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STUDY NOTES

Management Process &

Organizational Behaviour
MBA/101

Department of Management
SHRI RAM COLLEGE OF ENGINEERING AND MANAGEMENT
SRCEM, Palwal

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UNIT – I

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MIS - management information system

MIS is short for management information system or management information services.
Management information system, or MIS, broadly refers to a computer-based system that provides
managers with the tools to organize, evaluate and efficiently manage departments within an
organization. In order to provide past, present and prediction information, a management information
system can include software that helps in decision making, data resources such as data bases,
the hardware resources of a system, decision support systems, people management and project
management applications, and any computerized processes that enable the department to run
efficiently.

Management Information System Managers

The role of the management information system (MIS) manager is to focus on the organization's
information and technology systems. The MIS manager typically analyzes business problems and then
designs and maintains computer applications to solve the organization's problems.
There are different areas of concentration with different duties and responsibilities in information
system managers starting from the Chief information officer (CIOs),Chief technology officer (CTOs), IT
directors and IT security managers. Chief information officers (CIOs) are responsible for the overall
technology strategy of their organizations. Basically, they are more of the decision makers and action
takers when it comes down to determining the technology or information goals of an organization and
making sure the necessary planning to implement those goals is being met.
Chief technology officers (CTOs) are responsible for evaluating how new technology can help their
organization. They usually recommend technological solutions to support the policies issued by the
CIO.[2]
IT directors including MIS directors are in charge of both their organization's Information technology
departments and the supervision of thereof. They are also in charge of implementing the policies chosen
by the other top branches (CIOs, CTOs). It is their role to ensure the availability of data and network
services by coordinating IT activities.
IT Security Managers oversee the network and security data as the title implies. They develop programs
to offer information and awareness to their employees about security threats. This team is very
important because they must keep up-to-date on IT security measures in order to be successful within
their organization. Any security violations need to be investigated and supervised by this specific team.
Advantages

The following are some of the benefits that can be attained using: [6]
• Companies are able to identify their strengths and weaknesses due to the presence of revenue
reports, employees' performance record etc. Identifying these aspects can help a company improve
its business processes and operations.
• Giving an overall picture of the company.
• Acting as a communication and planning tool.
• The availability of customer data and feedback can help the company to align its business
processes according to the needs of its customers. The effective management of customer data can
help the company to perform direct marketing and promotion activities.

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• MIS can help a company gain a competitive advantage. Competitive advantage is a firm's ability
to do something better, faster, cheaper, or uniquely, when compared with rival firms in the market.
• MIS report help to take decision and action on certain object with quick time.

Who Uses MIS?

MIS systems automatically collect data from various areas within a business. These systems are capable
of producing daily reports that can be sent to key members throughout the organization. Most MIS
systems can also generate on-demand reports. On-demand MIS reports allow managers and other users
of the system to generate an MIS report whenever they need it.
Many large businesses have specialized MIS departments, whose only job is to gather business
information and create MIS reports. Some of these businesses use sophisticated computing technology
and software to gather information. However, the method of collecting information does not have to be
that complex. Smaller businesses often use simple software programs and spreadsheets for their MIS
reporting needs.
There can be as many types of MIS reports as there are divisions within a business. For example,
information about sales revenue and business expenses would be useful in MIS reports for finance and
accounting managers. Warehouse managers would benefit from MIS reports about product inventory
and shipping information. Total sales from the past year could go into an MIS report for marketing and
sales managers.
Type of Information in an MIS

In our pretend manager example, you've been asked to present information about your department's customer
service calls. An MIS report for this would likely contain data such as:
• The number of calls your staff takes
• The number of emails that come in each day
• The average amount of time it takes to answer a phone call or email
• The number of questions that your staff answers correctly vs. the number that are incorrect

To make this information most useful, you also need to ensure that it meets the following criteria:
• Relevant - MIS reports need to be specific to the business area they address. This is important because a
report that includes unnecessary information might be ignored.
• Timely - Managers need to know what's happening now or in the recent past in order to make decisions
about the future. Be careful not to include information that is old. An example of timely information for
your report might be customer phone calls and emails going back 12 months from the current date.
• Accurate - It's critical that numbers add up and that dates and times are correct. Managers and others
who rely on MIS reports can't make sound decisions with information that is wrong. Financial information
is often required to be accurate to the dollar. In other cases, it may be OK to round off numbers.

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UNIT - II

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Motivation: Meaning and Importance of Motivation

The te oti atio has ee de i ed f o the o d oti e . Moti e a e defi ed as a i e state
of our mind that activates and directs our behaviour. It makes us move to act. It is always internal to us
and is externalized via ou eha iou . Moti atio is o e s illi g ess to e e t effo ts to a ds the
accomplishment of his/her goal. Let us consider a few important definitions on motivation that will help
us understand the meaning of motivation more clearly.
Fred Luthans defined oti atio as a p o ess that sta ts ith a ph siologi al o ps hologi al defi ie
o eed that a ti ates eha iou o a d i e that is ai ed at a goal o i e ti e .
A o di g to “tephe P. ‘o i s oti atio is the illi g ess to e e t high le els of efforts toward
o ga isatio al goals, o ditio ed the effo t a ilit to satisf so e i di idual eed .
ADVERTISEMENTS:
I the opi io of G a a d “ta ke oti atio is the esult of p o esses, i te al o e te al to the
individual, that arouse enthusias a d pe siste e to pu sue a e tai ou se of a tio .
After going through the above definitions, motivation can be defined very simply as the willingness to
exert towards the accomplishment of goal or need.
Motivation Cycle or Process:
As stated earlier, motivation is a process or cycle aimed at accomplishing some goals. The basic elements
included in the process are motives, goals and behaviour . A brief mention of these follows:
Motives:
ADVERTISEMENTS:
Almost all human behaviour is motivated. It requires no motivation to grow hair, but getting a hair cut
does. Motives prompt people to action. Hence, these are at the very heart of motivational process.
Motives provide an activating thrust towards reaching a goal. The examples of the needs for food and
water are translated into the hunger and thrust drives or motives. Similarly, the need for friends
becomes a motive for affiliation.
Goals:
Motives are generally directed towards goals. Motives generally create a state of physiological or
psychological imbalance. Attaining goals restores balance. For example, a goal exists when the body of
the a is dep i ed of food o ate o o e s pe so alit is dep i ed of f ie ds o o pa io s.
Behaviour:
Behaviour is a series of activities to be undertaken. Behaviour is directed to achieve a goal. For example,
the man goes to saloon to cut his hair. Diagrammed simply, the cycle or process of motivation is
presented in Figure 17.1 as follows:

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Importance of motivation:
The need for and importance of motivation can be imbued with multiplicity of justifications as follows:
1. Organisations are run by people. Hence, mangers cannot afford to avoid a concern with human
behaviour at work. This is because the motivated employees are more productive and quality- conscious
than apathetic ones.
2. Motivation as a pervasive concept affects and is also affected by a host of factors in the organisational
milieu. It enables managers to understand why people behave as they behave.
ADVERTISEMENTS:
3. Organisational effectiveness becomes, to some extent, the questio of a age e t s a ilit to
motivate its employees. Hence, an appreciation of motivation helps the managers how to motivate their
employees.
4. Machines become necessary in case of complex technology. However, these remain inefficient
vehicles of effective and efficient operations without man to operate them. Therefore, organisations
need to have employees with required capability and willingness to use the advanced complex
technology to achieve the organisational goal.
5. With the realisation that organisations will run in more complex milieu in future, an increasing
atte tio has ee gi e to de elop e plo ees as futu e esou es a tale t a k . This fa ilitates the
managers to draw upon them as and when organisations grow and develop.
In sum and substance, the need for and significance of motivation for an organisation can be put as
follows:
If e o pa e a age e t ith d i i g, hile the o ga isatio is the ehi le, the oti atio is the
po e o fuel that akes the ehi le o i g .

Theories of Motivation

Definition: There are several Theories of Motivation that are developed to explain the concept of
Moti atio . The oti atio is a d i e that fo es a i di idual to o k i a e tai a . It is the e e g
that pushes us to work hard to accomplish the goals, even if the conditions are not going our way.

With the establishment of human organizations, people tried to find out the answer to, what motivates
an employee in the organization the most. This gave birth to several content theories and process
theories of motivation.
The content theories deal with hat oti ates people, whereas the process theories deal
with, Ho oti atio o urs. Thus, theories of motivation can be broadly classified as:

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Content Theories: The content theories find the answer to what motivates an individual and is
concerned with individual needs and wants. Following theorists have given their theories of motivation
in content perspective:
1. Maslo s eed Hie a h
2. He z e g s Moti atio -Hygiene Theory
3. M Clella d s Needs Theo
4. Alde fe s E‘G Theo
5.
Process Theories: The p o ess theo ies deal ith Ho the oti atio o u s, i.e. the p o ess of
motivation and following theories were given in this context:
1. V oo s E pe ta Theo
2. Ada s E uit Theo
3. Reinforcement Theory
4. Carrot and Stick Approach to Motivation
5.
Thus, these theories posit that how an individual gets motivated to perform the task and what are the
factors that contribute towards the motivation.

)Maslo ’s Need Hierar hy

Definition: The Maslo ’s Need Hierar hy is given by Abraham Maslow, who has explained the strength
of certain needs at the different point of time.
Maslow has given a framework that helps to understand the strength of needs and how a person moves
from one need to the other when the basic needs are fulfilled. These needs are arranged in the
hierarchical form as shown below:

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1. Physiological Needs: These needs are the basic needs, a prerequisite for the survival of the
human being. Air, water, food, sleep are the physiological needs which must be met, in order to go
further in the hierarchy. If these needs are not met, then an individual will be highly motivated to satisfy
these first, while the other levels of needs would provide him with a little motivation.
2. Safety Needs: Once the physiological or basic needs are fulfilled, the other needs become
important. The next comes the safety or security needs. People begin to feel the need for a safer place to
live in, i.e. shelter, safe neighborhood, steady employment, etc. Thus, at this stage, the need for self-
preservation i.e. a need for being free of physical danger, emerges.
3. Social Needs: After the first two needs of the hierarchy are met, people tend to move further and
seeks to satisfy their social needs. Since a human being is a social animal who lives in the society, has an
urge to belong to and be accepted by all. The need for love, affection, belonging emerges at this stage.
Thus, the relationships are formed at this level.
4. Esteem Needs: Once the above needs are fulfilled, an individual strives to achieve the esteem
needs, concerned with self-respect, self-confidence, a feeling of being unique, social recognition,
personal worth, etc. On the satisfaction of these needs, an individual feels the sense of power and
control and becomes more confident.
5. Self-Actualization Needs: The e t a d the fi al eed o the Maslo s Need Hie a h is the “elf
A tualizatio Need. It efe s to the eed to a i ize o e s pote tial. These eeds a e elated to the
de elop e t of o e s intrinsic capabilities that can be utilized in different real life situations. It can be
rephrased as, a desire of becoming, what one is capable of becoming.
Thus, according to this theory, the behavior of an individual is determined by his strongest needs, i.e. a
person is motivated to fulfil the unsatisfied need

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)Herz erg’s Moti ation-Hygiene Theory

Definition: The Herz erg’s Moti atio -Hygiene Theory is given by Fredrick Herzberg and his associates,
who studied the variables that are perceived to be desirable to achieve goals and the undesirable
conditions to avoid.
In this context, the study was conducted wherein the experiences and feelings of 200 engineers and
accountants were analyzed. They were asked to share their previous job experiences in which they felt
e eptio all good o e eptio all ad. Th ough this stud , He z e g o luded that the e a e t o
job conditions independent of each other that affect the behavior differently.
The first set of job conditions has been referred to as maintenance or hygiene factor, wherein the same
job conditions provide the same level of dissatisfaction, in case the conditions are absent, however, their
presence does not motivate in a strong way.
The second set of job conditions is referred to as motivational factors, which primarily operate to build
strong motivation and high job satisfaction, but their absence does not result in strong dissatisfaction.

Hygiene Factors: Herzberg identified ten maintenance or hygiene factors, that are not intrinsic parts of a
job, but are related to the conditions in which the job has to be performed. These are company policy
and administration, technical supervision, job security, working conditions, interpersonal relationship
with peers, subordinates and supervisors, salary, job security, personal life, etc.
Motivational factors: These factors have a positive effect on the functioning of the employees in the
organization. There are six factors that motivate employees: Achievement, Recognition, Advancement,
Work-itself, Possibility of growth and Responsibility. An increase in these factors satisfies the employees
and the decrease in these will not affect the level of satisfaction.
Thus, He z e g s Moti atio -Hygiene Theory studied the variables which were responsible for the level
of satisfaction and had been applied in the industry that has given several new insights

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3) M Clelland’s Needs Theory

Definition: M Clella d’s Needs Theory was proposed by a psychologist David McClelland, who believed
that the specific needs of the individual are acquired over a period of time a d gets olded ith o e s
e pe ie e of the life. M Clella d s Needs Theo is so eti es efe ed to as Three Need
theory or Learned Needs Theory.
McClelland has identified three basic motivating needs, Viz. Need for Power, Need for Affiliation and
Need for Achievement and, along with his associates performed a considerable research work on these
basic needs.

Need for Power (n-pow): What is Power? Power is the ability to induce or influence the behavior of
others. The people with high power needs seek high-level positions in the organization, so as to exercise
influence and control over others. Generally, they are outspoken, forceful, demanding,
practical/realistic-not sentimental, and like to get involved in the conversations.
Need for Affiliation (n-affil): People with high need for affiliation derives pleasure from being loved by all
and tend to avoid the pain of being rejected. Since, the human beings are social animals, they like to
interact and be with others where they feel, people accept them. Thus, people with these needs like to
maintain the pleasant social relationships, enjoy the sense of intimacy and like to help and console
others at the time of trouble.
Need for Achievement (n-ach): McClelland found that some people have an intense desire to achieve.
He has identified the following characteristics of high achievers:
▪ High achievers take the moderate risks, i.e. a calculated risk while performing the activities in the
management context. This is opposite to the belief that high achievers take high risk.
▪ High achievers seek to obtain the immediate feedback for the work done by them, so as to know
their progress towards the goal.
▪ Once the goal is set, the high achiever puts himself completely into the job, until it gets
completed successfully. He will not be satisfied until he has given his 100% in the task assigned to him.
▪ A person with a high need for achievement accomplishes the task that is intrinsically satisfying
and is not necessarily accompanied by the material rewards. Though he wants to earn money, but
satisfaction in the accomplishment of work itself gives him more pleasure than merely the cash
reward.
Hence, M Clella d s Needs Theo posits that the pe so s le el of effe ti e ess a d oti atio is
greatly influenced by these three basic needs.

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4) Alderfer’s ERG Theory

Definition: Alderfer’s ERG Theory is the e te sio of Maslo s Needs Hie a h , he ei the Maslo s
five needs are categorized into three categories, Viz. Existence Needs, Relatedness Needs, and Growth
Needs.

An American psychologist Clayton Paul Alderfer had proposed this theory and believed that each need
carries some value and hence can be classified as lower-order needs and higher-order needs. He also
found some level of overlapping in the physiological, security and social needs along with an invisible line
of demarcation between the social, esteem and self-actualization needs. This led to the formation
Alde fe s E‘G theo , hi h o p ises of the o de sed fo of Maslo s eeds.

Alderfer’s ERG Theory

Existence Needs: The existence needs comprises of all those needs that relate to the physiological and
safety aspects of human beings and are a prerequisite for the survival. Thus, both the physiological and
safety needs of Maslow are grouped into one category because of their same nature and a similar impact
on the behavior of an individual.
Relatedness Needs: The relatedness needs refer to the social needs, that an individual seeks to establish
elatio ships ith those fo ho he a es. These eeds o e the Maslo s so ial eeds a d a pa t of
esteem needs, derived from the relationship with other people.
Growth Needs: The g o th eeds o e Maslo s self-actualization needs as well as a part of esteem
needs which are internal to the individual, such as a feeling of being unique, personnel growth, etc. Thus,
growth needs are those needs that influence an individual to explore his maximum potential in the
existing environment.

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UNIT - III

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0
LEADERSHIP

MEANING…

Leadership is a process by which an executive can direct, guide and influence the behavior and work of
others towards accomplishment of specific goals in a given situation. Leadership is the ability of a
manager to induce the subordinates to work with confidence and zeal.

Leadership is the potential to influence behaviour of others. It is also defined as the capacity to influence a
group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.

According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivates it towards goals.”

Characteristics of Leadership

1. It is a inter-personal process in which a manager is into influencing and guiding workers towards
attainment of goals.
2. It denotes a few qualities to be present in a person which includes intelligence, maturity and
personality.
3. It is a group process. It involves two or more people interacting with each other.
4. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment
of organizational goals.
5. Leadership is situation bound. There is no best style of leadership. It all depends upon tackling
with the situations.

Leadership Styles

Leadership style is the manner and approach of providing direction, implementing plans, and motivating
people. As seen by the employees, it includes the total pattern of explicit and implicit actions performed
by their leader (Newstrom, Davis, 1993).

The first major study of leadership styles was performed in 1939 by Kurt Lewin who led a group of
researchers to identify different styles of leadership (Lewin, Lippit, White, 1939). This early study has
remained quite influential as it established the three major leadership styles: (U.S. Army, 1973):

• authoritarian or autocratic - the leader tells his or her employees what to do and how to do it,
without getting their advice
• participative or democratic - the leader includes one or more employees in the decision making
process, but the leader normally maintains the final decision making authority
• delegative or laissez-fair (free-rein) - the leader allows the employees to make the decisions,
however, the leader is still responsible for the decisions that are made

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Although good leaders use all three styles, with one of them normally dominant, bad leaders tend to stick
with one style, normally autocratic.

Authoritarian or Autocratic Leadership

I want both of you to. . .

This style is used when leaders tell their employees what they want done and how they want it
accomplished, without getting the advice of their followers. Some of the appropriate conditions to use this
style is when you have all the information to solve the problem, you are short on time, and/or your
employees are well motivated.

Some people tend to think of this style as a vehicle for yelling, using demeaning language, and leading by
threats. This is not the authoritarian style, rather it is an abusive, unprofessional style called “bossing
people around.” It has absolutely no place in a leader's repertoire.

The authoritarian style should normally only be used on rare occasions. If you have the time and want to
gain more commitment and motivation from your employees, then you should use the participative style.

Participative or Democratic Leadership

Let's work together to solve this. . .

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This style involves the leader including one or more employees in the decision making process
(determining what to do and how to do it). However, the leader maintains the final decision making
authority. Using this style is not a sign of weakness, rather it is a sign of strength that your employees will
respect.

This is normally used when you have part of the information, and your employees have other parts. A
leader is not expected to know everything—this is why you employ knowledgeable and skilled people.
Using this style is of mutual benefit as it allows them to become part of the team and allows you to make
better decisions.

Even if you have all the answers, gaining different perspectives and diversity of opinions normally provide
greater creativity than insularity. As Katherine Phillips wrote,

So as you think about diversity and its effects in organizations during this tough economic time, recognize
that the most robust practical value of diversity is that it challenges everyone in an organization. We are
more thoughtful, and we recognize and utilize more of the information that we have at our disposal, when
diversity is present. That is diversity’s true value.

Delegative or Laissez-faire Leadership

You two take care of the problem while I go. . .

In this style, the leader allows the employees to make the decisions. However, the leader is still
responsible for the decisions that are made. This is used when employees are able to analyze the situation
and determine what needs to be done and how to do it. You cannot do everything! You must set priorities
and delegate certain tasks.

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This is not a style to use so that you can blame others when things go wrong, rather this is a style to be
used when you fully trust and have confidence in the people below you. Do not be afraid to use it,
however, use it wisely!

A good leader uses all three styles, depending on what forces are involved between the followers, the
leader, and the situation. Some examples include:

• Using an authoritarian style on a new employee who is just learning the job. The leader is
competent and a good coach. The employee is motivated to learn a new skill. The situation is a
new environment for the employee.
• Using a participative style with a team of workers who know their jobs. The leader knows the
problem, but does not have all the information. The employees know their jobs and want to
become part of the team.
• Using a delegative style with a worker who knows more about the job than you do. You cannot do
and know everything and the employee needs to take ownership of her job! In addition, this allows
you to be more productive.
• Using all three styles: Telling your employees that a procedure is not working correctly and a new
one must be established (authoritarian). Asking for their ideas and input on creating a new
procedure (participative). Delegating tasks in order to implement the new procedure (delegative).

Leadership Functions:

Following are the important functions of a leader:

1. Setting Goals:

A leader is expected to perform creative function of laying out goals and policies to persuade the
subordinates to work with zeal and confidence.

2. Organizing:

The second function of a leader is to create and shape the organization on scientific lines by assigning
roles appropriate to individual abilities with the view to make its various components to operate
sensitively towards the achievement of enterprise goals.

3. Initiating Action:

The next function of a leader is to take the initiative in all matters of interest to the group. He should not
depend upon others for decision and judgment. He should float new ideas and his decisions should reflect
original thinking.

4. Co-Ordination:

A leader has to reconcile the interests of the individual members of the group with that of the organization.
He has to ensure voluntary co-operation from the group in realizing the common objectives.

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5. Direction and Motivation:

It is the primary function of a leader to guide and direct his group and motivate people to do their best in
the achievement of desired goals, he should build up confidence and zeal in the work group.

6. Link between Management and Workers:

A leader works as a necessary link between the management and the workers. He interprets the policies
and programmes of the management to his subordinates and represents the subordinates’ interests before
the management. He can prove effective only when he can act as the true guardian of the interests of his
subordinates.

Qualities of a Good Leader:

A successful leader secures desired behaviour from his followers. It depends upon the quality of
leadership he is able to provide. A leader to be effective must possess certain basic qualities. A number of
authors have mentioned different qualities which a person should possess to be a good leader.

Some of the qualities of a good leader are as follows:

1. Good personality.
2. Emotional stability.
3. Sound education and professional competence.
4. Initiatives and creative thinking.
5. Sense of purpose and responsibility.
6. Ability to guide and teach.
7. Good understanding and sound judgment.
8. Communicating skill.
9. Sociable.
10. Objective and flexible approach.
11. Honesty and integrity of character.
12. Self confidence, diligence and industry.
13. Courage to accept responsibility

Importance of Leadership in Management:

The importance of leadership in any group activity is too obvious to be over-emphasized. Wherever, there
is an organized group of people working towards a common goal, some type leadership becomes essential.
Lawrence A. Appley remarked that the time had come to substitute the word leadership for management.

Although the concern for leadership is as old as recorded history, it has become more acute during the last
few decades due to the complexities of production methods, high degree of specialization and social
changes in the modern organizations. A good dynamic leader is compared to a ‘dynamo generating
energy’ that charges and activates the entire group in such a way that near miracles may be achieved. The
success of an enterprise depends to a great extent, upon effective leadership.’

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UNIT – IV

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BEST OF LUCK!
By: SRCEM, Palwal

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