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Henry Fayol, a French industrialist, developed the theory of management.

According to him,
managerial excellence is a technical ability and can be acquired. He developed theories and
principles of management which are universally accepted and make him universalistic. He was
pioneer of the formal education in management. Fayol's principles of management meet the
requirements of modern management. Henry Fayol, offered fourteen principles of management for
the first time in 1916. During the period of 1920-40 in the U.S. many authors did hard work in
developing and testing various principles of management. Today, there is a very lengthy list of
management principles and it is not possible to give an exhaustive lot of these management
principles. Here, we are giving some important principles of management.
Henry Fayol's Principle of Management
Followings are the 14 principles of management developed by the Henry Fayol:1.
Division of Work:
According to Henry Fayol under division of work, "The worker always on the same post, the
manager always concerned with the same matters, acquire an ability, sureness and accuracy which
increases their output. In other words, division of work means specialization. According to this
principle, a person is not capable of doing all types of work. Each job and work should be assigned to
the specialist of his job. Division of work promotes efficiency because it permits an organizational
member to work in a limited area reducing the scope of his responsibility. Fayol wanted the division
of work not only at factory but at management levels also.
Authority and Responsibility:
Authority and responsibility go together or co-existing. Both authority and responsibility are the two
sides of a coin. In this way, if anybody is made responsible for any job, he should also have the
concerned authority. Fayol's principle of management in this regard is that an efficient manager
makes best possible use of his authority and does not escape from the responsibility. In other words
when the authority is exercised the responsibility is automaticallygenerated.3.
According to Henry Fayol discipline means sincerity about the work and enterprise, carrying out
orders and instructions of superiors and to have faith in the policies and programs of the business
enterprise, in other sense , discipline in terms of obedience, application, energy and respect to
superior. However, Fayol does not advocate warming, fines, suspension and dismissals of worker for
maintaining discipline. These punishments are rarely awarded. A well disciplined working force is
essential for improving the quality and quantity of the production.
Unity of Command:
A subordinate should take order from only one boss and he should be responsible and accountable
to him. Further he claimed that if the unit of command is violated, authority is undermined,
disciplined in danger, order disturbed and stability threatened. The violation of this principle will
face some serious consequences. In this way, the principle of unity of command provides the
enterprise disciplined stable and orderly existence. It creates harmonious relationship between

officers and subordinates, congenial atmosphere of work. It is one of the Fayol's important essential
principles of management.5.
Unity of direction:
Fayol advocates "One head and one plan" which means that group efforts on a particular plan be led
and directed by a single person. This enables effective co-ordination of individual efforts and energy.
This fulfils the principles of unity of command and brings uniformity in the work of same nature. In
this way the principle of direction create dedication to purpose and loyalty. It emphasizes the
attainment of common goal under one head.6.
Subordination of individual interests to general interests:
the interest of the business enterprise ought to come before the interests of the praise individual
workers. In other words, principle of management states that employees should surrender their
personnel interest before the general interest of the enterprise. Sometimes the employees due to
this ignorance, selfishness, laziness, carelessness and emotional pleasure overlook the interest of the
organization. This attitude proves to be very harmful to theenterprise.7.
Fair Remuneration to employees:
According to Fayol wage-rates and method of their payment should be fair, proper and satisfactory.
Both employees and ex-employers should agree to it. Logical and appropriate wage-rate and
methods of their payment reduces tension and differences between workers and management,
create harmonious relationship and a pleasing atmosphere of work. Further Fayol recommends that
residential facilities be provided including arrangement of electricity, water and facilities.8.
Centralization and Decentralization:
There should be one central point in the organization which exercises overall direction and control of
all the parts. But the degree of centralization of authority should vary according to the needs of
situation. According to Fayol there should be centralization in small units and proper
decentralization in big organization. Further, Fayol does not favor centralization or decentralization
of authorities but suggests that these should be proper and effective adjustment between
centralization and decentralization in order to achieve maximum objectives of the business. The
choice between centralization and decentralization is made after taking into consideration the
nature of work and the efficiency, experience and decision-making capacity of theexecutives.9.
Scalar chain:
the scalar chain is a chain of supervisors from the highest to the lowest rank. It should be shortcircuited. An employee should feel the necessity to contact his superior through the scalar chain. The
authority and responsibility is communicated through this scalar chain. Fayol defines scalar chain as
"the chain of superiors ranging from the ultimate authority to the lowest rank." The flow of
information between management and workers is a must. Business opportunities must be
immediately avoided of. Sowe must make direct contact with the concerned employee. Business
problems need immediate solution, so we cannot always depend on the established scalar chain. It
requires that direct contact should be established.

It will be more useful. It is always in the interest of the enterprise that its trusted. better alternative approach and technique of work. informal mutual social relationship between members of the group and positive and constructive approach of the management towards workers' welfare. If the members of the team go on changing the entire process of production will be disturbed. an efficient management always builds a team of good workers. In other words. It refers to the spirit of loyalty. workers should be treated at par at every level.12. initiative: Under this principle. principles that every piece of land and every article should be used properly. effective coordination. In other words. tools and equipments and employees respectively.14. As per view. Stability of job creates a sense of belongingness among workers who with this feeling are encouraged to improve the quality and quantity of work. An effective management always accords sympathetic and human treatment.13. individual and group efforts are to be effectively integrated and coordinated. there should be safe. This principle also stresses scientific selection and appointment of employees on every job. Spirit of Co-operation (Spirit de crops): In order to achieve the best possible results. Thus. Production is a team work for which the whole-hearted support and cooperation of the members at all levels is required. . the successful management provides an opportunity to its employees to suggest their new ideas. honest and impartial with the employees. Everyone should sacrifice his personal interest and contribute his best energies to achieve the best results. raw materials. if initiative to do so is provided to employees. There should not be any discrimination as regards caste. In simple. Stability of use of personnel: Principle of stability is linked with long tenure of personnel in the organization. There should be specific place for everyone and everyone should have specific place. appropriate and specific place for every article and every place to be used effectively for a particular activity and commodity. Selection and appointment of the most suitable person to every job. economically and in the best possible way. This means production being a teamwork. The employees. kindness and justice should be exercised by management in dealing with their subordinates. such as land. who has been working on the specific job since long discover now.11. experiences and more convenient methods of work. sex and religion.Order: According to Fayol there should be proper. Equity: The principle of equality should be followed and applicable at every level of management. plans should be well formulated before they areimplemented. This will create loyalty and devotion among the employees. systematic and orderly arrangement of physical and social factors. The management should be kind. faith fullness on the part of the members of the group which can be achieved by strong motivating recognition and importance of the members for their valuable contribution. to ensure success. experienced and trained employees do not leave the organization.

It is of course the belief that skills theory is true that warrants all the effort and resources devoted to leadership training and development Situational Theory This theory suggests that different situations require different styles of leadership. leadership is a dynamic and complex process. intelligence. and for the most part refraining from any critiquing of the various theories. or leadership as certain behaviors or. I will say on the front end that. are the real keys to leadership performance. Trait Theory This theory postulates that people are either born or not born with the qualities that predispose them to success in leadership roles. I will leave that to my fellow bloggers for now. is this different from situational theory? In situational the focus is on adapting to the situation. such as personality and cognitive ability. Most theories view leadership as grounded in one or more of the following three perspectives: leadership as a process or relationship. and that much of what is written these days tends to over-simplify this process. in my opinion. are what underlie effective leadership. you may ask. I view models as attempts to functionalize the more theoretical aspects of leadership and make them easier to put into play by organizations and consultants. sociability. This is. and acquired knowledge. whereas . authentic. I hope that others will share their thoughts on whether this list neglects any theories of note. The assessment of these factors determines if a leader should use a more directive or supportive style. There have been hundreds of studies to determine the most important leadership traits. leadership is a process that involves influence with a group of people toward the realization of goals. an important activity. That is. to be effective in leadership requires the ability to adapt or adjust one’s style to the circumstances of the situation. and while there is always going to be some disagreement. In virtually all of the more dominant theories there exist the notions that. that certain inherited qualities. The primary factors that determine how to adapt are an assessment of the competence and commitment of a leader’s followers. in and of itself. without crossing into over-simplification. a developed style. leadership skills. It is important to note that this submission attempts to provide an overview of leadership theoriesversus models. Contingency Theory This theory states that a leader’s effectiveness is contingent on how well the leader’s style matches a specific setting or situation. Skills theory by no means disavows the connection between inherited traits and the capacity to be an effective leader – it simply argues that learned skills. My goal here is to provide an overview that keeps things simple. And how. I will provide a brief overview of the more dominant or better known theories. at least to some degree.Leadership Theories By Steve Wolinski on April 21. Skills Theory This theory states that learned knowledge and acquired skills/abilities are significant factors in the practice of effective leadership. and appreciative. That is. In the future we can discuss some of the emerging leadership theories/approaches such as adaptive. as they are more commonly referred to. leadership as a combination of traits or personality characteristics. and drive (aka determination) are consistently cited as key qualities. 2010 257 68 173 There is a wide and ever growing variety of theories to explain the concept and practice of leadership.

Path-Goal Theory This theory is about how leaders motivate followers to accomplish identified objectives. The assessment process includes tools to measure personality. and the community ahead of their own interests in order to be effective. It is based in the notion that a leader’s job is to create structures that make it abundantly clear what is expected of his/her followers and also the consequences (i. This theory is often likened to the concept and practice of management and continues to be an extremely common component of many leadership models and organizational structures. I am a psychologist and there is no doubt in my mind that people are born with certain qualities. in my work. In addition. Servant Leadership Theory This conceptualization of leadership reflects a philosophy that leaders should be servants first. if I am hired to help an organization select a leader via an assessment process. believe their effort will result in desired outcomes. relational interaction. and transformational theories. It suggests that leaders must place the needs of followers.e. Transactional Theory This is a theory that focuses on the exchanges that take place between leaders and followers. transformational leadership typically describes how leaders can initiate. The key in transformational leadership is for the leader to be attentive to the needs and motives of followers in an attempt to help them reach their maximum potential. and believe their work is worthwhile. develop. to assure finding someone that is a good fit for the job and the culture (Contingency Theory). skills. customers. are best able to motivate followers. By doing this I am able to be look for those qualities. Transformational Theory This theory states that leadership is the process by which a person engages with others and is able to create a connection that results in increased motivation and morality in both followers and leaders. And I lean toward transformational theory because of how it views the practice of leadership as. more than anything else. cognitive abilities. adaptability . rewards and punishments) for meeting or not meeting these expectations. So how can these theories apply to one’s work? Well. and implement important changes in an organization. Closing Comments and Questions I have a bias toward trait. The idea of servant leadership has a significant amount of popularity within leadership circles – but it is difficult to describe it as a theory inasmuch as a set of beliefs and values that leaders are encouraged to embrace. skills. It is often likened to the theory of charismatic leadership that espouses that leaders with certain qualities. It postulates that effective leaders have the ability to improve the motivation of followers by clarifying the paths and removing obstacles to high performance and desired objectives.contingency states that effective leadership depends on the degree of fit between a leader’s qualities and style and that of a specific situation or context. some of the theories become readily apparent. such as confidence. To start. The underlying beliefs of path-goal theory (grounded in expectancy theory) are that people will be more focused and motivated if they believe they are capable of high performance. This theory is often discussed in contrast with transactional leadership. and drive (Trait Theory). knowledge. extroversion. and clearly stated values. it is important that the first step in the assessment is a meeting in which the client clarifies the qualities needed for the specific role and paint a picture for me of the organizational culture. But I am equally sure innate traits inevitably become fully interwoven with a person’s acquired knowledge and skills.

According to Richard et al. through interviews and work simulations. or customers). (2009) organizational effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation (either by shareholders. Ethics is a foundation found within organizational effectiveness. the number of requests for meals turned down due to lack of capacity (amount of food. Along with ethics and communicative competence. However. an evaluation of a person’s work-related skills and knowledge of the business (Skills Theory). the organization selects proxy measures to represent effectiveness.' or the minimization of fundraising and administrative costs. such as corporate social responsibility. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. the turnover and retention of consumers.(Situational Theory). types and sizes of population segments served.' or the extent to which an organization achieves specified levels of progress toward its own goals. a minority of nonprofit leaders define effectiveness as 'overhead minimization. Instead of measuring organizational effectiveness directly. and the demand within those segments for the services the organization supplies. [3] For example. Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. honesty. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest. It also involves. An organization must exemplify respect. capacity of meal preparation facilities. the demographics of the people served. managers. while most nonprofit leaders define organizational effectiveness as 'outcome accountability. members in that particular group can finally achieve their intended goals. scholars of nonprofit organizational effectiveness acknowledge that the concept has multiple dimensions [2] and multiple definitions. the turnover and retention rates of volunteers. integrity and equity to allow communicative competence with the participating members.[4] An organization's effectiveness is also dependent on its communicative competence and ethics. the number of volunteersdelivering meals. and sociability (Transformational Theory). For instance.[1] The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to nonprofit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. and number of delivery . The relationship between these three are simultaneous. Proxy measures may include such things as number of people served. Organizational effectiveness is an abstract concept and is difficult for many organizations to directly measure. a non-profit organization which supplies meals to house bound people may collect statistics such as the number of meals cooked and served.

Logic models are a management tool widely used in the nonprofit sector in program evaluation. measurable inputs to specific. However.[10] Moreover. Several nonprofit watchdog agencies provide ratings of nonprofit organizations using these data. The term Organizational Effectiveness is often used interchangeably with Organization Development. These other activities are overhead activities that indirectly assist the organization in achieving its desired outcomes.volunteers). an organization with higher overhead is more efficient than one with lower overhead if the organization with higher overhead achieves the same results at a lower total cost. they provide the essential support functions needed for the organization to successfully finance and administer its programs. Organizational effectiveness is typically evaluated within nonprofit organizations using logic models.[6][7] A nonprofit with low overhead may have ineffective programs that have no impact. fundraising.[5] Typically. it measures its organizational effectiveness by trying to determine what actual activities the people in the organization do in order to generate the outcomes the organization wants to create. which in turn lead to impacts. such as money and staff time. this practice is widely criticized by scholars and practitioners.[8][9] Some studies suggest that low overhead may actually reduce organizational effectiveness. Activities such as administration. Logic models are created for specific programs to link specific. However. while a nonprofit with relatively higher overhead may be significantly more effective in terms of achieving meaningful results. produce activities and outputs. measurable impacts. . logic models specify how program inputs. Since the organization has as its goal the preparation of meals and the delivery of those meals to house bound people. such as improved beneficiary health. and amount of wastage. some nonprofit watchdog agencies regard overhead spending not as indirect program spending but as in indication of organizational ineffectiveness or inefficiency since funds are not being spent directly on programs. especially when used as the name of a department or a part of the Human Resourcesfunction within an organization. Cost ratios such as overhead are much simpler to measure than actual programmatic results and can be easily calculated from publicly available information disclosed on nonprofit organizations' IRS Forms 990. such as services delivered. and volunteer training are important inputs into organizational effectiveness because although they do not directly result in programmatic results.

Organizational effectiveness is an abstract concept and is basically impossible to measure. For instance. The idea of organizational effectiveness is especially important for non-profit organizations as most people who donate money to non-profit organizations and charities are interested in knowing whether the organization is effective in accomplishing its goals. Along with ethics and communicative competence. The relationship between these three is simultaneous. and amount of wastage. honesty. The first is the organization’s internal versus external focus. types and sizes of population segments served.  2. the demographics of the people served. Ethics is a foundation found within organizational effectiveness. To be effective and achieve its goals. An organization must exemplify respect. The term Organizational Effectiveness is often used interchangeably with Organization Development. Since the organization has as its goal the preparation of meals and the delivery of those meals to house bound people. They are the rational goal. The University of Alberta follows this model when it is concerned about the quality and number of students applying for admission and what jobs they receive on graduation. Each model is most useful to an organization having a particular combination of these environmental and organizational attributes. internal process. the turnover and retention rates of volunteers. Instead of measuring organizational effectiveness. Activities such as fundraising or volunteer training are important because they provide the support needed for the organization to deliver its services but they are not the outcomes per se. capacity of meal preparation facilities. Foundations and other sources of grants and other types of funds are interested in organizational effectiveness of those people who seek funds from the foundations. Two different underlying dimensions may be considered to develop models of organizational effectiveness. they produce different products. When Hamilton’s . the first four models of organizational effectiveness can be plotted. and the organizations are at different stages of development. and number of delivery volunteers). the turnover and retention of consumers. it measures its organizational effectiveness by trying to determine what actual activities the people in the organization do in order to generate the outcomes the organization wants to create. an organization must successfully respond to environmental factors. Organizational effectiveness Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the organization intends to produce. The internal process model focuses on the effectiveness of the internal transformation process. open system. When these two dimensions are drawn at right angles to each other. the organization determines proxy measures which will be used to represent effectiveness. a non-profit organization which supplies meals to house bound people may collect statistics such as the number of meals cooked and served. For example. Foundations always have more requests for funds or funding proposals and treat funding as an investment using the same care as a venture capitalist would in picking a company in which to invest. and the World Series. Flexibility allows faster change. members in that particular group can finally achieve their intended goals. The second dimension is the organization’s emphasis on flexibility versus control. These other activities are overhead activities which assist the organization in achieving its desired outcomes. How can the effectiveness of an organization be measured? Various models of determining organizational effectiveness exist because organizations face different environments. Proxy measures used may include such things as number of people served. the American League pennant. According to the rational goal model of effectiveness. and human relations models. and the demand within those segments for the services the organization supplies. especially when used as the name of a department or a part of the Human Resources function within an organization. the formal goals of the Toronto Blue Jays are to win their division.Organizational EffectivenessDocument Transcript  1. their organizational members are made up of different kinds of people. the number of requests for meals turned down due to lack of capacity (amount of food. an organization is effective to the extent that it accomplishes its stated goals. An organization's effectiveness is also dependent on its communicative competence and ethics. integrity and equity to allow communicative competence with the participating members. the number of volunteers delivering meals. whereas control allows a firmer grasp on current operations. With an open system model an organization is effective to the degree that it acquires inputs from its environment and has outputs accepted by its environment.

we can offer you on-going coaching support. product promotions. needs. An example would be producing a business plan and projected income statement in order to obtain a bank loan. the less it can concentrate on the other. Flexibility allows quick response to changing conditions and values innovation. But to determine the quality of the orchestra itself. The third set of competing values is the relative concern with the feelings. because it is a private hospital and must make a profit to survive. we apply a systems view of our clients that greatly improves the success of your change initiative. or wholesale changes to your product development process. Marlin Travel sends its agents on familiarization trips to expand their knowledge of specific hotels. The computer chip maker Intel has had a more internal focus on how to make faster and more powerful central processing units at a low price. Effectiveness is seen as the degree to which that comparison is positive. For example Apple Computer has focused externally on its customers and making computers that are intuitive and easy to use. The hospital must balance the three sets of competing values in order to be effective. Finally.  Stelco Inc. for example. robots. is concerned with how patients are treated and the success rate of surgeries (the rational goal model). and as experienced coaches. Are you one of those leaders? Do your change initiatives get sidetracked or altogether de-railed? 4. it is focusing on its internal processes. With the strategic constituencies model an organization would aim to at least minimally satisfy the most important constituents (or stakeholders) in its environment. As Organization and Systems Development experts. Would you like to increase the success rate of your change initiatives? We offer you an opportunity to do just that. A private hospital. An example is the MacLean’s magazine ratings of Canadian universities. and development of the people making up the organization versus the organization and its requirement to accomplish its tasks. The National Aeronautics and Space Administration (NASA) in the United States is a good example. or computer aided product design. etc. and the store’s relationship with its community. Finally. cruises. The owner of an A&W franchise must satisfy the customers and A&W head office management. An organization seeking legitimacy survives by acting in a manner seen by other organizations as legitimate. One method used by high performers to make such comparisons is to examine industry rankings. and destinations. Head office cares about these issues along with financial reporting. the organization as a high performing system compares itself to other similar organizations. The more the organization focuses on one. The organization adopting the fault-driven model of effectiveness seeks to eliminate traces of ineffectiveness in its internal functioning. The Vancouver Symphony Orchestra can measure ticket sales and customer satisfaction with performances. It is also interested in how hospital procedures are performed (the internal process model) and with the skills and abilities of hospital staff (the human relations model). In this model there are three sets of competing values. it needs to take into account how many and what kinds of patients are admitted (the open system model). The first is the tension between internal versus external focus. The second set of values in competition is flexibility versus control. implementing new Processes and Technology always forces a culture change and quite often changes in structures and organizational power relationships. Its systems are designed with backups to be reliable even if some components fail. The competing values model requires that an organization scrutinize the balance among the above four effectiveness models. While it isn't always apparent to managers and leaders. The human relations model focuses on the development of the organization’s personnel. Do you quietly declare victory and move on to another change initiative? Whether they are a relatively modest effort such as a new order fulfilment system. Organizational leaders are . Organizational Effectiveness Approaches The creative change biz approach Many company leaders scratch their heads over the difficulty of implementing technical and process improvements. 3. change is tough for you and your employees. we offer a systemic framework for understanding your business challenges. We use a model that employs the proverbial three-legged stool: --->People ---> Process ---> Technology ---> • People: includes formal structures. and organizational culture • Process: includes manufacturing and business activities such as Lean Thinking and Six Sigma • Technology: includes computers. comparison is made to other orchestras in the world. Customers care about the quality and price of the food as well as the speed and friendliness of service. Control values the opposite. informal relationships. Stability and predictability mean that routine activities are performed well but change is more difficult. In our work with organizations. examines its steel-making methods to determine price and quality competitiveness.

Organizational Effectiveness Solutions • Strategy-implementation: Right Management’s Strategy Implementation consulting services improve an organization’s ability to successfully execute strategy. 07. Employees resisted the change because the new system completely upended the formal and informal power hierarchy among order fulfilments technicians—it equalized the playing field between telephone order takers and senior technicians who saw themselves as engineers. new order fulfilment processes. naive about the impact of the Process and Technology "improvements" to their organizations. This is achieved by focusing on structure. restructurings or shifts in business strategy are examples of fundamental organizational change that create strong demand for processes and systems to bring focus and restore the organization’s capability to function effectively. empower managers to lead through change. 08. no matter how much self-discipline is employed! • Strategic Planning . we help you appropriately integrate structural and people changes that overlooked. individuals use a specially designed diagnostic process called Right Navigator to prioritize (based on importance and satisfaction) a comprehensive set of organizational workforce strategies. processes. Six Sigma. Senior technicians viewed the new system as a Trojan horse: management's real intent was to weed out higher paid employees. • Chang-Effectiveness Right Management’s Change Effectiveness offerings are designed to support change at all levels of the organization. We teach leaders new ways of assessing and leading their organizations that will sustain the new systems they are implementing. people systems and processes. It is not self-satisfaction. We also assist you in creating plans for change that ensure your successful transition to Lean.We provide an integrated seven-element model. • Change Management . etc. and a century's worth of habits won't either. which acts as a motivation to work. After all.We help you understand the culture change inherent in Lean Thinking. . a performance management system that rewards cross-functional collaboration rather than rewarding only individual performance. Mergers or acquisitions. whether it be manufacturing or in any other part of your organization. will undermine your initiative. • Business Start-up . happiness or selfcontentment but satisfaction on the job. Our organizational effectiveness capability brings value to our clients’ organizations by facilitating the integration and alignment of the business strategy with a workable talent management strategy.  more often than not. is our holistic approach to helping companies build and align the capabilities. Our change management programs assist executives to drive organizational change. by paying attention to the people side. Based on proven Six-Sigma methodologies. attitudes. 10. Group-2 (PR No.Our consultants have the process and content expertise and experience to assist you in anticipating and implementing all the components of a new business start-up. and enable employees to navigate and respond to change appropriately. and talent needed to more effectively implement its chosen strategy. Further. • Strategic Workforce Alignment Strategic Workforce Alignment is a unique interactive process for executives to quickly assess and prioritize various workforce strategies. 09. Senior management was astonished by and unprepared for the revolt. 12)   Job satisfaction refers to a person’s feeling of satisfaction on the job.We provide a systemic approach to planning for the future which ensures that everyone in your organization is working together toward common objectives. which emphasizes the importance of quality execution as well as the appropriate balance of all the change activities. At the heart of Right Management's organizational effectiveness capabilities. That includes assessing and eliminating outdated and redundant processes and procedures. employee needs and investments. coaching for leaders. How do we increase organizational effectiveness To increase organizational effectiveness. 11. 6. For example: a utility company we worked with implemented a new computerized order fulfilments system. 5. implementing new accounting procedures designed to accurately track your new initiative's ROI. Rome did not fall in a day. and to deliver great customer experiences. Improve your success rate implementing whatever technical process you wish —Lean Systems. winning companies create sustainable competitive advantage by aligning their talent and business strategies. • Lean Thinking . Our expertise is in people systems.

physiological and environment circumstances that cause any person truthfully to say that I am satisfied with my job. .  The term relates to the total relationship between an individual and the employer for which he is paid. and being suitably rewarded for one's efforts. Job dissatisfaction does mean absence of motivation at work.” Job satisfaction is defined as the “pleasurable emotional state resulting from the appraisal of one’s job as achieving or facilitating the achievement of one’s job values. a worker's sense of achievement and success. and the achievement of other goals that lead to a general feeling of fulfillment. there is also interest in measuring different "facets" or "dimensions" of satisfaction. both satisfaction and dissatisfaction were seen as “a function of the perceived relationship between what one perceives it as offering one entailing. supervision. nature of the work and benefits. Job satisfaction implies doing a job one enjoys." Job satisfaction. Research workers differently described the factors contributing to job satisfaction and job dissatisfaction. Hoppock describes job satisfaction as “any combination of psychological. Examination of these facet conditions is often useful for a more careful examination of employee satisfaction with critical job factors. pay. The Harvard Professional Group (1998) sees job satisfaction as the keying radiant that leads to recognition. the end-state is feeling accompanying the attainment by an impulse of its objective. is generally perceived to be directly linked to productivity as well as to personal wellbeing. Traditional job satisfaction facets include: co-workers. doing it well. While researchers and practitioners most often measure global job satisfaction. job conditions.” In contrast. Job satisfaction further implies enthusiasm and happiness with one's work. job dissatisfaction is defined as “the unpleasurable emotional state resulting from the appraisal of one’s job as frustrating or blocking the attainment of one’s job values or as entailing disvalues. job satisfaction INTRODUCTION "Job satisfaction is defined as "the extent to which people like (satisfaction) or dislike (dissatisfaction) their jobs" This definition suggests job satisfaction is a general or global affective reaction that individuals hold about their job. income. Satisfaction does mean the simple feeling state accompanying the attainment of any goal. promotion.” However.

and loyal. Job satisfaction and occupational success are major factors in personal satisfaction. and soon grass will grow on the factory floors. Take away my factories. self-respect. To the worker. work underlies self-esteem and identity while unemployment lowers self-worth and produces anxiety.Importance to Worker and Organization Frequently. Though fear is a powerful motivator." No wonder Andrew Carnegie is quoted as saying: "Take away my people. studies dating back to Herzberg's (1957) have shown at least low correlation between high morale and high productivity. A satisfied worker is more likely to be creative. However. thus protecting the "bottom line. but leave my factories. and self-development. will not give 100 percent of their effort for very long. and as soon as the threat is lifted performance will decline. monotonous jobs can erode a worker's initiative and enthusiasm and can lead to absenteeism and unnecessary turnover. and termination. Increased productivity—the quantity and quality of output per hour worked seems to be a byproduct of improved quality of working life. job satisfaction brings a pleasurable emotional state that often leads to a positive work attitude. innovative. self-esteem. Brown (1996) notes that some employers have found that satisfying or delighting employees is a prerequisite to satisfying or delighting customers. it is also a temporary one. turnover. as well as improved punctuality and worker morale. Job satisfaction is also linked to a more healthy work force and has been found to be a good indicator of longevity. Unhappy employees. who are motivated by fear of job loss. At the same time. It is important to note that the literature on the relationship between job satisfaction and productivity is neither conclusive nor consistent. absenteeism. job satisfaction of its workers means a work force that is motivated and committed to high quality performance. and it does seem logical that more satisfied workers will tend to add more value to an organization. flexible. Tangible ways in which job satisfaction benefits the organization include reduction in complaints and grievances. and soon we will have a new and better factory" . but leave my people. And although only little correlation has been found between job satisfaction and productivity. For the organization.

and opportunities for growth. Job enrichmentis a deliberate upgrading of responsibility. and a shy worker is unlikely to be a good salesperson. Apart from the factors mentioned above. As much as possible. Job enrichment usually includes increased responsibility. Managers who are serious about the job satisfaction of workers can also take other deliberate steps to create a stimulating work environment. scope. managers can enhance job satisfaction by carefully matching workers with the type of work. possibly including telecommuting  Training and other professional growth opportunities  Interesting work that offers variety and challenge and allows the worker opportunities to "put his or her signature" on the finished product  Opportunities to use one's talents and to be creative  Opportunities to take responsibility and direct one's own work  A stable. and challenge in the work itself. and . For example. managers can enhance worker satisfaction by placing people with similar backgrounds. secure work environment that includes job security/continuity  An environment in which workers are supported by an accessible supervisor who provides timely feedback as well as congenial team members  Flexible benefits. such as child-care and exercise facilities  Up-to-date technology  Competitive salary and opportunities for promotion Probably the most important point to bear in mind when considering job satisfaction is that there are many factors that affect job satisfaction and that what makes workers happy with their jobs varies from one worker to another and from day to day. learning.Creating Job Satisfaction So. Managers who want to maintain a high level of job satisfaction in the work force must try to understand the needs of each member of the work force. experiences. how is job satisfaction created? What are the elements of a job that create job satisfaction? Organizations can help to create job satisfaction by putting systems in place that will ensure that workers are challenged and then rewarded for being successful. recognition. the manager's personal characteristics and management style. or needs in the same workgroup. job satisfaction is also influenced by the employee's personal characteristics. Organizations that aspire to creating a work environment that enhances job satisfaction need to incorporate the following:  Flexible work arrangements. a person who does not pay attention to detail would hardly make a good inspector. when creating work teams. Also. One such step is job enrichment. and the nature of the work itself. managers should match job tasks to employees' personalities. For example.

achievement. Qualities like these are valued by most organizations and often result in recognition as well as in increased responsibilities and rewards. have significant effects on job satisfaction.  Demonstrate creativity and initiative. task clarity and significance. These job characteristics can be carefully managed to enhance job satisfaction. listening. and skills utilization. . Employers value and reward excellent reading.  Know more. a worker who takes some responsibility for his or her job satisfaction will probably find many more satisfying elements in the work environment.  Develop teamwork and people skills. writing. Of course. Large companies that have used job-enrichment programs to increase employee motivation and job satisfaction include AT&T. The following suggestions can help a worker find personal job satisfaction:  Seek opportunities to demonstrate skills and talents. IBM. This will relieve boredom and often gets one noticed. Good management has the potential for creating high morale. Accept people with their differences and their imperfections and learn how to give and receive criticism constructively. and speaking skills. as well as organizational characteristics such as commitment and relationship with supervisors and co-workers. Acquire new job-related knowledge that helps you to perform tasks more efficiently and effectively. surely the worker must be able to contribute to his or her own satisfaction and well-being on the job. high productivity. Empirical findings show that job characteristics such as pay. A large part of job success is the ability to work well with others to get the job done. and General Motors (Daft. with attendant increases in pay and other recognition.  Accept the diversity in people. Everett (1995) suggests that employees ask themselves the following questions:  When have I come closest to expressing my full potential in a work situation?  What did it look like?  What aspects of the workplace were most supportive?  What aspects of the work itself were most satisfying?  What did I learn from that experience that could be applied to the present situation? Workers' Roles in Job Satisfaction If job satisfaction is a worker benefit.  Develop excellent communication skills. promotional opportunity. This often leads to more challenging work and greater responsibilities. 1997). and a sense of purpose and meaning for the organization and its employees.

supportive. her supervisor is supportive. Plan to avoid burnout by developing healthy stress-management techniques. in essence. and rewarding work environment is vital. Emotion regulation includes all of the conscious and unconscious efforts to increase. [8] Moods tend to be longer lasting but often weaker states of uncertain origin. and her coworkers are friendly. This helps to give meaning to one's existence. or decrease one or more components of an emotion. So. 91). Because of the relative prominence of pay in the reward system. her pay is fair. (Weiss and Cropanzano. Emotion work (or emotion management) refers to various efforts to manage emotional states and displays. Although early studies of the consequences of emotional labor emphasized its harmful effects on workers. Managers are encouraged to consider such theories as Herzberg's(1957) and Maslow's (1943) Creating a good blend of factors that contribute to a stimulating.The understanding of how emotion regulation relates to job satisfaction concerns two models: . Positive and negative emotions were also found to be significantly related to overall job satisfaction Frequency of experiencing net positive emotion will be a better predictor of overall job satisfaction than will intensity of positive emotion when it is experienced. Assuring Job Satisfaction Assuring job satisfaction. 1996). Appreciating the significance of what one does can lead to satisfaction with the work itself. job satisfaction is a product of the events and conditions that people experience on their jobs. There is some evidence in the literature that state moods are related to overall job satisfaction. if the pleasures associated with one's job outweigh the pains. short-lived and have a clear object or cause. See the value in your work. while emotions are often more intense. It was found that suppression of unpleasant emotions decreases job satisfaction and the amplification of pleasant emotions increases job satisfaction. maintain. it is very important that salaries be tied to job responsibilities and that pay increases be tied to performance rather than seniority. there is some level of job satisfaction JOB SATISFACTION AND EMOTIONS Mood and emotions while working are the raw materials which cumulate to form the affective element of job satisfaction. then a situational approach leads one to predict she is satisfied with her job" (p. over the longterm. studies of workers in a variety of occupations suggest that the consequences of emotional labor are not uniformly negative. her promotional opportunities are good. Emotion regulation and emotion labor are also related to job satisfaction.  Learn to de-stress. requires careful planning and effort both by management and by workers. Very simply put. challenging. thus playing a vital role in job satisfaction. Brief (1998) wrote: "If a person's work is interesting.

was r=. some research has found that job satisfaction is not significantly related to life satisfaction when other variables such as nonwork satisfaction and core self-evaluations are taken into account. An important finding for organizations to note is that job satisfaction has a rather tenuouscorrelation to productivity on the job.29). 2. and the notion that "a happy worker is a productive worker" should not be the foundation of organizational decision-making. Social interaction model. emotional dissonance. corrected for research artifacts and unreliability. such that for high-complexity jobs the correlation between satisfaction and performance is higher (ρ=. Further. the meta-analysis found that the relationship between satisfaction and performance can be moderated by job complexity. the relationship of satisfaction to productivity is not necessarily straightforward and can be influenced by a number of other work-related constructs. low organizational commitment. With regard to job performance. performance of emotional labor that produces desired outcomes could increase job satisfaction. However. meaning people who are satisfied with life tend to be satisfied with their job and people who are satisfied with their job tend to be satisfied with life.18.52) than for jobs of low to moderate complexity (ρ=. This correlation is reciprocal. as the idea that satisfaction and job performance are directly related to one another is often cited in the media and in some non-academic management literature. employee personality may be more important than job satisfaction. and low job satisfaction. both satisfaction and performance are the result of personality. the average true correlation. . RELATIONSHIPS AND PRACTICAL IMPLICATIONS Job Satisfaction can be an important indicator of how employees feel about their jobs and a predictor of work behaviours such as organizational citizenship. workers’ emotion regulation might beget responses from others during interpersonal encounters that subsequently impact their own job satisfaction. Emotional dissonance is a state of discrepancy between public displays of emotions and internal experiences of emotions. instead.and turnover. absenteeism. A recent meta-analysisfound an average uncorrected correlation between job satisfaction and productivity to be r=. that often follows the process of emotion regulation.30.1. Taking the social interaction perspective. This is a vital piece of information to researchers and businesses. In short. The link between job satisfaction and performance is thought to be a spurious relationship. One common research finding is that job satisfaction is correlated with life satisfaction. For example: The accumulation of favorable responses to displays of pleasant emotions might positively affect job satisfaction.Emotional dissonance is associated with high emotional exhaustion. Further. job satisfaction can partially mediate the relationship of personality variables and deviant work behaviors.

The workers derive satisfaction when the co-workers are helpful. Social status. AGE . friendly and co-operative.Job Satisfaction: Job Satisfaction is the favorableness or un-favorableness with which the employee views his work. Such factors as employee’s age. Bad supervision results in absenteeism and labor turnover. Contribute ultimately to job satisfaction. Supervisors of employment. Job Satisfaction is a part of life satisfaction. One’s associates with others had frequently been motivated as a factor in job satisfaction. desire and level of aspiration should be considered. The role of supervisor is a focal point for attitude formation. activity in the organizations etc. The nature of one’s environment of job is an important part of life as Job Satisfaction influences one’s general life satisfaction. Supervision is equally a strong contributor to the job satisfaction as well as to the job dissatisfaction. It expresses the amount of agreement between one’s expectation of the job and the rewards that the job provides. these attitudes are related to the job under condition with such specific factors such as wages. conditions of work. recreational outlets. PAY Studies also show that most of the workers felt satisfied when they are paid more adequately to the work performed by them. social relation on the job. However. CO-WORKERS Various studies had traced this factor as a factor of intermediate importance. thus. FACTORS INFLUENCING JOB SATISFACTION The major factors influencing job satisfaction are presented below: SUPERVISION To a worker. Certainly. The feelings of workers towards his supervisors are usually similar to his feeling towards the company. health temperature. is the result of various attitudes possessed by an employee. The relative important of pay would probably changing factor in job satisfaction or dissatisfaction. prompt settlement of grievances and fair treatment by employer. In a narrow sense. Good supervision results in higher production and good industrial relations. more comprehensive approach requires that many factors are to be included before a complete understanding of job satisfaction can be obtained. Further his family relationship. this seems reasonable because people like to be near their friends. Job Satisfaction.

it appears that besides the nature of job and job environment. age and other factors. The possible reason for this phenomenon may be that highly educated persons have very high expectations from their jobs . there are individual variables which affect job satisfaction. Most of the studies have revealed that the married person finds dissatisfaction in his job than his unmarried counterpart. Working conditions are more important to women workers than men workers. in other groups job satisfaction is lower and in other there is no difference at all. These expectations are based on an individual’s level of education. DETERMINANTS OF JOB SATISFACTION: While analyzing the various determinants of job satisfaction. nature of job. and situational variables determine the degree of job satisfaction. If their expectations are met from the jobs. several studies have found negative correlation between the level of education. Good working atmosphere and pleasant surroundings help increasing the production of industry. MARITAL STATUS Marital status has an important role in deciding the job satisfaction. Thus. In some groups job satisfaction is higher with increasing age. EDUCATION Studies conducted among various workers revealed that most of workers who had not completed their school education showed higher satisfaction level. Individual factors: Individuals have certain expectations from their jobs. The reasons stated to be are that wages were insufficient due to increased cost of living. However.Age has also been found to have a direct relationship to level job of satisfaction of employees. and job satisfaction. particularly higher level of education. WORKING CONDITION The result of various studies shows that working condition is an important factor. Therefore. educated workers felt less satisfied in their job. all those factors which provide a fit among individual variables. For example. Let us see what these factors are. Level of education: Level of education of an individual is a factor which determines the degree of job satisfaction. they feel satisfied. educations to children etc. we have to keep in mind that: all individuals do no derive the same degree of satisfaction though they perform the same job in the same job environment and at the same time.

particularly at the fag end of the career. Nature of job: Nature of job determines job satisfaction which is in the form of occupation level and job content. For example. applies more quickly. Age: Individuals experience different degree of job satisfaction at different stages of their life. These assumptions make them more satisfied. However. a routine and repetitive lesser satisfaction. In the literature export barriers have been operationalzed as export obstacles/ inhibitors.139) restricted his definition only to marketing barriers. they may have some unrealistic assumptions about what they are going to drive from their work. the degree of satisfaction progressively increases in job rotation. For example. he may not feel happy at the workplace. In their case. He defined marketing barriers as “those gaps. starts rising upto certain stage. This happens because high level jobs carry prestige and status in the society which itself becomes source of satisfaction for the job holders. other personal problems associated with him may affect his level of job satisfaction. It starts rising again as the people start to assess the jobs in right perspective and correct their assumptions. p. job satisfaction goes down because of fear of retirement and future outcome. problems or impediments. 1995). They all refer to. and finally dips to a low degree. professionals derive more satisfaction as compared to salaried people: factory workers are least satisfied. Job content: Job content refers to the intrinsic value of the job which depends on the requirement of skills for performing it.which remain unsatisfied. and job enrichment. and the degree of responsibility and growth it offers. operational and other international operations (Leondidou. Job satisfaction is high at the initial stage.Occupation level: Higher level jobs provide more satisfaction as compared to lower levels. when these assumptions fall short of reality. which need to be filled before the competitive producer becomes a . The possible reasons for this phenomenon are like this. which go beyond the marketing domain. job satisfaction goes down. there are other individual factors which affect job satisfaction. structural. Lall (1991. This definition of export barriers includes several factors. gets gradually reduced. Other factors: Besides the above two factors. If an individual does not have favourable social and family life. At the last. Peter’s principle which suggests that every individual tries to reach his level of incompetence. Similarly. A higher content of these factors provides higher satisfaction. Personal problems associated with him may affect his level of job satisfaction. attitudinal. job enlargement. When individuals join an organization.

successful exporter. .” Since the focus of this research is on export marketing problems the latter definition is suitable to this study.