Need for Centralisation and Decentralisation,
Advantages of centralization, Advantages of decentralization
LINE AND STAFF RELATIONSHIP
Line and Staff Structure, Line and Staff Conflicts, Achieving Cooperation Between Line and Staff, Line
Authority Relationship, Staff Authority Relationship
NATURE, PROCESS AND TECHNIQUES OF CONTROLLING
The Controlling Process, Establishing standards, Measuring performance, Measuring devices, Comparing
measured performance with performance standards, , Taking Corrective Action, Essentials of Effective Control
System, Techniques of Managerial Control, Traditional control technique, Modern control techniques, Feed-
forward controls, Feedback Control, Behavioural Implications of Control, Behavioural Guidelines for Effective
Control
CORPORATE ETHICS AND SOCIAL RESPONSIBILITY
Meaning of Ethics, Ethical Concepts, Business Values, The Concept of Social Responsibility, Causes of
growing awareness for Social Responsibility, Arguments in favour of Social Responsibility, Arguments against
Social Responsibility, Comparative Study: Japanese Management and Z Culture of American Companies

ASSIGNMENTS
PART– A

1. Briefly explain the various management functions. Why is planning its most crucial function?
2. What are Henry Fayol's principles of management?
3. What are the various kinds of communication in an organization?
4. What are the various theories of motivation? Explain each of them in brief.
5. What are the different leadership styles? What are their advantages and disadvantages?

PART– B

1. What are the various steps involved in the decision-making process? What factors affect individual
decision-making?
2. Discuss the various group decision-making techniques. Compare individual and group decision-making
in terms of their advantages and disadvantages.

Management Process and Organization ................... Page 2 of 4 ............................................................................... IMT-01

 3. Give an overview of the principles of organizing.
4. What are the determinants and types of organization structures? Explain them briefly.
5. What is management by objectives? What are its advantages and disadvantages?

PART – C

1. What are the factors and consequences of group cohesiveness?

2. What are the advantages and disadvantages of committees?
3. How would you resolve various kinds of conflicts?
4. What is performance evaluation? What are its various types?
5. 'Management can be thought of as a process, a discipline, a human activity and a career.' Do you
agree? Discuss.

CASE STUDY- I

In USA, one of the major remedies for headache is a product known as Tylenol. It is produced by Johnson and
Johnson and sells by the millions. Trust in the quantity of the product and the integrity of the company behind it
are the salient selling points. The company has 79,000 global employees and every pharmacy and chemist
shop in USA is an outlet for sale of the product. The company spends a considerable amount of money in
promoting its products and on public relations.
In 1982, Johnson and Johnson had an unfortunate setback. Extra-strength Tylenol was linked to seven deaths
in the Chicago area. The analysis report indicated that someone had placed highly toxic cyanide in some of the
capsules and put these capsules back in the bottles and put the bottles back on the pharmacy shelves where
customers could buy them. The tragedy came into public view when four members of a family died of the same
cause in a short period of time. At the same time, three other people died under similar circumstances in various
parts of the city and medical specialists confirmed that all these deaths were linked to cyanide poisoning in the
Tylenol capsules. At first, there was speculation that the capsules were tampered with at the manufacturing
plant. However, this possibility was eliminated due to the fact that there were different lot numbers on the
bottles, clearly suggesting that Tylenol had been packaged in different parts of the country.
With more than 31 million bottles of Extra-strength Tylenol capsules on the market shelves on any given day, it
would have been impossible for Johnson and Johnson to have a contingency disaster plan to deal with an
incident of such catastrophic nature. However, by contracting through various communication techniques, their
distributors, medical professionals and the public, the company had all the bottles removed from the shelves as
a preventive measure to ensure that no more deaths would occur. Additionally, it sent half a million telegrams to
doctors and hospitals advising them to stop recommending Extra-strength Tylenol to their patients. These
actions communicated to everyone that the company was concerned with the welfare of the people and not just
with profits, confirming that the company was acting responsibly and in a trustworthy manner.
To reach the general public, the company established a special public relations team that held daily press
conferences to apprise the public of any new developments in the case and to answer any questions. To deal
with the concerns and morale of employees, the company contracted all 79,000 employees worldwide, as well
as those who had already retired, and explained to them this tragic event. With clear and honest communication
in a variety of ways to reach all the segments of the society, Johnson and Johnson kept the public trust in its
integrity strong, so that within six weeks after the crisis, it was able to reintroduce the product in the market in a
tamper proof bottle. The company also developed an impressive advertising campaign to accompany the
reintroduction of the product. Within six weeks of reintroduction, a sales force of 2,250 people had made over
one million presentations to doctors and other medical professionals. The cost of this extensive communication
network was over $100 million to the company. But this communication was effective in maintaining the

Management Process and Organization ................... Page 3 of 4 ............................................................................... IMT-01

company image to such a degree that it was able to recapture over 95 per cent of the previous market for its
product. It also managed to keep consumer, doctor and retailer confidence in its products and in its integrity
Questions:

1. Explain in detail the various types of communications that Johnson and Johnson pursued
immediately after the Tylenol poisoning was reported.
2. Describe the communication network established by the company to handle the crisis in a positive
manner.
3. Usually, such a tragedy brings about many unfounded rumors. "What steps did the company take
to minimize the extent of such rumors?

CASE STUDY- II

Radius: A Restaurant Built on Teamwork

When visiting a good restaurant, one notices the special ambience, superb cuisine, and the superior service.
Radius in Boston has these three ingredients. However, it also has another crucial factor that is less obvious to
customers: a commitment to teamwork.
The teamwork starts in the kitchen. The Radius kitchen is made up of four stations: meat, fish,
garde and pastry. Two people work at each station, and they have full responsibility for their part of the meal.
The pastry team plans, cooks and prepares the pastries. The career ladder inside the kitchen is different from
that in most restaurants. In most places, cooks start out as garde managers and work their way up to preparing
fish and meat. At Radius, cooks work at each station for six weeks and then rotate to another. Job rotation is
used for everyone on the kitchen team. Weekly meetings are held to discuss business, customer complaints
and special compliments received. The chefs meet with the back waiters and the waiters' support staff to go
over issues, dishes and procedures. Because servers at Radius announce each course, they need to know
what is on each plate, how to present it to a guest, and how to pronounce it. A daily meeting focusses on the
behind-the-scene operations. About thirty staffers meet with the chef and co-owner Michael Sedlow, to discuss
the evening plans. Every detail about the specials, the fine wines, and the sauces is reviewed and discussed.
Then there is the daily service meeting. All the wait staff, floor managers, hosts and hostesses go over the floor
plan, assignments, the night's reservations, who the customers are, how to pronounce customers' names, and
similar details. The special dishes are explored. For example, a server is asked to describe the dish. Radius
believes that with this team approach, it can soon rank among the top 25 restaurants in the US.
Questions:

1. How can meetings to go over details encourage and generate team cohesiveness?
2. What are the benefits of establishing a station-based kitchen?
3. Do you believe the Radius approach to teamwork can totally eliminate any type of conflict? Why?

Management Process and Organization ................... Page 4 of 4 ............................................................................... IMT-01