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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.
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
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’—
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.
Nature or Characteristics of management: (i) (ii) (iii) (iv) (v) (vi) (vii) Goal oriented. 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. (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 ---. As a discipline: a subject of study drawing upon knowledge of others disciplines. A young and growing discipline. creativity is the process of developing new ideas. Such features are as follows: (i) It is a process: process means a systematic method of doing some work. which illustrate the nature of management. An elite group in the society. It is that process in which work is done with others or it is got done from them. (xi) The combination of multiple functions (xii) Management is a distinct entity. As a group: a body of persons who perform the task of managing organization. Management is recognized as a continuous process. Universal.Meaning of management at glance: (i) (ii) (iii) (iv) As an activity: getting things done through others being with them. In order to achieve the pre-determined objective a 4 .it means that management results are according to the situation. OR After a careful study of definitions we embark upon such features. (xxii) Management is creative and innovative formulate creativity. As a process: a series of interrelated functions performed in all organizational.
The quality of a profession is that he must posses some special qualifications or ability for which he is paid remuneration. MANAGEMENT – Art. A group rather than an individual can easily and effectively attain management of an enterprise. personal skill. which is also important. (ix) It is a combination of multiple functions: the basic function of management is to achieve the objectives of the organization successfully. So. scientific experiments. A manager did these works in a continuous order. (ii) Group efforts: management always efforts to group efforts and does not apply to an individuals. staffing. (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. which is connected with the people living in society. Management is everywhere. universal principles. That is why a manager has to perform various function like planning. We can say that specially qualified experts are needed for managing the company. The knowledge of management is also a qualification and managers also get their remuneration for it. staffing. Science and Profession: As a science: systematic body of knowledge. is called a social activity. organizing. It can only be feel or realized on the basis of the success of an organization. As an art: practical knowledge. leading and controlling etc. Hence. (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. leading and controlling. which is not visible. it is a process. cause and effect relationship. 5 . there should not be any doubt or hesitation to call it a profession. (vi) Management is a universal activity: it is clear that management is not only connected with business but also with non-business activities also. Any activity. management is considered a profession. In this context management is also described as a social activity. (vii) Management as a profession: when we have recognized the distinct entity of management. hence management does not mean one particular job but it happens to be a combination of various jobs.manager performs the work of planning. with out objectives management would be difficult if not impossible. organizing. (viii) Management is an intangible force: management is a force. validity and predictability. (iv) Attainment of pre-determined objectives: group efforts in management are always directed towards the achievement of some pre-determined objectives. creativity and continuous practice.
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.
Management is essentially an art because: Firstly. Secondly. Management is a personalized process every manager has his own approach and techniques to solve problems. Thus management fully lives up to the description of an Art and therefore it is an art. 2. It seeks to achieve concrete practical results that is output. the manager gets perfection in the art of managing through continuous practice. An artist must not only learn the theory but also its application in practice. growth etc. the process of management involves the use of knowledge and skills in solving various problems. Management is creative as the manager creates new things and improves upon the old things. profits. depending upon the environment in which he works. The success of a manager depends on his personality in addition to his technical knowledge. Similarly every manager has his individual approach and style on solving managerial problems. Practical knowledge: every art signifies practical knowledge. (iv) Art prescribes row to do things and it can be improved through continuous practice. (ii) Art is essentially creative and the success of an artist is measured by the results he achieves. This is level of their personal skill. Thirdly. OR Art implies the application of knowledge and skills to bring about the desired results. Features: 1.MANAGEMENT AS AN ART: Main features of art are: (i) Art involves the application of knowledge and skills to achieve desired results. Lastly. (iii) Art is a personalized process as every artist has his own style or approach. 7 . 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. A manager is judged not just by his technical knowledge but his efficiency in applying that knowledge. Personal skill: every artist has his own style and approach to his job.
therefore management may be called an inexact science. Management principles by heart it also requires practical application of those results. OR Science means a systematic body of knowledge pertaining to a specific field of study. Thus management cannot be regarded as an exact science like physics and chemistry. It deals with the study of behavior of human beings. It contains general principal and facts which explains a phenomenon. It consists of various concepts. MANAGEMENT AS A SCIENCE: Main features of science are: (i) Science is a systematized body of knowledge. Creativity: art is basically creative therefore every piece of art requires imagination and intelligence to create. which is subject to constant changes and difficult to predict. Management is a science because: According to the given information about science. Thus management cannot be regarded as exact science like physics. principles and techniques developed through observation and experience. as is the case with other social science like psychology. A manager effectively combines and coordinates the factors of production to create goods and services. These principles are universal in nature and establish on cause and effect relationship. 4. Improvement through practice: every artist becomes more and more efficient through constant practice. sociology. Similarly a manager gains experience through regular practice and becomes more effective. 5. He uses CM’s to the growth of his organization. Conclusion: One cannot become efficient and effective manager simply by learning.3. (iii) The scientific study is based on observation and experiments. Every manager applies certain knowledge and skills to achieve the desired results. 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. (ii) It is based on cause and effect relationship. 8 . (iv) The principles of science have universal validity and applicability. Result oriented approach: art seeks to achieve concrete results. chemistry etc. management is also a systematized body of knowledge.
Features: 1. Management principles are also based on scientific enquiry and investigation. management deals with people and it is very difficult to predict their behavior accurately so management is a social science. Conclusion: Management is not a perfect science like other physical science such as astronomy. management is a separate discipline having a specialized and organized body of knowledge. Systematic body of knowledge: management is a systematic body of knowledge consisting of general principles and techniques. 4. 2. So they can be explained logically. Restricted entry: there exist institutions and universities to impart education and training for a profession. Every time the test will give the same result. 5. Management as a profession: A profession is a caving that requires specialized knowledge and often long intensive academic preparation: Features: 1. Specialized body of knowledge: every profession has a well-defined body of knowledge relevant to the area of specialization. In order to practice a profession a person requires specialized knowledge of its principles and techniques. and biology etc. Scientific enquiry and experiment: scientific principles and derived through scientific investigation and reasoning. These have been developed through practical and experimental experience of a large number of managers. These help to explain events and serve as guidelines for managers in different types of organization. No one can enter a profession without going through the prescribe course of learning. physics. There exists a substantially and rapidly expanding body of knowledge in management. similarly the principles of management establish cause and effect relationship between different variables. Cause and effect relationship: principles of science lay down a cause and effect relationship between related factors. Management contains some fundamentals principles. Test of validity and predictability: validity of scientific principles can be tested at any time and any number of times. Universal application: scientific principles represent basic facts about and a particular field of enquires. which can be universally applied. scientific principles are critically tested. These principles may be applied in all situations and at all times. 3. 2. chemistry. These principles are flexible and need to be modified in different situations. Many institutions have been set up which offer courses for specialized 9 . Today. Principles of science can also be tested for their validity.
which contains rules and regulations providing the norms of honesty integrity and professional ethics. by the is also expected to produce quality goods at reasonable costs and to contribute to the well being of the community. 10 . The representative association to ensure self-discipline among its members enforces the code of conduct. Any member violating the code can be punished and his membership can be cancelled. Representative association: in every profession there is a statutory association or institution. Managers have formed certain associations for the regular exchange of knowledge and experience. Code of conduct: members of one profession have to abide by a code of conduct. 4.training in management. Service motive: a profession is a source of livelihood but professional are primarily motivated by the desire to serve the community. A profession enjoys community sanction or respect. 5. A manager of a factory is responsible not only to its owners. which regulates that profession. 3. Formal education and training has become very helpful in getting jobs as managers.
Conclusion: Management fulfills several essentials of a profession but like other professions management does not restrict entry into managerial jobs. 2. 4. Achieving pre-determined objectives: each organization is established with certain aims. 2. 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. In its absence the means of production remain merely the means and can never be the producers. 6. In this reference. 11 . 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. 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. We know that not only in the field of business but in other fields also management has come to occupy an important place. Maximum prosperity for employer and employee. Most efficient use of the limited 1. Management is the only power and medium which can help in the successful attainment of these aims. to people with a special academic degree. 5. 3. it is said that “any thing minus management is nothing. management is a dynamic and life-giving element of every business. Objectives of management at a glance (i) (ii) (iii) (iv) (v) (vi) Securing maximum results with minimum efforts. which clearly highlight the importance of management. Human better mere Elimination of all types of waste Economic growth Social justice Importance of management at glance: 1.” These are some topics.
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. 11. A good manager serves as a friend and guide to his subordinates. Management minimizes risks. 14. Competition is increasing day by day. 8. development is a matter of human energies rather than of economic growth and generation of human energies is the task of management. 4. Only an efficient and clever manager can make it a reality and save the reputation of an organization. It co-ordinates the activities of different departments in an organisation and maintains team spirit amongst the personnel.resources is the key to the successful business and thus this fact can be converted into reality with the help of management. 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. Management is the mover ad development in the consequence. 12. Meets the challenge of change: Management is a catalytic force that enables an organisation to face the challenge of change. Managers maintain a dynamic equilibrium between an enterprise and its environment through innovation and creativity. 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. 12 . 6. 5. 9. 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. Stability: management ensures the survival of an organisation in a fast changing environment. Economic growth: Management is the catalyst of economic growth. To maintain a sound organizational structure. 13. It improves the personality and caliber of people to raise their efficiency and productivity. Human development: Management is not simply directions of things but the development of men. So many goods having modern techniques are in the bazaar customers accept only those products which are cheap and the best. Reduces cost of production. Increased profits. 10. The environment of business has become very turbulent. 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. Overcoming competition: these days business is not localized but it has assumed national or even international dimensions. 7. 3.
offices. Management is generally used with reference to business enterprises. Administration decides what is to be done and when it is to be done. difference 1. (ii) (iii) DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION: Sr. English concepts: management is the higher-level system and it has more power than administration. Basis of No. management and administration are synonymous. Modern concepts: According to it. where he will do it.. 6. 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. Administration is a decision making function. The term administration is applicable at the top level of management. The term administration is generally used from business organizations like govt. . 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. The term management is more applicable at middle level and lower level of management. 4. 3. 2. universities etc. Management decides who will do the function and how he will do it. Administration aims at determining the objectives. 5. plans and policies of an enterprise. Management is an execution or doing function. colleges. there are three prevalent concepts: (i) American concepts: Administration is a higher-level activity or system and management is lower. 13 Management Management is to translate threats into opportunities. Meaning Purpose Nature Decisions Scope Usage Administration It means the determination of objectives.
9. Minister. Vice . Administration decisions are influenced by govt. branch manager etc. 11. 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 . Level It is mainly top-level function. Function It is a determinative or thinking function. 13. and public sector. general manager. policies. It concerned with the implementation of policies. Commander. Features affecting decisions 8. It is a activity concerned with directions of human efforts in the executions of plans. Involvement Planning and controlling are the main functions involved in it. 15. 12. It is largely a middle and lower level function.Chancellor. 16. Management decisions mainly influenced by target of enterprise. Influence Its services are influenced mainly by public opinion and other outside forces. Directing and organizing are main functions involved in it. Commissioner. sales manager. Technical and human skills used mainly in business organization. Relationship Administration is related mainly with the owner and top-level managers. social and political circumstances and economic additions.7. are the Management is related with the workers and employers of organization. 10. Managing director. It is an executive or doing function. Concerned It is concerned with determination of major object and policies. Managerial decisions are influenced mainly by objectives and policies of organization. Concerned It is not directly concerned with direction of human efforts. Skills Conceptual and human skills used eagerly in govt. Governor etc. 14. Registrar.
It is held responsible for the general success or failure of the organization. (x) To decide the distribution of profits. Intermediate management: Intermediate or upper middle management comprises departmental or divisional heads. works manager. marketing manager. It is also known as departmental or functional management.g. 15 . These executives serve as a link between intermediate or top management and the operating management.g. (ix) To represent the company to the outside world. It is basically an organ of overall review and control. He performs the usual managerial functions of planning. (viii) To exercise the overall review and control of the financial and operating results of the company. To design broad organization structure. Features: (i) (ii) (iii) (iv) (v) (vi) To analyse and interpret changes in external environment of the company. E. It is the ultimate source of authority. To coordinate and integrate the activities of different departments and divisions of the company. He also keeps the organization in harmony with its external environment. office manager etc. 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. Every divisional head is the overall uncharged of one particular division or department. branch manager. Chief executive is concerned with the overall management of the company’s operations. It is their responsibility to ensure success of the organization. plant manager. E. directing and controlling in relation to one department.Top management refers to the managing at the highest level in the management hierarchy. To establish long term corporate plans. To appoint departmental heads and key executives. He maintains coordination among different departments of the company. area sales manager. To formulate and approve the master budget and departmental budgets. (vii) To provide overall direction and leadership to the company. organizing. staffing. He is accountable for the performance of his division or department to the chief executive. Middle management: Middle management consists of all sectional heads. finance manager etc. He coordinates and controls the activities of all personal working in different branches of his department.
5. Supervisory or operating or first-line management: This is the lowest level of management in an organization. 6. To arrange material and tools is maintain machinery. CONCEPTS OF MANAGEMENT (a) 1. (b) Process of management: it includes six m’s. There are certain legal rules.Function: (i) To interpret and explain the plans and policies formulated by top management. To advice and assist workers by explaining work procdures. motivate and develop supervisory personal. 4. supervisors and operating managers maintain close contacts with rank and file workers and supervise day-to-day operations. 8. solving problems etc. 3. (v) To lay down rules and regulations to be followed by supervisory personnel. foremen. 4. To issue orders and instructions. (ii) To control the operating performance. SKILLS OF A MANAGER 16 . To plan day-to-day production with is the goals laid down by higher authorities. They are concerned with the mechanics of jobs. Function: 1. It consists of supervisors. 3. 7. To supervise and control workers operations and to maintain personal connection with them. 5. To assign jobs to workers and to make arrangements for their training and development. 2. To maintain discipline and good human relations among workers. Men Money Machine Material Market As a profession: you need proper degree. sales officers. To report feedback information and workers problems to the higher authorities. (iii) To cooperate among themselves so as to integrate the various activities of department. 2. (iv) To train. and purchase officers etc.
Management does not simply mean the knowledge of principles of management rather it is its application which makes its effective. So. for the efficient working and smooth working small sub-systems should work properly. Each principle and concept should be clear in the mind of a manager and he should be effectively able to apply him. Human skills: A manager should have Psychological knowledge. which will ultimately helps the business. education values etc. According to System theory. 17 . MANAGEMENT AND SOCIAL RESPONSIBILTIES FOR: Manager should have social responsibility for the people. Thus. He should able to deal with different persons in different circumstances. the managers are very creative and if they will take part in social problems. the society is bound to improve in some kind or others. Managers have a creative and also communicative skill. superiors and other members relating to business. The had to interact with his subordinates. As their main task is to have the cordial relations with people inside the organization or outside the organization. These decisions must be effective and practical in use as well. it creates a favorable impression on the society. it will create a good impression on other people living or working under him it will motivate the sub-ordinates working under him. if managers will take part in social event or they will become responsible towards society. Because manager is a person who is very skilled.g. the society is sure to make progress become one man can change the whole environment. Managers take the input from the society e. Technical skills: it is concerned with the application of skill or knowledge acquired. if he will take interest in the social functions or problem. 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. Decision making skills: in crucial times a manager should be able to have the ability of making decisions.
Conflicting consideration: A business manager will be guided by two considerations. Manager takes the salary for gobering his organizing properly not for solving the social problem of the society.AGAINST: The main function of the manager is to govern his organization smoothly and efficiently. Inefficiency in the system: there is no power other than self-interest. resources. namely. He should not be able to do his work properly. the play-ground is to achieve victory. that in future business will come to occupy a position of predominance the idea of social responsibility of management opinion against. but there are others who have expressed their opinion both sides are given as under:- Arguments against social responsibility: 1. which can get work out of people. So. private market mechanism and social responsibilities which are opposite to each other. 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. It means that when business is alive to its social responsibility. he should not make himself responsible towards the society. Arbitrary power: Business managers will get arbitrary power in the matter of allocation of resources in the welfare of the society. 18 . the people in the beginning will be so thoroughly impressed by it. They should have no right to interfere with the external environment of business. by ignoring self-interest. interest groups etc) of improving are solving the problem of the society. OR There are many thinkers who have supported this. which in itself is a painful delaminate. in the same way the chief objective of business is to enhance its profits by utilizing its. Thus. Contrary to the objective of business: Just as the primary objective of players in 2. 3. 5. start thinking of social responsibility the whole work-system will turn inefficient. manager should not move his mind towards social responsibilities of the society. 4. It owners of business. Effects of business values: Business should not have any social responsibility otherwise social values will come to be dominated by business values. The social problem should be left for those people. So generally take the responsibility (political parties. 6.
8. their social power must be taken away by the society through government controls and regulations and other measures. 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. which form its base.7. 8. It is the moral and right thing to do: It is widely agreed that businessmen today have considerable social power. and opportunity make better employees. 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. Public image of business would be improved: The business will retain the needed credibility with the public if it performs its social obligations. People who have good environment. education. has to interfere increasingly in the business system. This power is virtually granted to them by the society. 5. The social responsibilities of businessmen must be proportionate to their social power. 2. which must have a general relationship with social responsibilities. 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. if taken care of in the present ensures the success of the organization in the future. which adversely affects the progress of business. It will also avoid 19 . honesty and morality. regulation: If business does not care of its social responsibility. the govt. Argument for social responsibility: 1. 6. Difficult implementation: the concept of social responsibility is ill conceived and ill defined and is difficult to be implemented. customers and neighbours for business than those who are poor. Avoidance of govt. 4. Long term self-interest of business: the social responsibility of business. 7. Business is only a subsystem of society and this sub-system must contribute to the welfare of the main system. 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. It is necessary that every business are obliged to use the social resources for the common good of society. 3. ignorant or oppressed. Code of conduct: Members of a profession are bound to follow a code of conduct. The consumers will have to pay higher costs. If the businessmen do not assume social responsibilities. Code of conduct includes rules connected with profession.
Planning skills: the manager must passes the skills of thinking the skills of analyzing the 2. It is the ability to it through unimportant aspects and quickly gets though the heart of problem. traits offered by the changes in environment. Such skills help the manager to analyse the forces working in a situation and to take a broad and foresighted view of the organization. 3. type of relationship to be established between various people and various jobs. 4. conflict with the society in its own interest. span of management. An awareness of the importance of human skills should be part of manager’s orientation. 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. 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. 5. Technical skills: technical skills refer to the ability and knowledge in using the equipment. He must be able to assess or guess the changes in environment. consumers and suppliers will lead to success of business. 7. Good relation with the workers. Diagnostic skills: it includes the ability to determine by analyzing and examination. He must be able to match two sets of environment on the basis of external and internal analysis. A manager must be clear about grouping of various jobs. techniques and procedures involved in performing specific tasks. These are required to win co-operation of others and to build effective work teams. Conceptual skills: conceptual skills comprise the ability to see whole organization and interrelationships between its parts. MANAGERIAL SKILLS: 1. 6. subordinates and peers. they will organize themselves and compel the business its social responsibilities. These skills refer to the ability to visualize the entire picture or to consider a situation in its totality. Leading skill: leadership is the ability of individual to influence the people. 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. If they don’t get fair treatment form business. Human skills are reflected in the way a manager perceives his superiors.9. The consumers are well informed: They expect higher quality products at responsible rates. environment. These skills require specialized knowledge and proficiency in mechanics of a particular job. the nature and circumstances of a particular condition. It is not only the ability to specify why something happened but also the ability to develop certain possible outcomes. it includes what is happening in the society organization and political system. Human skills: human skills consist of the ability to work effectively with other people. 20 .
The manager must be in a position to identify the problem. 9. Formulating the plan by the application of the alternatives. Providing correct information to organisation. Not using any political or other strategies. Responsibility towards suppliers: people who supply raw material. e. Controlling skill: there are certain standards. The course of action to be followed is as under: 1. mechanical components. To motivate them the organisation must reward them. You can survive in the vest way if the industry will survive: a. Sharing latest knowledge. It is the duty or says responsibility of the manager that the suppliers are being paid at the time. You can take the advantage by showing collectiveness. packaging (as in the case of children packaging plays a very important role). 4. (i) Routine and program decision (ii) Non-routine and non-program decisions. 5. Responsibilities of manager: 1. Decision making skills: there are two types of decisions to be taken by the manager. Responsibility towards distributors: it is the responsibility of the manager to check regular supply of the product. Responsibility towards union: employees union is recognized as the enemy of the organisation. Selecting the best course of action.: 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 . 6. 4. 2. g. Compiling with the norms lay down by the association. 3. credit facilities must be made available to the middle class people etc. Responsibility towards govt. A manager must keep check on the activities of subordinates and must rectify them if there are any problems. c. which are fixed in a way such that accomplishment of those standards leads to the accomplishment of goals. d. f. 3. 2. Product must be checked for the quality. b.8. financial institutions and advertising agencies. There should be fair return on investment that is fair commission must be paid. Searching for the alternative solution. There must be free testing of goods that is distribution of samples. Comparing merits and demerits of each solution. Reaching to the main cause or the problem. Supporting the individual members of the association. Indulging in fair and ethical competition.
Liaison: It describes the manager’s relationship with the outsiders. Disturbance handler: This refers to taking charge when the organisation faces a problem or crises. 2. bestowing honors. 7. A manager addressing the trade union is an example. industry groups etc. governments. 3. welcoming official visitors. A manager calling a staff meeting after a business trip is an example of such a role. 8. legitimizes the power of subordinates and brings their needs in accord with those of his organisation. 9. Disseminators: It involves transmitting the information’s and judgments to the members of the organisations.5. 22 . Sending the correct information. boss of an important customer. An example is picking up a rumor about his organisation. Resource allocate: In this role a manager approves budgets and schedules sets priorities and distribute resources. distributing gifts to retiring employees are examples of such ceremonial and social duties. Organisation must try to operate as a model citizen. He hobbies and depends his enterprise. Making speeches. 6. 4. For example a manager decides to launch a feasibility study for setting up a new plant. The manager sets an example. Leader: This role defines the managers relationship with his own subordinates. 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. Entrepreneur: It involves initiating changes or acting as a change agent. dealers. For example a strike. Monitor: It implies seeking and receiving information about his organisation and external events. 9. Negotiator: As a negotiator a manager bargains with suppliers. trade union’s agents etc. Organisation must not try to damage the culture of that area and must try to maintain the rich culture of that area. Figurehead: In this role manager performs symbolic duties required by the status of his office. The information relates to internal operations and external environment. Taxes and duties must be paid regularly. a manager speaks for his organisation. A manager handles conflicts. 8. A manager maintains mutually beneficial relations with other organisations. 6. feud between subordinates. 5. Spokesman: In this role. complaints and competitive actions. 10. 7.
that is recruitment. It involves determinations of goals and the activities required to be performed to achieve the goals. Over all planning is deciding that in present. (d) Division of activities into jobs (e) Fitting individuals into jobs. Staffing: Staffing is the process of determining the manpower requirement that could meet the company’s objectives. 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. . 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. Staffing also involves upgrading of quality/skills of the staff to get higher performance from then. 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. Staffing usually includes the following activities: (i) Human resource planning. Personnel department of an organisation looks after the function of staffing. and (f) Developing relationships. 23 2. Staffing is a managerial function of attracting. (iii) Receiving applications.Functions of management: 1. (ii) Announcing vacant positions. In conclusion we can say that organizing refers to distribution of work to the superiors and sub-ordinates and fixing there authorities and responsibilities. (c) Determination of objectives. what is to do in future. Planning: It is a process of thinking before doing. 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. acquiring. 3.
(c) Motivation: effective motivation is necessary for getting voluntary cooperation of the subordinates. Final selection and appointment letter. A manager has always to tell the subordinates what to do. Comparison of actual performance with the planed performance. Different types of rewards motivate different people. job enlargement. 3. quantity. To some financial incentives are important. Interviewing. 2. Leadership is concerned with influencing the behavior of followers. freedom to do work and recognition. It involves the following steps: 1. (b) Leadership: a good manager must also be an effective leader. time taken etc. Orientation and placement. 4. the manager must have leadership skills. how to do it and when to do it. As a conclusion directing includes the following: (a) Communication: it is the process of passing information and understanding from one person to another. In order to get the cooperation of employees. 24 . (e) Leading the subordinates to influence their activities towards achievement of goals. It involves comparison of actual performance with the planned performance as to quality. (d) Issuing orders and instruction by the superior. Every manager should study the behaviour of individuals working under him to provide him or her proper inducements. while others are motivated by non-pecuniary incentives like job security. 5. and than analyse the deviations and to take corrective measures to correct the deviations. Establishment of standards.(iv) (v) (vi) (vii) (viii) 4. Medical test. Administering test. He has to create an understanding in their minds in regard to these matters. (f) To ensure that the subordinates are working as per plans and policies. Directing or Leading: Directing as a function of management is concerned with instructing. The style of leadership will vary from situation to situation. Find out deviations. Measurement of actual performance. Controlling: Controlling is a process of verifying whether actual performance is in accordance to the planned performance and to take corrective action wherever required. This process is necessary for making the subordinates understand what the management expects of them. guiding and inspiring people in the organisation to contribute to the best of their capabilities for the achievement of organizational objectives.
ethros. Terms such as business ethics. From this point of view. giving beliefs. or deals that pervade a group. It addresses the question of what ought to be. Taking corrective action. 25 . which should pay a very significant role in guiding the conduct of managers and employees in the operation of any enterprise. 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. there are few absolute standards and each issue must be judged by studying its impact upon all affected parties. not neutral.5. Ethics refer both to the body of moral principles governing a particular society or group and to the personal normal precepts of an individual. a people--------. MANAGERIAL ETHICS: The term ‘ethics’ refers to value-oriented decisions and behaviour. or legal ethics are used to indicate the particular area of application. The word ethics comes from the Greek root. corporate ethics. medical ethics. Ethics is concerned with what is right and what is wrong is human behaviour. meaning character. But to have meaning. a community. Some people subscribe to a utilitarian reference in determining what is wrong and what is right. 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. standards. the ethics involved in each area must still refer to the value-oriented decisions and behaviour of individuals. It is normative and prescriptive.
In the final analyses. we have great difficulty in resolving the problems caused by questionable acts such as paying bribes or similar actions unless a law is violated. business ethics are concerned with microethics (relating to daily operating decisions with limited social impact). a pharmaceutical house that makes false claims about its comd remedies. Within this frame of reference. there is no way to enforce them. increased poverty and like would be viewed as socially irresponsible---as not fulfilling its responsibility to society. Whereas the physician’s actions are “ethical” if the patient’s interests are served. the industrialist who dumps pollutants into a stream-all behaves in an ethically irresponsible way. The executive who lies about a competitor’s product.ETHICS AND SOCIAL RESPONSIBILITIES: The term ‘social responsibility’ conveys the moral conduct that relates to such broad issues as environmental pollution. the legal system also becomes the ethical system and where higher standards of behaviour than those required by law are desired. However this distinction is not even followed in practice. The most responsible way to distinguish business ethics from social responsibility is in terms of a decision’s implications for society as a whole. Established medical and legal associations have the legitimate authority to enforce standards of behaviour. Accordingly. 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. but this is not a useful distinction. discrimination. poverty. the manufacturer who markets a highly inflammable article of clothing. unemployment and inflation. In management. There are four ways to establish acceptable standards of behaviour. The first is the establishment of minimum standards of behaviour by law. Therefore. The term ‘ethics’ is used to convey both ‘microethics’ and ‘macroethics’. Some people feel that social responsibility is linked to organisation and ethics to individuals. decisions are made by people and therefore. or a food company house TV ads promote substandard food items are socially irresponsible. The physician and lawyer understand clearly that their responsibility is to the patient or the client. employees and customers so that the “client group” is often impossible to identify and isolate. An automobile manufacturer who produces cars with faulty brakes. individual managers at some level must assume responsibility for every corporate decision. the manager enjoys no such security. 26 . unemployment. an organization whose practices contribute to inflation. The manager is torn between the interests of owners. There is no comparable management organisation that possessed the right to enforce ethical standards. But if law dictates ethical behaviour. social responsibility is concerned with macroethics relating to decision with broad implications for a large segment of society.
an attempt should be made to develop accepted code of ethics to guide managerial action. But how to enforce the standards and make allowances for organizational and environmental differences is the main problem. This option would. law. management associations have attempted this approach. long-range in character. Any move n this direction would be. engineering and accounting and establish a professional society to enforce codes of behaviour for the managers. and so on. This idea has a great deal of support and shortterm promise. One final option is the development of individual organizational code of behaviour. however. require a new type of management organisation with mandatory membership. But the individual organizational codes do not provide for uniform standards required of business. The third approach is to follow the lead of medicine. Nothing approaching this presently exists. In India and other countries.the true meaning of personal morality. Secondly. at best. individual responsibility and free choice is lost. 27 . professional certification.
All these thinkers were dissatisfied. It may be noted that scientific management group emphasized efficiency of lower levels of organisation. 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. It was Henri Fayol who showed concern for efficiency at the higher levels for the first time. 5. That is why. F. with the organizational practices of their time. 3. For instance. in one way or the other. and Max Weber. In this theory. working in the organisation efficient. Taylor’s scientific management has been referred to as ‘machine theory’. 6. fixing everybody’s work for the day and functional formanship.W. Classical (Traditional) approach: 2.EVOLUTION OF MANAGEMENT THOUGHT: 1. we shall discuss the ideas of several contributors such as Taylor. Taylor emphasized on division of labour. Organisation is treated like a machine and so making each individual. 4. Features: 28 . The classical organisation theorists dealt almost exclusively with the anatomy of formal 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. Luther Gulick. Fayol. can increase efficiency.
The relationship between workers and management is established through formal communications. This approach to the organisation is the embodiment of the extra pair of hands concept. defined tasks and accountability and formalized procedures and practices to minimize conflict between them. g. c. The worker is essentially an ‘economic man’ who can be motivated basically by economic rewards. having no interaction with the environment. Several researches in human behaviour have contradicted this assumption. 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. psychological and motivational aspects of human behaviour. Non-monetary factors like better status and job enrichment can also motivate the workers. d. b. informal groups and inter-organisational conflicts in the formal structure appears to be neglected by the classical writers. This assumption of classical writhers led the workers to frustration. conflict and failure and thus made ‘man’ subordinate to the organisation. (c) Inadequate emphasis on human beings: the interplay of individual personality. (e) Hierarchical structure: the classical theory is based upon the hierarchical structure that establishes the authority relationship between individuals in an 29 . classical theory assumes man to be relatively homogenous and relatively unmodifiable. In designing the hob and in picking the extra pair of hands. (d) Economic rewards as main motivators: the assumption that people at work can be motivated solely through economic rewards is also wrong. which has interaction with the environment. This assumption is totally unrealistic. Money is considered the main motivator under this theory.The classical theory is more or less mechanical in nature as is revealed by its following features: a. that is. Stability of the employees-stability in the sense of minimizing changes within the employees-is a goal in the organisation. Classical organisation theory is built around an accounting model. f. Human behaviour is most unpredictable and complex. e. A modern organisation is an open dynamic system. Bennis feels that the focus of classical theory is on ‘organisation without people’. and the integration of the system is achieved though the authority and control of the central mechanism. Classical theory is in its essential character centralized. (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.
(g) Impersonality of relationships between employees. (d) A system of rules covering the rights and duties of employees. have also criticized universality concept.(f) (g) organisation. For example. The classical writers did not explore why certain forms of organisational structure are more effective than others. (e) A definite system of procedures for dealing with the work situation and “rationally” coordinating activities. This suggests that the same principles can be applied in: (i) different organisations. It attempted to prescribe the ‘right’ organisational structure. This was a very narrow approach as it concentrated only on line and staff structures. 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. Peter Drucker. Characteristics: (a) A well-defined hierarchy of authority with clear lines of authority and control and responsibility concentrated at the top of the hierarchy. etc. The scope for individual initiative and their contribution to the organisation goal is thus limited. (f) A centralized system of written documents (“the files”) for collecting and summarizing the activities of the organisation. (b) A high degree of specialization. Bureaucracy: According to the name bureaucracy theory was evolved by the German sociologist Max Weber (1864-1920). The empirical researches. however. which are actually contradictory with other principles. 30 . Ernest Dale. It visualizes a machine model of organisation characterized by impersonal control over human beings. (h) Recruitment of managers on the basis of ability and technical knowledge. and (iii) different functions of the same organisation. Over emphasis on universality: classical theorists have claimed that these principles have universal application. (ii) different management levels in the same organisation. (c) A division of work based on functional departmentation. The theory of bureaucracy is based upon hierarchy of authority and web of rules and relations. suggested strict adherence to rules and regulations. suggest that none of the principles has such characteristics. principle of specialization is quite in conflict with the principles of unity of command. Bureaucratic behaviour: Weber’s ‘ideal’ bureaucracy. a major constituent of classical theory. there are many of the principles. Moreover.
Bureaucracy involves excessive paperwork. 2. 6. Competent people may be denied promotion. 3. inflexible structure manned by “robots”. bureaucracy has become an integral feature of modern organisations.W.” was one of the first theories of organisation. The specialization of labour often inhibits effective communication among technical specialists and between higher and lower levels of the organisation. it immediately brings to mind visions of a ponderous. an exaggeration. It is. The procedures are nevertheless valued. Taylor’s scientific management (1856-1916): 31 . Despite its drawbacks. Criticism of bureaucracy: Today when we hear the word “bureaucracy”. It cannot be wished away. The procedures and rules sometimes encourage organisational members to act mechanically rather than exercising initiative and using their inherent creativity. and some centralization was and is clearly better than having no organisation at all. unbending. and inefficiency.The bureaucracy. slowly moving organisation-one steeped in red tape. Promotions in real life can result from “whom one knows” and “how one plays the organisation game” rather from technical ability. It is hard to destroy bureaucracy even if it has outlived its utility. But Weber’s bureaucratic model quickly became synonymous with a rigid. therefore necessary to overcome its negative aspects through proper application of rules and regulations. Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks. and reconciling the individual needs and organisational goals. But like most “ideal” forms of anything it was an extreme. It was a theory. All documents have to be maintained in their draft and original forms. This leads to great wastage of time. meaningless hurdles. Every superior ties to increase the number of his subordinates as if this number is considered a symbol of power and prestige. Having some specialization. Weber hoped that would be used to understand how and why organisations were structured as they were. and the standard against which other organisations would be compared. 5. Personnel in a bureaucracy tend to use their positions and resources to perpetuate self-interests or the interests of their sub-units. or “bureaucratic model. stationery and space. perpetuated and multiplied for their own sake as also to pass the buck. They often breed resistance to change. adequate procedures and rules. 4. F. as every decision must be put in writing. Various grounds of criticism of bureaucracy are as under: 1.
He experimented with machine tools. he joined Bethlehem Steel Company where he introduced scientific management. the main objective of scientific management was to eliminate wastage and increase the all round efficiency in the working of the organisation. 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. Taylor is regarded as the father of scientific management. Taylor conducted a series of experiments over a period of more than two decades. According to him. One of his experiments led to the discovery of high-speed steel. Taylor was a man of strong will and convictions. he experimented in different fields to eliminate wastage of all types. machines and tools which led him to the development of a coordinated system of shop management. Other experiments related to the way men handled materials. He launched a new movement in 1955. Taylor scientific management means managing the affairs of an organisation scientifically in contrast to the rule of thumb approach. Taylor’s principles of management: Taylor developed a number of principles of scientific management. Thirdly the best way of doing the work and a last maintaining standard working conditions and providing standard tools and equipments. he wanted to apply scientific reasoning to management.W. He is regarded as the father of scientific management. Science. That is why. it may be pointed out that the last two works were combined in one book entitled ‘scientific management’ in 1947 by Harper and Brothers. After leaving Midvale Steel Works. 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. we should think before doing. U.A. increase the efficiency of workers and provide for functional management. 32 . speed metals and the like. 1. In short.S. He was the first person who insisted on the introduction of scientific methods in management. which is known as ‘scientific management’. Taylor presented his first paper entitled “Shop management” was published in 1903. He was highly opposed by the management and the workers and his services were terminated unceremoniously in 1901. 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. which made him very popular. For this purpose first normal time required to perform a job should be determined. He was born in 1856 in Philadelphia. Secondly fair days work of the workman be determined. 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. it focused attention on his philosophy on management.F.
5. marketing. So selection should be based on tests and interviews in specified field. Taylor and his associated concentrated on physical and economic needs 33 . Criticism of scientific management: Taylor’s work was criticised on the following grounds: 1. 5. E. He ignored certain other essential aspects of management like finance. 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. 3. 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. 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. Close co-operation between workers and management (cooperation. 3. 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.2. 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. But this is not feasible in practice as it violates the principle of unity of command. training be given if required and their capabilities should be developed to the maximum. 6.g. which they have performed. training of the workers: this principle suggests that skills and experience of the workers must be properly matched with the jobs. 4. 2. It was argued that the principles of scientific management as advocated by Taylor were confined mostly to production management. 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. 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. 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. Scientific management is based on the assumption that people are motivated by material gains. Taylor advocated the concept of functional foremanship to bring about specialization in the organisation. Scientific selection. 4. accounting and personnel.
Comparatively. Scientific management has thus been described as a theory of industrial engineering. 34 . as workers have to carry out the instructions of their functional basis. It focused attention completely on efficiency at the shop floor. It creates a lot of physical and mental strain on them. wages and working conditions are determined on scientific bases. 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. Exploitation: workers are not given their due shares in the gains due to increased productivity of the enterprise. Later experience has revealed that financial gain is not the only thing that matters. 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. Loss of workers skill and initiative: he workers had to work according to the instructions of the foreman. participation and recognition. Increase in work speed: in scientific management the workers are supposed to work with more speed. Workers also want job satisfaction. due to loss of workers initiative it results into lower productivity. They further allege and too much of standardization. It cuts the roots of trade union movement. 10. without much regard for their health and safety. which affects their health. Scientific management may lead to accuracy.6. As a consequence management became the study of shop management while the more general aspects were overlooked. 9. a prerequisite for scientific term. Lack of employment opportunities: more work by lesser worker thus reduces the chance of more employment. OR 1. Scientific management is quite limited in scope. 2. Weakness of trade unionism: scientific management reduces the role of trade unions as standards of outputs. 7. 8. The differential piecewage divides the worker into efficient and inefficient. There is little scope of bargaining on this ratter. 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. Speeding up of workers: workers feel that scientific management is nothing but a device to force workers to a greater speed. Lack of initiative: no chance is left to show their ability only a mechanized process of work is followed. 12. 11. This leads to loss of initiative from the workers and they cannot suggest better method of work. and over-looked the social and ego needs of people. 13.
thereby. 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. 4. Monotony: under this function of planning is separated from that of doing. Unsuitable for small-scale unit: some employers are of the opinion that scientific management is only suitable for large-scale units. weights and other measures should be fixed. The workers have to follow the instruction of the bosses without thinking on the part of the workers. 6. standard tools and equipments should be provided to the workers. 35 . 4. Standardization of work: according to this technique standards should be fixed at every level. Standard time required performing a unit of job and standard working hours of a fair day. E. Every worker is expected to perform his small part of a job due to specialization. E. increases the hourly or daily output per worker. This makes the work monotonous and worker lends to lose interest in his job.3. So that the jobs can be performed efficiently. Standard performance of machines in a standard time. Small-scale units cannot afford to introduce the scheme of scientific management. efficient workers get more wages as compared to the inefficient ones due to the differental wage incentive scheme. Unemployment: Scientific management reduces the number of processes and motions of workers. 3. Undemocratic in nature: workers object that scientific management is undemocratic in nature as it gives absolute control over workers to the functional bosses. Fatigue study: according to this technique management should determined the amount and frequency of rest intervals in completing a task. quality. So this concept is opposite of the principle of unity of command. 2. But by rest he will regain stamina. 7. Functional foremanship involves supervision of a worker by several specialist foremen. Simplification will certainly improve the efficiency resulting more production and reduction in cost and wastages. increases their efficiency by standardization and decision of labour. Techniques or elements of scientific management: 1.g. Discrimination between workers: under this. 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. Standard working conditions are provided at work place. 8. Functional foremanship: Taylor believed that a single foreman might not be competent to supervise all functional matters. it creates unemployment by requiring lesser number of workers. Standard. 5. size.g. 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. 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.
3. shoes may be manufactured manually or by machines. Fayol began by dividing all industrial activities into six groups: Technical. He joined a French mining company in 1860 as an engineer and rise to the position of its managing director 1888. On the other hand management also should have no concept that the workers have a tendency of miss use of tools and equipments. Motion study: motion study is a technique. 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. 7. Time study: time study is a technique. which ever costs less be adopted. 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”. 6. which will further reduce the fatigue resulting improvement in efficiency. So the organisation should try to find out the best way to perform the task. which was translated into English in 1929 under the title “general and industrial management”. “administration industrial general” in French in 1916. Security. He gives a lot of principles of management which are explained below: 36 . 1. Through. Administrative theory: Henri Fayol was a French industrialist. resulting wastages. his long practical experience Fayol developed a general theory of management.g. Purpose of time study is to determine standard time required to perform a specified job and so fair days work/workman. 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. 9. which is used to measure/determine the time that may be taken by workmen of average skills/ability to perform a job/task. Method study: there may be various methods to perform a job with different cost requirements. Accounting. Financial. He published a book. 2. Micro chronometer is the tool of study. which involves close observation of movements of body and limps required to perform a job. 6. Time study is conducted with the help of stopwatch. 4. 8. E. 5.5. Mental revolution: working of the subordinate and superior is based on whether they are mentally prepare for doing the job or not. Its purpose is to determine the best way of doing a job by eliminating the wasteful motion. and Managerial. Commercial.
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. Division of labour: division of labour means dividing the work among members of organisations. 10.1. a subordinate should receive orders and be accountable to one and only one superior. Stability of tenure of personnel: this principle stresses on the stability of terms of employee on the job and in the organisation. Unity of command: according to this principle. In other words. Unity of direction: efforts of all the members of the organisation should be directed towards common goals. means obligation with respect to the performance of functions and achieving goals. Therefore the avoid the delays Fayol suggested the concept of “gang plank”. and placement of people called social order. 7. 2. 3. 11. individuals should give up their personal interest in the interest of the enterprise. 4. No employees therefore. Employees should not be moved from their 37 . Order: this principle is important to make the best use of personal and to avoid unnecessary delay in work. Each manager is superior to the manager below him but he is also subordinate to his own superior. This principle ensures “unity of action. Fair remuneration to employees: remuneration of employees should be fair and reasonable wages should be determined on the basis work assigned cost of living. It leads to specialization. sharing authority downwards leads to decentralization Fayol says that an organisation should strive to achieve a balance between centralisation and decentralization. and financial position of the business. Some times orders. Scalar chain: it includes the chain of superiors from the top to the lowest rank in management. Centralisation and decentralization: when top management retains most of the decision making authority. 12. 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. and coordination”. But each one of them must inform to his own superior. 6. complain got delate. It increases the efficiency of individual employee. The principle is concerned with arrangement of things. According to which two employees at the same level can communicate each other directly. 8. 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. Discipline: discipline in the context of management means obedience that is complying with rules and regulations of the organisation. directions. suggestion. 9. Responsibility on the other hand. should be asked to receive orders and instructions from more than one superior. There must be parity between authority and responsibility. Subordination of individual interest to general interest: the interest of the organisation must precedence over the interest of individuals. While communicating because of the strict compliance of scalar chain. 5. which is called material orders. Parity of authority and responsibility: authority and responsibility are two sides of same coin. is called centralisation.
Taylor looked at management from the supervisory viewpoint and tried to improve efficiency at the operating level. 14. Fir wages recognisation of work. Level of Taylor gave importance to the Fayol gave importance to management operating level. This will create initiative and enforce efficiency. the top level. management and moved downward. study etc. 5. Purpose To increase the productivity of To develop general theory (contributio workers by eliminating the of administration. personal experiences. incentives and dimensions provided to the employees help in reduction of absenteeism and frequent turnover. time and motion adopting certain principles. Initiative: the employees at all levels should be given some freedom to adopt techniques and methods to accomplish their tasks. 2. Taylor called his philosophy scientific ‘management’ while Fayol described his approach as “general theory of administration”. 2. On the other hand. comparatively flexible. 3. Sr. Fayol analysed management from the angle of top management downward. Group efforts are more effective than the total of individual’s efforts. 6. It increases zeal and belongingness. with emphasis on coordination. Focus Its focus is increasing Its focus is to improve over productivity by way of works all administration by simplification. 3. He. and provides efficiency teamwork and loyalty. had a broader vision and a wider perspective than Taylor. therefore. Thus this principle. no. n) wastes.13. Taylor focused his attention on factory management and his principles are directly applicable at the shop floor. Rigidity Taylor’s principles are Fayol’s principles are comparatively rigid. Esprit de corps: these French words are the synonyms of English proverb “union is strength”. 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. 1. OR 4. But Fayol concentrated on the functions of managers and on the 38 . Results Its results are based on Its results are based on scientific observation. therefore emphasis the need for team works. 1. positions frequently. He moved upwards while formulating his theory.
HUMAN RELATIONS APPROACH: This theory was given by GEORGE ELTON MAYO (1880-1949). The aims of Taylor were to improve productivity of labour and to eliminate all types of waste through standardization of work and tools. 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. rest pauses. The findings of Bank wiring experiment included: (a) Each individual was restricting output. working conditions. they developed a sense of belonging and responsibility. which affected productivity. These experiments revealed that there was something more than illumination. During the course of experiment a series of changes were introduced such as piecework. 4. But Fayol tried to develop universal truths or principles from personal experiences. other group was placed in a different room where the light was deem. As there was freedom of work. Taylor developed techniques of management through scientific observation and measurement of workers operations. 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. (b) The group had its own 39 . The group was restricting the output of individual worker through various forms of social pressure. These experiments may be classified into four stages: 1. The hypothesis was that each worker would produce mare. He also stressed upon the need for teaching the theory and practice of management. production increased in both the rooms. 2. general principles of management. which could be equally applied to all spheres of human activity. Fourteen workers constituted the work group on piecework basis. Relay Assembly Test Room Experiment: in this a group of six female workers was asked to work in a separate room. (c) Workers are influenced in their demands by experiences both inside and outside the factory. supervision and the company. Illumination experiments: workers were divided into two groups. from 1927-1932. The researchers conclude that the productivity increased due to a change in the girl’s attitudes towards work and their groups. Fayol attempted to develop a universal theory of management. He and his team eared out the famous Hawthorne Experiments. 3. One group was placed in a room where lighting remains constant. However. shorter working hours and least rest hours. 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.4. 5. the result was different. these experiments were conducted in the Hawthorne plant of western electric company in Chicago (USA). Contrary to the hypothesis of scientific management.
which he supposed to be incharge. feelings. Man’s approach is not always rational. Morale and productivity go hand in hand in an organisation. (c) Individual output remained fairly constant over a period of time. . human motivation and so on. Employees in any organisation get satisfaction not by economic incentives but by the satisfaction of many other social and psychological wants. the workers often do not act or react as individuals but as members of groups. The group plays an important role in determining the attitudes and performance of individual workers. 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. In an organisation. 3. 4. In an admittedly radical criticism. 2. 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. therefore. Management must aim at developing social and leadership skills in addition to technical skill. Conclusions of Human Relation Approach: 1. leadership skills. There is an emergence of informal leadership as against formal leadership and that sets and enforces group norms. 8. The most serious criticism made of the Hawthorne studies related to the research methodology employed. 6. and criticism of the Hawthorne began to arise. which yields results. Man is diversely motivated and socio-psychological factors act as important motivators. The business organisation is a social system. 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. but not the sole motivator of human behaviour. Mayo and his associates focused their attention on interpersonal relations. 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. group dynamics. At the workplace.“unofficial” standards of performance. For example. Money is only one of the motivators. 40 7. 2. continued for an adequate theory. most of the human relations theory and practice are based on a relatively few observations of some small samples of human beings at work. Criticism of Human Relations Approach: 1. (d) Departmental records were distorted due to differences between actual and reported output or between standard and reported working time. The search. 9. it is ultimately cooperative attitude and not the mere command. He may behave irrationally as far as rewards from the job are concerned. 5. desires and so on.
Comparison of Scientific management and Human Relations Approach: Sr. 6. 3. The human relations approach lacks adequate focus on work. 1. Human Relations Approach Propounded by Elton Mayo. 4. It puts all the emphasis on interpersonal relations and on the informal group. Focused on the study of individuals. It is assumed that all organisational problems are amenable to solutions through human relations. Human relations approach represents neo-classical theory of organisation. The main concepts are job satisfaction. No. Scientific management Propounded by F. Originated from the Hawthorne experiments conducted by the psychologists and sociologists. scientific selection and training of people and mental revolution. But in practice. his needs and behaviour. 2. 4. groups may create problems and collective decision-making may not be possible. Suggested human relations as a method of achieving higher productivity. It tends to overemphasize the psychological aspects at the cost of the structural and technical aspects. 5. Scientific management is a part of classical theory of organisation. Suggested an engineering approach to management problems. It discarded the engineering approach.3. Focused on the study of the productivity problems of industry.W. It applied scientific method. 5. Originated from the experiments of Taylor in dealing with the problems of factories. BEHAVIOURAL SCIENCE APPROACH: 41 . motivation and employee morale. This assumption does not hold good in practice. Taylor. The human relations approach overemphasizes the group and group decision-making. The main concepts are scientific task setting.
Behavioural approach started in 1930. Self-fulfillment: it is the need to fulfill what a person considers to be his real mission of life. achievement. Classification of human needs by Maslow as under: 1. Interdisciplinary and multi-dimensional approach to worker behaviour organisation behaviour involves the study of the attitudes. group dynamics) that influence employee performance. The behavioral approach focuses on the psychological and sociological processes (attitude. It respects a more. leading etc. fire. shelter etc. Workers desisted the formal and impersonal approach of classical writers. prestige etc. Ego or esteem needs: these are the needs derived from recognition status. clothing. belonging or association with family. This gave rise to the Behavioural approach. he is a complex individual. 3. 5. (c) It discussed the psychological variables like motivations. the behavioral approach focuses on the workers in these jobs. (b) The role and contribution of organisation behaviour in workers. Maslow is of the opinion that these needs have a hierarchy and are satisfied one by one. When first needs are satisfied then person moves to second---------so on.1. Two branches contributed to the Behavioural approach. It says that: (a) Man is not a social individual. affection. Physiological needs: these needs are related to the survival and maintenance of life. friends and other social groups. 2. This led to the development of field of organisational behaviour. security against unemployment etc. (d) Man is a self-actualizing being. Contributions of Behavioural science approach: The behavioural science approach is concerned with the social and psychological aspects of human behaviour in organisation. 2. Development of organisational behaviour: pioneers of the human relation movement stressed inter-personal relations and neglected the group behaviour patterns. 4. Human relations movements: Hawthorne expressed it. motivations. While the classical approach focuses on the job of workers. accident. Social needs: these needs include need for love. These include food. but certain ideas were extended and others 42 . Safety needs: these consist of safety against murder. behaviour patterns and performance of individuals and group in an organisational setting. power. Many of the conclusions of the Howthorne studies were reaffirmed by the subsequent research studies.
It is for the managers to identify and provide necessary conditions for the human potential to be used in the service of the organisation. they react differently to the same situation. The manager’s attitude towards human behaviour should be positive. which are often resisted by employees.highlighted by the behavourial scientists. It has enabled organisations to formulate programmes to more efficiently train workers and managers. 4. Changes in technology and methods of work. people must fill these roles. MODERN APPROACH: (QUANTITATIVE OR SCIENCE OR MATHEMATICAL APPROACH) 43 . 2. 5. Informal leadership. Thus. But he will readily do so if the group decides to change its behaviour. individuals belonging to that group will resist change more strongly. 1. can be brought about more easily by involving the employees in planning and designing the jobs. With work standards laid down by the group. People working in an organisation have their needs and goals. The behavioural scientists have shown how human beings bring to their task aspects of behaviour. 3. and it has effects in numerous other areas of practical significance. rather than the formal authority of supervisor. Management should achieve fusion between organisational goals and human needs. Insights evolving from that understanding have been used to design work situations that encourage increased productivity. 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. Some of the important elements of the behavourial science approach are highlighted below. A person may be inclined to resist pressures to change his behaviour as an individual. it is individuals and groups with which a manager is concerned and while organisational roles are designed to accomplish group purposes. perception and value systems. which the effective manager should profitably understand. If the subordinates are encouraged to participate in establishing the goals. After all. is more important for setting and enforcing group standards of performance. there will be positive effect on their attitude towards work. Therefore. By nature most people enjoy work and are motivated by self-control and selfdevelopment. which may differ from the organisation’s needs and goals. Individual behaviour is closely linked with the behaviour of the group to which he belongs. As a leader (manger) may be more effective and acceptable to the subordinates if he adopts the democratic style of leadership. Individuals differ in terms of their attitudes.
schedules and deadlines etc. It utilizes mathematical symbols and relationships. The management science approach was evolved after the Second World War. particularly in decision-making or complex problems. 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. The management science approach differs from the classical and behavioral approaches in several ways. 44 . It involves the application of sophisticated quantitative/mathematical techniques for solving managerial problem. simulation and model buildings are used to find out solution to managerial problems. Mathematical modes can be developed by quantifying various variables of the problems. 2. Mathematical and statistical tools are now applied in the field of management. The quantitative school of management is also called operations research (OR) management science. research. 5. like cost reduction return on investment. game theory. 1. Mathematical tools. Management is concerned with problem solving and must use mathematical tools to solve 6. them. operations.The quantitative or mathematical approach to management developed in the 1950’s. Mathematical models: a model is a simplified representation of a real life situation. simulation and probability. 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. It offered systematic analysis and solutions to many complex problems faced by management in the real world. 3. 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. Together. 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. with these quantitative decisions making tools are called ‘operations research’. Therefore management information system and other technique should be used for making rational decisions. 4. Mathematical symbols can be used to describe managerial problems. a manager can test different values of each variable until an acceptable solution is found. The quality of managerial decisions determines organisational efficiency. queing. 8. More commonly used OR techniques are linear programming. 7. Its distinguishing features are given below.
5. and R. directing and controlling. 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. etc.SYSTEMS (MODERN) APPROACH: Systems approach to management developed after 1950.E. Features: An organisation consists of many sub-systems. Feedback and Environment. 45 1. The sub-parts should be studied in their enter-relationships rather than in isolation from each other. It emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. Kast. It transforms these inputs and returns the output back into the environment in the form of goods and services. Information is an important part of the system because an organisation must act and interact with its environment. It took where management process school left off in attempting to unify management theory. Many pioneers during as E. 4. . These elements are arranged orderly according to some scheme such that the is more than the sum of the parts. 2. A system is a set of inter-connected elements or component parts to achieve certain goals. 4.). 2. An organsiation is a system consisting of many interrelated and interdependent parts or sub-systems. As a system an organisation draws inputs (energy. It is based on system analysis. It attempts to identify the nature of relationships of various parts of the system. An organisation as a system has five basic parts: Input. Information. 5. The organisation is responsive to environmental effect. materials. Process. which separates it from other systems. It is vulnerable is the changes in environment. AK Ria. It determines which parts are internal and which parts are external. Output.L Trist. All the sub-systems are mutually related to each other. 3. The organisation provides a boundary. The attention should be given so overall effectiveness of the system rather than effectiveness of any sub-system if isolation. It forces the manager to look upon his business as an open adaptive system. F. From its environment. 3. An organisation is viewed by the modern authors as an op0en system. 6.A Johnsm have made significant contributions to this approach. organisation. 7. Systems approach to management provides a conceptual basis as well as guidelines for establishing a more efficient system for planning. 1.
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 process. 11. 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. Management is multidisciplinary as it draws and integrates knowledge from various disciplines. and systems approaches to management did not integrate the environment. 9.8. Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with the issue. Every system is a part of a super system. Management is expected to regulate and adjust the system to secure better performance. The main determinants of a contingency are related to the external and internal environment of an organisation. the behavioural theorist usually advocates participative goal setting for all superior-subordinate pairs. It is also a dynamic system ass the equilibrium in it is always changing. the quantitative experts generally feel that linear programming can be used under all conditions. 46 . There is no one best approach for all situations. quantitative. and the practitioners accuse the theorists of being unrealistic. and the system advocates tend to emphasize the need for computerized information flows in all situations. 10. 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. For example the process theorists often assumes that strategic planning applies to all situations. Open system: continually interacts with its environment. There is no one best approach to management and it all depends on the situation. behavioural. managerial action is contingent upon external environment. The contingency approach does incorporate the environment and attempts to bridge this existing theory-practice gap. Organisation is an open system and it interacts with its environment. The often assumed that their concepts and techniques have universal applicability. The basic idea of this approach is that number management technique or theory is appropriate in all situations. In other words. The theorists accuse practitioners of not applying the technique properly. All living systems are open system. 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. 2. Systems are of two types: Closed system: if closed system has no interaction with the outside world.
4. task constraints. 3. The systems approach takes a broader view of organisational variables and employs a comprehensive model of human beings. 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. One needs to adapt himself to the circumstances. But they have pointed out that the systems approach does not adequately spell out the precise relationship between organisation and its environment. The manager should use systems and other approaches under the framework of contingency approach. Internal environment: technological-constraints. 1. It is a kind of “if” “then” approach. management concepts and techniques and the contingent relationship between them. It takes into account the full range of human needs and motives. On the other hand. with the purpose of developing a practical answer to the question at hand.both analytical and situational. It dispels the universal validity of principles. They should be treated as complementary to each other. It is too abstract and difficult to apply in practice. 8. social. technology and political factors. There is no best way of doing anything. 2. Superiority of contingency approach: Clear-cut emergence of contingency approach was noticed after the popularization of systems approach. External environment: economic. Management policies and procedures should respond to environment. But both these viewpoints are not mutually exclusive. Systems approach Contingency approach 47 . Managers should understand that there is no best way of managing. The contingency theorists accept open adaptive nature of the organisation and the interdependency between various sub-systems of the organisation. contingency approach is concerned mainly with the structural adaptation of organisation to the task environment. people constraints. They have tried to modify and operationalise the system framework. There are three major elements of the overall conceptual framework for contingency management. 7. Management is entirely situational. COMPARISON OF SYSTEMS APPROACH AND CONTIGENCY APPROACH: Sr. the environment. no. 5. 6. It is a practically suited.
open system. managerial appraisal. cultural setting are not considered. patterns of departmentation. 7. and mathematical analysis and practices. 6. Main focus on internal environment Main focus on the external of the system. pragmatic and organisations at an abstract. action focused approach.a unique entity. similarities and differences. group behaviour and cooperative systems. 3. organisation to establish patterns of homeostasis. i. communication. decision-making. 4. level. principles of management. At the same time. 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. 5. Treats all organisations alike. Operational management has a central core of knowledge not found elsewhere. This approach recognizes that there is a central core of knowledge about managing which exists in managements such as line and staff. Many other pertinent elements of knowledge are derived from other fields such as application of systems theory.Rejects the universality of principles. Appears to be neutral and non. dynamic equilibrium. A way of thinking about A down-to-earth. and its socio. synergy. motivation and leadership. organisational design and managerial style.1. which are especially useful for managers. Suggests deterministic solutions to Suggests probable solutions to management problems. It also draws from other fields of knowledge and adopts within it those parts of these fields. span of management.e. Size Each organisation is to be studied as of the organisation. what managers do. the approach recognizes that the actual problems 48 . 2. management problems. analyzing and solving problems. committal on the universality of no one best way of managing. OEPRATIONAL APPROACH: Koontz and O’Donnell suggest the operational approach to management and in doing so. and various managerial control techniques. Fit entropy and equi-potentiality are its between approach and situation is a main features.. Suggests a comparative analysis of system boundary. must. Input-output process. Provides Provides a global theoretical model operational tools and techniques for for understanding organisation. they have attempted to draw together the pertinent knowledge of management by relating it to the managerial job. environment of the system. Lays emphasis on the Identifies the nature of interdencies interdependencies and interactions and the impact of environment on systems and sub-systems.
49 .managers face and the environment in which they operate may vary between enterprises and levels. It may also be called eclectic process school of management.Terry. 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.R. and it also recognizes that application of science by a perceptive practioner must take this into account in designing practical problem-solutions. The operational approach is quite similar to the modified management process approach advocated by G. featuring the basic framework of the process approach modified by certain theories from other appropriate schools of management thought.
at specified cost. 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. It helps to bridge the gap from where we are. and foresight and sound judgment. It is a process of thinking before doing. It is the process of determining a course of action. bring about. imagination. to where we want to go. extent. so as to achieve the desired results. it requires the conscious determination of courses of action and the basing of decisions on purpose.PLANNING AND DECISION MAKING: Planning: Planning is the process of deciding in advance what is to be done. “planning is an intellectually demanding process. in a specified period of time. exploit. Accounting to Koontz. Planning is a process. It makes it possible for things to occur which would not otherwise happen. “To plan is to produce a scheme for future action. Planning is a systematic attempt to decide a particular course of action for the future. 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. who is to do it. speed and effects of change. knowledge and considered estimates. O’Donnell and weihrich. It is deliberate attempt to influence. remembering alwas that change (like decision) in any one sector will in the same way affect other sectors”. which involves anticipation of future course of events and deciding the best course of action. how it is to be done and when it is to be done. direction. to bring about specified results. It involves determinations of goals and the activities required to be performed to achieve the goals. and controls the nature. Thus. 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. It consists: 50 . it leads to determination of objectives of the group activity and the steps necessary to achieve them. It may even attempt deliberately to create change.
Therefore.1. marketing.e. Forward looking: planning is never done for past but is done for the future to achieve certain objective. So the management should make continuous efforts to minimize the cost of wastage and improving the efficiency by use of latest change in technology. 6. Overall planning is deciding that in present. 1. 4. 2. Efficiency of operations: planning is made with the objective of raising efficiency of operations but it is not necessary that efficiency will raised. directing and controlling. 3. 7. It provides a base for other managerial functions like organizing. what is to do in future. in other words. Planning is a primary function: planning is the basis or foundation of the management process. Primacy (basic function) of planning: it means planning is the basic function of all other managerial functions. 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. if may or may not. i. to be adopted. So planning relates to creative thinking for the solution of various problems. 51 . profession etc. 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. 2. 3. staffing. whether it is of large scale or small scale and in all the department of organisation like purchase. production. 4. So flexibility will give a chance to make changes as per future requirements. Involving choice (alternative): planning can be when there are two or more alternatives and the planner can make a choice for the best. Pervasiveness: planning is required in all sectors. Planning is based on estimated future trends of social. 9. 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. business. finance department etc. Flexible: there must be flexibility in planning. because plans are always based on future. industry. which is uncertain. 5. 5. it is said that planning is thinking before doing. however nature of planning differs from one department to another. We can say that structure of all other functions depends on planning.e. Continuous process: planning is an ongoing process. economic and technological changes because it has to tackle the future requirements. Moreover changes take place in business environment and regular plans are made to face such changes. 8. All other functions of management are designed its attain the goals set under planning. in the absence of choice there will be no planning because then there is a single way of doing something i.
If job may be completed by using various alternatives (e. 13. manually or by machines) and the best alternative is decided by the management. “plans forecast which actions will tend towards the ultimate objective…Managerial planning seeks to achieve a consistent. and controlling are designed to support the accomplishment of enterprise objectives. E. As Billy E. when put into action. 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. brings about the achievement of the objectives with the minimum of unsought consequences and with positive gains greater than the costs. 52 3. 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. 14. 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. Planning is a highly skilful intellectual activity: it involves active use of higher mental process like thinking. 12. Planning is the fundamental premise of all management functions: as managerial operations in organizing. Planning is a pervasive function of management: planning is a function performed by all managers. Provides basis of control: under controlling actual performance is compared with the planed performance (target/objective). although the character and breadth of planning will vary with their authority and with the nature of policies and plans outlined by their superiors.g. innovation or creativity. . So planning is the base of controlling process. staffing. etc.10. Goetz said. 15. which is more helpful in achieving the objective. Plans facilitate decision-making: to achieve the objective predetermined under planning. coordinated structure of operations focused on desired ends. leading.g. planning logically precedes the execution of all other managerial functions. 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. before coming of summer session producers started production for the products to be used in summer. 4. business has to take various decisions by considering the available resources.” The effectiveness of planning is measured in terms of what it contributes to the objectives: a plan is efficient if it. Importance of planning: 1. 11.
11. 8. So efficiency of the worker will risen which will further result economy in production. planning also serves as a good training device for future managers. All the activities are directed towards the common goals. Moreover.5. etc. changes in quality. Facilitates control: planning facilitates the managers in performing their function of control. which improves their motivation. he planning may fail if the following limitations. 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. However. 12. Thus. LIMITATIONS OF PLANNING: Planning is an important function of management. It will also help in avoiding duplication of efforts. Facilitates integration: under planning proper directions as per plane are provided to the subordinates. 6. It improves the motivation of workers also because they know clearly what is expected of them. 53 . Planning facilitates control by furnishing standards of control. 7. It creates a forward-looking attitude among the managers. which are essential for the performance of control function. Leads to economy and efficiency: planning clarifies the work and its method of doing. Achieves better coordination: planning secures unity of direction towards the organisational objectives. 10. 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. anticipation of tastes and fashion of people and technological changes. Improves competitive strength: effective planning gives a competitive edge to the enterprise over other enterprises that do not have planning or have ineffective planning. 9. It lays down objectives and standards of performance. Resultantly they all make effort towards the achievement of preplanned objective. there will be better coordination in the organisation. 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. Such co-ordination of sub-ordinates and their departments will certainly help the organisation in achieving its objective. Improves motivation: the effective planning system ensures participation of all managers. Resultantly it reduces confusion and wastage of resources in the form of thinking at the time of doing. This is because planning may involve expansion of capacity. changes in work methods. There is an integrated effort throughout the enterprise.
the plans so produced may prove to be unrealistic. 4. 3. 9. money spent etc. 5.1. 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. is more than that of planning. 7. If the management is not willing to spend on planning. Secondly they do not think beside the plan and performs their activities like a machine without using their psychology. Similarly. 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. 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. but some times there is little benefit from in plan and than it becomes a burden for the institution. 10. if sufficient time is not given to the planning process. Human elements: planning are the results of thinking of human being. 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. If the plan is not useful than the amount or time spent on its formulation is a waste. planning involves costs of gathering and analyzing information and evaluation of various alternatives. 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. Lack of accuracy: planning relates to future and future is always uncertain and so prediction about future is so much difficult. the result may not be good. 6. 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. 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). Costs: formulation of plans involves too much cost which are in the form of time spend. On the other hand over planned target beyond resources cannot be achieved even all effort both are the situation of improper plan. Moreover delay in decision will further delay the action. 54 . 8. Delay in actions: planning requires some time for thinking. 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. But it is also true that. Planning is a time-consuming and costly process: this may delay action if certain cases. 2.
1. goal of an automobile company may be to provide low cost and higher quality of automobiles to the public. E.g. But it should not be forgotten that dynamic managers always look ahead. Goals may be of short term or long term in nature. This attitude makes the planning process ineffective.11. There must be a time frame for the achievement of predetermines objectives. Long-term well being of the enterprise cannot be achieved unless proper planning is done for future.g. 13. External stringencies are very difficult to predict. Sudden breakout of war. They should not always be required to follow the procedures rigidly. government controls. 12. multiple objective increase in profits with other better facilities to the customers and employees. natural havocs and may other factors are beyond the control of management. 55 . 2. E.g. The effectiveness of planning is sometimes limited: because of external factors. 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. 14. the planners must have sufficient discretion and flexibility in the enterprise. which puts limits on planning: It is commonly experienced phenomenon in many organisations. 15. Goals (Target): goal is a desired state of affairs. KINDS/TYPES OF PLANS: The term plan refers to a course of action determined in advance by the management. Overall goals are the collective ends for which the whole organisation makes efforts to achieve. Such persons are psychologically opposed to planning. An organisation may have single objective or multiple objectives. Sometimes. Psychological factors also limit the scope of planning: some people consider present as more important than future because present is less uncertain. which an organisation wants to achieve. Resistance to change is another important factor. Planning is a forward-looking process: the planner must possess the required initiative. which are beyond the control of the planners. they do not think it desirable to bring change. planners themselves do like change and on other occasion. Objectives: objective is the ends towards which activity is aimed. Objectives may differ from one organisation to another. 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. 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. So. They make the execution of plans very difficult. 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. as it will create resistance on the part of the workers. E. single objective— maximization of profits.
management want to expand the size of business by 70% so to implement this programme management must lay down certain policies.e. To ensure that orders are handled in a specific way there must be a procedure. E. Its specifies any best and efficient way of performing the task: . E. policy of setting competitive prices. Rules are a set of instructions to be followed in a particular way.g. 5. promotion. methods of valuation of stockcost or market price. Rules are always in the form of order’s or directions and not in the form of request. Programme: programme refers to the outline of plans of work to be carried out in proper sequence. These are concerned with administrative action and serve a principle for conduct. In business organisations rules are framed regarding recruitment. methods. A primary programme may call for any supporting 56 . finding them to do or not to do. procedures. Policy increase in taking decisions but within limits and so the decision depends on the authority given in the policy. rank of merit and them decision regarding admission. These are predetermining decisions these helps the managers in achieving the objectives. Methods: a method is a prescribed process in which a particular task is performed. There is no discretion in there application.g. Procedures: the procedure is defined as pre-determined se2quence of steps to initiate action and complete the task. which guide the thinking in decision making. which is less. So procedure helps the management to rich its objective. These are generally in writing and are impersonal in nature. which are acceptable by the people. 4. In other words these guidelines (policies) helps the management for taking decision in proper direction to achieve the objective. Moreover there are several methods like method of calculating depreciation. When ever the decisions are within rules the person who has taken decision is safe and secured as he is working as per rules. As per as possible objectives are expressed in miserable quantity and so these provide a path for planning.g. so that with the co-ordination of these we may become successful to implement this programme. Do that the objectives can be achieved. policy of hiring a trained engineer or to promote from within the staff. Rules: rules are specific directions to perform an action or not to perform an action these are the directives to the people in organisation. policy of quick after sale service with in three months from the date of sale. to behave or not to behave in a particular way. Which method will be the basis of nature of business and once selected the method becomes a prescribed manner of performing a job. screening of facts/data’s. Policies: policies are general statements. application in schedule time. Because planning is made for the achievement of any objective. is consider in final accounts. 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. admission procedure in a school i.e. managerial decisions ae taken within the boundaries of rules. rules etc.3. But fixing of schedule of vacations is the procedure. 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. export and import procedure. E. 6. By way of training. 7.g.
employees and other resources. These are the guidelines helping in implementation of plans.8. 3. Budget is a single use plan and can be expressed in respect of finance. No. *Difference between plans and policies* Sr. 1. the programme i. 1. steps to be taken to perform these task. programme of arrangement of trained workers required after expansion and so for the successful implementation behave to make a combination of goals. programme in above. Policies Policy is a narrow concept than plans. 2. policies. tasks. Budget always pertains to future it is prepared in advance and expressed in qualitative financial terms. No. Budget: budget is a statement of exceptive result expressed in numerical term. E. Basis of difference Policy Type of plans Objective 2. this over all process combination is known as programme. rules. so budget is a finance and/or quantitative statement prepare and approved prior to a specified period. *Difference between policy and objectives* Sr. Implementation of plan requires policy guidelines. material time. Policies are determined after plans it is only a part of plan. Policies go on until these Objectives are the ends to are changed and so no achieved by performing 57 .e. procedures. of the organisation are directed. Plans a re helped by the policies to become successful. etc. Basis of difference Plans Scope Help Implementation The term plan is a wider concept that includes policy and several other actions.g. Time limit Policies are standing Objectives are the ends plans/guidelines for the towards which activities achievement objective. programme of making arrangement of finance required for expansion.
7. There will be no organisation without objectives. Objectives refer to the target to be achieved. 3. outcomes. 4.time limit. Basis of existence Purpose Place Formulation An organisation is function without policies. 5. Objectives have higher place than policies. 6. No. 1. 4. The owner or top-level management of the business determines objectives. lower managerial level. *Difference between policy and procedure* Sr. Policies serve as bridge Procedure is a bridge between organisational between activity and its purpose and performance. Scope for change Formulation Bridge Expression Discretion Scope Policies are the guidelines Procedures are the to decision making. 6. middle level and lower level management. It policy there is some Procedure gives no scope for managers discretion in its discretion. guidelines for taking steps to do a job in proper sequence. *Difference between policies and rules* 58 . implementation. Policy is expressed in the Procedure is expressed in form of general statement. It has wider scope. 5. specific stepwise sequence. Policies are formulated at top level. Policies are relatively Procedures are relatively flexible. Basis of difference Policy Guidelines Procedure 2. Policies have lower place than objectives. It has narrow scope. Policies are generally Procedures are generally formulated at top lay down by relatively managerial level. 3. Policies are the guidelines to achieve the objective. activities in a specified period. rigid.
Rules are generally backed by managerial. Methods are backed by knowledge. Methods are formulated on the basis of research and analysis. Methods Methods are meant for efficient performance. 5. Rules These are the most specific statement. 1. Rules relates to behaviour of individuals and groups. Rules are associated directly with control. Rules are formulated on the basis of legal requirement. No. Basis of difference Policy Nature Guidelines Flexibility Discretion It is a general statement in nature. 2. These are rigid and should have no deviation. 2. 3. Methods are not directly associated with control. There is a scope of discretion of management for implementation. Basis of difference Rules Purpose Rules are meant for strict compliance and have a little concern with efficiency. These are guidelines to do and not to do. Method’s deviations does not attract penalty. 1. 6. There is no discretion. there 59 . Policies are guidelines to decision making. 3. for Deviation from rules will attract penalty. it is usual to consider that there are three basic levels of planning. Formulation Penalty deviation Backed by Relationship Associated *Levels of planning* In management theory. No. Methods relates to physical and other task.Sr. *Difference between rules and methods* Sr. though in practice there may be more than three levels of management and to an extent. 4. Policies are flexible in nature. 4.
List of alternatives to achieve the objective: there may be so many ways available with the business to achieve the objective. It is concerned mainly. external environments and corrective measures to face with the environment. 3. It is confined to putting into effect the tactical or departmental plans. The theree levels of planning are discussed below: 1. it is done by middle level managers or departmental heads. which an organisation wants to achieve by way of planning. Considering the merits and demerits of each alternative is also termed as development of premises of each alternative. with long-range planning.g. Setting organisational objectives: planning is total based on the objectives. It is concerned with ‘how’ of planning. It deals with development of resources to the best advantage.will be some overlapping of planning operations. *Steps/Stages of planning* Planning is a process consisting many steps. While making plan and setting objectives management should make analysis of internal resources available with the business and arrangement of external resources. decreasing cost. i. 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 might be called the ‘what’ of planning. Second level planning: also known as tactical planning. which may differ from one plan to another. 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. board of directors or governing body. Top level planning: also known as overall or strategic planning. This is because its attentions are usually devoted to the step-by-step attainment of the organisation’s main objective. 60 . it is the concern of departmental managers and supervisors. Third level planning: also known as operational or activity planning. target of increasing profitability may be achieved by increasing sale. which of these alternatives is beneficial for business be adopted. in fact.e. It encompasses the long-range objectives and policies or organisation and is concerned with corporate results rather than sectional objectives. E. rise in process etc. 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. Top level planning is entirely long-range and inextricably linked with long-term objectives. introducing new product of better technology. not exclusively. But following are the common steps: 1. 2. top level planning is done by the top management. 2.. It is. but its nature is such that the time spans are usually shorter than those of strategic planning.
In the main time management should see whether we are going towards achievement of objective or not. 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. 4. *DICISION MAKING* Decision-making is a process of selection from a set of alternative courses of action. planning of recruitment and training of the man power etc. defining tasks. Formulation of supporting plans: supporting plans are those plans. These should be a periodic review and corrective measures to be taken. In terms of managerial decision-making. 61 1. E. *Features of good plan/policy/procedure* 1. These should be simple and clear. searching for alternatives and developing plans in order to find the best answer fo the decision problem. Managerial decision making process involves establishing of goals. E.3. It is a course of action. 5. it is an act of choice.g. There may be some changes required before reaching the objective. These should be understandable. A decision is a process that takes place prior to the actual performance of a course of action that has been chosen. These should be purposeful and functional. which provides support to the main plan. 6. Follow up: once the plan is put into action it monitoring/supervision is equally important. 3. 2. wherein a manager selects a particular course of action from the available alternatives in a given situation. The essential elements in a decision making process include the following: The decision maker.g. These should be in written form to avoid confusion. 6. 5. if the business wants to produce according to objective there may be many supporting plans like planning of purchase of rawmateiral. which is thought to fulfill the objectives of the decision problem more satisfactorily than others. These should be flexible. 4. which is consciously chosen for achieving a desired result. These should really serve as guidelines to reach the objective. . 8. 7. 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. These should be economic (maximum use at minimum cost). 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.
if a decision is taken after thorough analysis and reasoning and weighing the consequences of various alternatives. there may just be a decision not to decide. It involves a time dimension and a time lag. It is not easy to define the problem. 5.2. So. and The final choice of the alternative. (ii) feasibility of means to the given end. Therefore rationality is the ability to follow a systematic. 2. (iii) consistency. Thus. He should collect all possible information about the problem and then decide whether it will be sufficient 62 . Keeping this in view. It is a human process involving to a great extent the application of intellectual abilities. Steps of decision-making process are given below: 1. thorough approach in decision making. 1. The decision problem. a manager has to identify critical or strategic factor of the problem. Gross suggested three dimensions to determine rationality: (i) the extent to which a given action satisfies human interests. Rationality is the ability to follow systematically. 6. 3. There is a need to define the term rational here. The alternative courses of action. logical. such a decision will be called an objective or rational decision. Diagnosing and defining the problem: the first step in decision-making is to find out the correct problem. *Process/Steps in rational decision making* Effective decision-making process requires a rational choice of a course of action. Before defining a problem. Once the problem is properly defined then it will be easily solved. It involves all actions like defining the problem and probing and analyzing the various alternatives. logical and thorough approach in decision-making process. 3. 5. Analysis of problem: after defining a problem. It always has a purpose. The objectives of the decision maker. Characteristics of decision-making: It is a process of choosing a course of action from among the alternative courses of action. It should be seen what is causing the trouble and what will be its possible solutions. the first important factor is the determination of the problem. 4. A manager may take one decision in a particular set of circumstances and another in a different set of circumstances. The outcomes expected from various alternatives. 4. 6. It is always related to the environment. 7. The environment in which the decision is to be made. It is the end process preceded by deliberation and reasoning. 7. 2. a manager should analyse it. which take place before a final choice is made.
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
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
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.
In order to achieve proper follow up. (iii) If the decision is bad and one follows up soon enough. This information will be very useful in taking the corrective measures and in taking right decisions in the future. (ii) If the decision is bad one. the management should devise an efficient system of feedback information.8. one will know what not to do. Follow up: it is better to check the results after putting the decision into practice. corrective action may still be possible. The reasons for the following up of decision are as follows: (i) if the decision is good one. 66 . the next time. one will know what to do. if faced with the similar problem again.
guidance and direction. Successful leaders are able to influence the behaviour. It is a process of influencing the behaviour of followers by the leader. 4. So leadership is an exercise to influence the behaviour of the followers towards attainment/achievement of specified goals. It involves advice and guidance to achieve some common goals. 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. It is a process of securing willingness to do the job as per guidelines of the leader.*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. 67 . 3. *Features/Elements of leadership* 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 involves existence of a leader and followers. A person is said to have an influence over others when they are willing to carry out his wishes and accept his advice. Leadership is the function of stimulation: leadership is the function of motivating people to strive willingly to attain organisational objectives. attitudes and beliefs of their followers. Leaders are considered successful when they are able to subordinate the individual interests of the employees to the general interests of the organisation. 2. It involves interaction between leader and his followers. 1. Here the person who guides or directs his followers is known as leader.
he shares credit. A manager can be more effective if he is a good leader. Leader acquires powers due to acceptance of his role by his followers. particularly when subordinates are knowledgeable and competent. A good manager recognizes the fact that leadership is a shared function. That means leadership styles should be different under different circumstances. Sometimes individuals fail to recognize 68 . every person in the organisation feels that his operation. workers act enthusiastically to achieve these goals. A leader need not necessarily be a manager. *Importance of leadership* 1. which results in a decreased long-term productivity. *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. at a given point of time and under a specific set of circumstances. the subordinates may accept the autocratic behaviour of the leader while at a different point of time and under a different set of circumstance. When this congruency is achieved. objectives. directing. is vital to the attainment of organisational objectives. it is said that leadership is always particular and not general. Where as a manager acquires powers due to delegation by his superiors. Manager is more than a leader because he performs all the five functions of management (planning. At one point of time. That is why. Leadership gives an experience of helping attain the common objectives: under successful leadership. Force generates counter force. opinion and experience. It happens when the manager feels the importance of individuals. however minor it may be. gives them recognition and tells them about the importance of activities performed by them. Employees must be satisfied with the type of leadership provided: only short-term productivity of employees can be increased by pressure and punishment. Long-term interests of the organisation are best served when managers allow subordinates to influence their behaviour. This approach is not in the long-term interests of the organisation. A good leader shares everything with his followers.3. only participative leadership style may be successful. 5. he shares blame. Helps in guiding and inspiring the employees: leader guides and inspires his subordinates towards higher performance and so helps in achieving the business goals. and controlling) where as a leader performs only leadership functions which is just a part of directing. he shares ideas. Leadership is related to a situation: when we talk of leadership. 4. it is always related to a particular situation. Creates confidence: leader creates confidence among the employees by understanding and handling the situations as per proper requirement. staffing. organizing. 2.
10. A satisfied human resource is always better than unsatisfied. 12. 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. The relationships between them are clearly laid down. Organisation of activities: a good leader divides organisational activities among the employees in a systematic manner. which is acceptable to the subordinates. Acts as a counselor: while taking various decisions by the management. Representation of workers: the leader is a representative of his group. Facilitating change: dynamic leadership is the cornerstone of organisational change. Determination of goals: a leader performs the creative function of laying down goals and policies for the followers. Enhances group efforts: leadership prepares the people at workplace to perform the job with mutual trust co operative and friendly manner. He is available for advice whenever a subordinate faces any problem. He keeps himself informed about the working of the group and shares information with group for the coordination of its efforts. He maintains voluntary cooperation and discipline among followers. He develops good human relations and facilitates interactions between the members of the group. Leaders ensure that managers in organisation should adopt behaviour. 8. So leader is a middleman between manager and worker. 7. leaders of the workers are also invited to act as a counselor of the subordinates. He acts as a guide in interpreting the goals and policies. the job satisfaction of employees also depends on the behaviour of their managers. Achieving coordination: a leader integrates the goals of the individuals with the organisational goals and creates a commonality o interests.3. The leader shapes the thinking and attitudes of the group. 4. By raising willingness leader helps in improving the productivity. 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. Subordinates and the management should make collective efforts and give priority to the achievement of organisational objectives. 14. Providing guidance: a leader guides the subordinates towards the achievement of organisational objectives. Moreover leaders support and encourage the subordinates to meet particular situations. 13. 69 . He takes initiative in all matters of interest to the group and attempts to fulfill the psychological needs of the subordinates. 11. This reduces the chances of conflict between them. 6. 5. their qualities and capabilities than he provides psychological support to the followers by his conduct and expression. Building employees Morale: good leadership is indispensable to high employee morale. 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. 9. Overall these activities improve job satisfaction among the employee.
7. He coaches and advises. 3. He makes the work a game. He solves problems. He depends on his confidence and goodwill. He consults and seeks advice. 5. He engenders fear. 4.*Leadership vs. He depends blames and finds faults. 2. managership* 1. He believes in “We” and “you”. Manager Leader He drives and orders. He fixes blames and funds faults. 70 . He makes the work drudgery. He knows all the answers. He believes in “I”. He inspires enthusiasm. 6.
Therefore. Among other things. the formal leaders become the position-holders only. and assign them to train other. response there off in total is known as communication. 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. is one who possesses organisational authority to direct and control the activities of his subordinates. This gives rise to informal leaders who do not hold any managerial post in the organisation. diagrams. Effective communication is that communication in which the receiver is understood actually what the sender wants to convey. etc. graphs. pictures. opinions and emotions by two or more persons. “George Terry” communication is an exchange of facts. they may go to another leader as far as their reaction is concerned. The members of a work-group may be influenced by one leader while doing their jobs. In such a situation. every manager is not able to provide the kind of leadership desired by his subordinates. But it should be remembered that the trouble they cause reflects the desires of the group. listening and understanding. If they are suppressed. may be adopted to communicate. But as regards their personal problems. Sometimes. ideas. Management often tries to suppress informal leaders. He can issue orders and instructions to his subordinates by virtue of his formal authority in the organisation. *Communication* It is the process of transmitting the messages and receiving the response of that message. on the other hand.*Formal and informal leaders* It has been observed above that a manager should also be a good leader. exchange of ideas/messages. Any method of communication like words—oral or written. They are not able to achieve the voluntary cooperation of the workers in all matters. Since the feedback requires another message to be communicated by the sender to the receiver. seek their advice on technical and human relations problems. In simple words. An informal leader is elected by the management. So communication process become a circular process. he can pall necessary information to them first. “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. A formal leader. informal leaders become more acceptable to the workers as compared to the formal leaders. morale may fall even lower and new informal leaders may step to the fore. It is a continuous process of telling. It is also true that a work-group may have different leaders for different purposes. There are many ways in which a manager can build up good relations with the informal leaders working with him. it is better to work with informal leaders. as in case of a formal leader. 71 . the workers may become more antagonistic to management. But in actual practice.
4. 2. top. Pervasive function: communication is necessary at all levels of management i. Helps in decision making: by providing the required information. horizontally (gang plank) between persons of similar ranks or diagonally between persons at different levels. 4. sender(s) and receiver(s). 5. 5. Communication is not completed unless the receiver of the message has understood the message and has given his response. middle and lower level and also in all the depths of the organisation. are communicated for an effective planning system and so communication facilitates better planning. problems. *Characteristics/features of communication* 1. 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. ‘Noise’ is something. *Advantages/Importance of communication* 1. 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. 2. Moreover clear and accurate information can be communicated at proper time resulting better relations between the two.e. which has disturbed the effective sending and receiving of communication. Continuous process (circular process): it is a continuous process because transmission of messages is going on a continuous process.e. suggestions etc. between superior and subordinate. 3.and in the same form. Information regarding organisational rules: subordinates should be informed by communicating them. quick solution of problems creates satisfaction resulting motivation towards work. 3. Flows in all directions: communication may flow upward and downward. Co-operative process: it is a process of co-operation because two or more persons are required for the exchange of message i. . Facilitates planning: while making plans several ideas. Helps in motivating: communication helps in the process of motivation by sharing of information. Improves better relations among superiors and subordinates: by effective communication misunderstanding between superiors and subordinates can be removed. 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. consultation and discussion of various problems for prompt redressed/solution. Two way process: it involves both sending the message and receiving the response to that message. 7. rules and principles of the organisation and any misunderstanding 72 6.
10. will communicate to the intended receiver or receivers. shaking of head. warming of hand. 4. Message: the next element in the process of communication is message. frown. information. Verbal message is in the form of word language. instructions or guidelines in a close and clear way and removes all confusions. regarding there of must also be clarified. the sender attempts to achieve understanding and a change in the behaviour of the receiver. so it facilitates directing function. problems etc. Sender: according to this model. By initiating the message. written words may be read and gestures may be seen or felt. shareholders. a message may taken any of the two form i.e. The sender of information organizes his ideas into a series of symbols (words. the first element is the source of the communication. govt. The message is the physical form into which the sender encodes the information. The sender has some need. i. This is known as encoding of message. 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). grunt. which. Facilitates directing function: communication makes a link between managers and workforce of the organisation resulting a continuous flow of directions. etc. The message may be in any form that could be experienced and understood by one or more of the senses of the receiver. thought. while non-verbal would be in the form of gestures like wink. suppliers. This will necessarily improve the acceptance of organisational rules. Resulting better understanding. The receiver must be considered while selecting a channel. The person who initiates the communication process in known as sender. The channel is the link that connects th sender and the message. idea or inform which he wants too communicate to some other person to achieve some purpose. *Process/Steps of communication* 1. sight and sound are important communication channels. and society may be provided required information. better efficiency. instructions. Some people respond better to formal letters or communications.8. The mode of transmission is often inseparable from the message.e. converting to communicable codes which will be understood by the receiver of the message. 9. 3. 2. others to the informally spoken words. smile. suggestions. signs. source or communicator. Better public relations: by way of communication customers.). Improves efficiency: an effective communication helps in understanding ideas. Resulting better co-operation and good relations among all these groups. he feels. The channels of communication which are officially recognized by the organisation are known as formal channels. Speech may be heard. etc. orders. Encoding or communication symbol: the next element in the process is that of encoding the information to be transmitted. verbal or non verbal. For communication to be effective the channel used should be appropriate for the 73 .. Thus. Air.
(ii) Receiver’s self-confidence is higher in case of two-way communication. The socio-demographic and physiographic characteristics of the receivers influence in selection of an appropriate channel of communication. Two-way communication is superior to one-way communication in the following respects: (i) Two-way communication is more accurate than one-way communication. For an urgent message. Receiver: the next element in the process of communication is the receiver. radio. electronic mail. the greater success of the probability of expected communication. Feedback: after receiving the message. the receiver will take necessary action and send feedback information to the communicator. so that it becomes more precise and accurate. A model of communication by Wilbur Schramm. message as well as the receiver. A policy statement from the chief executive is an example of one-way communication. the sender may feel embarrassed when the receiver draws his attention to sender’s mistakes and ambiguities. The receiver becomes the sender and feedback goes through the same steps as the original communication. The feedback is optional and may exist in any degree (from minimal to complete) in any given situation. telephone. For instance. the more effective the communication process is likely to be. 74 . Two-way communication takes place when the receiver provides feedback to the sender. telefax. However. telegram. The feedback allows the sender to refine his communication.5. Generally. If the message does not reach the receiver. It is the receiver who receives and tries to understand the message. The communication process is incomplete without the existence of receiver of the message. The greater the overlap or commonality of the receiver’s field of experience and sender. in case of two-way communication. television transmission would be appropriate. early feedback will enable the manager (sender) to know if his instructions have been properly understood and carried out. the person who receives the message is called receiver. One-way communication takes less time than two-way communication. For example. On the other hand. Here the sender communicates without expecting or getting feedback from the receiver. It is affected by the receiver’s past experience. perception. Decoding: decoding is the process by which the receiver’s draws meaning from the symbols encoded by the sender. communication cannot be said to have taken place. 7. feedback is totally absent. in case of one-way communication. It illustrates that an individual with significantly different educational or cultural background ahs to put in greater effort to ensure successful communication. greater the feedback. giving an instruction to a subordinate and receiving it acceptance is an example of two-way communication. as they are permitted to ask questions and seek clarification from the senders. expectations and mutuality of meaning with the sender. Feedback is a reversal of the communication process in which a reaction to the sender’s message is expressed. education. 6. In certain situations one-way communication is more effective to get work from the subordinates.
e. *Difference between formal and informal communication* Sr. The channel also may cerate interference by ‘filtering’. Noise: surrounding the entire spectrum is the noise that affects the accuracy and fidelity of the message communicated. It strictly follows the chain of command. In any case. The sender may not be able to encode the message properly or he may not be properly audible. It is mostly expressed in verbal/oral form. there is so much of noise or interference in the entire process that there is every possibility of the communication being distorted. Formal communication: it refers to the communication which rakes place on the basis of organisational relationship formally established by the management. 1. (b) upward communication. allowing some information to pass through and disallowing others. or comprehend it in a manner not entirely intended by the sender of the message. On the basis of flow or types of formal communication: (a) downward communication. It is developed at its own due to mutual confidence and relations. It may take place among the persons having different positions at different level and chain is not a restriction. (c) horizontal communication.8. (d) diagonal communication. Generally it is used to transmit personal message and do not follow the principle of chain of command. i. Basis difference Meaning of Formal Informal (grapevine) The communication. (b) informal communication. Network of informal communication is also known as grapevine. No. On the basis of relationship: (a) formal communication. The message may get distorted by other sounds in the environment. The receiver may not hear the message. It is used to transmit official messages within or outside the organisation. Informal communication: it refers to the communication which takes place on the basis of informal or social relations among the people in an organisation. *Types of communication OR forms of organisational communication* 1. It can arise at any stage in the communication process. Noise is any factor that disturbs. which Communication which takes 75 . confuses or otherwise interferes with communication. It may be verbal but mostly it is expressed in written form to have a proof. 2.
place independently without following official chain of position. Generally there is personal involvement. 9. 4. 11. 8. 76 . So many levels of management: when the message has go through multiple levels of management. It is mostly expressed in It is mostly expressed in written form. Messages may be distorted as it flows verbally. 10. verbal form. There is a system of flow of formal communication. Source or Source and direction of flow direction can be easily traced. Generally personal messages are transmitted. 5.2. Channel of communicatio n Interpretation Message is correctly of messages interpreted due to written form. Its speed is slow rout through various levels. There is no system for flow of communication. It is not possible to fix responsibility. It happens when information provider is of the view that the information disagrees with in interest. Remorse Due to written form it does not lead to remorse. Generally official messages are transmitted. It travels faster the formal communication. *Barriers to effective communication* 1. Selective reception: when a part of information is blocked by any person in the channel of communication it is termed as selective reception. Chain of command is strictly followed. 7. Personal Generally there is no personal involvement involvement. Due to verbal form it may lead to remorse. Responsibility can be easily fixed. 3. between different persons. Speed Chain of command Fixation of responsibility Nature of messages System of flow Needs served takes place following organisational position established by management. It may serve both organisational and social needs. Chain of command is not followed. It is difficult to traceout source and direction of flow. It happened when chain of command is strictly followed. 6. These levels may become obstacle in flow of communication. 12. In other words only the selected part is further exchanged and remaining is blocked. It serves only organisational needs. 2.
Emotional and psychological barriers: these barriers arise from emotions. 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. 13.g. attitudes and social values of the participants. 9. 4. Specialization barrier: when a department or a person treats him more specialized.3. 5. E. announcement in increase in budget is meant for increase by installing new plan and new technology machines and plant. People may refuse to accept the messages affecting them emotionally. Such lack of organisational facilities is also barrier in effective communication. subordinates bay pass on interpreted (distorted) information to their superiors to please them and do not reveal their mistakes. *Overcoming communication barriers* 1. 7.g. 12. 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. 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. 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. 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). Language barrier: sometimes sender and receiver of message do not understand the same language and in that case messages not communicated. 11. Clarity of information: subordinates should be kept informed on policy that affects them on a regular basis. Status barrier: the difference is status of sender and receiver may also become obstacle to effective communication. modified or lost at different levels before reaching to the last level. Symbolic barriers: sometimes the some word of language/symbol may carry different meaning to different parties as per their traditions. it will result no attention towards other departments/persons. But workers may think that due to increase budget their salary and wages will raise. Moreover if the pronunciation of words by sender is not clear it may became an obstacle. Complex organisational structure: when organisational structure is of complex nature. customs or religion and in that case communication will not be an effective communication. But verbal communication is not possible there. 10. 6. 8. the information may get filtered. E. 77 . 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.
and change another person’s attitude and so on. so that there is effective communication of instructions and suggestions. lies. 6. Creation of proper atmosphere: in particular cases. Two-way communication is also necessary for feedback for the purpose of control. Since the receiver is to accept and carry out 78 . “communication with an awareness of the total physical and human setting in which the information will be received. 3. Principle of understanding the receiver: understanding is the main aim of any communication. Picture the place of work. the atmosphere should be peaceful. Worker should get open doors for any clarification or consideration at all times. Effective channels: management should try to cut the roots of the rumours. there will be no room for rumours. be aware of social climate and customs. programmes and goals of the enterprise. 5. It should not crate confusion and chaos in the organisation. Principle of objective: the communicator must know clearly the purpose of communication before actually transmitting the message. Feedback: communication should be two-way traffic. 3. when and in what manner you would like to be communicated with if you were in the similar environment and position. poor public relations affects the efficiency of the parties to communication. 4. The message must be as clear as possible. Effective listening: the sender must listen to the receiver’s words attentively. Principle of consistency: the message to be communicated should be consistent with plans. give information. policies. when a boss is talking to his subordinate. when required. so that the receiver may also listen to the sender at the same time. Principle of completeness: the message to be communicated must be adequate and complete. as for instance. *Principles of effective communication* 1. The communication must crate proper understanding in the mind of the receiver. is not delayed.2. determine the receptivity and understanding levels of the receivers. Ask what. No ambiguity should creep into it. If the communication channel is well maintained. Thus according to Killian. The message should not be conflicting with previous communications. 4. Principle of clarity: the beginning of all communication is some message. otherwise it will be misunderstood by the receiver. Prompt information: the management should make a practice of passing along the information promptly to everyone concerned so that action. 5. Principle of feedback: this principle calls for communication a two-way process and providing opportunity for suggestion and criticism. There should be some system by which the workers should be able to convey their suggestions and grievances to the top management. question the information’s timeliness. This will also increase the morale of the employees. Inadequate communication delayed action. The message can be conveyed properly only if it has been clearly formulated in the mind of the communicator. 6. The objective may be to obtain information. If the purpose of communication is clear it will help in the choice of mode of communication. 2. initiate action. guesses and misconceptions.
One can get a donkey to move by using a “carrot or a stick”. the forces inside the individual that inspire him to continue work are variously called as wishes. to give their loyalty to the group and to carry out properly the purpose of the organisation. which defeats the very purpose of communication. According to them. energizes or moves behaviour towards goals. drives. his reactions must be known to the sender of message. Principle of time: information should be communicated at the right time. It is an “inner striving condition. Motivation is an effective and dynamic instrument in the hands of a manager for inspiring the workforce and creating confidence in them. 79 . These work for a while and then need to be repeated. Motivation is the process of getting the members or the group to pull weight effectively. with people one can use incentives. And. or threats or reprimands. Thus. *Meaning and definition of motivation* The term ‘motivation’ has its origin in the Latin word “mover” which means to “move”. *MOTIVATION* Introduction: To the behavioural scientists. the instructions. However.” Motivation is an important function performed by manager for actuating the people to work for the accomplishment of organisational objectives. 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. management creates ‘will to work’ which is necessary for the achievement of organisational goals and objectives. which stems from within. needs etc. these only have a limited effect. The latter must consider the suggestion and criticism of the receiver of information. the word motivation is something stemming from within a person. which activates or moves individual into action and continues him in the course of action enthusiastically”.7. motivation stands for movement. But feedback principle is often given a back seat by most managers. The term motivation may be defined as “the managerial function of ascertaining the motives of subordinates and helping them to realize those motives”. Thus. increased or reinforced to secure further movement. Through the motivation of the workforce. motivation refers to a dynamic driving force. Issuance of well-conceived instructions and orders does not mean that they will be followed. motivation is defined as an inner state that activates. The communicator must consider the timing of communication so that the desired response is created in the minds of the receivers. A manager has to make appropriate use of various techniques of motivation to enthuse the employees to follow them.
McFarland. etc. The need hierarchy is as follows: 1. So the manager should understand the needs and wants of the people for the purpose of creative motivation. It explains how and way the human behaviour is caused. control or explain the behaviour of human being”. which applies to the entire class of urges. Safety and security needs: after satisfying the physiological needs. striving or needs direct. Famous psychologist “A. provision for old age. Maslow develop a hierarchy/frame work for understanding human needs. 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. air. It is something that moves a person into action wand continue him in the course of action enthusiastically. H. 80 . which are biological in nature. eliminating or diverting the tension. In the words of Dalton E.Maslow developed a theoretical framework for understanding human motivation. These needs are primary needs. desires. needs and similar forces. water and other necessaries of life. with resulting behaviour aimed at reducing. These needs include such things as food.” Thus. 2.According to Dubin motivation could be defined as “the complex of forces starting and keeping a person at work in an organisation. security of source of income. motivation is the way in which urges. and continues him in the course of action already initiated”. personal bodily security. They want job security. 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. aspiration. desires. Motivation has very close relationship with the behaviour. According to McFarland motivation is a form of tension occurring within individual.H. people want the assurance of maintaining a given economic level. 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. motivation is the term. clothing. Motivation is something that moves the person to action. which has been widely acclaimed. 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. insurance against risks. *Models of motivation* Maslow’s Need Hierarchy model: A. drives. Basic physiological needs: the physiological needs relate to the survival and maintenance of human life. 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.
belongingness. workers in Spain and Belgium felt that their esteem needs are better satisfied than their security and social needs. therefore. which is challenging and since this challenge gives him enough dash and initiative to work. They are also known as egoistic needs. interested in conversation. 4. For example. He is. 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. more than by 81 . Social needs: man is a social being. not for satisfying higher level needs. After his other needs are fulfilled. need hierarchy may not follow the sequence postulated by Maslow. Even if safety need is not satisfied. exchange of feelings and grievances. sociability. Esteem and status needs: these needs embrace such things as self-confidence. the motivation will be defferent. Their degrees of satisfaction of needs do not vary according to the need priority mode. a man has the desire for personal achievement. recognition. 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.3. The phenomenon of multiple motivation is of great practical importance in understanding the behaviour of man. Thus. etc. the egoistic or social need may emerge. It involves realizing one’s potentialities for continued self-development and for being creative in the broadest senses of the word. achievement. However one or two motives in any situation may be prepotent. cultural differences are an important cause of these differences. Employees are enthusiastically motivated by what they are seeking. Proposition that one need is satisfied at one time is also of doubtful validity. it is beneficial to him in particular and to the society in general. while others may be of secondary importance. Surveys in continental European countries and Japan have shown that the model does not apply very well to their managers. He wants to do something. Appraisal of Need Hierarchy model: The need priority model may not apply at all times in all places. Apparently. Moreover satisfied need will no longer be a motivator and needs and wants are infinity. These needs boost the ego of individual. They are concerned with prestige and status of the individual. independence. Moreover. knowledge and success. The sense of achievement gives him psychological satisfaction. Money can act as a motivator only for physiological and social needs. 5. at different levels of needs. Man’s behaviour at any time is mostly guided by multiplicity of motives. companionship. competence.
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. There are important also creative people in whom the drive for creativeness seems to be more important. It is important to note that these sets of assumptions were not based on any research. but is intuitive deductions. The first set of assumptions is contained in “Theory X” and the second set of assumptions in “Theory Y”. They may react cautiously in order to keep what they already have. For instance. Management can offer rewards to a worker who shows higher productivity and can punish him if his performance is below standard. 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. McGregor questioned the assumptions of Theory X. Theory X: Theory X’ believes that autocratic managers often make the following assumptions about their subordinates. According to McGregor. There are always some people in whom. for instance. Theory Y seems to be applicable. but they move forward with enthusiasm when they are seeking something else. In certain people. It suggests that threats of punishment and strict control are the ways to control the people. Accordingly. man works for bread alone as long as it is not available. the subordinate in general: (i) Has an inherent dislike for work and will avoid it. 2. This is management’s task. the level of operation may be permanently lower. it may be under-valued. need for self-esteem seems to be more prominent then that of love. 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. (ii) Is lazy and avoids responsibility. and (iv) Prefers to be directed. In other words. this is a traditional theory of what workers are like and what management must do ot motivate them. has relatively little ambition and wants security above all. For such people. 1. Another cause of reversal of need hierarchy is that when a need has been satisfied for a long time. Workers have to be persuaded and pushed into performance. if he can. wishes to avoid responsibility. (iii) Is indifferent to organisational goals. which followed carrot and stick approach to motivation of people and suggested autocratic style of leadership. Theory Y: 82 .what they already have. This is also called ‘carrot and stick’ approach to motivation.
Accordingly. not only to accept. 83 . Depending upon controllable conditions. (iii) Commitment to objectives is a function of the rewards associated with their achievement. (iv) Learns under proper conditions. not narrowly. and (v) The capacity to exercise a relatively high degree of imagination. ingenuity and creativity in the solution of organisational problems is widely. the subordinate in general: (i) Does not inherently dislike work. distributed in the population. (ii) Will exercise self-direction and self-control in the service of objectives to which he is committed. work may be a source of satisfaction or a source of punishment.Managers with Theory Y orientation make the following assumptions about their subordinates. but also to seek responsibility.
which made them. It assumes that employees exercise self-direction and self-control in the direction of the goals to which they feel themselves committed. They could be motivated by delegation of authority. Neither of the two sets of assumptions is applicable fully in all situations and to all types of people. Hygienie factors served to prevent loss of money and efficiency. and management by objectives and participative management practices. 3. Thus. particularly the higher once. skilled and professional employees who understand their responsibility and are self-controlled. these theories are important tools in understanding the behaviour of human beings and in designing the incentive schemes to motivate the employees. Herzberg’s Motivation-Hygiene Model: A significant development in motivation was distinction between motivational and maintenance factors in job situation. Thus.Theory Y assumes that goals of the organisation and those of the individuals are not necessarily incongruent. These men were asked to recall specific incidents in their experience. Worker’s commitment is directly related to the satisfaction of their needs. security or working conditions and when they felt bad. of the employees. 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. 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. However. 84 . The basic problem in most of the organisations is that of securing commitment of workers to organisational goals. the management should use an amalgamation of both the theories to motivate different employees. The examples of highly placed employees in modern organisations shirking responsibility are not uncommon. To this group of engineers and accountants. each person possesses the traits of both in varying degrees under different situations. there can be exceptions. this theory places great emphasis on satisfaction of the needs. job enlargement. Theory Y seems to be more applicable to educated. clothing and shelter. 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. the real motivators were opportunities to become more expert and to handle more demanding assignments. No man would belong completely to either theory X or theory Y. This led to draw a distinction between what are called as ‘motivators’ and ‘hygiene factors’. 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. A lower-level employee may be more responsible and mature than a well-qualified higher-level employee. Therefore. Thus. It does not rely heavily on the use of authority as an instrument of command and control. it was because of some disturbance on these background factors which had caused them to believe that they were being treated unfairly.
Herzberg’s maintenance and motivational factors have been shown in the table Herzberg’s Maintenance and motivational factors Sr. 4. Advancement. Herzberg further stated that managers have hitherto been very much concerned with hygienie factors. 5. Inter-personal relations with supervisor. Many of these factors are traditionally perceived by management as motivators. fringe benefits. 2. 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. Some job conditions operate primarily to dissatisfy employees when they are absent. responsibility and sense of job and individual importance. Possibility of growth. As a result. Technical supervision. Salary. Inter-personal relations with subordinates. Status. Work itself. Maintenance of Hygienie factors Company policy and administration. 3. new experience and challenging work etc. Working conditions. 7. The presence of these factors at a satisfactory level presents job dissatisfaction.hygienie factors provide no motivation to the employees. Motivational factors Achievement. but the absence of these factors serves as dissatisfiers. These conditions are ‘motivational factors’. but the factors are really more potent as dissatisfiers. 8. 1. physical conditions and overall company policy and administration. but they do not provide motivation to the employees. Responsibility. 6. they have not been able to obtain the desired behaviour from employees. Inter-personal relations with peers. Personal life. So they are not considered as motivational factors. Hygienie factors include wages. No. 85 . it is necessary to pay attention to the satisfiers or motivational factors. In order to increase the motivation of employees. Recognition. Job security. 9. feeling of accomplishment and achievement. They are also known as satisfiers and include such factors as recognition. but are essential for increasing the productivity of the employees. 10. but their presence does not motivate employees in a strong way. opportunity of advancement and potential for personal growth.
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
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
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
they may rank them differently. 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. instrumentality and valence are all high. motivation will be moderate. this individual will strive towards superior performance in order to achieve the salary increase. In other cases. The management must recognize factors for behavioural modification. (ii) Low performance-reward instrumentality relationship: similar performance may not lead to similar rewards. For instance. 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. The combination that produces the strongest motivation is high positive valence. all people in an organisation may not place the same value on such job factors as promotion. vroom emphasizes the importance of individual perception and assessment to organisational behaviour.obtaining promotion (second level outcome). Similarly. which the worker may not be aware of or may not consider fair. Thus. The reward policy may be inconsistent and may depend upon factor other than performance. expectancy and instrumentality. 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. as it is the probability of achieving the desired outcome. Motivation is the product of valance. high pay. Broom is of the opinion that what is important is the perception and value the individual places. In essence. In other words. The value of instrumentality also ranges from 0 to 1. The management must re-evaluate the appraisal techniques and formulate policies that strengthen performance-reward relationship as just and equitable. the strength of avoidance behaviour will be determined by the negative valence and expectancy and instrumental factors. job security and working conditions. the resulting motivation will be weak. so that these three elements achieve the highest value individually. The merits of Vroom theory are: 89 . The management could provide the relationship between efforts and performance. If all the three are low. This individual is not likely to emphasize superior performance to achieve the goal. another individual may highly value promotion and perceive political behaviour as instrumental in achieving it. 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. 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. According to broom. high expectancy and high instrumentality. the motivational force will be highest when expectancy. high value on salary increase and perceives superior performance as instrumental in reaching that goal. As said above. One the other hand.
J. managers should continue it. occupational choice. suppose the organisation sets a certain standard for production (first-level outcome of organisational goal) for the purpose of incentive pay. 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. The expectancy model attempts to mirror the complex motivational process. (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. managerial motivation. so to speak. and the expectancies that are held with respect to the employees ability to influence the first-level outcome. etc. it will be instrumental in getting them higher remuneration or promotion. and (c) they may not believe that if they achieve the standard. By measuring and analyzing the workers’ output managers can get clues to their motivation. From the theoretical standpoint it seems to be a step in the right direction. the Broom model has been used to predict a wide variety of work-related variables in a number of studies.(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. Broom draws attention to an all-important fact that there is no one set formula for the motivation of individuals. If the workers do not put forth adequate efforts to achieve the organisational goal. He looked at effective motivation not in terms of either a fixed set of human needs or as a uniform configuration of external motivations. In other words. His is the contingency approach. 90 . (v) Practical utility: according to R. These include job effort and performance. 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. leadership behaviour and leadership effectiveness. House and M. it should be given up for something better. it may be assumed that either (a) they do not place much value on the second-level outcomes (incentive. It is thus a step further from management by objectives. on the other hand. Wahba.A. As Koontz. but it is still a useful concept for the theory of the firm. It does seem more realistic”. organisational practices. promotion. O. importance of pay and pay effectiveness. It is of value in understanding organisational behaviour. if any method of motivation is found to be productive. if it does not produce the desired results. promotion). Business people do not actually calculate the point where marginal ost equals marginal revenue. identify some of the important variables and formulate their reward plans accordingly. (second-level outcome). For instance. (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. (iv) Contingency approach: indirectly. “the expectancy model is like marginal analysis in economics. According to Fred Luthans.
Mitchell and A. Edward E.” (iii) Little impact on management: apart from the fact that it is a highly complex model and difficult to understand. not much. attitudes and organisational behaviour. estimate expectancies and valences. Biglan. unless of course they are asked to do so by a researcher. from 1962 to 1974 and came to the general conclusion that there was empirical support to the expectancy theory. “it does not attempt to describe what the content (of motivation) is or what the individual differences are.” A fully developed test incorporating force. Richard Heckman pointed out. Wahba. The demerits of Vroom’s theory: (i) Lack of concreteness: the generality of the model constitutes its principal weakness.” Further. H. “Hedonistic cognitions are insufficient to determine a person’s value system. on which the model is based. (vi) Popular support: it is said that since the model had been proposed. 91 . As Lyman Porter. most researchers suggested the need for further study to test some of the principal variables. multiply and add up the total. Heinemann. (iv) Weak empirical support: the empirical support for the Vroom model is insignificant and lacks consistency. verbal conditioning. learning theory. It has been rightly remarked by Hamner and organ “the predictive potential of this theory is still largely untested. expectancy and instrumentality measures as well as ability assessment has not yet been offered. G. People rarely actually sit down and list their expected outcomes for a contemplated behaviour. it does not provide specific suggestions on what motivates organisation members as the Maslow. House and Steven Kerr analyzed the numerous studies. III and D.In the opinion of Leon Reinharth and M. Ti indicates only the conceptual determinants of motivation and how they are related. Alan C. more than 32.A. That is why its impact on job-settings has been negligible and influence on managerial action. P. House who apprised fourteen investigations also confirmed the propositions.R. who reviewed six cases in the area of industrial psychology. (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’. Similarly. Lawler. its practicability is also open to question. However. Wahba and R. Harzberg and Alderfer models do. All these impart a certain amount of generality and practical utility to the model. the expectancy model is just a model and no more. III and J. some of its propositions were confirmed by studies made by T. at least one issue of every journal in organisational behaviour reported some result on its application in practice. Robert J. “the expectancy theory has served as the basis for research in such diverse areas such as decision-making. As Luthans pointed out. Schwab who investigated nine field enquiries in managerial settings and further M. Filley.
Comparison and contrast with Maslow theory: 92 . which persist over a period of time. social. we again focus on relatedness needs. moving from a focus on one need. (b) He recognized that rise in the level of satisfaction of our existence and relatedness needs may result in decrease concreteness. That is. There seems to be some overlapping between esteem. (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. the ways we can satisfy those needs become increasingly abstract. a focus on existence to relatedness to growth needs. Thus. and the episode needs. In this way. as we move from. 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. we “drop back” and again focus on more concrete needs. then another.e. That is. It is like Maslow’s last level need of self-actualization. in this sense.. Different types on needs can operate simultaneously. 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. If a particular path towards the satisfaction is blocked. social. and then back again.Alderfer’s Existence-Relatedness-Growth (ERG) Model: Serious doubts have been expressed about the existence of the five distinct need categories. 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. and self-actualization needs are not entirely clear. suggesting a pattern of satisfaction progression-that is. Alderfer’s work gives up a sound basis to categories of human needs and to think about the relationship between need categories. if we are unable to satisfy out growth needs. With these points in mind. if we can’t satisfy needs at a given level of abstractness. i. Also. Alderfer sounds somewhat like Maslow. the lines between esteem. and physiological needs. (ii) Relatedness need: this includes all needs that involve relationships with other people we care about. Maslow’s first two level needs. Relatedness needs cover Maslow’s social needs and that of esteem needs which are derived from other people. which are situational and can change according to the environment. the opposite of satisfaction or relatedness needs is emotional distance rather than hatred. a focus on existence to relatedness to growth needs. as we move from. the individual will both persist along that path and at the same time regress towards more easily satisfied needs. we can go through cycles. (iii) Growth need: these needs involve persons making creative efforts to achieve full potential in the existing environment. the ways we can satisfy those needs become increasingly abstract. which Maslow hypothesized. Alderfer distinguishes between chronic needs. Thus.
The term ‘relatedness’ used in the theory is particularly confusing.l Alderfer also envisaged downward movement in the hierarchy. Merits of Alderfer’s theory: (i) Alderfer’s concept of needs is more direct and simple to understand. achievement. namely. (iii) the overall structure of need categories is also the same.There are some similarities as well as dissimilarities between Alderfer’s ERG theory and Maslow’s theory of Need Hierarchy. advance and grow. and (iv) there is a specific method indicated in the theory for its testing and validation. related needs may in some cases take precedence over existence needs. more realistic. (b) Dissimilarities: (i) Maslow’s main contention is hierarchy of needs. Criticism of Alderfer’s theory: The fact that the needs are not strictly demarcated goes against the theory. there can be not only satisfaction progression but frustration regression as well. Accordingly. ERG needs do not maintain sharp lines of demarcation. and (iii) Need for affiliation (n-Aff): a drive for friendly and close interpersonal relationships. and like other content theories. it fails to contribute effectively to human resources management. whereas Alderfer focused more on a continuum of needs than their hierarchical levels. Alderfer has grouped further the five needs enunciated by Maslow. power and affiliation. (ii) Need for power (n-Pow): a drive to influence others and situations. which are as follows: (a) Similarities: (i) both are content theories. (ii) it is more flexible and therefore. (iii) unlike Maslow. David McClelland gave a model of motivation. “most contemporary analyses of work motivation tend to support Alderfer’s theory over Maslow’s”. 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. (ii) thus. In his opinion. This drive is the 93 . 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. They have a desire to do something better or more efficiently than it has been done before. They are stated below: (i) Need for achievement (n-Ach): a drive to excel. Probably this is one of the important reasons for lack of popularity of Alderfer’s theory. In the words of Fred Luthans. (ii) the basic needs emphasized in both are the same. and (iv) Alderfer also recognized the influence of a man’s personal background and his natural environment. and (iv) both deal with upward movement of motivation according to the hierarchy. (iii) the provision of backlash of fulfillment of a need accords with reality.
Individuals with high affiliation needs value interpersonal relationships and exhibit sensitivity towards other people’s feeling. People possess the above needs in varying degrees. 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. Individual with a high need for achievement thrive on jobs and projects that tax their skills and abilities.achievement need. 94 . They prefer the challenge of working at a problem and accepting the personal responsibility for success or failure. Power motivation: the need for power is a drive to have impact. High achievers are not gamblers. strive for influence over others. McClelland found that high achievers differentiate themselves from others by their desire to do things better. influence or have control over others. Individuals with a high affiliation motive strive for friendship. McClelland’s concept of achievement motivation can be related to Herzberg’s motivation-hygiene theory. individuals high in nPow enjoy being “in charge”. In other words. Such individuals are goal-oriented in their activities. But individuals with the high power needs seek to dominate. Power-motivated people wish to create an impact on their organisations and are willing to take risks to do so. It is the drive to relate to people on a social basis. they dislike succeeding by chance. motivating forces for managers lie in the challenge and potential of the job. McClelland’s research revealed that managers generally score high in the need for achievement. and desire relationships involving a high degree of mutual understanding. rather than leaving the outcome to chance or the actions of others. and to control others. where they can receive rapid feedback on their performance so they can set moderately challenging goals. seek a challenge and want task relevant feedback. prefer cooperative situations rather than competitive ones. From researches into the area of achievement need. and tend to be more concerned with gaining influence over others and prestige than with effective performance. to be influential. one of the needs will tend to be more characteristic of the individual rather than the other two. They seek situations where they can attain personal responsibility for finding solutions to problems. prefer to be placed into competitive and status-oriented situations. However. Affiliation need can be viewed as the desire to be liked and accepted by others. Affiliation motivation: this need has received the least attention of researchers.