Question1: Describe the concept of vision and mission in an organization.

Answer: An organization is a structure that uses the resources from the environment like
manpower, raw materials, capital etc., and returns the outputs like products and services to the
environment. It constitutes the rules, policies, responsibilities and procedures that are adopted
by the organization. Various concepts used in a management organization are basically
functional sub systems of the management. The functional subsystems are categorized into
operations sub system, transaction subsystem and control subsystem. Each one has a
particular set of data files which are used only by that subsystem.
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.
Vision: outlines what the organization wants to be, or how it wants the world in which it
operates to be. 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".
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. The mission is therefore the means of
successfully achieving the vision.
For an organization'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.

Question2: (a) Define planning.

(b) Explain the importance of planning.
Answer: a) Planning

Planning is the process of thinking about and organizing the activities required to achieve a
desired goal. Planning involves the creation and maintenance of a plan. As such, planning is a
fundamental property of intelligent behavior. This thought process is essential to the creation and
refinement of a plan, or integration of it with other plans; that is, it combines forecasting of
developments with the preparation of scenarios of how to react to them.

Planning in order to be useful must be linked to the strategic intent of an organization.

Therefore, planning is often referred to as strategic in nature and also termed as strategic
planning.
(b) Planning is important for the following reasons:

Planning increases the efficiency of an organization.

It reduces the risks involved in modern business activities.
It facilitates proper coordination within an organization.
It aids in organizing all available resources.
It gives right direction to the organization.
It is important to maintain a good control.
It helps to achieve objectives of the organization.
It motivates the personnel of an organization.
It encourages managers' creativity and innovation.
It also helps in decision making.

The planning helps to achieve these goals or target by using the available time and resources.
The concept of planning is to identify what the organization wants to do by using the four
questions which are "where are we today in terms of our business or strategy planning? Where
are we going? Where do we want to go? How are we going to get there?
Question3: (a) Why leading is important?
Answer: Leading or leadership function is said to be the heart of management process.
Therefore, it is the central point around which accomplishment of goals take place. A few
philosophers call leading as Life spark of an enterprise. It is also called as an actuating
function of management because it is through direction that the operation of an enterprise
actually starts. Being the central character of an enterprise, it provides many benefits to a
concern which are as follows:
1. Initiates action- Leader is a person who starts the work by communicating the policies and

plans to the subordinates from where the work actually starts.

2. Sustains action Direction, much like leading initiates action but these directions have to
be repeated if the actions have to go on. Leading on the other hand ensures that the actions go
on and course corrections are done automatically by the followers because of their innate belief
in the goal being something desirable to follow. When they face obstacles, they would either fall
back on the leader if the obstacles are too huge to overcome. This is done when the leading
process would ensure that additional resources including pooled wisdom are pumped in to
resolve it.
3. Motivation- A leader proves to be playing an incentive role in the concerns working. He

motivates the employees with economic and non-economic rewards and thereby gets the work
from the subordinates.
4. Provides stability Stability and balance in a concern becomes very important for a longterm survival in the market. This can be brought upon by the managers with the help of four
tools or elements of leading function - judicious blend of persuasive leadership, effective
communication, clear performance goals, and efficient motivation. Stability is very important
since that is an index of growth of an enterprise. Therefore, a manager can use of all the four
traits in him/her so that the performance standards can be maintained.

5. Creating confidence- Confidence is an important factor which can be achieved through

expressing the work efforts to the subordinates, explaining them clearly their role and giving
those guidelines to achieve the goals effectively. It is also important to hear the employees with
regards to their complaints and problems.
6. Builds work environment- Management is getting things done from people. An efficient
work environment helps in sound and stable growth. Therefore, human relations should be kept
into mind by a leader. He should have personal contacts with employees and should listen to
their problems and solve them. He should treat employees on humanitarian terms.
7. Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and effective coordination which should be primary motive of a leader.
(b) What are the characteristics of leading?
Answer: Characteristics of Leading
Flexible/Adaptable
How do you handle yourself in unexpected or uncomfortable situations? An effective leader will
adapt to new surroundings and situations, doing his/her best to adjust.
A Good Communicator
As a leader, one must listen...a lot! You must be willing to work to understand the needs and
desires of others. A good leader asks many questions, considers all options, and leads in the right
direction.
Respectful
Treating others with respect will ultimately earn respect.
Quiet Confidence
Be sure of yourself with humble intentions.
Enthusiastic
Excitement is contagious. When a leader is motivated and excited about the cause people will be
more inclined to follow.
Open-Minded
Work to consider all options when making decisions. A strong leader will evaluate the input
from all interested parties and work for the betterment of the whole.
Resourceful
Utilize the resources available to you. If you don't know the answer to something find out by
asking questions. A leader must create access to information.
Rewarding
An exceptional leader will recognize the efforts of others and reinforce those actions. We all
enjoy being recognized for our actions!
Well Educated
Work to be well educated on community policies, procedures, organizational norms, etc. Further,
your knowledge of issues and information will only increase your success in leading others.
Open to Change
A leader will take into account all points of view and will be willing to change a policy, program,
cultural tradition that is outdated, or no longer beneficial to the group as a whole.
Evaluative
Evaluation of events and programs is essential for an organization/group to improve and
progress. An exceptional leader will constantly evaluate and change programs and policies that
are not working.

Organized
Are you prepared for meetings, presentations, events and confident that people around you are
prepared and organized as well?
Consistent
Confidence and respect cannot be attained without your leadership being consistent. People must
have confidence that their opinions and thoughts will be heard and taken into consideration.
Initiative
A leader should work to be the motivator, an initiator. He/she must be a key element in the
planning and implementing of new ideas, programs, policies, events, etc.
Question4: (a) Define organization behavior (OB).
Answer: The study of the way people interact within groups. Normally this study is applied in
an attempt to create more efficient business organizations. The central idea of the study of
organizational behavior is that a scientific approach can be applied to the management of
workers. Organizational behavior theories are used for human resource purposes to maximize the
output from individual group members.
. By systematic study we mean looking at relationships and attempting to attribute causes
and effects, and drawing conclusions based on scientific evidence.

By productivity we mean a performance measure that includes both effectiveness and

efficiency.

By absenteeism we mean failure to report to work especially without informing.

By turnover we mean voluntary and involuntary permanent withdrawal from an

organization.

By organizational citizenship we mean discretionary behavior that is not part of an

employees formal job requirements, but that nevertheless promotes the effective
functioning of the organization.

By job satisfaction we mean a general attitude towards ones job; the difference
between the amount of reward the workers receive and the amount they believe they
should receive.

(b) What are the limitations of OB?

Answer: Limitations of OB
OB has some important limitations. These are:
OB is not a remedy for the removal of conflict and frustration but can only reduce them.
It is only one of the many systems operating within a large social system.
There is a great danger of OB when in the hands of people who lack system
understanding. They tend to look only at the 'behavioral basis', which gives them a
narrow view point. This tunnel vision often leads to satisfying employee experiences
while overlooking the broader system of an organization in relation to all its public.
The law of diminishing returns also operates in the case of organizational behavior (the
law states that at some point increase of a desirable practice produces declining returns
and sometimes negative returns when that point is exceeded). For example, too much of
freedom and security could lead to less employee initiative and growth after reaching a
level and to complacency after that. This relationship shows that organizational
effectiveness is achieved not by having more and more of a particular factor but
appropriate level of it.

The ethical standards of those in charge and those who use OB techniques are a great
concern. Its knowledge and techniques could be used to manipulate people without
regard for human welfare. People who lack ethical values could use people in unethical
ways.

Question 5: (a) What is meant by emotional intelligence?

Answer: Emotional intelligence is the capacity for recognizing our own feelings and those of others, for
motivating ourselves, for managing emotions well in ourselves and in our relationships.
Golemans model of Emotional Intelligence (EI)
Daniel Goleman and the Hay Group have identified a set of competencies that differentiate
individuals with EI. The competencies fall into four clusters:
Self-awareness: Capacity for understanding one's emotions, one's strengths and one's
weaknesses.
Self-management: Capacity for effectively managing one's motives and regulating one's
behavior.
Social awareness: Capacity for understanding what others are saying and feeling and why
they feel and act as they do.
Relationship management: Capacity for acting in such a way that one is able to get desired
results from others and reach personal goals.
The most popular and accepted mixed model of EI is the one proposed by Goleman (1995). He
viewed EI as a sum of personal and social competences. Personal competence determines how
we manage ourselves, whereas social competence determines how we handle our
interpersonal relationships.
(b) What is the impact of emotional intelligence on managers?
Answer: EI and the organization
EI for employees
In order to increase the level of employees performance, morale and enthusiasm, many
organizations today want to promote an emotionally intelligent culture. To succeed in that,
organizations must foster the following attributes:
The organization promotes a culture in which openness and transparency are the norm.
Respectful assertiveness must exist in the organization.
The organization encourages diversity.
The organization tolerates constructive disagreement.

The organization values flexibility and communication among its various departments.
By having these attributes, an emotionally intelligent organization can plan several years in
advance and its employees can work with each other more effectively.
EI for Leaders
The characteristics of leaders possessing a high level of EI are as follows (Saavedra, 2000):
They set goals that are clear and mutually agreed upon.
They prefer praise as a tool for training and inspiring employees.
They rely on decentralization for achieving their goals.
They focus on employees and their feelings.

They are role models.

These leaders exhibit a high degree of self-actualization, self-regard and a strong sense of selfawareness. They admit their mistakes and seek to learn from them.
CEO succession and EI
There are intense emotions during the period of succession:
The Board of the company is often caught in the middle of a power struggle (Stock, 2001)
between the successor CEO and the outgoing CEO. They may feel loyal to the outgoing CEO
and may feel unsure about the new CEO. High self-awareness and empathy are required to
handle this.
The outgoing CEO may feel resentful of the changes the successor is making or defensive
about what he or she put in place. In addition, he or she may feel uneasy about the future and
possibly experience a feeling of guilt (Stock, 2001). This demands high social skills, and selfregulation.
The successor may feel frustrated, angry and unable to move forward because of the loyalty
employees have to the predecessor. He or she may be unwilling to make drastic changes
because of fear of resentment and criticism (Stock, 2001). This requires high self-awareness,
self-regulation, motivation and empathy.
Question 6: Suppose you are the Team Manager in a multinational company with team
strength of 10 members. You are given the responsibility of ensuring that the team gives
excellent performance or results. What are the key issues you have to handle in team building?
Answer: The key issues that I will have to handle in team building for excellent performance
and results are as follows:

Have clear expectations and context: Have clear performance targets and
expectations from the team. The team should get sufficient resources-people, time and
money. Their work should receive sufficient emphasis as a priority in discussions. This
makes the team feel that they matter and then they perform. The team members should
be able to define their importance if a team has to yield results.

Commitment: All team members may not be equally committed. First, ensure that all
the members believe in the mission and anticipate recognition for their contribution. They
expect their skills to grow and develop and they should feel excited and challenged by
the opportunity .Only then does a team work well. Those without commitment are better
out of the team.
Team design and competence: The next important aspect is having adequate
competences. If the team is to improve a process, it should have people with expertise in
each step of the process. Therefore, it is not sufficient to get some people together, but it
is necessary to get people with the requisite competencies. If one fails in this, the teams
may not perform or under perform. The team design should be such that the
competencies required to accomplish the task are included. In addition to the technical
competencies which vary from task to task, teams succeed if they have the right
managerial or leadership competencies. The team wheel is one structure that we can
look at to ensure that the competencies mentioned therein are included. Researchers
have experimented with the team wheel and trained people in the deficient areas to
ensure better team success.
Charter of performance: The team should take the assigned responsibility as its
mission. This is the crux of a successful team. It must define its goals, the outcomes, the

timelines, measuring success, and the process to accomplish tasks. Equally, the support
of top leadership for the work of the team is a precondition. The task of the team should
be a task derived from the top management if it has to succeed.
Control and coordination: Any management function works through controls and
coordination and teams are no exception. Some of the issues to be considered are what
are the controls the team members accept and impose on themselves, what are the
limitations in terms of money, time, how far the members should go in pursuit of the
solutions, what is the degree of freedom and the chain of reporting. To succeed, the
teams should have sufficient freedom and a mechanism for self-regulation and
coordination. One of the challenges in doing it is the interdepartmental nature of the
team and the interdepartmental conflicts which are often taken to the team usually by
denying a resource or an appropriate skill. The top management can address this
challenge through incentives and motivation.

Collaboration: The team goals should be a collaborative one and not a competitive one.
This would lead to their understanding and interpreting the goals correctly. The teams
should also establish norms so that collaboration becomes easy. If the output is defined
correctly and the reward for accomplishment fair and equitable, then teams tend to
collaborate more effectively.

Communication: This is a common problem in team building. The barriers to

communication should be broken down and free flowing communication should be
established. Despite all these, conflict does exist due to several barriers. The ability to
detect conflict and resolve it in time is another key to success.

Consequences: Team members should feel responsible and accountable for the
achievement and they should inherently get the idea of consequences of not achieving
it. Reward is one of the important factors to be considered to achieve this. Else, there
will be finger pointing and related issues that make the teams non-functional. Look at a
successful soccer or cricket team and you get the idea intuitively.

Creative innovation: Depending on the problem, the teams should be able to innovate
and they should have the freedom to do so. Even if the composition of the team is ideal,
one cannot get results if they do not have the freedom for creativity.

Cultural change: Teams can function only if the organization has such a culture. Teams
need flat organizational structure, rewards and recognitions, and training and
development of a high order. Traditional companies are not designed for effective team
operation.