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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 pre-determined 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 co-ordination 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, co-coordinating and controlling.
Production is not possible without these basic things. Management is also being recognized as separate syllabi because it has its own thoughts. E. board of directors. As a process: a series of interrelated functions performed in all organizational. leading. Management as a noun: when it is addressed as a noun. controlling through a definite process. managing. staffing. A young and growing discipline. Integrated process Social process Activity based Group activity 4 . material and machine). capital.g. Universal. it is related to those persons who get other people’s work completed. Discipline here means a separate and recognized subject. organizing. principles and methodology. An elite group in the society. Nature or Characteristics of management: (i) (ii) (iii) (iv) (v) (vi) Goal oriented. general manages etc. which has its own identity. 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 economic resource: economists have accepted management as a resource of production like other resources (land.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. (iv) (v) Meaning of management at glance: (i) (ii) (iii) (iv) As an activity: getting things done through others being with them. As a group: a body of persons who perform the task of managing organization. As a discipline: a subject of study drawing upon knowledge of others disciplines. Management as a discipline: management is fast emerging as a discipline. labour. In other words. A process has means that different activities like planning.
which illustrate the nature of management. Such features are as follows: (i) (ii) (iii) (iv) It is a process: process means a systematic method of doing some work.(vii) Art as well as science (viii) Multi disciplinary (ix) Intangible (x) Optimum co-ordination between human and material resources. OR After a careful study of definitions we embark upon such features. In this context management is also described as a social activity. (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 ---.it means that management results are according to the situation. (xxii) Management is creative and innovative formulate creativity. is called a social activity. It is that process in which work is done with others or it is got done from them. So. which is connected with the people living in society. Management is recognized as a continuous process. it is a process. A manager did these works in a continuous order. leading and controlling. organizing. In order to achieve the pre-determined objective a manager performs the work of planning. 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. Group efforts: management always efforts to group efforts and does not apply to an individuals. (xi) The combination of multiple functions (xii) Management is a distinct entity. staffing. Attainment of pre-determined objectives: group efforts in management are always directed towards the achievement of some pre-determined 5 . Any activity. creativity is the process of developing new ideas. A group rather than an individual can easily and effectively attain management of an enterprise.
Science and Profession: As a science: systematic body of knowledge. It can only be feel or realized on the basis of the success of an organization. there should not be any doubt or hesitation to call it a profession. (vii) Management as a profession: when we have recognized the distinct entity of management. personal skill. MANAGEMENT – Art. formal education service motive. management is considered a profession. cause and effect relationship. (ix) It is a combination of multiple functions: the basic function of management is to achieve the objectives of the organization successfully. scientific experiments. (viii) Management is an intangible force: management is a force. Hence. (vi) Management is a universal activity: it is clear that management is not only connected with business but also with non-business activities also. creativity and continuous practice. which is not visible. The knowledge of management is also a qualification and managers also get their remuneration for it. organizing. As an art: practical knowledge. leading and controlling etc. Management is everywhere. universal principles. validity and predictability. with out objectives management would be difficult if not impossible. staffing. hence management does not mean one particular job but it happens to be a combination of various jobs. That is why a manager has to perform various function like planning.objectives. (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. As a profession: specialized body of knowledge. representative association and code of conduct management is not a full-fledged profession. The quality of a profession is that he must posses some special qualifications or ability for which he is paid remuneration. We can say that specially qualified experts are needed for managing the company. which is also important. 6 .
(iii) Art is a personalized process as every artist has his own style or approach. depending upon the environment in which he works. Management is creative as the manager creates new things and improves upon the old things. the manager gets perfection in the art of managing through continuous practice. Thirdly. (iv) Art prescribes row to do things and it can be improved through continuous practice. the process of management involves the use of knowledge and skills in solving various problems. Management is essentially an art because: Firstly. Secondly. growth etc. Practical knowledge: every art signifies practical knowledge. Management is a personalized process every manager has his own approach and techniques to solve problems. (ii) Art is essentially creative and the success of an artist is measured by the results he achieves. Thus management fully lives up to the description of an Art and therefore it is an art.MANAGEMENT AS AN ART: Main features of art are: (i) Art involves the application of knowledge and skills to achieve desired results. OR Art implies the application of knowledge and skills to bring about the desired results. It seeks to achieve concrete practical results that is output. 7 . profits. Lastly. An artist must not only learn the theory but also its application in practice. Features: 1.
Every manager applies certain knowledge and skills to achieve the desired results. 4. (iv) The principles of science have universal validity and applicability. The success of a manager depends on his personality in addition to his technical knowledge. Similarly a manager gains experience through regular practice and becomes more effective. This is level of their personal skill. These principles are universal in nature and establish on cause and effect relationship. 5. But the methods of observation followed by management are not purity objective because the 8 . Conclusion: One cannot become efficient and effective manager simply by learning. Personal skill: every artist has his own style and approach to his job. A manager is judged not just by his technical knowledge but his efficiency in applying that knowledge. management is also a systematized body of knowledge. (ii) It is based on cause and effect relationship. It consists of various concepts. Similarly every manager has his individual approach and style on solving managerial problems. Management is a science because: According to the given information about science. 3. A manager effectively combines and coordinates the factors of production to create goods and services. He uses CM’s to the growth of his organization. (iii) The scientific study is based on observation and experiments. Result oriented approach: art seeks to achieve concrete results. principles and techniques developed through observation and experience. Management principles by heart it also requires practical application of those results. 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. Improvement through practice: every artist becomes more and more efficient through constant practice.2. 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.
Thus management cannot be regarded as exact science like physics. OR Science means a systematic body of knowledge pertaining to a specific field of study. similarly the principles of management establish cause and effect relationship between different variables. These principles may be applied in all situations and at all times. chemistry etc. Management principles are also based on scientific enquiry and investigation. Every time the test will give the same result. scientific principles are critically tested. These have been developed through practical and experimental experience of a large number of managers. It contains general principal and facts which explains a phenomenon. 3.subjects are human beings whose behaviors cannot be predicted with absolute accuracy. Test of validity and predictability: validity of scientific principles can be tested at any time and any number of times. which is subject to constant changes and difficult to predict. which can be universally applied. chemistry. These principles are flexible and need to be modified in different situations. Features: 1. Universal application: scientific principles represent basic facts about and a particular field of enquires. 5. physics. Principles of science can also be tested for their validity. Management contains some fundamentals principles. Thus management cannot be regarded as an exact science like physics and chemistry. and biology etc. These help to explain events and serve as guidelines for managers in different types of organization. 4. sociology. Cause and effect relationship: principles of science lay down a cause and effect relationship between related factors. Conclusion: Management is not a perfect science like other physical science such as astronomy. management deals with people and 9 . as is the case with other social science like psychology. 2. So they can be explained logically. Scientific enquiry and experiment: scientific principles and derived through scientific investigation and reasoning. therefore management may be called an inexact science. Systematic body of knowledge: management is a systematic body of knowledge consisting of general principles and techniques. It deals with the study of behavior of human beings.
A profession enjoys community sanction or respect. which contains rules and regulations providing the norms of honesty integrity and professional ethics. A manager of a factory is responsible not only to its owners. Management as a profession: A profession is a caving that requires specialized knowledge and often long intensive academic preparation: Features: 1. 5. Today. which regulates that profession. No one can enter a profession without going through the prescribe course of learning. The representative association to ensure self-discipline among its members enforces the code of conduct. Specialized body of knowledge: every profession has a well-defined body of knowledge relevant to the area of specialization. 2. There exists a substantially and rapidly expanding body of knowledge in management. Any member violating the code can be punished and his membership can be cancelled. Formal education and training has become very helpful in getting jobs as managers. Restricted entry: there exist institutions and universities to impart education and training for a profession. 10 . 4. by the is also expected to produce quality goods at reasonable costs and to contribute to the well being of the community. Service motive: a profession is a source of livelihood but professional are primarily motivated by the desire to serve the community. Many institutions have been set up which offer courses for specialized training in management.it is very difficult to predict their behavior accurately so management is a social science. Managers have formed certain associations for the regular exchange of knowledge and experience. Representative association: in every profession there is a statutory association or institution. management is a separate discipline having a specialized and organized body of knowledge. 3. In order to practice a profession a person requires specialized knowledge of its principles and techniques. Code of conduct: members of one profession have to abide by a code of conduct.
Conclusion: Management fulfills several essentials of a profession but like other professions management does not restrict entry into managerial jobs, to people with a special academic degree. Objectives of management at a glance (i) (ii) (iii) (iv) (v) (vi) Securing maximum results with minimum efforts. Maximum prosperity for employer and employee. Human better mere Elimination of all types of waste Economic growth Social justice Importance of management at glance: 1. 2. 3. 4. 5. 6. 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, management is a dynamic and life-giving element of every business. In its absence the means of production remain merely the means and can never be the producers. We know that not only in the field of business but in other fields also management has come to occupy an important place. In this reference, it is said that “any thing minus management is nothing.” These are some topics, which clearly highlight the importance of management. Achieving pre-determined objectives: each organization is established with certain aims. Management is the only power and medium which can help in the successful attainment of these aims. 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.
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. Most efficient use of the limited resources is the key to the successful business and thus this fact can be converted into reality with the help of management. 3. Overcoming competition: these days business is not localized but it has assumed national or even international dimensions. Competition is increasing day by day. 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. Only an efficient and clever manager can make it a reality and save the reputation of an organization. 4. 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. So many goods having modern techniques are in the bazaar customers accept only those products which are cheap and the best. 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. 5. 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. 6. Increased profits. 7. To maintain a sound organizational structure. 8. 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. 9. Management minimizes risks. 10. Reduces cost of production. 11. Economic growth: Management is the catalyst of economic growth, development is a matter of human energies rather than of economic growth and generation of human energies is the task of management. Management is the mover ad development in the consequence. 12. Stability: management ensures the survival of an organisation in a fast changing environment. It co-ordinates the activities of different departments in an organisation and maintains team spirit amongst the personnel.
Human development: Management is not simply directions of things but the development of men. It improves the personality and caliber of people to raise their efficiency and productivity. A good manager serves as a friend and guide to his subordinates. 14. Meets the challenge of change: Management is a catalytic force that enables an organisation to face the challenge of change. The environment of business has become very turbulent. Managers maintain a dynamic equilibrium between an enterprise and its environment through innovation and creativity.
MANAGEMENT AND ADMINISTRATION On the basis of different opinions of the experts over the world management and administration, there are three prevalent concepts: (i)
American concepts: Administration is a higher-level activity or system and management is lower. English concepts: management is the higher-level system and it has more power than administration. Modern concepts: According to it, management and administration are synonymous. 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.
DIFFERENCE BETWEEN MANAGEMENT AND ADMINISTRATION: Sr. Basis of No. difference 1. 2. 3. 4. Meaning Purpose Nature Decisions Administration It means the determination of objectives, plans and policies of an enterprise. Administration aims at determining the objectives. Management Management is to translate threats into opportunities.
Management aims at achieving pre-determined objectives. Administration is a decision Management is an execution making function. or doing function. Administration decides what Management decides who will
universities etc. Features Administration decisions are affecting influenced by govt. and public sector. are the Management is related with the workers and employers of organization. Concerned It is not directly concerned with direction of human efforts. Function It is a determinative or thinking function. 6. 8. Directing and organizing are main functions involved in it. decisions social and political circumstances and economic additions. Usage The term administration is generally used from business organizations like govt. Commander. 9. where he will do it. Managing director. Skills Conceptual and human skills used eagerly in govt. policies. Involvement Planning and controlling are the main functions involved in it. colleges. Influence Its services are influenced mainly by public opinion and other outside forces.5. Management is generally used with reference to business enterprises. do the function and how he will do it. Managerial decisions are influenced mainly by objectives and policies of organization. 16. 12. offices. Concerned It is concerned with determination of major object and policies. It is a activity concerned with directions of human efforts in the executions of plans. Management decisions mainly influenced by target of enterprise. is to be done and when it is to be done. 10. 14 . It is an executive or doing function.. 15. 11. Technical and human skills used mainly in business organization. Relationship Administration is related mainly with the owner and top-level managers. general 13. 7. 14. Minister. It concerned with the implementation of policies. Level It is mainly top-level function. The term management is more applicable at middle level and lower level of management. It is largely a middle and lower level function. Scope The term administration is applicable at the top level of management.
He maintains coordination among different departments of the company. 15 . Top management consists of the board of directors and the chief executive or managing director they establish overall long-term goals and plans of the organization. It is the ultimate source of authority. (iii) To formulate and approve the master budget and departmental budgets. Intermediate management: Intermediate or upper middle management comprises departmental or divisional heads. branch manager etc. (ii) To establish long term corporate plans. sales manager. It is their responsibility to ensure success of the organization. Chief executive is concerned with the overall management of the company’s operations. . (v) To appoint departmental heads and key executives. (vi) To coordinate and integrate the activities of different departments and divisions of the company. 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: Top management refers to the managing at the highest level in the management hierarchy. (x) To decide the distribution of profits. Features: (i) To analyse and interpret changes in external environment of the company. (ix) To represent the company to the outside world. Registrar.Commissioner.Chancellor. Vice manager. Governor etc. (vii) To provide overall direction and leadership to the company. (iv) To design broad organization structure. It is basically an organ of overall review and control. (viii) To exercise the overall review and control of the financial and operating results of the company. It is held responsible for the general success or failure of the organization. He also keeps the organization in harmony with its external environment.
E. Middle management: Middle management consists of all sectional heads. Function: 1. plant manager. 2. It is also known as departmental or functional management. To assign jobs to workers and to make arrangements for their training and development. (ii) To control the operating performance. branch manager. 5. organizing. 16 . He coordinates and controls the activities of all personal working in different branches of his department. marketing manager. Function: (i) To interpret and explain the plans and policies formulated by top management. He performs the usual managerial functions of planning. To supervise and control workers operations and to maintain personal connection with them. motivate and develop supervisory personal. office manager etc. finance manager etc. 3. To plan day-to-day production with is the goals laid down by higher authorities. supervisors and operating managers maintain close contacts with rank and file workers and supervise day-to-day operations. and purchase officers etc. It consists of supervisors.g. works manager. To arrange material and tools is maintain machinery. E. sales officers. staffing. (v) To lay down rules and regulations to be followed by supervisory personnel. To issue orders and instructions. foremen. 4. (iii) To cooperate among themselves so as to integrate the various activities of department. He is accountable for the performance of his division or department to the chief executive. These executives serve as a link between intermediate or top management and the operating management. directing and controlling in relation to one department. (iv) To train.g. area sales manager. Every divisional head is the overall uncharged of one particular division or department. Supervisory or operating or first-line management: This is the lowest level of management in an organization. They are concerned with the mechanics of jobs.
He should able to deal with different persons in different circumstances. 7.6. 2. Decision making skills: in crucial times a manager should be able to have the ability of making decisions. 5. 17 . (b) Process of management: it includes six m’s. Management does not simply mean the knowledge of principles of management rather it is its application which makes its effective. CONCEPTS OF MANAGEMENT (a) 1. solving problems etc. Men Money Machine Material Market As a profession: you need proper degree. SKILLS OF A MANAGER 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. Technical skills: it is concerned with the application of skill or knowledge acquired. 4. To report feedback information and workers problems to the higher authorities. To maintain discipline and good human relations among workers. There are certain legal rules. These decisions must be effective and practical in use as well. 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. 8. To advice and assist workers by explaining work procdures. 3.
it will create a good impression on other people living or working under him it will motivate the sub-ordinates working under him. AGAINST: The main function of the manager is to govern his organization smoothly and efficiently. the managers are very creative and if they will take part in social problems. for the efficient working and smooth working small sub-systems should work properly. As their main task is to have the cordial relations with people inside the organization or outside the organization. superiors and other members relating to business.g. Manager takes the salary for gobering his organizing properly not for solving the social problem of the society. it creates a favorable impression on the society. the society is sure to make progress become one man can change the whole environment.MANAGEMENT AND SOCIAL RESPONSIBILTIES FOR: Manager should have social responsibility for the people. manager should not move his mind towards social responsibilities of the society. It will thus create the source of motivation towards the society. education values etc. So generally take the responsibility (political parties. OR There are many thinkers who have supported this. which will ultimately helps the business. if managers will take part in social event or they will become responsible towards society. he should not make himself responsible towards the society. The social problem should be left for those people. if he will take interest in the social functions or problem. According to System theory. Because manager is a person who is very skilled. Managers take the input from the society e. Thus. The had to interact with his subordinates. Managers have a creative and also communicative skill. So. but there are others who have expressed their opinion both sides are given as under:18 . He should not be able to do his work properly. interest groups etc) of improving are solving the problem of the society. Thus. the society is bound to improve in some kind or others. So.
that in future business will come to occupy a position of predominance the idea of social responsibility of management opinion against. 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. 8. It means that when business is alive to its social responsibility. 4. 6. It owners of business. namely.Arguments against social responsibility: 1. 5. which can get work out of people. Inefficiency in the system: there is no power other than self-interest. 7. Difficult implementation: the concept of social responsibility is ill conceived and ill defined and is difficult to be implemented. start thinking of social responsibility the whole worksystem will turn inefficient. which in itself is a painful delaminate. private market mechanism and social responsibilities which are opposite to each other. 3. in the same way the chief objective of business is to enhance its profits by utilizing its. The consumers will have to pay higher costs. Effects of business values: Business should not have any social responsibility otherwise social values will come to be dominated by business values. Conflicting consideration: A business manager will be guided by two considerations. resources. by ignoring self-interest. 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. They should have no right to interfere with the external environment of business. the people in the beginning will be so thoroughly impressed by it. Argument for social responsibility: 19 . Arbitrary power: Business managers will get arbitrary power in the matter of allocation of resources in the welfare of the society. Contrary to the objective of business: Just as the primary objective 2. of players in the play-ground is to achieve victory.
Business is only a sub-system of society and this sub-system must contribute to the welfare of the main system. 2. It will also avoid conflict with the society in its own interest. 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. their social power must be taken away by the society through government controls and regulations and other measures. 9. ignorant or oppressed. education. has to interfere increasingly in the business system. Avoidance of govt. 3. 4. The consumers are well informed: They expect higher quality products at responsible rates. which adversely affects the progress of business. People who have good environment. they 20 . honesty and morality. Code of conduct includes rules connected with profession. if taken care of in the present ensures the success of the organization in the future. Code of conduct: Members of a profession are bound to follow a code of conduct. consumers and suppliers will lead to success of business. which form its base. 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. 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. If they don’t get fair treatment form business. the govt. It is necessary that every business are obliged to use the social resources for the common good of society. 8. customers and neighbours for business than those who are poor. which must have a general relationship with social responsibilities. 6. The social responsibilities of businessmen must be proportionate to their social power. Long term self-interest of business: the social responsibility of business. regulation: If business does not care of its social responsibility. 5. It is the moral and right thing to do: It is widely agreed that businessmen today have considerable social power. 7.1. Good relation with the workers. If the businessmen do not assume social responsibilities. This power is virtually granted to them by the society. and opportunity make better employees.
These skills refer to the ability to visualize the entire picture or to consider a situation in its totality. 4. Conceptual skills: conceptual skills comprise the ability to see whole organization and interrelationships between its parts. analyzing the environment. techniques and procedures involved in performing specific tasks. Technical skills: technical skills refer to the ability and knowledge in using the equipment.will organize themselves and compel the business its social responsibilities. 7. These skills require specialized knowledge and proficiency in mechanics of a particular job. 5. span of management. An awareness of the importance of human skills should be part of manager’s orientation. MANAGERIAL SKILLS: 1. subordinates and peers. A manager must be clear about grouping of various jobs. the nature and circumstances of a particular condition. 6. 3. 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. Diagnostic skills: it includes the ability to determine by analyzing and examination. 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. type of relationship to be established between various people and various jobs. Human skills are reflected in the way a manager perceives his superiors. 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. He must be able to assess or guess the changes in environment. Planning skills: the manager must passes the skills of thinking the skills of 2. it includes what is happening in the society organization and political system. He must be able to match two sets of environment on the basis of external and internal analysis. Human skills: human skills consist of the ability to work effectively with other people. These are required to win co-operation of others and to build effective work teams. It is not only the ability to specify why something happened but also the ability to 21 . 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.
Sharing latest knowledge. packaging (as in the case of children packaging plays a very important role). credit facilities must be made available to the middle class people etc. d. which are fixed in a way such that accomplishment of those standards leads to the accomplishment of goals. 6. Responsibilities of manager: 1. Controlling skill: there are certain standards. Compiling with the norms lay down by the association. Reaching to the main cause or the problem. Providing correct information to organisation. b. (i) Routine and program decision (ii) Non-routine and non-program decisions. Comparing merits and demerits of each solution. c. 4. Searching for the alternative solution. Product must be checked for the quality. 5. There must be free testing of goods that is distribution of samples. 8. To motivate them the organisation must reward them. It is the duty or says responsibility of the manager that the suppliers are being paid at the time. Responsibility towards distributors: it is the responsibility of the manager to check regular supply of the product. You can take the advantage by showing collectiveness. Selecting the best course of action. The course of action to be followed is as under: 1. Indulging in fair and ethical competition. Decision making skills: there are two types of decisions to be taken by the manager. There should be fair return on investment that is fair commission must be paid. 3. Not using any political or other strategies. Supporting the individual members of the association. The manager must be in a position to identify the problem. 9. A manager must keep check on the activities of subordinates and must rectify them if there are any problems. mechanical components. Responsibility towards suppliers: people who supply raw material. g. f. 2. financial institutions and advertising agencies. e. Formulating the plan by the application of the alternatives. 22 . It is the ability to it through unimportant aspects and quickly gets though the heart of problem.develop certain possible outcomes. You can survive in the vest way if the industry will survive: a. 2.
The manager sets an example. A manager addressing the trade union is an example. Responsibility towards union: employees union is recognized as the 4. 5. Figurehead: In this role manager performs symbolic duties required by the 2. 7. (iv) Organisation must not try to damage the culture of that area and must try to maintain the rich culture of that area.: 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 (i) Sending the correct information. (iii) Organisation must try to operate as a model citizen. Spokesman: In this role. status of his office. He hobbies and depends his enterprise. Liaison: It describes the manager’s relationship with the outsiders. A manager calling a staff meeting after a business trip is an example of such a role. A manager maintains mutually beneficial relations with other organisations. 8. bestowing honors. 3. legitimizes the power of subordinates and brings their needs in accord with those of his organisation. 4. Leader: This role defines the managers relationship with his own subordinates. 6.3. Disseminators: It involves transmitting the information’s and judgments to the members of the organisations. distributing gifts to retiring employees are examples of such ceremonial and social duties. governments. Responsibility towards customers: Responsibility towards society: Responsibility towards competitors: Responsibility towards workers: Responsibility towards shareholders or owners: Roles of a manager: There are different types of managerial roles some of them are given below: 1. 5. 9. Making speeches. 23 . The information relates to internal operations and external environment. welcoming official visitors. An example is picking up a rumor about his organisation. Responsibility towards govt. industry groups etc. enemy of the organisation. a manager speaks for his organisation. Monitor: It implies seeking and receiving information about his organisation and external events. 6. (ii) Taxes and duties must be paid regularly.
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. (b) To define and establish authority responsibility relationship for the achievement of goals. what is to do in future. Negotiator: As a negotiator a manager bargains with suppliers. For example a manager decides to launch a feasibility study for setting up a new plant. Entrepreneur: It involves initiating changes or acting as a change agent. (d) Division of activities into jobs (e) Fitting individuals into jobs. 9. dealers. It involves determinations of goals and the activities required to be performed to achieve the goals. Functions of management: 1. Disturbance handler: This refers to taking charge when the organisation faces a problem or crises. and (f) Developing relationships.7. Planning: It is a process of thinking before doing. boss of an important customer. trade union’s agents etc. 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. (c) Determination of objectives. For example a strike. complaints and competitive actions. feud between subordinates. 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. 24 . A manager handles conflicts. 2. Resource allocate: In this role a manager approves budgets and schedules sets priorities and distribute resources. 8. Over all planning is deciding that in present. 10.
Staffing is a managerial function of attracting. (iv) Administering test. Staffing: Staffing is the process of determining the manpower requirement that could meet the company’s objectives. (v) Interviewing. acquiring. how to do it and when to do it. In order to get the cooperation of employees. Staffing usually includes the following activities: (i) Human resource planning. The style of leadership will vary from situation to situation. Different types of rewards motivate different people. 3. (ii) Announcing vacant positions. 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. He has to create an understanding in their minds in regard to these matters. (c) Motivation: effective motivation is necessary for getting voluntary cooperation of the subordinates. Directing or Leading: Directing as a function of management is concerned with instructing. Every manager should study the behaviour of individuals working under him to provide him or her proper 25 . the manager must have leadership skills. (vii) Final selection and appointment letter. Personnel department of an organisation looks after the function of staffing. (viii) Orientation and placement.In conclusion we can say that organizing refers to distribution of work to the superiors and sub-ordinates and fixing there authorities and responsibilities. Staffing also involves upgrading of quality/skills of the staff to get higher performance from then. Leadership is concerned with influencing the behavior of followers. 4. A manager has always to tell the subordinates what to do. that is recruitment. (iii) Receiving applications. (vi) Medical test. As a conclusion directing includes the following: (a) Communication: it is the process of passing information and understanding from one person to another. developing and maintaining the human resources required to achieve the organisation objective efficiently. (b) Leadership: a good manager must also be an effective leader.
26 . giving beliefs. It involves comparison of actual performance with the planned performance as to quality. ethros. Terms such as business ethics. 4. Ethics is concerned with what is right and what is wrong is human behaviour. To some financial incentives are important. or deals that pervade a group. 5. or legal ethics are used to indicate the particular area of application. Measurement of actual performance. freedom to do work and recognition. time taken etc. medical ethics. and than analyse the deviations and to take corrective measures to correct the deviations. 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. not neutral. But to have meaning. Taking corrective action. corporate ethics. Establishment of standards. a people--------.inducements. which should pay a very significant role in guiding the conduct of managers and employees in the operation of any enterprise. The word ethics comes from the Greek root. MANAGERIAL ETHICS: The term ‘ethics’ refers to value-oriented decisions and behaviour. meaning character. Ethics refer to a set of moral principles. job enlargement. (f) To ensure that the subordinates are working as per plans and policies. a community. It addresses the question of what ought to be. Ethics refer both to the body of moral principles governing a particular society or group and to the personal normal precepts of an individual. It involves the following steps: 1. Controlling: Controlling is a process of verifying whether actual performance is in accordance to the planned performance and to take corrective action wherever required. standards. (e) Leading the subordinates to influence their activities towards achievement of goals. quantity. (d) Issuing orders and instruction by the superior. the ethics involved in each area must still refer to the value-oriented decisions and behaviour of individuals. Find out deviations. Comparison of actual performance with the planed performance. It is normative and prescriptive. 2. 5. 3. while others are motivated by non-pecuniary incentives like job security.
27 . there are few absolute standards and each issue must be judged by studying its impact upon all affected parties. From this point of view.Some people subscribe to a utilitarian reference in determining what is wrong and what is right. They hold that a proposed course of action should be judged from the standpoint of greatest good for the greatest number of people.
The physician and lawyer understand clearly that their responsibility is to the patient or the client. In the final analyses. Therefore. An automobile manufacturer who produces cars with faulty brakes. There is no comparable management organisation that possessed the right to enforce ethical standards. business ethics are concerned with microethics (relating to daily operating decisions with limited social impact). discrimination. the manager enjoys no such security. a pharmaceutical house that makes false claims about its comd remedies. unemployment and inflation. DIFFICULTIES IN ESTABLISHING MANAGERIAL ETHICS: The problem of laying down managerial ethics is more complicated than it is in established professions such as medicine and law. poverty. unemployment. The most responsible way to distinguish business ethics from social responsibility is in terms of a decision’s implications for society as a whole. Some people feel that social responsibility is linked to organisation and ethics to individuals. The manager is torn between the interests of owners. the manufacturer who markets a highly inflammable article of clothing. Within this frame of reference. decisions are made by people and therefore. we have great difficulty in resolving the problems caused by questionable acts such as paying 28 . The term ‘ethics’ is used to convey both ‘microethics’ and ‘macroethics’. employees and customers so that the “client group” is often impossible to identify and isolate. an organization whose practices contribute to inflation. The executive who lies about a competitor’s product. However this distinction is not even followed in practice. or a food company house TV ads promote substandard food items are socially irresponsible. social responsibility is concerned with macroethics relating to decision with broad implications for a large segment of society. Established medical and legal associations have the legitimate authority to enforce standards of behaviour. the industrialist who dumps pollutants into a stream-all behaves in an ethically irresponsible way. individual managers at some level must assume responsibility for every corporate decision. increased poverty and like would be viewed as socially irresponsible---as not fulfilling its responsibility to society. Accordingly.ETHICS AND SOCIAL RESPONSIBILITIES: The term ‘social responsibility’ conveys the moral conduct that relates to such broad issues as environmental pollution. but this is not a useful distinction. Whereas the physician’s actions are “ethical” if the patient’s interests are served.
Any move n this direction would be. There are four ways to establish acceptable standards of behaviour. at best. require a new type of management organisation with mandatory membership. 29 .bribes or similar actions unless a law is violated. But if law dictates ethical behaviour. law. In management. One final option is the development of individual organizational code of behaviour. the legal system also becomes the ethical system and where higher standards of behaviour than those required by law are desired. the true meaning of personal morality. engineering and accounting and establish a professional society to enforce codes of behaviour for the managers. The third approach is to follow the lead of medicine. Secondly. there is no way to enforce them. But how to enforce the standards and make allowances for organizational and environmental differences is the main problem. This option would. But the individual organizational codes do not provide for uniform standards required of business. In India and other countries. and so on. however. professional certification. an attempt should be made to develop accepted code of ethics to guide managerial action. long-range in character. management associations have attempted this approach. individual responsibility and free choice is lost. This idea has a great deal of support and shortterm promise. The first is the establishment of minimum standards of behaviour by law. Nothing approaching this presently exists.
Organisation is treated like a machine and so making each individual. That is why. For instance. F. 3. fixing everybody’s work for the day and functional formanship.W. in one way or the other. we shall discuss the ideas of several contributors such as Taylor. 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. can increase efficiency. Fayol. (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. working in the organisation efficient. Taylor emphasized on division of labour. Taylor’s scientific management has been referred to as ‘machine theory’. 4. The classical organisation theorists dealt almost exclusively with the anatomy of formal organisation. All these thinkers were dissatisfied. It was Henri Fayol who showed concern for efficiency at the higher levels for the first time. Luther Gulick. In this theory. and Max Weber. 6. 30 . It may be noted that scientific management group emphasized efficiency of lower levels of organisation. Classical (Traditional) approach: 2. 5. with the organizational practices of their time.EVOLUTION OF MANAGEMENT THOUGHT: 1.
Classical theory is in its essential character centralized. informal groups and inter-organisational conflicts in the formal 31 . f. classical theory assumes man to be relatively homogenous and relatively unmodifiable.Features: The classical theory is more or less mechanical in nature as is revealed by its following features: a. 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. c. psychological and motivational aspects of human behaviour. g. Stability of the employees-stability in the sense of minimizing changes within the employees-is a goal in the organisation. defined tasks and accountability and formalized procedures and practices to minimize conflict between them. The worker is essentially an ‘economic man’ who can be motivated basically by economic rewards. e. conflict and failure and thus made ‘man’ subordinate to the organisation. (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. having no interaction with the environment. The relationship between workers and management is established through formal communications. d. which has interaction with the environment. This assumption of classical writhers led the workers to frustration. Classical organisation theory is built around an accounting model. This assumption is totally unrealistic. Human behaviour is most unpredictable and complex. and the integration of the system is achieved though the authority and control of the central mechanism. b. that is. This approach to the organisation is the embodiment of the extra pair of hands concept. Money is considered the main motivator under this theory. (c) Inadequate emphasis on human beings: the interplay of individual personality. In designing the hob and in picking the extra pair of hands. A modern organisation is an open dynamic system.
Peter Drucker. Ernest Dale. Moreover. and (iii) different functions of the same organisation. 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. It visualizes a machine model of organisation characterized by impersonal control over human beings. suggested strict adherence to rules and regulations. which are actually contradictory with other principles. For example. Bureaucratic behaviour: Weber’s ‘ideal’ bureaucracy. The theory of bureaucracy is based upon hierarchy of authority and web of rules and relations.(d) (e) (f) (g) structure appears to be neglected by the classical writers. Bennis feels that the focus of classical theory is on ‘organisation without people’. Non-monetary factors like better status and job enrichment can also motivate the workers. Economic rewards as main motivators: the assumption that people at work can be motivated solely through economic rewards is also wrong. a major constituent of classical theory. The scope for individual initiative and their contribution to the organisation goal is thus limited. Over emphasis on universality: classical theorists have claimed that these principles have universal application. have also criticized universality concept. Hierarchical structure: the classical theory is based upon the hierarchical structure that establishes the authority relationship between individuals in an organisation. The empirical researches. however. Bureaucracy: According to the name bureaucracy theory was evolved by the German sociologist Max Weber (1864-1920). there are many of the principles. principle of specialization is quite in conflict with the principles of unity of command. It attempted to prescribe the ‘right’ organisational structure. This suggests that the same principles can be applied in: (i) different organisations. Characteristics: (a) A well-defined hierarchy of authority with clear lines of authority and control and responsibility concentrated at the top of the hierarchy. suggest that none of the principles has such characteristics. The classical writers did not explore why certain forms of organisational structure are more effective than others. This was a very narrow approach as it concentrated only on line and staff structures. (ii) different management levels in the same organisation. 32 . Several researches in human behaviour have contradicted this assumption. etc.
They often breed resistance to change. and the standard against which other organisations would be compared. The bureaucracy. All documents have to be maintained in their draft and original forms. unbending. and inefficiency. adequate procedures and rules. 4. Promotions in real life can result from “whom one knows” and “how one plays the organisation game” rather from technical ability. stationery and space. it immediately brings to mind visions of a ponderous. Recruitment of managers on the basis of ability and technical knowledge. A division of work based on functional departmentation. Impersonality of relationships between employees.” was one of the first theories of organisation. A centralized system of written documents (“the files”) for collecting and summarizing the activities of the organisation. and some centralization was and is clearly better than having no organisation at all. A definite system of procedures for dealing with the work situation and “rationally” coordinating activities. meaningless hurdles. 3. Having some specialization. 33 . as every decision must be put in writing. A system of rules covering the rights and duties of employees.(b) (c) (d) (e) (f) (g) (h) A high degree of specialization. Weber hoped that would be used to understand how and why organisations were structured as they were. Competent people may be denied promotion. But Weber’s bureaucratic model quickly became synonymous with a rigid. an exaggeration. inflexible structure manned by “robots”. Various grounds of criticism of bureaucracy are as under: 1. But like most “ideal” forms of anything it was an extreme. This leads to great wastage of time. The specialization of labour often inhibits effective communication among technical specialists and between higher and lower levels of the organisation. slowly moving organisation-one steeped in red tape. Criticism of bureaucracy: Today when we hear the word “bureaucracy”. 2. The procedures and rules sometimes encourage organisational members to act mechanically rather than exercising initiative and using their inherent creativity. It was a theory. Bureaucracy involves excessive paperwork. or “bureaucratic model.
It is hard to destroy bureaucracy even if it has outlived its utility. 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. he wanted to apply scientific reasoning to management.S. In short. Bureaucratic procedures involve inordinate delays and frustration in the performance of tasks. Taylor conducted a series of experiments over a period of more than two decades.W.W. 6. Personnel in a bureaucracy tend to use their positions and resources to perpetuate self-interests or the interests of their sub-units. U. he joined Bethlehem Steel Company where he introduced scientific management. Taylor scientific management means managing the affairs of an organisation scientifically in contrast to the rule of thumb approach. bureaucracy has become an integral feature of modern organisations. He was the first person who insisted on the introduction of scientific methods in management. which is known as ‘scientific management’.A. increase the efficiency of workers and provide for functional management. he experimented in different fields to eliminate wastage of all types. It cannot be wished away. the main objective of scientific management was to eliminate wastage and increase the all round efficiency in the working of the organisation. speed metals and the like.5. That is why. Other experiments related to the way men handled materials. perpetuated and multiplied for their own sake as also to pass the buck. He is regarded as the father of scientific management. Taylor’s scientific management (1856-1916): F. therefore necessary to overcome its negative aspects through proper application of rules and regulations. machines and tools which led him to the development of a coordinated system of shop management. The procedures are nevertheless valued. He experimented with machine tools. One of his experiments led to the discovery of high-speed steel. Taylor is regarded as the father of scientific management. He was born in 1856 in Philadelphia. 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. and reconciling the individual needs and organisational goals. It is. After leaving Midvale Steel Works. Despite its drawbacks. which made him very popular. F. Taylor was a man of strong will and convictions. He launched a new movement in 1955. Every superior ties to increase the number of his subordinates as if this number is considered a symbol of power and prestige. He was 34 . According to him.
Thirdly the best way of doing the work and a last maintaining standard working conditions and providing standard tools and equipments. training of the workers: this principle suggests that skills and experience of the workers must be properly matched with the jobs. 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. E. So management should create suitable working condition and resolve all problems scientifically and the workers should perform their job devotedly and use the resources efficiently. it may be pointed out that the last two works were combined in one book entitled ‘scientific management’ in 1947 by Harper and Brothers. 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. 1. 5. 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.highly opposed by the management and the workers and his services were terminated unceremoniously in 1901. it focused attention on his philosophy on management. 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. training be given if required and their capabilities should be developed to the maximum. 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. 2. Scientific selection. Taylor presented his first paper entitled “Shop management” was published in 1903. 3. 35 .g. which they have performed. Close co-operation between workers and management (cooperation. Taylor’s principles of management: Taylor developed a number of principles of scientific management. 4. Science. So selection should be based on tests and interviews in specified field. 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. Secondly fair days work of the workman be determined. we should think before doing. For this purpose first normal time required to perform a job should be determined.
6. He ignored certain other essential aspects of management like finance. As a consequence management became the study of shop management while the more general aspects were overlooked. Taylor and his associated concentrated on physical and economic needs and over-looked the social and ego needs of people. Workers also want job satisfaction. 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. 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. Criticism of scientific management: Taylor’s work was criticised on the following grounds: 1. Scientific management is quite limited in scope. Increase in work speed: in scientific management the workers are supposed to work with more speed. participation and recognition. 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. It focused attention completely on efficiency at the shop floor. Scientific management has thus been described as a theory of industrial engineering. 7. But this is not feasible in practice as it violates the principle of unity of command. 5. 2. which affects their health. 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. 3. 9. 8. Later experience has revealed that financial gain is not the only thing that matters. 36 . 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. accounting and personnel. 6. marketing. 4.
This makes the work monotonous and worker lends to lose interest in his job. OR 1. 5. 12. Lack of initiative: no chance is left to show their ability only a mechanized process of work is followed. Loss of workers skill and initiative: he workers had to work according to the instructions of the foreman. Lack of employment opportunities: more work by lesser worker thus reduces the chance of more employment. Unemployment: Scientific management reduces the number of processes and motions of workers. 2. without much regard for their health and safety. Comparatively. 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. 37 . Weakness of trade unionism: scientific management reduces the role of trade unions as standards of outputs. Every worker is expected to perform his small part of a job due to specialization. it creates unemployment by requiring lesser number of workers. 11. They further allege and too much of standardization. increases their efficiency by standardization and decision of labour. due to loss of workers initiative it results into lower productivity. There is little scope of bargaining on this ratter. Speeding up of workers: workers feel that scientific management is nothing but a device to force workers to a greater speed. The differential piece-wage divides the worker into efficient and inefficient. Exploitation: workers are not given their due shares in the gains due to increased productivity of the enterprise. It cuts the roots of trade union movement. as workers have to carry out the instructions of their functional basis. thereby. a pre-requisite for scientific term. efficient workers get more wages as compared to the inefficient ones due to the differental wage incentive scheme. It creates a lot of physical and mental strain on them. 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. This leads to loss of initiative from the workers and they cannot suggest better method of work. 3. 13.10. 4. Monotony: under this function of planning is separated from that of doing. 6. Scientific management may lead to accuracy. increases the hourly or daily output per worker. Discrimination between workers: under this. wages and working conditions are determined on scientific bases.
5. But by rest he will regain stamina. Standard. E. 4. quality.7. So this concept is opposite of the principle of unity of command. 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. Fatigue study: according to this technique management should determined the amount and frequency of rest intervals in completing a task. . Standardization of work: according to this technique standards should be fixed at every level. weights and other measures should be fixed. Techniques or elements of scientific management: 1. Method study: there may be various methods to perform a job with different cost requirements. 3. The inefficient worker will also try to do to the maximum of his 38 2. Standard working conditions are provided at work place. 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”. Functional foremanship: Taylor believed that a single foreman might not be competent to supervise all functional matters. Undemocratic in nature: workers object that scientific management is undemocratic in nature as it gives absolute control over workers to the functional bosses. E. shoes may be manufactured manually or by machines. Functional foremanship involves supervision of a worker by several specialist foremen.g.g. Standard performance of machines in a standard time. 6. E. 8. standard tools and equipments should be provided to the workers. So that the jobs can be performed efficiently. 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. Small-scale units cannot afford to introduce the scheme of scientific management. So the organisation should try to find out the best way to perform the task. The workers have to follow the instruction of the bosses without thinking on the part of the workers. Unsuitable for small-scale unit: some employers are of the opinion that scientific management is only suitable for large-scale units. which ever costs less be adopted. 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.g. size. Standard time required performing a unit of job and standard working hours of a fair day. Simplification will certainly improve the efficiency resulting more production and reduction in cost and wastages.
his long practical experience Fayol developed a general theory of management. 5. Commercial.7. 2. Its purpose is to determine the best way of doing a job by eliminating the wasteful motion. Through. Time study: time study is a technique. and Managerial. Time study is conducted with the help of stopwatch. Micro chronometer is the tool of study. Security. Accounting. He published a book. Financial. 8. He gives a lot of principles of management which are explained below: 39 . which was translated into English in 1929 under the title “general and industrial management”. which will further reduce the fatigue resulting improvement in efficiency. 9. 4. Mental revolution: working of the subordinate and superior is based on whether they are mentally prepare for doing the job or not. capacity and so the habit of doing the best and more in an efficient manner is develop. Fayol began by dividing all industrial activities into six groups: Technical. 1. Administrative theory: Henri Fayol was a French industrialist. 3. which is used to measure/determine the time that may be taken by workmen of average skills/ability to perform a job/task. 6. On the other hand management also should have no concept that the workers have a tendency of miss use of tools and equipments. “administration industrial general” in French in 1916. resulting wastages. Motion study: motion study is a technique. 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. Purpose of time study is to determine standard time required to perform a specified job and so fair days work/workman. which involves close observation of movements of body and limps required to perform a job. He joined a French mining company in 1860 as an engineer and rise to the position of its managing director 1888.
6. Some times orders. Responsibility on the other hand. 7. Scalar chain: it includes the chain of superiors from the top to the lowest rank in management. and coordination”. 4. 2. directions. complain got delate. Division of labour: division of labour means dividing the work among members of organisations. a subordinate should receive orders and be accountable to one and only one superior. 9. Discipline: discipline in the context of management means obedience that is complying with rules and regulations of the organisation. Each manager is superior to the manager below him but he is also subordinate to his own superior. It increases the efficiency of individual employee. According to this principle each superior is to provide direction or instruction to immediate subordinate and subordinate to suggest or to complain to his immediate superior. 8. should be asked to receive orders and instructions from more than one superior. individuals should give up their personal interest in the interest of the enterprise. According to which two employees at the same level can communicate each other directly. Centralisation and decentralization: when top management retains most of the decision making authority. 5.1. sharing authority downwards leads to decentralization Fayol says that an organisation should strive to achieve a balance between centralisation and decentralization. Fair remuneration to employees: remuneration of employees should be fair and reasonable wages should be determined on the basis work assigned cost of living. No employees therefore. 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. In other words. But each one of them must inform to his own superior. This principle ensures “unity of action. is called centralisation. 3. While communicating because of the strict compliance of scalar chain. means obligation with respect to the performance of functions and achieving goals. Parity of authority and responsibility: authority and responsibility are two sides of same coin. 40 . It leads to specialization. and financial position of the business. Unity of direction: efforts of all the members of the organisation should be directed towards common goals. There must be parity between authority and responsibility. Unity of command: according to this principle. Subordination of individual interest to general interest: the interest of the organisation must precedence over the interest of individuals. suggestion. Therefore the avoid the delays Fayol suggested the concept of “gang plank”.
incentives and dimensions provided to the employees help in reduction of absenteeism and frequent turnover. 12. 2. 14. study etc. Thus this principle. Difference between Taylor’s scientific management and Fayol’s principles: Sr. 6. and placement of people called social order. time and motion adopting certain principles. Stability of tenure of personnel: this principle stresses on the stability of terms of employee on the job and in the organisation. 11. comparatively flexible. Focus Its focus is increasing Its focus is to improve over productivity by way of works all administration by simplification. Initiative: the employees at all levels should be given some freedom to adopt techniques and methods to accomplish their tasks. It increases zeal and belongingness. 4. management and moved downward. Group efforts are more effective than the total of individual’s efforts. and provides efficiency teamwork and loyalty. which is called material orders. Order: this principle is important to make the best use of personal and to avoid unnecessary delay in work. This will create initiative and enforce efficiency. OR 41 . therefore emphasis the need for team works. 3. personal experiences.10. 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. Beginning Taylor begins from lower Fayol begin from top worker and moved upward. Fir wages recognisation of work. Employees should not be moved from their positions frequently. Basis of Taylor’s scientific management Fayol’s principle no. Level of Taylor gave importance to the Fayol gave importance to management operating level. Esprit de corps: these French words are the synonyms of English proverb “union is strength”. Rigidity Taylor’s principles are Fayol’s principles are comparatively rigid. Purpose To increase the productivity of To develop general theory (contributio workers by eliminating the of administration. The principle is concerned with arrangement of things. the top level. n) wastes. 13. 5. difference 1. Results Its results are based on Its results are based on scientific observation.
2. Fayol attempted to develop a universal theory of management. Illumination experiments: workers were divided into two groups. On the other hand. He. Fayol analysed management from the angle of top management downward. 42 .1. therefore. Taylor looked at management from the supervisory viewpoint and tried to improve efficiency at the operating level. Taylor called his philosophy scientific ‘management’ while Fayol described his approach as “general theory of administration”. from 1927-1932. other group was placed in a different room where the light was deem. One group was placed in a room where lighting remains constant. But Fayol concentrated on the functions of managers and on the general principles of management. 4. As there was freedom of work. 5. During the course of experiment a series of changes were introduced such as piecework. These experiments revealed that there was something more than illumination. The aims of Taylor were to improve productivity of labour and to eliminate all types of waste through standardization of work and tools. shorter working hours and least rest hours. Contrary to the hypothesis of scientific management. Taylor developed techniques of management through scientific observation and measurement of workers operations. But Fayol tried to develop universal truths or principles from personal experiences. Relay Assembly Test Room Experiment: in this a group of six female workers was asked to work in a separate room. which could be equally applied to all spheres of human activity. He and his team eared out the famous Hawthorne Experiments. rest pauses. had a broader vision and a wider perspective than Taylor. 2. He moved upwards while formulating his theory. The researchers conclude that the productivity increased due to a change in the girl’s attitudes towards work and their groups. production increased in both the rooms. Taylor focused his attention on factory management and his principles are directly applicable at the shop floor. He also stressed upon the need for teaching the theory and practice of management. HUMAN RELATIONS APPROACH: This theory was given by GEORGE ELTON MAYO (1880-1949). which affected productivity. these experiments were conducted in the Hawthorne plant of western electric company in Chicago (USA). with emphasis on coordination. they developed a sense of belonging and responsibility. 3. These experiments may be classified into four stages: 1.
supervision and the company. 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. Morale and productivity go hand in hand in an organisation. which he supposed to be incharge. it is ultimately cooperative attitude and not the mere command. Employees in any organisation get satisfaction not by economic incentives but by the satisfaction of many other social and psychological wants. 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. the workers often do not act or react as individuals but as members of groups. 5. (c) Workers are influenced in their demands by experiences both inside and outside the factory. There is an emergence of informal leadership as against formal leadership and that sets and enforces group norms. 2. desires and so on. Mass interviewing programme: the researchers conducted thousands of interviews to determine the attitudes of employees towards their job. The group plays an important role in determining the attitudes and performance of individual workers. The group was restricting the output of individual worker through various forms of social pressure. 43 . the result was different. 3. Fourteen workers constituted the work group on piecework basis. which yields results. (d) Departmental records were distorted due to differences between actual and reported output or between standard and reported working time. 4. (c) Individual output remained fairly constant over a period of time. 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. However. feelings. The hypothesis was that each worker would produce mare. 7. At the workplace.3. Conclusions of Human Relation Approach: 1. Management must aim at developing social and leadership skills in addition to technical skill. (b) Worker’s complaints are not necessarily objective statements of facts. 4. The business organisation is a social system. (b) The group had its own “unofficial” standards of performance. In an organisation. 6. 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. The findings of Bank wiring experiment included: (a) Each individual was restricting output. working conditions.
2. Comparison of Scientific management and Human Relations Approach: 44 . He may behave irrationally as far as rewards from the job are concerned. therefore. It puts all the emphasis on interpersonal relations and on the informal group. most of the human relations theory and practice are based on a relatively few observations of some small samples of human beings at work. The human relations approach overemphasizes the group and group decision-making. continued for an adequate theory. 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. 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. Mayo and his associates focused their attention on interpersonal relations. The human relations approach lacks adequate focus on work. The most serious criticism made of the Hawthorne studies related to the research methodology employed. 5. But in practice. For example. Man’s approach is not always rational. and criticism of the Hawthorne began to arise. Criticism of Human Relations Approach: 1. groups may create problems and collective decision-making may not be possible. Man is diversely motivated and socio-psychological factors act as important motivators. leadership skills.8. Money is only one of the motivators. group dynamics. In an admittedly radical criticism. 9. but not the sole motivator of human behaviour. 4. The search. It tends to overemphasize the psychological aspects at the cost of the structural and technical aspects. human motivation and so on. This assumption does not hold good in practice. It is assumed that all organisational problems are amenable to solutions through human relations. 3.
his needs and behaviour. he is a complex individual. Scientific management Propounded by F. Taylor. Interdisciplinary and multi-dimensional approach to worker behaviour organisation behaviour involves the study of the attitudes. Originated from the experiments of Taylor in dealing with the problems of factories. motivation and employee morale. The main concepts are job satisfaction. motivations. scientific selection and training of people and mental revolution. Focused on the study of the productivity problems of industry. It discarded the engineering approach. Human Relations Approach Propounded by Elton Mayo. 2. Behavioural approach started in 1930. 5. Scientific management is a part of classical theory of organisation. Human relations movements: Hawthorne expressed it. (b) The role and contribution of organisation behaviour in workers. 1. Suggested an engineering approach to management problems. BEHAVIOURAL SCIENCE APPROACH: The behavioral approach focuses on the psychological and sociological processes (attitude. 6. 2. The main concepts are scientific task setting. 3. Two branches contributed to the Behavioural approach. No. This gave rise to the Behavioural approach.Sr. Originated from the Hawthorne experiments conducted by the psychologists and sociologists. Suggested human relations as a method of achieving higher productivity.W. It respects a more. Development of organisational behaviour: pioneers of the human relation movement stressed inter-personal relations and neglected the group behaviour patterns. 1. While the classical approach focuses on the job of workers. the behavioral approach focuses on the workers in these jobs. Workers desisted the formal and impersonal approach of classical writers. It applied scientific method. 4. Human relations approach represents neo-classical theory of organisation. This led to the development of field of organisational behaviour. behaviour patterns and performance of individuals and group in an organisational setting. Focused on the study of individuals. It says that: (a) Man is not a social individual. 45 . group dynamics) that influence employee performance.
perception and value systems. 4. but certain ideas were extended and others highlighted by the behavourial scientists. which may differ from the organisation’s needs and goals. But he will readily do so if the group decides to change its behaviour. leading etc. 5. fire. 3. When first needs are satisfied then person moves to second---------so on. People working in an organisation have their needs and goals. prestige etc. Some of the important elements of the behavourial science approach are highlighted below. affection. clothing. 1. shelter etc. Individual behaviour is closely linked with the behaviour of the group to which he belongs. A person may be inclined to resist pressures to change his behaviour as an individual. Physiological needs: these needs are related to the survival and maintenance of life. . Social needs: these needs include need for love. friends and other social groups. accident. belonging or association with family. Many of the conclusions of the Howthorne studies were reaffirmed by the subsequent research studies. (d) Man is a self-actualizing being. Self-fulfillment: it is the need to fulfill what a person considers to be his real mission of life. achievement. Contributions of Behavioural science approach: The behavioural science approach is concerned with the social and psychological aspects of human behaviour in organisation. security against unemployment etc. 2. they react differently to the same situation. individuals belonging to that group will resist change more strongly. Maslow is of the opinion that these needs have a hierarchy and are satisfied one by one. These include food. 3. Management should achieve fusion between organisational goals and human needs. Safety needs: these consist of safety against murder. power. Therefore. Individuals differ in terms of their attitudes.(c) It discussed the psychological variables like motivations. Classification of human needs by Maslow as under: 1. is more important for setting and enforcing group standards of performance. Ego or esteem needs: these are the needs derived from recognition status. rather than the formal authority of supervisor. 2. Informal leadership. As a leader 46 4. With work standards laid down by the group.
If the subordinates are encouraged to participate in establishing the goals. game theory. The management science approach was evolved after the Second World War. It is for the managers to identify and provide necessary conditions for the human potential to be used in the service of the organisation. Thus. It offered systematic analysis and solutions to many complex problems faced by management in the real world. Changes in technology and methods of work. Insights evolving from that understanding have been used to design work situations that encourage increased productivity. MODERN APPROACH: (QUANTITATIVE OR SCIENCE OR MATHEMATICAL APPROACH) The quantitative or mathematical approach to management developed in the 1950’s. 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. By nature most people enjoy work and are motivated by self-control and self-development. queing. there will be positive effect on their attitude towards work. It has enabled organisations to formulate programmes to more efficiently train workers and managers.5. which the effective manager should profitably understand. which are often resisted by employees. More commonly used OR techniques are linear programming. The quantitative school of management is also called operations research (OR) management science. it is individuals and groups with which a manager is concerned and while organisational roles are designed to accomplish group purposes. simulation and probability. and it has effects in numerous other areas of practical significance. After all. particularly in decision-making or complex problems. with these quantitative decisions making tools are called ‘operations research’. 47 . The behavioural scientists have shown how human beings bring to their task aspects of behaviour. (manger) may be more effective and acceptable to the subordinates if he adopts the democratic style of leadership. can be brought about more easily by involving the employees in planning and designing the jobs. It involves the application of sophisticated quantitative/mathematical techniques for solving managerial problem. Mathematical and statistical tools are now applied in the field of management. people must fill these roles. The manager’s attitude towards human behaviour should be positive. Together.
research. 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. It utilizes mathematical symbols and relationships. 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. 7. SYSTEMS (MODERN) APPROACH: Systems approach to management developed after 1950. and R. Mathematical symbols can be used to describe managerial problems. The quality of managerial decisions determines organisational efficiency. AK Ria.A Johnsm have made significant contributions to this approach. 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. 6. 2. 5. schedules and deadlines etc. Mathematical tools. Many pioneers during as E. 4. F.L Trist. Mathematical modes can be developed by quantifying various variables of the problems.The management science approach differs from the classical and behavioral approaches in several ways. 8. like cost reduction return on investment. 3. Its distinguishing features are given below. Management is concerned with problem solving and must use mathematical tools to solve them. 1. 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. simulation and model buildings are used to find out solution to managerial problems. Therefore management information system and other technique should be used for making rational decisions. 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. 48 . operations. Kast. a manager can test different values of each variable until an acceptable solution is found. Mathematical models: a model is a simplified representation of a real life situation.E.
1. Systems approach to management provides a conceptual basis as well as guidelines for establishing a more efficient system for planning. which separates it from other systems. Information. Organisation is an open system and it interacts with its environment. From its environment. It emphasizes the inter-relatedness and inter-dependence of all activities within an organisation. Features: An organisation consists of many sub-systems. It attempts to identify the nature of relationships of various parts of the system. An organsiation is a system consisting of many interrelated and interdependent parts or sub-systems. 9. 8.). 49 . These elements are arranged orderly according to some scheme such that the is more than the sum of the parts. directing and controlling. As a system an organisation draws inputs (energy. Information is an important part of the system because an organisation must act and interact with its environment. The attention should be given so overall effectiveness of the system rather than effectiveness of any sub-system if isolation. It is based on system analysis. Every system is a part of a super system. 3. 7.1. 5. 6. It is vulnerable is the changes in environment. An organisation as a system has five basic parts: Input. The sub-parts should be studied in their enter-relationships rather than in isolation from each other. 2. Output. It determines which parts are internal and which parts are external. etc. The organisation is responsive to environmental effect. The organisation provides a boundary. 2. 4. Feedback and Environment. An organisation is viewed by the modern authors as an op0en system. It is also a dynamic system ass the equilibrium in it is always changing. It took where management process school left off in attempting to unify management theory. It forces the manager to look upon his business as an open adaptive system. A system is a set of inter-connected elements or component parts to achieve certain goals. 4. 5. organisation. It transforms these inputs and returns the output back into the environment in the form of goods and services. All the sub-systems are mutually related to each other. Process. materials. 3.
managerial action is contingent upon external environment. What a manager does depends upon a given situation and there is an active interrelationship between the variables in a situation and the managerial action. . 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. The basic idea of this approach is that number management technique or theory is appropriate in all situations.10. 2. 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. For example the process theorists often assumes that strategic planning applies to all situations. Management is multidisciplinary as it draws and integrates knowledge from various disciplines. Open system: continually interacts with its environment. There is no one best approach for all situations. All living systems are open system. In other words. behavioural. 11. The main determinants of a contingency are related to the external and internal environment of an organisation. 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. There is no one best approach to management and it all depends on the situation. Contingency theory attempts to analyse and understand these interrelationships with a view towards taking the specific managerial actions necessary to deal with 50 1. Management is expected to regulate and adjust the system to secure better performance. quantitative. The often assumed that their concepts and techniques have universal applicability. The contingency approach does incorporate the environment and attempts to bridge this existing theorypractice gap. and the system advocates tend to emphasize the need for computerized information flows in all situations. the behavioural theorist usually advocates participative goal setting for all superior-subordinate pairs. The process. and systems approaches to management did not integrate the environment. and the practitioners accuse the theorists of being unrealistic. Systems are of two types: Closed system: if closed system has no interaction with the outside world. the quantitative experts generally feel that linear programming can be used under all conditions. The theorists accuse practitioners of not applying the technique properly.
3. But both these viewpoints are not mutually exclusive. with the purpose of developing a practical answer to the question at hand. Managers should understand that there is no best way of managing. This approach is both analytical and situational. Internal environment: technological-constraints. technology and political factors. But they have pointed out that the systems approach does not adequately spell out the precise relationship between organisation and its environment. Management policies and procedures should respond to environment. The contingency theorists accept open adaptive nature of the organisation and the interdependency between various subsystems of the organisation. Superiority of contingency approach: Clear-cut emergence of contingency approach was noticed after the popularization of systems approach. task constraints. Management is entirely situational. There is no best way of doing anything. The systems approach takes a broader view of organisational variables and employs a comprehensive model of human beings. One needs to adapt himself to the circumstances. It takes into account the full range of human needs and motives. people constraints. 8. There are three major elements of the overall conceptual framework for contingency management. 6. 1. 2. It is a kind of “if” “then” approach. 5. External environment: economic. 4. 7. It dispels the universal validity of principles. On the other hand. It is a practically suited. management concepts and techniques and the contingent relationship between them. the environment. They should be treated as complementary to each other. They have tried to modify and operationalise the system framework. It is too abstract and difficult to apply in practice. social. The manager should use systems and other approaches under the framework of contingency approach. 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. 51 . contingency approach is concerned mainly with the structural adaptation of organisation to the task environment.the issue.
what managers do.a unique entity. This approach recognizes that there is a central core of knowledge about managing which exists in managements such as line and staff. level. Lays emphasis on the Identifies the nature of interdencies interdependencies and interactions and the impact of environment on systems and sub-systems. principles of management. Suggests deterministic solutions to Suggests probable solutions to management problems. dynamic equilibrium.COMPARISON OF SYSTEMS APPROACH AND CONTIGENCY APPROACH: Sr. action focused approach. OEPRATIONAL APPROACH: Koontz and O’Donnell suggest the operational approach to management and in doing so. management problems. committal on the universality of no one best way of managing. environment of the system. span of management.Rejects the universality of principles. Provides Provides a global theoretical model operational tools and techniques for for understanding organisation. 3. open system. must. organisation to establish patterns of homeostasis. 5. Suggests a comparative analysis of system boundary. and various managerial control techniques. Input-output process. i. organisational design and managerial style. Fit entropy and equi-potentiality are its between approach and situation is a main features. they have attempted to draw together the pertinent knowledge of management by relating it to the managerial job. similarities and differences. Main focus on internal environment Main focus on the external of the system.. Appears to be neutral and non. pragmatic and organisations at an abstract. Size Each organisation is to be studied as of the organisation. analyzing and solving problems. Treats all organisations alike. 52 . cultural setting are not considered. 1. Systems approach Contingency approach 2. synergy. A way of thinking about A down-to-earth. and its socio. managerial appraisal. 7.e. 4. patterns of departmentation. no. 6.
It also draws from other fields of knowledge and adopts within it those parts of these fields. and it also recognizes that application of science by a perceptive practioner must take this into account in designing practical problem-solutions. Operational management has a central core of knowledge not found elsewhere. decision-making. 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. communication. which are especially useful for managers. Eclectic means consisting of “what is selected” and this term has been interpreted to indicate taking the best from what is available in the management thought and working into it a single molded around the process framework as the central core. the approach recognizes that the actual problems managers face and the environment in which they operate may vary between enterprises and levels.Many other pertinent elements of knowledge are derived from other fields such as application of systems theory. featuring the basic framework of the process approach modified by certain theories from other appropriate schools of management thought.R. The operational approach is quite similar to the modified management process approach advocated by G. and mathematical analysis and practices. group behaviour and cooperative systems. motivation and leadership. 53 . It may also be called eclectic process school of management. At the same time.Terry.
Planning is a higher order mental process requiring the use of intellectual faculties. It is deliberate attempt to influence. Thus. Planning is a systematic attempt to decide a particular course of action for the future. and controls the nature. O’Donnell and weihrich. It is the process of determining a course of action. at specified cost. It is a process of thinking before doing. imagination. direction. Planning is a process. to bring about specified results. how it is to be done and when it is to be done. in a specified period of time. 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. “To plan is to produce a scheme for future action. It makes it possible for things to occur which would not otherwise happen. to where we want to go. Accounting to Koontz. “planning is an intellectually demanding process. so as to achieve the desired results. and foresight and sound judgment. extent. exploit.PLANNING AND DECISION MAKING: Planning: Planning is the process of deciding in advance what is to be done. remembering alwas that change (like decision) in any one sector will in the same way affect other sectors”. speed and effects of change. which involves anticipation of future course of events and deciding the best course of action. it leads to determination of objectives of the group activity and the steps necessary to achieve them. who is to do it. OR 54 . bring about. knowledge and considered estimates. 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. It may even attempt deliberately to create change. It helps to bridge the gap from where we are. it requires the conscious determination of courses of action and the basing of decisions on purpose.
industry. It consists: 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. what is to do in future. 1. to be adopted. 6.1. It provides a base for other managerial functions like organizing.e. 2. Forward looking: planning is never done for past but is done for the future to achieve certain objective. it is said that planning is thinking before doing. directing and controlling. whether it is of large scale or small scale and in all the department of organisation like purchase. It involves determinations of goals and the activities required to be performed to achieve the goals.e. So planning relates to creative thinking for the solution of various problems. in the absence of choice there will be no planning because then there is a single way of doing something i. however nature of planning differs from one department to another. 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. profession etc. marketing. 5. Planning is based on estimated future trends of social. 3. in other words. 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. Overall planning is deciding that in present. 4. 4. Primacy (basic function) of planning: it means planning is the basic function of all other managerial functions. Therefore. We can say that structure of all other functions depends on planning. Moreover changes take place in business environment and regular plans are made to face such changes. business. 5. production. i. economic and technological changes because it has to tackle the future requirements. 55 . 2. Involving choice (alternative): planning can be when there are two or more alternatives and the planner can make a choice for the best. 3. staffing. Continuous process: planning is an ongoing process. In other words we can say that Planning is a process of thinking before doing. finance department etc. Pervasiveness: planning is required in all sectors.
All other functions of management are designed its attain the goals set under planning. Flexible: there must be flexibility in planning.” The effectiveness of planning is measured in terms of what it contributes to the objectives: a plan is efficient if it. 11. As Billy E. although the character and breadth of planning will vary with their authority and with the nature of policies and plans outlined by their superiors. which is uncertain.7. Planning is a pervasive function of management: planning is a function performed by all managers. 14. 13. staffing. “plans forecast which actions will tend towards the ultimate objective… Managerial planning seeks to achieve a consistent. Planning is a primary function: planning is the basis or foundation of the management process. Planning is closely linked to objectives: each plan specifies the objectives to be attained in the future and the steps necessary to reach them. 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. Importance of planning: 56 . Efficiency of operations: planning is made with the objective of raising efficiency of operations but it is not necessary that efficiency will raised. and controlling are designed to support the accomplishment of enterprise objectives. when put into action. Planning is a highly skilful intellectual activity: it involves active use of higher mental process like thinking. coordinated structure of operations focused on desired ends. Goetz said. 12. because plans are always based on future. planning logically precedes the execution of all other managerial functions. leading. So the management should make continuous efforts to minimize the cost of wastage and improving the efficiency by use of latest change in technology. 8. 9. So flexibility will give a chance to make changes as per future requirements. 15. brings about the achievement of the objectives with the minimum of unsought consequences and with positive gains greater than the costs. 10. if may or may not. Planning is the fundamental premise of all management functions: as managerial operations in organizing. etc. innovation or creativity.
So efficiency of the worker will risen which will further result economy in production. manually or by machines) and the best alternative is decided by the management. Resultantly it reduces confusion and wastage of resources in the form of thinking at the time of doing. Leads to economy and efficiency: planning clarifies the work and its method of doing. It improves the motivation of workers also because they know clearly what is expected of 57 . Improves motivation: the effective planning system ensures participation of all managers. 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. which is more helpful in achieving the objective. business has to take various decisions by considering the available resources. 7. 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. 5. Such co-ordination of sub-ordinates and their departments will certainly help the organisation in achieving its objective. Provides basis of control: under controlling actual performance is compared with the planed performance (target/objective).g. Plans facilitate decision-making: to achieve the objective predetermined under planning. which improves their motivation.1. 9. It lays down objectives and standards of performance. So planning is the base of controlling process. Facilitates integration: under planning proper directions as per plane are provided to the subordinates. 6. 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. Facilitates control: planning facilitates the managers in performing their function of control.g. before coming of summer session producers started production for the products to be used in summer. 2. 8. 3. E. Planning facilitates control by furnishing standards of control. If job may be completed by using various alternatives (e. 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. which are essential for the performance of control function. 4. Resultantly they all make effort towards the achievement of preplanned objective.
he planning may fail if the following limitations. 1. LIMITATIONS OF PLANNING: Planning is an important function of management. Costs: formulation of plans involves too much cost which are in the form of time spend. but some times there is little benefit from in plan and than it becomes a burden for the institution. etc. Improves competitive strength: effective planning gives a competitive edge to the enterprise over other enterprises that do not have planning or have ineffective planning. 58 . Thus. Lack of accuracy: planning relates to future and future is always uncertain and so prediction about future is so much difficult. Moreover delay in decision will further delay the action. 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. 11. 2. Delay in actions: planning requires some time for thinking. However. anticipation of tastes and fashion of people and technological changes. 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. It will also help in avoiding duplication of efforts. It creates a forward-looking attitude among the managers.10. changes in quality. 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. 12. 4. This is because planning may involve expansion of capacity. All the activities are directed towards the common goals. them. 3. There is an integrated effort throughout the enterprise. If the plan is not useful than the amount or time spent on its formulation is a waste. money spent etc. changes in work methods. planning also serves as a good training device for future managers. Achieves better coordination: planning secures unity of direction towards the organisational objectives. 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. there will be better coordination in the organisation.
On the other hand over planned target beyond resources cannot be achieved even all effort both are the situation of improper plan. 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). He should be an active planner and should take adequate follow up measures to see that plans are understood and implemented properly. the result may not be good. If the management is not willing to spend on planning. Resistance to change is another important factor. 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. planners themselves do like change and on other occasion. they do not think it desirable to bring change. 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. the plans so produced may prove to be unrealistic. 6. This attitude makes the planning process ineffective. 11. But it is also true that. 10. Planning is a time-consuming and costly process: this may delay action if certain cases. 13. if sufficient time is not given to the planning process. Similarly. as it will create resistance on the part of the workers. Sometimes. Internal inflexibility in the organisation may compel the planners to make rigid plans: this may deter the managers from taking initiative and doing 59 . Human elements: planning are the results of thinking of human being.5. Information on the basis of which plan is formulated may not be free form bias or there may be some other errors which will further Reebok (problem) the better plan. 8. 12. Planning is a forward-looking process: the planner must possess the required initiative. planning involves costs of gathering and analyzing information and evaluation of various alternatives. is more than that of planning. 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. which puts limits on planning: It is commonly experienced phenomenon in many organisations. Secondly they do not think beside the plan and performs their activities like a machine without using their psychology. 9. 7.
Overall goals are the collective ends for which the whole organisation makes efforts to achieve. Objectives may differ from one organisation to another.g. 1. In other words it is desired and end result of an activity. natural havocs and may other factors are beyond the control of management. which an organisation wants to achieve.g. 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. single objective— maximization of profits. 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. Such persons are psychologically opposed to planning. They should not always be required to follow the procedures rigidly. 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. Objectives: objective is the ends towards which activity is aimed. E. An organisation may have single objective or multiple objectives. 15. Goals (Target): goal is a desired state of affairs. External stringencies are very difficult to predict. 2. multiple objective increase in profits with other better facilities to the customers and employees. So. There must be a time frame for the achievement of predetermines objectives. innovative thinking. They make the execution of plans very difficult. The effectiveness of planning is sometimes limited: because of external factors. goal of an automobile company may be to provide low cost and higher quality of automobiles to the public. which are beyond the control of the planners. But it should not be forgotten that dynamic managers always look ahead. Psychological factors also limit the scope of planning: some people consider present as more important than future because present is less uncertain. As per as possible objectives are expressed in miserable quantity and so these provide a path for planning. the planners must have sufficient discretion and flexibility in the enterprise. government controls.14. 60 .g. E. KINDS/TYPES OF PLANS: The term plan refers to a course of action determined in advance by the management. Sudden breakout of war. E. Long-term well being of the enterprise cannot be achieved unless proper planning is done for future. Goals may be of short term or long term in nature. Because planning is made for the achievement of any objective.
g. Policies: policies are general statements. procedures. Rules: rules are specific directions to perform an action or not to perform an action these are the directives to the people in organisation. Do that the objectives can be achieved. export and import procedure. which is less. rank of merit and them decision regarding admission. By way of training. To ensure that orders are handled in a specific way there must be a procedure. E.g. 4. policy of hiring a trained engineer or to promote from within the staff.g. In other words these guidelines (policies) helps the management for taking decision in proper direction to achieve the objective. Policy increase in taking decisions but within limits and so the decision depends on the authority given in the policy. policy of setting competitive prices. Methods: a method is a prescribed process in which a particular task is performed. 7. E. E. methods of valuation of stock-cost or market price. Rules are a set of instructions to be followed in a particular way. Procedures: the procedure is defined as pre-determined se2quence of steps to initiate action and complete the task. is consider in final accounts. rules etc. so that with the co-ordination of these we may become successful to implement this 61 . admission procedure in a school i. application in schedule time. methods. Rules are always in the form of order’s or directions and not in the form of request. 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. But fixing of schedule of vacations is the procedure. which are acceptable by the people. These are predetermining decisions these helps the managers in achieving the objectives. Moreover there are several methods like method of calculating depreciation. 5. to behave or not to behave in a particular way. There is no discretion in there application. Its specifies any best and efficient way of performing the task: . screening of facts/data’s. policy of quick after sale service with in three months from the date of sale. 6.e. 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. management want to expand the size of business by 70% so to implement this programme management must lay down certain policies. promotion.e. These are generally in writing and are impersonal in nature. which guide the thinking in decision making. Which method will be the basis of nature of business and once selected the method becomes a prescribed manner of performing a job. managerial decisions ae taken within the boundaries of rules.g. In business organisations rules are framed regarding recruitment. So procedure helps the management to rich its objective. finding them to do or not to do.3. When ever the decisions are within rules the person who has taken decision is safe and secured as he is working as per rules.
programme of making arrangement of finance required for expansion. programme of arrangement of trained workers required after expansion and so for the successful implementation behave to make a combination of goals. *Difference between policy and objectives* Sr. These are the guidelines helping in implementation of plans.e. of the organisation are directed. Policies are determined after plans it is only a part of plan. etc. Basis of difference Policy Type of plans Objective Policies are standing Objectives are the ends plans/guidelines for the towards which activities achievement objective. Budget: budget is a statement of exceptive result expressed in numerical term.8. employees and other resources. Policies Policy is a narrow concept than plans. programme. procedures. No. this over all process combination is known as programme. A primary programme may call for any supporting programme in above. 1. rules. material time. No. policies. E. 62 .g. 1. Budget always pertains to future it is prepared in advance and expressed in qualitative financial terms. 3. steps to be taken to perform these task. tasks. Plans a re helped by the policies to become successful. the programme i. 2. so budget is a finance and/or quantitative statement prepare and approved prior to a specified period. Budget is a single use plan and can be expressed in respect of finance. *Difference between plans and policies* Sr. Implementation of plan requires policy guidelines. Basis of difference Plans Scope Help Implementation The term plan is a wider concept that includes policy and several other actions.
lower managerial level. middle level and management of the lower level management. 4. implementation. It has wider scope. Policies are formulated at The owner or top-level top level. Policies are generally Procedures are generally formulated at top lay down by relatively managerial level. Scope for change Formulation Bridge Expression Discretion Scope Policies are the guidelines Procedures are the to decision making. Policies serve as bridge Procedure is a bridge between organisational between activity and its purpose and performance. place than policies. An organisation is There will be no function without policies. 6. outcomes. It has narrow scope. 3. 5. business determines objectives. activities in a specified period. 7. organisation without objectives. Policies have lower place Objectives have higher than objectives.2. Basis of difference Policy Guidelines Procedure 2. rigid. 1. 4. *Difference between policy and procedure* Sr. 5. Policy is expressed in the Procedure is expressed in form of general statement. Time limit 3. 6. 63 . specific stepwise sequence. No. Policies are the guidelines Objectives refer to the to achieve the objective. target to be achieved. Policies are relatively Procedures are relatively flexible. Basis of existence Purpose Place Formulation Policies go on until these Objectives are the ends to are changed and so no achieved by performing time limit. 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.
There is no discretion. Policies are flexible in nature. 1. 3. 1. Policies are guidelines to decision making. Rules relates to behaviour of individuals and groups. Basis of difference Rules Purpose Rules are meant for strict compliance and have a little concern with efficiency. Rules are generally backed by managerial. Methods are formulated on the basis of research and analysis. Method’s deviations does not attract penalty. 5. 4. No. Basis of difference Policy Nature Guidelines Flexibility Discretion It is a general statement in nature. 4. Methods relates to physical and other task.*Difference between policies and rules* Sr. These are rigid and should have no deviation. 2. Rules These are the most specific statement. Rules are formulated on the basis of legal requirement. for Deviation from rules will attract penalty. 2. No. These are guidelines to do and not to do. Formulation Penalty deviation Backed by Relationship Associated 64 . 3. Methods are backed by knowledge. Rules are associated directly with control. Methods are not directly associated with control. There is a scope of discretion of management for implementation. *Levels of planning* Methods Methods are meant for efficient performance. *Difference between rules and methods* Sr. 6.
It is concerned with ‘how’ of planning. oriented to functions and departments rather than to the organisation as a whole. This is because its attentions are usually devoted to the step-bystep attainment of the organisation’s main objective. It is concerned mainly.In management theory. The theree levels of planning are discussed below: 1. target of increasing profitability may be achieved by 65 2. While making plan and setting objectives management should make analysis of internal resources available with the business and arrangement of external resources. Setting organisational objectives: planning is total based on the objectives. 2. 3.g. there will be some overlapping of planning operations. top level planning is done by the top management. Third level planning: also known as operational or activity planning. It is confined to putting into effect the tactical or departmental plans.. board of directors or governing body. 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. Top level planning: also known as overall or strategic planning. But following are the common steps: 1. It encompasses the long-range objectives and policies or organisation and is concerned with corporate results rather than sectional objectives.e. not exclusively. it is done by middle level managers or departmental heads. i. in fact. though in practice there may be more than three levels of management and to an extent. In other words first of all objectives will be fixed and then we will make plan regarding how to gets success in achievement of such predetermine objective. it is the concern of departmental managers and supervisors. Second level planning: also known as tactical planning. . E. which an organisation wants to achieve by way of planning. it is usual to consider that there are three basic levels of planning. It deals with development of resources to the best advantage. It might be called the ‘what’ of planning. *Steps/Stages of planning* Planning is a process consisting many steps. but its nature is such that the time spans are usually shorter than those of strategic planning. with long-range planning. Top level planning is entirely long-range and inextricably linked with long-term objectives. It is. It is usually for a shortterm and may be revised quite often to be in tune with the tactical planning. external environments and corrective measures to face with the environment. List of alternatives to achieve the objective: there may be so many ways available with the business to achieve the objective.
E. 2. These should be economic (maximum use at minimum cost). These should be understandable. which of these alternatives is beneficial for business be adopted. 4. These should be in written form to avoid confusion. 5. decreasing cost.3. Choose the best alternative: after considering the list of alternatives and merits of each management has to decide which of these alternatives will be the best in consideration with the human and nonhuman resources available with the business.g. 7. *DICISION MAKING* Decision-making is a process of selection from a set of alternative courses of action. 5. *Features of good plan/policy/procedure* 1. E. introducing new product of better technology. 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.g. Follow up: once the plan is put into action it monitoring/supervision is equally important. 8. increasing sale. In the main time management should see whether we are going towards achievement of objective or not. which is consciously chosen for achieving a desired result. planning of recruitment and training of the man power etc. 6. These should be simple and clear. There may be some changes required before reaching the objective. if the business wants to produce according to objective there may be many supporting plans like planning of purchase of rawmateiral. 4. These should be purposeful and functional. A decision is a process that takes place prior to the 66 . rise in process etc. 6. These should be a periodic review and corrective measures to be taken. Formulation of supporting plans: supporting plans are those plans. These should really serve as guidelines to reach the objective. which is thought to fulfill the objectives of the decision problem more satisfactorily than others. which provides support to the main plan. It is a course of action. These should be flexible. 3. 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. Considering the merits and demerits of each alternative is also termed as development of premises of each alternative.
6. The essential elements in a decision making process include the following: The decision maker. wherein a manager selects a particular course of action from the available alternatives in a given situation. 6. if a decision is taken after thorough analysis and reasoning and weighing the consequences of various alternatives. The alternative courses of action. It involves a time dimension and a time lag. searching for alternatives and developing plans in order to find the best answer fo the decision problem. The environment in which the decision is to be made. and The final choice of the alternative. 2. 3. It is always related to the environment. 7. it is an act of choice. such a decision will be called an objective or rational decision. It is the end process preceded by deliberation and reasoning. Thus. The decision problem. 3. which take place before a final choice is made. Gross suggested three 67 . The objectives of the decision maker. Managerial decision making process involves establishing of goals. 5. It is a human process involving to a great extent the application of intellectual abilities. A manager may take one decision in a particular set of circumstances and another in a different set of circumstances. 1. It always has a purpose. 7. there may just be a decision not to decide. logical and thorough approach in decision-making process. actual performance of a course of action that has been chosen. defining tasks. *Process/Steps in rational decision making* Effective decision-making process requires a rational choice of a course of action. logical. Rationality is the ability to follow systematically. Therefore rationality is the ability to follow a systematic. Characteristics of decision-making: It is a process of choosing a course of action from among the alternative courses of action. thorough approach in decision making. 4. 5. In terms of managerial decision-making. 2. The outcomes expected from various alternatives. It involves all actions like defining the problem and probing and analyzing the various alternatives. Keeping this in view.1. 4. There is a need to define the term rational here.
whether it is strategic or it is routine. So long as the required information is not available. 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. (iii) consistency. It would not be an exaggeration to say that a decision is as good as the information on which it is based. the effectiveness of the decision may be jeopardized. Once the problem is properly defined then it will be easily solved. This will also have an adverse impact on the quality of the decision. The problem should be classified keeping in view the following factors: (i) the nature of the decision. the manager must also know how to use it. Analyzing the problem involves classifying the problem and gathering information. It should be seen what is causing the trouble and what will be its possible solutions. we require lot of information.. Thus. (iii) the futurity of the decision. 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. collection of right type of information is very important in decision-making. Diagnosing and defining the problem: the first step in decision-making is to find out the correct problem. (iv) the periodicity of the decision and (v) the limiting or strategic factor relevant to the decision. Needless to say. (ii) feasibility of means to the given end. Classification is necessary in order to know who should take the decision and who should be consulted in taking it. (ii) the impact of the decision on other functions. Before defining a problem. . He must decide what type of information he requires and how he can obtain this. It is not easy to define the problem. Collection of data: in order to classify any problem. He should collect all possible information about the problem and then decide whether it will be sufficient to take decision or not. So.dimensions to determine rationality: (i) the extent to which a given action satisfies human interests.e. Trying to analyse without facts is like guessing directions at a crossing without reading the highway signboards. Collection of facts and figures also requires certain decisions on the part of the manager. collection of information is not sufficient. 3. 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 68 2. It is not always possible to get all the information that is needed for defining and classifying the problem. the first important factor is the determination of the problem. i. In such circumstances. Steps of decision-making process are given below: 1. Without proper classification. any classification would be misleading. Analysis of problem: after defining a problem. It is also important to note that when one gathers the facts to analyse a problem. a manager has to identify critical or strategic factor of the problem. a manager should analyse it.
what the manager has probably not done is to force himself decision. He will have to take the help of certain mathematical techniques and electronic computers to make a choice among the alternatives. In choosing from among alternatives. manager can confine his search for alternative to those. Review of key factors: while developing alternatives. To decide to take no action is also a decision as much as to take a specific action. the next step in the decision making process is the development of alternative courses of action. if thorough. if there is an unnecessary post in the department. the more an individual can recognize those factors which are limiting or critical to the attainment of the desired goal. 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. which he can bring to the conscious level. a manager assumes that there is only one way of doing a thing. It should also be noted that fact finding for the purpose of decisionmaking should be solution-oriented. a manager is likely to be guided by his limited imagination. thus. which will overcome the limiting factors. The manager must lay down the various alternatives first and then proceed to collect fact. The ability to develop alternatives is often as important as making a right decision among the alternatives. It is a key factor in decision-making. Developing alternatives: after defining and analyzing the problem. various assumptions come to his mind. But most of us have definitely more imagination than we generally use. minimizing uncertainties. will often unearth so many choices that the manager cannot possibly consider them all. 69 . From this can be derived a key planning principle which may be termed as the principle of alternatives. It is imperative in all organisational problems that the alternative of taking no action is being considered. In such a case. can afford. Alternatives exist for every decision problem. Effective planning involves a search for the alternatives towards the desired goal. It is not always necessary that the alternatives solutions should lead to taking some action. Once the manager starts developing alternatives. It should also be noted that development of alternatives is no guarantee of finding the best possible decision. It such factors are properly identified. But sometimes. Without resorting to the process of developing alternatives. development of alternatives cannot provide a person with the imagination. which will help in comparing alternatives. the more clearly and accurately he or she can select the most favourable alternatives.4. It is rare for alternatives to be lacking for any course of action. the alternative not to fill it will be the best one. which he lacks. which is the best possible. The development of alternatives. 5. Nevertheless. For instance. but it certainly helps in weighing one alternative against others and.
The most common method is through intuition. the manager tests the solution under actual or simulated conditions. If a long and consistent effort is needed. The decision to be chosen should ensure the maximum possible economy of efforts. Peter Drucker has laid down four criteria in order to weigh the consequences of various alternatives. the preferable course of action is one that alarms the organisation that something important is happening.6. They are: (i) Risk: a manager should weigh the risks of each course of action against the expected gains. money and time. experimentation and research and analysis which are discussed as: (a) Experience: in making a choice. (ii) Economy of effort: the best manager is one who can mobilize the resources for the achievement of results with the minimum of efforts. It is utilized as the last resort after all other techniques of decision making have been tried. a ‘slow start gathers momentum’ approach may be preferable. The search for limiting factors in decision-making should be a never-ending process.e. However. choosing a solution that seems to be good at that time. Sometimes. In a real sense. it is the pencil and paper approach to decision making. This approach has proved to be of considerable help in many cases in test marketing of a new product. If the situation has great urgency. There are various ways to evaluate alternatives. Discovery of the limiting factor lies at the basis of selection from the alternatives and these are experience. But it is not always possible to put this technique into practice. What matters is the intensity of different types of risks in various solutions. primary attention must be given to those factors that are limiting or strategic to the decision involved. It can be utilized on a small scale to test the effectiveness of the decision. one will have to evaluate all the possible alternatives. (b) Experimentation: under this approach. a manager is influenced to a great extent by his past experience. constraints and premises that bear upon the goal sought. (c) Research and analysis: it is considered to be the most effective technique of selecting among alternatives. It involves a search for relationships among the more critical variables. For instance. (iv) Limitation of resources: in choosing among the alternatives. It weighs various alternatives by making models. a company may test a new product in a certain territory before expanding its scale nationwide. As a matter of fact. There is an inherent danger in this process because a manager’s intuition may be wrong on several occasions. (iii) Situation or timing: the choice of a course of a action will depend upon the situation prevailing at a particular point of time. i.. he can give more reliance to past experience in case of routine on his past experience to reach at a rational decision. It takes the help of computers and certain 70 . The second way to choose the best alternative is to weigh the consequences of one against those of the others. risks are involved in all the solution. he may give undue importance to past experience. Selecting the best alternative: in order to make the final choice of the best alternative. because it is very expensive. where a major decision is involved. He should compare both the situations.
mathematical techniques. Someone has described group decision like a train in which every passenger has a brake. (iii) If the decision is bad and one follows up soon enough. In order to make the subordinates committed to the decision. who discuss problems with their subordinates and give them opportunities to ask questions and make suggestions. The principle of slow and steady progress should be followed to bring a change in the behaviour of the subordinates. but also with its implementation. one will know what to do. The reasons for the following up of decision are as follows: (i) if the decision is good one. Follow up: it is better to check the results after putting the decision into practice. the next time. Moreover. what is expected of them and what they should expect from the management. This may bring to surface certain alternatives. 8. The manager is not only concerned with taking a decision. In order to make the decision acceptable. there is also a danger that a group decision may be poorer than the one-man decision. They should be encouraged to suggest alternatives. It is necessary for the manager to make the people understand what the decision involves. 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. they will feel attached to the decision. The area where the subordinates should participate is the development of alternatives. it is essential that they should be allowed to participate in the decision making process. it is desirable if a manager consults his subordinates while making decision. The managers. 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. which may not be thought of by the manager. At the same time. if faced with the similar problem again. 71 .7. It has also been pointed out that all employees are unable to participate in decision-making. Now the question arises at what level of the decision making process the subordinates should participate. but sometimes impairs it. Putting the decision into practice: the choice of an alternative will not serve any purpose if it not put into practice. Nevertheless. If the manager is unable to overcome this resistance. Participative management is more successful than the other styles of management. It will help in the effective implementation of the decision. corrective action may still be possible. This makes the choice of the alternative more rational and objective. (ii) If the decision is bad one. the energy and efforts consumed in decision-making will go waste. one will know what not to do. Group participation does not necessarily improve the quality of the decision. find more support for their decisions than the managers who don’t let the subordinates participate.
72 . This information will be very useful in taking the corrective measures and in taking right decisions in the future.In order to achieve proper follow up. the management should devise an efficient system of feedback information.
2.*LEADING MANAGEMENT CONTROL* Meaning of leadership style: It is a process of influencing the behaviour of other people to work willingly towards the achievement of organisational goals. It is a process of influencing the behaviour of followers by the leader. It involves existence of a leader and followers. attitudes and beliefs of their followers. 2. 4. Successful leaders are able to influence the behaviour. Here the person who guides or directs his followers is known as leader. A person is said to have an influence over others when they are willing to carry out his wishes and accept his advice. It involves advice and guidance to achieve some common goals. Leadership is the function of stimulation: leadership is the function of motivating people to strive willingly to attain organisational objectives. So leadership is an exercise to influence the behaviour of the followers towards attainment/achievement of specified goals. 3. It is a process of securing willingness to do the job as per guidelines of the leader. guidance and direction. 73 . A successful leader guides his subordinates to have their individual goals set by themselves in such a 1. Leaders are considered successful when they are able to subordinate the individual interests of the employees to the general interests of the organisation. 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 interaction between leader and his followers. *Features/Elements of leadership* 1.
and controlling) where as a leader performs only leadership functions which is just a part of directing. Where as a manager acquires powers due to delegation by his superiors. *Importance of leadership* 74 . Employees must be satisfied with the type of leadership provided: only short-term productivity of employees can be increased by pressure and punishment. This approach is not in the long-term interests of the organisation. When this congruency is achieved. which results in a decreased long-term productivity. At one point of time. however minor it may be. way that they do not conflict with the organisational objectives. gives them recognition and tells them about the importance of activities performed by them. That is why.3. it is said that leadership is always particular and not general. Leadership is related to a situation: when we talk of leadership. 4. the subordinates may accept the autocratic behaviour of the leader while at a different point of time and under a different set of circumstance. workers act enthusiastically to achieve these goals. Leadership gives an experience of helping attain the common objectives: under successful leadership. A leader need not necessarily be a manager. Force generates counter force. It happens when the manager feels the importance of individuals. Manager is more than a leader because he performs all the five functions of management (planning. it is always related to a particular situation. A good manager recognizes the fact that leadership is a shared function. opinion and experience. A good leader shares everything with his followers. Leader acquires powers due to acceptance of his role by his followers. staffing. he shares ideas. *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. particularly when subordinates are knowledgeable and competent. he shares credit. Long-term interests of the organisation are best served when managers allow subordinates to influence their behaviour. A manager can be more effective if he is a good leader. only participative leadership style may be successful. directing. 5. organizing. is vital to the attainment of organisational objectives. That means leadership styles should be different under different circumstances. he shares blame. at a given point of time and under a specific set of circumstances. every person in the organisation feels that his operation.
He takes initiative in all matters of interest to the group and attempts to fulfill the psychological needs of the subordinates. 2. Moreover leaders support and encourage the subordinates to meet particular situations. 10. By raising willingness leader helps in improving the productivity. the job satisfaction of employees also depends on the behaviour of their managers. He keeps 75 . Acts as a counselor: while taking various decisions by the management. Subordinates and the management should make collective efforts and give priority to the achievement of organisational objectives. Representation of workers: the leader is a representative of his group. 4. 5. 6. Leaders ensure that managers in organisation should adopt behaviour. This reduces the chances of conflict between them. 3.1. 11. So leader is a middleman between manager and worker. He acts as a guide in interpreting the goals and policies. Creates confidence: leader creates confidence among the employees by understanding and handling the situations as per proper requirement. which is acceptable to the subordinates. The relationships between them are clearly laid down. Helps in guiding and inspiring the employees: leader guides and inspires his subordinates towards higher performance and so helps in achieving the business goals. Achieving coordination: a leader integrates the goals of the individuals with the organisational goals and creates a commonality o interests. Sometimes individuals fail to recognize their qualities and capabilities than he provides psychological support to the followers by his conduct and expression. Enhances group efforts: leadership prepares the people at workplace to perform the job with mutual trust co operative and friendly manner. A satisfied human resource is always better than unsatisfied. Improves job satisfaction: effort from monitory incentives and better physical working conditions. Organisation of activities: a good leader divides organisational activities among the employees in a systematic manner. Overall these activities improve job satisfaction among the employee. Determination of goals: a leader performs the creative function of laying down goals and policies for the followers. leaders of the workers are also invited to act as a counselor of the subordinates. 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. 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. 8. 7.
2. himself informed about the working of the group and shares information with group for the coordination of its efforts. He depends blames and finds faults. 3. He believes in “We” and “you”. *Leadership vs. The leader shapes the thinking and attitudes of the group. He makes the work drudgery. 7. He knows all the answers. He fixes blames and funds faults. 13. 6. 14. He believes in “I”. He develops good human relations and facilitates interactions between the members of the group. 76 . 4. He consults and seeks advice. He maintains voluntary cooperation and discipline among followers. Facilitating change: dynamic leadership is the cornerstone of organisational change. An effective leader is able to overcome resistance to change on the part of workers and thus facilitate change. He makes the work a game. He engenders fear. managership* 1. 5. Manager Leader He drives and orders. He is available for advice whenever a subordinate faces any problem. He depends on his confidence and goodwill. Providing guidance: a leader guides the subordinates towards the achievement of organisational objectives. He solves problems. He coaches and advises. Building employees Morale: good leadership is indispensable to high employee morale. He inspires enthusiasm.12.
*Formal and informal leaders* It has been observed above that a manager should also be a good leader. But in actual practice, every manager is not able to provide the kind of leadership desired by his subordinates. This gives rise to informal leaders who do not hold any managerial post in the organisation. A formal leader, on the other hand, is one who possesses organisational authority to direct and control the activities of his subordinates. He can issue orders and instructions to his subordinates by virtue of his formal authority in the organisation. An informal leader is elected by the management, as in case of a formal leader. Sometimes, informal leaders become more acceptable to the workers as compared to the formal leaders. In such a situation, the formal leaders become the position-holders only. They are not able to achieve the voluntary cooperation of the workers in all matters. It is also true that a work-group may have different leaders for different purposes. The members of a work-group may be influenced by one leader while doing their jobs. But as regards their personal problems, they may go to another leader as far as their reaction is concerned. Management often tries to suppress informal leaders. But it should be remembered that the trouble they cause reflects the desires of the group. If they are suppressed, the workers may become more antagonistic to management, morale may fall even lower and new informal leaders may step to the fore. Therefore, it is better to work with informal leaders. There are many ways in which a manager can build up good relations with the informal leaders working with him. Among other things, he can pall necessary information to them first, seek their advice on technical and human relations problems, and assign them to train other. *Communication* It is the process of transmitting the messages and receiving the response of that message. 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. Since the feedback requires another message to be communicated by the sender to the receiver. So communication process become a circular process. “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. It is a continuous process of telling, listening and understanding. “George Terry” communication is an exchange of facts, ideas, opinions and emotions by two or more persons.
In simple words, exchange of ideas/messages, response there off in total is known as communication. Any method of communication like words—oral or written, pictures, graphs, diagrams, etc. may be adopted to communicate. Effective communication is that communication in which the receiver is understood actually what the sender wants to convey, and in the same form. ‘Noise’ is something, which has disturbed the effective sending and receiving of communication. *Characteristics/features of communication* 1. 2. 3. 4. 5. Co-operative process: it is a process of co-operation because two or more persons are required for the exchange of message i.e. sender(s) and receiver(s). Two way process: it involves both sending the message and receiving the response to that message. Communication is not completed unless the receiver of the message has understood the message and has given his response. Pervasive function: communication is necessary at all levels of management i.e. top, middle and lower level and also in all the depths of the organisation. Continuous process (circular process): it is a continuous process because transmission of messages is going on a continuous process. Flows in all directions: communication may flow upward and downward, between superior and subordinate, horizontally (gang plank) between persons of similar ranks or diagonally between persons at different levels. *Advantages/Importance of communication* 1. 2. 3. 4. 5. Facilitates planning: while making plans several ideas, problems, suggestions etc. are communicated for an effective planning system and so communication facilitates better planning. Helps in decision making: by providing the required information, 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. Facilitates co-ordination: flow of communication is in all directions results a better co-ordination in all level of management as well as all depth of organisation. Classifies authorities and responsibilities of various positions: by way of communication authority and responsibility of various posts/positions are conveyed (classified) to the position holder. Improves better relations among superiors and subordinates: by effective communication misunderstanding between superiors and subordinates
can be removed. Moreover clear and accurate information can be communicated at proper time resulting better relations between the two. Helps in motivating: communication helps in the process of motivation by sharing of information, consultation and discussion of various problems for prompt redressed/solution, quick solution of problems creates satisfaction resulting motivation towards work. Information regarding organisational rules: subordinates should be informed by communicating them, rules and principles of the organisation and any misunderstanding regarding there of must also be clarified. This will necessarily improve the acceptance of organisational rules. Facilitates directing function: communication makes a link between managers and workforce of the organisation resulting a continuous flow of directions, instructions, orders, suggestions, problems etc. so it facilitates directing function. Better public relations: by way of communication customers, suppliers, shareholders, govt. and society may be provided required information. Resulting better co-operation and good relations among all these groups. Improves efficiency: an effective communication helps in understanding ideas, instructions or guidelines in a close and clear way and removes all confusions. Resulting better understanding, better efficiency. *Process/Steps of communication*
Sender: according to this model, the first element is the source of the communication. The person who initiates the communication process in known as sender, source or communicator. The sender has some need, information, thought, idea or inform which he wants too communicate to some other person to achieve some purpose. By initiating the message, the sender attempts to achieve understanding and a change in the behaviour of the receiver. Encoding or communication symbol: the next element in the process is that of encoding the information to be transmitted. The sender of information organizes his ideas into a series of symbols (words, signs, etc.), which, he feels, will communicate to the intended receiver or receivers. This is known as encoding of message, i.e., converting to communicable codes which will be understood by the receiver of the message. Message: the next element in the process of communication is message. The message is the physical form into which the sender encodes the information. The message may be in any form that could be experienced and understood by one or more of the senses of the receiver. Speech may be heard, written words may be read and gestures may be seen or felt. Thus, a message may taken any of the two
Feedback is a reversal of the communication process in which a reaction to the sender’s message is expressed. while non-verbal would be in the form of gestures like wink. the person who receives the message is called receiver. 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). It is the receiver who receives and tries to understand the message. expectations and mutuality of meaning with the sender. sight and sound are important communication channels. verbal or non verbal. electronic mail. etc. others to the informally spoken words. education. frown. Feedback: after receiving the message. If the message does not reach the receiver.4. early feedback will enable the manager (sender) to know if his instructions have been properly understood and carried out. The feedback is optional and may exist in any degree (from minimal to complete) in any given situation. communication cannot be said to have taken place. warming of hand. The communication process is incomplete without the existence of receiver of the message. Receiver: the next element in the process of communication is the receiver. The channels of communication which are officially recognized by the organisation are known as formal channels. 6. The greater the overlap or commonality of the receiver’s field of experience and sender. telegram. A model of communication by Wilbur Schramm. grunt. The receiver becomes the sender and feedback goes through the same steps as the original communication. The channel is the link that connects th sender and the message. Decoding: decoding is the process by which the receiver’s draws meaning from the symbols encoded by the sender. Air. the more effective the communication process is likely to be. radio. form i. For an urgent message. telephone.e. 7. It illustrates that an individual with significantly different educational or cultural background ahs to put in greater effort to ensure successful communication. For example. Verbal message is in the form of word language. Some people respond better to formal letters or communications. smile. the greater success of the probability of expected communication. The mode of transmission is often inseparable from the message. The sociodemographic and physiographic characteristics of the receivers influence in selection of an appropriate channel of communication. For communication to be effective the channel used should be appropriate for the message as well as the receiver. It is affected by the receiver’s past experience. 80 . the receiver will take necessary action and send feedback information to the communicator. perception. 5. Generally. telefax. greater the feedback. shaking of head. television transmission would be appropriate. The receiver must be considered while selecting a channel.
allowing some information to pass through and disallowing others. so that it becomes more precise and accurate. For instance. as they are permitted to ask questions and seek clarification from the senders.Two-way communication takes place when the receiver provides feedback to the sender. It can arise at any stage in the communication process. i. or comprehend it in a manner not entirely intended by the sender of the message. Two-way communication is superior to one-way communication in the following respects: (i) Two-way communication is more accurate than one-way communication. 8. The message may get distorted by other sounds in the environment. The feedback allows the sender to refine his communication. A policy statement from the chief executive is an example of one-way communication. Noise: surrounding the entire spectrum is the noise that affects the accuracy and fidelity of the message communicated. Here the sender communicates without expecting or getting feedback from the receiver. (b) informal communication. The receiver may not hear the message. In any case. feedback is totally absent. On the basis of relationship: (a) formal communication. The sender may not be able to encode the message properly or he may not be properly audible.e. confuses or otherwise interferes with communication. in case of one-way communication. One-way communication takes less time than two-way communication. However. The channel also may cerate interference by ‘filtering’. there is so much of noise or interference in the entire process that there is every possibility of the communication being distorted. in case of two-way communication. giving an instruction to a subordinate and receiving it acceptance is an example of two-way communication. (ii) Receiver’s self-confidence is higher in case of two-way communication. In certain situations one-way communication is more effective to get work from the subordinates. On the other hand. the sender may feel embarrassed when the receiver draws his attention to sender’s mistakes and ambiguities. 81 . *Types of communication OR forms of organisational communication* 1. Noise is any factor that disturbs.
(c) horizontal communication. There is a system of flow of formal communication. It is used to transmit official messages within or outside the organisation. It may be verbal but mostly it is expressed in written form to have a proof. which takes place following organisational position established by management. Generally official messages are transmitted. It is not possible to fix responsibility. 2. It may serve both organisational and social needs. It is developed at its own due to mutual confidence and relations. Chain of command is strictly followed. 6. (d) diagonal communication. Informal (grapevine) Communication which takes place independently without following official chain of position. Basis difference Meaning of Formal The communication. It is mostly expressed in verbal/oral form. It may take place among the persons having different positions at different level and chain is not a restriction. Formal communication: it refers to the communication which rakes place on the basis of organisational relationship formally established by the management. 3. It serves only organisational needs. There is no system for flow of communication. Its speed is slow rout through various levels. Responsibility can be easily fixed. It strictly follows the chain of command. 4. *Difference between formal and informal communication* Sr. 1. Speed Chain of command Fixation of responsibility Nature of messages System of flow Needs served 82 . Network of informal communication is also known as grapevine. No. Chain of command is not followed. On the basis of flow or types of formal communication: (a) downward communication. Informal communication: it refers to the communication which takes place on the basis of informal or social relations among the people in an organisation. Generally personal messages are transmitted. (b) upward communication. 7. 5. Generally it is used to transmit personal message and do not follow the principle of chain of command. It travels faster the formal communication.2.
In other words only the selected part is further exchanged and remaining is blocked. Generally there is no Generally there is personal personal involvement. or Source and direction of flow can be easily traced. between different persons. verbal form. 3. subordinates bay pass on interpreted (distorted) information to their superiors to please them and do not reveal their mistakes. Language barrier: sometimes sender and receiver of message do not understand the same language and in that case messages not communicated. Status barrier: the difference is status of sender and receiver may also become obstacle to effective communication. Moreover if the pronunciation of words by sender is not clear it may became an obstacle. 5. 2. Messages may be distorted as it flows verbally. 10. Selective reception: when a part of information is blocked by any person in the channel of communication it is termed as selective reception. It is difficult to traceout source and direction of flow. 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). 11. 9. It happened when chain of command is strictly followed. *Barriers to effective communication* 1. These levels may become obstacle in flow of communication. involvement. Due to written form it does Due to verbal form it may not lead to remorse. Channel of communicatio n Interpretation of messages Source direction Remorse Personal involvement It is mostly expressed in It is mostly expressed in written form. 7. lead to remorse. So many levels of management: when the message has go through multiple levels of management.8. 12. E. It happens when information provider is of the view that the information disagrees with in interest.g. Message is correctly interpreted due to written form. Physical distance of receiver and sender: physical distance between these two may also become a barrier generally in those circumstances where sender is 83 . 4. 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. 6.
interested in knowing the reaction of the receiver quickly. as for instance. *Overcoming communication barriers* 1. Complex organisational structure: when organisational structure is of complex nature. E. Emotional and psychological barriers: these barriers arise from emotions. Effective listening: the sender must listen to the receiver’s words attentively. so that the receiver may also listen to the sender at the same time. Feedback: communication should be two-way traffic. There should be some system by which the workers should be able to convey their suggestions and 84 . 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. customs or religion and in that case communication will not be an effective communication. it will result no attention towards other departments/persons. 3. Creation of proper atmosphere: in particular cases. But verbal communication is not possible there. Symbolic barriers: sometimes the some word of language/symbol may carry different meaning to different parties as per their traditions.g. But workers may think that due to increase budget their salary and wages will raise. 12. 4. 10. announcement in increase in budget is meant for increase by installing new plan and new technology machines and plant. when required. attitudes and social values of the participants. 13. modified or lost at different levels before reaching to the last level. 9.8. the atmosphere should be peaceful. when a boss is talking to his subordinate. Prompt information: the management should make a practice of passing along the information promptly to everyone concerned so that action. 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. 11. 2. is not delayed. the information may get filtered. People may refuse to accept the messages affecting them emotionally. Such lack of organisational facilities is also barrier in effective communication. 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. so that there is effective communication of instructions and suggestions. Clarity of information: subordinates should be kept informed on policy that affects them on a regular basis. Specialization barrier: when a department or a person treats him more specialized. 5.
2. “communication with an awareness of the total physical and human setting in which the information will be received. Thus according to Killian.6. *Principles of effective communication* 1. The message must be as clear as possible. policies. lies. If the purpose of communication is clear it will help in the choice of mode of communication. determine the receptivity and understanding levels of the receivers. Principle of understanding the receiver: understanding is the main aim of any communication. 4. Picture the place of work. give information. The message should not be conflicting with previous communications. there will be no room for rumours. This will also increase the morale of the employees. initiate action. Principle of feedback: this principle calls for communication a two-way process and providing opportunity for suggestion and criticism. grievances to the top management. guesses and misconceptions. Worker should get open doors for any clarification or consideration at all times. Ask what. 3. The latter must consider the suggestion and criticism of the 85 . No ambiguity should creep into it. The message can be conveyed properly only if it has been clearly formulated in the mind of the communicator. his reactions must be known to the sender of message. Principle of consistency: the message to be communicated should be consistent with plans. poor public relations affects the efficiency of the parties to communication. Two-way communication is also necessary for feedback for the purpose of control. Since the receiver is to accept and carry out the instructions. The communication must crate proper understanding in the mind of the receiver. 5. Inadequate communication delayed action. If the communication channel is well maintained. The objective may be to obtain information. Effective channels: management should try to cut the roots of the rumours. Principle of completeness: the message to be communicated must be adequate and complete. programmes and goals of the enterprise. when and in what manner you would like to be communicated with if you were in the similar environment and position. be aware of social climate and customs. question the information’s timeliness. Principle of objective: the communicator must know clearly the purpose of communication before actually transmitting the message. Principle of clarity: the beginning of all communication is some message. and change another person’s attitude and so on. 6. It should not crate confusion and chaos in the organisation. otherwise it will be misunderstood by the receiver.
energizes or moves behaviour towards goals. According to them. According to Rensis Likert motivation is the “core of management. But feedback principle is often given a back seat by most managers. 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.7. Issuance of wellconceived instructions and orders does not mean that they will be followed. drives. The 86 . increased or reinforced to secure further movement. or threats or reprimands. Through the motivation of the workforce. with people one can use incentives. which defeats the very purpose of communication. the forces inside the individual that inspire him to continue work are variously called as wishes. motivation refers to a dynamic driving force. Motivation is an effective and dynamic instrument in the hands of a manager for inspiring the workforce and creating confidence in them. These work for a while and then need to be repeated. Thus. 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. *Meaning and definition of motivation* The term ‘motivation’ has its origin in the Latin word “mover” which means to “move”.” Motivation is an important function performed by manager for actuating the people to work for the accomplishment of organisational objectives. Principle of time: information should be communicated at the right time. motivation is defined as an inner state that activates. the word motivation is something stemming from within a person. motivation stands for movement. management creates ‘will to work’ which is necessary for the achievement of organisational goals and objectives. However. needs etc. these only have a limited effect. And. Motivation is the process of getting the members or the group to pull weight effectively. which activates or moves individual into action and continues him in the course of action enthusiastically”. to give their loyalty to the group and to carry out properly the purpose of the organisation. Thus. receiver of information. which stems from within. One can get a donkey to move by using a “carrot or a stick”. It is an “inner striving condition. *MOTIVATION* Introduction: To the behavioural scientists.
and continues him in the course of action already initiated”. *Models of motivation* Maslow’s Need Hierarchy model: A. Motivation has very close relationship with the behaviour. with resulting behaviour aimed at reducing. 87 . striving or needs direct. Famous psychologist “A.H. desires. H. 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. Understanding the needs and drives and their resulting tensions helps to explain and predict human behaviour ultimately providing a sound basis for managerial decision and action. motivation is the term. It explains how and way the human behaviour is caused. drives. The need hierarchy is as follows: 1. Basic physiological needs: the physiological needs relate to the survival and maintenance of human life. which applies to the entire class of urges. It is something that moves a person into action wand continue him in the course of action enthusiastically. desires. motivation is the way in which urges. So the manager should understand the needs and wants of the people for the purpose of creative motivation.Maslow developed a theoretical framework for understanding human motivation. 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. eliminating or diverting the tension. 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. Maslow develop a hierarchy/frame work for understanding human needs. which has been widely acclaimed.” Thus. Motivation is something that moves the person to action. 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. According to Dubin motivation could be defined as “the complex of forces starting and keeping a person at work in an organisation. In the words of Dalton E. According to McFarland motivation is a form of tension occurring within individual. aspiration. These needs include such things as food.term motivation may be defined as “the managerial function of ascertaining the motives of subordinates and helping them to realize those motives”. McFarland. needs and similar forces. control or explain the behaviour of human being”.
which are biological in nature. which is challenging and since this challenge gives him enough dash and initiative to work. Their degrees of satisfaction of needs do not vary according to the need priority mode. security of source of income. He wants to do something. Apparently. Moreover satisfied need will no longer be a motivator and needs and wants are infinity. personal bodily security. For example. 5. They are concerned with prestige and status of the individual. companionship. cultural differences are an important cause of these 88 . knowledge and success. 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. insurance against risks. air. a man has the desire for personal achievement. people want the assurance of maintaining a given economic level. Esteem and status needs: these needs embrace such things as selfconfidence. After his other needs are fulfilled. These needs boost the ego of individual. clothing. It involves realizing one’s potentialities for continued self-development and for being creative in the broadest senses of the word. The sense of achievement gives him psychological satisfaction. etc. exchange of feelings and grievances. 3. interested in conversation. it is beneficial to him in particular and to the society in general. He is. etc. sociability. They are also known as egoistic needs. competence. achievement. Safety and security needs: after satisfying the physiological needs. recognition. Self-fulfillment needs: the final step under the need priority model is the need for self-fulfillment or the need to fulfill what a person considers being his mission in life. 4. belongingness.2. therefore. Social needs: man is a social being. workers in Spain and Belgium felt that their esteem needs are better satisfied than their security and social needs. provision for old age. Appraisal of Need Hierarchy model: The need priority model may not apply at all times in all places. These needs are primary needs. Surveys in continental European countries and Japan have shown that the model does not apply very well to their managers. water and other necessaries of life. They want job security. independence.
For instance. Employees are enthusiastically motivated by what they are seeking. the level of operation may be permanently lower. and 89 . In certain people. the subordinate in general: (i) Has an inherent dislike for work and will avoid it. it may be undervalued. There are always some people in whom. Thus. the egoistic or social need may emerge. need hierarchy may not follow the sequence postulated by Maslow. at different levels of needs. the motivation will be defferent. not for satisfying higher level needs. Theory X: Theory X’ believes that autocratic managers often make the following assumptions about their subordinates. need for self-esteem seems to be more prominent then that of love. The first set of assumptions is contained in “Theory X” and the second set of assumptions in “Theory Y”. 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. but is intuitive deductions. The phenomenon of multiple motivation is of great practical importance in understanding the behaviour of man. Proposition that one need is satisfied at one time is also of doubtful validity. In other words. Money can act as a motivator only for physiological and social needs. (ii) Is lazy and avoids responsibility. Moreover. while others may be of secondary importance. if he can. 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. (iii) Is indifferent to organisational goals. for instance. Man’s behaviour at any time is mostly guided by multiplicity of motives. but they move forward with enthusiasm when they are seeking something else. There are important also creative people in whom the drive for creativeness seems to be more important.differences. man works for bread alone as long as it is not available. more than by what they already have. Accordingly. Even if safety need is not satisfied. They may react cautiously in order to keep what they already have. However one or two motives in any situation may be prepotent. It is important to note that these sets of assumptions were not based on any research. 1. Another cause of reversal of need hierarchy is that when a need has been satisfied for a long time.
Accordingly. (iv) Learns under proper conditions. McGregor questioned the assumptions of Theory X. has relatively little ambition and wants security above all. (iii) Commitment to objectives is a function of the rewards associated with their achievement.Prefers to be directed. This is also called ‘carrot and stick’ approach to motivation. Theory Y seems to be applicable. For such people. the subordinate in general: (i) Does not inherently dislike work. Depending upon controllable conditions. not only to accept. not narrowly. ingenuity and creativity in the solution of organisational problems is widely. 2. but also to seek responsibility. Management can offer rewards to a worker who shows higher productivity and can punish him if his performance is below standard. It suggests that threats of punishment and strict control are the ways to control the people. This is management’s task. 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. (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. Theory Y: Managers with Theory Y orientation make the following assumptions about their subordinates. According to McGregor. and (v) The capacity to exercise a relatively high degree of imagination. which followed carrot and stick approach to motivation of people and suggested autocratic style of leadership. Workers have to be persuaded and pushed into performance. this is a traditional theory of what workers are like and what management must do ot motivate them. (iv) 90 . wishes to avoid responsibility. distributed in the population.
skilled and professional employees who understand their responsibility and are self-controlled. Herzberg’s Motivation-Hygiene Model: A significant development in motivation was distinction between motivational and maintenance factors in job situation. these theories are important tools in understanding the behaviour of human beings and in designing the incentive schemes to motivate the employees. No man would belong completely to either theory X or theory Y. The examples of highly placed employees in modern organisations shirking responsibility are not uncommon. particularly the higher once. 3. Therefore. it was because of some disturbance on 91 . It does not rely heavily on the use of authority as an instrument of command and control. Worker’s commitment is directly related to the satisfaction of their needs. job enlargement. Theory Y seems to be more applicable to educated. this theory places great emphasis on satisfaction of the needs. there can be exceptions. 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. 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. 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. Neither of the two sets of assumptions is applicable fully in all situations and to all types of people. These men were asked to recall specific incidents in their experience. the management should use an amalgamation of both the theories to motivate different employees. A lower-level employee may be more responsible and mature than a well-qualified higher-level employee. each person possesses the traits of both in varying degrees under different situations.Theory Y assumes that goals of the organisation and those of the individuals are not necessarily incongruent. clothing and shelter. feel either particularly good or particularly bad about jobs. However. It assumes that employees exercise self-direction and selfcontrol in the direction of the goals to which they feel themselves committed. of the employees. security or working conditions and when they felt bad. Thus. The basic problem in most of the organisations is that of securing commitment of workers to organisational goals. It has been noted that theory X is more applicable to unskilled and uneducated lower-level workers who work for the satisfaction of their basic needs of food. and management by objectives and participative management practices. They could be motivated by delegation of authority. Thus. which made them.
Hygienie factors served to prevent loss of money and efficiency.these background factors which had caused them to believe that they were being treated unfairly. Technical supervision. 5. Inter-personal relations with supervisor. Recognition. physical conditions and overall company policy and administration. Motivational factors Achievement. Thus. Inter-personal relations with subordinates. Possibility of growth. Advancement. 4. Personal life. 7. To this group of engineers and accountants. the real motivators were opportunities to become more expert and to handle more demanding assignments. Herzberg’s maintenance and motivational factors have been shown in the table Herzberg’s Maintenance and motivational factors Sr. This led to draw a distinction between what are called as ‘motivators’ and ‘hygiene factors’. Some job conditions operate primarily to dissatisfy employees when they are absent. 3. The presence of these factors at a satisfactory level presents job dissatisfaction. but their presence does not motivate employees in a strong way. Responsibility. but the absence of these factors serves as dissatisfiers. Salary. 9. These conditions are ‘motivational factors’. So they are not considered as motivational factors. Maintenance of Hygienie factors Company policy and administration. but are essential for increasing the productivity of the employees. but they do not provide motivation to the employees. 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. 6. Work itself. 1. Status. Working conditions. 8. 10. They are also known as satisfiers 92 . 2. Hygienie factors include wages. Job security. hygienie factors provide no motivation to the employees. Many of these factors are traditionally perceived by management as motivators. Inter-personal relations with peers. No. fringe benefits. but the factors are really more potent as dissatisfiers.
Once this is done. But it would be wrong to make much of the aforesaid over-all alikeness. the motivators like advancement. opportunity of advancement and potential for personal growth. working conditions must be present to provide the necessary environment for motivation. responsibility and sense of job and individual importance. the lower level needs like food and shelter as pointed out by Maslow are all satisfied. It should also be noted that one’s hygiene may be the motivator of another. In order to increase the motivation of employees. Herzberg further stated that managers have hitherto been very much concerned with hygienie factors. As such they cease to be motivators. feeling of accomplishment and achievement. (ii) In an advanced society. it is necessary to pay attention to the satisfiers or motivational factors. then something else will motivate him and the need. When a person gets one thing. For instance. according to Herzberg. Both can be appropriately classified as content theorists. 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. It is the higher level needs like esteem and self-actualization. which are more important for the purpose of motivation. will have only negative significance in determining his behaviour. responsibilities go into play and actuate the individual. 93 . they have not been able to obtain the desired behaviour from employees. As a result. which has been fulfilled.and include such factors as recognition. 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. Similarly. Herzberg also said that to-day’s motivators are tomorrow’s hygienes because they stop influencing the behaviour of persons when they get them. hygiene factors like pay. 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. new experience and challenging work etc.
accountants and other professionals may like responsibility and challenging jobs. The motivators in Herzberg’s theory are a class apart from hygiene factors. Maslow’s theory applies to human beings in general including employees of all categories. Particularly. it shows the value of job enrichment in motivation. depending on the mental level.. 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. i. but their presence does not by itself provide any motivation. persons whose positions in an organisation are usually higher than rank and file. So. the interviewees were asked to report exceptionally good or exceptionally bad moments. It has been criticized on the following grounds: (i) Herzberg drew conclusions from a limited study covering engineers and accountants. accountants. individual thinking and experience as a psychiatrist. agricultural administrators and the like. of they are absent. in which an individual is placed. (ii) Another difference is that Maslow formulated his theory out of his insight. and job security are regarded by Maslow as having the power or potency to motivate them.e.(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. Herzberg was concerned with the needs of employees in relation to their work and work environment. But to Herzberg these are just hygienie factors. But the general body of workers are motivated by pay and other financial benefits. (iii) Maslow emphasized the need of human beings for all 24hours of the day whereas. there is dissatisfaction. However. the claim to universality is stronger in the case of Maslow’s theory than in that of Herzberg’s theory. (ii) In Herzberg’s study. viz. Engineers. But all the needs according to Maslow are motivators. engineers and accountants. This methodology is defective because there is a 94 . but Herzberg arrived at his findings from the responses to questions put by his team of researchers to a specified class of employees. But Herzberg’s theory concentrates on the motivation of professional people including engineers.. (iv) Again. Herzberg’s theory has not gone unchallenged.
some behaviour must be produced in order to achieve that goal. It is an expression of the value he places on a goal (outcome or reward). if an individual has a particular goal. The value attached to a goal or reward is subjective as it varies from person to person. if a young and dynamic employee wants a promotion. Vroom’s Valence-Expectancy Theory: (1) Theoretical concepts: Attacking Herzberg’s two-factor theory. Herzberg did not attach much importance to pay. 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. For instance. But job enrichment is not the only answer. all the three variables must have high positive values to imply motivated performance choices. If any of the variables approaches zero. 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. a retiring employee may have high valence for reemployment. According to him. Thus. status of interpersonal relationship. 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. has high valence or strength for that employee. Since the mode is multiplicative. 95 . There are three variables of Vroom’s model given in the form of an equation. which are generally held as important contents of satisfaction. (a) Valence (reward preference): it refers to the strength of an individual’s preference for receiving a reward. the probability of motivated performance approaches zero.common bias among human beings to take more credit for good things and put the blame on others for bad things. Off-the-job satisfaction of the workers is also very important. Similarly. (iii) Herzberg gave too much emphasis on job enrichment. Vroom offered an expectancy approach to the understanding of motivation. Motivation = Valence*Expectancy*instrumentality Valence is the strength of an individual’s preference for a reward. that particular behaviour will be preferred by the individual.
(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). its value may range from 0 to 1. the motivational force will be highest when expectancy. For instance. the individual will put higher efforts to achieve the desired outcome. it is an association between effort and performance. if expectancy is higher. The management must recognize factors for behavioural modification. the total range of valence is from –1 to +1. The combination that produces the strongest motivation is high positive valence. Motivation is the product of valance. the strength of avoidance behaviour will be determined by the negative valence and expectancy and instrumental factors. expectancy and instrumentality. If all the three are low. to which the person believes that his efforts will lead to the first level outcome. as individual’s estimate of the probability of an outcome from an action. i. i. the resulting motivation will be weak. On the other hand. (b) Expectancy (Effort-Reward Probability): it refers to the extent. as it is the probability of achieving the desired outcome. Since. 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. If a person is indifferent to an outcome. he will not even try. his valence is zero. Expectancy is stated as a probability. motivation will be moderate. high expectancy and high instrumentality.People have different valence for various outcomes. an individual wants a promotion and feels that superior performance is very important in achieving promotion. 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 96 . In other cases.. The value of instrumentality also ranges from 0 to 1. In other words.. As said above. The relative valence they attach to various outcomes is influenced by conditions such as age.e. education and type of work. Similarly. superior performance (first-level outcome) will be instrumental in obtaining promotion (second level outcome). if the individual feels that chances of achieving an outcome are zero. completion of a task. 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. Thus. instrumentality and valence are all high. so that these three elements achieve the highest value individually.e. The valence of a person for a goal may be positive or negative depending upon his positive or negative preference for this goal. Superior performance is the first level outcome and promotion is the second level outcome.
According to Fred Luthans. they may rank them differently. Donnell and Weihrich pointed out: “one of the great 97 . all people in an organisation may not place the same value on such job factors as promotion. In essence. job security and working conditions. Broom is of the opinion that what is important is the perception and value the individual places. The reward policy may be inconsistent and may depend upon factor other than performance. From the theoretical standpoint it seems to be a step in the right direction. “the expectancy model is like marginal analysis in economics. vroom emphasizes the importance of individual perception and assessment to organisational behaviour. The merits of Vroom theory are: (i) Basic framework: the Vroom’s model provides a basic framework for interpreting work motivation as Keith Davis put it. According to broom. Vroom’s model attempts to explain how individual’s goals influence his efforts and like need-based models reveal that individual’s behaviour is goal-oriented. (ii) Low performance-reward instrumentality relationship: similar performance may not lead to similar rewards. 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. It is of value in understanding organisational behaviour. 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. another individual may highly value promotion and perceive political behaviour as instrumental in achieving it. high pay. One the other hand. high value on salary increase and perceives superior performance as instrumental in reaching that goal. This individual is not likely to emphasize superior performance to achieve the goal. O. The expectancy model attempts to mirror the complex motivational process. (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. The management must reevaluate the appraisal techniques and formulate policies that strengthen performance-reward relationship as just and equitable. In other words. Thus. which the worker may not be aware of or may not consider fair. Business people do not actually calculate the point where marginal ost equals marginal revenue. this individual will strive towards superior performance in order to achieve the salary increase. As Koontz. For instance. but it is still a useful concept for the theory of the firm.performance. The management could provide the relationship between efforts and performance.
it will be instrumental in getting them higher remuneration or promotion. In other words. (second-level outcome).attractions of the Vroom model is that it recognizes the importance of various individual needs and motivations. etc. All these impart a certain amount of generality and practical utility to the model. importance of pay and pay effectiveness. (iv) Contingency approach: indirectly. Wahba. and the expectancies that are held with respect to the employees ability to influence the first-level outcome. at least one issue of every journal in organisational behaviour reported some result on its application in practice. (b) they feel that their efforts will not lead to the production standard. the Broom model has been used to predict a wide variety of work-related variables in a number of studies. organisational practices. and (c) they may not believe that if they achieve the standard. if it does not produce the desired results. Alan C. If the workers do not put forth adequate efforts to achieve the organisational goal. occupational choice. 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. In the opinion of Leon Reinharth and M. suppose the organisation sets a certain standard for production (first-level outcome of organisational goal) for the purpose of incentive pay. so to speak. For instance.A. if any method of motivation is found to be productive. it should be given up for something better. House and M. (vi) Popular support: it is said that since the model had been proposed. leadership behaviour and leadership effectiveness. (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. Broom draws attention to an all-important fact that there is no one set formula for the motivation of individuals. By measuring and analyzing the workers’ output managers can get clues to their motivation. These include job effort and performance. attitudes and organisational behaviour. learning theory. Robert J. Wahba. managerial motivation.J. it may be assumed that either (a) they do not place much value on the second-level outcomes (incentive. House and Steven Kerr analyzed the numerous studies.A. (v) Practical utility: according to R. “the expectancy theory has served as the basis for research in such diverse areas such as decision-making. verbal conditioning. on the other hand. managers should continue it. It is thus a step further from management by objectives. His is the contingency approach. Filley. It does seem more realistic”. promotion. more than 32. He looked at effective motivation not in terms of either a fixed set of human needs or as a uniform configuration of external motivations. from 1962 to 1974 and came to the general 98 . identify some of the important variables and formulate their reward plans accordingly. promotion).
As Lyman Porter. expectancy and instrumentality measures as well as ability assessment has not yet been offered. it does not provide specific suggestions on what motivates organisation members as the Maslow. That is why its impact on job-settings has been negligible and influence on managerial action. the expectancy model is just a model and no more. H. (iv) Weak empirical support: the empirical support for the Vroom model is insignificant and lacks consistency. There seems to be some overlapping between esteem. Also. estimate expectancies and valences. House who apprised fourteen investigations also confirmed the propositions. (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’. most researchers suggested the need for further study to test some of the principal variables. and physiological needs.” (iii) Little impact on management: apart from the fact that it is a highly complex model and difficult to understand. social. its practicability is also open to question. III and J. some of its propositions were confirmed by studies made by T.conclusion that there was empirical support to the expectancy theory. 99 . Schwab who investigated nine field enquiries in managerial settings and further M. multiply and add up the total.” Further. unless of course they are asked to do so by a researcher. “it does not attempt to describe what the content (of motivation) is or what the individual differences are. Ti indicates only the conceptual determinants of motivation and how they are related. People rarely actually sit down and list their expected outcomes for a contemplated behaviour. G. Mitchell and A.R. III and D. not much. the lines between esteem. P. Biglan. who reviewed six cases in the area of industrial psychology. It has been rightly remarked by Hamner and organ “the predictive potential of this theory is still largely untested. “Hedonistic cognitions are insufficient to determine a person’s value system. Richard Heckman pointed out. The demerits of Vroom’s theory: (i) Lack of concreteness: the generality of the model constitutes its principal weakness. Heinemann.” A fully developed test incorporating force. Edward E. Alderfer’s Existence-Relatedness-Growth (ERG) Model: Serious doubts have been expressed about the existence of the five distinct need categories. However. which Maslow hypothesized. Harzberg and Alderfer models do. Lawler. As Luthans pointed out. Similarly. Wahba and R. on which the model is based.
we again focus on relatedness needs. Clayton Alderfer condensed Maslow’s five need categories into three sets: (i) Existence need: these include all forms of material and physiological and safety needs. With these points in mind. i. (b) He recognized that rise in the level of satisfaction of our existence and relatedness needs may result in decrease concreteness. which are situational and can change according to the environment. (ii) Relatedness need: this includes all needs that involve relationships with other people we care about. Relatedness needs cover Maslow’s social needs and that of esteem needs which are derived from other people. Comparison and contrast with Maslow theory: 100 . Thus. and self-actualization needs are not entirely clear. In this way. we “drop back” and again focus on more concrete needs. Thus. Alderfer’s work gives up a sound basis to categories of human needs and to think about the relationship between need categories. 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. Alderfer sounds somewhat like Maslow. moving from a focus on one need. the opposite of satisfaction or relatedness needs is emotional distance rather than hatred. It is like Maslow’s last level need of self-actualization. in this sense. and the episode needs. the ways we can satisfy those needs become increasingly abstract. a focus on existence to relatedness to growth needs. If a particular path towards the satisfaction is blocked. and then back again. a focus on existence to relatedness to growth needs. the individual will both persist along that path and at the same time regress towards more easily satisfied needs. Alderfer distinguishes between chronic needs.e. (iii) Growth need: these needs involve persons making creative efforts to achieve full potential in the existing environment. That is. 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. Maslow’s first two level needs. That is.. (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.social. if we can’t satisfy needs at a given level of abstractness. as we move from. suggesting a pattern of satisfaction progression-that is. if we are unable to satisfy out growth needs. we can go through cycles. the ways we can satisfy those needs become increasingly abstract. then another. Different types on needs can operate simultaneously. which persist over a period of time.
Merits of Alderfer’s theory: (i) Alderfer’s concept of needs is more direct and simple to understand. and (iv) there is a specific method indicated in the theory for its testing and validation. and like other content theories. which are as follows: (a) Similarities: (i) both are content theories. Probably this is one of the important reasons for lack of popularity of Alderfer’s theory. David McClelland gave a model of motivation. They are stated below: (i) Need for achievement (n-Ach): a drive to excel. and (iv) both deal with upward movement of motivation according to the hierarchy. Criticism of Alderfer’s theory: The fact that the needs are not strictly demarcated goes against the theory. The term ‘relatedness’ used in the theory is particularly confusing. “most contemporary analyses of work motivation tend to support Alderfer’s theory over Maslow’s”. (ii) thus. which is based on three types of needs. 101 .There are some similarities as well as dissimilarities between Alderfer’s ERG theory and Maslow’s theory of Need Hierarchy. there can be not only satisfaction progression but frustration regression as well. In his opinion. achievement. whereas Alderfer focused more on a continuum of needs than their hierarchical levels. and (iii) Need for affiliation (n-Aff): a drive for friendly and close interpersonal relationships. power and affiliation. advance and grow. (b) Dissimilarities: (i) Maslow’s main contention is hierarchy of needs. (ii) Need for power (n-Pow): a drive to influence others and situations. more realistic. (ii) it is more flexible and therefore. 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. Accordingly. In the words of Fred Luthans. (ii) the basic needs emphasized in both are the same. (iii) the overall structure of need categories is also the same. (iii) unlike Maslow. Alderfer has grouped further the five needs enunciated by Maslow.l Alderfer also envisaged downward movement in the hierarchy. it fails to contribute effectively to human resources management. and (iv) Alderfer also recognized the influence of a man’s personal background and his natural environment. ERG needs do not maintain sharp lines of demarcation. (iii) the provision of backlash of fulfillment of a need accords with reality. related needs may in some cases take precedence over existence needs. namely.
and tend to be more concerned with gaining influence over others and prestige than with effective performance. They seek situations where they can attain personal responsibility for finding solutions to problems. Individuals with a high affiliation motive strive for friendship. McClelland’s concept of achievement motivation can be related to Herzberg’s motivation-hygiene theory. Power motivation: the need for power is a drive to have impact. where they can receive rapid feedback on their performance so they can set moderately challenging goals. strive for influence over others. influence or have control over others. Individual with a high need for achievement thrive on jobs and projects that tax their skills and abilities. seek a challenge and want task relevant feedback. Individuals with high affiliation needs value interpersonal relationships and exhibit sensitivity towards other people’s feeling. prefer to be placed into competitive and status-oriented situations. and desire relationships involving a high degree of mutual understanding. They prefer the challenge of working at a problem and accepting the personal responsibility for success or failure. Such individuals are goal-oriented in their activities. and to control others. they dislike succeeding by chance. However. But individuals with the high power needs seek to dominate. From researches into the area of achievement need. rather than leaving the outcome to chance or the actions of others. McClelland’s research revealed that managers generally score 102 . to be influential. McClelland found that high achievers differentiate themselves from others by their desire to do things better. Affiliation motivation: this need has received the least attention of researchers. High achievers are not gamblers. People possess the above needs in varying degrees. prefer cooperative situations rather than competitive ones. Affiliation need can be viewed as the desire to be liked and accepted by others. individuals high in nPow enjoy being “in charge”. They have a desire to do something better or more efficiently than it has been done before. 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.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. It is the drive to relate to people on a social basis. one of the needs will tend to be more characteristic of the individual rather than the other two. This drive is the achievement need. Power-motivated people wish to create an impact on their organisations and are willing to take risks to do so.
In other words. motivating forces for managers lie in the challenge and potential of the job. 103 .high in the need for achievement.