IGNOU| ORGANISATION THEORY AND BEHAVIOUR (MCO - 01)| SOLVED PAPER – (DEC - 2023)| (M.COM)| ENGLISH MEDIUM
MASTER OF COMMERCE (M.Com)
Term-End Examination
December - 2023
MCO-01
ORGANISATION THEORY AND BEHAVIOUR
Time: 3 Hours
Maximum Marks: 100
Note: (i) Attempt any five questions.
(ii) All questions carry equal marks.
हिंदी माध्यम: यहां क्लिक करें
1. “Classical theory of organisation was developed in three streams: Bureaucracy, Administrative Theory and Scientific Management.” In the light of the statement, explain classical theory of organisation. 20
Ans:- The classical theory of organisation was
developed in three main streams: bureaucracy, administrative theory and
scientific management. These streams are characterised by different
approaches to understanding and managing organisations.
(A)
Bureaucracy: Max Weber's bureaucratic theory emphasises the importance of
hierarchical structure, specialisation, predictability and rationality in
organisations. The key features include:-
(i)
Hierarchy: Positions are structured with clear responsibilities and
authority.
(ii)
Specialisation: Tasks are classified and segregated on the basis of
specialisation.
(iii)
Predictability and stability: The organisation operates according to formal
rules and regulations.
(iv)
Rationality: Recruitment and selection are based on impartial criteria.
(B)
Administrative Theory: Henri Fayol's administrative theory focuses
on the entire organisation, emphasising the importance of management
principles, line and staff structures and various management functions. The
key elements include:-
(i)
Division or specialisation of work: Enhances productivity in both
technical and managerial areas.
(ii)
Authority and responsibility: Ensures that organisational members achieve
established objectives.
(iii)
Discipline: Members follow organisational objectives, rules and regulations
(iv) Unity
of command: Members take orders from a single superior and are accountable to
him.
(v) Unity
of direction: Members work collectively towards shared organisational goals.
(vi)
Subordination of individual interest to general interest:
Organisational interests prevail over individual or group interests.
(vii)
Remuneration of personnel: Compensation may be based on various factors
such as time, job, piece rate, bonus, profit-sharing or non-financial rewards.
(viii)
Centralisation: Management balances centralisation and decentralisation of
authority.
(ix)
Scalar chain: Members at the same hierarchical level can cooperate directly if
approved by higher management.
(x)
Orderliness: There is a designated place for everything and everyone in the
organisation.
(xi)
Equality: Fairness, justice and equality are maintained within the
organisation.
(xii)
Stability of tenure of personnel: Job security enhances performance as
employees need time to adapt to new tasks.
(xiii)
Initiative: It is essential to encourage and stimulate initiative.
(xiv)
Concept of Line and Staff: Relevant in large organisations requiring
specialised skills.
(xv)
Committees: An integral part of the organisation, committees perform diverse functions
such as managerial, decision making, recommending or policy making.
(xvi)
Functions of Management: Fayol identified management as a combination
of planning, organising, training, commanding and coordinating functions.
(C)
Scientific Management: Frederick Taylor's scientific management
theory emphasizes the importance of careful planning of work to enhance
efficiency, standardization, specialization and simplification. The major
principles include:-
(i)
Replace old rules with a scientific approach: Every aspect of work is planned
scientifically.
(ii)
Selection and training of employees: Members are selected on the basis of
thorough analysis and training.
(iii)
Promoting cooperation: Management and workers cooperate to avoid
conflict and ensure that work is done in accordance with scientific principles.
(iv)
Applying scientific training: Workers are trained by experts using
systematic methods.
Criticisms:
Classical organisational theory has faced several criticisms, including:
(i) Lack
of scientific evidence: Theories are hypothetical and lack empirical
evidence.
(ii)
Excessive emphasis on organisational structure: Theories
ignore important human elements and sociological dimensions.
(iii)
Neglect of human factors: Theories mainly emphasize economic
motivations and ignore emotional ties to the workplace.
(iv) Resistance
to change: The theories portray organisations as isolated systems, making
them resistant to adapting to changes.
In brief, the
classical theory of organisation comprises three main streams: bureaucratic,
administrative theory and scientific management. Each stream emphasises
different aspects of organisational management, such as hierarchy,
specialisation and efficiency. However, these theories have been criticised for
their rigid and static views, neglect of human factors and lack of adaptability
to changing environments.
2. Discuss the components of organisation structure. Explain how
do they help in smooth functioning of organisation. 10+10
Ans:- Organisational structure is a framework that
outlines how a company works, defining roles, responsibilities and
communication channels. It is essential for achieving organisational goals and
ensuring efficiency.
The major
components of organisational structure include:-
(i) Work
specialisation: This involves dividing work into smaller, specialised tasks to
increase productivity and efficiency. It is based on the assumption that the
more a particular task is broken down into simpler parts, the more an individual
can become an expert in performing part of that task.
(ii)
Departmentalisation: This is the process of dividing the
organisation into different departments or units based on functions, products,
geography or processes. It helps in organising and coordinating work
effectively.
(iii)
Chain of command: This refers to the hierarchical structure of
authority within an organisation, where each level reports to a higher level.
This ensures that there is a clear line of authority and decision-making.
(iv) Span
of control: This is the number of employees for whom a manager or supervisor
is responsible. This affects the level of centralisation and the amount of
authority given to each manager.
(v)
Delegation of authority: This involves assigning specific tasks and
responsibilities to employees, which helps to distribute work and
decision-making authority effectively.
(vi)
Centralisation and decentralisation: These refer to the level of authority
and decision-making power given to different levels of management. Centralised
structures have a clear chain of command, while decentralised structures
provide more autonomy to employees.
(vii)
Formalisation: This involves establishing formal rules, procedures and policies
to ensure consistency and efficiency in operations.
These
components work together to create a well-defined organisational structure that
helps to achieve company objectives efficiently.
These
components work together to create a clear and organised framework for the
organisation. They help in:-
(i) Defining
roles and responsibilities: Each employee knows their specific role and
how it fits into the larger system, ensuring that everyone is working towards
the same goals.
(ii)
Improving communication: Structure facilitates communication between
departments and levels within the organization, reducing confusion and
inefficiency.
(iii)
Increasing efficiency: By defining tasks and responsibilities,
structure ensures that each department focuses on its specific tasks, thereby
increasing productivity and efficiency.
(iv)
Promoting accountability: Clear command chains and defined roles help
keep employees accountable for their work and decisions.
(v) Aiding
decision making: Structure provides a framework for decision
making, ensuring that decisions are made in a structured and informed manner.
Overall, these
components of organizational structure are vital to the smooth operation of a
business, as they provide employees with a clear framework to work within and
help achieve the organization's goals effectively.
3. Describe the process of perception. Also discuss the factors
influencing perception. 10+10
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