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MANAGEMENT PROGRAMME
Term-End Examination
December, 2015

MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE
Time : 3 hours Maximum Marks : 100 (Weightage 70%)
Note : (i) There are two Sections A and B.
(ii) Attempt any three questions from Section-A. All questions carry 20 marks each.
(iii) Section-B is compulsory and carries 40 marks.


SECTION - A
1. What is Organizational Development (OD) ? Describe various stages of OD and their relevance.
2. Differentiating organization and institution, describe what characterizes an institution and factors influencing institution building.
3. Describe any two diagnostic tools and their advantages and disadvantages.
4. Distinguish between job, occupation, and career and discuss any two approaches of job design and their merits and demerits.
5. Write short notes on any three of the following :
(a) Hybrid Structure
(b) Time and Motion Study
(c) Process Consultation
(d) Process of Change
(e) Organisations as Political Systems

 

SECTION - B
6. Read the following case carefully and answer the questions given at the end :


Since 1994, Boeing began the process of remaking the company for the next round of aircraft purchases. Every part of the company is involved, from engineering to manufacturing. The focus of the change is that Boeing is a manufacturing company rather than an engineering and technology company. Due to changes in the air travel business, the major commercial airlines are demanding lower airplane prices and significantly lower operating costs. Airbus continues to be a fierce competitor, so Boeing must meet the competition early and on every front. (Boeing bought Mc Donnell Douglas in 1997.)

It is not as if the company is in financial trouble. Its new model 777 is generating lots of orders. Plans are in the works for a new supersonic and another jumbo jet for commercial sales, and several new project possibilities exist for the defence division. The new 777 was designed completely on the computer so that designs went straight from the designer'scomputers to the machine tools for manufacturing. It can carry as many as four hundred passengers, fifty more than the  comparable Airbus 33 t. It is 15 per cent more fuel efficient, and can fly over eight thousand miles non-stop. Orders are coming in faster than
for any other new plane, although its price is pretty steep : $12 - $15 million, depending on
interior layout.

 

Boeing's new CEO, Philip Condit, must continue the reductions in cycle time and cost cutting, started by his predecessor, Frank Shrontz, because airlines are making their purchase decisions differently than in the past, even choosing in some cases to refurbish older planes rather than buy expensive new ones. The changes started with Condit and his team of presidents of the divisions of commercial planes, defence and space, and computer services. This group differs notably from its predecessors in that they have met together for several years to discuss the good and bad things about each other's divisions and
the future of the company. They all embrace the new togetherness theme as the primary means
through which the company will be able to reduce cycle times, improve delivery times, cut product
development time, and reduce total costs.

 

In the former structure the design and manufacturing groups were separate. Design and engineering groups would design the planes and then give the plans to manufacturing to build. When problems existed in the design, they would be sent through the hierarchy back to engineering for correction. Under the new structure, comprehensive design-and-build teams include members of all groups involved. Therefore, planes are originally designed to meet customer's needs,  are easier to build, and corrections are made faster. For example, previously, when tool builder Tony Russell had a problem with an engineering design or specification, he would have to go to his supervisor and the problem would be shuffled through to engineering. Now he goes directly to the engineering and design group, gets the problem solved, and gets back to work with the correct design. This type of revision in the process
has helped reduce the product delivery time from eighteen to ten months. The team approach and working-together ideas were used extensively on the 777. Some teams included tool makers, designers, manufacturing workers, suppliers, and even customer representatives. Contrary to past procedures, workers on the line were allowed to change how planes were built, which has significantly decreased costs. Condit has instituted 360 degree performance reviews in which managers are evaluated by their subordinates, their peers, and their own supervisors to improve understanding of how they are doing from all perspectives. Employee empowerment is increasing at all levels. Condit and his team are having quite an impact throughout the company.

 

Questions :
(a) The new way of organizing at Boeing most resembles which of the classical types of organizing ? Justify.
(b) How have responsibility and authority been altered under Condit's new approach ?
(c) Describe the new ways of organizing at Boeing in terms of the configurational and operational aspects of structure

 

MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE

June 2013

SECTION - A

 

1. What are the objectives of T-Group training and briefly discuss the benefits of T-Group Training at individual, group and organisational levels.

 2. Discuss the elements that need to be reviewed for organisational analysis and briefly describe the analysing organisations.

 3. Briefly describe the contemporary approaches to job design and their relevance.

 4. What is the purpose of organisation design ? Briefly describe the factors which affect

organisation design.

5. Write short notes an any three of the following :

(a) Task force

(b) Centralisation Vs Decentralisation

(c) Quality of work life

(d) Interview as a diagnostic tool

(e) Process of change

SECTION – B

 

6. Read the following case carefully and answer the questions given at the end :

 ABB: A HUGE GLOBLE MATRIX

 If lean and mean could be personified, Percy Barnevik would walk through the door. A thin, bearded Swede, Barnevik is Europe's leading hatchet man. He is also creator of what is fast becoming the most successful cross-border merger since Royal Dutch Petroleum linked up with Britain's Shell in 1907.

 

In four years, Barnevik, 51, has welded ASEA, a Swedish engineering group, to Brown Boveri, a Swiss competitor, bolted on seven more companies in Europe and the U.S.A. and created ABB, a global electrical equipment giant that is bigger than Westinghouse and head to head with GE. It is a world leader in high-speed trains, robotics and environmental control.

 

To make this monster dance, Barnevik cut more than one in five jobs, closed dozens of factories and decimated headquarters staffs around Europe and the U.S.A. Whole businesses were shifted from one country to another. He created a corps of just 25 global managers to lead 21,000 employees. IBM has talked with Barnevik and his team about how to pare down its own overstaffed bureaucracy. Du Pont recently put Barnevik on its board. Says a senior executive at Mitsubishi Heavy Industries. "They're as aggressive as we are. I mean this as a compliment. They are sort of super Japanese."

 ABB is not Japanese, nor is it Swiss or Swedish. It is a multinational without a national identity, though its mailing address is in Zurich. The company's top 13 managers hold frequent meetings in different countries. Since they share no common first language, they speak only English, a foreign tongue to all but one. Like their boss, senior ABB managers are short on sentiment and long on commitment. An oil portrait of a 19th century founder of Brown Boveri hangs in ABB's headquarters, but few are sure what his name is. (It's Charles Brown). Ask for a fax number, though and you're likely to get two, office and home.

 To Barnevik, today's competitive market economy is a 'cruel world'. Not making it any kinder, he has launched a personal war on what he sees as excess capacity-2 percent to 3 percent in the electrical equipment industry in Europe alone. Educated in Sweden and the U.S.A (he studied business administration and computer science at Stanford in the mid-1960s), Barnevik thinks European industry must be restructured massively to become competitive in world markets. He foresees billions of dollars and mergers and acquisitions in the next three to five years. Europe's best strategy against the Americans and Japanese, he believes, is to break free of protected national markets.

 Before the merger, Brown Boveri had four people in Baden, Switzerland, and ASEA had as many as 2 in Vasteras, Sweden. The combined company now employs just 15 in a modest six-storey building across a train station in west Zurich. Where did everybody go? Many were fired. The rest were sent to subsidiaries or offered jobs in new companies set up or assume many headquarters functions. (ABB Marketing Services, for example, creates and runs campaigns for ABB, but also takes on a few other clients). And Barnevik expects to make money). It's not just cost cutting Barnevik is after, though that is obviously important. Says he. "Ideally you should have a minimum of staff to disturb the operating people and prevent them from doing their more important jobs."

 Barnevik's master matrix gives all employees a country manager and a business sector manager. The country managers run traditional, national companies with local boards of directors, including eminent outsiders. ABB has about two such managers, most of them citizens of the country in which they work. Of more exalted rank, are 65 global managers who are organised into eight segments: transportation, process automation and engineering environmental devices, financial services, electrical equipment (mainly motors and robots) and three electric power businesses: generation,transmission and distribution.

 Barnevik is well aware that the once popular management by matrix is in disfavour in the U.S.business schools and has been abandoned by most multinational companies. But he says he uses a loose, decentralised version of it-the two bosses are not always equal-that is particularly suited to an organisation composed of many nationalities.

 The matrix system makes it easier for managers like Gerhard Schulmeyer, a German who heads ABB's U.S. businesses as well as the automation segment, to make use of technology from other countries. Because of the matrix, Schulmeyer has a better idea of what is available where.

 He says that the techniques developed by ABB in Switzerland that he uses to service U.S. steam turbines are more reliable and efficient than those of General Electric and Westinghouse, his main American competitors. Schulmeyer also relied on European technology to convert a Midland, Michigan, nuclear reactor into a natural gas-fired plant.

 ABB executives say the value of the company's matrix system extends beyond the swapping of technology and products. For example, the power transformer business segment consists of 31 factories in 16 countries. Barnevik wants each of these business to be run locally with intense lobal coordination. So every month the business segment headquarters in Mannheim, Germany, tells all the factories how all the others are doing according to dozens ofmeasurements. If one factory is lagging, solutions to common problems can be discussed and worked out across borders.

 Questions :

(a) Which of the four basic departmentalisation formats do you detect in ABB's structure of eight segments ? Explain.

(b) Has Barnevik created an effective balance between centralisation and decentralisation ? How can you tell ?

(c) Relative to the advantages and disadvantages, is ABB's matrix structure appropriate to its situation ?

(d) How does ABB apparently avoid unity-of-command problems with its matrix structure ?

MS-10   june, 2007

MS-10 : ORGANISATIONAL DESIGN, DEVELOPMENT AND CHANGE

1.Distinguish between the Functional and Product organisation and Une & Staff organisation. List out their merits and demerits with examples.

2. Describe the skills required for becoming a successful change agent and briefly discuss the role of a change agent.

3. Briefly describe the erherging trends in work organization and discuss how they affect the quality of work life of employees, with suitable examples.

4. Describe the meaning and purpose of job design and various approaches to job design and their relevance.

5. Write short notes on any threeof the following :

(i) Inverted pyramid structure

(ii) Intervidru as a diagnostic tool

(iii) Organisation vs. institution

(iv) T-Group training

v)Mechanistic vs. Organic organization

6. Read the following case carefully and answer the questions given at the end :

If lean and mean could be personified, Percy Barnevik would walk through thr door a thin bearded swede Barnevik is Europe's leading hatchet man. He is also the creator of what is fast becoming the most successful cross-border merger since Royal Dutch Petroleum linked up with Britain's Shell in 1907.

In four years, Barnevik, 51, has welded ASEA, a Swedish engineering group, to Brown Boveri, a Swiss competitor, bolted on 7 more companies in Europe and the [J.S., and created ABB, a global electrical equipment giant that is bigger than Westinghouse and can go head to head with GE. It is a world leader in high-i peed trains, robotics, and environmental control.

To make this monster dance, Barnevik cut more than one in five jobs, closed dozens of factories, and decimated headquarters staffs around Europe and the [J.S. Whole businesses were shifted from one country to another. He created a corps of just

25 global managers to lead 21,000 employees. IBM has talked with Bamevik and his team. about how to pare down its own overstaffed bureaucracy. Du Pont recently put Barnevik on its board. Says a senior executive at Mitsubishi Heavy Industries :

"They're as aggressive as we are, I mean this as a compliment. They are sort of super-Japanese." ABB isn't Japanese, nor is it Swiss or Swedish. It is multinational without a national identity, though its mailing address is in Zurich. The company's 13 top managers hold frequent meetings in different countries. Since they share no common first language, they speak only English, a foreign tongue to all but one. Like their boss, senior ABB managers are short on sentiment and long on commitment. An oil portrait of a l9th-century founder of Brown Boveri hangs in ABB's headquarters, but few are sure what his name is. (lt's Charles Brown.) Ask for a fax number, though, and you're likely to get two, office and home.

To Barnevik, today's competitive market economy is a "cruel world". Not making it any kinder, he has launched a personal war on what he sees as excess capacity

- 2% to 3% in the electrical equipment industry in Europe alone. Educated in Sweden and the U.S. (he studied Business Administration and Computer Science at

Stanford in the mid-1960s), Barnevik thinks European industry must be restructured massively to become competitive in world markets. He foresees billions of dollars of mergers and acquisitions in the next three to five years. Europe's best strategy against the Americans and Japanese, he national markets. believes; is to break free of, protected

Before the merger, Brown Boveri had 4 people in Baden, Switzerland. ASEA had as nrqny as 2, in Vasteros, Sweden. The combined company now employs just 15 in a modest six-storey building across from a train station in west Zurich. Where did everybody go ? Many were fired. The rest were sent to subsidiaries or off ered jobs in new companies set up to assume rnany headquarters functions. (ABB Marketing Services, for exarnple, creates. and mns and campaigns for ABB, but

. also takes on a few other clients. And Bamevik expects it to make money.) It's not just cost cutting Barnevik is after, though that is obviously irnportant. Says he : "ldeally you should have a minimum of staff to disturb the operating people and prevent them from doing their more importdnt jobs. "

Bamevik's master matrix gives all employees a country manager and a business sector manager. The country managers run traditional, national companies with local boards of directors, including eminent outsiders. ABB has about 2 such managers, most of them citizens of the country in which they work. Of more exalted rank are 65 global managers who are organized into eight segments : transportation, process automation and' engineering, environmental devices, financial services electrical equipment (mainly motors and robots), and three electric power businesses : generation, transmission, and distribution. Barnevik is well aware that the once popular management by matrix is in disfavour in the U.S. business schools and has been abandoned by most multinational companies. But he says he uses a loose

Decentralized version of it the two bosses are not always equal that is particularly suited to an organization composed of many nationalities

The matrix system makes it easier for managers like Gerhard Schulmeyer, a German who heads ABB's U.S. businesses as well as the automation segment, to make use of technology from other countries. Because of the matrix, Schulmeyer has a better idea of what is available where. He says that the techniques developed by ABB in

Switzerland that he uses to serviee U.S. steam turbines are more reliable and efficient than those of General Electric and Westinghouse, his main American competitors. Schulmeyer also relied on European technology to convert a Midland, Michigon, nuclear reactor into a natural gas-fired plant, ... ABB executives say the value of the company's matrix system extends beyond the swapping of technology and products. For example, the power transformer business segment consists of 31 factories in 16 countries. Barnevik wants each of these businesses to be run locally with intense global coordination. So every month the business segment headquarters in Mannheim, Germany, tells all the factories how all the others are

doing according to dozens of measurements. If one factory is lagging, solutions to common problems can be discussed and worked out across borders.

Questions

(a) How is ABB achieving integration and coordination of its global operations ?

(b) Which of the four basic departmentalization formats Explain.

(c) Has Barnevik created an effective balance between centralization and decentralization ?

(d) How does ABB apparently avoid unity-of-command problems with its matrix structure

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