MMPC-001 Solved Question Paper

Selected term: Jan 2025

Question 1. Human Relations approach and how it reshaped management

From “machines and money” to “people and relationships”

The Human Relations approach shifted attention from stopwatches, targets and rigid rules to people’s feelings, group dynamics and social needs at work. Instead of assuming that workers care only about wages, this view says that employees also need respect, recognition, belonging and a voice in decisions.

Key ideas of the Human Relations school

• Informal groups matter: People don’t behave only as individuals; they are strongly influenced by their work group’s norms and friendships.
• Non-financial motivators are powerful: Appreciation, involvement, fair treatment and growth opportunities can drive performance as much as (or more than) money.
• Communication and leadership style are crucial: Supportive, listening-oriented supervisors usually get better results than authoritarian bosses.
• Employees are “social beings”: Productivity depends on how people feel, not just on how work is designed.

Impact on the evolution of management thought

• It challenged the earlier “hard” views of Scientific Management and classical theory, which treated workers like cogs whose main concern was wages.
• It laid the foundation for organisational behaviour, focusing on motivation, leadership, communication, teamwork and job satisfaction.
• It encouraged more participative styles – consultation, involvement in decisions, suggestion schemes, counselling, team meetings.
• It made managers responsible not just for output, but also for climate, morale and relationships in their teams.

Practical example

Imagine a call centre where management used to push only call quotas and strict scripts. Turnover was high. After adopting Human Relations ideas, they started weekly team huddles, open feedback with the supervisor, peer support for difficult calls and recognition for good service, not just number of calls. Over a year, absenteeism dropped and customer satisfaction improved – not because the script changed, but because people felt heard and respected.

Question 2. Scientific management and how it organises and analyses work

Seeing work as something that can be studied scientifically

Scientific management, associated with F.W. Taylor, treats each job as a process that can be analysed, measured and redesigned to find the “best way” of doing it. The goal is to remove guesswork, reduce waste and use data to set standards.

How scientific management organises work

• Breaking work into small tasks: Each job is divided into simple steps so that they can be taught and repeated easily.
• Clear separation of planning and doing: Managers and engineers decide the methods and set standards; workers focus on execution.
• Standardisation: Tools, motions, procedures and time taken are standardised so that performance can be compared and improved.
• Right person for the right job: Scientific selection and training ensure that a worker’s abilities match the task.
• Incentive-based pay: Output-linked wages or bonuses are used to reward higher productivity.

How it analyses work in practice

• Time and motion study: Observing each movement with a stopwatch, removing unnecessary motions and setting a fair time standard.
• Work measurement: Determining how much work a trained worker should do in a normal shift under standard conditions.
• Method study: Comparing alternative ways of doing a job (layout, tools, sequence) and choosing the most efficient combination.

Real-life illustration

In a small packing unit I’ve seen, workers initially packed products differently, leading to uneven speed and frequent errors. After observing the process, the supervisor introduced a standard layout (box on the left, labels in front, products on the right), set a simple 5-step sequence and trained everyone in it. Output per person increased, errors reduced and new workers got trained faster because the steps were clear and standard.

Question 3. Why managers must inspire and influence people, not just give orders

Leadership as influence, not position

In your course material, leadership is described as influencing people so they willingly work toward shared goals, not just following instructions because they have to. A manager who only uses authority may get short-term compliance; a manager who inspires and influences gets commitment.

How managers inspire and influence

• By showing a clear purpose: People work harder when they understand why their task matters – to customers, to the organisation and to themselves.
• By being a role model: When managers are honest, keep promises and work hard, the team feels a moral pressure to match that standard.
• By using motivation smartly: Good managers understand different needs – pay, growth, recognition, work–life balance – and try to align these with organisational goals.
• By building relationships: Regular one-to-ones, listening to concerns and being fair in decisions build trust, which is the real source of influence.
• By adapting leadership style: At times they need to be directive (crisis); at other times, participative or coaching, depending on the team and situation.

Practical workplace example

Consider a manager leading a software team close to a product release. Instead of just pushing overtime, she explains how this release will help a key client and secure future projects, shares appreciation emails from customers, joins late-night testing herself, arranges food and transport, and publicly thanks contributors. The team feels respected and part of something meaningful, so they voluntarily go the extra mile. That is inspiration plus influence in action.

Question 4. Organisation structure and chart – why they matter and what shapes them

Why structure is important

Organisation structure is the formal pattern of roles, authority and relationships that tells everyone “who does what, who reports to whom, and how work is grouped.” A clear structure helps to:

• Reduce confusion about responsibilities and reporting lines.
• Coordinate different functions like marketing, production, finance and HR.
• Speed up decision-making by clarifying who has authority for what.
• Provide a basis for control, communication and performance evaluation.

Role of an organisation chart

An organisation chart is a visual map of the structure – showing positions as boxes and reporting lines as connecting lines. It helps new employees quickly understand the hierarchy, the span of control of each manager and the formal communication routes. In practice, many managers keep it open on their desk or intranet to see where to route issues.

Main factors that influence the choice of structure

• Environment: Stable environments can work with simple, centralised structures; fast-changing markets often need flexible, decentralised and team-based designs.
• Technology and workflow: Mass production, IT-intensive work or service delivery each demand different departmentalisation (by process, product, customer or region).
• Size and geographical spread: Large, multi-location organisations usually need more layers, divisions and formal systems than a small local firm.
• Management philosophy: Leaders who value participation and empowerment push for decentralisation, wider spans of control and fewer levels.
• Nature of workforce: Highly skilled professionals may be organised into project or matrix structures; routine work may fit functional setups.

Real example

A retail chain that grew from 3 to 60 stores realised that the founder could no longer approve every decision. They moved from a very centralised, founder-centric structure to a regional setup: regional managers with authority over inventory, staff scheduling and local promotions, while finance and IT remained central. This change in structure matched their new scale and improved responsiveness to local customers.

Question 5. Communication channels in organisations and how effective they are

Formal and informal channels

Every organisation is criss-crossed by communication routes – some officially designed, some spontaneously created. Formal channels follow the organisation chart; informal ones cut across levels and departments (the “grapevine”).

Main formal channels

• Downward communication: From higher levels to lower levels – instructions, policies, feedback on performance. Example: a CEO’s email announcing a new strategy to all employees.
• Upward communication: From subordinates to superiors – reports, suggestions, complaints. Example: monthly sales reports, employee surveys, escalation emails.
• Horizontal (lateral) communication: Between people at the same level in different departments – for coordination and problem-solving. Example: marketing and production managers discussing launch quantities.
• Diagonal communication: Between different levels and different departments – for expertise or quick clarification. Example: a project engineer emailing the finance manager directly about budget coding.
• External communication: With customers, suppliers, regulators – through letters, emails, portals, meetings, social media etc.

Informal channels (the grapevine)

Informal networks arise from friendships and social groups. They spread news (and rumours) very fast and often bypass the hierarchy. Used wisely, they help managers sense employee mood, clarify doubts and correct misinformation quickly.

Effectiveness – what actually works

• Downward: Effective when messages are clear, not overloaded with jargon, and supported by opportunities for questioning (town halls, Q&A sessions).
• Upward: Works well when managers genuinely listen, don’t punish bad news, and act on suggestions. Otherwise people stop speaking up.
• Horizontal/diagonal: Crucial for fast problem solving – cross-functional WhatsApp groups or Slack channels are common real-life tools.
• Informal: Very fast and emotionally powerful; needs monitoring so that rumours are corrected with accurate official information.

Concrete example

In one manufacturing firm, an accident happened on the shop floor. The formal channel (incident report to safety head) was slow, but within minutes the grapevine had already exaggerated it as “major plant shutdown.” The operations manager immediately used a downward channel – a short briefing to all shifts and a notice on the intranet – to clarify facts and corrective steps. Using both formal and informal routes together helped restore trust and avoid panic.

Question 6. Organisational culture – why it matters and what great cultures look like

Why organisational culture is important

Organisational culture is the shared way of thinking and behaving in a company – “how we do things around here.” It includes values, norms, beliefs, symbols and everyday practices. A strong, positive culture:

• Guides decisions when rules are not clear.
• Shapes how employees treat each other and customers.
• Attracts and retains people who fit those values.
• Supports strategy – for example, an innovation-oriented culture fuels a differentiation strategy.

Traits of a great organisational culture

• Clear values and purpose: People know why the organisation exists and what it stands for.
• Alignment: Individual goals and rewards are linked to organisational values and objectives.
• People orientation: Respect, fairness and concern for employees’ growth and well-being.
• Team orientation: Collaboration is encouraged over silos; success is celebrated collectively.
• Innovation and learning: Reasonable risk-taking is supported; mistakes are treated as learning opportunities, not just reasons for blame.
• Ethical behaviour: Honesty and integrity are non-negotiable, even when targets are tough.

Building a sustainable culture – contributing factors

• Top management behaviour: Leaders’ actions (not speeches) send the strongest cultural signals.
• HR systems: Hiring, promotion, rewards and performance management must reward people who live the desired values.
• Stories, rituals and symbols: Onboarding stories, annual rituals (e.g., “customer day”), recognition events and visible symbols (open office vs cabins) reinforce culture.
• Consistent policies: Rules and processes should support, not contradict, the desired behaviours (for example, flexible policies in a trust-based culture).
• Continuous reinforcement: Culture is not a one-time project; it needs ongoing communication, feedback and role-modeling.

Example from practice

A mid-sized IT company wanted a “learning culture.” Instead of just putting posters, it set aside paid learning hours each week, rewarded employees who shared knowledge through internal webinars, and made “learning contribution” a formal part of performance appraisal. Over time, people began to proudly talk about courses they finished or tools they mastered, and knowledge-sharing became a norm – that is a sustainable cultural shift.

Question 7. Resistance to change and strategies to handle it

Why people and organisations resist change

Change is unavoidable, but it is also uncomfortable. Your material explains that resistance can come from both organisational issues and individual or group concerns. Common reasons include:

• Uncertainty and fear of the unknown: People worry about job security, status, workload or whether they can cope with new expectations.
• Loss of control: Change often feels “done to” employees, reducing their sense of autonomy.
• Perceived loss (face, competence, benefits): New processes may make old skills less valuable; some fear looking incompetent.
• Change fatigue and timing issues: Too many changes too fast lead to cynicism – “this will also pass.”
• Poor communication and lack of trust: Rumours fill the gap when leadership does not communicate clearly and early.
• Group pressures: Strong informal groups may resist to protect their routines, power or identity.

Strategies to overcome resistance

• Normative–re-educative strategy: Work on attitudes and values through workshops, discussions and role-modeling so that people genuinely see the change as desirable.
• Rational–empirical strategy: Explain the logic, data and personal benefits of change – “what’s in it for me” – using examples, pilots and success stories.
• Power–coercive strategy: When necessary, use formal authority, policies or deadlines (e.g., legal compliance changes), while still trying to be fair.
• Action-centred strategy: Solve real problems collaboratively; involve employees in diagnosing issues and designing solutions, so they own the change.
• Support and training: Provide coaching, skill-building and resources so people feel capable in the new environment.
• Continuous communication: Two-way communication – FAQs, meetings, feedback channels – reduces anxiety and surfaces genuine concerns.

Real-world scenario

When a bank introduced a new core banking system, many senior employees resisted, fearing technology and increased transparency. Management created “change champions” in each branch, ran hands-on labs, allowed parallel running of old and new systems for a short period, and publicly recognised staff who adapted quickly. Within a few months, most employees were comfortable, and those initially skeptical became advocates because they experienced easier processes and fewer errors.

Question 8. Controlling – why it is vital, how it works and what makes it effective

Why the control function is important

Control is the management function that checks whether actual performance matches planned goals and, if not, triggers corrective action. It closes the loop of planning, organising and leading by ensuring that results stay on track. Its importance lies in:

• Detecting deviations early so they don’t become crises.
• Helping managers learn from mistakes and improve future plans.
• Ensuring responsible use of scarce resources – money, time, people.
• Giving confidence to stakeholders (owners, lenders, regulators) that the organisation is under control.

The basic control process

• 1. Set standards: Define measurable targets (sales numbers, defect rates, response times, cost limits, satisfaction scores, etc.).
• 2. Measure actual performance: Collect data through reports, dashboards, audits, observations or customer feedback.
• 3. Compare performance with standards: Identify gaps – both favourable and unfavourable variances.
• 4. Take corrective action: Remove causes of variance – change processes, provide training, revise targets, adjust resources, or sometimes, modify the plan itself.
• 5. Feedback: Use information from results to refine future standards and methods; this makes control a continuous, forward-looking cycle.

Essentials of a good control system

• Relevance: Controls should match the nature of the unit – what works in manufacturing (defect rates) may differ from services (customer wait time).
• Flexibility: Standards and methods must be adjustable when the environment or strategy changes.
• Timeliness: Information should reach decision-makers quickly enough that action is still useful.
• Focus on key points: It is impossible to control everything; attention should be on critical success areas.
• Clarity and simplicity: People who use the system must understand it; overly complex controls are ignored.
• Cost–benefit balance: The cost of collecting and analysing control information should not exceed the value of the decisions it enables.

Example from day-to-day operations

Take a small online store. The owner sets monthly sales and return-rate targets (standards), checks website analytics and order reports weekly (measurement), compares them with targets (comparison) and, if returns are high, analyses reasons – poor packaging, wrong descriptions, or courier issues (corrective action). She then improves product descriptions and trains packers, and keeps monitoring (feedback). Over time, returns fall and profits improve – a simple but very real demonstration of the control process working well.