March 2011

Master of Business Administration (MBA) Examination

I Semester

Organization Behaviour and Processes

Time 3 Hours)                                                                                                 (Max. Marks 80

Note : There are two sections in this paper. Section A and B. Answer any four questions from Section A; each question carries 15 marks. Section B is compulsory and carries 20 marks.

Section A

1.         The study of personality deals with the whole person." Discuss the statement in the light of the determinant and attributes of personality.

2.         Compare and contrast Maslow's hierarchy of needs theory with (a) Alderfet's ERG Theory, and (b) Herzberg's Motivation- Hygiene Theory.

3.         Discuss Hersey and Blanchard Model of Leadership. How it is different from Managerial Grid Theory?

4.         What are the different levels of organizational culture ? How can the organization's analyse, manage and change the organizational culture?

5.         What forces organization's to change ? What are the resistances and approaches to organizational change ? Explain in the context of Management of Change.

6.         Write short notes on any three of the following :

(a)        Job Attitudes.

(b)        Learning Theories.

(c)        Emotional Intelligence and Leadership Effectiveness.

(d)       Stages of Group Development.

(e)        Stress Management Techniques.

Section B

7.         Analyze the following case and answer the questions given at the end :


Command Press, Incorporated, manufactures and sells a complete line of greeting cards, invitations, party favours, etc. In 1981, total sales exceeded $100 million and the company employed 360 people.

Preparation of the annual budget for marketing is the combined responsibility of the budget officer, the 'division sales managers, and the vice president. The budgeting process revolves around a fiscal year which runs from July 1 through June 30 of the following year. Around April 1 of each year, each sales division manager is requested to submit his or her budget proposal for the next fiscal year. After each division manager submits the personnel and financial needs, the budget officer and vice president meet, analyze the requests, and propose a budget.

After the budget is prepared, the president briefs the board of directors. If they approve the budget, the document becomes the new budget for the fiscal year beginning July 1. While the budget is reviewed at midyear (six-month point) and adjusted internally, the general tendency is to leave the budget as Is" once approved.

Linda Seigmiller, sales manager of Division A, prepared her budget proposal on April 6 and submitted it to the vice president. In her budget proposal, she requested one new salesperson because the sales of Division A had increased 7.5 percent during the past year. The unwritten guideline , in the company was that a division received an additional person for every 7.5 percent increase in sales. She also requested a proportional increase in supplies, travel expenses, and telephone expenses for Sales Division A. She knew that her division had, by far, the largest sales increase for the year and she felt confident that her requests would be honored. After preparing and sending her budget proposal to the vice president, Linda received the third-quarter sales figures and observed the following sales increases for each division ." A (30%); B (6.3%); C (4.3%); D (8.8%). After seeing these figures, she called a staff meeting on May 1. In this meeting her section managers indicated that they believed the increase in sales would continue for Division A through the next fiscal year. Linda did not inform the vice president of this new projection.

At a staff meeting on June 1, the vice president told the division sales managers that the president had approved the new budget and that it would be distributed within the week. The sales manager of Division C asked a question about new people needed because of increased sales. The vice president responded that Division A would receive 1 additional salesperson, Division B would receive 2.5, Division C would receive 7, and Division D would receive 1. Linda was shocked by the response and immediately requested a reevaluation of the budget because her division had the largest increase in sales and the smallest increase in new personnel. After leaving the meeting, Linda telephoned the budget officer and asked if he could explain to her the logic for the allocation of new personnel. He replied that she had requested one new position and she received one new position. She countered by informing him of the third quarter sales figures and said she now needed three new people to meet anticipated sales. She also asked. "Why did Division C receive 7 new authorizations with only a 4.3 percent increase in sales 7' The budget officer responded that he didn't exactly know the reasoning behind the allocation of new people; however, he did know that Division A received 100 percent of its requested budget while the other' divisions received less than they requested.

After the telephone conversation, Linda felt disgusted because she had been honest during the budgeting process and had requested only those increases that could be documented by increases in productivity, whereas it appeared that other departments had "padded" their budget requests.

Discussion Questions :

1.      What are the major sources of conflict among the. divisions?

2.      What strategy did Linda Seigmiller use to deal with other divisions ? What strategies did other divisions use to accumulate resources ?

3.      How has competition among divisions hurt the overall effectiveness of Command Press?

4.      Do you think that Linda Seigmiller will act differently the next time budgets are reviewed? Why?