MANAGEMENT

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Management is the art of getting things done through others and with formally organized groups. OR Management is the art and science of organizing and directing human efforts applied to control the forces and utilize the material of nature for the benefit of man. American society of mechanical engineers. Functional concept-as a process, management is what a manager performs. William Spriegel Management is the process by which a cooperative group directs action towards a common goal. Joseph Messie Human Relations concept-Management is the art of directing and inspiring people. J.D Mooney, and A.C Railey Leadership and decision making concept-Management is the art and science of decision-making and leadership. Donald J Clough Management means decision-making Ross Moore

Productivity concept-Management is the art of knowing what to do ------------ in the cheapest way. F.W Taylor Management is a technique of increasing productivity. --Management means designing, organizing defining goals formulating policies and strategies in accordance with the prevalent environmental conditions and these environmental conditions are known as situations. --Management is merging quality and variety with cost that is providing unlimited variety of goods, better quality and at lowest price level to the customers. --Management is defined as a process of identifying problems and threats and taking care of these problems and threats in such manner that ultimately these turn out into opportunities which could benefit the organization in accomplishment of its objectives.

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In latest view: Now a days in corporate sector taking advantage of the opportunities does not matter. What matters is to convert or translate the opportunities then to face difficulties. Definitions based on mixed views: Good management achieves a social objective with the best use of human and material energy and time and with satisfactions for the participants and the public. Mary cursing Niles Management is the direction of human behaviour towards a particular goal or objective. Conclusion: On the basis of all the above-mentioned definitions it can be asserted. Management is the process which by planning, organizing, staffing, leading and controlling, a human group makes possible the maximum and efficient use of physical resources and helps in realizing the predetermined objectives of any organization. ------In modern times when human needs are continuously rising, it is absolutely impossible to fulfill them single-handed. In such a situation the need of group activity is felt. Man cannot produce any single thing by himself alone and there is always the necessity of a human group whose activities and be named collective effort. Thus on human group produce one particular produce while another such group produce something different and hence, human needs are fulfill by collective efforts of different human groups. Now the question arises whether all the people’s comprising a particular human group are competent enough to achieve success in their activities without any outside discussion and control. The obvious to this all-important question can only be in the negative. The reason for such an answer is complex. So long particular human groups for into have their air aims, definite planning, proper distribution of work, defining rights and duties, establishing proper coordination among them, directing and controlling their activities, success cannot be achieved. These are the problems, which give rise to another question, which is equally important, and the question is how to overcome these problems? The answer to this really complex question in inherent in management. Through the medium of management all these above-mentioned problems can be solve. The activities of a human group can be efficiently managed on the pre-determined problems can be effectively achieved handling by a manager. It would not be out of place to mention here that the absence of proper management, the activities of a human group are like a ship without a captain. Thus it is evident that success of collective efforts requires some special power. AND THAT POWER IS THE MANAGER, who ensures the success of different activities by the
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process of management. It is important to classify here that the importance of management is not limited to business alone but it is needed at all those places where human activities take place-for example: educational Institutions, Religious Institution, Govt. departments, unions, forces, families.

MEANING OF MANAGEMENT “Anything minus Management is nothing”
--‘Sherlekar and Sherlekar’—

MANAGEMENT:
The word “management” can be styled as MANAGE-MEN-T. That means manage men tactfully. Why manage men tactfully. This is with a view to get the things done being with them. Thus management means managing men tactfully to get the things done being with them. Thus management. In order to manage men tactfully, one has to understand the highly unpredictable and uncertain human nature owing to this management is very complicated and challenging activity. Some times it is known as a group of administration officers working in a particular institution and sometimes it means a process of planning, organizing, staffing, directing, cocoordinating and controlling. In the light of different opinions the meaning of management can be analyzed in the following ways: (i) (ii) (iii) Management as a process: some times it is defined as a process. A process has means that different activities like planning, organizing, staffing, leading, controlling through a definite process. In other words, management is a definite process when coordinates different activities for the attainment of an aim or target set by an institution or organization. Management as a discipline: management is fast emerging as a discipline. Discipline here means a separate and recognized subject, which has its own identity. Management is also being recognized as separate syllabi because it has its own thoughts, principles and methodology. Management as a economic resource: economists have accepted management as a resource of production like other resources (land, labour, capital, material and machine). Production is not possible without these basic things. Management as a noun: when it is addressed as a noun, it is related to those persons who get other people’s work completed. E.g. board of directors, managing, general manages etc.

(iv) (v)

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which illustrate the nature of management. Integrated process Social process Activity based Group activity Art as well as science (viii) Multi disciplinary (ix) Intangible (x) Optimum coordination between human and material resources. creativity is the process of developing new ideas. A young and growing discipline.it means that management results are according to the situation. As a process: a series of interrelated functions performed in all organizational. As a group: a body of persons who perform the task of managing organization. It is that process in which work is done with others or it is got done from them. Nature or Characteristics of management: (i) (ii) (iii) (iv) (v) (vi) (vii) Goal oriented. An elite group in the society. Management is recognized as a continuous process.Meaning of management at glance: (i) (ii) (iii) (iv) As an activity: getting things done through others being with them. OR After a careful study of definitions we embark upon such features. As a discipline: a subject of study drawing upon knowledge of others disciplines. In order to achieve the pre-determined objective a 4 . (xxii) Management is creative and innovative formulate creativity. Such features are as follows: (i) It is a process: process means a systematic method of doing some work. Universal. (xi) The combination of multiple functions (xii) Management is a distinct entity. (xiii) Management is a profession (xiv) Management based on authorities (xv) It is needed at all level (xvi) It is a social responsibilities (xvii) Purposeful (xviii)It is an executive function (xix) It is a coordinating force (xx) Dynamic in nature (xxi) Management principles are relative not absolute ---.

staffing. The knowledge of management is also a qualification and managers also get their remuneration for it. The quality of a profession is that he must posses some special qualifications or ability for which he is paid remuneration. universal principles. creativity and continuous practice. A manager did these works in a continuous order. there should not be any doubt or hesitation to call it a profession. Hence. (vi) Management is a universal activity: it is clear that management is not only connected with business but also with non-business activities also. which is also important. Any activity. (vii) Management as a profession: when we have recognized the distinct entity of management. which is connected with the people living in society. scientific experiments. (ii) Group efforts: management always efforts to group efforts and does not apply to an individuals. MANAGEMENT – Art. which is not visible. 5 . leading and controlling etc. So. (v) Management has a distinct entity: in view of the widening scope of business it is not possible for an owner to perform all functions himself. (viii) Management is an intangible force: management is a force. with out objectives management would be difficult if not impossible. hence management does not mean one particular job but it happens to be a combination of various jobs. staffing. We can say that specially qualified experts are needed for managing the company. organizing. management is considered a profession. cause and effect relationship. That is why a manager has to perform various function like planning. personal skill.manager performs the work of planning. validity and predictability. leading and controlling. (ix) It is a combination of multiple functions: the basic function of management is to achieve the objectives of the organization successfully. Science and Profession: As a science: systematic body of knowledge. is called a social activity. As an art: practical knowledge. (iii) It is a social process: management is called a social activity because it is connected with the people working in a human group and which requires organizing their efforts. (iv) Attainment of pre-determined objectives: group efforts in management are always directed towards the achievement of some pre-determined objectives. it is a process. It can only be feel or realized on the basis of the success of an organization. A group rather than an individual can easily and effectively attain management of an enterprise. organizing. In this context management is also described as a social activity. Management is everywhere.

As a profession: specialized body of knowledge. 6 . formal education service motive. representative association and code of conduct management is not a full-fledged profession.

Similarly every manager has his individual approach and style on solving managerial problems. Management is a personalized process every manager has his own approach and techniques to solve problems. An artist must not only learn the theory but also its application in practice. The success of a manager depends on his personality in addition to his technical knowledge. OR Art implies the application of knowledge and skills to bring about the desired results. It seeks to achieve concrete practical results that is output.MANAGEMENT AS AN ART: Main features of art are: (i) Art involves the application of knowledge and skills to achieve desired results. Secondly. (iv) Art prescribes row to do things and it can be improved through continuous practice. 7 . depending upon the environment in which he works. Similarly a person cannot become a successful manager simply by reading the theory if must also learn to apply his knowledge in solving managerial problems in practical life. Personal skill: every artist has his own style and approach to his job. growth etc. Thus management fully lives up to the description of an Art and therefore it is an art. Thirdly. the manager gets perfection in the art of managing through continuous practice. A manager is judged not just by his technical knowledge but his efficiency in applying that knowledge. Practical knowledge: every art signifies practical knowledge. the process of management involves the use of knowledge and skills in solving various problems. (iii) Art is a personalized process as every artist has his own style or approach. Lastly. This is level of their personal skill. (ii) Art is essentially creative and the success of an artist is measured by the results he achieves. Features: 1. 2. Management is creative as the manager creates new things and improves upon the old things. Management is essentially an art because: Firstly. profits.

These principles are universal in nature and establish on cause and effect relationship. Every manager applies certain knowledge and skills to achieve the desired results. sociology. which is subject to constant changes and difficult to predict. Similarly a manager gains experience through regular practice and becomes more effective.3. chemistry etc. management is also a systematized body of knowledge. Thus management cannot be regarded as exact science like physics. Management is a science because: According to the given information about science. therefore management may be called an inexact science. Thus management cannot be regarded as an exact science like physics and chemistry. principles and techniques developed through observation and experience. Result oriented approach: art seeks to achieve concrete results. He uses CM’s to the growth of his organization. (iii) The scientific study is based on observation and experiments. OR Science means a systematic body of knowledge pertaining to a specific field of study. 8 . Management principles by heart it also requires practical application of those results. It deals with the study of behavior of human beings. (iv) The principles of science have universal validity and applicability. Improvement through practice: every artist becomes more and more efficient through constant practice. Creativity: art is basically creative therefore every piece of art requires imagination and intelligence to create. Conclusion: One cannot become efficient and effective manager simply by learning. It consists of various concepts. 5. as is the case with other social science like psychology. (ii) It is based on cause and effect relationship. It contains general principal and facts which explains a phenomenon. A manager effectively combines and coordinates the factors of production to create goods and services. MANAGEMENT AS A SCIENCE: Main features of science are: (i) Science is a systematized body of knowledge. 4. But the methods of observation followed by management are not purity objective because the subjects are human beings whose behaviors cannot be predicted with absolute accuracy.

These principles are flexible and need to be modified in different situations. which can be universally applied. There exists a substantially and rapidly expanding body of knowledge in management. Cause and effect relationship: principles of science lay down a cause and effect relationship between related factors. 4. So they can be explained logically. In order to practice a profession a person requires specialized knowledge of its principles and techniques. Management contains some fundamentals principles. Universal application: scientific principles represent basic facts about and a particular field of enquires. Restricted entry: there exist institutions and universities to impart education and training for a profession. These have been developed through practical and experimental experience of a large number of managers. Test of validity and predictability: validity of scientific principles can be tested at any time and any number of times. Conclusion: Management is not a perfect science like other physical science such as astronomy. No one can enter a profession without going through the prescribe course of learning. and biology etc. These help to explain events and serve as guidelines for managers in different types of organization. These principles may be applied in all situations and at all times. management is a separate discipline having a specialized and organized body of knowledge. 2. 5.Features: 1. Specialized body of knowledge: every profession has a well-defined body of knowledge relevant to the area of specialization. Management as a profession: A profession is a caving that requires specialized knowledge and often long intensive academic preparation: Features: 1. 3. management deals with people and it is very difficult to predict their behavior accurately so management is a social science. Principles of science can also be tested for their validity. Every time the test will give the same result. Management principles are also based on scientific enquiry and investigation. Systematic body of knowledge: management is a systematic body of knowledge consisting of general principles and techniques. similarly the principles of management establish cause and effect relationship between different variables. chemistry. 2. scientific principles are critically tested. physics. Scientific enquiry and experiment: scientific principles and derived through scientific investigation and reasoning. Today. Many institutions have been set up which offer courses for specialized 9 .

Managers have formed certain associations for the regular exchange of knowledge and experience. Any member violating the code can be punished and his membership can be cancelled. which contains rules and regulations providing the norms of honesty integrity and professional ethics.training in management. Service motive: a profession is a source of livelihood but professional are primarily motivated by the desire to serve the community. by the is also expected to produce quality goods at reasonable costs and to contribute to the well being of the community. A profession enjoys community sanction or respect. 3. 5. which regulates that profession. 10 . 4. Code of conduct: members of one profession have to abide by a code of conduct. A manager of a factory is responsible not only to its owners. The representative association to ensure self-discipline among its members enforces the code of conduct. Formal education and training has become very helpful in getting jobs as managers. Representative association: in every profession there is a statutory association or institution.

Most efficient use of the limited 1.Conclusion: Management fulfills several essentials of a profession but like other professions management does not restrict entry into managerial jobs. A manager with the help of his expertise and cleverness makes and assessment of the future events and finally by his corrective action makes the impossible took simple. which clearly highlight the importance of management. Achievement of group goals Optimum utilization of resources Minimization of cost Survival and growth of business Generation of employment National development OR According to Drucker. it is said that “any thing minus management is nothing. Achieving pre-determined objectives: each organization is established with certain aims. 4. management is a dynamic and life-giving element of every business. In its absence the means of production remain merely the means and can never be the producers. 11 . Objectives of management at a glance (i) (ii) (iii) (iv) (v) (vi) Securing maximum results with minimum efforts. Maximum prosperity for employer and employee. 2. We know that not only in the field of business but in other fields also management has come to occupy an important place. Maximum utilization of resources of production: management is that power which by establishing an effective coordination between the various resources of production makes an optimum use of these resources. Human better mere Elimination of all types of waste Economic growth Social justice Importance of management at glance: 1. 5. 3. 2.” These are some topics. In this reference. 6. Management is the only power and medium which can help in the successful attainment of these aims. to people with a special academic degree.

Management is the mover ad development in the consequence. It improves the personality and caliber of people to raise their efficiency and productivity. A good manager serves as a friend and guide to his subordinates. Human development: Management is not simply directions of things but the development of men. With the help of efficient and effective management a co-ordination between the new and prevalent work system and methods can be established to save the reputation of an organization. development is a matter of human energies rather than of economic growth and generation of human energies is the task of management. 7.resources is the key to the successful business and thus this fact can be converted into reality with the help of management. Increased profits. Stability: management ensures the survival of an organisation in a fast changing environment. 12. Research and investigation: a recent research has brought out the fact that only those companies or business enterprises which are constantly taking interest in research activities are developing very fast. Reduces cost of production. It co-ordinates the activities of different departments in an organisation and maintains team spirit amongst the personnel. 10. To maintain a sound organizational structure. Competition is increasing day by day. Fulfilling the social responsibility: Sound management monitors the environment of business and makes necessary changes in the business policies and practices so as to keep the consumers and workers satisfied to this way manager’s help an enterprise to fulfill its obligation towards different sections of society. Managers maintain a dynamic equilibrium between an enterprise and its environment through innovation and creativity. 11. 12 . Overcoming competition: these days business is not localized but it has assumed national or even international dimensions. 14. 5. So many goods having modern techniques are in the bazaar customers accept only those products which are cheap and the best. Management minimizes risks. 8. The environment of business has become very turbulent. In these competition days only that organization can survive which can make available to its customers the best quality of goods at the cheapest rates. 13. 9. 3. 6. Integration with changing environment: management is not only limited to various internal function of an organization but it has to compromise with the outer atmosphere also. Economic growth: Management is the catalyst of economic growth. Meets the challenge of change: Management is a catalytic force that enables an organisation to face the challenge of change. 4. Only an efficient and clever manager can make it a reality and save the reputation of an organization.

Basis of No. 6. Administration is a decision making function. Administration aims at determining the objectives. 3. 4. colleges. The term management is more applicable at middle level and lower level of management.. Management is generally used with reference to business enterprises. Management aims at achieving pre-determined objectives.MANAGEMENT AND ADMINISTRATION On the basis of different opinions of the experts over the world management and administration. there are three prevalent concepts: (i) American concepts: Administration is a higher-level activity or system and management is lower. universities etc. offices. difference 1. Administration decides what is to be done and when it is to be done. Meaning Purpose Nature Decisions Scope Usage Administration It means the determination of objectives. The term administration is generally used from business organizations like govt. (ii) (iii) DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION: Sr. In the modern scientific age of management this is the most prevalent and accepted concept of management and it makes no difference between management and administration. where he will do it. 5. English concepts: management is the higher-level system and it has more power than administration. plans and policies of an enterprise. 13 Management Management is to translate threats into opportunities. management and administration are synonymous. 2. Management decides who will do the function and how he will do it. The term administration is applicable at the top level of management. Management is an execution or doing function. . Modern concepts: According to it.

Technical and human skills used mainly in business organization. Vice . Registrar. Concerned It is concerned with determination of major object and policies. 14. LEVELS OF MANAGEMENT (MANAGERIAL HIERARCHY) The management levels may be classified as follows: (i) Top management (ii) Middle management (iii) Supervisory or operating management (iv) Top or executive management: 14 . 10. and public sector. Skills Conceptual and human skills used eagerly in govt. Governor etc. 12. Administration decisions are influenced by govt. 11. It is an executive or doing function. general manager. Relationship Administration is related mainly with the owner and top-level managers. Concerned It is not directly concerned with direction of human efforts. Level It is mainly top-level function. Function It is a determinative or thinking function. 15. Management decisions mainly influenced by target of enterprise. Features affecting decisions 8. are the Management is related with the workers and employers of organization. It concerned with the implementation of policies. Directing and organizing are main functions involved in it. Influence Its services are influenced mainly by public opinion and other outside forces. 9.7. branch manager etc. Minister. Managing director. It is a activity concerned with directions of human efforts in the executions of plans. social and political circumstances and economic additions. Involvement Planning and controlling are the main functions involved in it. 16. Managerial decisions are influenced mainly by objectives and policies of organization. sales manager.Chancellor. Commander. 13. It is largely a middle and lower level function. policies. Commissioner.

Features: (i) (ii) (iii) (iv) (v) (vi) To analyse and interpret changes in external environment of the company. finance manager etc. E. To appoint departmental heads and key executives. Intermediate management: Intermediate or upper middle management comprises departmental or divisional heads. Every divisional head is the overall uncharged of one particular division or department. works manager. (vii) To provide overall direction and leadership to the company. E. These executives serve as a link between intermediate or top management and the operating management. He maintains coordination among different departments of the company. He performs the usual managerial functions of planning. He also keeps the organization in harmony with its external environment. Chief executive is concerned with the overall management of the company’s operations. To establish long term corporate plans. staffing. area sales manager. It is the ultimate source of authority. directing and controlling in relation to one department. It is basically an organ of overall review and control. To formulate and approve the master budget and departmental budgets.g. (x) To decide the distribution of profits.g. office manager etc. branch manager. To design broad organization structure. It is also known as departmental or functional management. (ix) To represent the company to the outside world. It is their responsibility to ensure success of the organization. (viii) To exercise the overall review and control of the financial and operating results of the company. He is accountable for the performance of his division or department to the chief executive.Top management refers to the managing at the highest level in the management hierarchy. 15 . Top management consists of the board of directors and the chief executive or managing director they establish overall long-term goals and plans of the organization. To coordinate and integrate the activities of different departments and divisions of the company. organizing. marketing manager. Middle management: Middle management consists of all sectional heads. plant manager. He coordinates and controls the activities of all personal working in different branches of his department. It is held responsible for the general success or failure of the organization.

SKILLS OF A MANAGER 16 . 2. 4. Supervisory or operating or first-line management: This is the lowest level of management in an organization. motivate and develop supervisory personal. Function: 1. To advice and assist workers by explaining work procdures. (b) Process of management: it includes six m’s. It consists of supervisors. supervisors and operating managers maintain close contacts with rank and file workers and supervise day-to-day operations. To supervise and control workers operations and to maintain personal connection with them. 5. To report feedback information and workers problems to the higher authorities. (ii) To control the operating performance. Men Money Machine Material Market As a profession: you need proper degree. sales officers. 8. (iv) To train. 4. (v) To lay down rules and regulations to be followed by supervisory personnel. To arrange material and tools is maintain machinery. To maintain discipline and good human relations among workers. solving problems etc. CONCEPTS OF MANAGEMENT (a) 1. 6.Function: (i) To interpret and explain the plans and policies formulated by top management. and purchase officers etc. 2. To issue orders and instructions. 7. (iii) To cooperate among themselves so as to integrate the various activities of department. To assign jobs to workers and to make arrangements for their training and development. There are certain legal rules. 3. 5. They are concerned with the mechanics of jobs. foremen. 3. To plan day-to-day production with is the goals laid down by higher authorities.

Managers take the input from the society e. it creates a favorable impression on the society. So. the society is bound to improve in some kind or others. if managers will take part in social event or they will become responsible towards society. the managers are very creative and if they will take part in social problems. it will create a good impression on other people living or working under him it will motivate the sub-ordinates working under him. for the efficient working and smooth working small sub-systems should work properly. These decisions must be effective and practical in use as well. education values etc. Managers have a creative and also communicative skill. Technical skills: it is concerned with the application of skill or knowledge acquired. MANAGEMENT AND SOCIAL RESPONSIBILTIES FOR: Manager should have social responsibility for the people. Each principle and concept should be clear in the mind of a manager and he should be effectively able to apply him. 17 . Human skills: A manager should have Psychological knowledge. which will ultimately helps the business.g. the society is sure to make progress become one man can change the whole environment. Because manager is a person who is very skilled. According to System theory. Thus. Management does not simply mean the knowledge of principles of management rather it is its application which makes its effective. The had to interact with his subordinates. if he will take interest in the social functions or problem. superiors and other members relating to business. Decision making skills: in crucial times a manager should be able to have the ability of making decisions. It will thus create the source of motivation towards the society.In order to have a proper achievement of good and in order to have plan to be properly worked on a manager must have certain skills such as: (1) (2) (3) (4) Conceptual skills: A manager must have conceptual knowledge of management. He should able to deal with different persons in different circumstances. As their main task is to have the cordial relations with people inside the organization or outside the organization.

5. he should not make himself responsible towards the society. start thinking of social responsibility the whole work-system will turn inefficient. It owners of business. So generally take the responsibility (political parties. the play-ground is to achieve victory. but there are others who have expressed their opinion both sides are given as under:- Arguments against social responsibility: 1. resources. namely. which can get work out of people. Manager takes the salary for gobering his organizing properly not for solving the social problem of the society. Arbitrary power: Business managers will get arbitrary power in the matter of allocation of resources in the welfare of the society. which in itself is a painful delaminate. 6. interest groups etc) of improving are solving the problem of the society. Disregard of marketing mechanism: the doctrine of social responsibilities implies acceptance of socialist view that political mechanism rather than market mechanism is the appropriate way to allocate scarce resources to alternative uses. So. 18 . manager should not move his mind towards social responsibilities of the society. that in future business will come to occupy a position of predominance the idea of social responsibility of management opinion against. private market mechanism and social responsibilities which are opposite to each other.AGAINST: The main function of the manager is to govern his organization smoothly and efficiently. Effects of business values: Business should not have any social responsibility otherwise social values will come to be dominated by business values. 4. Contrary to the objective of business: Just as the primary objective of players in 2. the people in the beginning will be so thoroughly impressed by it. Inefficiency in the system: there is no power other than self-interest. OR There are many thinkers who have supported this. It means that when business is alive to its social responsibility. by ignoring self-interest. Conflicting consideration: A business manager will be guided by two considerations. They should have no right to interfere with the external environment of business. He should not be able to do his work properly. 3. The social problem should be left for those people. Thus. in the same way the chief objective of business is to enhance its profits by utilizing its.

People who have good environment. 7. which adversely affects the progress of business. 2. Business is a creation of the society and so it should respond to the demands of the society: Since business uses the resources which belong to the society. The social responsibilities of businessmen must be proportionate to their social power. 4. Long term self-interest of business: the social responsibility of business. the govt. It will also avoid 19 . customers and neighbours for business than those who are poor. It is the moral and right thing to do: It is widely agreed that businessmen today have considerable social power. The consumers will have to pay higher costs. and opportunity make better employees. 6. 3. Code of conduct: Members of a profession are bound to follow a code of conduct. If the businessmen do not assume social responsibilities. 8. Code of conduct includes rules connected with profession. their social power must be taken away by the society through government controls and regulations and other measures. The long-term self interests of the business are best served when business assumes social responsibilities: There is a growing realization on the part of the enlightened businessmen that it is in their self-interest to fulfill the demands and aspirations of the society. has to interfere increasingly in the business system. ignorant or oppressed. if taken care of in the present ensures the success of the organization in the future. Difficult implementation: the concept of social responsibility is ill conceived and ill defined and is difficult to be implemented.7. 5. Avoidance of govt. It is necessary that every business are obliged to use the social resources for the common good of society. This power is virtually granted to them by the society. Business is only a subsystem of society and this sub-system must contribute to the welfare of the main system. Public image of business would be improved: The business will retain the needed credibility with the public if it performs its social obligations. education. which must have a general relationship with social responsibilities. Argument for social responsibility: 1. Burden on customer: if the price in the market for a product does not truly reflect the relative costs of producing mechanism of the market place will be distorted. regulation: If business does not care of its social responsibility. Business is a part of society: Since business organizations are a part of society they must have a positive attitude towards the needs of society. 8. honesty and morality. which form its base.

the nature and circumstances of a particular condition. traits offered by the changes in environment. The consumers are well informed: They expect higher quality products at responsible rates. If they don’t get fair treatment form business. These are required to win co-operation of others and to build effective work teams. An awareness of the importance of human skills should be part of manager’s orientation. 20 . 5. Good relation with the workers. Planning skills: the manager must passes the skills of thinking the skills of analyzing the 2. conflict with the society in its own interest. It is not only the ability to specify why something happened but also the ability to develop certain possible outcomes. Human skills: human skills consist of the ability to work effectively with other people. Human skills are reflected in the way a manager perceives his superiors. environment. A manager must know which skills should be employed in his particular enterprise and be familiar enough with their potentiality to ask discerning question of his technical advisors. MANAGERIAL SKILLS: 1. Leading skill: leadership is the ability of individual to influence the people. Such skills help the manager to analyse the forces working in a situation and to take a broad and foresighted view of the organization. A manager must be clear about grouping of various jobs. Recognition of human factor is also included in leading skill of human factor various leadership track like communication and motivation are also included in the leadership skills. techniques and procedures involved in performing specific tasks. 3. it includes what is happening in the society organization and political system. He must be able to assess or guess the changes in environment. Technical skills: technical skills refer to the ability and knowledge in using the equipment. consumers and suppliers will lead to success of business. Organizing skills: organizing skill is needed to specify who will achieve what and how manager must be in a position of identification of specific activities and specific jobs. type of relationship to be established between various people and various jobs. These skills require specialized knowledge and proficiency in mechanics of a particular job. 4. These skills refer to the ability to visualize the entire picture or to consider a situation in its totality.9. Diagnostic skills: it includes the ability to determine by analyzing and examination. 6. He must be able to match two sets of environment on the basis of external and internal analysis. Conceptual skills: conceptual skills comprise the ability to see whole organization and interrelationships between its parts. It is the ability to it through unimportant aspects and quickly gets though the heart of problem. subordinates and peers. 7. they will organize themselves and compel the business its social responsibilities. span of management.

Selecting the best course of action. Not using any political or other strategies. The manager must be in a position to identify the problem. g. e. Providing correct information to organisation. credit facilities must be made available to the middle class people etc. financial institutions and advertising agencies. Formulating the plan by the application of the alternatives. Supporting the individual members of the association. f. Reaching to the main cause or the problem. 4. Sharing latest knowledge. Decision making skills: there are two types of decisions to be taken by the manager.: Birth growth and death of any organisation will generate according to statuary provisions and these will be governed by the government of the organisation and this can be done by 21 . mechanical components. 3. Responsibility towards govt. 2. 2. Responsibility towards union: employees union is recognized as the enemy of the organisation. b. There should be fair return on investment that is fair commission must be paid. Product must be checked for the quality. Controlling skill: there are certain standards. A manager must keep check on the activities of subordinates and must rectify them if there are any problems. 9. 3. which are fixed in a way such that accomplishment of those standards leads to the accomplishment of goals. You can survive in the vest way if the industry will survive: a. (i) Routine and program decision (ii) Non-routine and non-program decisions. Compiling with the norms lay down by the association. Indulging in fair and ethical competition. d. c. 6. Responsibility towards suppliers: people who supply raw material. Responsibilities of manager: 1. Searching for the alternative solution. 5. The course of action to be followed is as under: 1. There must be free testing of goods that is distribution of samples. It is the duty or says responsibility of the manager that the suppliers are being paid at the time. To motivate them the organisation must reward them. 4.8. Comparing merits and demerits of each solution. You can take the advantage by showing collectiveness. packaging (as in the case of children packaging plays a very important role). Responsibility towards distributors: it is the responsibility of the manager to check regular supply of the product.

A manager addressing the trade union is an example. trade union’s agents etc. 5. 10. complaints and competitive actions. The information relates to internal operations and external environment. Disturbance handler: This refers to taking charge when the organisation faces a problem or crises. The manager sets an example. Monitor: It implies seeking and receiving information about his organisation and external events. 7. Sending the correct information. Resource allocate: In this role a manager approves budgets and schedules sets priorities and distribute resources. Negotiator: As a negotiator a manager bargains with suppliers. governments. 6. Making speeches. legitimizes the power of subordinates and brings their needs in accord with those of his organisation. distributing gifts to retiring employees are examples of such ceremonial and social duties. Liaison: It describes the manager’s relationship with the outsiders. Organisation must try to operate as a model citizen. Organisation must not try to damage the culture of that area and must try to maintain the rich culture of that area. 2. 22 . An example is picking up a rumor about his organisation. Taxes and duties must be paid regularly. 9. industry groups etc. welcoming official visitors. a manager speaks for his organisation. dealers. A manager calling a staff meeting after a business trip is an example of such a role. feud between subordinates. Disseminators: It involves transmitting the information’s and judgments to the members of the organisations. Leader: This role defines the managers relationship with his own subordinates. 3. A manager maintains mutually beneficial relations with other organisations. Entrepreneur: It involves initiating changes or acting as a change agent. A manager handles conflicts. 8. 9. 8. Responsibility towards customers: Responsibility towards society: Responsibility towards competitors: Responsibility towards workers: Responsibility towards shareholders or owners: (i) (ii) (iii) (iv) Roles of a manager: There are different types of managerial roles some of them are given below: 1. For example a manager decides to launch a feasibility study for setting up a new plant. 7. 4. Spokesman: In this role. He hobbies and depends his enterprise.5. For example a strike. bestowing honors. Figurehead: In this role manager performs symbolic duties required by the status of his office. 6. boss of an important customer.

developing and maintaining the human resources required to achieve the organisation objective efficiently. (b) To define and establish authority responsibility relationship for the achievement of goals.Functions of management: 1. Staffing usually includes the following activities: (i) Human resource planning. Planning: It is a process of thinking before doing. 23 2. Personnel department of an organisation looks after the function of staffing. that is recruitment. Staffing: Staffing is the process of determining the manpower requirement that could meet the company’s objectives. Over all planning is deciding that in present. Staffing also involves upgrading of quality/skills of the staff to get higher performance from then. (ii) Announcing vacant positions. As a function of management organizing refers to the following: (a) Bringing together human and non-human resources that is the work to be done and its distribution in human resources. (d) Division of activities into jobs (e) Fitting individuals into jobs. In conclusion we can say that organizing refers to distribution of work to the superiors and sub-ordinates and fixing there authorities and responsibilities. what is to do in future. acquiring. and (f) Developing relationships. Staffing is a managerial function of attracting. (iii) Receiving applications. 3. . (c) Determination of objectives. It involves determinations of goals and the activities required to be performed to achieve the goals. Organising: Organizing refers to the way in which work of a group of people is arranged and distributed among the group members to achieve the objectives of an organisation. It consists: What is to be done? (i) How it is to be done? (ii) Where it is to be done? (iii) When it is to be done? (iv) By whom it is to be done? So planning is a process of shorting out the path for attaining the determined objective of the business.

Different types of rewards motivate different people. (e) Leading the subordinates to influence their activities towards achievement of goals. the manager must have leadership skills. Medical test. job enlargement. Directing or Leading: Directing as a function of management is concerned with instructing. while others are motivated by non-pecuniary incentives like job security. 24 . (c) Motivation: effective motivation is necessary for getting voluntary cooperation of the subordinates. 4. In order to get the cooperation of employees. Controlling: Controlling is a process of verifying whether actual performance is in accordance to the planned performance and to take corrective action wherever required.(iv) (v) (vi) (vii) (viii) 4. freedom to do work and recognition. A manager has always to tell the subordinates what to do. and than analyse the deviations and to take corrective measures to correct the deviations. 2. Establishment of standards. (d) Issuing orders and instruction by the superior. 5. Comparison of actual performance with the planed performance. 3. Interviewing. Leadership is concerned with influencing the behavior of followers. time taken etc. Measurement of actual performance. guiding and inspiring people in the organisation to contribute to the best of their capabilities for the achievement of organizational objectives. Every manager should study the behaviour of individuals working under him to provide him or her proper inducements. (b) Leadership: a good manager must also be an effective leader. The style of leadership will vary from situation to situation. Final selection and appointment letter. This process is necessary for making the subordinates understand what the management expects of them. (f) To ensure that the subordinates are working as per plans and policies. Orientation and placement. Administering test. Find out deviations. It involves the following steps: 1. It involves comparison of actual performance with the planned performance as to quality. quantity. To some financial incentives are important. He has to create an understanding in their minds in regard to these matters. As a conclusion directing includes the following: (a) Communication: it is the process of passing information and understanding from one person to another. how to do it and when to do it.

Ethics refer both to the body of moral principles governing a particular society or group and to the personal normal precepts of an individual. corporate ethics. They hold that a proposed course of action should be judged from the standpoint of greatest good for the greatest number of people. Ethics refer to a set of moral principles. which should pay a very significant role in guiding the conduct of managers and employees in the operation of any enterprise. 25 . meaning character. or deals that pervade a group. giving beliefs. or legal ethics are used to indicate the particular area of application. Ethics is concerned with what is right and what is wrong is human behaviour. Today ethics is the study of moral behaviour— the study of how the standards of moral conduct among the individuals are established and expressed behaviourally. ethros. It is normative and prescriptive. The word ethics comes from the Greek root. MANAGERIAL ETHICS: The term ‘ethics’ refers to value-oriented decisions and behaviour. Some people subscribe to a utilitarian reference in determining what is wrong and what is right. not neutral. a people--------. medical ethics. there are few absolute standards and each issue must be judged by studying its impact upon all affected parties. Taking corrective action. It addresses the question of what ought to be. Terms such as business ethics. From this point of view.5. the ethics involved in each area must still refer to the value-oriented decisions and behaviour of individuals. standards. But to have meaning. a community.

poverty.ETHICS AND SOCIAL RESPONSIBILITIES: The term ‘social responsibility’ conveys the moral conduct that relates to such broad issues as environmental pollution. we have great difficulty in resolving the problems caused by questionable acts such as paying bribes or similar actions unless a law is violated. An automobile manufacturer who produces cars with faulty brakes. However this distinction is not even followed in practice. Therefore. or a food company house TV ads promote substandard food items are socially irresponsible. discrimination. In management. increased poverty and like would be viewed as socially irresponsible---as not fulfilling its responsibility to society. The most responsible way to distinguish business ethics from social responsibility is in terms of a decision’s implications for society as a whole. Some people feel that social responsibility is linked to organisation and ethics to individuals. an organization whose practices contribute to inflation. DIFFICULTIES IN ESTABLISHING MANAGERIAL ETHICS: The problem of laying down managerial ethics is more complicated than it is in established professions such as medicine and law. business ethics are concerned with microethics (relating to daily operating decisions with limited social impact). decisions are made by people and therefore. The term ‘ethics’ is used to convey both ‘microethics’ and ‘macroethics’. 26 . In the final analyses. unemployment and inflation. there is no way to enforce them. There are four ways to establish acceptable standards of behaviour. But if law dictates ethical behaviour. The physician and lawyer understand clearly that their responsibility is to the patient or the client. the manufacturer who markets a highly inflammable article of clothing. a pharmaceutical house that makes false claims about its comd remedies. Within this frame of reference. but this is not a useful distinction. social responsibility is concerned with macroethics relating to decision with broad implications for a large segment of society. There is no comparable management organisation that possessed the right to enforce ethical standards. The executive who lies about a competitor’s product. the legal system also becomes the ethical system and where higher standards of behaviour than those required by law are desired. individual managers at some level must assume responsibility for every corporate decision. The first is the establishment of minimum standards of behaviour by law. unemployment. the manager enjoys no such security. the industrialist who dumps pollutants into a stream-all behaves in an ethically irresponsible way. Established medical and legal associations have the legitimate authority to enforce standards of behaviour. Accordingly. employees and customers so that the “client group” is often impossible to identify and isolate. Whereas the physician’s actions are “ethical” if the patient’s interests are served. The manager is torn between the interests of owners.

Nothing approaching this presently exists. In India and other countries. Any move n this direction would be.the true meaning of personal morality. But how to enforce the standards and make allowances for organizational and environmental differences is the main problem. however. an attempt should be made to develop accepted code of ethics to guide managerial action. One final option is the development of individual organizational code of behaviour. engineering and accounting and establish a professional society to enforce codes of behaviour for the managers. 27 . This option would. But the individual organizational codes do not provide for uniform standards required of business. require a new type of management organisation with mandatory membership. law. management associations have attempted this approach. professional certification. This idea has a great deal of support and shortterm promise. long-range in character. individual responsibility and free choice is lost. at best. and so on. Secondly. The third approach is to follow the lead of medicine.

That is why. For instance.W. 3. we shall discuss the ideas of several contributors such as Taylor. Luther Gulick. 5.EVOLUTION OF MANAGEMENT THOUGHT: 1. Classical (Traditional) approach: 2. 6. can increase efficiency. F. All these thinkers were dissatisfied. 4. Taylor’s scientific management has been referred to as ‘machine theory’. Taylor emphasized on division of labour. It may be noted that scientific management group emphasized efficiency of lower levels of organisation. (a) Bureaucracy (Weber’s) (b) Scientific management (Taylor’s) (c) Management process school (Fayol) (Administrative theory) Human relations approach (Neo-classifical approach) (Elton mayo) (It helps in loving and caring the employees. fixing everybody’s work for the day and functional formanship. Features: 28 . Organisation is treated like a machine and so making each individual. and Max Weber. in one way or the other. with the organizational practices of their time. It was Henri Fayol who showed concern for efficiency at the higher levels for the first time. Fayol. working in the organisation efficient. In this theory. it held the stress on social aspects only): Behavioural science approach (Neo-classifical approach): Systems approach (Modern approach) (There should harmony among the sub-systems and among different departments of organisation): Contingency approach (Modern approach) (different theories needed for different situations): Quantitative approach (Modern approach): Classical theory: The classical organisation theory is also called the traditional theory. The classical organisation theorists dealt almost exclusively with the anatomy of formal organisation.

and the integration of the system is achieved though the authority and control of the central mechanism. psychological and motivational aspects of human behaviour. conflict and failure and thus made ‘man’ subordinate to the organisation. (c) Inadequate emphasis on human beings: the interplay of individual personality. Classical theory is in its essential character centralized. classical theory assumes man to be relatively homogenous and relatively unmodifiable. informal groups and inter-organisational conflicts in the formal structure appears to be neglected by the classical writers. defined tasks and accountability and formalized procedures and practices to minimize conflict between them. Classical organisation theory is built around an accounting model. The worker is essentially an ‘economic man’ who can be motivated basically by economic rewards. In designing the hob and in picking the extra pair of hands. g. Money is considered the main motivator under this theory. d. Several researches in human behaviour have contradicted this assumption. having no interaction with the environment. Stability of the employees-stability in the sense of minimizing changes within the employees-is a goal in the organisation. This approach to the organisation is the embodiment of the extra pair of hands concept. Non-monetary factors like better status and job enrichment can also motivate the workers. The relationship between workers and management is established through formal communications. A modern organisation is an open dynamic system. e. Bennis feels that the focus of classical theory is on ‘organisation without people’. This assumption is totally unrealistic. that is. (e) Hierarchical structure: the classical theory is based upon the hierarchical structure that establishes the authority relationship between individuals in an 29 . (b) Unrealistic assumption about human behaviour: The classical writers lacked sensibility to the Behavioural dimensions of an organisation and made over-simplified and mechanistic assumptions for the smooth running of organisation ignoring all complexities of human who perform tasks assigned to them and ignored their social. (d) Economic rewards as main motivators: the assumption that people at work can be motivated solely through economic rewards is also wrong. Criticism of classical theory: The classical theory is criticized on the following grounds: (a) Closed system: Classical theorists have viewed organisation as a closed system. which has interaction with the environment.The classical theory is more or less mechanical in nature as is revealed by its following features: a. This assumption of classical writhers led the workers to frustration. Human behaviour is most unpredictable and complex. c. b. f.

suggest that none of the principles has such characteristics. (ii) different management levels in the same organisation. (d) A system of rules covering the rights and duties of employees. there are many of the principles. Over emphasis on universality: classical theorists have claimed that these principles have universal application. Bureaucratic behaviour: Weber’s ‘ideal’ bureaucracy. It visualizes a machine model of organisation characterized by impersonal control over human beings. etc. The theory of bureaucracy is based upon hierarchy of authority and web of rules and relations. Bureaucracy: According to the name bureaucracy theory was evolved by the German sociologist Max Weber (1864-1920). Characteristics: (a) A well-defined hierarchy of authority with clear lines of authority and control and responsibility concentrated at the top of the hierarchy. (b) A high degree of specialization. Peter Drucker. This suggests that the same principles can be applied in: (i) different organisations. a major constituent of classical theory. (h) Recruitment of managers on the basis of ability and technical knowledge.(f) (g) organisation. (c) A division of work based on functional departmentation. Moreover. (f) A centralized system of written documents (“the files”) for collecting and summarizing the activities of the organisation. This was a very narrow approach as it concentrated only on line and staff structures. however. Ernest Dale. which are actually contradictory with other principles. The empirical researches. and (iii) different functions of the same organisation. have also criticized universality concept. (e) A definite system of procedures for dealing with the work situation and “rationally” coordinating activities. (g) Impersonality of relationships between employees. suggested strict adherence to rules and regulations. It attempted to prescribe the ‘right’ organisational structure. For example. The classical writers did not explore why certain forms of organisational structure are more effective than others. The result is red-tapism and observation of rules and regulations becomes the main objective while the real objectives for which these rules and regulations are formed are forgotten. 30 . principle of specialization is quite in conflict with the principles of unity of command. The scope for individual initiative and their contribution to the organisation goal is thus limited.

or “bureaucratic model. Every superior ties to increase the number of his subordinates as if this number is considered a symbol of power and prestige. 5. Promotions in real life can result from “whom one knows” and “how one plays the organisation game” rather from technical ability. inflexible structure manned by “robots”. The specialization of labour often inhibits effective communication among technical specialists and between higher and lower levels of the organisation. It cannot be wished away. Despite its drawbacks. perpetuated and multiplied for their own sake as also to pass the buck. Competent people may be denied promotion. Bureaucracy involves excessive paperwork. stationery and space. It is hard to destroy bureaucracy even if it has outlived its utility. All documents have to be maintained in their draft and original forms. Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks.The bureaucracy. Weber hoped that would be used to understand how and why organisations were structured as they were. But Weber’s bureaucratic model quickly became synonymous with a rigid. meaningless hurdles. 6. Various grounds of criticism of bureaucracy are as under: 1.W. adequate procedures and rules. and some centralization was and is clearly better than having no organisation at all. and reconciling the individual needs and organisational goals. it immediately brings to mind visions of a ponderous. They often breed resistance to change. bureaucracy has become an integral feature of modern organisations. The procedures and rules sometimes encourage organisational members to act mechanically rather than exercising initiative and using their inherent creativity. and the standard against which other organisations would be compared. Having some specialization. 2. slowly moving organisation-one steeped in red tape. This leads to great wastage of time. therefore necessary to overcome its negative aspects through proper application of rules and regulations. The procedures are nevertheless valued. 3. Criticism of bureaucracy: Today when we hear the word “bureaucracy”. unbending. as every decision must be put in writing. an exaggeration. Personnel in a bureaucracy tend to use their positions and resources to perpetuate self-interests or the interests of their sub-units. It was a theory. But like most “ideal” forms of anything it was an extreme. 4.” was one of the first theories of organisation. It is. and inefficiency. F. Taylor’s scientific management (1856-1916): 31 .

32 . Taylor conducted a series of experiments over a period of more than two decades. machines and tools which led him to the development of a coordinated system of shop management. not the rule of thumb: according to this principle scientific methods should be developed and used to perform each job and job should not be done as a rule of thumb. In short. Thirdly the best way of doing the work and a last maintaining standard working conditions and providing standard tools and equipments. Science. which made him very popular. it focused attention on his philosophy on management. the main objective of scientific management was to eliminate wastage and increase the all round efficiency in the working of the organisation. He launched a new movement in 1955. 1. he joined Bethlehem Steel Company where he introduced scientific management. Taylor is regarded as the father of scientific management. speed metals and the like. which is known as ‘scientific management’. Taylor presented his first paper entitled “Shop management” was published in 1903. Other experiments related to the way men handled materials. U. After leaving Midvale Steel Works. For this purpose first normal time required to perform a job should be determined. we should think before doing. he wanted to apply scientific reasoning to management.W. He was the first person who insisted on the introduction of scientific methods in management. He was highly opposed by the management and the workers and his services were terminated unceremoniously in 1901. According to him. He was born in 1856 in Philadelphia. Taylor was a man of strong will and convictions. he experimented in different fields to eliminate wastage of all types.A. it may be pointed out that the last two works were combined in one book entitled ‘scientific management’ in 1947 by Harper and Brothers. That is why. His famous book “principles and methods of scientific management” was published in 1911 and his other contribution was “testimony before the special house committee” which was given in 1912. One of his experiments led to the discovery of high-speed steel. He experimented with machine tools. Secondly fair days work of the workman be determined.S. Taylor scientific management means managing the affairs of an organisation scientifically in contrast to the rule of thumb approach. He is regarded as the father of scientific management.F. he started his career as an apprentice in a small machine making shop in 1870 and rose to the position of chief engineer of Midvale Steel works in 1884 at the age of 28. Taylor’s principles of management: Taylor developed a number of principles of scientific management. scientific management is the art of knowing exactly what you want men to do and then that they do it in the best and cheapest way. increase the efficiency of workers and provide for functional management.

g. 5. 3. Maximum prosperity for employers and employees: this principle requires that the aim of management should be to secure maximum prosperity for the employers along with the maximum welfare of employees. 3. accounting and personnel. 4. Division of work and responsibility (separation of planning and operational works): there should be clear-cut division of work and responsibility between work and management. 2. So selection should be based on tests and interviews in specified field. not individualism): according to this principle objectives of organisation can only be achieved by close cooperation between all the workers and all the levels of management in an organisation and each superior and subordinate should cooperate each other to achieve the common objective of the organisation. But this is not feasible in practice as it violates the principle of unity of command. planning is the work of management and so managers should be responsible for the proper planning where as execution of plan is the work of workers and so worker should be responsible for proper execution of planning.2. Scientific selection. training be given if required and their capabilities should be developed to the maximum. Taylor advocated the concept of functional foremanship to bring about specialization in the organisation. 5. So management should create suitable working condition and resolve all problems scientifically and the workers should perform their job devotedly and use the resources efficiently. It was argued that the principles of scientific management as advocated by Taylor were confined mostly to production management. Scientific management is based on the assumption that people are motivated by material gains. 6. Trade unionists regarded the principles of scientific management as the means to exploit labour because the wages of the workers were not increased in direct proportion to productivity increases. The use of the word ‘scientific’ before ‘management’ was objected because what is actually meant be scientific management is nothing but a scientific approach to management. which they have performed. Taylor and his associated concentrated on physical and economic needs 33 . marketing. Criticism of scientific management: Taylor’s work was criticised on the following grounds: 1. training of the workers: this principle suggests that skills and experience of the workers must be properly matched with the jobs. Close co-operation between workers and management (cooperation. Mental revolution (harmony): in an organisation the personnel’s (persons who are working on an organisation) should be made mentally prepared to perform the activities assigned to them. He ignored certain other essential aspects of management like finance. E. 4.

Scientific management has thus been described as a theory of industrial engineering. participation and recognition. and over-looked the social and ego needs of people. Monotonous work: the workers are supposes co work only the specified portion of work continuously for many years the same work for many years make the work monotonous. This leads to loss of initiative from the workers and they cannot suggest better method of work. Workers also want job satisfaction. 13. It creates a lot of physical and mental strain on them. without much regard for their health and safety. Scientific management is quite limited in scope. They further allege and too much of standardization. The differential piecewage divides the worker into efficient and inefficient. 7. Increase in work speed: in scientific management the workers are supposed to work with more speed. 34 . Lack of employment opportunities: more work by lesser worker thus reduces the chance of more employment. Exploitation: workers are not given their due shares in the gains due to increased productivity of the enterprise. Loss of workers skill and initiative: he workers had to work according to the instructions of the foreman. Comparatively. Speeding up of workers: workers feel that scientific management is nothing but a device to force workers to a greater speed. OR 1. Weakness of trade unionism: scientific management reduces the role of trade unions as standards of outputs. Scientific management may lead to accuracy. 10. 2. Later experience has revealed that financial gain is not the only thing that matters. no chance to show skill: in scientific management workers are supposed to work according one schedule and no thought is given to personal within and skill. 8. which affects their health. 11. It focused attention completely on efficiency at the shop floor. 12. It cuts the roots of trade union movement. due to loss of workers initiative it results into lower productivity. as workers have to carry out the instructions of their functional basis.6. less efficient workers who are failed to achieve the standard are penalized wages do not rise in the same proportion in which productivity of labour increases. 9. a prerequisite for scientific term. There is little scope of bargaining on this ratter. As a consequence management became the study of shop management while the more general aspects were overlooked. Lack of initiative: no chance is left to show their ability only a mechanized process of work is followed. wages and working conditions are determined on scientific bases.

g. Functional foremanship involves supervision of a worker by several specialist foremen. Standardization of work: according to this technique standards should be fixed at every level. Standard working conditions are provided at work place. weights and other measures should be fixed. matter relating to the speed of work of a worker should be supervised by speed supervisor and repair and quantity there of should be supervised by the repair supervisor. size. Unsuitable for small-scale unit: some employers are of the opinion that scientific management is only suitable for large-scale units. This makes the work monotonous and worker lends to lose interest in his job. 4. Standard time required performing a unit of job and standard working hours of a fair day. Exploitation of workers: the workers feel that gains increased profit is taken away by investors and only insignificant benefit is given to the workers by way of increase in wages and bonus. thereby. 2. efficient workers get more wages as compared to the inefficient ones due to the differental wage incentive scheme.3. increases their efficiency by standardization and decision of labour. increases the hourly or daily output per worker. it creates unemployment by requiring lesser number of workers. Standard performance of machines in a standard time. Small-scale units cannot afford to introduce the scheme of scientific management. 6. Functional foremanship: Taylor believed that a single foreman might not be competent to supervise all functional matters. But by rest he will regain stamina. Techniques or elements of scientific management: 1. 5. 7. standard tools and equipments should be provided to the workers. Every worker is expected to perform his small part of a job due to specialization.g. Unemployment: Scientific management reduces the number of processes and motions of workers. E. 3. Standard. quality. 35 . Discrimination between workers: under this. 8. Undemocratic in nature: workers object that scientific management is undemocratic in nature as it gives absolute control over workers to the functional bosses. E. So this concept is opposite of the principle of unity of command. 4. The workers have to follow the instruction of the bosses without thinking on the part of the workers. Fatigue study: according to this technique management should determined the amount and frequency of rest intervals in completing a task. Because human being is bound to feel tired if works without rest interval for a long period and after getting tired he will not be able to perform the job with full capacity. Simplification of work: the work should be simplified in a way so that an average worker can easily understand the steps to be performed to do a specified job. So that the jobs can be performed efficiently. Monotony: under this function of planning is separated from that of doing. Simplification will certainly improve the efficiency resulting more production and reduction in cost and wastages.

6. Commercial. Administrative theory: Henri Fayol was a French industrialist. 5. Accounting. Purpose of time study is to determine standard time required to perform a specified job and so fair days work/workman. He joined a French mining company in 1860 as an engineer and rise to the position of its managing director 1888. Its purpose is to determine the best way of doing a job by eliminating the wasteful motion. and Managerial. 3. Through. Financial. resulting wastages. 1. 9. 8. A positive attitude of both towards each other each necessary there must be an environment in an organisation in which the workers feel that the management is exploiting them. On the other hand management also should have no concept that the workers have a tendency of miss use of tools and equipments. shoes may be manufactured manually or by machines. The inefficient worker will also try to do to the maximum of his capacity and so the habit of doing the best and more in an efficient manner is develop. which was translated into English in 1929 under the title “general and industrial management”. So the organisation should try to find out the best way to perform the task. Fayol began by dividing all industrial activities into six groups: Technical. Time study is conducted with the help of stopwatch. his long practical experience Fayol developed a general theory of management. Mental revolution: working of the subordinate and superior is based on whether they are mentally prepare for doing the job or not. which involves close observation of movements of body and limps required to perform a job. 7. Motion study: motion study is a technique. which ever costs less be adopted. which will further reduce the fatigue resulting improvement in efficiency. “administration industrial general” in French in 1916. Time study: time study is a technique.5. 6. He gives a lot of principles of management which are explained below: 36 .g. Security. which is used to measure/determine the time that may be taken by workmen of average skills/ability to perform a job/task. 4. Deferential wage system: in this technique Taylor suggested that differential wage system for the wages to the employees on the basis of their performance should be introduced which will develop the idea/concept “do more to earn more”. E. 2. Method study: there may be various methods to perform a job with different cost requirements. Micro chronometer is the tool of study. He published a book.

8. Authority refers to the right of a superior to give orders to subordinates regarding use resources of the organisation and to take decisions on specified matter. a subordinate should receive orders and be accountable to one and only one superior. 9. Some times orders. Parity of authority and responsibility: authority and responsibility are two sides of same coin. should be asked to receive orders and instructions from more than one superior. suggestion. No employees therefore. In other words. Subordination of individual interest to general interest: the interest of the organisation must precedence over the interest of individuals. means obligation with respect to the performance of functions and achieving goals. According to which two employees at the same level can communicate each other directly. 3. sharing authority downwards leads to decentralization Fayol says that an organisation should strive to achieve a balance between centralisation and decentralization. Discipline: discipline in the context of management means obedience that is complying with rules and regulations of the organisation. 5. and placement of people called social order. 12. Centralisation and decentralization: when top management retains most of the decision making authority. 6. Order: this principle is important to make the best use of personal and to avoid unnecessary delay in work. Fair remuneration to employees: remuneration of employees should be fair and reasonable wages should be determined on the basis work assigned cost of living. 2. But each one of them must inform to his own superior. Unity of command: according to this principle. complain got delate. which is called material orders. and financial position of the business. is called centralisation. It leads to specialization.1. Unity of direction: efforts of all the members of the organisation should be directed towards common goals. 11. 4. 7. Responsibility on the other hand. Scalar chain: it includes the chain of superiors from the top to the lowest rank in management. Equity: the principle of equity suggests that similar treatment is given to the people in similar positions workers performing similar jobs should be paid the same wage rate. This principle ensures “unity of action. There must be parity between authority and responsibility. Each manager is superior to the manager below him but he is also subordinate to his own superior. individuals should give up their personal interest in the interest of the enterprise. Division of labour: division of labour means dividing the work among members of organisations. It increases the efficiency of individual employee. According to this principle each superior is to provide direction or instruction to immediate subordinate and subordinate to suggest or to complain to his immediate superior. 10. The principle is concerned with arrangement of things. Employees should not be moved from their 37 . Therefore the avoid the delays Fayol suggested the concept of “gang plank”. Stability of tenure of personnel: this principle stresses on the stability of terms of employee on the job and in the organisation. While communicating because of the strict compliance of scalar chain. and coordination”. directions.

Focus Its focus is increasing Its focus is to improve over productivity by way of works all administration by simplification. incentives and dimensions provided to the employees help in reduction of absenteeism and frequent turnover. and provides efficiency teamwork and loyalty. Group efforts are more effective than the total of individual’s efforts. On the other hand. Purpose To increase the productivity of To develop general theory (contributio workers by eliminating the of administration. Fayol analysed management from the angle of top management downward. Sr. 2. Difference between Taylor’s scientific management and Fayol’s principles: Basis of Taylor’s scientific management Fayol’s principle difference Beginning Taylor begins from lower Fayol begin from top worker and moved upward. 6. Taylor called his philosophy scientific ‘management’ while Fayol described his approach as “general theory of administration”. It increases zeal and belongingness. Esprit de corps: these French words are the synonyms of English proverb “union is strength”. 2. 1. with emphasis on coordination. 3. Results Its results are based on Its results are based on scientific observation. 1. He. no. Thus this principle.13. Taylor looked at management from the supervisory viewpoint and tried to improve efficiency at the operating level. the top level. therefore emphasis the need for team works. management and moved downward. 5. Initiative: the employees at all levels should be given some freedom to adopt techniques and methods to accomplish their tasks. 3. study etc. 14. Taylor focused his attention on factory management and his principles are directly applicable at the shop floor. therefore. But Fayol concentrated on the functions of managers and on the 38 . Level of Taylor gave importance to the Fayol gave importance to management operating level. Rigidity Taylor’s principles are Fayol’s principles are comparatively rigid. n) wastes. had a broader vision and a wider perspective than Taylor. Fir wages recognisation of work. He moved upwards while formulating his theory. comparatively flexible. positions frequently. time and motion adopting certain principles. This will create initiative and enforce efficiency. OR 4. personal experiences.

production increased in both the rooms. Fourteen workers constituted the work group on piecework basis.4. But Fayol tried to develop universal truths or principles from personal experiences. rest pauses. these experiments were conducted in the Hawthorne plant of western electric company in Chicago (USA). Bank wiring observation room study: this study was conducting to analyse the functioning of a small group and its impact on the behavior of individual workers. Contrary to the hypothesis of scientific management. Mass interviewing programme: the researchers conducted thousands of interviews to determine the attitudes of employees towards their job. (b) Worker’s complaints are not necessarily objective statements of facts. As there was freedom of work. Fayol attempted to develop a universal theory of management. These experiments may be classified into four stages: 1. 4. He also stressed upon the need for teaching the theory and practice of management. (c) Workers are influenced in their demands by experiences both inside and outside the factory. These experiments revealed that there was something more than illumination. The hypothesis was that each worker would produce mare. During the course of experiment a series of changes were introduced such as piecework. He and his team eared out the famous Hawthorne Experiments. from 1927-1932. 5. The main findings of the programme were as under: (a) Merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale. working conditions. other group was placed in a different room where the light was deem. The findings of Bank wiring experiment included: (a) Each individual was restricting output. Taylor developed techniques of management through scientific observation and measurement of workers operations. they developed a sense of belonging and responsibility. (b) The group had its own 39 . However. The group was restricting the output of individual worker through various forms of social pressure. general principles of management. The researchers conclude that the productivity increased due to a change in the girl’s attitudes towards work and their groups. which affected productivity. 3. shorter working hours and least rest hours. HUMAN RELATIONS APPROACH: This theory was given by GEORGE ELTON MAYO (1880-1949). 2. Relay Assembly Test Room Experiment: in this a group of six female workers was asked to work in a separate room. the result was different. supervision and the company. One group was placed in a room where lighting remains constant. which could be equally applied to all spheres of human activity. The aims of Taylor were to improve productivity of labour and to eliminate all types of waste through standardization of work and tools. Illumination experiments: workers were divided into two groups.

A person who resists pressure to change his behaviour as an individual often changes it quite readily if the group of which he is a member changes its behaviour. and criticism of the Hawthorne began to arise. Money is only one of the motivators. At the workplace. . In an admittedly radical criticism. The group plays an important role in determining the attitudes and performance of individual workers. Employees in any organisation get satisfaction not by economic incentives but by the satisfaction of many other social and psychological wants. (d) Departmental records were distorted due to differences between actual and reported output or between standard and reported working time. therefore. The most serious criticism made of the Hawthorne studies related to the research methodology employed. most of the human relations theory and practice are based on a relatively few observations of some small samples of human beings at work. Mayo and his associates focused their attention on interpersonal relations. continued for an adequate theory. 2. He may behave irrationally as far as rewards from the job are concerned. 4. 9. 5. 40 7. The search. Conclusions of Human Relation Approach: 1. Criticism of Human Relations Approach: 1. human motivation and so on.“unofficial” standards of performance. Alex Carey maintains that the Hawthorne researchers minimized the effects of economic incentives for no apparent justifiable reason and elevated supervision and interpersonal relations to a point of primary importance. He helps the workers t function as a social group and the formal group is rendered ineffective unless he conforms to the norms of the group. but not the sole motivator of human behaviour. the workers often do not act or react as individuals but as members of groups. 2. desires and so on. There is an emergence of informal leadership as against formal leadership and that sets and enforces group norms. 6. leadership skills. Man’s approach is not always rational. The business organisation is a social system. 3. Management must aim at developing social and leadership skills in addition to technical skill. it is ultimately cooperative attitude and not the mere command. group dynamics. Man is diversely motivated and socio-psychological factors act as important motivators. which he supposed to be incharge. Morale and productivity go hand in hand in an organisation. (c) Individual output remained fairly constant over a period of time. In an organisation. which yields results. feelings. 8. But it was pointed out by the critics of the human relations approach that human relations are not the ultimate answer to the problems of management. For example.

scientific selection and training of people and mental revolution. This assumption does not hold good in practice. No. The human relations approach lacks adequate focus on work. It applied scientific method. motivation and employee morale. Originated from the Hawthorne experiments conducted by the psychologists and sociologists. 3.3. 6. Taylor. Originated from the experiments of Taylor in dealing with the problems of factories. Focused on the study of the productivity problems of industry. groups may create problems and collective decision-making may not be possible. The main concepts are job satisfaction. But in practice. It puts all the emphasis on interpersonal relations and on the informal group. 2. Focused on the study of individuals. 4. Human Relations Approach Propounded by Elton Mayo. It discarded the engineering approach. BEHAVIOURAL SCIENCE APPROACH: 41 . his needs and behaviour. It is assumed that all organisational problems are amenable to solutions through human relations. It tends to overemphasize the psychological aspects at the cost of the structural and technical aspects. The human relations approach overemphasizes the group and group decision-making. Scientific management is a part of classical theory of organisation. 4. Scientific management Propounded by F. 5. Comparison of Scientific management and Human Relations Approach: Sr. The main concepts are scientific task setting.W. 1. 5. Human relations approach represents neo-classical theory of organisation. Suggested human relations as a method of achieving higher productivity. Suggested an engineering approach to management problems.

he is a complex individual. the behavioral approach focuses on the workers in these jobs. Safety needs: these consist of safety against murder. 3. Many of the conclusions of the Howthorne studies were reaffirmed by the subsequent research studies. It respects a more. motivations. power. Classification of human needs by Maslow as under: 1. Self-fulfillment: it is the need to fulfill what a person considers to be his real mission of life. Workers desisted the formal and impersonal approach of classical writers. accident. 5. friends and other social groups. Maslow is of the opinion that these needs have a hierarchy and are satisfied one by one. Development of organisational behaviour: pioneers of the human relation movement stressed inter-personal relations and neglected the group behaviour patterns.1. group dynamics) that influence employee performance. (c) It discussed the psychological variables like motivations. shelter etc. achievement. behaviour patterns and performance of individuals and group in an organisational setting. prestige etc. This gave rise to the Behavioural approach. but certain ideas were extended and others 42 . Ego or esteem needs: these are the needs derived from recognition status. While the classical approach focuses on the job of workers. (b) The role and contribution of organisation behaviour in workers. Physiological needs: these needs are related to the survival and maintenance of life. belonging or association with family. Contributions of Behavioural science approach: The behavioural science approach is concerned with the social and psychological aspects of human behaviour in organisation. These include food. affection. fire. (d) Man is a self-actualizing being. Social needs: these needs include need for love. clothing. security against unemployment etc. Interdisciplinary and multi-dimensional approach to worker behaviour organisation behaviour involves the study of the attitudes. This led to the development of field of organisational behaviour. leading etc. 4. It says that: (a) Man is not a social individual. The behavioral approach focuses on the psychological and sociological processes (attitude. 2. Human relations movements: Hawthorne expressed it. When first needs are satisfied then person moves to second---------so on. 2. Two branches contributed to the Behavioural approach. Behavioural approach started in 1930.

which may differ from the organisation’s needs and goals. It has enabled organisations to formulate programmes to more efficiently train workers and managers. Changes in technology and methods of work. 3. Insights evolving from that understanding have been used to design work situations that encourage increased productivity. they react differently to the same situation. can be brought about more easily by involving the employees in planning and designing the jobs. Some of the important elements of the behavourial science approach are highlighted below. Informal leadership. But he will readily do so if the group decides to change its behaviour. People working in an organisation have their needs and goals. Individuals differ in terms of their attitudes. By nature most people enjoy work and are motivated by self-control and selfdevelopment. MODERN APPROACH: (QUANTITATIVE OR SCIENCE OR MATHEMATICAL APPROACH) 43 . Individual behaviour is closely linked with the behaviour of the group to which he belongs. 5. rather than the formal authority of supervisor. With work standards laid down by the group. The manager’s attitude towards human behaviour should be positive. A person may be inclined to resist pressures to change his behaviour as an individual. people must fill these roles. which are often resisted by employees. Management should achieve fusion between organisational goals and human needs. After all. perception and value systems. Therefore. Thus. the behavioural sciences have provided managers with a ore systematic understanding of one of the most critical factors in the process of management—the human element. 2. The behavioural scientists have shown how human beings bring to their task aspects of behaviour. it is individuals and groups with which a manager is concerned and while organisational roles are designed to accomplish group purposes. which the effective manager should profitably understand. there will be positive effect on their attitude towards work. 4.highlighted by the behavourial scientists. individuals belonging to that group will resist change more strongly. and it has effects in numerous other areas of practical significance. As a leader (manger) may be more effective and acceptable to the subordinates if he adopts the democratic style of leadership. If the subordinates are encouraged to participate in establishing the goals. It is for the managers to identify and provide necessary conditions for the human potential to be used in the service of the organisation. 1. is more important for setting and enforcing group standards of performance.

game theory. operations. Rational decision-making: an organisation is considered a decision-making unit and the main job of a manager is to make decisions and solve problems. Computer applications: the use of computers has been the driving force in the development of the management science approach the computer can handle in minutes extremely complex problems with an immense volume of data and also calculate numerous variations in the solution. 8. research. queing. The management science approach was evolved after the Second World War. Mathematical models: a model is a simplified representation of a real life situation. Evolution criteria: as the main focus of the management science approach is on scientific decision-making models are evaluated or effectiveness against the set criteria. like cost reduction return on investment. Its distinguishing features are given below. More commonly used OR techniques are linear programming. Mathematical tools. The quantitative school of management is also called operations research (OR) management science. 4. Together. Mathematical and statistical tools are now applied in the field of management.The quantitative or mathematical approach to management developed in the 1950’s. 5. them. 1. Mathematical symbols can be used to describe managerial problems. It reduces a managerial decision to a mathematical form so that decision-making process can be simulated and evaluated before the actual decision is make with the help of a mathematical model. 2. with these quantitative decisions making tools are called ‘operations research’. Mathematical modes can be developed by quantifying various variables of the problems. particularly in decision-making or complex problems. 44 . It involves the application of sophisticated quantitative/mathematical techniques for solving managerial problem. Management is concerned with problem solving and must use mathematical tools to solve 6. The management science approach differs from the classical and behavioral approaches in several ways. 3. 7. The quality of managerial decisions determines organisational efficiency. simulation and model buildings are used to find out solution to managerial problems. a manager can test different values of each variable until an acceptable solution is found. Therefore management information system and other technique should be used for making rational decisions. simulation and probability. schedules and deadlines etc. It utilizes mathematical symbols and relationships. It offered systematic analysis and solutions to many complex problems faced by management in the real world.

5. Output. F. The organisation provides a boundary. 5.L Trist. 2. AK Ria. As a system an organisation draws inputs (energy. It attempts to identify the nature of relationships of various parts of the system. 3. This systems approach looks upon the management as a ‘System’ of as an organized whole make up of sub-systems integrated into a unity or orderly totality. materials. Kast. Information. which separates it from other systems. An organsiation is a system consisting of many interrelated and interdependent parts or sub-systems. The sub-parts should be studied in their enter-relationships rather than in isolation from each other. It determines which parts are internal and which parts are external. These elements are arranged orderly according to some scheme such that the is more than the sum of the parts. etc. Features: An organisation consists of many sub-systems. An organisation is viewed by the modern authors as an op0en system. Feedback and Environment.). It is vulnerable is the changes in environment. All the sub-systems are mutually related to each other. 4. Information is an important part of the system because an organisation must act and interact with its environment. 45 1. It emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. 6. directing and controlling. Process. and R. 4. The attention should be given so overall effectiveness of the system rather than effectiveness of any sub-system if isolation.SYSTEMS (MODERN) APPROACH: Systems approach to management developed after 1950. 7. . It took where management process school left off in attempting to unify management theory. 2.E. Systems approach to management provides a conceptual basis as well as guidelines for establishing a more efficient system for planning. The organisation is responsive to environmental effect. 3. It is based on system analysis. organisation. It transforms these inputs and returns the output back into the environment in the form of goods and services. A system is a set of inter-connected elements or component parts to achieve certain goals. An organisation as a system has five basic parts: Input. From its environment. 1. Many pioneers during as E.A Johnsm have made significant contributions to this approach. It forces the manager to look upon his business as an open adaptive system.

quantitative. There is no one best approach for all situations. The contingency approach does incorporate the environment and attempts to bridge this existing theory-practice gap. 2. and systems approaches to management did not integrate the environment. 46 . the quantitative experts generally feel that linear programming can be used under all conditions. This approach is 1. CONTINGENCY (MODERN) APPROACH: The contingency approach to management emerged from the real life experience of managers who found that no single approach worked consistently in every situation. and the practitioners accuse the theorists of being unrealistic. Management is expected to regulate and adjust the system to secure better performance. The basic idea of this approach is that number management technique or theory is appropriate in all situations. The often assumed that their concepts and techniques have universal applicability. Management is multidisciplinary as it draws and integrates knowledge from various disciplines. managerial action is contingent upon external environment. Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. and the system advocates tend to emphasize the need for computerized information flows in all situations. 9. Contingency approach advocates that managerial actions and organisational design must be appropriate to the given situation and a particular action is valid only under certain conditions. The theorists accuse practitioners of not applying the technique properly. All living systems are open system. The main determinants of a contingency are related to the external and internal environment of an organisation. What a manager does depends upon a given situation and there is an active inter-relationship between the variables in a situation and the managerial action. 11. Open system: continually interacts with its environment.8. Organisation is an open system and it interacts with its environment. Systems are of two types: Closed system: if closed system has no interaction with the outside world. It is also a dynamic system ass the equilibrium in it is always changing. There is no one best approach to management and it all depends on the situation. The process. 10. behavioural. For example the process theorists often assumes that strategic planning applies to all situations. Every system is a part of a super system. In other words. the behavioural theorist usually advocates participative goal setting for all superior-subordinate pairs. On the other hand practicing managers find out that a particular concept or technique from the various approached just does not work effectively in various situations.

7. contingency approach is concerned mainly with the structural adaptation of organisation to the task environment. It takes into account the full range of human needs and motives. 1. Managers should understand that there is no best way of managing. It dispels the universal validity of principles. One needs to adapt himself to the circumstances. Features of contingency approach: Management is externally situational: the conditions of the situation will determine which techniques and control system should be designed to fit the particular situation. But both these viewpoints are not mutually exclusive. But they have pointed out that the systems approach does not adequately spell out the precise relationship between organisation and its environment. It is a practically suited. with the purpose of developing a practical answer to the question at hand. 6. The manager should use systems and other approaches under the framework of contingency approach. 4. management concepts and techniques and the contingent relationship between them. They should be treated as complementary to each other.both analytical and situational. On the other hand. 8. There is no best way of doing anything. Internal environment: technological-constraints. task constraints. The systems approach takes a broader view of organisational variables and employs a comprehensive model of human beings. They have tried to modify and operationalise the system framework. External environment: economic. 3. The contingency theorists accept open adaptive nature of the organisation and the interdependency between various sub-systems of the organisation. It is too abstract and difficult to apply in practice. There are three major elements of the overall conceptual framework for contingency management. Superiority of contingency approach: Clear-cut emergence of contingency approach was noticed after the popularization of systems approach. It is a kind of “if” “then” approach. 5. Management policies and procedures should respond to environment. Management is entirely situational. social. Systems approach Contingency approach 47 . technology and political factors. people constraints. COMPARISON OF SYSTEMS APPROACH AND CONTIGENCY APPROACH: Sr. the environment. 2. no.

cultural setting are not considered. Main focus on internal environment Main focus on the external of the system. At the same time. 3. It also draws from other fields of knowledge and adopts within it those parts of these fields. organisational design and managerial style. pragmatic and organisations at an abstract. Suggests deterministic solutions to Suggests probable solutions to management problems. which are especially useful for managers. This approach recognizes that there is a central core of knowledge about managing which exists in managements such as line and staff. Input-output process. synergy. decision-making. open system. Many other pertinent elements of knowledge are derived from other fields such as application of systems theory. 7. 4. level. committal on the universality of no one best way of managing. they have attempted to draw together the pertinent knowledge of management by relating it to the managerial job. 2. span of management. motivation and leadership. 5.. environment of the system. Appears to be neutral and non. Operational management has a central core of knowledge not found elsewhere. patterns of departmentation. Suggests a comparative analysis of system boundary. must. analyzing and solving problems. 6.1. i. Provides Provides a global theoretical model operational tools and techniques for for understanding organisation. the approach recognizes that the actual problems 48 . action focused approach. and various managerial control techniques.a unique entity. management problems. A way of thinking about A down-to-earth. and mathematical analysis and practices. Fit entropy and equi-potentiality are its between approach and situation is a main features. organisation to establish patterns of homeostasis. what managers do. The operational approach regards management as a universally applicable body of knowledge that can be brought to bears at all levels of managing and in all types of enterprises.Rejects the universality of principles. Size Each organisation is to be studied as of the organisation. and its socio.e. similarities and differences. dynamic equilibrium. Treats all organisations alike. Lays emphasis on the Identifies the nature of interdencies interdependencies and interactions and the impact of environment on systems and sub-systems. managerial appraisal. principles of management. communication. group behaviour and cooperative systems. OEPRATIONAL APPROACH: Koontz and O’Donnell suggest the operational approach to management and in doing so.

and it also recognizes that application of science by a perceptive practioner must take this into account in designing practical problem-solutions.managers face and the environment in which they operate may vary between enterprises and levels.Terry. 49 .R. It may also be called eclectic process school of management. featuring the basic framework of the process approach modified by certain theories from other appropriate schools of management thought. Eclectic means consisting of “what is selected” and this term has been interpreted to indicate taking the best from what is available in the management thought and working into it a single molded around the process framework as the central core. The operational approach is quite similar to the modified management process approach advocated by G.

It may even attempt deliberately to create change. O’Donnell and weihrich. It is deliberate attempt to influence. extent. it can be concluded that “planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results. in a specified period of time. how it is to be done and when it is to be done. remembering alwas that change (like decision) in any one sector will in the same way affect other sectors”. imagination. Planning is a higher order mental process requiring the use of intellectual faculties. OR In other words we can say that Planning is a process of thinking before doing. to bring about specified results. It involves determinations of goals and the activities required to be performed to achieve the goals. “planning is an intellectually demanding process. It consists: 50 . knowledge and considered estimates. Accounting to Koontz. it leads to determination of objectives of the group activity and the steps necessary to achieve them. at specified cost. to where we want to go. and controls the nature. Thus. “To plan is to produce a scheme for future action. it requires the conscious determination of courses of action and the basing of decisions on purpose. It makes it possible for things to occur which would not otherwise happen. It is the process of determining a course of action. so as to achieve the desired results. It is a process of thinking before doing. who is to do it. which involves anticipation of future course of events and deciding the best course of action. and foresight and sound judgment. Planning is a systematic attempt to decide a particular course of action for the future. exploit. speed and effects of change. bring about.PLANNING AND DECISION MAKING: Planning: Planning is the process of deciding in advance what is to be done. It helps to bridge the gap from where we are. Planning is a process. direction. Planning is a deliberate and conscious effort done to formulate the design and orderly sequence actions through which it is expected to reach the objectives.

5. Efficiency of operations: planning is made with the objective of raising efficiency of operations but it is not necessary that efficiency will raised. 1. what is to do in future. if may or may not. Planning is a primary function: planning is the basis or foundation of the management process. i. planning starts before performing the job and them goes an with the activities to be performed to do that job and them just after the competition of the job planning regarding starting the new job. it is said that planning is thinking before doing. Therefore. Planning is based on estimated future trends of social. however nature of planning differs from one department to another. in the absence of choice there will be no planning because then there is a single way of doing something i. It provides a base for other managerial functions like organizing. 3. Features/Nature/characteristics of planning: Goal oriented: the main purpose of plan is always to determine the goal to be achieved and the activities to be performed to achieve these goals. Continuous process: planning is an ongoing process. Moreover changes take place in business environment and regular plans are made to face such changes. 9. whether it is of large scale or small scale and in all the department of organisation like purchase. Primacy (basic function) of planning: it means planning is the basic function of all other managerial functions. finance department etc. Pervasiveness: planning is required in all sectors. marketing. So flexibility will give a chance to make changes as per future requirements. Flexible: there must be flexibility in planning. 4. to be adopted. 5. 6. in other words. directing and controlling. All other functions of management are designed its attain the goals set under planning. Involving choice (alternative): planning can be when there are two or more alternatives and the planner can make a choice for the best. So the management should make continuous efforts to minimize the cost of wastage and improving the efficiency by use of latest change in technology. economic and technological changes because it has to tackle the future requirements. which is uncertain. What is to be done? How it is to be done? Where it is to be done? When it is to be done? By whom it is to be done? So planning is a process of shorting out the path for attaining the determined objective of the business. Overall planning is deciding that in present. industry.e. Forward looking: planning is never done for past but is done for the future to achieve certain objective. 3. 51 . 4. because plans are always based on future. profession etc. 2. business.1. 8. So planning relates to creative thinking for the solution of various problems. staffing. 7. production. 2.e. We can say that structure of all other functions depends on planning.

which is more helpful in achieving the objective.g. planning logically precedes the execution of all other managerial functions.g. leading. when put into action. So planning is the base of controlling process. etc. 52 3. Planning involves selection among the alternatives: it is a highly selective process in which all the alternatives need to be listed and best alternatives are selected or decided. brings about the achievement of the objectives with the minimum of unsought consequences and with positive gains greater than the costs. innovation or creativity.” The effectiveness of planning is measured in terms of what it contributes to the objectives: a plan is efficient if it. staffing. coordinated structure of operations focused on desired ends. 14. . “plans forecast which actions will tend towards the ultimate objective…Managerial planning seeks to achieve a consistent. business has to take various decisions by considering the available resources. Off setting the uncertainty and change: planning is necessary to look ahead towards future and to take decisions regard facing the expected changes/requirement of the future. 13. Planning is the fundamental premise of all management functions: as managerial operations in organizing. 15. Plans facilitate decision-making: to achieve the objective predetermined under planning. although the character and breadth of planning will vary with their authority and with the nature of policies and plans outlined by their superiors. 4. 12. 2. Planning is closely linked to objectives: each plan specifies the objectives to be attained in the future and the steps necessary to reach them.10. Goetz said. Importance of planning: 1. Makes the objectives clear and specific: planning clearly specifies the objectives and the policies or activities to be performed to achieve these objective in other words what is to be done and how it is to be done are clarified in planning. As Billy E. E. 11. and controlling are designed to support the accomplishment of enterprise objectives. If job may be completed by using various alternatives (e. Planning is a highly skilful intellectual activity: it involves active use of higher mental process like thinking. manually or by machines) and the best alternative is decided by the management. Planning is a pervasive function of management: planning is a function performed by all managers. before coming of summer session producers started production for the products to be used in summer. Provides basis of control: under controlling actual performance is compared with the planed performance (target/objective).

Such co-ordination of sub-ordinates and their departments will certainly help the organisation in achieving its objective. 10. etc.5. planning also serves as a good training device for future managers. which are essential for the performance of control function. Encourages innovation and creativity: planning helps innovative and creative thinking among the managers because many new ideas come to the mind of a manager when he is planning. 7. there will be better coordination in the organisation. Improves motivation: the effective planning system ensures participation of all managers. 6. Facilitates integration: under planning proper directions as per plane are provided to the subordinates. Resultantly they all make effort towards the achievement of preplanned objective. changes in work methods. It improves the motivation of workers also because they know clearly what is expected of them. Facilitates control: planning facilitates the managers in performing their function of control. However. All the activities are directed towards the common goals. Encourages innovation and creativity: planning is the process of thinking in advance and so plans are made to achieve a target at future date by using latest methods and technology to perform the industrial/business activities and so plans lead to innovation. changes in quality. 8. Planning and control are inseparable in the sense that unplanned action cannot be controlled because control involves keeping activities on the predetermined course by rectifying deviations from plans. There is an integrated effort throughout the enterprise. he planning may fail if the following limitations. 53 . 9. Thus. Resultantly it reduces confusion and wastage of resources in the form of thinking at the time of doing. 11. Moreover. LIMITATIONS OF PLANNING: Planning is an important function of management. Improves competitive strength: effective planning gives a competitive edge to the enterprise over other enterprises that do not have planning or have ineffective planning. which improves their motivation. anticipation of tastes and fashion of people and technological changes. Achieves better coordination: planning secures unity of direction towards the organisational objectives. So efficiency of the worker will risen which will further result economy in production. Leads to economy and efficiency: planning clarifies the work and its method of doing. It lays down objectives and standards of performance. 12. This is because planning may involve expansion of capacity. It creates a forward-looking attitude among the managers. Planning facilitates control by furnishing standards of control. It will also help in avoiding duplication of efforts.

Human elements: planning are the results of thinking of human being. Planning is a time-consuming and costly process: this may delay action if certain cases.1. the result may not be good. Psychological barrier: people in organisation have to work strictly according to plan where as they may be able to give better performance in a way decided by themselves. Moreover delay in decision will further delay the action. 54 . but some times there is little benefit from in plan and than it becomes a burden for the institution. Costs: formulation of plans involves too much cost which are in the form of time spend. money spent etc. Advance effect on decisions: some plans are rigid and a manager faces difficulty while making any changes where as there may be continuous change in environment where as the quick decision is required as per the changed environment. Information on the basis of which plan is formulated may not be free form bias or there may be some other errors which will further Reebok (problem) the better plan. 8. 3. 5. 7. Limited flexibility: there may be some changes in planning only up to some extent because measure changes in plan will further attract the changes in supporting plans also and as such the whole system is disturbed moreover changes in plans time and again will prove a wastage of time and money spent on previous plan (pre-changed plan). If the management is not willing to spend on planning. 10. the plans so produced may prove to be unrealistic. Improper plan: planning/target set at the lower side than the capability of or resources and target on over side than the capacity of the resources both are termed as improper planning because lower target will be easily achieved and we will feel false sense of security. Secondly they do not think beside the plan and performs their activities like a machine without using their psychology. Similarly. Limited practical value: planning is too much theoretical and have a less practical use planning is more suitable when environment is suitable but due to unsuitability of environment business has to take various quick steps/decision time and again and as such the importance of other resources which are used according to changing environment. is more than that of planning. Delay in actions: planning requires some time for thinking. planning involves costs of gathering and analyzing information and evaluation of various alternatives. 2. Lack of accuracy: planning relates to future and future is always uncertain and so prediction about future is so much difficult. 4. 6. But it is also true that. Moreover planning are based on data/information relating to past and as such planning based on any wrong information may not be useful to the organisation. if sufficient time is not given to the planning process. 9. If the plan is not useful than the amount or time spent on its formulation is a waste. analyzing the situation and designing the final plan and so in case emergency decision is required it will take time and business will lose its opportunity. On the other hand over planned target beyond resources cannot be achieved even all effort both are the situation of improper plan.

Resistance to change is another important factor. Planning is a forward-looking process: the planner must possess the required initiative. Overall goals are the collective ends for which the whole organisation makes efforts to achieve. But it should not be forgotten that dynamic managers always look ahead. planners themselves do like change and on other occasion. 15. So. In other words it is desired and end result of an activity. He should be an active planner and should take adequate follow up measures to see that plans are understood and implemented properly. KINDS/TYPES OF PLANS: The term plan refers to a course of action determined in advance by the management. The effectiveness of planning is sometimes limited: because of external factors. This attitude makes the planning process ineffective. 2.11. Goals (Target): goal is a desired state of affairs. 55 . Long-term well being of the enterprise cannot be achieved unless proper planning is done for future. Goals may be of short term or long term in nature.g. multiple objective increase in profits with other better facilities to the customers and employees.g. single objective— maximization of profits. E. External stringencies are very difficult to predict. E. Internal inflexibility in the organisation may compel the planners to make rigid plans: this may deter the managers from taking initiative and doing innovative thinking. An organisation may have single objective or multiple objectives. Psychological factors also limit the scope of planning: some people consider present as more important than future because present is less uncertain. 1. business organisation will have an objective of earning more profits where as co-operative society has an objective of well fare of its members more-over objectives may change from time to time. It has always a time frame in other words it is a package of decisions to make efforts to achieve some results in a specified term of period. There must be a time frame for the achievement of predetermines objectives. 14. E. which are beyond the control of the planners. They should not always be required to follow the procedures rigidly.g. which an organisation wants to achieve. Such persons are psychologically opposed to planning. Sudden breakout of war. They make the execution of plans very difficult. as it will create resistance on the part of the workers. the planners must have sufficient discretion and flexibility in the enterprise. which puts limits on planning: It is commonly experienced phenomenon in many organisations. Sometimes. Objectives: objective is the ends towards which activity is aimed. Objectives may differ from one organisation to another. 12. goal of an automobile company may be to provide low cost and higher quality of automobiles to the public. natural havocs and may other factors are beyond the control of management. they do not think it desirable to bring change. 13. government controls.

Policy increase in taking decisions but within limits and so the decision depends on the authority given in the policy. rules etc.e. policy of setting competitive prices. Rules are a set of instructions to be followed in a particular way.g. In other words these guidelines (policies) helps the management for taking decision in proper direction to achieve the objective. These are predetermining decisions these helps the managers in achieving the objectives. procedures. which are acceptable by the people. which is less. management want to expand the size of business by 70% so to implement this programme management must lay down certain policies. policy of quick after sale service with in three months from the date of sale. Rules are always in the form of order’s or directions and not in the form of request. which guide the thinking in decision making. E. Because planning is made for the achievement of any objective. Its specifies any best and efficient way of performing the task: . 6. Procedures: the procedure is defined as pre-determined se2quence of steps to initiate action and complete the task. export and import procedure. so that with the co-ordination of these we may become successful to implement this programme. rank of merit and them decision regarding admission. E. Policies: policies are general statements. screening of facts/data’s. These are concerned with administrative action and serve a principle for conduct. But fixing of schedule of vacations is the procedure. E.3. Rules: rules are specific directions to perform an action or not to perform an action these are the directives to the people in organisation. admission procedure in a school i. Programme: programme refers to the outline of plans of work to be carried out in proper sequence.g. to behave or not to behave in a particular way. There is no discretion in there application.e. finding them to do or not to do. In business organisations rules are framed regarding recruitment. Moreover there are several methods like method of calculating depreciation. methods of valuation of stockcost or market price. By way of training. application in schedule time. Which method will be the basis of nature of business and once selected the method becomes a prescribed manner of performing a job. Procedure are the clear cut steps to be taken to perform a job in an optimum manner so that the objectives can be achieved policies and procedures are also interrelated like there will be a policy of summer vacations in the schools. 7. policy of hiring a trained engineer or to promote from within the staff. managerial decisions ae taken within the boundaries of rules. Overall these are the desired results in the form of quantity to be achieved by performing any activity there should be a specific time frame to achieve these objectives these should be challenging but achievable. promotion. methods. When ever the decisions are within rules the person who has taken decision is safe and secured as he is working as per rules.g. As per as possible objectives are expressed in miserable quantity and so these provide a path for planning. is consider in final accounts. So procedure helps the management to rich its objective. Do that the objectives can be achieved. A primary programme may call for any supporting 56 . Methods: a method is a prescribed process in which a particular task is performed. 4. These are generally in writing and are impersonal in nature. To ensure that orders are handled in a specific way there must be a procedure. 5.g.

*Difference between plans and policies* Sr.e.g. this over all process combination is known as programme. *Difference between policy and objectives* Sr. policies. E. material time. 2. employees and other resources.8. Policies Policy is a narrow concept than plans. 1. Policies are determined after plans it is only a part of plan. so budget is a finance and/or quantitative statement prepare and approved prior to a specified period. 1. steps to be taken to perform these task. Implementation of plan requires policy guidelines. No. Basis of difference Policy Type of plans Objective 2. Time limit Policies are standing Objectives are the ends plans/guidelines for the towards which activities achievement objective. the programme i. rules. programme in above. These are the guidelines helping in implementation of plans. Basis of difference Plans Scope Help Implementation The term plan is a wider concept that includes policy and several other actions. 3. Budget always pertains to future it is prepared in advance and expressed in qualitative financial terms. of the organisation are directed. Policies go on until these Objectives are the ends to are changed and so no achieved by performing 57 . programme of making arrangement of finance required for expansion. Budget is a single use plan and can be expressed in respect of finance. tasks. programme of arrangement of trained workers required after expansion and so for the successful implementation behave to make a combination of goals. Budget: budget is a statement of exceptive result expressed in numerical term. procedures. etc. No. Plans a re helped by the policies to become successful.

guidelines for taking steps to do a job in proper sequence. Policies are the guidelines to achieve the objective. Policies are generally Procedures are generally formulated at top lay down by relatively managerial level. specific stepwise sequence. Policies are relatively Procedures are relatively flexible. It policy there is some Procedure gives no scope for managers discretion in its discretion. lower managerial level. activities in a specified period. 6. Basis of existence Purpose Place Formulation An organisation is function without policies. Objectives refer to the target to be achieved. implementation. 3. *Difference between policies and rules* 58 .time limit. 4. Policies have lower place than objectives. outcomes. 6. It has narrow scope. Basis of difference Policy Guidelines Procedure 2. The owner or top-level management of the business determines objectives. 3. There will be no organisation without objectives. Policies are formulated at top level. Policy is expressed in the Procedure is expressed in form of general statement. middle level and lower level management. Policies serve as bridge Procedure is a bridge between organisational between activity and its purpose and performance. *Difference between policy and procedure* Sr. It has wider scope. 1. Objectives have higher place than policies. 7. 5. 4. No. rigid. 5. Scope for change Formulation Bridge Expression Discretion Scope Policies are the guidelines Procedures are the to decision making.

There is no discretion. for Deviation from rules will attract penalty. 6. Policies are guidelines to decision making. *Difference between rules and methods* Sr. 1. Basis of difference Rules Purpose Rules are meant for strict compliance and have a little concern with efficiency. Rules are associated directly with control. 3. 1. 2. These are rigid and should have no deviation. Methods relates to physical and other task. Methods are backed by knowledge. Formulation Penalty deviation Backed by Relationship Associated *Levels of planning* In management theory. Methods Methods are meant for efficient performance. 4. 2. Method’s deviations does not attract penalty. These are guidelines to do and not to do. Rules are formulated on the basis of legal requirement. there 59 . Policies are flexible in nature.Sr. it is usual to consider that there are three basic levels of planning. Rules relates to behaviour of individuals and groups. 4. though in practice there may be more than three levels of management and to an extent. Methods are not directly associated with control. Rules are generally backed by managerial. Basis of difference Policy Nature Guidelines Flexibility Discretion It is a general statement in nature. There is a scope of discretion of management for implementation. Methods are formulated on the basis of research and analysis. 5. 3. No. No. Rules These are the most specific statement.

E. It encompasses the long-range objectives and policies or organisation and is concerned with corporate results rather than sectional objectives. introducing new product of better technology. *Steps/Stages of planning* Planning is a process consisting many steps. Top level planning: also known as overall or strategic planning.g. But following are the common steps: 1. in fact. 3. with long-range planning. Top level planning is entirely long-range and inextricably linked with long-term objectives. but its nature is such that the time spans are usually shorter than those of strategic planning. Second level planning: also known as tactical planning. While making plan and setting objectives management should make analysis of internal resources available with the business and arrangement of external resources. target of increasing profitability may be achieved by increasing sale.will be some overlapping of planning operations. It deals with development of resources to the best advantage. It is confined to putting into effect the tactical or departmental plans. The theree levels of planning are discussed below: 1. It is concerned with ‘how’ of planning. It is concerned mainly.e. List of alternatives to achieve the objective: there may be so many ways available with the business to achieve the objective. It is usually for a short-term and may be revised quite often to be in tune with the tactical planning. oriented to functions and departments rather than to the organisation as a whole. i.. it is done by middle level managers or departmental heads. Setting organisational objectives: planning is total based on the objectives. top level planning is done by the top management. Considering the merits and demerits of each alternative is also termed as development of premises of each alternative. board of directors or governing body. This is because its attentions are usually devoted to the step-by-step attainment of the organisation’s main objective. which may differ from one plan to another. not exclusively. It might be called the ‘what’ of planning. In other words first of all objectives will be fixed and then we will make plan regarding how to gets success in achievement of such predetermine objective. it is the concern of departmental managers and supervisors. decreasing cost. external environments and corrective measures to face with the environment. 2. Third level planning: also known as operational or activity planning. which of these alternatives is beneficial for business be adopted. 2. So business should prepare a list of such ways by considering the merits and demerits of each for which ever is better should be adopted. 60 . It is. which an organisation wants to achieve by way of planning. rise in process etc.

8. Put the plans into action: after that plan formulated is ready to be put into action and so function should be started according to the plan all supporting plans should effort to help the main plan in reaching the objective and so in this all process is done in any effective manner we will get desired results of the plan. if the business wants to produce according to objective there may be many supporting plans like planning of purchase of rawmateiral. There may be some changes required before reaching the objective. defining tasks. In terms of managerial decision-making.g. 4. 5. which is thought to fulfill the objectives of the decision problem more satisfactorily than others. wherein a manager selects a particular course of action from the available alternatives in a given situation. planning of recruitment and training of the man power etc. These should really serve as guidelines to reach the objective. It is a course of action. These should be a periodic review and corrective measures to be taken. *DICISION MAKING* Decision-making is a process of selection from a set of alternative courses of action. These should be purposeful and functional. These should be economic (maximum use at minimum cost). 4. 7. a company is to sell 1200 refrigerators per year than directors should see that at least 100 units per month on average basis should be sold to achieve the target. Managerial decision making process involves establishing of goals. .3. Choose the best alternative: after considering the list of alternatives and merits of each management has to decide which of these alternatives will be the best in consideration with the human and nonhuman resources available with the business. Formulation of supporting plans: supporting plans are those plans. which is consciously chosen for achieving a desired result. These should be in written form to avoid confusion. E. 61 1.g. 6. 5. A decision is a process that takes place prior to the actual performance of a course of action that has been chosen. E. *Features of good plan/policy/procedure* 1. it is an act of choice. 3. searching for alternatives and developing plans in order to find the best answer fo the decision problem. The essential elements in a decision making process include the following: The decision maker. which provides support to the main plan. These should be simple and clear. 6. These should be flexible. These should be understandable. In the main time management should see whether we are going towards achievement of objective or not. Follow up: once the plan is put into action it monitoring/supervision is equally important. 2.

2. Keeping this in view. *Process/Steps in rational decision making* Effective decision-making process requires a rational choice of a course of action. The alternative courses of action. logical and thorough approach in decision-making process. such a decision will be called an objective or rational decision. It involves all actions like defining the problem and probing and analyzing the various alternatives. It should be seen what is causing the trouble and what will be its possible solutions. He should collect all possible information about the problem and then decide whether it will be sufficient 62 . a manager has to identify critical or strategic factor of the problem. The objectives of the decision maker. 5. and The final choice of the alternative. (ii) feasibility of means to the given end. The outcomes expected from various alternatives. 6. Analysis of problem: after defining a problem. 2. It is the end process preceded by deliberation and reasoning. Before defining a problem. logical. 2. 6. if a decision is taken after thorough analysis and reasoning and weighing the consequences of various alternatives. 7. there may just be a decision not to decide. It always has a purpose. 3. It is a human process involving to a great extent the application of intellectual abilities. 5. 4. There is a need to define the term rational here. (iii) consistency. It involves a time dimension and a time lag. So. thorough approach in decision making. A manager may take one decision in a particular set of circumstances and another in a different set of circumstances. Diagnosing and defining the problem: the first step in decision-making is to find out the correct problem. Steps of decision-making process are given below: 1. 1. Thus. 4. 7. Rationality is the ability to follow systematically. It is not easy to define the problem. Therefore rationality is the ability to follow a systematic. The environment in which the decision is to be made. 3. the first important factor is the determination of the problem. which take place before a final choice is made. It is always related to the environment. Gross suggested three dimensions to determine rationality: (i) the extent to which a given action satisfies human interests. The decision problem. Once the problem is properly defined then it will be easily solved. a manager should analyse it. Characteristics of decision-making: It is a process of choosing a course of action from among the alternative courses of action.

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4.

to take decision or not. Sometimes it may be costly to get additional information or further information may not be possible whatever information is available should be used to analyse the problem. Analyzing the problem involves classifying the problem and gathering information. Classification is necessary in order to know who should take the decision and who should be consulted in taking it. Without proper classification, the effectiveness of the decision may be jeopardized. The problem should be classified keeping in view the following factors: (i) the nature of the decision, i.e., whether it is strategic or it is routine. (ii) the impact of the decision on other functions, (iii) the futurity of the decision, (iv) the periodicity of the decision and (v) the limiting or strategic factor relevant to the decision. Collection of data: in order to classify any problem, we require lot of information. So long as the required information is not available, any classification would be misleading. This will also have an adverse impact on the quality of the decision. Trying to analyse without facts is like guessing directions at a crossing without reading the highway signboards. Thus, collection of right type of information is very important in decision-making. It would not be an exaggeration to say that a decision is as good as the information on which it is based. Collection of facts and figures also requires certain decisions on the part of the manager. He must decide what type of information he requires and how he can obtain this. It is also important to note that when one gathers the facts to analyse a problem, he wants facts that relate to alternative courses of action. So one must know what the several alternatives are and then should collect information that will help in comparing the alternatives. Needless to say, collection of information is not sufficient; the manager must also know how to use it. It is not always possible to get all the information that is needed for defining and classifying the problem. In such circumstances, a manager has to judge how much risk the decision involves as well as the degree of precision and rigidity that the proposed course of action can afford. It should also be noted that fact finding for the purpose of decision-making should be solutionoriented. The manager must lay down the various alternatives first and then proceed to collect fact, which will help in comparing alternatives. Developing alternatives: after defining and analyzing the problem, the next step in the decision making process is the development of alternative courses of action. Without resorting to the process of developing alternatives, a manager is likely to be guided by his limited imagination. It is rare for alternatives to be lacking for any course of action. But sometimes, a manager assumes that there is only one way of doing a thing. In such a case, what the manager has probably not done is to force himself decision, which is the best possible. From this can be derived a key planning principle which may be termed as the principle of alternatives. Alternatives exist for every decision problem. Effective planning involves a search for the alternatives towards the desired goal. Once the manager starts developing alternatives, various assumptions come to his mind, which he can bring to the conscious level. Nevertheless, development of alternatives cannot provide a person with the imagination, which he lacks. But most of us have definitely more imagination than we generally use. It should also be noted that

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development of alternatives is no guarantee of finding the best possible decision, but it certainly helps in weighing one alternative against others and, thus, minimizing uncertainties. Review of key factors: while developing alternatives, the principle of limiting factor has to be taken care of. A limiting factor is onw which stands in the way of accomplishing the desired goal. It is a key factor in decision-making. It such factors are properly identified, manager can confine his search for alternative to those, which will overcome the limiting factors. In choosing from among alternatives, the more an individual can recognize those factors which are limiting or critical to the attainment of the desired goal, the more clearly and accurately he or she can select the most favourable alternatives. It is not always necessary that the alternatives solutions should lead to taking some action. To decide to take no action is also a decision as much as to take a specific action. It is imperative in all organisational problems that the alternative of taking no action is being considered. For instance, if there is an unnecessary post in the department, the alternative not to fill it will be the best one. The ability to develop alternatives is often as important as making a right decision among the alternatives. The development of alternatives, if thorough, will often unearth so many choices that the manager cannot possibly consider them all. He will have to take the help of certain mathematical techniques and electronic computers to make a choice among the alternatives. Selecting the best alternative: in order to make the final choice of the best alternative, one will have to evaluate all the possible alternatives. There are various ways to evaluate alternatives. The most common method is through intuition, i.e., choosing a solution that seems to be good at that time. There is an inherent danger in this process because a manager’s intuition may be wrong on several occasions. The second way to choose the best alternative is to weigh the consequences of one against those of the others. Peter Drucker has laid down four criteria in order to weigh the consequences of various alternatives. They are: (i) Risk: a manager should weigh the risks of each course of action against the expected gains. As a matter of fact, risks are involved in all the solution. What matters is the intensity of different types of risks in various solutions. (ii) Economy of effort: the best manager is one who can mobilize the resources for the achievement of results with the minimum of efforts. The decision to be chosen should ensure the maximum possible economy of efforts, money and time. (iii) Situation or timing: the choice of a course of a action will depend upon the situation prevailing at a particular point of time. If the situation has great urgency, the preferable course of action is one that alarms the organisation that something important is happening. If a long and consistent effort is needed, a ‘slow start gathers momentum’ approach may be preferable. (iv) Limitation of resources: in choosing among the alternatives, primary attention must be given to those factors that are limiting or strategic to the decision involved. The search for limiting factors in decision-making should be a never-ending process. Discovery of the limiting factor lies at the basis of selection from the alternatives and these are experience, experimentation and research and analysis which are discussed as: (a) Experience: in making a choice, a manager is influenced to a great extent by his past experience. Sometimes, he may give undue importance to past experience. He should compare both the situations. However, he can give more reliance to past experience in
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case of routine on his past experience to reach at a rational decision. (b) Experimentation: under this approach, the manager tests the solution under actual or simulated conditions. This approach has proved to be of considerable help in many cases in test marketing of a new product. But it is not always possible to put this technique into practice, because it is very expensive. It is utilized as the last resort after all other techniques of decision making have been tried. It can be utilized on a small scale to test the effectiveness of the decision. For instance, a company may test a new product in a certain territory before expanding its scale nationwide. (c) Research and analysis: it is considered to be the most effective technique of selecting among alternatives, where a major decision is involved. It involves a search for relationships among the more critical variables, constraints and premises that bear upon the goal sought. In a real sense, it is the pencil and paper approach to decision making. It weighs various alternatives by making models. It takes the help of computers and certain mathematical techniques. This makes the choice of the alternative more rational and objective. Putting the decision into practice: the choice of an alternative will not serve any purpose if it not put into practice. The manager is not only concerned with taking a decision, but also with its implementation. He should try to ensure that systematic steps are taken to implement the decision. The main problem whi8ch the manager may face at the implementation stage is the resistance by the subordinates who are affected by the decision. If the manager is unable to overcome this resistance, the energy and efforts consumed in decision-making will go waste. In order to make the decision acceptable. It is necessary for the manager to make the people understand what the decision involves, what is expected of them and what they should expect from the management. The principle of slow and steady progress should be followed to bring a change in the behaviour of the subordinates. In order to make the subordinates committed to the decision, it is essential that they should be allowed to participate in the decision making process. The managers, who discuss problems with their subordinates and give them opportunities to ask questions and make suggestions, find more support for their decisions than the managers who don’t let the subordinates participate. Now the question arises at what level of the decision making process the subordinates should participate. The subordinates should not participate at the stage of defining the problem because the manager himself is not certain as to whom the decision will affect. The area where the subordinates should participate is the development of alternatives. They should be encouraged to suggest alternatives. This may bring to surface certain alternatives, which may not be thought of by the manager. Moreover, they will feel attached to the decision. At the same time, there is also a danger that a group decision may be poorer than the one-man decision. Group participation does not necessarily improve the quality of the decision, but sometimes impairs it. Someone has described group decision like a train in which every passenger has a brake. It has also been pointed out that all employees are unable to participate in decision-making. Nevertheless, it is desirable if a manager consults his subordinates while making decision. Participative management is more successful than the other styles of management. It will help in the effective implementation of the decision.
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one will know what to do. (ii) If the decision is bad one. This information will be very useful in taking the corrective measures and in taking right decisions in the future.8. one will know what not to do. corrective action may still be possible. the next time. 66 . the management should devise an efficient system of feedback information. In order to achieve proper follow up. Follow up: it is better to check the results after putting the decision into practice. (iii) If the decision is bad and one follows up soon enough. if faced with the similar problem again. The reasons for the following up of decision are as follows: (i) if the decision is good one.

It involves existence of a leader and followers. attitudes and beliefs of their followers. A successful leader guides his subordinates to have their individual goals set by themselves in such a way that they do not conflict with the organisational 2.*LEADING MANAGEMENT CONTROL* Meaning of leadership style: It is a process of influencing the behaviour of other people to work willingly towards the achievement of organisational goals. 4. 1. OR Leadership is a process of influence: leadership is a process whose important ingredient is the influence exercised by the leader on goup members. It is a process of securing willingness to do the job as per guidelines of the leader. 67 . *Features/Elements of leadership* 1. Leadership is the function of stimulation: leadership is the function of motivating people to strive willingly to attain organisational objectives. Successful leaders are able to influence the behaviour. 2. guidance and direction. It involves interaction between leader and his followers. 3. It involves advice and guidance to achieve some common goals. So leadership is an exercise to influence the behaviour of the followers towards attainment/achievement of specified goals. It is a process of influencing the behaviour of followers by the leader. A person is said to have an influence over others when they are willing to carry out his wishes and accept his advice. Here the person who guides or directs his followers is known as leader. Leaders are considered successful when they are able to subordinate the individual interests of the employees to the general interests of the organisation.

only participative leadership style may be successful. every person in the organisation feels that his operation.3. Leader acquires powers due to acceptance of his role by his followers. A leader need not necessarily be a manager. it is said that leadership is always particular and not general. Long-term interests of the organisation are best served when managers allow subordinates to influence their behaviour. A good manager recognizes the fact that leadership is a shared function. A good leader shares everything with his followers. particularly when subordinates are knowledgeable and competent. That means leadership styles should be different under different circumstances. It happens when the manager feels the importance of individuals. *Importance of leadership* 1. is vital to the attainment of organisational objectives. At one point of time. the subordinates may accept the autocratic behaviour of the leader while at a different point of time and under a different set of circumstance. Manager is more than a leader because he performs all the five functions of management (planning. That is why. *Relationship between leadership and managership* Leadership and managership are not same thing a manager is a leader as well as manager as he influence the behaviour of his subordinates to work willingly towards achievement of organisational goals in the interest of subordinates as well as organisation. however minor it may be. 5. Helps in guiding and inspiring the employees: leader guides and inspires his subordinates towards higher performance and so helps in achieving the business goals. Leadership gives an experience of helping attain the common objectives: under successful leadership. 4. Creates confidence: leader creates confidence among the employees by understanding and handling the situations as per proper requirement. opinion and experience. which results in a decreased long-term productivity. workers act enthusiastically to achieve these goals. A manager can be more effective if he is a good leader. Force generates counter force. directing. objectives. he shares blame. he shares ideas. Sometimes individuals fail to recognize 68 . When this congruency is achieved. and controlling) where as a leader performs only leadership functions which is just a part of directing. gives them recognition and tells them about the importance of activities performed by them. This approach is not in the long-term interests of the organisation. Where as a manager acquires powers due to delegation by his superiors. he shares credit. Leadership is related to a situation: when we talk of leadership. it is always related to a particular situation. staffing. organizing. 2. at a given point of time and under a specific set of circumstances. Employees must be satisfied with the type of leadership provided: only short-term productivity of employees can be increased by pressure and punishment.

Achieving coordination: a leader integrates the goals of the individuals with the organisational goals and creates a commonality o interests. So leader is a middleman between manager and worker. Improves productivity: the main purpose is to use the available human and non-human resources of the organisation efficiently and efficiency of performance = the product of capability and willingness. Determination of goals: a leader performs the creative function of laying down goals and policies for the followers. Providing guidance: a leader guides the subordinates towards the achievement of organisational objectives. 6. the job satisfaction of employees also depends on the behaviour of their managers. 11. their qualities and capabilities than he provides psychological support to the followers by his conduct and expression. Overall these activities improve job satisfaction among the employee. Organisation of activities: a good leader divides organisational activities among the employees in a systematic manner. 5. He takes initiative in all matters of interest to the group and attempts to fulfill the psychological needs of the subordinates. 10. 7. 12. 69 . Building employees Morale: good leadership is indispensable to high employee morale. He develops good human relations and facilitates interactions between the members of the group. This reduces the chances of conflict between them. He maintains voluntary cooperation and discipline among followers. 8. leaders of the workers are also invited to act as a counselor of the subordinates. The leader shapes the thinking and attitudes of the group. Leaders ensure that managers in organisation should adopt behaviour. 4. He acts as a guide in interpreting the goals and policies. Acts as a counselor: while taking various decisions by the management. Subordinates and the management should make collective efforts and give priority to the achievement of organisational objectives. By raising willingness leader helps in improving the productivity. Facilitating change: dynamic leadership is the cornerstone of organisational change. 14. The relationships between them are clearly laid down. He keeps himself informed about the working of the group and shares information with group for the coordination of its efforts. Moreover leaders support and encourage the subordinates to meet particular situations. Acts as an intermediary: leader communicates the expectations of the management to the subordinates and also leads the subordinates to resolve their problems and from the management. Enhances group efforts: leadership prepares the people at workplace to perform the job with mutual trust co operative and friendly manner. An effective leader is able to overcome resistance to change on the part of workers and thus facilitate change. Improves job satisfaction: effort from monitory incentives and better physical working conditions. Representation of workers: the leader is a representative of his group. He is available for advice whenever a subordinate faces any problem. 13.3. 9. which is acceptable to the subordinates. A satisfied human resource is always better than unsatisfied.

He consults and seeks advice. He solves problems. He depends blames and finds faults. 5. He believes in “We” and “you”.*Leadership vs. He knows all the answers. 70 . Manager Leader He drives and orders. He coaches and advises. 4. He makes the work drudgery. 3. He fixes blames and funds faults. He believes in “I”. He engenders fear. 7. He inspires enthusiasm. He makes the work a game. He depends on his confidence and goodwill. 6. 2. managership* 1.

This gives rise to informal leaders who do not hold any managerial post in the organisation. An informal leader is elected by the management. It is a continuous process of telling. Among other things. etc. on the other hand. The members of a work-group may be influenced by one leader while doing their jobs. the formal leaders become the position-holders only.*Formal and informal leaders* It has been observed above that a manager should also be a good leader. the workers may become more antagonistic to management. Since the feedback requires another message to be communicated by the sender to the receiver. as in case of a formal leader. Therefore. But it should be remembered that the trouble they cause reflects the desires of the group. Any method of communication like words—oral or written. he can pall necessary information to them first. it is better to work with informal leaders. opinions and emotions by two or more persons. They are not able to achieve the voluntary cooperation of the workers in all matters. they may go to another leader as far as their reaction is concerned. informal leaders become more acceptable to the workers as compared to the formal leaders. listening and understanding. and assign them to train other. In such a situation. There are many ways in which a manager can build up good relations with the informal leaders working with him. *Communication* It is the process of transmitting the messages and receiving the response of that message. Effective communication is that communication in which the receiver is understood actually what the sender wants to convey. every manager is not able to provide the kind of leadership desired by his subordinates. ideas. Sometimes. It is also true that a work-group may have different leaders for different purposes. But in actual practice. seek their advice on technical and human relations problems. response there off in total is known as communication. graphs. So communication process become a circular process. But as regards their personal problems. diagrams. 71 . pictures. is one who possesses organisational authority to direct and control the activities of his subordinates. The person who sends the messages is known as sender and the person who receives the message is known as receiver and the response to the message is known as feed back. “George Terry” communication is an exchange of facts. If they are suppressed. In simple words. “Allen Lousis” communication is the sum of all the things which one person does when he wants to create understanding in the mind of another. Management often tries to suppress informal leaders. exchange of ideas/messages. may be adopted to communicate. He can issue orders and instructions to his subordinates by virtue of his formal authority in the organisation. morale may fall even lower and new informal leaders may step to the fore. A formal leader.

suggestions etc. are communicated for an effective planning system and so communication facilitates better planning. Facilitates co-ordination: flow of communication is in all directions results a better coordination in all level of management as well as all depth of organisation. Communication is not completed unless the receiver of the message has understood the message and has given his response. ‘Noise’ is something. Improves better relations among superiors and subordinates: by effective communication misunderstanding between superiors and subordinates can be removed. 4. *Characteristics/features of communication* 1. rules and principles of the organisation and any misunderstanding 72 6. Two way process: it involves both sending the message and receiving the response to that message. *Advantages/Importance of communication* 1. Helps in motivating: communication helps in the process of motivation by sharing of information. consultation and discussion of various problems for prompt redressed/solution. Moreover clear and accurate information can be communicated at proper time resulting better relations between the two. which has disturbed the effective sending and receiving of communication. Helps in decision making: by providing the required information. between superior and subordinate. 3. Information regarding organisational rules: subordinates should be informed by communicating them. Continuous process (circular process): it is a continuous process because transmission of messages is going on a continuous process. 2. quick solution of problems creates satisfaction resulting motivation towards work. 4. Co-operative process: it is a process of co-operation because two or more persons are required for the exchange of message i. Pervasive function: communication is necessary at all levels of management i.e. 2. . top. Flows in all directions: communication may flow upward and downward.and in the same form. problems. 3. middle and lower level and also in all the depths of the organisation. Classifies authorities and responsibilities of various positions: by way of communication authority and responsibility of various posts/positions are conveyed (classified) to the position holder. Facilitates planning: while making plans several ideas. 5. 5. horizontally (gang plank) between persons of similar ranks or diagonally between persons at different levels.e. needed for making various decisions communication helps a lot because the quality of decision depends on the quality of information available with the decision maker. 7. sender(s) and receiver(s).

2. Some people respond better to formal letters or communications. By initiating the message. Better public relations: by way of communication customers.e. *Process/Steps of communication* 1. 3. Thus. thought. Message: the next element in the process of communication is message. Air. Improves efficiency: an effective communication helps in understanding ideas. The channel is the link that connects th sender and the message. warming of hand. etc. idea or inform which he wants too communicate to some other person to achieve some purpose. The mode of transmission is often inseparable from the message. This will necessarily improve the acceptance of organisational rules. The sender has some need. suggestions. shaking of head. etc. source or communicator. 9. regarding there of must also be clarified. Verbal message is in the form of word language. converting to communicable codes which will be understood by the receiver of the message. signs. instructions or guidelines in a close and clear way and removes all confusions. orders.. 10. a message may taken any of the two form i. others to the informally spoken words. shareholders. information. Sender: according to this model. The sender of information organizes his ideas into a series of symbols (words. smile. Resulting better co-operation and good relations among all these groups. suppliers. better efficiency. Encoding or communication symbol: the next element in the process is that of encoding the information to be transmitted. sight and sound are important communication channels. The channels of communication which are officially recognized by the organisation are known as formal channels. problems etc. and society may be provided required information. instructions. For communication to be effective the channel used should be appropriate for the 73 .e. Speech may be heard. The receiver must be considered while selecting a channel. will communicate to the intended receiver or receivers. grunt. written words may be read and gestures may be seen or felt.). he feels. 4. so it facilitates directing function. This is known as encoding of message. frown. which. verbal or non verbal. while non-verbal would be in the form of gestures like wink. The person who initiates the communication process in known as sender. Resulting better understanding. The message may be in any form that could be experienced and understood by one or more of the senses of the receiver. Facilitates directing function: communication makes a link between managers and workforce of the organisation resulting a continuous flow of directions.8. Communication channel: the next element in the process of communication is the channel or the mode of transmission (such as air for spoken words and paper for letters). govt. The message is the physical form into which the sender encodes the information. the sender attempts to achieve understanding and a change in the behaviour of the receiver. i. the first element is the source of the communication.

Here the sender communicates without expecting or getting feedback from the receiver. 7. perception. television transmission would be appropriate. It illustrates that an individual with significantly different educational or cultural background ahs to put in greater effort to ensure successful communication. communication cannot be said to have taken place. education. On the other hand. the greater success of the probability of expected communication. the more effective the communication process is likely to be. expectations and mutuality of meaning with the sender. A policy statement from the chief executive is an example of one-way communication. However. the sender may feel embarrassed when the receiver draws his attention to sender’s mistakes and ambiguities.5. The socio-demographic and physiographic characteristics of the receivers influence in selection of an appropriate channel of communication. radio. Two-way communication is superior to one-way communication in the following respects: (i) Two-way communication is more accurate than one-way communication. telefax. giving an instruction to a subordinate and receiving it acceptance is an example of two-way communication. For example. It is affected by the receiver’s past experience. greater the feedback. (ii) Receiver’s self-confidence is higher in case of two-way communication. Receiver: the next element in the process of communication is the receiver. Feedback is a reversal of the communication process in which a reaction to the sender’s message is expressed. The receiver becomes the sender and feedback goes through the same steps as the original communication. For instance. in case of two-way communication. early feedback will enable the manager (sender) to know if his instructions have been properly understood and carried out. feedback is totally absent. Feedback: after receiving the message. 74 . If the message does not reach the receiver. Decoding: decoding is the process by which the receiver’s draws meaning from the symbols encoded by the sender. In certain situations one-way communication is more effective to get work from the subordinates. A model of communication by Wilbur Schramm. One-way communication takes less time than two-way communication. Two-way communication takes place when the receiver provides feedback to the sender. The greater the overlap or commonality of the receiver’s field of experience and sender. For an urgent message. message as well as the receiver. The feedback allows the sender to refine his communication. The communication process is incomplete without the existence of receiver of the message. as they are permitted to ask questions and seek clarification from the senders. the receiver will take necessary action and send feedback information to the communicator. telegram. telephone. so that it becomes more precise and accurate. Generally. 6. in case of one-way communication. It is the receiver who receives and tries to understand the message. The feedback is optional and may exist in any degree (from minimal to complete) in any given situation. the person who receives the message is called receiver. electronic mail.

which Communication which takes 75 . It is mostly expressed in verbal/oral form.8. allowing some information to pass through and disallowing others. Noise is any factor that disturbs. 2. It is used to transmit official messages within or outside the organisation.e. (c) horizontal communication. 1. The sender may not be able to encode the message properly or he may not be properly audible. confuses or otherwise interferes with communication. It is developed at its own due to mutual confidence and relations. Basis difference Meaning of Formal Informal (grapevine) The communication. It may take place among the persons having different positions at different level and chain is not a restriction. there is so much of noise or interference in the entire process that there is every possibility of the communication being distorted. Noise: surrounding the entire spectrum is the noise that affects the accuracy and fidelity of the message communicated. In any case. (b) informal communication. (b) upward communication. Network of informal communication is also known as grapevine. On the basis of flow or types of formal communication: (a) downward communication. Informal communication: it refers to the communication which takes place on the basis of informal or social relations among the people in an organisation. Formal communication: it refers to the communication which rakes place on the basis of organisational relationship formally established by the management. It may be verbal but mostly it is expressed in written form to have a proof. It strictly follows the chain of command. (d) diagonal communication. i. *Difference between formal and informal communication* Sr. The message may get distorted by other sounds in the environment. Generally it is used to transmit personal message and do not follow the principle of chain of command. *Types of communication OR forms of organisational communication* 1. The receiver may not hear the message. On the basis of relationship: (a) formal communication. The channel also may cerate interference by ‘filtering’. It can arise at any stage in the communication process. No. or comprehend it in a manner not entirely intended by the sender of the message.

8. Its speed is slow rout through various levels. It is mostly expressed in It is mostly expressed in written form. Due to verbal form it may lead to remorse. 4. 10. 9. It happens when information provider is of the view that the information disagrees with in interest. It may serve both organisational and social needs. 7. Responsibility can be easily fixed. Chain of command is not followed. Selective reception: when a part of information is blocked by any person in the channel of communication it is termed as selective reception. 5. Chain of command is strictly followed. There is no system for flow of communication. In other words only the selected part is further exchanged and remaining is blocked. It is not possible to fix responsibility. between different persons. There is a system of flow of formal communication. It serves only organisational needs. It happened when chain of command is strictly followed. 6. place independently without following official chain of position. verbal form. 76 . Generally there is personal involvement. Remorse Due to written form it does not lead to remorse. 12. 11. These levels may become obstacle in flow of communication. It is difficult to traceout source and direction of flow. Source or Source and direction of flow direction can be easily traced. *Barriers to effective communication* 1. Generally official messages are transmitted. Channel of communicatio n Interpretation Message is correctly of messages interpreted due to written form. Speed Chain of command Fixation of responsibility Nature of messages System of flow Needs served takes place following organisational position established by management.2. So many levels of management: when the message has go through multiple levels of management. It travels faster the formal communication. 3. Messages may be distorted as it flows verbally. 2. Generally personal messages are transmitted. Personal Generally there is no personal involvement involvement.

12. 13. Lack of organisational facilities: in some organisations there are no suggestion boxes regarding complaints and also the subordinate can’t disturb the chain of command. Symbolic barriers: sometimes the some word of language/symbol may carry different meaning to different parties as per their traditions. Specialization barrier: when a department or a person treats him more specialized. modified or lost at different levels before reaching to the last level. subordinates bay pass on interpreted (distorted) information to their superiors to please them and do not reveal their mistakes. 9. 6. 4. Language barrier: sometimes sender and receiver of message do not understand the same language and in that case messages not communicated. 5.g.g. Such lack of organisational facilities is also barrier in effective communication. Poor listening skills: sometimes people are poor listeners and they believe that the information is not enough important to pay attention to it resulting poor communication. People may refuse to accept the messages affecting them emotionally. 11. 8. But workers may think that due to increase budget their salary and wages will raise. customs or religion and in that case communication will not be an effective communication. the information may get filtered.3. 7. announcement in increase in budget is meant for increase by installing new plan and new technology machines and plant. Clear-cut instructions should be issued and follow-up measures should be taken to ensure that the instructions are thoroughly understood and are being implemented. But verbal communication is not possible there. Complex organisational structure: when organisational structure is of complex nature. Semantic problems: effective communication does not only include of transmission of information/idea but also includes that the receiver has understood the information in the same way as was desired by the sender. Physical distance of receiver and sender: physical distance between these two may also become a barrier generally in those circumstances where sender is interested in knowing the reaction of the receiver quickly. Moreover if the pronunciation of words by sender is not clear it may became an obstacle. 10. it will result no attention towards other departments/persons. Status barrier: the difference is status of sender and receiver may also become obstacle to effective communication. E. attitudes and social values of the participants. *Overcoming communication barriers* 1. Credibility of source: effective flow of communication also depends on trust and confidence of the receiver on the source of information/message and also on sending channel (sender). Emotional and psychological barriers: these barriers arise from emotions. 77 . Clarity of information: subordinates should be kept informed on policy that affects them on a regular basis. E.

Inadequate communication delayed action. policies. the atmosphere should be peaceful. so that there is effective communication of instructions and suggestions. when a boss is talking to his subordinate. otherwise it will be misunderstood by the receiver. Principle of objective: the communicator must know clearly the purpose of communication before actually transmitting the message. 2. 4. determine the receptivity and understanding levels of the receivers. The objective may be to obtain information. and change another person’s attitude and so on. Ask what. If the purpose of communication is clear it will help in the choice of mode of communication. Effective listening: the sender must listen to the receiver’s words attentively. Principle of understanding the receiver: understanding is the main aim of any communication. as for instance. The message can be conveyed properly only if it has been clearly formulated in the mind of the communicator. when required. The message should not be conflicting with previous communications. lies.2. Feedback: communication should be two-way traffic. guesses and misconceptions. Prompt information: the management should make a practice of passing along the information promptly to everyone concerned so that action. 6. Thus according to Killian. initiate action. Principle of consistency: the message to be communicated should be consistent with plans. 4. 3. It should not crate confusion and chaos in the organisation. Two-way communication is also necessary for feedback for the purpose of control. 6. If the communication channel is well maintained. This will also increase the morale of the employees. there will be no room for rumours. Principle of clarity: the beginning of all communication is some message. Creation of proper atmosphere: in particular cases. is not delayed. “communication with an awareness of the total physical and human setting in which the information will be received. Principle of completeness: the message to be communicated must be adequate and complete. give information. 5. be aware of social climate and customs. poor public relations affects the efficiency of the parties to communication. There should be some system by which the workers should be able to convey their suggestions and grievances to the top management. Picture the place of work. The message must be as clear as possible. No ambiguity should creep into it. Principle of feedback: this principle calls for communication a two-way process and providing opportunity for suggestion and criticism. Since the receiver is to accept and carry out 78 . *Principles of effective communication* 1. 5. programmes and goals of the enterprise. question the information’s timeliness. when and in what manner you would like to be communicated with if you were in the similar environment and position. Worker should get open doors for any clarification or consideration at all times. The communication must crate proper understanding in the mind of the receiver. Effective channels: management should try to cut the roots of the rumours. so that the receiver may also listen to the sender at the same time. 3.

to give their loyalty to the group and to carry out properly the purpose of the organisation. The latter must consider the suggestion and criticism of the receiver of information. energizes or moves behaviour towards goals. the forces inside the individual that inspire him to continue work are variously called as wishes. One can get a donkey to move by using a “carrot or a stick”. 79 . Principle of time: information should be communicated at the right time. A manager has to make appropriate use of various techniques of motivation to enthuse the employees to follow them. Issuance of well-conceived instructions and orders does not mean that they will be followed. Thus. Motivation is an effective and dynamic instrument in the hands of a manager for inspiring the workforce and creating confidence in them. These work for a while and then need to be repeated. *MOTIVATION* Introduction: To the behavioural scientists. The term motivation may be defined as “the managerial function of ascertaining the motives of subordinates and helping them to realize those motives”. motivation is defined as an inner state that activates. Motivation is the process of getting the members or the group to pull weight effectively. However. And. Through the motivation of the workforce. with people one can use incentives. But feedback principle is often given a back seat by most managers. drives. or threats or reprimands. It is an “inner striving condition. these only have a limited effect. motivation refers to a dynamic driving force. Thus. According to them. motivation stands for movement. his reactions must be known to the sender of message. which defeats the very purpose of communication. which stems from within. the word motivation is something stemming from within a person. increased or reinforced to secure further movement. The communicator must consider the timing of communication so that the desired response is created in the minds of the receivers. management creates ‘will to work’ which is necessary for the achievement of organisational goals and objectives.7. the instructions. which activates or moves individual into action and continues him in the course of action enthusiastically”. needs etc. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively. According to Rensis Likert motivation is the “core of management. *Meaning and definition of motivation* The term ‘motivation’ has its origin in the Latin word “mover” which means to “move”.” Motivation is an important function performed by manager for actuating the people to work for the accomplishment of organisational objectives.

provision for old age. Mallow proposed two ideas (i) only need not yet satisfied can influence the behaviour and (ii) needs are arranged a hierarchy of importance and they follow a definite sequence. It explains how and way the human behaviour is caused. Safety and security needs: after satisfying the physiological needs. clothing. According to him motivation arises from the needs and wants of an individual and drives the people towards action or work by doing which he makes efforts to fulfill these needs and wants. which has been widely acclaimed. H. personal bodily security. which are biological in nature. 80 . aspiration. needs and similar forces. In the words of Dalton E. According to McFarland motivation is a form of tension occurring within individual. people want the assurance of maintaining a given economic level. They want job security. motivation is the term. striving or needs direct.According to Dubin motivation could be defined as “the complex of forces starting and keeping a person at work in an organisation. These needs include such things as food. The role of motivation is to develop and intensify the desire in every member of the organisation to work effectively and efficiently in his position. *Models of motivation* Maslow’s Need Hierarchy model: A. and continues him in the course of action already initiated”. Motivation refers to the way a person is enthused at work to intensify his/her desire and willingness to use and channelise his/her energy for the achievement of organisational objectives. eliminating or diverting the tension. Basic physiological needs: the physiological needs relate to the survival and maintenance of human life. insurance against risks. These needs are primary needs.H. security of source of income. motivation is the way in which urges.” Thus. desires. Famous psychologist “A. Maslow develop a hierarchy/frame work for understanding human needs. control or explain the behaviour of human being”. air. McFarland. It is something that moves a person into action wand continue him in the course of action enthusiastically. etc. So the manager should understand the needs and wants of the people for the purpose of creative motivation. The need hierarchy is as follows: 1. with resulting behaviour aimed at reducing. which applies to the entire class of urges.Maslow developed a theoretical framework for understanding human motivation. Understanding the needs and drives and their resulting tensions helps to explain and predict human behaviour ultimately providing a sound basis for managerial decision and action. Motivation has very close relationship with the behaviour. Motivation is something that moves the person to action. 2. water and other necessaries of life. drives. desires.

the motivation will be defferent. interested in conversation. For example. not for satisfying higher level needs. the egoistic or social need may emerge. companionship. Moreover satisfied need will no longer be a motivator and needs and wants are infinity. Even if safety need is not satisfied. independence. Apparently. etc. They are concerned with prestige and status of the individual. He wants to do something. cultural differences are an important cause of these differences. more than by 81 . competence. at different levels of needs. They are also known as egoistic needs. Employees are enthusiastically motivated by what they are seeking. knowledge and success. need hierarchy may not follow the sequence postulated by Maslow. it is beneficial to him in particular and to the society in general. After his other needs are fulfilled. recognition. exchange of feelings and grievances. He is.3. The sense of achievement gives him psychological satisfaction. It involves realizing one’s potentialities for continued self-development and for being creative in the broadest senses of the word. Their degrees of satisfaction of needs do not vary according to the need priority mode. Appraisal of Need Hierarchy model: The need priority model may not apply at all times in all places. The phenomenon of multiple motivation is of great practical importance in understanding the behaviour of man. 4. However one or two motives in any situation may be prepotent. Self-fulfillment needs: the final step under the need priority model is the need for selffulfillment or the need to fulfill what a person considers being his mission in life. Proposition that one need is satisfied at one time is also of doubtful validity. Surveys in continental European countries and Japan have shown that the model does not apply very well to their managers. which is challenging and since this challenge gives him enough dash and initiative to work. Man’s behaviour at any time is mostly guided by multiplicity of motives. Moreover. workers in Spain and Belgium felt that their esteem needs are better satisfied than their security and social needs. Note: Maslow proposed that all human needs are kept as per rank of importance and human behaviour is to fulfill its needs as per importance rank and so he continuous in a proper sequence but after fulfillment of a need another need arise. belongingness. Money can act as a motivator only for physiological and social needs. a man has the desire for personal achievement. Thus. These needs boost the ego of individual. therefore. Social needs: man is a social being. achievement. while others may be of secondary importance. 5. sociability. Esteem and status needs: these needs embrace such things as self-confidence.

In certain people. Management can offer rewards to a worker who shows higher productivity and can punish him if his performance is below standard. if he can. He felt that management by direction and control is a questionable method for motivating such people who’s physiological and safety needs have been satisfied and whose social esteem and self-actualization needs are becoming important. According to McGregor. There are always some people in whom. They may react cautiously in order to keep what they already have. 2. this is a traditional theory of what workers are like and what management must do ot motivate them. but is intuitive deductions. 1. Accordingly. (iii) Is indifferent to organisational goals. It is important to note that these sets of assumptions were not based on any research. This is also called ‘carrot and stick’ approach to motivation. (ii) Is lazy and avoids responsibility. which followed carrot and stick approach to motivation of people and suggested autocratic style of leadership. Theory Y: 82 . it may be under-valued. In other words. Theory X: Theory X’ believes that autocratic managers often make the following assumptions about their subordinates.what they already have. need for self-esteem seems to be more prominent then that of love. man works for bread alone as long as it is not available. This is management’s task. Workers have to be persuaded and pushed into performance. has relatively little ambition and wants security above all. Theory Y seems to be applicable. a person who has experienced chronic unemployment may continue to be satisfied for the rest of his life if only he can get enough food. It suggests that threats of punishment and strict control are the ways to control the people. McGregor questioned the assumptions of Theory X. For instance. but they move forward with enthusiasm when they are seeking something else. There are important also creative people in whom the drive for creativeness seems to be more important. The first set of assumptions is contained in “Theory X” and the second set of assumptions in “Theory Y”. the subordinate in general: (i) Has an inherent dislike for work and will avoid it. McGregor’s participation model: Douglas McGregor who set forth in his book “Human Side of Enterprise” two pairs of assumptions about human beings which he thought were implied by the actions of autocratic and permissive managers. For such people. the level of operation may be permanently lower. wishes to avoid responsibility. Another cause of reversal of need hierarchy is that when a need has been satisfied for a long time. for instance. and (iv) Prefers to be directed.

Managers with Theory Y orientation make the following assumptions about their subordinates. the subordinate in general: (i) Does not inherently dislike work. not only to accept. ingenuity and creativity in the solution of organisational problems is widely. (ii) Will exercise self-direction and self-control in the service of objectives to which he is committed. and (v) The capacity to exercise a relatively high degree of imagination. (iv) Learns under proper conditions. not narrowly. Accordingly. 83 . but also to seek responsibility. distributed in the population. work may be a source of satisfaction or a source of punishment. (iii) Commitment to objectives is a function of the rewards associated with their achievement. Depending upon controllable conditions.

Worker’s commitment is directly related to the satisfaction of their needs. this theory places great emphasis on satisfaction of the needs. To this group of engineers and accountants. The findings of the research were that good feelings in the group under test were keyed to the specific tasks that the men performed rather than to background factors such as money. Neither of the two sets of assumptions is applicable fully in all situations and to all types of people. No man would belong completely to either theory X or theory Y. Thus. Thus. particularly the higher once. security or working conditions and when they felt bad. each person possesses the traits of both in varying degrees under different situations. there can be exceptions. skilled and professional employees who understand their responsibility and are self-controlled. It has been noted that theory X is more applicable to unskilled and uneducated lowerlevel workers who work for the satisfaction of their basic needs of food. feel either particularly good or particularly bad about jobs. Thus. the management should use an amalgamation of both the theories to motivate different employees. 3. and management by objectives and participative management practices. These men were asked to recall specific incidents in their experience. which made them. of the employees. However. The examples of highly placed employees in modern organisations shirking responsibility are not uncommon.Theory Y assumes that goals of the organisation and those of the individuals are not necessarily incongruent. It does not rely heavily on the use of authority as an instrument of command and control. job enlargement. 84 . Application of Theory X and Theory Y: Theory X and theory Y represent two extremes to draw the fencing within which the organisational man is seen to behave. A research was conducted by Herzberg and his associates based on the interview of 200 engineers and accountants who worked for eleven different firms in Pittsburgh area. They could be motivated by delegation of authority. Hygienie factors served to prevent loss of money and efficiency. Herzberg’s Motivation-Hygiene Model: A significant development in motivation was distinction between motivational and maintenance factors in job situation. it was because of some disturbance on these background factors which had caused them to believe that they were being treated unfairly. A lower-level employee may be more responsible and mature than a well-qualified higher-level employee. The basic problem in most of the organisations is that of securing commitment of workers to organisational goals. the real motivators were opportunities to become more expert and to handle more demanding assignments. It assumes that employees exercise self-direction and self-control in the direction of the goals to which they feel themselves committed. Theory Y seems to be more applicable to educated. these theories are important tools in understanding the behaviour of human beings and in designing the incentive schemes to motivate the employees. clothing and shelter. This led to draw a distinction between what are called as ‘motivators’ and ‘hygiene factors’. Therefore.

but their presence does not motivate employees in a strong way. 3. Inter-personal relations with subordinates. but the factors are really more potent as dissatisfiers. Maintenance of Hygienie factors Company policy and administration. Herzberg further stated that managers have hitherto been very much concerned with hygienie factors. These conditions are ‘motivational factors’. They are called maintenance factors in job because they are necessary to maintain a reasonable level of satisfaction among the also known as dissatisfiers or “hygienie factors” because they support primarily to build strong motivation and high job satisfaction among the employees. Hygienie factors include wages. 1. Technical supervision. Responsibility. 10. but are essential for increasing the productivity of the employees. Job security.hygienie factors provide no motivation to the employees. 9. Possibility of growth. Herzberg’s maintenance and motivational factors have been shown in the table Herzberg’s Maintenance and motivational factors Sr. Work itself. feeling of accomplishment and achievement. So they are not considered as motivational factors. responsibility and sense of job and individual importance. No. Many of these factors are traditionally perceived by management as motivators. In order to increase the motivation of employees. 85 . Motivational factors Achievement. but they do not provide motivation to the employees. 2. 7. Working conditions. Some job conditions operate primarily to dissatisfy employees when they are absent. Inter-personal relations with supervisor. They are also known as satisfiers and include such factors as recognition. Personal life. it is necessary to pay attention to the satisfiers or motivational factors. Inter-personal relations with peers. Advancement. 4. fringe benefits. but the absence of these factors serves as dissatisfiers. new experience and challenging work etc. The presence of these factors at a satisfactory level presents job dissatisfaction. they have not been able to obtain the desired behaviour from employees. Recognition. 6. physical conditions and overall company policy and administration. Status. As a result. Salary. opportunity of advancement and potential for personal growth. 5. 8.

Herzberg also said that to-day’s motivators are tomorrow’s hygienes because they stop influencing the behaviour of persons when they get them. When a person gets one thing, then something else will motivate him and the need, which has been fulfilled, will have only negative significance in determining his behaviour. It should also be noted that one’s hygiene may be the motivator of another. For instance, it is likely that workers in underdeveloped societies will designate some of the maintenance factors as motivators because their primary needs have not been fulfilled and they continue to be motivated by these factors. Comparison with Maslow’s theory: (a) Similarities: in a broad sense there are some similarities between Herzberg’s two-factor theory and Maslow’s Hierarchy of need theory which are as under: (i) Both Herzberg and Maslow lay stress on the different needs of the employees. Both can be appropriately classified as content theorists. (ii) In an advanced society, the lower level needs like food and shelter as pointed out by Maslow are all satisfied. As such they cease to be motivators. It is the higher level needs like esteem and selfactualization, which are more important for the purpose of motivation. Similarly, according to Herzberg, hygiene factors like pay, working conditions must be present to provide the necessary environment for motivation. Once this is done, the motivators like advancement, responsibilities go into play and actuate the individual. But it would be wrong to make much of the aforesaid over-all alikeness. Rather it would be doing injustice to the pioneers whose originality and deep insight are well recognized a staircase cannot be equated with a room although basically nearly the same materials may have been used to build both. (b) Difference: Herzberg’s model differs from Maslow’s model in respect of the following: (i) An important point of difference is that the lower level needs of individuals like food, shelter, and job security are regarded by Maslow as having the power or potency to motivate them. But to Herzberg these are just hygienie factors; of they are absent, there is dissatisfaction, but their presence does not by itself provide any motivation. The motivators in Herzberg’s theory are a class apart from hygiene factors. But all the needs according to Maslow are motivators, depending on the mental level, in which an individual is placed. (ii) Another difference is that Maslow formulated his theory out of his insight, individual thinking and experience as a psychiatrist, but Herzberg arrived at his findings from the
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responses to questions put by his team of researchers to a specified class of employees, viz., engineers and accountants. (iii) Maslow emphasized the need of human beings for all 24hours of the day whereas; Herzberg was concerned with the needs of employees in relation to their work and work environment. So, the claim to universality is stronger in the case of Maslow’s theory than in that of Herzberg’s theory. (iv) Again, Maslow’s theory applies to human beings in general including employees of all categories. But Herzberg’s theory concentrates on the motivation of professional people including engineers, accountants, agricultural administrators and the like, i.e., persons whose positions in an organisation are usually higher than rank and file. Appraisal of Herzberg’s model: Herzberg’s theory provides an insight into the task of motivation by drawing attention to the importance of job factors which are often overlooked. Particularly, it shows the value of job enrichment in motivation. However, Herzberg’s theory has not gone unchallenged. It has been criticized on the following grounds: (i) Herzberg drew conclusions from a limited study covering engineers and accountants. Engineers, accountants and other professionals may like responsibility and challenging jobs. But the general body of workers are motivated by pay and other financial benefits. (ii) In Herzberg’s study, the interviewees were asked to report exceptionally good or exceptionally bad moments. This methodology is defective because there is a common bias among human beings to take more credit for good things and put the blame on others for bad things. (iii) Herzberg gave too much emphasis on job enrichment. But job enrichment is not the only answer. Off-the-job satisfaction of the workers is also very important. Herzberg did not attach much importance to pay, status of interpersonal relationship, which are generally held as important contents of satisfaction.

Vroom’s Valence-Expectancy Theory: (1) Theoretical concepts: Attacking Herzberg’s two-factor theory, Vroom offered an expectancy approach to the understanding of motivation. According to him, a person’s motivation towards an action at any
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time would be determined by an individual’s perception that a certain type of action would lead to a specific outcome and his personal preference for this outcome. There are three variables of Vroom’s model given in the form of an equation. Since the mode is multiplicative, all the three variables must have high positive values to imply motivated performance choices. If any of the variables approaches zero, the probability of motivated performance approaches zero. Motivation = Valence*Expectancy*instrumentality Valence is the strength of an individual’s preference for a reward, expectancy is the probability that particular action will lead to a desired reward and instrumentality denotes an individual’s estimate that performance will result in achieving the reward. Thus, if an individual has a particular goal, some behaviour must be produced in order to achieve that goal. He will weigh the likelihood that various behaviors will achieve the desired goals and if certain behaviour is expected to be more successful than others, that particular behaviour will be preferred by the individual. (a) Valence (reward preference): it refers to the strength of an individual’s preference for receiving a reward. It is an expression of the value he places on a goal (outcome or reward). The value attached to a goal or reward is subjective as it varies from person to person. For instance, if a young and dynamic employee wants a promotion, has high valence or strength for that employee. Similarly, a retiring employee may have high valence for reemployment. People have different valence for various outcomes. The relative valence they attach to various outcomes is influenced by conditions such as age, education and type of work. The valence of a person for a goal may be positive or negative depending upon his positive or negative preference for this goal. If a person is indifferent to an outcome, his valence is zero. Thus, the total range of valence is from –1 to +1. (b) Expectancy (Effort-Reward Probability): it refers to the extent, to which the person believes that his efforts will lead to the first level outcome, i.e., completion of a task. Expectancy is stated as a probability, i.e., as individual’s estimate of the probability of an outcome from an action. Since, it is an association between effort and performance, its value may range from 0 to 1. if the individual feels that chances of achieving an outcome are zero, he will not even try. On the other hand, if expectancy is higher, the individual will put higher efforts to achieve the desired outcome. (c) Instrumentality (performance-Reward Probability): it refers to the probability to which the performance (first level outcome) will lead to the desired reward (second level outcome). For instance, an individual wants a promotion and feels that superior performance is very important in achieving promotion. Superior performance is the first level outcome and promotion is the second level outcome. The first-level outcome of high performance acquires a positive valency by virtue of its expected relationship to the preferred second level outcome of promotion. In other words, superior performance (first-level outcome) will be instrumental in

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(ii) Low performance-reward instrumentality relationship: similar performance may not lead to similar rewards. this individual will strive towards superior performance in order to achieve the salary increase. instrumentality and valence are all high. motivation will be moderate. If all the three are low. the resulting motivation will be weak. Motivation is the product of valance. In other cases. another individual may highly value promotion and perceive political behaviour as instrumental in achieving it. job security and working conditions. they may rank them differently. high value on salary increase and perceives superior performance as instrumental in reaching that goal. For instance. which the worker may not be aware of or may not consider fair. In other words. What is important here is that what the individual perceives as the consequence of a particular behaviour is far more important than what the manager believes the individual should perceive. all people in an organisation may not place the same value on such job factors as promotion. The management could provide the relationship between efforts and performance. One the other hand. The important contribution of Vroom’s model is that it explains how the goals of individuals influence their efforts and that the behaviour individuals select depends upon their assessment of the probability that the behaviour will successfully lead to the goal. the strength of avoidance behaviour will be determined by the negative valence and expectancy and instrumental factors. high pay. high expectancy and high instrumentality. Broom is of the opinion that what is important is the perception and value the individual places. the motivational force will be highest when expectancy. The merits of Vroom theory are: 89 . These three factors in the expectancy model may exist in an infinite number of combinations depending upon the range of valence and the degrees of expectancy and instrumentality. Similarly. The management must recognize factors for behavioural modification. The management must re-evaluate the appraisal techniques and formulate policies that strengthen performance-reward relationship as just and equitable. This individual is not likely to emphasize superior performance to achieve the goal. The reward policy may be inconsistent and may depend upon factor other than performance. The combination that produces the strongest motivation is high positive valence. expectancy and instrumentality. as it is the probability of achieving the desired outcome. vroom emphasizes the importance of individual perception and assessment to organisational behaviour. In essence.obtaining promotion (second level outcome). According to broom. Thus. Vroom’s model attempts to explain how individual’s goals influence his efforts and like need-based models reveal that individual’s behaviour is goaloriented. As said above. A worker may exhibit a poor behaviour due to: (i) Low effort-performance expectancy: the worker may lack the necessary skills and training to believe that his extra efforts will lead to better performance. The value of instrumentality also ranges from 0 to 1. so that these three elements achieve the highest value individually.

the Broom model has been used to predict a wide variety of work-related variables in a number of studies. Donnell and Weihrich pointed out: “one of the great attractions of the Vroom model is that it recognizes the importance of various individual needs and motivations. Business people do not actually calculate the point where marginal ost equals marginal revenue. importance of pay and pay effectiveness. leadership behaviour and leadership effectiveness. He looked at effective motivation not in terms of either a fixed set of human needs or as a uniform configuration of external motivations.A. If the workers do not put forth adequate efforts to achieve the organisational goal. etc. House and M. 90 . His is the contingency approach. and (c) they may not believe that if they achieve the standard. (v) Practical utility: according to R.(i) Basic framework: the Vroom’s model provides a basic framework for interpreting work motivation as Keith Davis put it. (b) they feel that their efforts will not lead to the production standard. By measuring and analyzing the workers’ output managers can get clues to their motivation. The expectancy model attempts to mirror the complex motivational process. (iv) Contingency approach: indirectly. O. suppose the organisation sets a certain standard for production (first-level outcome of organisational goal) for the purpose of incentive pay. In other words. As Koontz. Instead of assuming that satisfaction of a specific need is likely to influence organisational objectives in a certain way we can find out how important to the employee are: the various first-level outcomes (organisational objectives) for their attainment. (second-level outcome). organisational practices. It does seem more realistic”. These include job effort and performance. (ii) Appreciation of individual differences: it serves as a pathfinder because for the first time in a systematic way it draws attention to individual differences in motivation. if it does not produce the desired results. occupational choice. but it is still a useful concept for the theory of the firm. it should be given up for something better. Broom draws attention to an all-important fact that there is no one set formula for the motivation of individuals. if any method of motivation is found to be productive. so to speak. It is thus a step further from management by objectives. promotion. identify some of the important variables and formulate their reward plans accordingly.J. For instance. it may be assumed that either (a) they do not place much value on the second-level outcomes (incentive. From the theoretical standpoint it seems to be a step in the right direction. and the expectancies that are held with respect to the employees ability to influence the first-level outcome. Wahba. (iii) Clue to harmonization of individual and organisation goals: it clarifies the relationship between individual goals and organisational objectives and thus points to the way how the two can be harmonized. It is of value in understanding organisational behaviour. it will be instrumental in getting them higher remuneration or promotion. According to Fred Luthans. on the other hand. promotion). managers should continue it. managerial motivation. “the expectancy model is like marginal analysis in economics.

III and D. who reviewed six cases in the area of industrial psychology. Edward E. most researchers suggested the need for further study to test some of the principal variables. verbal conditioning. G. Schwab who investigated nine field enquiries in managerial settings and further M. Similarly. expectancy and instrumentality measures as well as ability assessment has not yet been offered. not much. 91 . learning theory.R. P. on which the model is based. its practicability is also open to question. Biglan. Filley. That is why its impact on job-settings has been negligible and influence on managerial action. Lawler. It has been rightly remarked by Hamner and organ “the predictive potential of this theory is still largely untested. the expectancy model is just a model and no more. (iv) Weak empirical support: the empirical support for the Vroom model is insignificant and lacks consistency. Alan C. “the expectancy theory has served as the basis for research in such diverse areas such as decision-making. some of its propositions were confirmed by studies made by T. III and J. As Lyman Porter. estimate expectancies and valences. from 1962 to 1974 and came to the general conclusion that there was empirical support to the expectancy theory. multiply and add up the total. However. Wahba and R. All these impart a certain amount of generality and practical utility to the model.” (iii) Little impact on management: apart from the fact that it is a highly complex model and difficult to understand. Heinemann. attitudes and organisational behaviour. House and Steven Kerr analyzed the numerous studies. (ii) Neglect of values: even as a general theory it has been condemned in some quarters as ‘nothing more than a theory of cognitive hedonism which propose that the individual cognitively chooses the course of action that leads to the greatest degree of pleasure or the smallest degree of pain’. H.In the opinion of Leon Reinharth and M. Robert J.A.” A fully developed test incorporating force. Richard Heckman pointed out. (vi) Popular support: it is said that since the model had been proposed. House who apprised fourteen investigations also confirmed the propositions. People rarely actually sit down and list their expected outcomes for a contemplated behaviour. “Hedonistic cognitions are insufficient to determine a person’s value system. “it does not attempt to describe what the content (of motivation) is or what the individual differences are. at least one issue of every journal in organisational behaviour reported some result on its application in practice. Ti indicates only the conceptual determinants of motivation and how they are related. Harzberg and Alderfer models do.” Further. Wahba. As Luthans pointed out. The demerits of Vroom’s theory: (i) Lack of concreteness: the generality of the model constitutes its principal weakness. Mitchell and A. more than 32. it does not provide specific suggestions on what motivates organisation members as the Maslow. unless of course they are asked to do so by a researcher.

It is like Maslow’s last level need of self-actualization. we can go through cycles. That is. if we can’t satisfy needs at a given level of abstractness. That is. as we move from. if we are unable to satisfy out growth needs.e. the ways we can satisfy those needs become increasingly abstract. Alderfer also revised Maslow’s theory in three other ways: (a) He argued that the three need categories form a hierarchy only in the sense of decreasing concreteness. as we move from. (c) He reasoned that we are likely to try to first satisfy out most concrete needs and then we tend to move on to more abstract needs. Maslow’s first two level needs.. Clayton Alderfer condensed Maslow’s five need categories into three sets: (i) Existence need: these include all forms of material and physiological and safety needs. and self-actualization needs are not entirely clear. which are situational and can change according to the environment. social. Relatedness needs cover Maslow’s social needs and that of esteem needs which are derived from other people. There seems to be some overlapping between esteem. then another. Different types on needs can operate simultaneously. Thus. in this sense. which persist over a period of time. Thus. the individual will both persist along that path and at the same time regress towards more easily satisfied needs. If a particular path towards the satisfaction is blocked. With these points in mind. social. Comparison and contrast with Maslow theory: 92 . we again focus on relatedness needs. the opposite of satisfaction or relatedness needs is emotional distance rather than hatred. the lines between esteem. (ii) Relatedness need: this includes all needs that involve relationships with other people we care about. and physiological needs. and the episode needs. In this way. a focus on existence to relatedness to growth needs. (iii) Growth need: these needs involve persons making creative efforts to achieve full potential in the existing environment. suggesting a pattern of satisfaction progression-that is. which Maslow hypothesized. Alderfer’s work gives up a sound basis to categories of human needs and to think about the relationship between need categories. Alderfer distinguishes between chronic needs. the ways we can satisfy those needs become increasingly abstract. Alderfer sounds somewhat like Maslow.Alderfer’s Existence-Relatedness-Growth (ERG) Model: Serious doubts have been expressed about the existence of the five distinct need categories. i. moving from a focus on one need. Also. (b) He recognized that rise in the level of satisfaction of our existence and relatedness needs may result in decrease concreteness. and then back again. a focus on existence to relatedness to growth needs. we “drop back” and again focus on more concrete needs. Alderfer conceived of ERG needs along a continuum which avoids the implication that the higher up an individual is in the hierarchy the better it is.

(iii) the provision of backlash of fulfillment of a need accords with reality. and (iv) both deal with upward movement of motivation according to the hierarchy. The term ‘relatedness’ used in the theory is particularly confusing. Alderfer has grouped further the five needs enunciated by Maslow. and (iv) Alderfer also recognized the influence of a man’s personal background and his natural environment. (iii) unlike Maslow. Accordingly. achievement. (ii) it is more flexible and therefore. it fails to contribute effectively to human resources management. “most contemporary analyses of work motivation tend to support Alderfer’s theory over Maslow’s”. whereas Alderfer focused more on a continuum of needs than their hierarchical levels. and (iii) Need for affiliation (n-Aff): a drive for friendly and close interpersonal relationships. (iii) the overall structure of need categories is also the same. In the words of Fred Luthans. related needs may in some cases take precedence over existence needs. more realistic.l Alderfer also envisaged downward movement in the hierarchy. which is based on three types of needs. Achievement motivation: some people have a compelling drive to succed and they strive for personal achievement rather than the rewards of success that accompany it. Merits of Alderfer’s theory: (i) Alderfer’s concept of needs is more direct and simple to understand. and like other content theories. (ii) Need for power (n-Pow): a drive to influence others and situations. They have a desire to do something better or more efficiently than it has been done before. This drive is the 93 . In his opinion. McClelland’s three need model: Each person tends to develop certain motivational drives as a result of his cognitive pattern and the environment in which he lives. namely. Probably this is one of the important reasons for lack of popularity of Alderfer’s theory. and (iv) there is a specific method indicated in the theory for its testing and validation. They are stated below: (i) Need for achievement (n-Ach): a drive to excel. ERG needs do not maintain sharp lines of demarcation. (ii) the basic needs emphasized in both are the same. David McClelland gave a model of motivation. which are as follows: (a) Similarities: (i) both are content theories. Criticism of Alderfer’s theory: The fact that the needs are not strictly demarcated goes against the theory. (b) Dissimilarities: (i) Maslow’s main contention is hierarchy of needs.There are some similarities as well as dissimilarities between Alderfer’s ERG theory and Maslow’s theory of Need Hierarchy. advance and grow. power and affiliation. there can be not only satisfaction progression but frustration regression as well. (ii) thus.

Affiliation need can be viewed as the desire to be liked and accepted by others. one of the needs will tend to be more characteristic of the individual rather than the other two. In other words. to be influential. Individuals with a high affiliation motive strive for friendship. It is the drive to relate to people on a social basis. influence or have control over others. and desire relationships involving a high degree of mutual understanding. and tend to be more concerned with gaining influence over others and prestige than with effective performance. prefer cooperative situations rather than competitive ones. they dislike succeeding by chance. People possess the above needs in varying degrees. From researches into the area of achievement need.achievement need. McClelland’s concept of achievement motivation can be related to Herzberg’s motivation-hygiene theory. individuals high in nPow enjoy being “in charge”. Power-motivated people wish to create an impact on their organisations and are willing to take risks to do so. Individual with a high need for achievement thrive on jobs and projects that tax their skills and abilities. McClelland’s research revealed that managers generally score high in the need for achievement. and to control others. High achievers are not gamblers. rather than leaving the outcome to chance or the actions of others. prefer to be placed into competitive and status-oriented situations. motivating forces for managers lie in the challenge and potential of the job. Such individuals are goal-oriented in their activities. seek a challenge and want task relevant feedback. People with high achievement motivation tend to be interested in the motivators and with low achievement tend to be interested in the motivators and with low achievement tend to be interested in the motivators and with low achievement tend to be interested in environmental or hygienie factors. where they can receive rapid feedback on their performance so they can set moderately challenging goals. However. McClelland found that high achievers differentiate themselves from others by their desire to do things better. 94 . They prefer the challenge of working at a problem and accepting the personal responsibility for success or failure. Individuals with high affiliation needs value interpersonal relationships and exhibit sensitivity towards other people’s feeling. Power motivation: the need for power is a drive to have impact. They seek situations where they can attain personal responsibility for finding solutions to problems. strive for influence over others. Affiliation motivation: this need has received the least attention of researchers. But individuals with the high power needs seek to dominate.

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