Taxmann's Business Organisation & Management | B.Com. | UGCF

ABOUT THE AUTHOR

Prof. CA Abha Mathur is a Professor of Commerce, in Satyawati College, University of Delhi. She is a qualified Chartered Accountant and has to her credit, a plethora of educational qualifications such as, B.Com [H], M.Com, PG DIP [Business Mgt.], DIP [Comp. Prog] and Ph.D. from Department of Commerce, University of Delhi. She has, a long experience of 39 years, out of which her industry experience is about 13 years and her teaching experience of 26 years. Prof. Mathur started her career in 1982, as the Manager (Finance) in Pure Drinks, New Delhi Ltd. and went on to become the Head of Financial Operations in various private sector companies and held senior positions, till the year March 1995. After spending 13 years in the industry, she decided to pursue her passion for teaching and became a part of Delhi University, in the year July 1995. She continues to combine academic and professional work. Her academic work includes prestigious projects such as content development for ‘Tourism’ paper of B. A. Program Application course, as a Joint Coordinator. She was appointed as a Paper Coordinator for the subject “Accounting for Managerial Decisions’’ for M.Com level students, in e-PG Pathshala, which is an E-Portal for distance learning. She also reviewed 35 Modules & contributed content for 15 Modules. She has audio/video recorded 96 Modules which have been uploaded on the website, “http://epgp.inflibnet.ac.in/ahl.php?csrno=6’’ and eVidyarthi. She has been a special invitee to teach variety of subjects in MBA Institutes, ICAI and Department of Commerce, Department of Computer Applications and Department of Adult Education of University of Delhi, DTU, for teaching various papers of Commerce.

She has presented about 11 papers in various National/International seminars/ Conferences and has published 24 Articles in leading International and National Journals

She has authored following Books:

1 - ‘Business, Entrepreneurship & Management’ for FYUP course

2 - ‘Principles of Marketing’ for B.Com [H] & MBA students

3 - ‘Marketing Management’ B.Com [P] students

4 - ‘Human Resource Management’ for B.Com [H] & [P] students of CBCS Course

5 - ‘Tourism & Travel - An Indian Perspective’ - For students pursuing courses in Travel and Tour Management.

6 - ‘Entrepreneurship’ for B.Com [H] & B.Com [P], CBCS course students

7 - ‘Leadership - Issues & Challenges’ for MBA students

8 - ‘Fundamentals of Entrepreneurship’ for B.Com [H] students of Utkal University, Odisha

9 - ‘Organizational Behaviour’ For B.Com [H] & B.Com program students of CBCS Course introduced by University of Delhi.

10 - ‘Communication & Documentation in Business’ for B.Com [H] students of CBCS Course introduced by University of Delhi.

11 - ‘Leadership and Team Development’ for B.Com [H] students of CBCS Course introduced by University of Delhi.

12 - ‘Entrepreneurship Development’, for B.Com program students of CBCS Course introduced by University of Delhi.

13 - She has also written a book of Moral Stories for children titled “Kathayaen jo Daadi Maa se Suni’’.

14 - Her latest story book, containing 34 moral stories is under publication, titled “Ek Baar ki Baat Hai----”, which has been penned for children. She does a lot of social work, she is a Hony. Secretary of “The Consumer Federation of India” and Vice-Chairperson of “South Delhi Citizen’s Council’’, which are NGOs dedicated to consumer and social causes. She has received the prestigious ‘Best Teacher Award’ from Delhi Government, in the Year 2019. She was also Coordinator of the IGNOU Centre, at her College, from March 2019 to December 2020. She has been an Acting Principal of the College on several occasions, from 2017 to 2019.

She can be reached, for more details at https://cadrabhamathuronline.com.

PREFACE

This Book “Business Organization & Management” , Paper number BC-DSC-1.1, Semester-I, Core [UGCF-2022], Course of University of Delhi, is effective from Academic Year 2022-23. The aim of the course is to develop a good understanding of Business Organizations, its functions and challenges of Management. The syllabus contains contemporary topics, which are not only, the need of the hour, but also very pertinent, in the rapidly changing scenario in the industry. It will help readers to understand the evolution of Management and apprehend its effect on future Managers. It will be interesting to learn, as to how Organizations adapt to an uncertain environment and decipher decision making techniques, in this rapidly changing environment. The book will also be helpful to students in getting an insight into the entrepreneurship aspects. Accordingly, the focus in the book has been kept on giving fundamental clarity of each topic, covered under the syllabus. The entire chapter scheme is, as per the prescribed syllabus. All units have been written in very simple language, to enable students to comprehend and learn faster. Use of examples, diagrams and detailing has been done, in order to make reading easy and interesting. Summary and Questions have been included at the end of each chapter, to enable students to prepare well for the exams. The entire endeavour is not only to help students in updating their knowledge but also in making them better informed.

Some tips for the Teachers/Students

[I] Make it a habit to read the business newspaper/watch business news, every day, to updates knowledge relating to changes taking place in the industry.

[II] Connect every topic with an example or a real case. Identify all aspects of Management Concepts and dimensions with that topic.

[III] Take up Case Studies at the end of every chapter, in order to enhance and facilitate the analytical abilities of the students.

[IV] Give practical assignments, which will help in giving fundamental clarity of the topic, to students.

[V] Students should be asked to carry out their personal SWOT analysis, in order to ascertain their Weaknesses & Strengths, to enable them to take advantage of their strengths & work hard to overcome their weaknesses.

[VI] Role Playing & Management Games would also be a good idea to build up interest of the students, in the subject.

While writing this book, my basic aim was to create a crisp material for B.Com students, which is compact, short and relevant from the syllabus and examina tion point of view. Being a Chartered Accountant by profession and a teacher by choice, I have had the good fortune of tasting both, the industry life and having teaching experience. With a vast experience, I feel that I could do justice to the content I have written in my book, as I have seen and experienced Management from close quarters, in my Industry as well as teaching life.

At this juncture, I profusely thank my daughter Anubha & my husband Mr. Anurag Mathur for lending immense moral support and several live examples for incorporating in the various chapters, as they are both Post Graduates from IIT-Roorkee. With their wisdom and analytical abilities, I could incorporate plenty of content given by them. Editing help has provided by my Son-in-law CA Nitin Mathur, who has immense managerial and organizing abilities. My grand-children Anvita and Avyukt have been soothing factors and stress busters, during the entire writing process.

I would thank my family & friends for being there & lending solid support and motivation to me in all my academic work. I would like to convey my heartfelt thanks to my Publisher Taxmann & especially Mr. Mitra Pal Yadav and Mr. Sumit for timely completion of the book. I would also acknowledge all the comfort and convenience, provided to me by my house helps Anita, Guddi and Beena. I would also thank my driver Ram for being there and making my travel convenient. Prof. K.P. Mathur, my father, my mentor and guide & my mother Smt. Bhagwati Mathur, have blessed me from heaven. At this juncture, I would fail in my duty, if I do not pay my respect to my Gurus - Shri Sant Raj Aradheya, Vaishali Baiji, Prof. NK Chadha, Dr. Rekha Dayal & my mentor guide & inspiration Prof. KV Bhanumurthy, for motivating me to write.

Last but not the least, I owe everything in life to LORD KRISHNA, who has showered HIS blessings, so that I could complete this venture in time.

I would appeal to all those, who refer this book, to send their views, reviews suggestions. I assure that the same will be incorporated, in the next edition, for improvement.

PROF. CA ABHA MATHUR FCA, M.Com., PGD [BM], DIP [Comp. Prog.], Ph. D Professor, Commerce Department Satyawati College

E-mail- aabham25@gmail.com abhamathur25@gmail.com abhamathur25@icai.org

webpage : https://cadrabhamathuronline.com/

ACKNOWLEDGEMENTS

At this juncture, when the book titled “Business Organization & Management’’ for B.Com Program, Paper - BC - DSC - 1.1 Semester-I, students of the UGCF Course of University of Delhi, effective from 2022-23, will reach the students and teachers shortly, I feel, it is the opportune moment for acknowledging the immense support, which I have received from my friends belonging to teaching fraternity from across several colleges and departments. I will fail in my duty, if I do not extend my gratitude to my family, Dr. Rekha Dayal, my elder sister, in particular, a wonderful human being, who superannuated from Jesus & Mary College recently. I extend my gratitude also to all the following esteemed family, friends and colleagues from across Colleges & Department of Commerce.

1 Prof. Ajay Kumar Singh Department of Commerce

2 Prof. RK Singh Department of Commerce

3 Prof. Madan Lal Department of Commerce

4 Prof. Ritu Sapra Department of Commerce

5 Prof. Abha Shukla Department of Commerce

6 Prof. Amit Kumar Singh Department of Commerce

7 Dr. Jameel Ahmad Satyawati College

8 Dr. Rita Negi Satyawati College

9 Mrs. Sandheya Taneja Satyawati College

10 Dr. Renu Jain Satyawati College

11 Mrs. Sunita Jindal Satyawati College

12 Dr. Amla Gaur Satyawati College

13 Mrs. Sonia Prakash Satyawati College

14 Dr. Radheyasham Bhardwaj Satyawati College

15 Dr. Nitin Naveen Satyawati College

16 Dr. Manju Dubeian Satyawati College

17 Dr. Anjali Chandra Satyawati College

18 Dr. Sarfaraz Ahmad Satyawati College

19 Dr. Ashutosh Goswami Satyawati College 20 Dr. Anjali Daryal Satyawati College 21 Dr. Vandana Goswami Satyawati College 22 Dr. Raj Kumar Satyawati College 23 Mr. Manoj Negi Satyawati College 24 Dr. Shweta Kalra Satyawati College 25 Dr. Tarannum Aamir Satyawati College 26 Mr. Vivek Satyawati College 27 Ms. Sonam Kumar Gupta Satyawati College 28 Ms. Vaishali Satyawati College 29 Ms. Aiman Satyawati College 30 Ms. Bhamini Garg Satyawati College 31 Ms. Kangan Jain Satyawati College 32 Ms. Vidhu Vats Satyawati College 33 Ms. Nikita Dureja Satyawati College 34 Ms. Neha Rani Satyawati College 35 Prof. Anju Seth Satyawati College 36 Dr. Mridula Bhatia Satyawati College 37 Prof. Avdesh Kumar Satyawati College 38 Dr. Poonam Singh Satyawati College 39 Dr. Shashi Shekhar Singh Satyawati College 40 Dr. Pradeep Kumar Satyawati College 41 Mr. Lajpat Rai Satyawati College 42 Prof. Vibha Mathur Jesus and Mary College 43 Prof. Dinesh Adhlakha Jesus and Mary College 44 Dr. Lissy Jose Jesus and Mary College 45 Prof. Reena Marwah Jesus and Mary College 46 Dr. Nishwan Bhatia Jesus and Mary College 47 Dr. Shruti Mathur Venkateswara College 48 Prof. Sheeba Panda Satyawati College [Eve.] 49 Prof. Rajiv Verma Satyawati College [Eve.] 50 Dr. Vibha Garg Satyawati College [Eve.] 51 Dr. Aamir Satyawati College [Eve]

52 Dr. Ravi Gupta Shri Ram College of Commerce 53 Dr. Namita Jain Shri Ram College of Commerce

54 Dr. Sarvesh Bandhu Shri Ram College of Commerce

55 Dr. Bhavya Bansal Shri Ram College of Commerce 56 Dr. Manju Lata Kalindi College 57 Dr. Anita Verma Kalindi College 58 Dr. Rakhee Chauhan Kalindi College 59 Dr. Nidhi Kalindi College 60 Dr. Gunjan Kalindi College 61 Dr. Vinod Kumar Khalsa College 62 Dr. Bibhu Khalsa College 63 Prof. Vimal Rarh Khalsa College 64 Dr. Gurjit Kaur Khalsa College 65 Prof. Neenu Kumar Aditi Mahavidyalaya 66 Dr. Ritu Sharma Aditi Mahavidyalaya 67 Dr. Jyoti Gupta Bhagat Singh College 68 Dr. Ankita Dayal Singh College 69 Dr. Bhupider Kaur Guru Gobind Singh College 70 Dr. Gurmider Kaur Guru Gobind Singh College 71 Dr. D.D. Chaturvedi Guru Gobind Singh College 72 Dr. Vibha Laxmibai College 73 Dr. Raj Sethi Laxmibai College 74 Dr. Sunita Gupta Gargi College 75 Dr. Raj Kumari Gargi College 76 Dr. Geeta Kichlu Gargi College

77 Prof. Padma Keshav Mahavidyalaya 78 Prof. Manoj Keshav Mahavidyalaya 79 Prof. Pradeep Kumar Keshav Mahavidyalaya 80 Prof. Namita Rajput Aurobindo College 81 Dr. Prachi Jain Maitreyi College 82 Dr. Anshika Singh Rajdhani College 83 Dr. Vinita Kaul I. P. College 84 Dr. Vandana Sharma Bhagini Nivedita College

85 Dr. Meenakshi Bharati College 86 Dr. Roopa Johri Bharati College 87 Dr. Mridula Jha Motilal Nehru College 88 Dr. Monika Saini PGDAV College 89 Dr. Neerza PGDAV College 90 Dr. Ritu Gupta PGDAV College 91 Dr. N. K. Aggarwal School of Open Learning 92 Dr. Varinder School of Open Learning 93 Dr. Preeti Singh Director, JIMs, Vasant Vihar 94 Dr. Jayakar Sodagiri Sri Sri University 95 Dr. Jamal Bengal University 96 Dr. Ekta kharbanda Delhi Skill and Entrepreneurship University 97 Dr. Preeti Bedi Delhi Skill and Entrepreneurship University

SYLLABUS

Unit 1: Introduction

Role of organizations and management in our lives; Nature and Functions of Management (An overview); Managerial Competencies, Ownership forms; Business formats - Brick & Mortar; Click; Brick & Click; E-commerce; Fran chising; Outsourcing.

Unit 2: Business Environment and Entrepreneurship

Meaning and layers of Business Environment (micro/immediate, meso/inter mediate, macro and international); Business ethics and social responsibility; Entrepreneurship and its relevance, Business and social entrepreneurship as a process of opportunity/problem; Micro, Small and Medium Enterprises; Government Policy regarding MSMEs.

Unit 3: Planning and Organizing

Strategic Planning – Business and Corporate Level Strategies; Decision-mak ing process and techniques; Organizing, Formal and Informal Organizations, Centralization and Decentralization, Organizational structures – Divisional, Product, Matrix, Project and Virtual Organization.

Unit

4: Directing and Controlling

Motivation- needs (including Maslow’s theory), incentives, Equity and two-factor theory (Herzberg); McGregor Theory X and Theory Y; Leadership – Leadership Styles, Transactional vs. Transformational Leadership; Followership – meaning, importance and Kelley’s Followership Model; Communication – New trends and directions (Role of IT and social media); Controlling –Techniques of Controlling Relationship between planning and controlling.

Unit 5: Indian Ethos and Contemporary Issues in Management

Indian Ethos for Management: Value-Oriented Holistic Management; Learning Lessons from Bhagavad Gita and Ramayana. Business Process Reengineering (BPR), Learning Organization, Six Sigma, Supply Chain Management, Subal tern Management Ideas from India; Diversity & inclusion; Work-life Balance; Freelancing; Flexi-time and work from home; Co-sharing/Co-Working.

CONTENTS

PAGE

About the Author I.5 Preface I.7 Acknowledgements I.11 Syllabus I.15

UNIT 1 INTRODUCTION 1

NATURE AND FUNCTIONS OF MANAGEMENT

1.1 Business - Meaning, Concept & Nature 1.3 1.1.1 The precise meaning of Business 1.4 1.1.2 Meaning & Concept of Management 1.4 1.1.3 Definitions 1.5 1.1.4 Characteristics of Management 1.6

1.2 Significance of Management 1.7

1.3 Role of Organizations and Management in our lives 1.9 1.3.1 Role of Organizations 1.9 1.3.2 Role of Management 1.10

1.4 Nature of Management 1.12 1.4.1 Management as an Art, Science and Profession 1.13 1.4.2 Management and Administration 1.15

1.5 Functions of Management 1.17 1.5.1 Planning 1.19 1.5.2 Organising 1.25

PAGE

1.5.3 Staffing & Directing Functions 1.33 1.5.4 Coordinating 1.41 1.5.5 Controlling 1.47

1.6 Competencies of Managers 1.50 1.6.1 Competencies for 21st Century HR Managers 1.53 1.6.2 Competencies of Managers at a glance 1.54 1.7 Case Study Method 1.54 SUMMARY 1.55 2

FORMS OF BUSINESS

2.1 Ownership Forms 2.1 2.1.1 Sole Proprietorship 2.2 2.1.2 Partnership 2.3 2.1.3 Limited Liability Partnership (LLP) 2.5 2.1.4 Limited Liability Company (LLC) 2.7 2.1.5 Private Limited Company 2.8 2.1.6 Public Limited Company 2.10 2.1.7 Unlimited Company 2.12 2.1.8 Joint Hindu Family/Hindu Undivided Family [HUF] 2.13 2.1.9 Cooperatives 2.15 2.1.10 One-Person Company 2.17 2.1.11 Non-profit Corporation 2.18 2.1.12 Choosing an appropriate Business Form 2.20

2.2 Brick & Mortar Business Format 2.20 2.3 Click Business Format 2.22 2.4 Brick & Click Business Format 2.25 2.5 E-Commerce 2.27 2.6 Franchising 2.34 2.6.1 Four Ps of Franchising 2.35 2.6.2 Features of Franchising 2.36 2.6.3 Types of Franchises 2.37

CONTENTS PAGE

2.6.4 Need for Franchising 2.38

2.6.5 Steps in setting up a Franchise 2.38

2.6.6 Advantages of Franchising 2.38 2.6.7 Disadvantages of Franchising 2.39

2.7 Outsourcing 2.39

2.7.1 Types of Outsourced Work 2.39 2.7.2 Need for Outsourcing 2.40 2.7.3 Advantages of Outsourcing 2.40 2.7.4 Disadvantages of Outsourcing 2.41

SUMMARY 2.41

UNIT 2

BUSINESS ENVIRONMENT AND ENTREPRENEURSHIP 3 BUSINESS ENVIRONMENT

3.1 Meaning and layers of Business Environment 3.3

3.1.1 Definitions 3.3 3.1.2 Significance of Environmental Study 3.4 3.1.3 Environmental Analysis 3.5 3.1.4 Factors affecting the Competitive Position 3.5 3.1.5 Techniques of Environmental Analysis 3.6

3.2 Types of Business Environment 3.11

3.2.1 Micro/Immediate Business Environment 3.11 3.2.2 Meso/Intermediate Business Environment 3.13 3.2.3 Macro Business Environment 3.14 3.2.4 International Business Environment 3.15 3.3 Business Ethics 3.20

3.3.1 Concept of Business Values and Ethics 3.21 3.3.2 Types of Business Ethics 3.22 3.3.3 Modes of Business Ethics 3.24 3.3.4 Measures of Ethical Behaviour 3.24 3.3.5 Need for Businesses Ethics 3.25 3.3.6 Examples of Businesses that follow Ethics 3.25

3.4 Social Responsibility 3.26

3.4.1 Concept and Meaning of Corporate Social Respon sibility 3.26

3.4.2 The key Components of CSR 3.28 3.4.3 Principles of Corporate Social Responsibility and Business Ethics 3.29 3.4.4 Advantages of Corporate Social Responsibility [CRS] 3.30 SUMMARY 3.30 4

ENTREPRENEURSHIP

4.1 Entrepreneurship-Meaning, Nature & Concept 4.1 4.1.1 History of Entrepreneurship 4.2 4.1.2 Features of Entrepreneurship 4.2 4.1.3 Functions of Entrepreneurship 4.3 4.1.4 Steps in Entrepreneurship Process 4.5 4.1.5 Pros & Cons of Entrepreneurship 4.6 4.1.6 Need and Relevance of Entrepreneurship 4.6 4.2 Business/Commercial Entrepreneurship 4.7 4.2.1 Features of Business/Commercial Entrepreneurship 4.8 4.2.2 Advantages and Disadvantages of Business/Commer cial Entrepreneurship 4.8

4.3 Social Entrepreneurship 4.8 4.3.1 History of Social Entrepreneurship 4.9 4.3.2 Components of Social Entrepreneurship 4.9 4.3.3 Features of Social Entrepreneurship 4.10 4.3.4 Objectives of Social Entrepreneurship 4.11 4.3.5 Types of Social Entrepreneurships 4.11 4.3.6 Benefits and Disadvantages/Challenges of Social Entrepreneurship 4.12 4.3.7 Comparison between Social and Commercial Entre preneurship 4.13

4.4 Micro, Small and Medium Enterprises 4.13 4.4.1 Features of MSMEs 4.14

PAGE

4.4.2 MSME Classification 4.14

4.4.3 Micro Enterprises 4.14

4.4.4 Small & Medium Enterprises 4.15

4.4.5 Challenges faced by the MSMEs 4.16

4.4.6 Endeavours/Features of the Ministry of MSME (MoMSME) 4.16

4.4.7 Key Entities that work under the MoMSME 4.17 4.4.8 Opportunities in MSMEs 4.17

4.5 Government Policy regarding MSMEs 4.18

4.5.1 Schemes offered to MSMEs under Government policy 4.18 4.5.2 Loans and Subsidies to MSMEs 4.19

SUMMARY 4.20

UNIT 3 PLANNING AND ORGANIZING 5

STRATEGIC PLANNING

5.1 Strategic Planning 5.3

5.1.1 Steps in the Strategic Planning Process 5.3 5.1.2 Strategic Planning Tools 5.4 5.1.3 Advantages of Strategic Planning 5.5 5.1.4 Disadvantages of Strategic Planning 5.5

5.2 Business and Corporate Level Strategies 5.6

5.2.1 Difference between Business Strategies and Corporate Strategies 5.6

5.2.2 Growth Strategies 5.7

5.3 Decision-Making 5.12

5.3.1 Definitions of Decision-Making 5.13

5.3.2 Characteristics of Decision Making 5.13 5.3.3 Type of Decisions 5.14 5.3.4 Concept of Rationality in Decision-Making 5.15

5.3.5 Challenges for a Decision Maker 5.16 5.3.6 Advantages and Disadvantages of Decision Making 5.16

5.4 Steps in DMP/DM Process 5.17 5.5 Decision-Making Techniques 5.18

SUMMARY 5.21 6 ORGANIZATIONAL

STRUCTURES

6.1 Organizing 6.1 6.1.1 Features of Organizing 6.1 6.1.2 Steps in Organizing 6.2 6.1.3 Principles of Efficient Organizing 6.3 6.2 Formal and Informal Organizations 6.4 6.2.1 Formal Organization 6.5 6.2.2 Informal Organization 6.6 6.2.3 Difference between Formal and Informal Organizations 6.9 6.3 Centralization and Decentralization 6.10 6.3.1 Centralization 6.10 6.3.2 Decentralization 6.11 6.3.3 Difference between Centralization and Decentralization 6.12

6.4 Organizational Structures 6.13 6.4.1 Divisional Organizational Structure 6.13 6.4.2 Product Structure 6.15 6.4.3 Project Structure 6.16 6.4.4 Matrix Structure 6.18 6.4.5 Virtual Organization Structure 6.19 6.4.6 Hierarchical Organizational Structure 6.22 6.4.7 Functional Organizational Structure 6.22 6.4.8 Horizontal or flat Organizational Structure 6.23 6.4.9 Team-based Organizational Structure 6.23 6.4.10 Flatarchy Organizational Structure 6.24 SUMMARY 6.24

UNIT 4

DIRECTING AND CONTROLLING 7 MOTIVATION

7.1 Motivation 7.3

7.1.1 Definitions of Motivation 7.4 7.1.2 Methods of Motivation 7.4 7.1.3 Significance of Motivation 7.6 7.1.4 Needs 7.6 7.1.5 Incentives 7.7

7.2 Maslow’s Need Hierarchy Theory 7.9 7.2.1 Assumptions of the Theory 7.11 7.2.2 Merits of the Need Hierarchy Theory 7.11

7.3 Equity Theory 7.12

7.3.1 The Inputs and Outputs of the Equity Theory 7.12 7.3.2 Assumptions of the Theory 7.13 7.3.3 Consequences of Inequity 7.13 7.3.4 Advantages of Equity Theory 7.13 7.3.5 Disadvantages of Equity Theory 7.14

7.4 Herzberg’s Two-Factor Theory 7.14

7.4.1 Hygiene Factors and Motivators 7.15 7.4.2 Combinations of Hygiene factors and Motivators 7.15 7.4.3 Merits of Two Factor Theory 7.16 7.4.4 Limitations of the Two Factor Theory 7.17

7.5 Douglas McGregor’s Theory X and Theory Y 7.17

7.5.1 Assumptions of Theory X & Theory Y 7.18 7.5.2 Application of the Theory Y 7.18 7.5.3 Advantages & Disadvantages of Theory X & Theory Y 7.19 7.5.4 Carrot & Stick Approach 7.20

7.6 Leadership 7.20

7.6.1 Definitions on Leadership 7.21

7.6.2 Some interesting facts on Leadership 7.22 7.6.3 Leadership Lessons from Napoleon 7.22 7.6.4 Leadership Skills 7.23 7.6.5 Traits/Characteristics and Importance of Women Leaders 7.24 7.6.6 Leadership Styles 7.24 7.6.7 Situational Leadership 7.28

7.7 Transactional Leadership 7.29 7.7.1 Dimensions of Transactional Leadership 7.29 7.7.2 Assumptions of Transactional Theory 7.30 7.7.3 Objectives and Role of Transactional leaders 7.31 7.7.4 Characteristics of Transactional Leadership 7.31 7.7.5 Advantages of Transactional Leadership 7.31 7.7.6 Disadvantages of Transactional leadership 7.32 7.7.7 Examples of Leaders who follow Transactional Leadership 7.32

7.8 Transformational Leadership 7.32 7.8.1 Characteristics of Transformational Leadership 7.33 7.8.2 Advantages of Transformational Leadership 7.34 7.8.3 Disadvantages of Transformational Leadership 7.35 7.8.4 Components to Transformational Leadership 7.36 7.8.5 Important Personality Traits of Transformational Leaders 7.37 7.8.6 Difference between Transactional and Transforma tional Leaders 7.37

7.9 Followership - Meaning 7.37 7.9.1 Qualities of Good followers 7.38 7.9.2 Importance of Followership 7.39 7.9.3 Kelley’s Followership Model 7.40 SUMMARY 7.41

8

LEADERSHIP & COMMUNICATION

8.1 Communication 8.1

8.1.1 Definition of Communication 8.1 8.1.2 Characteristics of Communication 8.2 8.1.3 Importance of effective Communication in an Organization 8.3 8.1.4 Classification of Communication 8.3

8.2 New Trends and Directions in Communication (Role of IT and Social Media) 8.9

8.2.1 Barriers to Digital Communication 8.13 8.2.2 Cyber Security Risks and Mode of Prevention 8.14

8.3 Controlling 8.16

8.3.1 Steps in Controlling Function 8.17 8.3.2 Types of Control 8.18

8.4 Techniques of Controlling 8.19 8.4.1 Traditional Techniques 8.19 8.4.2 Modern Techniques of Controlling 8.23

8.5 Relationship between Planning and Controlling 8.31 8.5.1 Role of Communication in Control 8.32

SUMMARY 8.32

UNIT 5

INDIAN ETHOS AND CONTEMPORARY ISSUES IN MANAGEMENT 9

INDIAN ETHOS AND CONTEMPORARY ISSUES IN MANAGEMENT

9.1 Indian Ethos for Management 9.3

9.1.1 Dimensions of Indian Ethos 9.4

9.1.2 Values & Ethics derived from Indian Ethos 9.5 9.1.3 Contemporary Issues in Management 9.6 9.1.4 Future challenges of Managers 9.8

9.1.5 Emerging Principles of Management 9.8 9.1.6 Factors reshaping and redesigning Management Perspective 9.9

9.2 Learning Lessons from Shri Bhagavad Gita 9.9 9.2.1 Qualities & Virtues of Lord Krishna, which should be imbibed 9.10 9.2.2 Some of the relevant management learnings from Shri Bhagavad Gita 9.11 9.3 Learning Lessons from Shri Ramayana 9.14 9.4 Business Process Re-engineering (BPR) 9.16 9.4.1 BPR Process 9.16 9.4.2 Advantages and Disadvantages 9.17 9.5 Learning Organization 9.18 9.5.1 Characteristics of Learning Organization 9.18 9.5.2 Advantages and Disadvantages of Learning Organi zation 9.19

9.6 Six Sigma 9.20 9.6.1 Principles of Six Sigma 9.20 9.6.2 Six Sigma Methodology 9.21 9.6.3 Six Sigma Tools for Data Analysis 9.23 9.6.4 Advantages and Disadvantages of Six Sigma 9.24 9.7 Supply Chain Management 9.25 9.7.1 Components of SCM 9.25 9.7.2 Advantages and Disadvantages of SCM 9.26 9.8 Concept of Subaltern India 9.27 9.8.1 Characteristics of a Subaltern 9.27 9.8.2 Subaltern Management Ideas from India 9.28 9.8.3 Some Success Stories of the Subalterns 9.28 9.9 Diversity & Inclusion 9.29 9.9.1 Gender Sensitization 9.30 9.9.2 Modes Managing Workforce Diversity 9.31 9.9.3 Advantages of Workforce Diversity & Inclusion 9.31 9.9.4 Challenges of Workforce Diversity & Inclusion 9.32

9.10 Work-Life Balance 9.32 9.10.1 Objectives of Work Life Balance 9.33 9.10.2 Modes/Techniques of improving Work Life Balance 9.33 9.10.3 Commonly adopted Work-Life Balancing Measures by Company & Employees 9.35 9.10.4 Perception of Work Life Balance of Males and Females 9.35 9.10.5 Advantages of improved Work-Life Balance 9.36 9.11 Freelancing 9.37

9.11.1 Advantages and Disadvantages of Freelancing 9.37 9.12 Flexi-Time 9.37 9.12.1 Types of Flexi-Time Modes 9.38 9.12.2 Advantages and Disadvantages of Flexi-Time 9.38 9.13 Work from Home 9.39 9.13.1 Advantages and Disadvantages of WFH 9.40 9.14 Co-Sharing/Co-Working 9.40 9.14.1 Types of Co-Working Spaces 9.41 9.14.2 Features of Co-Working facilities 9.41 9.14.3 Advantages and Disadvantages of Co-Working 9.42 SUMMARY 9.42

Leadership & Communication 8

CHAPTER OUTLINE

After studying this chapter the students will be well versed with the concepts of u Meaning, nature and concept of Communication u Barriers to communication u Methods to minimize barriers u New Trends and Directions in communication u Techniques of Controlling u Relationship between Planning and Controlling

8.1 Communication

The word Communication is derived from Latin word ‘COMMUNIS’ which means COMMON in English. Communication is imperative to organizations as it helps the management to convey business plans and coordinate actions to attain objectives. It is a process in which one person expresses the ideas, emotions, thoughts to another. In other words, it assists interaction among people and enables one person to share the information to another. Effective communication is a precondition for executing managerial policies, as well as for controlling everyday activities, through human resources. Managerial staff focuses on communicating the information more effectively, so that goals can be easily attained. Managers who are good communicators, are likely to influence others towards common goals.

8.1.1 Definition of Communication

Let us now consider some definitions to understand what communication is:

(i) According to Cambridge Dictionary “Communication means to share information with others by speaking, writing, moving your body, or using other signals”.

(ii) According to Newstrom & Keith Davis “Communication is the transfer of information form one person to another. It is a way of reaching others by transmitting ideas, feelings, thoughts, facts and values”.

UNIT 4 : DIRECTING AND CONTROLLING

(iii) According to Theo Haiman “Communication means the process of passing information and understanding from one person to another”.

(iv) According to Koontz and Weihrich “Communication is the transfer of information from a sender to a receiver, with the information being understood by the receiver”.

(v) According to Keith Davis “Communication is a process of passing information and understanding from one person to another”.

8.1.2 Characteristics of Communication

From the above definitions, features of communication that can be drawn, which are as follows:

(i) Interaction among two or more persons: In communication process, it is essential that there should be presence of at least two persons as no individual can transfer ideas to oneself.

(ii) Exchange of Thoughts : Communication takes place when some information is passed from one person to another. The process is said to be completed when one person exchanges his/her thoughts/ideas to another.

(iii) Common Understanding: It is very crucial that the receiver should comprehend the message in the same sense in which it is being conveyed. Otherwise it would result in miscommunication.

(iv) Objective of Communication: The main purpose of the transmitting information is to make receiver understand the message and respond accordingly.

(v) Dynamic Process: It is not a onetime rather evolving process. It keeps on changing according to the nature and purpose of message.

(vi) Social Process: It is very important process for the survival of the human being. It is not possible to live in isolation or without interacting with others.

(vii) Continuous Process: It is an ongoing process. In every field of business, communication is constantly required to maintain professional and personal relationships, so that business goals can be attained.

(viii) Pervasive in nature: It is present in all types of organization. Without communication, no organization can execute its policies. It is inevitable in nature.

(ix) It can be direct or indirect: Communication can happen directly when sender and receiver are interacting face to face. It can also take place

indirectly through other means, when sender and receiver are not present at a common place.

(x) Oral, written or symbolic: It is a process which can take place either in verbal, written or symbolic form.

8.1.3 Importance of effective Communication in an Organization

The following are the benefits of incorporating effective communication in the organization:

(i) Creates Relationships - Communication helps individuals to develop encouraging and constructive relationships with peers, through effective communication.

(ii) Assists Innovation - It provides an environment to the employees to express their ideas, thoughts, and imaginations freely. It results in cultivation of innovative background, where employees can share their potential ideas.

(iii) Constructs efficient Team - The organizations, that promote open communication result in creation of constructive teams. Open communication environment encourages employees to work towards common goals.

(iv) Disseminates Information It helps the managers to keep employees well informed about their roles and duties. This also facilitates managers to get feedback from employees, leading to productive relationships within the organization.

(v) Facilitates Decision Making - Communication helps in gathering information and data that facilitates decision making process. It provides necessary information to make decisions.

(vi) Motivates Employees - Open communication environment builds confidence among employees and helps in removing misunderstandings and conflicts among employees.

(vii) Action Oriented It provides basis for taking action. It supplies information which is essential for making plans and taking actions.

(viii) Contributes towards Organizational Success - Absence of proper communication in the organization hampers its growth and success.

8.1.4 Classification of Communication

In every organization, there are broadly two types of communication. The classification is done on the basis of channels of communication. The path through which information flows from one source to another is known as

8.4

UNIT 4 : DIRECTING AND CONTROLLING

channel of communication. Communication can be of two types namely, Formal Communication and Informal Communication.

(i) Formal Communication Formal communication implies official exchange of information. The course of communication is an intentional exercise. This results in easy flow of information to the end user without any obstruction. It involves flow of information through appropriate communication channel. The following are the types of formal communication:

u Verbal Communication - Verbal Communication is a type of oral communication wherein the message is transmitted through the spoken words. Here the sender gives words to his feelings, thoughts, ideas and opinions and expresses them in the form of speeches, discussions, presentations, and conversations.

u Nonverbal Communication - Nonverbal Communication (NVC) is the transmission of messages or signals through a nonverbal platform such as eye contact, facial expressions, gestures, posture, and body language.

(ii) Informal Communication

Informal communication is casual communication between coworkers in the workplace. It is unofficial in nature and is based in the informal, social relationships that are formed in a workplace outside of the normal hierarchy of business structure. The informal communications are based on the personal or informal relations such as friends, peers, family, club members, etc. and thus is free from the organizational conventional rules and other formalities. In the business context, the informal communication is called as a “grapevine” as it is difficult to define the beginning and end of the communication.

8.1.4.1 The Process of Communication

The process of communication is dynamic in nature as it starts with the conceptualization of ideas, thoughts by the sender who transfers the message to the recipient and the recipient provides the feedback to the sender within specified time period. The process is said to be completed when the receiver understands and interprets the message correctly. In the communication process, two or more persons are included and there are some steps that take place in order to ensure an effective and meaningful communication. Following steps are taken in order to complete the process of communication.

(i) Sender: The first and foremost step in communication process begins with the person, who wants to transfer some ideas, thoughts, information or emotion, to some other person. Sender is the communicator of the message. Sender generates and develops ideas and then encodes those ideas for transmission towards the recipient. The subject matter of communication, such as ideas, opinions, suggestions etc., needs to be converted into some tangible form. For that purpose, encoding is done by converting ideas into verbal or non-verbal forms like pictures, words, sentences etc.

Figure : Process of Communication

(ii) Transmission of Message - The second step involves transfer of message from communicator to the recipient, known as the Receiver. Message can be transmitted by various formal or informal channels, such as telephone, telegraph, email, SMS, video calling etc. It passes on the information from sender to receiver and thus acts as a connector between both the parties.

(iii) Receiver - In the next step, message reaches to the recipient who is generally the receiver of the message and to whom information is intended to be passed on. Once the message is received, he/she makes efforts to decode the information. During decoding process, receiver tries to translate the symbols decrypted by the communicator and interprets the meaningfulness of the message. The receiver should understand the message in the same spirit, that is intended by the sender. After

UNIT 4 : DIRECTING AND

CONTROLLING understanding of the message, receiver can accept or reject the message and can use the information for further actions.

(iv) Feedback - It is the last step, but it is the essence of communication process. It is given by the recipient to the communicator, conveying that the message is properly decoded, understood and interpreted. It provides an insight to the sender about the effectiveness of the communication process. Communication is a two way process but sometimes there are some disturbances during the process in the form of Noise

8.1.4.2 Barriers to Communication

There are various impediments to communication, which can occur at any point during communication process. The barriers could be due to semantics, organizational or personal reasons. Some of the most experienced barriers are being explained, briefly below:

Organizationa l Barriers

Organizational Barriers

Personal Barriers Semantic Barriers Other Barriers

Communication Barriers

Figure

: Communication Barriers

(i) Organizational Barriers - There are some barriers, which take place within the company. These occur in the form of the following:

Complex Organizational Policies: There are some policies, which are very difficult to understand and interpret. These may result in delay in comple tion of work.

Inadequate Facilities: For transmit ting the message, different facilities required are internet, telephone connectivity, paper, and pen. Non accessibility results in delay of message transmission.

Complex and Complicated levels of Management: The organizations having complex hierarchy, result in delayed communication and message distortion.

Poor Communication Policy: Organi zations lacking in free communication policy, face bad social culture where employees hesitate to communicate.

(ii) Personal Barriers: There are some barriers that take place within an individual. These occur in the form of the following:

Emotional Disturbance: Emotional imbalance, such as hostility, fear, an ger can covey wrong meanings to the message.

Personality Differences: Each person has unique personality. Sometimes seniors have superiority complex, which prevents them from engaging in communication with them.

Apprehension: Apprehension about knowing little, may also create barrier in communication.

Low Confidence: Low level employees opinions and suggestions are ignored by the management as result employees feel low in confidence

Absence of Mind: Inattention during communication process creates hindrance in conveying the correct message. Sometimes people are lost somewhere or preoccupied, during conversation due to illness, stress, family issues etc.

(iii) Semantic Barriers: There are some barriers that take place due to complexity of language. These occur in the form of the following:

Usage of ambiguous words: Ambigu ous sentences and words give different meaning to the communication. It leads to ineffectiveness in the communica tion process.

Usage of Technical Phrases: It sometimes becomes difficult for the receiver to comprehend the message, if technical words and phrases are used.

(iv) Other Barriers

Perceptual Barrier - Different per ception of things by different people.

Usage of different language: When sender sends the message in a language which is not understood by the receiver then it leads to create a barrier in the communication

Wrongly Articulated Message: This barrier occurs due to badly expressed message, like wrong words and repetitiveness

Inattention - Not paying desired at tention also hampers communication.

Personal Weakness - Sometimes sheer distrust and fear may prevent effective communication.

Narrow/Closed Mind - Receiver may be resistant to not accept message or accept partially due to rigidity of mind.

Semantic Problems All languages have an in built semantic problem, as words used may have more than one meaning.

Resistance to Communicate The receiver may not be willing to com municate.

Insensitive Listening Selective lis tening or multi-tasking while the sender is sending message, also becomes a barrier in communication.

UNIT 4 : DIRECTING AND CONTROLLING

Structural Bottle necks: Too many intermediaries serve as a barrier in Organization Structure

Premature Evaluation – It means jumping to conclusion, even before the other person has finished com munication.

Phonetic Barrier-This barrier is relat ed to how words may sound, different, when spoken fast or heard from a distance.

Differential Assumptions - When Sender takes certain assumption & does not share with the receiver, result in confusion.

Wrong Channel of CommunicationSelection of wrong media, time pres sure disturbance in line etc.

8.1.4.3 Ways to minimize Communication Barriers

There are some techniques to overcome abovementioned communication barriers, however, these can be minimized only, but cannot be removed completely, by following measures:

(i) It is very essential to maintain clarity in thoughts. Systematic and clear thoughts help in conveying the message correctly.

(ii) It is required to create conducive environment that builds conviction and assurance among the parties.

(iii) There should be proper coordination between speech and gestures. Otherwise it sometimes misleads the recipient.

(iv) Usage of lucid and clear language is always appreciable.

(v) Transmission of message should be in a language that is well understood by the recipient.

(vi) Organizations should form policies which encourage all levels of employees to communicate and express their thoughts, ideas, and feelings.

(vii) It always advisable to remain active and attentive during communication, which means that effective listening should be adopted.

(viii) Overloading of information should be avoided, as it may become difficult for the receiver to filter the information.

(ix) Communicate should be made in a noiseless environment.

(x) Organizations should follow the format of short communication chains, as it helps in maintaining clarity and there are no chances of distortion of information.

(xi) Organizations should ensure availability and accessibility of all the facilities that are needed for transmission of message.

(xii) It is important to control emotions, during communicating the message.

(xiii) Feedback must be ensured, as it plays an indispensable role in an effective communication.

(xiv) Sender should be clear or intent, content and context of communication.

(xv) Safeguards should be built in communication system to prevent transfer of conflicting and confusing information.

(xvi) Channel should be straight forward and short to minimize distortion and delay.

(xvii) Message and common medium should matched with messages.

(xviii) Internal environment of trust, goodwill, understanding and transparency should be built.

(xix) All operational units should be efficiently connected with communication channels.

(xx) Encourage upward communication.

(xxi) Patient and effective listening should be adopted by the manager.

(xxii) Encourage participative process.

(xxiii) Communication system should be flexible.

(xxiv) Strong MIS should be introduced to make communication effective.

(xxv) Long and complex messages must be in writing to avoid distortions, (xxvi) Caution should be exercised while communicating with semi-literates/ non-professional/persons working at lower level.

8.2 New Trends and Directions in Communication (Role of IT and Social Media)

There has been a revolution in the world of communication world over and in India, particularly, after the Government emphasized on the importance of digital communication. Also after the Covid-19 pandemic, the need for digital communication grew and new possibilities were explored. Since then, every single minute, there is an effort, somewhere, in the world to find new and better

UNIT 4 : DIRECTING AND CONTROLLING

ways to achieve more efficient communication. Trends in communication seem to be moving so fast that it can be hard to keep up pace with them. Times are changing and the way we communicate in business has rapidly developed too. From telephones to cellular phones, and now the Internet, we are now more connected than ever before. The digital revolution has significantly changed business communication dimensions. The latest tools in online communications, help the business to move towards a future, where businesses have all the resources needed to provide their teams exchange of ideas, information, and input even, without having physical offices. For this, teams are encouraged to communicate more, as communication processes has become more seamless. And, teams which communicate more, are more likely to collaborate well and finish their assignments in the required quality and time frames. Following are some new tools and techniques being used to enhance digital communication.

(i) Faceless, Paperless & Cashless Operations - By the year 2024, the idea is to go fully faceless, cashless and paperless. Many researchers have called it a death of paper in the near future. The paperless future promised decades ago, has made substantial progress over the past two years, mainly due to the pandemic. A host of “no-contact” protocols and technologies have suddenly become familiar. From Omni channel, contactless delivery and curbside pickup, to QSR codes, Apple Pay, and workflow software, the momentum has swung irrevocably away from paper.

(ii) Smart Documents - Smart documents also known as intelligent documents. These are files programmed with functions, which help the user to carry out work tasks. For example, Microsoft Office programs such as Word and Excel can be programmed with smart document solutions such as formulas and templates to speed up work solutions.

(iii) Complete Automation - Most Communication is being made online. Even the meetings and conferences are mostly on the video conferencing mode or dual mode. Many offices have gone ‘Paper Less’ in the recent times, by boasting of being completely automated..

(iv) Artificial Intelligence - AI is shaping customer Service in a big way, in the recent times. AI is the ability of a digital computer or computercontrolled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from past experience.

(v) Omni Channel Communication - Omni channel is a multichannel approach to sales that seeks to provide customers with a seamless

shopping experience, whether they are shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store. It is an approach that brings about integration between distribution, promotion and communication channels on the back end.

(vi) Augmented Reality - Augmented reality (AR) is the real-time use of information in the form of text, graphics, audio and other virtual enhancements integrated with real-world objects. It is this “real world” element that differentiates AR from virtual reality. AR integrates and adds value to the user’s interaction with the real world, versus a simulation. Customers are given a real feel with Augmented Reality.

(vii) Virtual Reality - VR is not used just for video games anymore. It is the use of computer technology to create a simulated environment. Its most immediately-recognizable component is the head-mounted display (HMD). Human beings are visual creatures, and display technology is often the single biggest difference between immersive Virtual Reality systems and traditional user interfaces. Major players in Virtual Reality include HTC Vive, Oculus Rift and PlayStation VR (PSVR)

(viii) Immersive Virtual Reality - This is the technology, which provides almost real and/or believable experience in a synthetic or virtual way. The goal of Immersive VR is to completely immerse the user inside the computer generated world, giving the impression to the user that he/ she has “stepped inside” the synthetic world. This can be achieved by using either the technologies of Head-Mounted Display (HMD) or multiple projections.

(ix) Blended Communication Channels - Blended communication leverages both. Press releases should be used to announce major news. They represent a point in time when a deal is reached, a product is launched or an appointment is made. However, companies can abuse them to disclose information with little or no news value

(x) Live streaming - Live streaming is when the streamed video is sent over the Internet in real time, without first being recorded and stored. Today, TV broadcasts, video game streams, and social media video can all be live-streamed. This technology is being used in a big way also.

(xi) Video Conferences - Video conferencing is a technology that allows users in different locations to hold real-time face-to-face meetings, often at little to no cost. There are many ways to utilize video conferencing technology, such as company meetings, job training sessions, or addressing board members.

(xii) Cloud Storage Solutions - Cloud storage is a cloud computing model, which stores data on the Internet through a cloud computing provider,

UNIT 4 : DIRECTING AND

who manages and operates data storage as a service. It is delivered on demand with just-in-time capacity and costs, and eliminates buying and managing one’s own data storage infrastructure.

(xiii) Mobile Solutions - Businesses all over the world are constantly introducing the latest innovations and trends in their work patterns. A mobile app development solution is a recent innovation, which can transform a business tremendously. Mobile solutions refer to the online services that are made available to users while they are on the go. This technology has not only traversed geographical boundaries but has also accessed various domains.

(xiv) Digi-Locker - People found it difficult to keep important documents safe and be able to present them anywhere. Targeted at the idea of paperless governance, Digi Locker is a platform for issuance and verification of documents & certificates in a digital way, thus eliminating the use of physical documents.

(xv) Work chat apps - Team chat apps enable team members to engage, both on a personal and professional level. This is particularly important for remote teams without any other means of interaction. However, it is also beneficial for office teams to have another medium for engaging with their teammates.

(xvi) Google Chat - Google Chat is a communication service developed by Google. Initially designed for teams and business environments, it has since been made available for general consumers. It provides direct message, group conversations, and spaces, which allow users to create and assign tasks and share files in a central place in addition to chatting. It can be accessed through its own website and app or through the Gmail website and app.

(xvii) Pumble - Pumble is a free team chat app that allows teams of all sizes to collaborate. Unlike other team chat apps, it offers, Unlimited users, Unlimited chat history, User and workspace administration tools, 24/7 web support

(xviii) Slack - Slack is a messaging app for business that connects people to the information that they need. By bringing people together to work as one unified team, Slack transforms the way that organizations communicate

(xix) Track Finances - It is an expense tracker app, which allows the user to monitor and categorize expenses across different banks and investment accounts and credit cards

(xx) Making Notes, Recording calls, Sharing files & Signing DocumentsComputing, now allows the user to create notes, record calls, and share

files with multiple users simultaneously and also sign documents without having to pay for the digital signatures.

8.2.1 Barriers to Digital Communication

Digital communication is expected to make communication between people easier, faster and better, but despite its conveniences, significant barriers to effective digital communication exist, both internally between coworkers and externally with the outside people organization interacts with. Following are some of the commonly experienced barriers:

(i) Accessibility barriers - Digital communication is effective only when people of all abilities can access and understand information.

(ii) Semantic barriers Semantic barriers are about the different interpretations of words and symbols used to communicate. This ambiguity is especially strong in digital communications, where trending hashtags, fast-flying memes and emojis can convey complex and evolving ideas.

(iii) Physical barriers These barriers present different challenges for offline versus online communication. Physical barriers to digital communication include other environmental conditions like time, place and medium.

(iv) Emotional barriers Emotional or psychological barriers are perhaps the most common barriers to communication, digital or otherwise, because individual’s beliefs, attitudes and values have a strong influence on how they process information.

(v) Identity barriers These barriers include gender, racial, ethnic, sexual orientation, class, age, disability, or other personal, social or cultural identities.

(vi) Credibility barriers Credibility barriers interfere with digital communications, when people are not able to trust the message, the messenger, or both.

UNIT 4 : DIRECTING AND

(vii) Attention barriers People may be confused, if too many details or options are given to them. Attention barriers also occur when people miss out on what was communicated, as they were distracted and their full focus was not there.

8.2.2 Cyber Security Risks and Mode of Prevention

The digital world has revolutionized in the recent past, particularly after the Covid-19, pandemic and so have the security risks. There have been increasing number of cyber-crimes, on a daily basis. India, being a recent and big user of the digital technology, with huge population base, the threats have multiplied also. Following are some of the risks associated with digital communication:

(i) Password Theft New to digital space, the users keep very obvious and common passwords, which are hacked by unethical persons and cause havoc for the user. Worse for an individual and an enterprise, lose sensitive data, due to hacking.

(ii) Malware It is the most prolific and common form of security threat. Malware is when an unwanted piece of programming or software installs itself on a target system, causing unusual behaviour. This ranges from denying access to programs, deleting files, stealing information, and spreading itself to other systems.

(iii) Ransomware - A nasty variant of malware, ransomware, installs itself on a user system or network. Once installed, it prevents access to functionalities, in part or whole, until a “ransom” is paid to third parties.

(iv) Phishing Attacks

Phishing scams are an older attack method and rely on social engineering to achieve its goal. Under this, an end user receives a message or email, which requests sensitive data, such as a password. Sometimes, the phishing message appears official, using legitimate appearing addresses and media. This compels an individual to click on links and accidentally give away sensitive information.

(v) Social Engineering Similar to phishing, social engineering is the umbrella method for attempting to deceive users into giving away sensitive details. This can occur on any platform, and malicious parties will often go to great lengths to accomplish their goals, such as utilizing social-media info.

(vi) Traffic Interception - It is also known as “eavesdropping,” or traffic interception. It occurs when a third-party listen to information sent between a user and host, and steals information, based on traffic but it is often used to take log-ins or valuable data.

(vii) Distributed Denial of Service DdoS is an attack method in which malicious parties target servers an overload them with user traffic. When a server cannot handle incoming requests, the website it hosts shuts down or slows to unusable performance.

(viii) Cross Site Attack It is also called as an XSS attack. In this instance, a third-party targets a vulnerable website, one lacking encryption. Once targeted the dangerous code loads onto the site. The goal is to either disrupt standard services or steal user information.

(ix) Man-in-the-Middle MitM attack occurs when a third-party hijacks a session between client and host. The hacker generally cloaks itself with

(

(

a spoofed IP address, disconnects the client, and requests information from the client.

(x) Cryptojacking

Cryptojacking is an attempt to install malware which forces the infected system to perform “crypto-mining,” a popular form of gaining crypto-currency. It is deployed because the act of crypto-mining is hardware intensive.

xi) Water Hole Attack

Water hole attacks occur when a group infects websites a particular organization frequently uses. The goal is to load a malicious payload from the infected sites.

xii) Drive-By Attack

In a drive-by-attack, malicious code is delivered onto a system or device. The distinction, however, is that no action is needed on the user end, where they need to click a link or download an executable.

(xiii) Trojan Virus Trojan malware attempts to deliver its payload by disguising itself as legitimate software. One technique used was an “alert” a user’s system was compromised by malware, recommending a scan, whereby the scan actually delivered the malware.

8.3 Controlling

While discussing the Functions of Management, in first chapter, Controlling has been explained. The remaining dimensions are being discussed here in this chapter. As explained earlier, controlling function in management, directs the organization toward attaining its goals over the long term. Important dimensions of controlling are:

Maintaining control is not a one-time endeavor; it requires regular evaluation and revision of performance criteria.

Controlling is focused on accomplishing organizational goals or specific strategies. Controlling necessitate adaptable controls to changing conditions. Dynamic processes such as Strategic, tactical, and operational control can be found at the highest levels of management and in the organization’s middle and lowest levels.

8.3.1 Steps in Controlling Function

Steps in Controlling Function include establishing standards, measuring performance, comparing actual performance with standard performance and finally taking remedial measures.

Establish Standards Measure Performance

Compare actual with standard performance The remedial Actions

Figure : Steps in Controlling Function

(i) Establishment of Standards- Standards are the targets required to be achieved. Controlling becomes easy through establishment of these standards because controlling is exercised on the basis of these standards. They are the criterions for judging the performance. Standards generally are classified as

u Measurable or Tangible Standards - Those standards which can be measured and expressed are called as measurable standards, such as cost, output, expenditure, time, profit, etc.

u Non-Measurable or Intangible Standards - These cannot be measured monetarily, such as performance of a manager, deviation of workers, their attitudes towards a concern. These are called as intangible standards.

(ii) Measurement of Performance- Deviations are found out by comparing standard performance with the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as it can be expressed in units, cost, money terms, etc. Performance of a manager cannot be measured in quantities. It is also sometimes done through various reports like weekly, monthly, quarterly, yearly reports. It can be measured only by theirAttitude Morale to work Response towards physical environment

Communication with the superiors.

(iii) Comparison of Actual with Standard Performance - By comparing the actual with standard, deviations are identified. Manager has to find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance. The managers have to exercise control by exception.

(iv) Taking Remedial Actions - Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it. There are two alternatives as follows:

Taking corrective measures for deviations which have occurred

8.3.2 Types of Control

In the end, if the actual performance is not in conformity with plans, the targets are revised.

Feedback Control Steering Control Yes/No Control Feed Forward Control

Figure : Types of Control

(i) Post-Action-Control/Feedback Control - This process involves collecting information about a finished task, assessing that information and improvising the same type of tasks in the future. The results of the completed activity are compared with pre-determined standards and if there are any deviations, corrective action can be taken for future activities. For example, a restaurant manager may ask the customer about the quality and taste of food ordered by him/her and take suggestions to improve the meals.

(ii) Concurrent Control - It is also called real-time control. It checks any problem and examines it to take action, before any loss is incurred.

(iii) Steering Control The key feature of this control is the capability to take corrective action, when the deviation has already taken place, but the task has not been completed. The big advantage of steering control is that corrective actions can be taken early.

(iv) Yes/No Control - This control is designed to check at each check point, whether the allow activity to proceed further or not. These controls are necessary and useful where a product passes sequentially from one point to another, with improvements added at each step along the way. These controls stop errors from being compounded. Safety checks and legal approvals of contracts, prior to approval are examples of yes/no controls.

(v) Predictive/ Feed Forward Control - This type of control helps to foresee problem ahead of occurrence. Therefore, action can be taken before such a circumstance arises.

In an ever-changing and complex environment, controlling forms an integral part of the organization.

8.4 Techniques of Controlling

Techniques of control are being used by managers since long and there are two categories of controlling namely the traditional techniques and the modern techniques.

Traditional Techniques

• Personal Observation

• Budgeting

• Break-Even Analysis

• Financial Statements

• Statistical Control

• Self-Control

Modern Techniques

• MIS

• Management Audit

• Responsibility Accounting

• PERT and CPM

• Balanced Score Card

• Ratio Analysis

• EVA

Figure : Techniques of Controlling

8.4.1 Traditional Techniques

Some of the traditional techniques are being explained briefly below: 8.4.1.1 Personal Observation or Direct Supervision & Observation - It is the oldest traditional method available to perform the controlling function. In simple words, it can be understood as On-the-Spot or Direct Observation control. Direct observation pressurizes the employees and motivates them to work with maximum efficiency. In this, the manager personally observes the employees and workers, at the workplace.

Merits

Very good for Small, medium-sized and non-profit organizations.

Demerits

Very unsuitable for large-sized, profit-mak ing organizations.

Merits

It creates psychological pressure on the employees and they perform better.

It enables the Managers to know the em ployee problems at the work place and they try to overcome these problems.

Demerits

This method can also demotivate some of the employees, who do not like to work under psychological pressure.

It may not be possible for all managers to personally observe all employees, due to their personal work pressure.

8.4.1.2 Budgeting or Budgetary Control - Budgetary Control is the process of utilizing budgets for comparing the actual performance with the corresponding budget performance in order to find out the deviations, and to remove the deviations by either adjusting the budget estimates or correcting the causes of deviations. A budget is a highly useful tool for controlling the day-to-day operations of the enterprise. It provides a standard by which, actual performance can be evaluated to find out the deviations from the planned results. This information enables the managers to take corrective action for bringing the actual results in conformity with the plans. Budgetary control is an effective and widely used control technique.

(a) Objectives of Budgetary Control

(i) To formulate a plan or fix a target of performance that becomes the basis of measuring the progress of activities in the organization.

(ii) To evaluate the results of the activities in terms of quantity so that the actual result can be compared with the budgeted result.

(iii) To draw attention of the managers on deviation between what is planned and what is being achieved.

(iv) To remove the deviation and to implement the objectives of the activities.

(b) Merits and Demerits of Budgetary Control

Merits

Budgetary control leads to maximum utilization of resources, which leads to maximum output.

It provides aid to managerial planning, co-ordination and control

Demerits

Budgetary control faces problems due to uncertainty of future.

Budgets are prepared on the assump tions of future happenings, which are uncertain.

Budgetary control compels the managers to plan their activities. A budget is just a guesswork.

It is fully concerned with concrete numerical goals, without ambiguity, which relate to the targets.

Due to change in situations, budgets become meaningless and unreliable for achieving control.

Business Organisation & Management B.Com.

AUTHOR

:

ABHA MATHUR

Description

The book gives fundamental clarity on the following:

u Evolution of Management

u Apprehend its Effect on Future Managers

u How Organisations Adapt to Uncertain Environments

u Decipher Decision Making Techniques

This book helps the reader in getting an insight into the entrepreneurship aspects.

This book aims to fulfil the requirement of students of undergraduate courses in commerce and management, particularly the following:

u Paper BC-DSC – 1.1 | Semester – I | Core Based on Undergraduate Curriculum Framework (UGCF) for the University of Delhi

u Non-Collegiate Women’s Education Board (NCWEB)

u School of Open Learning (SOL) of the University of Delhi

u Various Universities throughout India

This book will also be helpful to any aspiring & budding Manager or Entrepreneur.