IMTS DBA (Management function and behaoviour) by IMTS INSTITUTE

I ns t i t ut eofManage me nt & Te c hni c alSt udi e s

MANAGEMENT FUNCTI ON ANDBEHAVI OUR 500

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DBA-MANAGEMENT FUNCTIONS AND BEHAVIOUR

MANAGEMENT FUNCTIONS AND BEHAVIOUR

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CONTENTS

UNIT-1

MEANING, NATURE

01-20

AND SCOPE OF MANAGEMENT

UNIT-2

PLANNING

21-34

UNIT-3

LEADERSHIP

35-49

UNIT-4

DECISION MAKING

50-71

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MANAGEMENT FUNCTIONS AND BEHAVIOUR

UNIT - I MEANING, NATURE AND SCOPE OF MANAGEMENT DEFINITION OF MANAGEMENT “Management” is a wide term. It carries different meanings depending on the context in which it is used. It is variously described as an “activity”, a “process”, and a “group of people” vested with the authority to make decisions. Some important definitions Louis Allen

“Management is what a manager does”.

Henry Fayol

To manage is “to forecast and plan, to organize, to command to coordinate, and to control”.

John.F.Mee Management is the “art of securing maximum results with a minimum of effort so as to secure maximum prosperity for the employer and employee, and give the public the best possible service”. Koontz and O’Donnel Management is the “Creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively toward the attainment of group goals. It is the art of getting the work done through and with people in formally organized groups”. Summing Up Management refers to all those activities which are concerned with (a) formulation of objectives; plans and policies of the collective enterprise; (b) assembling men, money, materials, machines and methods for their accomplishment; (c) directing and motivating the men at work; (d) coordinating the physical and human resources; (e) supervising and controlling performance; and (f) securing maximum satisfaction for both employer and employee and providing the public with the best possible services MEANING OF MANAGEMENT 1. Management as an activity Inter-personal role-working with and through people. Management is basically concerned with getting things done with and through other people. The ultimate responsibility of accomplishment of the organizational objectives belongs to management. This entails the performance of several tasks, such as, production of goods and services, marketing, financing, personnel administration, security and so on. Understandably, these tasks cannot be performed by a single individual or a small group of individuals. Others have necessarily to be involved in the carring out of these tasks.

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MANAGEMENT FUNCTIONS AND BEHAVIOUR

The others, whose involvement is vital to the accomplishment management goals, will include the personnel working in the organization self and outsiders such as customers, suppliers, creditors, trade union leaders, Government officials, and so on. Inside the organization, management is concerned with creating a suitable environment such that the personnel working in it may be enabled to carry out production, marketing and sundry other activities. Employees of an organization are its supreme asset and they can perform only when management provides them effective assistance, guidance and motivation.

This will necessitate

creation of a suitable technological and socio-psychological environment within the organization. Suitable technological environment will promote job maturity among the workers such that they are able to accomplish their jobs with maximum efficiency. Suitable socio-psychological environment will promote psychological maturity among them such that they are keenly motivated and willingly involved with their jobs. Decision making role use and control of resources. Management is vested with authority to use and control all organizational resources including employees of the organization. These resources enable management to perform more and better work as compared to those who do not have access to such resources. But availability of resources creates both an obligation and a risk. The obligation is to make the most efficient use of these resources so as to justify oneâ&#x20AC;&#x2122;s existence in a society which is every afficted with scarcity of resources. The risk is that since management has necessarily to depend on others for the accomplishment of its goals, it may not be able to use its resources with the desired efficiency, such that it may not be able to survice long enough.

At any point of time, management will be hard put to allocate its resources between alternative goals and courses of action. Allocation of resources for the pursuit of any particular goal may mean giving up or slowing down as regards other goals which may be equality desirable. However, in an atmosphere of general scarcity, this cannot be avoided and management has to take decisions so as to ensure maximum utilization of the available resources.

Communication â&#x20AC;&#x201C; Informational role. The management seeks and receives a wide variety of information from inside and outside the organization to understand the internal and external environment. It analyses and interprets this information and transmits it to the people inside and outside the organization in the shape of plans, policies actions, results, values, etc.

2. Management as a process A process means a systematic way of doing things. Management is described as a process because all managers, irrespective of their individual abilities and aptitudes, engage themselves in inter-related activities with a view to accomplishment of their desired goals. They convert diverse resources of people, machines materials, money, time and space into a useful productive enterprise. Integration of unrelated resources into a total system of objective accomplishment is referred to as that

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process of management which comprises planning, organizing, directing, controlling and coordinating of the organizational resources.

Planning

Controlling

Organising Men Money Machines Materials

Coordinating

Methods

Directing

Process of Management Planning management is concerned with planning of the goals, to be achieved and the ways and means of achieving them. In this sense, planning involves thinking about the goals and the actions in advance. Planning does not mean building castles in the air. It is a rational activity based on the capacity and capability of organizational resources, and how they are to be harnessed for the purpose of accomplishment of the stated goals.

Organising : it is concerned with marshalling the human and other resources of the organization for the purpose of accomplishment of the stated goals. An organization may have plenty of resources and yet it may not be able to use them effectively so as to accomplish its goals due to lack of proper organization. Thus, the success of any organization depends on how well it can coordinate the various resources at its disposal.

Directing : It is concerned with influencing the workers behaviour at various work â&#x20AC;&#x201C; centres with a view to getting them to perform the necessary tasks. environment is essential to direction.

Establishment of a proper work

Workers will perform only when they are well adjusted

technologically, socially and psychologically.

Also, they should have the benefit of effective

leadership from management which inspires them to realize organizational goals with a view to realize their individual goals ie., a decent remuneration, job security, status and opportunities for advancement in career. While planning and organizing represent abstract aspects of the management process, directing is quire tangible and concrete as it involves working with and through the people.

Controlling It is concerned with ensuring that efforts of the members of the organization are in fact in the direction of accomplishment of the stated goals. The controlling function of the management process has three aspects, namely, (a) establishment of standards of performance; (b) measurement of the actual performance against the established standards; and (c) initiation of necessary action to correct wherever the performance is not as per the established standards.

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The controlling function enables management to ensure that the organization as a whole moves in the right direction and does not deviate from the established standards.

Infact, the controlling function also has certain elements of the planning, function, because it involves not only establishment of standards but also modification or even alteration of the plans in the light of measurement of actual performance. Sometimes such modification or alteration may also have to be made in the organization and direction functions.

Coordination The tasks or activities of an organization are classified on the basis of their similarity. They are divided among different individuals and departments to achieve the benefits of specialization by way of increased productivity and efficiency. However, division of specialized work-activities among individuals and departments also requires an effective mechanism to ensure that the work â&#x20AC;&#x201C; activities are all integrated and aimed at achievement of the overall organizational objectives.

3. Management as an academic discipline Practice of management has an ancient origin. As human beings realized the need and importance of working in groups, the management process ie., acquiring and combining the necessary resources to achieve the group goals also came into existence. However, development of management as an academic discipline is a recent phenomenon.

A discipline may be defined as a branch of knowledge or subject of instructions. As a discipline, management refers to a field of study of the principles and practice of management. Attempts to have develop the principles and theories of management are relatively recent. However, since management essentially deals with human beings, there can be no verified general theory or set of laws for management that may be applied to all situations.

That explains the existence of several approaches to management, namely classical, behavioural, management science, systems and contingency approaches.

An importance point to note is that through management is referred to as a separate discipline, it has drawn knowledge and concepts from several disciplines, such as, sociology, psychology, anthropology, economics, political science, history, operational research, ecology, and so on.

4. Management as a group It should be remembered that management is only an index, as such without physical existence. Like science or government, it is an abstraction. But people who carry out management

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activities and functions are not abstractions. They are human beings endowed with ability to lead and motivate and to bring out the hidden capabilities.

The management of a limited company is the Board of directors, consisting of both executive and non-executive directors. The executive directors assist in formulating policies with the other members of the board, but they also have day-to-day responsibility for efficient management of the affairs of the company. They do so with the help of their subordinates who are called functional managers such as production manager, sales manager, personnel manager and so on. The functional managers are assigned specific duties and are delegated necessary authority to carry out their duties. The functional managers on their part have their own subordinates who are assigned duties of specific areas or functions, and who report to their respective functional managers.

It may be said that all those who direct the work of others are part of management. Btu there may also be some managers who may not direct the work of others and yet be a part of management. These people are staff managers such as quality control manager, personnel manager, finance manager, and so on.

NATURE OF MANAGEMENT Though management was practiced ever since human being realized the need and importance of working in groups, its development as a formal body of knowledge is relatively of a recent origin. Over the yeas, the study and application of management techniques in the organizations has transformed the nature of management. The nature of modern management may be described as follows:

1. A Universal Process Management involves the coordination of human and material resources toward accomplishment of organizational objectives. Basically, it is mental work, concerned with thinking, feeling and intuiting.

Wherever there is human activity â&#x20AC;&#x201C; whether individual or joint there is management. Management of a family requires the head of the family to identify objectives, assemble the necessary resources to achieve those objectives, supervise each family memberâ&#x20AC;&#x2122;s performance and exercise control to check and correct and deviation form the planned path. Almost the same functions have to be performed to manage the affairs of any collective enterprise. The basic characteristics of management activity are the same whether the organization to be managed is a family, a club, a trade union, a trust, a municipality, a business concern, or the government variations in approach and style may be there but management activity is basically the same everywhere.

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As Socrates has put it, â&#x20AC;&#x153;over whatever a man may preside, he will be a good president if he known what he needs and is able to provide it, whether he has the direction of a chorus, a family a city or an armyâ&#x20AC;?.

2. Purposive or goal-directed Apparently, the objectives should to be accomplished are those of the organization. However, the fact is that the organizational objectives are determined by the people who create the organization and control and manage its affairs. Based on the value system and socio-cultural background of the management, as also environmental constraints, organizational goals may be in the areas of (a) profitability; (b) market standing;

(c)

productivity;

(d) innovation; (e) physical and financial resources; (f) managerial performance and development (g) workersâ&#x20AC;&#x2122; performance and attitude; and (h) social responsibility. Pursuit of organizational objectives requires management to control performance by human and material resources so as to ensure that it is good enough or that something is being done to improve it. This involves setting of standards, measuring performance against standards, decision-making as to what level of performance is satisfactory and taking appropriate action to correct deviations from the standards.

3. An abstraction Management is only a word, an idea. It is non existent. It is only an abstraction, just as science or government is an abstraction. It is concerned with the effect of management, rather than management itself.

However, the people in charge of management of an organization who are called managers, are not abstractions. They are human beings, rather a special kind of human beings who have the ability to lead and motivate other human beings and discover and put to good use their latent capacities.

They are the catalytic agents who convert the human and material resources of an organization into an effective system of objective - accomplishment.

4. Multi-disciplinary Though management has emerged as an essential and district institution to integrate human and material resources of an organization with a view to attainment of stated goals, it did not receive concerted attention till the twentieth century, accordingly, it would be too much to expect a welldeveloped body of knowledge of this fledgling discipline.

However, during a short time, important contributions have been made to the development of management theory and practice, such that it has acquired the attributes of a separate discipline.

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However, since management is studied in the context of organizations of diverse characteristics and objectives, its theory has to be broadâ&#x20AC;&#x201C;based, comprising many aspects of relevant disciplines, such as sociology, psychology, anthropology, economics, political science, philosophy and mathematics.

It is true that management does not draw on all these discipline to the same degree, but it has liberally assimilated such areas of these disciplines which are relevant to the organizations to be managed.

Thus, researches in various disciplines provide a theoretical base for understanding

management. Experience gained in management practice also goes to modify or redefine management theory.

5. Dynamic Principles Practitioners of management were the first to formulate the principles of management based on their own experience. They made important contributions to the development of managerial theory and practice. People engaged in the work of other disciplines have also concentrated attention on the problems of organizations in society. And have contributed to development of management theory.

However, the principles of management are not rigid. They are flexible and liable to change with any significant change in the environment. For example, there was a time when management theorists believed that workers would work only when they were subjected to the fear of wage-cuts or dismissal.

However over the years, researchers have found that treating workers with due

consideration could also motivate them to put in greater effort.

6. Relative principles The principles of management cannot be blindly applied to all situations. Every person or organization has certain features which may not be found in others. This may be due to time, place, socio-cultural factors, and so on. Thus, while applications of a particular principle in one situation may produce the desired result, in a different situation it may throw up an altogether opposite outcome.

7. Management as a system of authority Management is concerned with performance in the pursuit of organizational objectives. The performance of the organization as a whole will determine its survival in society. The performance of a department will determine its survival within the organisation. The performance of individuals will determine their survival and advancement.

To ensure that performance at all levels is at a satisfactory level, management is vested with authority to plan, organize, direct, control and coordinate the activities of others. This implies that managers hold positions which are superior in status to their subordinates in the top positions have greater authority than those below. The subordinate in the hierarchy of authority have to comply with the decisions of their superiors, or else leave the organization.

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Managerial authority should be exercised properly and correctly. This requires well-defined lines of command and delegation of suitable authority and assignment of responsibility at all levels of decision-making. Unless there is proper balance between authority and responsibility at each level of decision – making, the organization may not succeed he the task of accomplishment of its objectives.

The hierarchy of authority is often blamed for dominating the liberty of individuals, and stifling creativity and initiative. However, since an organisation’s survival depends on the level of its performance, it has little choice but to vest management with authority to secure satisfactory levels of performance from others in the organization. 8. Management : A Science or an art? There are different view points as to whether management should be regarded as a science or an art. The fact of the matter is that management is both an art and a science.

9. Management : Whether a Profession? There are different viewpoints on whether management has achieved the status of profession.

SCOPE OF MANAGEMENT Although it is difficult to precisely define the scope of management, yet the following may be included in it:

Subject matter of Management. Planning, Organisation, Direction, Co-ordination and control form the subject- matter of management.

Functional Areas of Management. Functional areas of management include: ♦

Financial Management-, which includes forecasting cost control, management accounting, budgetary control, statistical control, financial planning and management of earnings.

♦

Personal Management-, which includes recruitment , training, transfer, promotion, demotion, retirement, termination, labour- welfare and social security, industrial relations, etc.

♦

Purchasing Management; which includes inviting tenders for raw materials placing orders, entering into contracts, material controls etc.

♦

Production Management; which includes production planning, production control techniques, quality control and inspection, time and motion studies, etc

♦

Maintenance Management-, which relates to proper care and maintenance of the buildings plant machinery, etc.

♦

Transport Management; which includes packing, ware housing, transportation by rail, road, air etc.

♦

Distribution Management ; which includes marketing, market- research, price –

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determination, market- risk and their –determination , advertisement, publicity, sales promotion, etc ♦

Office Management; which includes the proper lay out, staffing and equipment of the office.

♦ 3.

Development Management; which relates to experimentation, research, etc.

Management is an inter-disciplinary approach. For the correct application of the management principles study of commerce, economics, sociology, psychology and mathematics is very essential.

The principles of management are of universal application.

Three essentials of management are: Scientific method, Human relations, and Quantitative technique.

6. Modern management is an agent of change. The techniques of management can be improved by proper research and development.

SCHOOLS OF MANAGEMENT THOUGHT Introduction Management as a science was developed only during the beginning of this century. It is an accepted fact that F.W. Taylor, considered to be that “ Father of Management” nurtured this subject. After him number of management writers came and gave different approaches to management. Each approach had something to offer differently on management. Hence below we find a discussion.

1. Scientific Management school : Taylor led this group of management thinkers. His book ‘ the principles of scientific management, published in 1911, became the basis for scientific approach to management. He gave three reasons for writing the book : 1.

To point out through simple examples, the great loss the country is suffering through inefficiency in almost all its daily acts.

To try to convince the readers that the cure lies in systematic management rather than searching your unusual men.

To prove that the best management is a true science based on clearly defined laws, rules and principles and to show that the principles of scientific management are applicable for all forms of human activities.

The Scientific school advocates the following : 1.

An inquisitive mind that does not accept the prevalent practices as necessarily correct.

The jobs performed by rule of thumb method must be replaced by rationality and objectivity.

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Casual and intuitional judgments to be replaced by decisions based on facts and objectives methodology.

Fredrick Taylor offered four principles as basis for scientific management. These were : 1.

Every job should be broken down into elements and a scientific method to perform each element should be established .

Workers should be scientifically selected with right attitudes for the job and ability and then properly trained to perform the work.

Management should cooperate with workers to ensure that all work is done in accordance with the scientific principles.

Scientific distribution of work and responsibility between workers and the managers. Management should design the work, set up and supervise the work, and the workers are free to perform the work.

Some of the other contributors to this approach were : Henry L. Gantt ( 1861-1919 ) , Frank Gilbreth (1868-1924) and Lillian Gilbreth (1878-1972). While Taylor emphasized organization, Gant insisted the importance of human element in productivity and approached the concept of motivation, Gillbreths as husband and wife team were primarily responsible for analysis of time and motion study of workers, thus improving upon time and motion elements by eliminating, unnecessary motion. This study laid foundations for areas of job simplifications work standards and incentive wage plans.

This approach generally leads to the following specific applications : 1.

Maximum utility of efforts thus eliminating waste.

More emphasis on fitting workers to particular tasks and training them further to best utilize abilities.

Greater specialization of activities , with proper design of jobs, specification of methods and set time and motion standards.

Establishment of standards of performance as average output and maximum output per capital.

The role of compensation and other incentives for increase in productivity.

2. FUNCTIONAL OR PROCESS APPROACH : This approach is based upon Henry Fayol (1841-1924) and it emphasizes the breaking of the complex management process into separate interdependent areas of responsibility or functions. Fayol believed that the management process was a teachable process and scientific methods could be applied to top administrative management. He devided the administrative activities into six groups, all of which were closely dependent on one another. These six areas are :

Technical Operations : This is concerned with producing and manufacturing products.

Commercial Operations : This areas deals in purchasing raw materials for the products and selling the finished products.

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Financial operations : This involves acquiring capital and allocating it to various functions and keeping an overview control of the flow of capital.

Security operations : This involves taking steps for the protection and safety of goods and people.

Accounting operations : This area covers all accounting aspects of the organization, including recording and taking stock of costs, profits, assets, preparing balance sheets and compiling accounting statistics.

Managerial operations : These managerial functions were Fayol’s primary concern and he defined these operations in terms of five functions. These are planning organizing, command, coordination and control.

Fayol also proposed 14 principles of administration which he believed, would be most often applied. 3. HUMAN RELATIONS APPORACH : This school of thought is primarily based upon Elton Mayo (1880-1949) and his Hawthorne experiments. Hawthorne studies were conducted to determine the effect of between physical facilities on worker output.

These studies showed that better physical environment on increased economic benefits in itself were not sufficient motivators in increasing productivity. In effect the emphasis shifted to psychological and social forces, in addition to economic forces. Mayo discovered that when workers are given special attention by the management, the productivity is likely to increase irrespective of actual changes in the working conditions.

Central to this approach was an increased understanding of the individual workers emphasis on motivation, needs, interpersonal relationships and group dymanics. These experiments suggested that an office of a factory is not only a work place but also a social environment in which the employees interact with each other. This gave rise to the concept of “ Social man” whose interaction with others would determine the quality and quantity of the work produced. This school concentrated on the “people part of management and results on the accomplish objectives ‘ People should understand and people. This school is a development from the application of the behavioural sciences especially psychology and social psychology to management.

4. BEHAVIOURAL APPROACH Behavioral approach is an extension of the human relations school advanced by Abraham Maslow, who presented a theory of individual needs. The basic aim of this approach is to increase the organizational effectiveness by increasing the effectiveness of its human resources, which could be achieved by properly taking care of human needs. The human needs could be physiological or psychological . According to maslow, these needs fall into a hierarchy. At the bottom of this hierarchy are the lower level needs such as physical and safety needs. At the topare higher level needs such as

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need for respect and self-fulfillment. In general, the lower level needs such as need for respect and higher level needs arise. Being aware of these needs able a manager to use different methods to motivate workers . This is important due to complexict of manâ&#x20AC;&#x2122;s nature. Different people will react differently to the same situation, or their reactions may be similar to different situations. Hence the management must be aware of these differences and react accordingly.

5. QUANTITIATIVE APPROACH : This approach emphasis the use of mathematical models in solving many complex management problems. These quantitative tools and methodologies, known as operations research techniques are designed to aid in decision making relating to operations and production. This generally the following four steps.

A mathematical model is constructed with variables reflecting the important factors in the situation to be analysed.

The decision rules are established and some standards are set for the purpose of comparing the relative merits of possible courses of actions.

The empirical data is gathered which would relate to the parameters in the models.

The mathematical calculations are execited so as to find a course of action that will maximize the criterion functions.

These operational research techniques are extensively used in many fields some of these are 1.

Capital budgeting

production scheduling

planning for manpower development programmes

Inventory control

Transportation and aircraft scheduling

Resource allocation

Queuing theory or waiting line and services problems

Competitive problems and problems of game theory.

6. SYSTEMS APPROACH ; A system is a collection of parts or subsystems that operate interpedently to achieve the goal of the entire system. It sees the whole system rather than examining separate variable of the organization. The system analysis study management by putting its parts together, and assuming that the whole is greater than the sum of its parts. Also a study of separate parts of the system cannot give a correct picture of the whole system.

A management system or an organizational system constitutes a relationship between parts of its system, but it also depends upon the outside environment for feedback and resources.

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7. THE DECISION THEORY SCHOOL : The main approach of this school is on managerial decisions. Which is said to be the real job of a manager. The approach to decision making is the selection form among possible alternatives of a course of action. Most of the content, of this school is heavily oriented to model construction and mathematics. As such economic problems and analysis like utility maximization, indifference curves, marginal utility and economic behaviour under risks and uncertainties are covered under this area.

SCIENTIFIC MANAGEMENT MOVEMENT

Introduction Meaning of Scientific Management The term scientific management was coined by Louis Demfitz Brandies in 1910. ‘Scientific Management’, also know as Taylorism, is the science of discovering the most efficient method of performing any job. It involves the systematic and scientific investigation of all the facts and elements concerned with the work being managed. For this purpose scientific management aims at developing and using scientific techniques and methods of work. The main aim of scientific management is to secure higher productivity by improving organizational efficiency.

According to Taylor, Scientific Management means 1.

Science, not rule of thumb

Harmony, not discord

Co-operation, not individualism

Maximum output, in place of restricted output.

The development of each man to his greatest efficiency and prosperity.

Taylor’s

scientific

management

concerned

with

three

basic

themes

(i) techniques and mechanisms (such as time and motion studies, the use of stop-watch slide rule etc). (ii) underlying principles, and (iii) the fundamental philosophy.

Core Principles of Scientific Management Taylor developed the following core principles of scientific management which embody the there three basic themes mentioned above:

The development of a science of work to replace the old rule of thumb method by which workmen operated. Taylor claimed that there was “one best way” to perform almost any task. He believed that intensive, empirical analyses of work processes at the level of the industrial shop and the individual worker would yield the “one best way” to design and execute tasks. He concentrated on the most efficient methods for performing tasks such as time and motion

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studies. The purpose of time-and-motion studies is to reduce the wastage of time in producing things. The other mechanisms of scientific management include standardization of methods, use of time saving devices, instruction cards for workmen, establishment of a separate planning department and differential piece-rate system of wages.

Scientific selection and progressive development of the worker : training to be ‘first-class’ at some task. It was management’s responsibility to implement appropriate selection and training systems and to see to it that the worker’s intellectual, psychological and physical traits matched the requirements of these jobs.

Bringing together the science of work and the scientifically selected and trained worker’s for best results. The application of efficient techniques of work by the worker would lead to increased productivity and consequently combine higher profits for the management and higher income for those who worker hard. This, therefore, would be beneficial for both the management and the workers. This common economic reward is what is known as the mutuality of interests.

Equal division of work and responsibility between management and workers.

The

management is responsible for task – planning, and designing work methods, work processes and work – flow. Workers are responsible for task implementation. To taylor, management is a distinct activity. He made it clear that management must plan ahead and organize tasks efficiently.

The management should establish rules and formula which would replace the

judgement of the worker. Thus, taylor argued for a management group or cadre serving as the intelligence or brains of the operation.

Taylor believed ardently in the task specialization.

According to waldo, scientific

management “views administration as a technical problem concerned basically with the division of labour and specialization of functions”. In Taylor’s thinking, every task whether of worker or manager, becomes discrete and specailised. In its application to management, he described this as “functional management or foremanship”. According to this concept, each worker receives orders from eight narrowly specialized supervisors. Each supervisor is in charge of a technical aspect of the individual’s work. He thus suggested the system of eight functional foremen guiding the functioning of a worker.

According to Taylor, workers are primarily motivated by economic incentives to make more money. He assumed that people are rational beings who would produce more to earn more. For this purpose, he placed emphasis on ‘piecerate’ pay systems, in which the worker would be payed according to how much be or she produced. Fulfilling optimum goals would earn higher wages; failure to do so would result in loss of earning. In Taylor’s thinking, piece-rate system, therefore, would sufficiently motivate a worker to work hard and to earn more.

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Taylor also recommended developing effective sanctions against workers who failed to achieve the tasks entrusted to them.

Taylor believed in one important principle above all, that “the principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity of each employee”. To this end he preached that management and workers were interdependent and relied on each other to achieve the common goal of higher prosperity. Friendly co-operation between management and workers would eliminate almost all causes of conflict between them and achieve harmony. Taylor urged a complete ‘mental revolution’ in the attitudes of managers and workers as to their duties, towards their fellow workers and towards all of their problems. Without this great mental revolution on both sides, scientific management does not exist.

Criticism Taylor’s scientific management has been criticized on various grounds. The most important of them are noted below:

First, Taylor’s scientific management is a micro-level theory for the study of organizations or administration. It paid little attention to the overall administrative structures of organizations. Its focus was rather narrow as its concern was with how management could optimize output at the shop level. This is in contrast with weber’s macro-level bureaucratic theory which is concerned with higher authority levels in the organization.

Secondly, scientific management took what may be called a mechanistic and economic view of human nature. It treated the individual worker as an appendage to a machine, a mere mechanical functioning individual.

It failed to take into account the social and psychological aspects of an

organization and the values held by the workers. It viewed workers as depersonalized resources. The social and psychological factors ignored by Taylor have now assumed great importance.

The

behaviouralists point out that Taylor’s scientific management approach sacrifices the initiative of the worker, individual freedom and the use of his intelligence and responsibility.

Thirdly, scientific management laid emphasis on the mechanical efficiency of an organization and contributed to the idea that good organization is one that efficiently produces what it is intended to do by the management. According to this view, the primary concern is output; what happens to the worker in the process-boredom, alienation, occupational disease – is of secondary concern. Work is to supply products and services, not to develop the full capability of workers.

Fourthly, the scientific management’s assumption that economic incentives were enough to motivate people has proved at best in complete. This incentive system put forward by Taylor has not withstood subsequent tests of its adequacy. It was dealt a severe blow of Elton Mayo’s Hawthorne

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experiments and his human relations approach. Mayo’s investigations established the fact that the emotional attitudes of the worker towards his work and his colleagues was an important factors in securing increase in productivity and efficiency of the organization.

From the preceding discussions it is clear that Taylor’s scientific management left huge gaps to be filled in our understanding of how organizations can be made to function efficiently as well as effectively.

Lastly, Taylor’s scientific management was opposed by managers as well as workers. Managers did not like the substitution of the scientific methods for their own judgement and discretion. Workers opposed the time-study procedures and standardization of all aspects of their performance as they did not like to be treated as machines. Greatest resistance to Taylorism came from the labour leaders who found in it a threat to their role and to the growth of the trade union movement.

HUMAN RELATIONS MANAGEMENT MOVEMENT Classical theorists either ignored and over simplified human factors. Human relation school of management was developed as a result of findings of how throne experiments. It emerged from these researches that productivity, motivation to work and morale are related to social organisation at work and psychological factors and not to physical factors. It also showed that organization is indeed a social system, a system of grapevines, informal status system rituals and mixture of logicals, nonlogical and illogical behaviour. Human behaviour approach This approach is the outcome of the thoughts developed by behaviours scientists who look at the organization as collectivity of people. It is also named as ;human relation’, leadership this brings to bear existing and newly developed theories and method of the relevant social sciences upon the study of human behaviour ranging personality dynamics of individuals at one extremes to the relations of culture at the other. The human relations approaches was born out of reaction to classical approach and during the last four decades, a lot of literature of human relations has developed. The essence of the human relations contributions is contained in two points a) organization situation should be viewed in social terms as well as in economic and technical terms b) the social process of group behaviour can be understood in terms of clinical method analogous to the doctors diagnosis of the human organization. Among human relations approach, there are many contributions more research are being carried on for the first time, an intensive and systematic analysis of human factor in organization was made in the form of how thorne experiments. There will be relatively lengthy discussion of the results and implications of the how thorne studies because of their historical importance to the behavioural approach to the analysis of management problems.

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This school of thought is primarily based upon Elton Mayo (1880-1949) and his Hawthorne experiments. Hawthorne studies were conducted to determine the effect of better Physical facilities on worker output.

These studies showed that better physical environment or increased economic benefits in itself were not sufficient motivators in increasing productivity. In effect the emphasis shifted to psychological and social forces, in addition to economic forces. Mayo discovered that when workers are given special attention by the management, the productivity is likely to increase irrespective of actual changes in the working conditions.

Central to this approach was an increased understanding of the. individual worker's emphasis on motivation, needs, interpersonal relationships and group dynamics. These experiments suggested that an office of a factory is not only a work place but also a social environment in which the employees interact with each other. This gave rise to the concept of " social man" whose interaction with others would determine the quality and quantity of the work produced. This school concentrated on the 'People ' part of management and results on the principles that, where people work together as groups in order to accomplish objectives ' people should understand people'. This school is a development from the application of the behavioural sciences especially psychology and social psychology to management.

HUMAN RELATIONS SCHOOL

Taylor, Fayol and other early management theorists only emphasised t he task of increasing the efficiency of the work place, i.e., the shop floor of the organisation as a whole. In other words, their propositions were mainly task oriented, focussing only on the jobs to be done by subordinates within the formal impersonal setting of the organisation. The complexity of human behaviour within the organsation received little attention. For example, it was assumed that workers always behaved in a rational manner and their primary goal was satisfaction of economic needs. As such, the managers were only required to provide suitable monetary incentives and good working conditions to ensure efficiency.

The assumptions of the Scientific Management and Classical School led to considerable research on the social conditions of work and their consequences on output. The experiments carried out at the Hawthorne plant of the Western Electric Company by the staff of the Harvard Business School constitute an important landmark in the exposition of this thesis. Elton Mayo, FJ. Rocl hlisberger and William J. Dickson may be regarded as the chief exponents of (fie Human Relations School.

While, according to Taylor, workers only worked for money, according to the Human Relations School each worker required group membership. The underlying assumption was that groups

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influence the behaviour, beliefs and attitudes of their members. Thus, productivity could be greatly increased -11 t lie supervisor could effectively handle the work groups within the organisation.

The following are the main principles of the Human Relations School

An organisation is not merely a formal structure of functions in which h production is determined by the official prescription. It is also affected by the social factor. Workers are social beings and their social characteristics will naturally determine their output and efficiency.

Workers are social beings. They tend to create informal groups within the formal organisation. These informal groups determine how their members have to behave in the formal organisation.

There may be different between the goals of the formal organisation and those of the informal groups. There may also be lack of adjustment between workers and the formal organisation. These differences may create a conflict situation.

Leadership of a group goes to a person who identifies rumself with the group objectives. It Toes not always vest in the person who has official authority.

Friendly and attentive supervision of workers is more likely to result in greater productivity, than a supervision which is only concerned with maintaining control and order.

Efficient and effective communication between the management and workers will lead to a better understanding between the- two, thus resulting in improved productivity.

Behavioural approach:

Behavioural approach is an extension of the Human Relations School advanced by Abraham Maslow, who presented a theory of individual needs. The basic aim of this approach is to increase the organisational effectiveness by increasing the effectiveness of its human

properly taking care of

human resources, which could be achieved by properly taking needs. The human needs could be physiological or psychological According to Maslow, these needs fall into a hierarchy- At the bottom of this hierarchy are the lower level needs such as physical and safety needs. At the top are higher level needs such as need for respect and self-fulfillment. In general, the lower level needs must be satisfied before higher level needs arise. Being aware of these needs enables a manager to use different methods to motivate worker. This is important due to complexity of man's nature. Different people will react differently to the same situation, or, their reaction may be similar to different situations. Hence the management must be aware of these differences and react accordingly.

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BEHAVIOURAL SCHOOL

Behavioural School

represents the synthesis of theories and methods of relevant social

sciences focussing on both individual and group behaviour. While the studies concerning individual human behaviour were aimed at making the employees better and more responsible persons, those concerning group behaviour focussed on social psychology or organisational. behaviour. Among the chief exponents of the Behavioural School, are Chester Barnard, Douglas McGregor, Keith Davis and David A. Buchanan.

According to Barnard, "An organisation is a system of consciously coordinated activities or forces of two or more persons. For efficient operations and, in fact, for the very survival of the organisation, a balance between inducements and contributions was essential." By inducements he meant the sum-total of financial and non-financial rewards available to the employees, and by efforts put in by the employees towards acheivements of the

the

organisational goals. Thus, an

organisation could operate efficiently and survive only when a neat balance was struck between the organisational goals and the needs and goals of individuals the working for it. Barnard also expounded what later came to be known as the acceptance theory of authority, i.e., an employee would accept an executive order only when he found it consistent with his own perception of the goals of the organisation and his personal interests and needs.

According to McGregor, managers could hold and practice two beliefs about human behaviour : Theory X and Theory Y.

Theory X, based on the traditional view of management, held out negative assumptions, such as : (i) the average human being has an inherent tendency to shirk work ; (ii) he must therefore be coerced, controlled and directed to secure the desired performances ; and (iii) being unambitious and unenterprising, he avoids responsibility and seeks security above all else.

Theory, Y, based on the principles of participation and a concern for the employee morale, is highly pragmatic as it assumes : (i) that work comes as naturally to a human being as play and rest ; (ii) that coercion and control are not the only means of securing desired performance from the workers and that workers willingly work for the accomplishment of the objects to which they arc committed ; (iii) that workers' commitment to the objectives is dependent on I fie rewards following their accomplishment ; (iv) that the average workers are imaginative, ingenuous and creative ; and (vi) that in the existing realities of industrial life, intellectual potentialities of the average workers are not utilised as they ought to be. Thus, in a nutshell, Theory Y seeks to introduce a qualitative change in the managerial attitudes, in that it advocates large-scale delegation, efforts to make the jobs at lower levels more interesting, free flow of communications within the organisation, and an increase in the level of responsibility on the part of each worker. Above all, it stresses that economic incentives alone are not

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enough to motivate the workers whose productivity is determined by a complex set of psychological needs.

Organisational Behaviour

Pioneers of the Human Relations Movement only focussed on people at work and people in groups, to the exclusion of the organisation of which they were a part, and the environment. This led to the development of the concept of organisational behaviour which represented a more inter-disciplinary and multi dimensional analysis of worker-behaviour.

The distinguishing features of the field of organisational behaviour are (a) a scientific method base for predicting and explaining behaviour and performance ; (b) inter-disciplinary application of behavioural science knowledge in analysing and understanding behaviour and performance ; (c) equal emphasis on a scientific study of individuals, groups and the formal organisation ; (7 contingency orientation, based on the assumption that managerial behaviour must be in tune with the requirements of the situation and the people involved ; and (e) translation of the theories in a language such that the practicing managers may easily understand and apply them.

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UNIT - II PLANNING

NATURE AND IMPORTANCE OF PLANNING A work organization is an open system. Its survival depends on a purposive interaction with its ever-charging environment. It draws its inputs such as capital, labour, equipment material and information from the society, it combines and transforms these inputs into finished output such as goods and services. Consumer acceptance of its outputs will result in financial return to the organization enabling it to resume the cycle. On the other hand, lack of consumer acceptance will force it either to change its inputs or the transformation process or both to make its outputs acceptable to the society or to go out unresponsive to its environment for long.

In the modern world, environmental changes have been mind-boggling both in their pace and intensity. One can easily discern changing social values, increasing competition, new product discoveries, changing social values, increasing competition, new product discoveries, changing customer demands, growing automation, and depleting energy sources. There is also increasing social and political intervention in the working of organizations. Management of an organization is thus required not only to identify the environmental changes but also to exploit them profitably by means of suitable adjustment and adaptation of its inputs and transformation process. Planning provides the key to accomplishment of this objective.

MEANING OF PLANNING : According to Koontz and O’ Donnel , “ Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it, Planning bridges the gap from where we are to where we want to go. It makes to possible for things to occur which would not other wise happen. In the words of the Haimann “ Planning is the function that determines in advances what should be done,. It consists of selecting the enterprise objectives, policies, programmes, procedures and other means of achieving these objectives. In his planning, the manager must decide which of the alternative plans are to be followed and executed. Planning is intellectual in nature. It is mental work. It is looking ahead and preparing for the future.

McFarland describes planning as a concept of easy to identify the following characteristics :

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1. A THINKING PROCESS : Planning is an intellectual exercise. It is concerned with thinking in a creative way as to how the existing combination to resources may be adjusted and adapted to match the emerging opportunities.

Experiences shows that today’s opportunities if they are not discovered and profirably exploited in time, may turn into problems tomorrow. Planning enables the management to make decisions as regards (a) what is to be done : (b) how it is to be done (c) when it is to be done ; and (d) by whom it is to be done. Timely careful thinking today can save the organization from panic in future.

Planning can help an organization to maintain a dynamic equilibrium between the external environment and its own goals, values, and technical organizational and psychosocial sub – systems. It also enables decision – making as regards the problems to be tackled and opportunities to be exploited based on the urgency , importance and solvability of each.

2. FORECASTING V. PLANNING : Forecasting and planning have little in common. Forecasting describles what one expects to happen if not changes are made to eacape that happening. Planning describes what one wants to happen. Forecasting may encourage some people to do some planning, like forecasts of exhaustion of natural energy resources has led some countries to plan for conservation of coal and oil. Even So, forecasting cannot be equated with planning.

It is true that planning is based on assessments, estimates, assumptions and judgments. But these are based on availability of resources and time, taking in view the objectives to be accomplished. Moreover , planning provides for a regular review of performance towards the targeted goals and necessary corrective measures in case of deviations. In the modern context planning has become highly scientific as it is based on quantified data and information.

3. ACCOMPLISHMENT OF GROUP OBJECTIVES : A work organization is an assorted group of widely varied human beings, each with a difference personality, attitudes, learning motivation etc., It is unlikely that these people will work effectively, harmoniously and consistently unless they have a plan which they consider to be their common property.

Planning is essential to any goal – directed activity. It enables people with divergent perceptions and motivations to work together to achieve common goals.

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4. CHOICE BETWEEN ALTERNATIVES : Modern business environment is marked by rapid and sweeping changes. The mix of resources which was worked out to meet business opportunities in the past may no longer be effective in the present. Similarly the present mix of resources may not produce the desired results tomorrow. Planning seeks to adjust and adapt the existing mix of resources to meet the emerging opportunities.

The first choice to be made by management is with regards to objectives of the business, e.g. profitability, growth, consumer satisfaction, man power development, prestige, and so on.

The next choice is in respect of the strategy to be adopted to accomplish the objectives. Then comes the operational part. i.e., determining the time-frame, assignment of tasks and other resources for the accomplishment of the objectives.

5. PERVASIVENESS OF PLANNING : Planning is a basic condition for a goal directed organization. However, it would be wrong to regard planning as an exclusive occupation of the top-level managers only. It is true that top level managers have to devote considerable time and attention to planning for importance of planning by middle and lower level managers with in their areas of activities cannot be minimized.

The various steps in the planning process necessarily involve managers at all levels. The first task is determination of the objectives. This is the prerogative of the owners. The next step is determining how the objectives are to be achieved. This consists in defining the resources which to be developed, the opportunities to be exploited, or the problems to be talked. The last stage is concerned with operational details, namely, assignment of tasks allocation of resources, setting the time frame regular review of performance etc.

In fact, involvement of managers at all levels is essential to the success of planning, people at work are greatly motivated when they are offered involvement in meeting a challenge. Contribution to planning gives people psychological satisfaction and a stake in their own future.

6. FLEXIBILITY Successful running of an organization involves matching of its resources with the opportunities in the business, environment. This calls for a careful composing of the mix of resources consistently with the environmental needs. Only proper planning can enable it to adjust and adapt the resources as desired.

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IMPORTANCE OF PLANNING The increasing pace of environmental changes has increased the need for anticipating the development and planning to meet them. A management that does not identify the emerging situations, nor prepares to meet them, will soon find the survival of the organization threatened from all sides. Like alice in wonderland, management has ever to “run fast” to be even with the turbulent changes.

The following points highlight the importance of planning

1. SELECTION OF “ OPTIUMUM” GOALS : Planning involves rational thinking and decision – making concerning a proposed courses of action. It also implies selection of one course of action and rejection of other possible courses of action.

The selected course of action is naturally the one that promotes the overall organizational goals within the framework of the resources availability and economic , social and political factors.

For the optimization of overall organizational operations, it may some times be necessary to sub optimize ( i.e, to reduce the efficiency of Some departments).

2. TACKLING INCREASING COMPLEXITIES : An organizations is a heterogeneous group of human beings who differ from one another in many respects. It is unlikely that they will work effectively and harmoniously in the interest of the organizations, unless they have a plan in the making of which they have had a share and which they regard as common property. Thus, planning is essential to any goal directed activity

3. MEETING ENVIRONMENTAL CHANGES : Business environment changes more rapidly and sweepingly than can be imagined. Change in social values, increase in competition, new product discoveries, changes in consumer tastes and preferences have each the potential to upset any organization. Management should discern and exploit the emerging situation by adjusting and adapting the inputs and transformation process to suit the environmental changes. Only proper and effective planning can help the management to do so.

4. SAFEGUARD AGAINST BUSINESS FAILURES : Often, business failures are blames on cut throat competition , unpredictability of consumer tastes and preferences, rapid technological changes and adrupt economic and

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political development. However, in many a case, failure of business is caused due to rash and unscientific decision-making, which is a direct result of lack of proper planning.

It is true that planning cannot avert all business failures. But it forces the management to assess and evaluate each emerging business opportunity and problem, and examine the various courses of action to meet it effectively.

5. UNITY OF ACTION : Planning enables the people within an organizations to work effectively and harmoniously for the accomplishement of common goals. It provides them a stake in their own future and thus induces them to do their utmost to meet the challenge.

6. EFFECTIVE COORDINATION AND CONTROL : Planning makes it easily to exercise effective control and coordination. The work to be done, the persons and the departments which have to do it, time-limit within which it is to be completed and the costs to be incurred, are all determined in advances. This facilitates proper and timely measurement of actual performance and it comparison with the planned performance. In case actual performance is not as per the plans, factors responsible for the same can be ascertained. In the absence of planning there will be no scientific standards to measures and evaluate performance.

LIMITATION OF PLANNING Planning is an should be the primary function of management. It sets the frame for organization, direction, control and coordination of activities in any enterprises. However, it suffers from certain limitations . Important among which are as follows :

1. UNCERTAINTY : Planning concern the future and nothing about the future is certain, except that it must be different from the present. Assessment of future can only be in terms of success work, probabilities speculations, assumptions and conjectures.

A manager who sets goals based on planning also runs the risk of failure to achieve them. The goals may be based on scientific analysis or relevant information and facts and yet such analysis cannot be cent per cent correct. Most managers decide no to involve themselves with future, uncertainty ferring the certainty of the present and the past.

2. ACTION â&#x20AC;&#x201C; PACKED ROUTINE Managers are ever preoccupied grappling with the day-to-day problems. This leaves them little time to think and plan about the problems of tomorrow. It is common to be over concerned with the issues at hand which, is left unattended might cause an immediate loss.

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Planning for the future does not appear to have the same urgencies can be conveniently post poned without fear of any loss for the present. James march and Herbert simon have spoken of a “ Gresham’s law” of planning, according to which daily routine drives out planning because the effects of lack of planning will take a long time to be felt.

3. ABSTRACTION : The planning process involves thinking about vague alternatives and concern with “ what if “ questions. Almost every conceivalble thing is included in the realm of possibility. There seems to be nothing hard and fast – just assumptions estimates, speculation and guesswork, which can be tested only when the thing to which they relate actually takes place. This often brings indistortion in planning.

4. RIGIDITY : Planning involves setting or objectives, and determination of the ideals course of action for their implementation. It implies that there will be no deviation form the chosen path.

However, pursuit of vague, thought predetermined goals is against the very concept of business. A business is by nature a dynamic activity which is faced with new opportunities and challenges, any of which may torpedo best laid plans sticking to pre-determined objectives and action plan which had been framed in a different set of circumstances . But this may be quite a time-consuming and costly exercise , particularly where planning is practiced on a wide scale.

4. COSTLY : Planning is an expensive exercise, both in terms of time and moneys. It necessitates the formulation of estimates, collection of necessary information and facts, and a careful analysis and evaluation of the various courses of action so as to decide on the best and the most economical course of action for the enterprises departments.

ORGANISING

Introduction The terms organization has been defined and interpreted differently by different authors.

It is a process of bringing and uniting people of achieve the objectives of the

organization.

It also implies the grouping of the staff achieve the common objectives.

Harimann viewed that “organizing is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them.

In performing the

organizing function the manager defines, departmenalises and assigns so that they can be

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most effectively executed.

Organisation is concerned with the building, developing and

maintaining of a structure of working relationship in order to accomplish the objectives of the enterprises, organization means the determination and assignment of duties of people, and also the establishment and the maintenance of authority relationship among these grouped activities. It is the structural framework within which the various efforts are coordinated and relate to each other”.

Knootaz and O’ Donnell explain that “organizing involves the establishment of an international structure of roles by identifying and listing the activities required to achieve purpose of an enterprise, the grouping of these activities, the assignment of such groups of activities to a manager, the delegation of authority to carry them out and provision for coordination of authority and informational relationships horizontally and vertically in the organization structure. Sometimes all these factors are included in the term ‘organisation structure’. Sometimes they are referred to as ‘managerial authority relationship’.

Basic Factors in Organising Organising involves four basic factors namely the work, the people, the capital and the work place.

1. The work: The work of an organization is decided by the objectives of an organization. The work is split into various components. Organising requires grouping of activities by decision or departments. They are further subdivided into section and jobs.

2. The people Assigning various duties to people is the next important aspects. This job assignment first goes to the members of managerial groups, who in turn delegates work to their subordinates. The individual who is assigned the particular job is answerable for the results of his individual unit of assignment.

3. The capital This involves the capital and material needed to carryout the work assigned to groups and individuals.

4. The work place This denotes the place of work, the physical and psychological working conditions of an organization.

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NEED FOR ORGANISATION 1. To define the role of the individual An individual employed in an enterprise must know his role, position and relationship with other personnel in his department and with others. Organisation becomes necessary so that the persons involved in the enterprise can identify themselves in the enterprise. It is through the organization that one can know his position and role in the unit. He can relate his position with other members of the enterprise.

2. Determination of authority: The assignment of a certain role proposes the granting of certain authority so that performance can be possible. Organisation is necessary to define the authority ie., the rights and powers of men in different positions which would help them to discharge their assigned roles.

3. Fixation of responsibility Each individual is assigned a certain duty organizational structure defined what performance is expected of a member of the unit of the department of the enterprise. Absence or faulty determination of responsibility will lead to irresponsible functions, behaviour and attitudes.

4. Specialisation Modern production and management techniques are based on the idea of specialization which means the performance of different parts of a job by persons specifically suited for them. Organisation is basically required to promote specialization. Efficient and smooth functioning is possible when different elements of a job are performed by experts and their efforts are pooled to attain the desired and product.

5. Coordination Since the pattern of managerials operations is to be based on the division of labour, there arises the need of coordinating the activities of various individuals or that of different departments. They perform diverse, activities and these have to be woven into the main fabric.

6. Proper utilization of human resources The most important thing for an enterprises is to make the best possible use of its human resources. There must not be wastage or misapplication of human efforts. This is of great importance for economy as well as for the achievement of objectives. It can be possible only by suitable organization, which will avoid all bottlenecks â&#x20AC;&#x201C; chances of work being held up and allow smooth flow of performances.

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7. Efficient functioning Efficiency is to be the watch ward of an enterprise. All the factors mentioned above will have a great impact on the efficient functioning of the enterprise. Organisation avoids all duplication in jobs, overlapping and wastage.

It promotes speedy, smooth and efficient

functioning of the enterprise.

BENEFITS OF GOOD ORGANISATION

There are numerous benefits of organizing. Those important include:

1. Clarity of functions in a well defined assignment An effective organization while well defining the assignment of each individual member working within an organization structure, clarifies what particular activities he has to perform within his assignment. This enables him to perform his job devotedly and efficiently infulfillment of his pre-determined goals.

This avoids any chances of misunderstanding, conflict or confusion that arise between individuals over matters concerned with jurisdiction.

2. Establishing Co-operative Working Relationships Organising, while establishing co-operative working relationships â&#x20AC;&#x201C; between different segments of the organization structure, within jobs and positions, between individuals and work groups and the like, promises smoothness efficiency in the working.

Every member knows how he is placed in the organization set-up. There comes a feeling of freedom in working. There is established good relationship between the job and person doing it.

Each person works best with others when he knows, for what he is

responsible, to whom he is responsible and realizes the values of co-operatives relationships with others. With the responsibilities well-defined and made known to the persons and with the practicing of delegation, there comes feeling of freedom.

3. Best use of Human and Physical Resources Organising helps making best use of available human resources an physical resources in an enterprise.

4. Avoidance of Overlapping and Duplication Good organizing avoids overlapping and duplication of works in an enterprise.

5. Communication Rendered Effective

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It is through organizing that communication is rendered easier and more efficient.

6. Balancing of Work loads Organising helps considerably in balancing work loads in an undertaking.

7. Assimilation of Changes Good organization is competent to assimilate changes due to my environmental factors, in the structure.

8. Opening up of promotion avenues Organizing helps opening up promotional avenues useful for executive development. Organisation charts and position, descriptions as provided by organizing points to the position he can reach within the desired qualifications. Organising also tells if any training is needed to reach a superior position.

9. Basis for Appraisal and Rating Organising provides a sound basis for appraisal and rating of individual performance and capabilities. With self-appraisal an individuals is able to judge for himself how he is doing and whether he is coming up to the mark according to his job requirements.

10. Aids, Wage, Compensation and Salary Administration Organising is a sure aid for wage compensation and salary administration. Elements of Organisation Allen has identified the following three elements of organization.

1. Division of labour In order to achieve the organizational goals, it is necessary to identify the work which is essential to achieve the objective. The work so identified is divided and subdivided so that sub-divided component could be entrusted to the person who possesses special competence for performing the task. By doing so, the organization brings in the principles of speclisation and motivation and the element of efficiency by eliminating wastages and overlapping of efforts.

2. Sources of Authority Every individual has to act as a hub in the wheel of organization. The effort of each individual has to bend towards the common objective of the organization, apart from the authority, responsibility, culture, and the consent of the governed superiorâ&#x20AC;&#x2122;s physical strength, intelligence or some other influence.

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3. Relationship In every organizing structure, different types of relationship present a unified efforts for achieving the common objects. Such relationship may administer or operating vertical, horizontal or diagonal, formal or informal. In this process, some may be working at part with another, are expected to posses the equal quantum of authority whereas persons above them are expected to wield greater authority.

Similarly, persons operating below them are

expected to enjoy lower authority. It is due to this hierarchical relationship, persons bind working at different levels to continue their efforts towards the achievement of common goal of the organization.

4. Coordination Although allen has not mentioned coordination as one of the elements of organization, organisationâ&#x20AC;&#x2122;s objectives cannot be achieved without coordination is an on going process whereby a manager develops an integrated, orderly and synchronized pattern of group effort among the subordinates and tries to attain unity of effort in the pursuit of a common purpose. It involves balancing and keeping together the different activities so as to maintain a will-kind aggregate function and ensure that the various activities are smoothly carried out.

THE PROCESS OF ORGANISATION The process of organization may be described as the managerial function. It involves a rational division of work into groups of activities so as to achieve a rational, well coordinated and orderly structure for the accomplishment of goals.

Important steps involved in this

process include:

1. Determination of Objectives This is the first step in building up an organization. This process involves in deciding as to why the proposed organization is to be set up and what will be its nature of work to be accomplished through the organization.

2. Division of Activities Then the total work of the organization is sub-divided into essential activities, e.g the work of an industrial concern may be divided into the major functions like purchasing, marketing, production, finance, personal, advertising and publicity, etc.

3. Grouping of activities The activities that similarly related are grouped into divisions and departments, and the departmental activities are further sub-divided into small groups. Functions like sales,

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production, finance, etc. are made the basis of geographical areas, types of customers, equipments used, processes adopted, etc.

4. Job Assignments In this step, specific job assignments are made to different subordinates in accordance with their specialization and professional experience for ensuring on certainty of job performance.

5. Delegation of authority â&#x20AC;&#x201C; Delegation is the entrustment of responsibility and authority to another and the creation of accountability for performance.

Importance of Organisation 1. Organisation increases managerial efficiency in a number of ways It avoid delay, duplication or confusion in performance and removes friction or rivalry among personnel. By analyzing the enterprise objectives, all pertinent activities are spelled out in order of their importance. These activities in turn are allocated to definite individual as fixed duties. The assignment of fixed duties help to add certainty and promptness in the doing of work without any shirking of responsibilities by subordinates.

2. Organisation ensures an optimum use of human efforts through specialization Because of the detailed job specification, right persons are placed in the right positions on the basis of their knowledge, skill and experience. Men with outstanding abilities are not allowed to waste their time and energy over a minor job. By matching jobs with individuals and vice verse, organization enlists the benefits of both functional and occupational specialization.

3. Organisation places a proportionate and balanced emphasis on various activities By dividing activities into departments, sections and jobs, a greater attention can be focused on more important activities. Money and effort can be spent proportionately with the importance of activities, minor problems are incorporated in routine jobs so as to facilitate their handling at a lower-level. Important and serious problems are reversed for top jobs which are filled by senior-executives for enabling them to concentrate on major issues and challenging situations.

4. It facilitates co-ordination in the enterprise Different departments and sections, positions and jobs, functions and activities are welded together by structural relationships of the organization.

Empire building in any

segment of the enterprise is made difficult by sound organizing.

Common interests and

enterprise objectives are kept at the forefront of each segment or area of the business.

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5. It provides scope for training and developing managers Management personnel are trained to acquire wide and varied experience indiverse activities by their placemen in different jobs through job rotation and thus they are prepared for top jobs which require generalists rather than specialists in a narrow sphere.

6. It helps to consolidate growth and expansion of the enterprise It is the organizing practice that has encouraged the business enterprises to expand their sizes to an ever-increasing level.

With hundreds of employees and extensive

ramifications of operations, giant enterprises are the direct outcome of the organizing function of management. No economic theory, no cult of the colossal could have dared to prescribe such mammoth sizes but for the development organisation practices.

7. Organisation prevents the growth of laggards, wire pullers intriguers or other forms of corrupters: Corruption can only thrive in those enterprises which have failed to set up a sound organization structure. Unsound organization becomes the breeding ground of dishonesty, whether in matter of effort or of money. With the passage of time, however, even a good organisation may be transformed into a bad one unless continual adjustments are made with varying circumstances. 8. It guarantees best use of human and physical resources Because every individual is allotted work according to his skill and ability. This makes sure of coordinated working, which avoids confusion, friction of conflict. It allows greater understanding among individuals.

9. It provides clarify and function Each individual is signed a specific job and clarifies the activities to be performed by him, This enables him to perform his job efficiently to fulfill his predetermined goals.

10. It makes communication effective It is through organizing that communication is recorded easier. Confusions and misunderstanding are avoided.

Theories of Organisation 1. Classical theory : It treats the workers as no better than a machine and lays more emphasis on the formal organization structure based on certain universal principles. It is associated with the names of weber, taylor, fayol, mooney, reiley, urwick and others.

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2. Human relations theory : It looks upon the worker as a whole man, with his feelings, motives, aspirations and the like. It was profounded by Elton mayo, Kurt Lewin and others.

3. Systems theory : It regard the organization as a system, a complex of parts interacting among themselves and with the environment. General systems theory was emphasized by Bertalanffy and Kenneth Boulding.

4. Organisational Theory : It stresses the self-actualising, self-directing and selfcontrolling tendencies of individuals. Its exponts are Renis Likert, Douglas McGregor and Others.

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UNIT-III

LEADERSHIP

MEANING AND SIGNIFICANCE Leadership is too complex a term to be defined in a simple and straight manner. There are many factors involved in successful leadership and it is not possible to identify or measure all of them. The presence of successful leadership can only be felt in terms of the results of group working, i.e., profits, quality of output, employee morale, consumer satisfaction, enterprises images, and so on.

The following definitions refer to different aspects of leadership .

Chester Barnard : Leadership is the “ ability of a superior to influence the behaviour of his subordinates and persuade them to follow a particular course of action”.

Moontz and O’ Dannel “ Leadership is the ability of a manager to induce subordinates to work confidernce and Zeal.

Allen “ Leader is one who guides and directs other people. He must give effective direction and purpose”.

George R. Terry : Leadership is “ the activity of influencing people to strive willingly for mutual objectives “

Rebert C. Appleby : Leadership is “ a means of direction, is the ability of management to induce subordinates to work towards group ideas with confidence and keenness

These definition highlight the significance of leadership in the context of any group activity. Without effective leadership. It is difficult of any enterprises to function effectively. Managers of an enterprises determine the goals to be pursued. They set up an organization which is appropriate for the accomplishment of the stated goals. They develop the control system to monitor and correct the deviations. But holding of a managerial position does not make a person a leader. A manager will be a leader only when the is successful in influencing and motivating his subordinates to work enthusiastically to accomplish the stated goals. It follows, therefore, that an effective manager may not necessarily be a good leader, and even a strong leader may be a weak manager.

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NATURE OF LEADERSHIP Leadership may be viewed variously as (a) a status group ( b) a focal person (C) a function and (d) a process

Leadership as a status group : It refers to a situation where a person acquires leadership by reason of his heredity (as when he is a descendant of a royal family) or election, or appointment to a position.

Leadership as a focal person : According to this view, leadership vests the in people who are traditionally regarded as leaders by virtue of managerial positions held by them, such as in the case of directors, executives, administrators, managers, chiefs etc.,

Leadership as a Function : The leadership function consists is facilitating the achievement of group goals. The person who performs this function is regards as the leader. As a result, while there are several people involved in working towards accomplishment of group goals and many complex factors, including a sheer check, which may affect the outcome, the credit or discredit for success of failure of the collective endavour is attributed to the leader of the group.

Leadership as a process : According to this view , leadership is an interactive process in which leaders and followers exchange influences, i.e., the leader influences the followers by his ideas, direction and support , and the followers influences the leader by their contribution to the achievement of group goals. And because there is a positive balance of influence in favour of the leader, the followers accept his power in the case of an informal group and his authority in the case of a formal group. In this sense, a person can be effective leader only so long as his followers accept his power or authority.

NEED FOR LEADERSHIP An organization needs leadership on a continuous basis. The following reasons highlight the need for leadership .

Imperfect organization structure. It is not possible for any organization structure to provide for all kinds of relationships. This explains the existence of informal groups within the framework of a formal organization. With effective leadership, imperfection of a formal organization structure may be corrected and the formal and informal groups may be made to work in unison.

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Technological , economic and social changes. In the face of rapid technological, economic and social changes the organization is required to effect suitable changes in its operations and style. For example, in the event of a fall in demand, it may discontinues production of certain goods and services or take up production of alternatives goods and services. Only an effective leadership can enable it to meet the challenges posed by environmental factors.

Internal imbalances inspired by growth, As an organization grows in size and complexity, it may develop certain imbalances. For example, increase in organizational activities may lead to increase in the levels of management, thus adding to complexity of the organization structure ,and problems of command, coordination and control of work at all levels. Only an effective leadership can steer the organization though such situations.

Nature of human memberships. Persons working in an enterprises come from different background and have different interests, values beliefs and intellectual and temperamental make-up.

Again, each member is a part of different social groups, e.g. family, neighbourhood group, etc., which are external to the organization and beyond its control. The influence of these groups on the attitudes and behaviour of the individual members may at times create a conflict between individual goals and group interests.

An effective leadership can create a suitable motivational framework which provides for satisfaction of different needs and motives of the organization members as also resolutions of individual-group conflicts.

APPROACHES TO STUDY OF LEADERSHIP Leadership as a subject of study has long engaged the attention of people. This is because there is a natural human curiosity about the leader-the factors that make him the leader, the functions performed by him, and the process of leadership whereby he is able to facilitate the achievement of group goals. There are many approaches to the study of leadership and these could broadly be discussed under three heads , namely , (a) traits or person – oriented approach ; (b) situation – oriented approach and (c) group – oriented approach.

1. Traits or person – oriented approach : Under the traits theory, or the person –oriented approach, the emphasis is on the single leader and his characteristics . the Greek and Roman historians like Herodotus and

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Tacitus helt. That the course of events is at all times shaped by the charisma of individual leaders possessed of certain magical qualities. Conceptually, charisma is associated more with the exercise of power than with authorities. A charismatic leader owes his position to personal qualities and wields power, without regards to the rules and procedures which restrict the exercise of authority by non charismatic leaders.

For a member of years, researchers in the field of management focused on the qualities that make a leader successful. The result was the traits theory or the “ Great Man” theory of leadership, which assumes that leadership qualities are in – born or God – given, and that the leader is quite different from the average person in terms of these qualities. As Linda Smircich and Gareth Morgon have put it, persons emerge as leaders because “ they can frame and change situations and in so doing enact a system of shared meaning that provides a basis of organized action”. In a way , this theory questions the usefulness of leadership training as it considers the acquisition of leadership qualities as an impossibility.

The traits approach to the study of leadership concentrates on personal traits of characteristics of the individuals who are classed as leaders. Some of these qualities may be enumerated as follows :

•

Energy, both nervous and physical

•

size

•

Mental ability

•

Personality

•

Initiative

•

Imagination

•

Emotional Stability

•

Desire to accept responsibility

•

Flexibility

•

Honesty

•

Sincerity

•

Determination

•

Persistence’s

•

Endurance

•

Integrity

•

Judgment

•

Courage

•

Good Look : Both physical and sartorial.

2. Situational Approach :

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The situation – oriented approach proceeds with a framework which is diametrically opposite to the person – oriented approach. According to it, leadership is widely dependent on a variety of factors, such as, the leader himself, the followers and the situation which include the values and traditions of the organization, the effectiveness of the group, the nature of the problem at hand etc.,

The situational approach to the study of leadership recognizes that leadership is based on an inter-play between – (a) the amount of direction ( task behaviour) provided by a deader

(b)

the

amount

socio-emotional

support

(relationship behaviour) provided by a leader and (c) the rediness ( maturity level) shown by the followers in performing a specific task.

The situational approach also takes into accounts the other environmental factors such as co-workers job demands, organization, as also the tempers of the times. But it regards the followers as the most crucial factors, because individually they accept or reject the leader, and as a group they determine the extent of personal power of the leader with reference to them.

Leader

Own value system Confidence in subordinates Own leadership inclinations Feelings of security in uncertain situations

Followers

Independence – Dependence needs Willingness to assume responsibility Tolerance for ambiguity Interest in participating Identification with organizational goals Knowledge and experience Expectations

Situation

Values and traditions in the organization Group effectiveness Nature of the problem Pressure of time

Internal Organisational Context Task behavior on the part of the leader would include goal – setting, organizing, directing and controlling, Relationship behaviour on his part would comprise proper support and encouragement to people, holding discussion with them in the spirit of give takes as

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regards their opinions and grievances , facilitating interactions as between workers, and providing proper feedback on the achievements of people. Maturate levels of followers will be indicated by their ability (job maturity) and willingness ( Psychological maturity ) to direct their own behaviour with reference to a given task.

3. Group – oriented approach Under the group – oriented approach which is only an extension of the situational approach leadership is viewed as the performance of the those acts which help the group to achieve its preferred objectives, such acts being called group roles or functions. It also seeks to define leadership as “ a role which an individual occupies at a given time in a given group” Leadership roles may be variously classified for Examples, K . Benne and P. Sheats have set out 27 different leadership roles as follows:

A. Group task roles : •

Initiator – Contributor

•

Information seeker

•

Opinion Seeker

•

Information given

•

Opinion giver

•

Elaborator

•

Coordinator

•

Orienter

•

Evaluator – critic

•

Energiser

•

Procedural technician

•

Recorder

B. Group Building and Maintenance e roles •

Encourager

•

Hurmoniser

•

Compromiser

•

Gate keeper and expenditer

•

Standard setter and ego ideal

•

Group observer and commentator

•

Followers

C. Individual Roles : •

Aggressor

•

Blocker

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Recognition Seeker

•

Self- Confessor

•

Playboy

•

Dominator

•

Help Seeker

•

Special Interest pleader

According, a leader plays more than one role and each of it is with a view to attaining different objectives. Moreover, different individuals may emerge as leaders at different points of time to provide direction to the activities of their followers :

Types of Leaders Leadership cannot exist without followers . The characteristics of the followers and the conditions under which they follow, are material to the exercise of leadership. In the preceding pages we have already seen that maturity levels of the followers, namely their ability ( job maturity ) and willingness or motivation ( psychological maturity) will to a great extent determine the behaviour of the leader vis-a vis his followers. Thus, in respect of the followers with low maturity who are neither able nor willing to perform, the leader will have to adopt task behaviour, i.e., he will have to tell them what how, when and where the given task is to be performed. Similarly, the leader will have suitably to adjust

his behaviour with

followers who are able but not willing, or willing but not able, or both and willing.

Based on the types of leader – behaviour leaders may be classified as follows : 1. Autocratic Leaders 2. Laisez Faire or Free Rein Leader 3. Democratic Leader 4. Intellectual or Functional Leader 5. Institutional Leader 6. Paternalistic Leader

1. Autocratic Leader An autocratic leader is one who tends to run the show all by himself. He specifies the goals which he requires his followers to perform, organizes the work situation, sets the timeframe within which the task is to be accomplished, provides specific directions and requires the followers to keep him regularly , posted with the progress of the task.

The autocratic leader views his followers as having little or no maturity as regards skills or willingness with which the job is to be accomplished. As such, he will neither have

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any discussion with them as to any aspect of job accomplishment. Nor delegate to them any authority. To extract of the required performance from his followers, he exercises, close supervision and control and uses his reward and coercive power to that end. Thus, if the followers comply with the leader’s expectations as regards performance, he rewards them. If they are lacking in performance, he uses coercive power to induce performance and holds out the threat of punishments by way of inconvenient work assignments, fines, our dismissal.

An autogatic leader believes in the “X” theory of motivation and family believes that without close supervision, control and fear of punishment, followers will not work since they are inherently dazy, unambitions and overse to accept responsibility or take any initiative.

An autocratic leader is in fact on leader. He is merely the format head of his organization. Workers under him feel harassed and disturbed, and prepare themselves sooner or later to offer resistance. With the emergence of indiscipline among his staff, the autocratic leader fails to obtain undquestioned compliance from his workers because they begin to assert themselves, and the result is that they gradually stop obeying his orders. After a time, there is total loss of his authority to demand compliance. 2. Laissez faire or free rein leader : Alaissez faire or free rein leader permits his followers to do whatever they want to do. He does not for mulate any policies or procedures and does not lay down guidelines within which the followers could accomplish their jobs. Thus, his followers are left to sent for themselves .

Since in a laissez faire set up, there is no attempt on the part of any one to influence any one else, there is a vast scope and opportunity for an extensive range of behaviour, though it may often be at Goss-purpose. There is a near total addication of formal leadership according to the needs of each situation.

Obviously, laissez faire leadership can be successful only where the followers have a high degree of maturity. i.e, they are both able and willing to perform. It the case of followers with less than high maturity, such leadership is not likely to succeed because, in the absence of suitable task behaviour on the part of the leader, they would merely groupe in the dark, not knowing what, how when and where to perform. Besides, deprivation of socio-emotional support from the leader make them feel insecure and vulenerable.

3. Democratic Leader : Democratic style of leadership is based on the assumption that the leader derives his power by consent of the followers. Whom he is to lead and that, given proper motivational environment, they can direct themselves and be creative on their respective jobs. In other

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words, while the followers have the requisite ability to perform the jobs, they are lacking in willingness to do so.

The democratic leader encourages his followers to participate in decision – making and implementation. However, decision are made only within the limits established by the policies and procedures which, again are formulated after elaborate, group discussion of course , the leader is present all along to guide and control the discussion but the followers are allowed to express their points of view without any let or hindrance. The decisions formulated during these discussions represent the consensus of all participants.

Democratic leadership seeks to evolve a self – regulating and self discipling mechanism. If any member of the group does anything which is in any manner opposed to the interests of the group, he is promptly checked and controlled by the other members of the group, and this is done by means of a system of rewards and punishment devised by the group.

Participation, consultation and

agreement of the group members are important

features of a democratic leadership, Democratic functioning can at times be dilatory and subject to various pulls and pressure from different groups, or individuals representing opposite viewpoints, moreover participative leadership is based on the assumption that the followers are all able though not willing to perform the tasks assigned to them. In the event, it poses the problem of working out a system of proper motivational support that would be equally acceptable to all.

4. Expert or functional leader An expert of functional leader does not command any formal authority in the literal sense of the term. He only stands out because of his special qualifications for the job handled by him, which is also the main reason why followers look up to him for guidance and control.

The expert leader is essentially task oriented, and most of his time is spent thinking about doing things faster and better. He has his eyes firmly fixed on what he intends to achieve and pursues his goal single – mindedly. However, since his success depends not only on his own work, but also on the activities of his followers, he may not be effective. as he plants. If his followers are not as serious and pain stocking as he is, he may behave in a demanding fashion, in the process relying more and more on the “X” theory of motivation. In the event, his followers may feel frustrated as they are prevented from maximizing their own potential. Over time, the situation may get from bad to worse, because the expert leader is by definition quite poor on the human relations front.

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5. Institutional Leader The Institutional leader is one who wields power over his followers due to the position or office occupied by him in the organizational hierarchy. At times, he may also derive power from his personality and behaviour. By virtue of such positional and personal power, he manipulates and controls the activities of others to accomplish the group objectives. The institutional leader may or may not be an expert in his field of activity. When he lacks the expertise, he may suffer from a sense of inadequacy, leading to an inferiority complex, and to compensate for it, he may exert to an exceptional extent to achieve his objectives. In the process, he may engage more and more in task behaviour, and less in relationship behaviour, such that the followers may develop a feeling of frustration and alienation.

6. Paternalistic Leader : A paternalistic leadership is characterized primarily by loyalty of followers in a warm and cohesive setting. The leader is much concerned with the well – being of his followers and comes to their rescue ever so often.

Since a paternalistic leader is concerned more with relationship behaviour, it can be successful only in cases where the followers posses job maturity and are only lacking in psychological maturity. In any other case, such leader may only produce an atmosphere of a country – Club which may display social warmth and cohesion but can do little by way of accomplishment of tasks. Even otherwise, under a paternalistic leader the followers, particularly the competent and achievement oriented among them, feel trustrated due to dack of opportunity for showing initiative. This is because while the leader, like a banyen tree, gives protection to all, he unwittingly creates conditions under which no follower can grow and be able to realize his potential.

QUALITITIES OF LEADERSHIP To be able to provide effective leadership to his subordinates, a leader needs to have certain qualities. According or Ordway Tead a leader must posses “ Physical and nervous energy, a sense of purpose and direction, enthusiasm , friendliness and affection, integrity, technical mastery, decisiveness, intelligences, teaching skills, and faith. According to Henry Fayol, the qualities that a leader must posses are :

1. health and physical fitness 2. mental vigour and energy 3. courage to accept responsibility 4. steady persistent, thoughtful determination 5. Sound general education, and 6. Management ability embracing

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Foresight and the art of handring men. The more important qualities of leader may be summarized as follows : 1. Physical and Mental Vigour : The leader has to put in hard mental and physical work, which requires tremendous stamin a and vigour to sustain ling and irregular hours of work.

2. Emotional Stability : The leader should not be unduly moved by emotion or sentiment. He should be able rationally and reach a decision without any fear or favour. He should not lose his temper or show indecision even in the face of heavy olds.

3. Sense of Judgement : The leader should be a master of human psychology. He should posses deep understanding of human behaviour, emotions, sentiments, needs, motives, etc., This would enable him to anticipate the response to his decisions and actions.

4. Balance : The leader should be rational and objectives in his approach. He should be free from bias, prejudice and pre-conceived notions. Only then he would be able to decide issues on their merits.

5. Understanding or empathy : The leader should show understanding for others, view points. If he tends to have his one way in all matters, he might close their goodwill.

6. Motivation : Only a person who is himself well motivated can motivate others. The desire to lead people should come from within. If a person is forced to do his job under fear of punishment, he would behave more the like a follower than a leader.

7. Communicating Skill : The leader should be good at communicating ideas, feelings, decisions, orders etc. He should be a good and effective speaker and writer. Then alone he would be able to persuade, inform, stimulate and direct his subordinates.

8. Ability to guide : The leader should help his subordinates to learn . Both by word and deed, he should demonstrate to them the best ways of accomplishing his the jobs.

9. Sociability : The leader should show keen interest in his subordinates. He should try to meet them often, and encourage them to discuss their problems and difficulties with him. He should be friendly, helpful and easily accessible to all his subordinates.

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10. Technical Competence : the leader Should possess a through knowledge of the theory and practice of his job. Besides, he should be quite familiar with the jobs done at different work points in his departments.

11. Other personal abilities : The leader should have an attractive and pleasing personality. He should possess optimistic and cheerful outlook. He should have sound physical and mental health. His subordinates will accept his leadership only when they find him full of youthful vigour, energy, vitality endurance and creativity .

Besides, he should be honest, sincere fair and reasonable in his dealings with his subordinates. If he is a man of integrity and behaves with his subordinates in a dignified manner, his leadership will be cheerfully and enthusiastically accepted by one and all.

EVALUATION

Job evaluation is â&#x20AC;&#x201D;a very useful technique. The wage rate is fixed on the basis of the nature of the job and not for men. Job evaluation is otherwise called as job rating. Job evaluation is a systematic procedure which measures the relative importance and value of each job on the basis of skills, duties, responsibilities and the like. In other words, job evaluation is the expression of each job in terms of money. The very purpose of job evaluation is to fix wage rates according to the job done by a man. It means fixing of higher wages rate for highly risky jobs and vice versa. For example, a college lecturer deserves to be paid more than a school teacher. A person who meets the minimum requirements of a jot) is recruited by the management. Job evaluation identifies the minimum and maximum requirements of each job. JOB EVALUATION PROCEDURE The following is the procedure of job evaluation: 1. A detailed study of the job-consider education, skill, training, experience and intelligence. 2. Identification of physical and mental efforts necessary and the degree of responsibility. 3. A job description. 4. Consider the characteristics of a job in terms of points, experience and training. If experience is considered twice important as training, experience may be awarded 10 points and training 5 points. 5. Job analysis. 6. Comparison of one job with another.

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7. Determine the number of points to be given for each characteristic of a job. 8. Add the points for each job. 9. Rank the jobs on the basis of its points. 10. Expression of the value of job in terms of money according to the points obtained. ADVANTAGES OF JOB EVALUATION The main advantages of job evaluation are as follows: 1. Management may control the labour cost since the pay is fixed on the basis of the nature of job. 2. Ranking of jobs is very easy. 3. Management can fix the same wages for similar jobs. In other words, equal pay for equal job principle is easily applied by the management. 4. There is a possibility of improving morale among the employees. 5. Job Analysis and Evaluation 6. Management can adopt the adc(imite 1)i~()Ynotion policy. 7. Jot) evaluation helps the management in the selection, placement and training of employees. 8. It provides a basis for justifying different rates of pay for 9. different jobs. 10. It improves relations between employee and employer and among employees. 11. Wage for a new job is fixed by the management without, much difficulty. 12. Management can prepare proper incentive schemes. 13. Job evaluation minimises the labour turnover. DISADVANTAGES OF JOB EVALUATION The main disadvantages of job evaluation are discussed below: 1. Job evaluation studies the job but not the individual doing the job. 2. Uniformity in pay adversely affects the workers who are above average. 3. Job evaluation is also one of the factors responsible for fixing a wage rate just like other factors. 4. It is very difficult to convert all the factors in terms of money for job evaluation. 5. Points awarded for each characteristic of a job are purely subjective. 6. Job evaluation ignores the labour market condition which is also responsible for wage rate fixation. 7. Job evaluation may not be understood by the workers.

So, the workers may suspect the intention of the management.

Principles of or Guidelines for Job Evaluation

1. There are different terms used in the job evaluation process. These are fully

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explained to workers before the work actually starts. 2. Conclusion of a job is done only after all the raters agree. 3. Size and type of the organisation are also to be considered before setting job evaluation process. 4. The objectives of job evaluation may be determined and they may be explained to these persons who are likely to be affected. 5. The management should take a decision regarding the use of financial resources. 6. The selected job evaluation system and its workings should be communicated to all the concerned parties to avoid misunderstanding. 7. Interested parties are encouraged to engage in the job evaluation system to facilitate smooth functioning. 8. The level of wage rates of jobs must be equal to the same kind of jobs existing in the same company and industry. 9. Company may use the labour grades in the job evaluation programme and make a provision for merit which increses within labour grades and length of service. 10. Short-term over-payments may be made to exhort employee's faith in the job evaluation system.

METHOD OR SYSTEM OF JOB EVALUATION

The methods of job evaluation are discussed below:

1. Ranking method

Under the ranking method, the jobs are graded on the basis of their responsibility and difficulty to perform them. Each job is valued in terms of other jobs and in monetary terms. Ranking method can be applied in small scale organisations successfully. The management can apply this method where more number of similar jobs are performed. This method's main defect is that valuation cannot be done accurately.

2. Classification method

It may be called Grading method. Initially grades are defined as common to various jobs. Next, the management finds out the various requirements of each job. Then, jobs are graded on the basis of the requirements of each job. For example, class one, class two, class three and skilled, semi-skilled, unskilled, etc. This is done usually by a committee.

3. Factor point scoring The management can identify the common factors of each job. Next, points are allotted to each such factor according to its relative importance. Finally, the wage rate is fixed

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on the basis of total points obtained by each job. Education, experience or skill, responsibility and working conditions are some of the common factors of each job.

4. Factor comparison method

This method is more or less similar to factor point scoring method. Under this method also, the management may find some common factors. First of all, the management can select a key job. Great care should be taken by the management while selecting a key job. Wage rate is fixed to the key job through the process of allocation of money in factor wise. For example, education Rs. 4.00, skill or experience Rs. 4.00, physical requirements Rs. 1.50, responsibility Rs. 2.00 and working conditions Rs. 3.50. The total wage rate is Rs. 15.00. Here, education, skill or experience, physical requirements, responsibility and working conditions are common factors. The remaining jobs are compared by factor with the scales of the key job.

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UNIT - III DECISION MAKING Meaning and Nature In simple terms, decision-making means choosing from among competing alternatives. In the words of Robert Tannenbaum, decision-making “involves a conscious choice or selection of one behaviour alternative from among a group of two or more behaviour alternatives”. In brief, to decide about a mater means to come to a conclusion on that matter. In this sense, decision-making is essentially problems solving in nature. Decision and policy are not one and the same. Decision is a moment in the process of policy formation, although policy itself is the results of a decision. In the words of Terry, “A decision is usually made within the guidelines established by policy. A policy is relatively extensive, affective many problems, and is used again and again. In contrast a decision applies to a particular problem and has a non-continuous type of usage”. So there is nothing permanent about a decision. It is being made and remade in response to changing conditions.

In an organization decision-making is a cooperative activity. It involves many people. In the words of Seckler Hudson, “Decision making in government is a plural activity. One individual may pronounce the decision, but many contribute to the process of reaching the decision. It is a part of the political system”. Decision – making occurs at various levels of administration in order to fulfill the objectives of public policies. Usually, headquarters officials make decisions affecting a national activity or the industrial economy of the whole nation. (Eg. Our central Governments economic policy of liberalization).

In contrast, decisions

affecting only a part of the country or a section of the population are best made by the field officials who are familiar with the problem from first hand contact. The decisions made by the field officials are more detailed and procedural in nature. The field official’s power to make decisions at the operational level avoids delay in action. Howeve4r, these decisions are made within the broad guidelines laid by head-quarter policies.

Factors affecting decision making In public administration several factors greatly influence the way in which an administrator makes decisions.

In other words, decision-making is governmental

administration depends upon many factors which may be briefly noted here.

1. Decision – making is affected by the decision-maker’s access to relevant data. No decision can be better than the data upon which it is based.

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2. Decision-making is a means to realize the policy objectives. Hence, the nature of decision-making depends upon the nature of policy goals.

3. Legal and budgetary limitations also affect decisions.

The decisions made by a

public administrator must conform to laws and regulations and the budgetary allocations.

4. Historical facts and precedents also guide the decision making process, many decisions on routine matters are taken on the basis of precedents.

5. Decisions are affected by the actual conditions prevailing at the time of decision making, ie., whether the decision is made in normal situation or under the stress of emergency situation.

6. The decision maker’s personal beliefs, altitudes, and bias, and his previous training the mores of the community of which he is a member also greatly influence his decisions.

7. Political considerations play crucial role in decision-making in public administration. Such important decisions as nationalization of banks or denationalization of some industry are made by political leaders on political considerations. 8. Decision-making in public administration is subjected to the sectional pressure of organized groups like trade unions, farmers associations, employer’s associations, etc.

These groups grently influence decisions dealing with such important

administrative goals as provision of social and welfare services.

9. Superior-subordinate

hierarchical

relationships

also

affect

decision-making,

Hierarchical rigidity does not allow the subordinates to express their opinions freely on equal basis with their superiors. From the preceding discussion it is clear that many forces and people play both formal and informal roles in decision – making in public administration. It may be emphasized that decisions in public administration should be made on objective considerations. Each issue should be decided on the basis of its own merits and not on such subjective considerations as caste, community, religion, language, region, party affiliations. Every effort should be made to make decisions on the basis of relevant, ascertainable and rational factors.

Decision-making Process The process of decision-making involves a logical progression of steps. decision-marker should logically proceed from step to step as follows: 1. recognition of the problem;

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2. collection of data; 3. classification and analysis of these data; 4. preparation of an inventory of means for realizing their objectives; 5. listing of alternative solutions; 6. making of the decision; 7. implementing the decision; 8. obtaining of feedback on the results obtained with it. In the light of the feedback the decision has to be modified if necessary. Conceptual approaches to decision-making There are three conceptual approaches to understand decision-making process in administration.

1. rational comprehensive approach, 2. incremental approach, 3. mixed

scanning approach. Each of them is briefly examined below.

Rational â&#x20AC;&#x201C; Comprehensive Approach According to this approach, decision-making involves clear definition of policy objectives, listing of alternative solutions, ranking them according to their importance, ie., according to their relative costs and benefits, selecting the best solution and implementing it. For example, if reducing poverty is the goal, the decision-maker would be seen as ranking such options as a guaranted income plan, direct government subsidies, higher welfare payments and work relief programmes. After carefully weighing the relative advantages of all options, the decision-maker selects the best one. The critics point out that this approach is unrealistic. It may work on paper but poorly in practice. The decision-maker has neither the time nor the adequate information and knowledge to analyse fully all the potential alternatives. Further, it entails risks because other consequences of adopting policies substantially different from the present ones are unknown, lastly, the method involved in the rationalcomprehensive approach is time-consuming.

Incremental approach The decision-maker, who follows this approach, examines a limited number of alternative solutions to a problem and selects one that is satisfactory to deal with the issue. The decision-maker will avoid major departures from past policies and practices.

This

approach is called incremental because in it the decision-maker implements change in a series of small steps that modify past policies only relatively slightly.

This approach,

therefore, is inherently conservative. By following this approach the decision-maker finds it difficult to redirect society on a large-scale in a new directions. However, this approach is widely accepted as one that describes the reality in decision-making process.

While it

describes now decision-making takes place, the rational model prescribes how decisions should be made.

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Mixed-Scanning Approach This approach, developed by Amatai Etzioni, attempts to combine incrementalism with the rational-comprehensive approach.

It is contended that the problems facing

government are too critical that incremental changes are not sufficient and that innovation is required. Etzioni observes that mixed-scanning method can tackle his problem. Using an analogy to observe satellites Etzioni argues that there are two levels of decision-making. At the first level the entire environment is scanned regularly. If such scanning reveals no major issues, decisions can be made on a routine, incremental basis. But if this scanning reveals a major problem or a trouble spot, a second level of analysis should take place focusing on a detailed examination of the problem encountered.

This makes comprehensive action

possible with respect to areas studied in detail. Etzioni recognizes that public administrators may make both fundamental decisions pertaining to long-range goals and more limited decisions within the context of those goals. But, they ought to be clear about what it is they are doing. By combining rationalism with incrementalism the mixed-scanning approach can maximize the advantages of each while minimizing their shortcomings. Mixed-scanningâ&#x20AC;&#x2122;s middle way approach encourages innovation of ratonalism and at the same time preserves stability and predictability of incrementalism.

Types of decisions Herbert

simon

makes

distinction

between

two

type

decisions.

1. Programmed and 2. Un-programmed decisions. Beside these two types, there is another type of decision known as 3. the participatory decision-making a brief explanation of each of them is given here. Programmed decisions Programmed decisions are standing decisions for which definite procedures are worked out. They exist to guide administrators and non-administrative personnel in highly repetitive and routine decisions. Objectives, standards, procedures, methods and policies represent the examples of programmed decisions.

Unprogrammed decisions Un-programmed decisions are those of handling which no cut-and-dried methods or rules or precedents are available. They are novel and unstructured in nature and therefore they have to be tackled independently.

They require creativity and a greater amount of

judgement. Selection and training of executives possessing higher skills, innovative ability, etc. are the techniques to deal with non-programmed decisions.

The unprogrammed

decisions are basically special purpose decisions their life is short since they exist for a particular or single use.

Programmes, strategies, budgets, etc. are examples of un-

programmed decisions.

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Participatory decision-making Participative decision-making means involving people in making decisions that affect them. For example, employees can be allowed to determine many of their work conditions such as hourse of work and fringe benefits. They can be asked to contribute their ideas to overall organization policy.

Effective participatory decision-making requires a “spirit of

enquiry” and frankness on the basis of equality of the participants. It also requires some common level of knowledge and understanding among the participants. It may be noted that hierarchical rigidity and participatory decision-making do not go together.

It therefore, is

opposed to traditional authoritarian bureaucracy which glorifies rigid hierarchical relationships. It can exist within an open, democratic work environment only.

Participative decision-making ha certain advantages 1. It generally leads to more informed and better decisions, because more mind sand more varieties of experience have gone into their making.

2. It results in better execution of the decisions taken, for it, allows in their formulation the participation of those who are to carry them out.

3. It stimulates employee development.

4. It allows as many employees as possible to make as many decisions as possible. It has also certain drawbacks. a. The participatory decision-making process can be too much time consuming to all those who are involved it. b. It can at times lead to increased bickerings among the participants. c.

It delays the taking of action

d. Some times participatory decision making is hampered by the reluctance or inability of the employees themselves to make use of it. It is better if the public administrator beings it by taking small steps, letting their employees share first in the making of minor decisions and then gradually proceeding to more major decisions. According to warren Bennis, participative decision making processes are needed because “Modern enterprises are, at best knowledge gathering, truth requiring dilemmas”.

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COMMUNICATION

MEANING OF COMMUNICATION The word “Communication” is derived from the Latin word “Communis”, which means common. Thus, communication means sharing ideas in common. It means a verbal or written message, an exchange of information, a system of communicating and a process by which meanings are exchanged between individuals through a common system of symbols. It also means a technique for expressing ideas effectively.

There is communication when you talk to someone, or liste to a speaker. When you read a book, its author communicates his thoughts to you. When you watch the TV or a film, you receive communications from many persons-the script-writer, the director, the musician, the actors, and so on. When you write or receive a letter, there is communication of ideas and feelings.

However, communication does not mean more oral or written messages. In fact, it includes everything that may be used to convey meaning from one person to another. Sometimes, the wave of hand, movement of lips or the wink of an eye, may convey more meaning than a thousand written or spoken words. And going by the adage “Silence is golden”, lack of communication may also be a kind of communication.

Communication may also at times by physical. Shaking of hands is communication of the warmth of feelings between the persons concerned. When the audience in a meeting or Mushaira throw paper missiles or eggs at the speaker or poet on the mike, that is their way of communicating their dislike for him.

No matter how many new methods are discovered for the purpose, the five basic aspects of communication, ie., speaking, listening, writing, reading and observing are important for success in communication. NATURE OF COMMUNICATION Communication means sharing ideas in common.

It requires transmission of a

verbal, written or gestural message by one person, and its receipt by another for whom it is intended, who should understand it in the same sense.

The following are the characteristics of effective communication: 1. It takes two to complete communication Communication is a two-way traffic. If a person transmits a message without its being receive or understood by anybody, then communication will not be complete. There should be a sender and a receiver of the message communicated. For example, even if a

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person shouts at the top of his voice in a deep forest, he will not communicate because there will be no one other to receive or understand his message.

2. Message to be understood in the same sense The senderâ&#x20AC;&#x2122;s message should be understood by the receiver in the same sense. If the receiver does not understand it, the communication will not be complete. For example, if a message is in a language or script not understood by the receiver, he will not be able to make any sense out of it.

3. Message to have substance The transmitted message should give out ideas, information of facts which should be of interest to the receiver. There is no point in talking about complex engineering details to an accountant for whom these may have little meaning of interest.

4. Communication may be oral, written, or gestural Messages may be transmitted orally, in writing, or through appropriate gestures. Spoken or written word is a known carrier of messages. But certain gestures like twisting of the face, rolling of eyes, or movement of lips, can be equally effective modes of transmission.

5. Communication may be formal or informal Formal communication follows the formal channels provided in the organization structure.

For example, the sales manager will communicate with the deputy sales

managers, the deputy sales managers with the salesmen under than, and so on. In other words, there will be no direct communication between the sales manager and the salesmen.

Informal channels of communication, also called grape vine, are not provided in the organization structure. These are developed among members because of personal contact through working with each other. Informal channels are faster in communicating messages than the formal channels. But some times informal channels may be used to spread false or distorted messages.

ELEMENTS OF COMMUNICATION PROCESS Each administrative communication have five basic elements 1. A communicator, ie., the person who wishes to speak out or send or transmit a written message. 2. Message, ie., the information, order, appeal, observation, instruction, report, etc. that is communicated. 3. Encoding, ie., the act of putting the message in suitable words, charts, or other symbols for transmissions. 4. Transmission ie., the act of saying, sending or issuing the message.

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5. Communicatee, ie., the respondent, addressee, or audience to whom the message is communicated. 6. Decoding, ie., the act understanding the message exactly as it has been sent. 7. Response, ie., reaction of the communicate, by way of reply, action, use or storage of the message. TYPES OF COMMUNICATION Communication may be classified on more than one basis. For example, on the basis of relationships between the parties concerned, communication may be, a) formal, or b) informal On the basis of its flow of direction, communication may be (a) downward, (b) upward, or (c) side ward And on the basis of the methods used for the purpose, communication may be, (a) Oral, (b) Written, or (c) Gestural

TYPES OF COMMUNICATION

Formal

Upward

Informal

Sideward

Oral

Downward

Written

Gestural

Formal and Informal Communication Formal communication. It follows the course laid down in the organization structure of the enterprise. Members of the enterprise are supposed to communicate with each other strictly as per the channels laid down in the structure. For example, the sales manager may have a salesman, a secretary, a book-keeper and mail-room boys under him.

All his

subordinates are supposed to communicate their problems to him, but not to one another.

SALES MANAGER

BOOK MAII, ROOM KEEPER OFFICE, BOYS FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621 SALESMAN

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Informal communication or grape-vine.

Human beings do not always follow the

pattern of relationships provided in the organization structure. For example, according to the structure, formen may be required to report directly to the production manager. Yet, because of their informal relationship with an assistant production manager, they may prefer taking orders and instructions from him rather than from the production manager.

Thus, jumping of communication channels takes place because of informal relations between members of the organization.

In course of time, informal relationships become the informal communication system itself. Needless to say that this system of communication is easier and faster than the formal one. But while it serves as an efficient means of communication, it also sometimes spreads gossip and baseless information.

Downward, Upward or Sideward Communication Communication flow in an organization may be in three directions â&#x20AC;&#x201C; downward, upward and sideward.

Down ward communication, in this case, communication is from the higher to the lower levels of management. Essentially, the purpose here is to communicate the policies, procedures, programmes, orders, etc to subordinates. Upward communication, here, it is the subordinates who send up communications to their superiors. Such communications are in the form of reports giving details as to progress of performance at lower levels. Also these may be by way of suggestions for effecting improvements in the working of plans or policies, or ideas for introducing innovations.

Inquiries, complaints, grievances, etc., are other

examples of upward flow of communication.

Sideward communication, generally, this takes place in a decentralized organization. Subordinates operating at the same level and under the same superior may communicate with one another to exchange information in several respects. The sales manager may, for example, communicate with the production manager about the kind and quantify of goods being produced in the factory to enable him to plan his sales compaign accordingly. The purpose of such communication in operations.

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Oral or Written Communication This has been discussed in the subsequent chapter.

IMPORTANCE OF COMMUNICATION “Communication”, according to Allen, “is the sun of all the things one person does when he wants to create understanding in the mind of another. It is bridge of meaning. It involves a systematic and continuous process of telling, listening and understanding”.

1. Aid to managerial performance Communication enables the manager to secure information for decision-making, to diagnose the various problems faced by him and to decide on actions to be taken to solve them. It is through communication that he is enabled to plan properly, to organize objectively, to direct decisively, and to control correctly.

It is communication that helps the manager in imparting to his subordinates the meaning and significance of the enterprise aims and objectives. Again, it is communication that helps him in giving orders and instructions, assigning duties and responsibility, and seeking willing and active co-operation of his subordinates.

Thus, whichever way one looks at it, communication stands out as an important tool in the process of management.

2. Aid to understanding and acceptance of work It is an established fact that individuals can produce miracles if they develop interest in their work.

But, within an enterprise, this can be possible only when the employees

understand and accept their work as of some importance. If they do not know what they are supposed to do, as also that efficient.

Performance of their work would lead to

accomplishment of something of value, they will not have their heat in their work. It is here, in creating understanding and acceptance of the work to be done, that communication becomes important.

3. Aid to leadership To be of any meaning, communication has to be a two way process. If it helps the management in transmitting ideas, feelings, suggestions and decision to employees, it also enables the employees to communicate their responses, attitudes and problems to the management.

In fact this is the essence of forging man-to-man relationships between

management and employees.

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Through an effective two way communication the management can assume the role of a leader, and the workers can become willing and energetic followers

4. Aid to Coordination In an enterprise, different activities are undertaken at different work centres. But all these activities have to be unified if they are to lead to accomplishment of the enterprise goals. However, team work can be possible only where members at all levels are posted with all the facts and information relating to their work. It is no use keeping the members in the dark because that would only promote feeling of distrust and alienation among them. Thus, proper and effective communication acts as a cementing force in unting the members of an enterprise into a well-directed team.

5. Aid to job-satisfaction Individuals can be made to perform better and more efficiently if they know what they are supposed to do, what type of authority they have, what their relationships with others in the organization are, how their work comes up to the expectations of their superiors, when their performance is not up to the mark what they can do to improve their performance, and how their jobs help in the accomplishment of the enterprise objectives. But all things can be possible only if there are proper and effective means of communication in the enterprise. Thus, communication helps the employees in securing job satisfaction.

6. Aid to economy in time and effort Proper and effective means of communication also result in a great saving of time and effort. Sitting in his office, the manager can easily communicate the policy guidelines and specific decisions to his staff. There is no need for him to send for, or go to, individual staff members for this purpose.

The staff members , in turn, can report on the progress of their work without having to visit their superiors personally â&#x20AC;&#x201C; needles to say, this involves a considerable saving in terms of time and effort the two most important factors that ensure efficiency and effectiveness in a business concern.

7. Aid to Public relations It is only through communication that management can present an acceptable image to the outside world. In the performance of its activities, a business enterprise comes in contact with a wide variety of people customers, potential customers, shareholders, members of the public, Government and so on. Relationships with all these different strata of society can be considerably improved though effective handling of the means of communication.

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CONTROL MORALE

DEFINITION Dr.William r. Spriegel ‘Morale means the co-operative attitude or mental health for a number of people who are related to each other on some basis’.

M.S. Viteles ‘Morale may be defined as ‘an attitude of satisfaction with desire to continue in and willingness to strive for the goals of a particular group of organisation’.

E.F.L. Brech ‘Morale may be described as a readiness to cooperative warmly in the task and purpose of a given group or organization.

Webster ‘Morale is a condition as affected by, or dependent upon, such mental factors as zeal, spirit, hope, confidence, etc.

Morale is composed as follows: 1. It is an attitude of mind, as esprit de corps, a state of well (or unwell) being and an emotional force. 2. It does affect output, quality, costs, cooperation, discipline, enthusiasm, initiative and other aspects success. 3. It resides in the minds, attitudes and emotions of individuals themselves and in their group reactions. 4. It affects immediately, employees and executives in their interactions, ultimately, the customer and the community. 5. It affects willingness to work and to cooperate in the best interests of the enterprise and in turn, of the individuals themselves. Any morale improvement programme of management must embrace the following rules:

(i) Respect the individual (ii) Be fair and just (iii) Encourage initiative, (iv) Design effective communication, (v) Give fair compensation, (vi) provide good work environment (vii) provide job security, (viii) Be alert, (ix) leave door open, (x) Be courteous, (xi) point individual prosperity in company prosperity and company prosperity in national prosperity, an (xii) adopt a how-shall-we-do-it-attitudes.

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Importance of Morale 1. Overall satisfaction. The other name of morale is satisfaction, which relates to needs of the individual, his job, his colleagues, supervisors and so on. So a condition of high morale means overall satisfaction, peace, harmony and stability.

2. Productivity. Morale increases productivity into ways â&#x20AC;&#x201C; directly through inducing more effort and indirectly, by removing some of the handicaps like employee grievance, absenteeism, turnover and the like.

3. Discipline. Where morale is high, there is practically no problem of indiscipline.

4. Ease of management.

High morale also reduces the need for supervision.

Motivated workers themselves take the initiative to work harder and better.

5. Better company image. If morale can be maintained at a high level for a long period, it will create a good image in the public mind about the company. While employees themselves may publicize its policies, working conditions and so, on absence of disputers and general atmosphere of harmony produce a favourable impact on suppliers, customers and the neighboring community. Factors contributing towards morale in an organization Organisation morale depends upon a variety of factors. Since morale is indicated by the degree of satisfaction of the various motives of employees at work, an organization can handle morale by manipulating the level of satisfaction. The organization should be able to identify the basic motives and provide for their realization by organization members. The most important factors which lead to high morale are as follows:

(1) The Type of Organisation Structure An organization structure which has many supervisory levels with rigid control systems will not allow the employees to develop their full potentialities. This implies that their needs for self-fulfillment will never be realized. This structure should be, so far as possible, decentralized in character so that the employees get enough liberty to exercise their own initiative and drive. Self satisfaction so derived will definitely contribute to better morale.

2. Resolving Organisation Goals and Personal Goals Employees will always have a high morale if their own goals get the change of being fulfilled in the organization. Indeed, this is a basic pre-condition. But the organization is not a welfare or philanthropic institution it has its won objectives too. This apparent tug-of-war between the two sets of goals has to be effectively resolved. Both have to be proved to be capable of being achieved through the same means.

This will ensure the concurrent

achievement of productivity as well as morale.

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(3) Creation of Job-Interest Argyris puts the idea very precisely. “The employee should be helped to feel that his job, no matter how small a part of the total process, is tremendously important if the whole is to be produced”.

Without such a conviction that his part of the job is significant to the

organization, the employee is not likely to have a good amount of interest in his job. Jobenlargement is a new movement intended to boost one’s interest in jobs. Instead of reducing jobs to mechanical repetitive actions, a job is today attempted to be given an integrated, whole entity. This helps employees to derive the satisfaction of having accomplished by themselves something in its totality. Besides, both intrinsic and extrinsic worth of the jobs should be tried to be improved.

4. Encouraging and Harnessing of Informal Groups Employee always feel the nee for belonging to a group, and team-work is a natural desire on their part. These informal work-groups which they build within the plant have a high potential for effective work if they are properly handled. Management should be above to make a correct diagnosis about all informal groups/; and without disrupting their cohesion it should try to integrate them into the formal organization structure. This will maintain and improve group morale in the organization.

5. Adoption of participative and consultative types of supervision Employees have a general tendency of resist changes towards new policies and methods in the organization. Participative and consultative approaches have a democratic flavour about them, and are able to wear – off resistance by making changes appear as their own decisions. Supervisors would be able to get necessary. Co-operation from employees who have been consulted in matters pertaining to their area of actions. Employees will have a better morale, and the implementation of changes would be easier.

(6) Well-Devised Promotion Policies Promotions are a good device for encouraging employees to shoulder high responsibility. That employees are responsibility seeking is the basic assumption underlying all promotions. Judicious promotions even if they do not carry any monetary incentives may also be appropriate as incentives to workers.

(7) Dynamic Leadership Approach : The climate of leadership is likely to have a good deal of influence on the level of organization morale. Good leadership will be able to mould the attitude and approach of workers to work. Productivity will be encouraged through leading the workers along the path of organizational goal. Morale will be improved if leader themselves set an example of hard work and of allegiance to company goals.

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(8) Good communication system: Morale depends upon proper understanding between the workers and management. Communication is intended to create this climate of understanding between all parts of the organization.

Two-way communication between all points must be encouraged so that

employees can voice their ideas, suggestions and responses to the upper levels of the organizations.

(9) Decentralised control system Control is an all pervasive activity within the business. There should be enough autonomus, consistent with coordination, in each section for controlling its own activities. This will allow the employees to be self-reliant and always conscious of their duty towards conforming to organization targets or goals. The basic assumption should be the employees are self-directing and self-controlling. If this confidence is reposed in employees, they are likely to have greater morale.

(10) Good Human Relations Since morale concerns human beings human relations have to be remodeled along up-to-date assumptions. All previous points said would lead to an overall approach towards human relations on lines of modern concepts. Human relations imply having a contended and satisfied group of employees. Paying attention towards productivity. The contributory factors towards morale aim at having a satisfied body of employees coupled with progress towards company goals an objectives.

Moral Building Steps According to Davis there are six major factors which govern and regulate the state of morale amongst the employees of an organization.

(1) Adequacy of immediate supervision Supervisors are in immediate proximity to the work-force. They have therefore to bear the brunt of keeping up goods morale amongst the workers who for the bulk of employees in an industrial undertaking. The same argument applies to office supervisors as well. If therefore, the supervisors tend to adopt a punitive or very close style of supervision, they are likely to undermine morale. On the other hand, they are likely to boost it if they pursuer a participative and consulative approach in their activities.

(2) Satisfaction with the job itself This implies something different from job satisfaction.

This is a result of having

achieved a task or duty to oneâ&#x20AC;&#x2122;s satisfaction and is conditioned by other factors of which morale itself is one. On the other hand, satisfaction with the job itself is a cause-an intrinsic

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quality in the job which leads to devoted and purposive efforts.

Extrinsic incentives like

shorter hours, longer rest periods, bonuses, etc. Do not cause the job itself to be satisfaction yielded. Thus, management should make an effort towards such an allocation of job-parcels as are intrinsically satisfactory to the employees.

This allocation would lead to better

utilization of the talents and abilities of the workers.

(3) Compatibility with Fellow Employees Man has a natural inclination towards forming social links wherever he lives of works. It is this tendency which leads to the formation of what are known in management literature as ‘informal groups’. Such groups are formed around point of common aims and interest among a number of workers possessing similar bent of mind and engaged in similar or related work. Management should see that such ‘informal groups’ are not suppressed for they will reappear any time, anywhere. Rather, a more positive attitude should be adopted these groups should be led towards the orgnaisation goals by convincing them of the essential unity of their group goals with the farmer. The compatibility with their followmen, which employees have secured, must not be destroyed.

Morale Building – Ralph.C Davis Summarised the Moral – building process thus; 1. Development of good leadership at every level. 2. Analysis of individual and group interests and objectives and their relation to organizational service objectives. 3. Establishment of common concepts and yardstick of values. 4. Provision of the values, both tangible and intangible that are desired by individuals and groups in the organization, in adequate and proper amounts. 5. Prompt discovery and equitable adjustment of conflicts between personal and organizational objectives. 6. Continuous identification of organizational objectives 7. Morale maintenance

MOTIVATION

INTRODUCTION The basic objective of a manager is to secure from his subordinates an optimum performance towards accomplishment of the predetermined objectives. The subordinates on their part would be able to put in such performance if the following conditors are present, namely , (a) they posses the ability, i.e, knowledge and skills to carry out the tasks assigned to them (b) they are willing to expend the necessary effort to carry out those tasks and (c) there is an opportunity available to them for their abilities and efforts to be used in meaningful ways. This may be stated by means of following equations.

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Performance = Ability X Effort X Opportunity

Performance, whether of an individual or a group of individuals is determined when the three factors of ability, effort and opportunity are taken together. Ability without efforts is of no avail. Effort without ability cannot achievements. And ability and efforts in the absence of opportunity will only cause frustration.

Ability means knowledge and skill and technological capabilities. It is a pointer to the extent to which performance is possible. Effort is related to needs, motives, expectations, goals and rewards. It is a pointer to the extent to which a person is willing to exert mentally and physically. Opportunity makes it possible for ability and effort to be used in a meaningful way.

It is a matter of common experience that there is often variation in individual effort and performance even though people with similar capabilities are working in identical situations. Some people are more effective and efficient in accomplishing the assigned tasks, than others. Variation in individual effort and performance is attributable to the extent to which a person feels motivated to expend mental and physical effort to accomplish the given task.

Meaning of Motive and Motivation Motive may be defined as the mainspring or the “ why and wherefore” of any effort on the part of any individual or group of individuals . It refers to the states and processes of mind, needs, wants, desires, values, and expectation. Thus of one knows what a person feels and how he thinks, it should be possible to predit how that person will behave in a given situation.

“ Motivation” refers to goal-directed behaviour. It means what a person will choose to do when several alternatives are available to him. It also refers to the strength of his behaviour after he has exercised the choice, and the persistence with which he will engage in such behaviour.

Process of Motivation : In management parlance, motive and need are used inter changeably. In fact, need is a good point to begin discussion on motivation. A need represent the lack or absence, or deficit of something within the system or organism. When an individual experience lack or deficit of something, he looks around his work environment to sec if there are any incentives or reward for performance of task which would lead to satisfaction of that need. Thus, a need is personal or internal to a person, while incentives are external . He acts of behaves in a particular manner. But it is not a random act or unguided behaviour. His behaviour is motivated or caused. It is directed towards a goal, i.e., Satisfaction of his need, or achievement of what he is lacking, with the satisfaction of his need, or achievement of what

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he is lacking, the mechanism of motivation is complete. Satisfaction of a need restores the balance or equi-librium in the organism, which remains upset and distrured until the need is unsatisfied.

Individual Needs

Perceived

Wants

Environment

( Tension)

Incentive

Motivation

and

Action

Behaviour (Tension

Disincentives

release )

Elements of Motivation In any motivational system, there are three elements namely : ( a) the individual who is being motivated, (b) the job and (c) the work situation.

The individual : Every individual, whether a top ranking manager or a lower-level worker, is a unique being. Workers may differ from one another in several, respects, such as, age , sex, education, intelligence, personality, physical characteristics, experience, heredity, and social and cultural background. These difference will determine the needs and attitudes of workers. They will also determine how each worker will react to motivational devices such as monetary and non-monetary incentives.

The job : Every job within the set-up of an organization prescribes different requirements and holds a different level of attractiveness for each worker. Routine jobs are not liked by many because of the monotony and dullness in involved in doing them. But sometimes even challenging jobs may not hold attraction for some people. This means there will rarely be a job which is regarded as a source of enjoyment and pride by one and all.

The work situation : The environment within which work is to be performed also creates motivation. This includes (a) organizational goals and values which help to identify desired outcomes or results and the nature of behaviour that will help to achieve them ; (b) the type of technology and structural relationship which together determine how work is to be divided and integrated; (c) leadership style interms of participation in decision â&#x20AC;&#x201C; making; (d) the reward such as salary, perquisites, benefits, promotional prospects, status, etc.,

Individual Characteristics

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Work Situation Characteristics

NATURE OR CHARACTERISTICS OF MOTIVATION It is difficult to describe the nature of motivation. However, the following points about it deserve to be noted:

1. A Psychological Concept Motivation deals with workers on the psychological plane. Even workers with extraordinary abilities will not be able to perform as desired until they are effectively motivated.

Effective performance on the part of workers can be said to be the results of their abilities backed by proper motivation. Thus, performance abilities opportunity x motivation.

While motivation has the capacity to secure desired performance from workers, it can be effective only upon an accurate analysis of workerâ&#x20AC;&#x2122;s needs for the satisfaction of which they may be induced to work in the desired manner.

2. Motivation is total, not piecemeal A worker cannot be motivated in parts, for successful motivation, he should be treated as an indivisible unit, taking into account all his urges and aspirations.

A motivational device which promises fulfillment of some needs of workers and not others, will fall short of its objective of evoking total commitment of workers.

3. Motivation is determined by human needs A worker will perform the desired activity only so long as he sees his action as a means of continued fulfillment of his strongly-felt needs. Once a particular need is satisfied for good, he may lose interest in the activity that provides him satisfaction of the said need. In such a case, he will have to be provided awareness of satisfaction of his other needs so that he continues to be inclined to pursue the said activity.

4. Motivation may be financial or non-financial Motivation may be provided in several ways depending upon the needs, emotions and sentiments of workers. But broadly speaking, it may be classified as financial and nonfinancial.

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Financial motivation seeks to satisfy physiological and security needs and it is by way of wages, allowances, bonus, prizes and other perquisites. On the other hand, non-financial motivation which seeks to satisfy social, recognition and creative needs may be by way of appreciation for the work done, higher status and greater responsibility, or increased participation in decision-making. 5. Motivation is a constant process Human needs are infinite. No sooner a person has satisfied one need than he seeks to satisfy another. As very aptly put by McGregor, “Man is a wanting animal – as soon as one of his needs is satisfied, another appears in its place. This process is unending……..”

Motivation cannot be a time-bound process. Nor can it be a touch-and-go affair. To keep the workers continuously engaged in the planned activities, they must be kept in a state of continued animated tension by means of unfolding before them ever new avenues for the satisfaction of their limitless needs.

HUMAN NEEDS Human needs are of various kinds and may be classified in many ways. They are influenced by the social, economic, and cultural background of the individual experiencing a particular need.

Classification of needs Human needs may be broadly classified as: 1. Basic, primary or physiological needs. 2. Bascondary, social, psychological or acquired needs.

Basic, primary and physiological needs The human body, without doubt, needs some basic physical satisfactions, the lack of which over a long time may be harmful to it, and may even prove fatal. For example, it needs oxygen, food, water and sleep which are vital to its existence. It needs shelter and clothing to escape the pain of extreme cold, heat, etc., and to preserve body temperature at a particular level. It also needs sex, but that is more for the preservation of the human race than for its own sake.

Basic needs are universally felt but they are different in their types and intensify from person to person.

For example, a child needs more sleep than an adult.

Social and

economic status of a person will also determine the basic needs. If a person eats three meals a day, then he will feel hunger thrice a day, though only one meal will be enough for his survival.

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2. Secondary, social psychological or acquired needs Besides basis needs man also feels other needs which though not as immediate, begin to be felt by him quite early in life and have an important bearing on him. Secondary needs are often vague because they are the needs of the mind and spirit, rather than of the body.

Management will find it easy to satisfy basic needs of employees.

However,

secondary needs are not as east to be satisfied. Therefore, while planning any motivational effort, management should consider its effect on secondary needs.

The following characteristics of secondary needs deserve to be noted: 1. They are developed as one matures in age and experience. 2. They differ in their types and intensity from person to person. While one person may have need for power such that he may assert himself forcefully and move against people, another may have need for affilation such that he may even submit to their unreasonable demands. 3. They are not constant and may, over time, change in the case of the same individual. 4. At any point of time, more than one secondary need is felt by an individual. 5. Often, a person feeling secondary needs is himself not aware of it. 6. They have a perceptible effect on human behaviour.

TYPES OF MOTIVATION Motives or needs are the primary cause of human behaviour. They alone spur, direct and sustain effort. However, because of inherent individual differences, the needs which prompt people to action are vastly different. For some people a ob is a means of a group. Some people prefer challenging jobs while others are content with unexciting, routine work.

Motivational measures in any organization would generally depend on the managerâ&#x20AC;&#x2122;s perception of the basic human nature. For example, if he has a positive optimistic view, in the sense that if he regards his subordinates as hardworking, sincere, intelligent and responsible, he would seek to motivate them by assuring satisfaction of their social, esteem and selfactualisation needs the rewards in such a case would be mainly intrinsic, such as increased responsibility, autonomy in decision-making, opportunities for advancement, skill variety, and so on.

On the other hand, if he has a negative pessimistic view, and regards his subordinates as a bunch of lazy, insincere, dumb and irresponsible people, he would not think beyond satisfaction of their physiological and safety needs. In such a case, the rewards would be extrinsic, such as increased salary, perquisites, good working conditions, and so on.

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Motivation by way of rewards of reinforcements may be positive or negative. Positive reinforcements provide the conditions in which workersâ&#x20AC;&#x2122; needs (as perceived by the manager) can be fulfilled. Negative reinforcements have the effect of curtailing or withdrawing those conditions.

Thus, positive reinforcements may be by way of higher wages, perquisites,

prizes, good working conditions, increased responsibilities, autonomy, opportunities for growth and advancement, and so on. Negative reinforcements may be by way of wage-cuts, warnings, criticism, reducation in paid holdings, transfer to inconvenient places, firing, etc.

The kind of reinforcements to be allowed will depend on an accurate diagnosis of a given situation. There can be no hard and fast rule as to what motivational measures would work in all situations. Before introducing and reward or reinforcement, whether positive or negative, it will have to be carefully examined if it is considered adequately rewarding (or unrewarding) by the people for whom it is meant. For, then alone it will lead to the desired course of action on the part of workers resulting in satisfaction arising from the reward or reinforcement.

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