KARNATAKA STATE OPEN UNIVERSITY

IN COLLABORATION WITH

BHARATH POSTGRADUATE COLLEGE

COMMON PAPER MANAGERIAL TASKS AND BEHAVIOURAL DYNAMICS

MBA
CODE: MBA-01 I SEMESTER

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Course Writer by:
MRS. M. CHITRA, M.B.A., M.PHIL, PGDHRM, LECTURER, DEPARTMENT OF MANAGEMENT STUDIES, SRM UNIVERSITY, KATTANKULATHUR, CHENNAI - 603 203

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SEMESTER 1: SUBJECT CODE: MBA-01 SUBJECT: MANAGERIAL TASKS AND BEHAVIOURAL DYNAMICS This course helps to prepare the students to understand the basic application of managerial functions in day to day operations and activities of corporate and business enterprises. Objectives: 1. To understand the role and responsibilities of manager 2. To learn the process of management in corporate enterprises. 3. To comprehend the behavior of others and adapt to managerial success. 4. To make the students to equip the necessary changes and developments in an organization. STRUCTURE OF THE COURSE CONTENT BLOCK I MANAGERIAL FUNCTION AND RESPONSIBILITIES Unit 1: Manager Role, Responsibilities and Tasks Unit 2: Managerial Functions and Their Characteristics Unit 3: Evolution of Management and Schools of Thought Unit 4: Social Responsibilities of Business BLOCK II PLANNING AND ORGANIZING FUNCTION Unit 1: Planning Nature, Types and Process Unit 2: Decision Making and MBO Unit 3: Organizing Principles and Structural Design Unit 4: Delegation, Span of Control, Decentralization, Line and Staff Authority BLOCK III DIRECTING, CONTROLLING AND CO ORDINATION Unit 1: Directing, Motivation, And Leadership Unit 2: Controlling Nature and Techniques Unit 3: Co Ordination The Essence of Management Unit 4: Contemporary Trends in Management BLOCK IV INTRODUCTIONS TO BEHAVIOURAL DYNAMICS Unit 1: Evolution, Challenges and Opportunities of Organization Behaviour Unit 2: Personality and Behavioural Assessment Unit 3: Emotions and Learning Unit 4: Perceptions and Stress Management

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L M Prasad. Stephen P Robbins. Prentice Hall Of India.Pearson 2003 3. Consumer Behaviour. Sultan Chand & Sons. Management Principles And Practice. New Delhi 7. New Delhi 4.Peeru Ahamed & Sagadevan Vikas Publishing 4 . Excell Books 5. Peter F Druker. Consumer Behaviour. Organization Behaviour. Stephen P Robbins. Best.BLOCK V ORGANIZATIONAL BEHAVIOURAL DYNAMICS Unit 1: Change Management Unit 2: Organizational Climate Unit 3: Management of Conflicts Unit 4: Organizational Development Interventions REFERENCES BOOKS: 1. New York. 2. 6th Edition 5. Coney-TMH.Satish k Batra & S H H Kazmi.9/e. Management Tasks and Responsibilities. Consumer BehaviourLeon Schiffman. Organization Behaviour.2004 9. 2004 10.Hawkins. Customer Relationship Management. New Delhi 6. Fundamental of Management. Sultan Chand & Sons.Tata Mcgraw Hill. Essentials of Management. Truman Talley Books. Koontz & Weirich. Lesslie Lazar KanukPearson/PHI. C B Gupta.8/E 8. Consumer Behaviour in Indian Perspective – Suja Nair – Himalaya Publishers.

working managers.2 Manager’s Are Universal 1. This role is critical in the organization. do hard work themselves. They are hands-on. Typically strategic managers focus on long-term issues and emphasize the survival. These managers often have titles such as supervisor or sales manager.UNIT . The other goal of HR manager is to prevent obsolescence at all levels. 1. Your first management position probably will fit into this category. They get dirty.5 Answer To Check Your Progress Exercise 1. solve problems.0 Aims And Introduction 1.2 MANAGERS ARE UNIVERSAL: 5 . and produce value. Strategic Manager: Strategic managers are the senior executives of an organization and are responsible for its overall management. or tactics.4 Some Useful Books 1. 1. Operational Managers: Operational managers are lower-level managers who supervise the operations of the organization. 3. They are directly involved with non-management employees. give orders. Major activities include developing the company's goals and plans. They do not just make decisions. wait for others to produce.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the roles to be played by an HR manager and the various responsibilities and tasks to be performed by him.1 : MANGER ROLE AND RESPONSIBILITIES AND TASKS Structure 1. growth. because in large organizations they are located between the rategic and operational managers. Tactical managers are often called middle managers. Today's best middle managers have been called "working leaders. Tactical Managers: Tactical managers are responsible for translating the general goals and plans developed by strategic managers into objectives that are more specific and activities. and overall effectiveness of the organization. 2. implementing the specific plans developed with tactical managers. because operational managers are the link between management and non-management personnel. 1. and then evaluate results. These decisions. involve both a shorter time horizon and the coordination of resources.1 INTRODUCTION The primary goal of HR manager is to increase a worker’s productivity and a firm’s profitability as investment in HRD improves a worker’s skill and enhances motivation.1 Introduction 1.3 Mangers Roles 1." They focus on relationships with other people and on achieving results.

logical thinking. Technical Skills The skills that include knowledge of and proficiency in a certain specialized field Managers need to be technically competent. Top mangers/CEO needs this type of skill the most. and the ability to see the big picture. Human skills are very important at each level of management. Line managers need this skill the most while top manager will need minimum of technical skills. When a professional football team starts losing.Managers work in all types of organizations. and discipline employees 3. and to understand the relationships among the various subunits. and in all functional areas. interpersonal. Conceptual skills include analytical ability. administrators. For example. Conceptual Skills Conceptual skills include the ability to think and to conceptualize about abstract and complex situations. 3. hospitals. train. the board rewards this success with bonuses and stock options. and ability to communicate. motivate. the owner fires the coach. 6 . 1. and to visualize how the organization fits into its broader environment. Figurehead—duties that are ceremonial and symbolic in nature 2. organize lead and control. or principals. schools and governments benefit from efficient and effective management. to see the organization as a whole. These may be individuals or groups inside or outside the organization. 2. creativity. They manifest themselves in things like good judgment. and conceptual. This success or failure is reflected in a manager's career. The leaders of these organizations may be called executives. when a CEO saves a failing corporation. and inductive reasoning. Liaison—contact outsiders who provide the manager with information. Large and small businesses. Mangers need good interpersonal skills. The Managerial Skills and roles Managers need three basic sets of skills: technical. Interpersonal roles 1. concept formation. They need to know how to plan. 1. at all levels. Interpersonal Skills/Human Skills Interpersonal skills include the ability to work well with other people both individually and in a group. Leadership—hire. attitudes and motives of others. but they are all managers and are responsible for the success or failure of the organization. not the team. knowledge about human behaviors and group processes. ability to understand the feelings. clearly and persuasively.3 MANAGER’S ROLES: a.

To this end. Decisional roles • • • • Entrepreneur—managers initiate and oversee new projects that will improve their organization’s performance Disturbance handlers—take corrective action in response to unforeseen problems Resource allocators—responsible for allocating human. skills and experience. • • 7 . HR managers have to use their experience to good effect while laying down lucrative career paths to new recruits without.b. and monetary resources Negotiator role—discuss issues and bargain with other units to gain advantages for their own unit Other roles of an Manager Operational Roles These roles are tactical in nature and include recruiting. motivator: Apart from talent acquisition. Trainer developer. • Recruiter: “Winning the war for talent” has become an important job of HR managers in recent times in view of the growing competition for people possessing requisite knowledge. coordinating HR activities with the actions of managers and supervisors throughout the organization and resolving differences between employees. Coordinator/linking pin: The HR manager is often deputed to act as a linking pin between various divisions/departments of an organisation. and bring out the latent potential of people through intrinsic and extrinsic rewards which are valued by employees. physical. using PR and communication skills of HR executives to the maximum possible extent. The whole exercise is meant to develop rapport with divisional heads. offer meaningful training opportunities. talent retention is also important. HR managers have to find skill deficiencies from time to time. training and developing employees. Informational roles • • • Monitor—collect information from organizations and institutions outside their own Disseminator—a conduit to transmit information to organizational members Spokesperson—represent the organization to outsiders c. increasing the financial burden to the company.

ONGC 's oil exploration capabilities and Dell's ability to deliver low cost. o l Ensuring fair and equitable treatment to all people regardless of their background. o l Resolving differences between employees and groups smoothly. The strategic role of HR management focuses attention on how to enable ordinary employees to turn out extraordinary performance. problems and concerns to the management in order to deliver effective results HR managers have to treat their employees as valuable assets. e. difficult to imitate and organized. Employee champion: HR managers have traditionally been viewed as ‘company morale officers’ or employee advocates. Such an approach helps to ensure that HR practices and principles are in sync with the organisation’s overall strategy. o l Charting a suitable career path for each employee. o l Adopting family-friendly policies. o l Rewarding creditable performance. The key areas of attention in this era of global competition include effective management of key resources (employees.• Mediator: The personnel manager acts as a mediator in case of friction between two employees.g. value enhancing solutions 8 . high-quality computers at an amazing speed) that distinguish an organisation from its competitors. privatisation and globalisation pressures have changed the situation dramatically HR professionals have had to move closer to the hearts of employees in their own self interest. superiors and subordinates and employees and management with the sole objective of maintaining industrial harmony. • Strategic Roles An organisation’s success increasingly depends on the knowledge. work processes). groups of employees. a firm can achieve sustained competitive advantage through its people. o l Representing workers’ issues. rare. Liberalisation. When employees’ talents are valuable. technology. while delivering cost effective. It forces the organisation to invest in its best employees and ensure that performance standards are not compromised. particularly as they help establish a set of core competencies (activities that the firm performs especially well when compared to its competitors and through which the firm adds value to its goods and services over a long period of time. skills and abilities of its employees. To deliver results they are now seriously preoccupied with: o l Placing people on the right job. o l Striking a happy balance between the employee's personal/professional as also the larger organizational needs. taking care of their ever-changing expectations.

New York 9 . management tasks and responsibilities Truman Talley books . planning with results and fear of change with excitement about its possibilities. • All managers are mostly concerned with following activities: a) b) c) d) e) Staffing Retention Development Adjustment Managing change HR Professionals’ Responsibilities: Line manager Authorized to direct the work of subordinates—they’re always someone’s boss. While implementing strategies. but it would certainly lead the process to make them explicit. design centre.Drucker. developed and delivered in a timely manner. It makes sure that change initiatives that are focused on creating high-performing teams. HR helps an organization identify the key success factors for change and assess the organisation’s strengths and weaknesses regarding each factor. or implementing new technology are defined.• Change agent: Strategic HR as it is popularly called now aims at building the organisation’s capacity to embrace and capitalise on change. it must identify external opportunities from time to time. line managers are in charge of accomplishing the organization’s basic goals. reducing cycle time for innovation. HR managers are generally staff managers. Peter F. In addition. It may not decide what changes the organisation is going to embrace. HR should develop appropriate ways to restructure work processes smoothly. To this end. 1. Staff manager Authorized to assist and advise line managers in accomplishing these basic goals. Instead.4 SOME USEFUL BOOKS 1. consumer-oriented work force.How will it be measured? How will it be institutionalized? How will it be measured? How will it get initiated. which could be used by others as well). In helping to bring about a new HR environment there needs to be clarity on issues like who is responsible for bringing about change? Why do it? What will it look when we are done? Who else needs to be involved? . nor certainly to carry out fire-fighting operations like compensating employees. automation centre etc. It must assume important roles in strategy formulation as well strategy implementation. it must deliver strategic services cost effectively by building a competent. HR's role as a change agent is to replace resistance with resolve. developed and sustained? Strategic partner: HR’s role is not just to adapt its activities to the firm’s business strategy. develop HR based competitive advantages and move in to close the gaps advantageously (like excellent training centre.

Tata McGraw Hill. 3. 5. 10 .gupta. New Delhi. Fundamental of management. 6. Stephen P. Management Principles and practices. What are the administrative roles of an HR Manager? What are the different operational roles of a Manager? What is meant by strategic partner? Explain the managerial roles of an HR manager.. Essentials of Management. Pearson 2003 Koontz and Weirich. New Delhi 1. Tata McGraw Hill. Sultan chand and sons. 3. fundamental of management. New Delhi C.Prasad.B. New Delhi Koontz and Weirich.Robbins. 2.2.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. L. Organizational Behaviour. 4. Sultan chand and sons . 4.M.

2 : MANAGERIAL FUNCTIONS Structure 2. programmes. actuating and controlling. planning is the first function performed by a manager. procedures.2 Managerial Functions 2.1 INTRODUCTION The process of management involves the determination of objectives and putting them into action. MANAGERIAL FUNCTIONS A manager is called upon to perform the following managerial functions: (1) Planning (2) Organising (3) Staffing (4) Directing (5) Motivating (6) Controlling (7) Co-ordinating and (8) Communicating. 2. maintain and operate purposive organizations through systematic. Terry -"Management is a distinct process consisting of planning. According to G. As it involves making choices. direct.2. "Management is the process by which managers create. According to McFarland.0 AIMS AND OBJECTIVES The main objective of the study is to understand the basic managerial functions and to know its role in each and very aspects in HR department. performed to determine and accomplish stated objectives by the use of human beings and other resources". etc. Planning: When management is reviewed as a process. This is done through planning. It is today's projection for tomorrow's activity. 1. policies. 11 . The work of a manager begins with the setting of objectives of the organisation and goals in each area of the business.4 Answer To Check Your Progress Exercise 2.3 Some Useful Books 2. coordinated and cooperative human effort". strategies.UNIT .0 Aims And Objectives 2. Planning includes objectives. 2.1 Introduction 2. organizing. decision-making is the heart of planning. R. A plan is a predetermined course of action to accomplish the set objectives.

Every member of the organisation should be familiar with its objectives.It is a pre-determined course of action. The objectives must be clearly specified and measurable as far as possible. Determination of Mission: The "mission" should describe the fundamental reason for the existence of an organisation. training etc. 3. Planning is determination of personnel programs and changes in advance that will contribute to the organizational goals. The management should have no stone unturned in reducing the element of guesswork in preparing forecasts by collecting relevant data using the scientific techniques of analysis and inference. Determining Alternative course of Action: It is a common experience of all thinkers that an action can be performed in several ways.. changing values attitude and behavior of employees and their impact on organization. finance. Planning Process The planning process involves the following steps: 1. Intelligent forecasting is essential for planning. at the disposal of the firm. selection. Determination of Objectives: The organizational objectives must be spelled out in key areas of operations and should be divided according to various departments and sections. Establishing the sequence of activities: After the best programme is decided upon. facilities etc. Analysis of Internal Environment: The internal environment covers relatively controllable factors such as personnel resources. 9. 8. it involves planning of human resources requirement. 12 . In other words. It also involves forecasting of personnel needs. political conditions etc.selecting the course of action is the point at which the plan is adopted. It is the real point of decision-making. Evaluating Alternative Courses: Having sought out alternative courses and examined their strong and weak points. market. 5. 4. socio-economic climate. 7. Such an analysis will give an exact idea about the strengths and weakness of the enterprise. It will give firm direction and make out activities meaningful and interesting. 2.. recruitment. within which our plans will have to operate. the next step is to evaluate them by weighing the various factors. . 6. Analysis of External Environment: The external environment covers uncontrollable and unpredictable factors such as technology. the next task is to work out its details and formulate the steps in full sequences. Selecting the Best: The next step . The management should try to find out these alternatives and examine them carefully in the light of planning premises. but there is a particular way which is the most suitable for the organisation. Forecasting: Forecasting is a systematic attempt to probe into the future by inference from known facts relating to the past and the present.

Motivation is the key to successful management of any enterprise. materials etc. Directing: Direction involves managing managers. effective communication as well as Co-ordination. 2.  The allocation of tasks to individual employees. Take remedial measures. an attempt is made to secure that which was originally planned. proper leadership. Controlling: Control is the process of measuring actual results with some standard of Performance.  The time-table or schedule of work so that the functional objectives are achieved within the predetermined period. Person-to-person communication is most effective for coordination. economically and in harmony. finding the reason for deviations of actual from desired result and taking Corrective action when necessary.. A Manager must adopt the following steps in controlling:       Identify potential problems. Staffing: Staffing involves filling the positions needed in the organisation structure by appointing competent and qualified persons for the job. Reviewing the planning process: Through feedback mechanism. Spot significant deviations. Evaluate performance in terms of planning. machinery. This needs manpower planning. 5. Select mode of control.10. managing workers and the work through the means of motivation. scientific selection and training of personnel. Motivation can set into motion a person to carry out certain activity. planning decides what management wants to do. 7. Co-ordination requires effective channels of communication. While. Motivating: Motivation is a managerial function to inspire and encourage people to take required action. suitable methods of remuneration and performance appraisal. Organising: Organising includes putting life into the plan by bringing together personnel. capital. controlling enables the realization of plans. 13 . A manager must develop the ability to command and direct others. Thus. 4. organising provides an effective machine for achieving the plans. It ensures that all groups and persons work efficiently. Ascertain causes of deviations. to execute the plans. Formulation of Action Programmes: There are three important constituents of an action plan:  The time-limit of performance. 6. To do this we have to compare the actual performance with the plan and then we have to take necessary corrective action to ensure that actual performance is as per the plan. 11. Co-ordination: Co-ordination is concerned with harmonious and unified action directed toward a common objective. 3.

2.3 SOME USEFUL BOOKS 1. Tata McGraw Hill. 2. 14 . Pearson 2003 Koontz and Weirich.Robbins. Fundamental of management.Drucker. Peter F.8. 4. ideas and knowledge. 3. What are the different types managerial functions? Explain the planning process Why controlling is important in an organization? Explain the importance of directing in your own view. New Delhi 2. Communication: It means transfer of information and under-standing from person to person. management tasks and responsibilities Truman Talley books . fundamental of management. 3.4 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. 2. It enables group to think together and act together. Communication also leads to sharing of information. New York Stephen P.

After reading this lesson we will be able to understand 1. 2. 6. Koontz w the first academician attempted to classify various approaches into schools of management theoryHis work was advanced by 'John F.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the concepts relating to school of thoughts and the evolution of management thought.2 Evolution of management theory 3. 4. Management theory may be classified into 6 schools of thought viz 1. The manager is dynamic.1 INTRODUCTION Management is an important factor in an organisation.3 : EVOLUTION OF MANAGEMENT AND SCHOOL OF THOUGHTS Structure 3. Mee. and never become production.1 Introduction 3.Copper etc. 2. 5.3 Various school of thoughts 3. Classical school Human relation school Decision theory school Management science school Systems theory school Contingency theory school 1. Joseph Litterer. Koontz 0' Donnel describes. life giving element in every business.W. 6. Classical School 15 .military organizations are more useful to modern management.2 EVOLUTION OF MANAGEMENT THEORY Management principles and practice developed and used by Roman catholic church and . resources of production remain resources. without his leadership.5 Answer To Check Your Progress Exercise 3.0 Aims and objectives 3. W. 5. 3. The Classical school Human relation school Decision theory school Management science school Systems theory school Contingency theory school 3. "No other area or human activity is importance as management".UNIT .4 Some Useful Books 3. 3. 3. 4.

Taylor. Office holding as a career 7.. Taylor and his followers contributed efficient management at production level. security. replaced "rule of thumb" under scientific management. command. a) Scientific management school b) Management process school c) Bureaucracy theory school of management a) SCIENTIFIC MANAGEMENT SCHOOL F. Employment and promotion on the basis of merit 6. He made use of observation. rationality and reasoning as chief instruments for developing managerial system. 3.3 VARIOUS SCHOOL OF THOUGHTS This includes 3 schools of management thought viz. making 5. financial.Davies. 2. R. mainly gantt. Fixed salary for employees 16 .administration industrially at Generale. accounting and managerial. Assignment of fixed duties 2. technical. Impersonalized decision. Fayol. Oliver Sheldon etc. 4. The other contributors to process management theory are James D. Fayol regarded these as "universal" -applicable to all kinds of organization. analysis. control etc.C. Identified management as important activity. organization. Mooney. c) BUREAUCRACY THEORY SCHOOL OF MANAGEMENT This theory was developed by Max Weler. co-ordination. which consists of the functions like planning. commercial. Administration through rules 4. didn't produce systematic theory of management. It aimed at an overall analysis of management process. Frank and Lillian Gilbarth and Emerson. and He profounder 14 principles of management. Mary Parker follet. b) MANAGEMENT PROCESS SCHOOL This was first developed by Fayol. A bureaucratic organization is characterized by 1. experimentation. Alan C.W. Basic components of scientific management are as follows: 1. Determination of standards of performance Functional foremanship Responsibilities of management Differential piece work system of wage payment Mental revolution Significant contributions were made by the followers of Taylor. .Reiiey. the father o£ scientific management.3.. .. measurement. He stated that technical ability as more important at lower level of management and managerial ability at higher level of management. In 1916 he published a book in French . 5. Fayol divided all activities of industrial undertaking into 6 groups viz. Hierarchy of authority and chain of command 3.

Rensis Likert. a system of grapevines. Decision Theory School This was profounded by Simon and others. non-logical and illogical behavior. Human relation school of thought was enriched by Kurt Lewin. It emerged from these researches that productivity. not the totality of management. 4. a continuous interaction relationship with their environment. According to this school of thought decisions should be taken at the right time and they should be related to the situations and should be feasible in the context conceived. Management Science School 17 . Limitations Like classical theory. informal status system. but failed to develop integrated theory of management. : 2. 3. as they are in. rituals and mixture of logical.  They assume employees can be motivated by financial incentives alone and ignore their social and psychological needs. Their approach concentrates on rational approaches to decision making by selection of course of action from various possible alternatives. Behaviourilists enriched management theory in areas of group dynamics.  Their overall approach is mechanistic. motivation. Chris Argyris. they also viewed organisation as closed system which is self contained and isolated from its environment. Human relation school of management was developed as a result of findings of Hawthorne experiments. communication and leadership. Organisation is intact an open system. motivation to work and morale are related to social organisation at work and psychological factors and not to physical factors. Decision making though central to managing.Limitations of Classical Theories  They view organization as a machine subject to certain immutable laws. Human Relation School Classical theorists either ignored or over simplified human factor. This theory focuses on the decision and decision making process. Douglas Me Oregor. It also showed that organisation is indeed a social system. is only an aspect of management.  They are based on the assumption that productivity is the only creterian of efficiency. This theory is an out growth of the theory of consumer's choice with which economists are more concerned. It is an attempt like the functioning of human body through the study of circulatory system.

inventory control. machine loading. 3. Each of these sub-system is in .Management scientist Harvold Koontz consider management as a rational and logical process and think that alt activities and operations of management can be expressed in terms of mathematical relationships and models. authority-responsibility relationship. organizations are in a continuous interaction and interdependent relationship with their environment composed of numerous systems. As open systems. In fact. Management policies and practice.itself a system composed of various sub systems which are also interdependent and interactional relationship among themselves. production scheduling. The. are only toots of management and not management itself. operations research. 6. It regards management as situational. plans in accordance with prevailing environmental conditions. probability theory etc. The success of management depends on ability to cope with environment. like 1. But mathematics is only a tool rather than a school. 5. formulate strategies. All managerial actions will depend upon particular prevailing circumstances and situational factors. :The various sub systems or parts of an organisation are linked with each other through its communication network. policies. Management is situational and managers should design organisations. System theory management has been regarded as too abstract to provide useful guidelines to practicing managers. define objectives. Situation decides the pattern of organisation and management most appropriate in practice. respond to changes in environmental forces. Contingency Theory School This theory rejects the universality thesis and emphasis that there is no best way to manage. warehouse operation and resource allocation. objectives. 4. 3. policies procedure and other aspects of coordinating mechanism. It focuses on the interrelationship within and among subsystems as well as between the organisation and its environment. As a system an organization is composed of a number of sub systems or parts. to be effective. decision. Complex problems of management can be solved through quality control. integration and adapation with environments and growth. It emphasizes the multivariate nature of organisations and attempts to understand how organisations operate under varying conditions and in specific situations. Systems Theory School This theory views organisation as an organic and open system which composed of interacting and interdependent parts. 6... Organisation as systems have a variety of goals. 5. Production sub system Supportive sub system Maintenance sub system Managerial sub system Individual sub system Informal groups Ail this sub-systems operate in a interdependent and interactional relationship. Chief among them are survival.4 SOME USEFUL BOOKS 18 . 2.

Management Principles and practices. Fundamental of management. Sultan chand and sons . Tata McGraw Hill. Explain about Contingency theory school 19 . Tata McGraw Hill.L. Explain how the evolution of management theory came. fundamental of management. New Delhi. New York 2.. Sultan chand and sons.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Essentials of Management.gupta.Koontz and Weirich. New Delhi 3.Prasad.1.M. New Delhi 4.B. 2.Koontz and Weirich. List the various school of thoughts Explain classical school theory Explain the Classical school theory Discuss in detail the following a) Human relation school b) Decision theory school c)Management science school d) Systems theory school 6.C. management tasks and responsibilities Truman Talley books . New Delhi 5. Pearson 2003 3.Peter F. 5. 6. 3.Drucker.Robbins.Stephen P. 4. Organizational Behaviour.

1 INTRODUCTION Business is an economic activity. etc. some provide housing. that keep you fit and takes care of your health. As we know.0 AIMS AND OBJECTIVES The main objective of this lesson is to understand the basic responsibilities a business should have and also the concept towards different interest groups and business groups. For example. For example. There are also obligations towards yourself. This creates an obligation on the part of business to look after the welfare of society. Now you fulfill all these obligations by performing certain activities which are called your responsibilities. brushing your teeth. particularly towards members of the society with whom you interact or towards the society in general.4 Responsibility Towards Different Interest Groups 4. However. It uses the resources of the society and depends on the society for its functioning. you must have seen businessmen spending money on different aspects.1 Introduction 4. taking food timely. are called your social responsibility. you must have seen businessmen maintaining and developing gardens and parks on streets and squares in cities. So all the activities of the business should be such that they will not harm. Now Business Studies why do you perform all these activities? It is because you live in a family as well as in a society and the members of your family as well as the society want you to do all of them. Let us learn more about why businessmen engage themselves in such activities. For example.3 Concept Of Social Responsibility 4. 4. keeping the road clean by not throwing garbage on it. which is not going to give them any profit straightway. For example.0 Aims And Objectives 4. every business operates within a society. showing respect to elders obeying traffic rules on road etc. The expectations of the family or society become your obligations. going to sleep early at night. They do several things for you and expect something from you. which you need to fulfill. Any responsibility you have. taking care of your parents or children. listening to your parents. 4.5 Some Useful Books 4. Social responsibility of business refers to all such duties and 20 . etc. Some businessmen engage themselves in research for improving the quality of products. you perform a number of activities. education and health care to their employees and their families.4 : SOCIAL RESPONSIBILITIES OF BUSINESS Structure 4.2 SOCIAL RESPONSIBILITY In your daily life. rather they will protect and contribute to the interests of the society. This is true in case of business also.2 Social Responsibility 4.6 Answer To Check Your Progress Exercise 4. which you must do. transport. which you need to fulfill.UNIT. which is carried out on a regular basis to earn profit.

investors. These duties can be a part of the routine functions of carrying on business activity or they may be an additional function of carrying out welfare activity. It means that if any business donates some amount of money to any hospital or temple or school and college etc. Social Responsibilities of Business Thus.. People prefer to buy products of a company that engages itself in various social welfare programmes. to its customers and simultaneously to control pollution and conserve natural resources. investors. it encourages them to earn profit through judicious management of the business. Secondly. It takes care of those who are instrumental in securing its existence and survival like. to earn profit. as it is a part of the society. So. security and proper working condition to its employees. However.obligations of business directed towards the welfare of society. 21 . adulteration. Again. tax evasion and cheating customers etc.3 CONCEPT OF SOCIAL RESPONSIBILITY We all know that people engage in business to earn profit. But the question arises. 4. and then runs a hospital to treat poor patients at low prices his actions cannot be socially justified. it is not to be considered as discharge of social responsibility because charity does not imply fulfilling responsibility. profit making is not the sole function of business. etc. However. every business must ensure a satisfactory rate of return to investors. the interest groups may be owners. maintain the environment properly etc. Instead. while doing so two things need to be noted to view it as social responsibility of business. For example. Let us consider the following points: 1. Social responsibility implies that a businessman should not do anything harmful to the society in course of his business activities. First. employees. Public Image . providing better products. government and society or community. any such activity should not be such that it is good for somebody and bad for others. consumers and government in particular and the society and community in general. Suppose a businessman makes a lot of money by smuggling or by cheating customers. consumers. hoarding. after sales-service.the owners. Why should business be socially responsible? Social responsibility is a voluntary effort on the part of business to take various steps to satisfy the expectation of the different interest groups. by providing better working and living conditions to its employees. It performs a number of social functions. make available quality products at reasonable price to its consumers. provide good salary. any such activity is not charity. The earnings of business also depend upon the public image of its activities.The activities of business towards the welfare of the society earn goodwill and reputation for the business. good public image also attracts honest and competent employees to work with such employers. why should the business come forward and be responsible towards these interest groups. the concept of social responsibility discourages businessmen from adopting unfair means like black-marketing. every business must contribute in some way or the other for their benefit. employees. As you have already learnt.

Proper utilisation of capital and other resources. Instead. They protest against the supply of inferior and harmful products by forming different groups. of the society. They are called as interest groups because by each and every activity of business. suppliers. competitors. The primary responsibilities of business towards its owners are to: a. The employers should try to fulfill all the expectation of the employees because employee satisfaction is directly related to productivity and it is also required for the long-term prosperity of the organization. c. Run the business efficiently. The business generally interacts with owners. transportation.Besides getting good salary and working in a healthy atmosphere. Consumer Awareness . roads. water. Survival and Growth -Every business is a part of the society. Employee satisfaction .To avoid government regulations businessmen should discharge their duties voluntarily.4 RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS After getting some idea about the concept and importance of social responsibility of business let us look into the various responsibilities that a business has towards different groups with whom it interacts. They contribute capital and bear the business risks. For example. support from the society is very much essential. government and society. b. Growth and appreciation of capital. customers. if any business firm pollutes the environment it will naturally come under strict government regulation. 3. i. So it should be the responsibility of every business to spend a part of its profit for the welfare of the Society. investors. etc. For example. ii.2. employees also expect other facilities like proper accommodation. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.Now-a-days consumers have become very conscious about their rights. So for its survival and growth. the business firm should engage itself in maintaining a pollution free environment. 4. earn more profit. 4. which may ultimately force the firm to close down its business. education and training. 5. if business spends money on training of the employees. d. it will have more efficient people to work and thus. Business utilizes the available resources like power. employees. Responsibility towards owners Owners are the persons who own the business. land. Responsibility towards investors 22 . Government Regulation . Regular and fair return on capital invested. the interest of these groups is affected directly or indirectly.

b. Timely training and development. These employees put their best effort for the benefit of the business. adulteration. Banks. b. v. iv. There must be proper after-sales service. If the employees are satisfied and efficient. The responsibilities of business towards its investors are : a. Certain suppliers. Giving regular orders for purchase of goods. The responsibilities of business towards its employees include: a. Responsibility towards customers No business can survive without the support of customers. Opportunity for better career prospects. bonds. Products and services must be able to take care of the needs of the customers. There must be regularity in supply of goods and services d. h. Timely repayment of principal amount.Investors are those who provide finance by way of investment in debentures. Grievances of the consumers. g. must be avoided. Responsibility towards suppliers Suppliers are businessmen who supply raw materials and other items required by manufacturers and traders. called distributors. f. Job security as well as social security like facilities of provident fund. b. The responsibilities of business towards these suppliers are: a. Unfair means like under weighing the product. Products and services must be qualitative c. Proper working conditions and welfare amenities. if any. etc. Price of the goods and services should be reasonable and affordable. d. deposits etc. Timely and regular payment of wages and salaries. retirement benefits. financial institutions. must be settled quickly. Ensuring safety of their investment. iii. Regular payment of interest. and investing public are all included in this category. e. b. group insurance. f. So it is the prime responsibility of every business to take care of the interest of their employees. Better living conditions like housing. supply finished products to the consumers. Dealing on fair terms and conditions. Timely payment of dues. canteen. All the advantages and disadvantages of the product as well as procedure to use the Products must be informed do the customers. Availing reasonable credit period. As a part of the responsibility of business towards them the business should provide the following facilities: a. c. crèches etc. g. e. d. Responsibility towards employees Business needs employees or workers to work for it. 23 . c. transport. pension. then the only business can be successful. etc.

7. which may be as follows: 1. 3. iii. not to defame competitors through false or ambiguous advertisements. viii. canteen. families etc. Business. Not to indulge in corruption through bribing and other unlawful activities. Promotion of sports and culture. ii. technology etc. Conforming to pollution control norms set up by government. being a part of the society. organizations. Not to indulge in monopolistic and restrictive trade practices. h. Opportunity for better career prospects v. duties and taxes regularly as well as honestly. 5. There exists a relationship among them. crèches etc. it has certain responsibilities towards society. Thus. It also sometimes encourages the business to indulge in negative activities like resorting to unfair trade practices. Payment of fees. Responsibility towards government Business activities are governed by the rules and regulations framed by the government. Responsibility towards society A society consists of individuals. vii. ii. 2. groups. Regular supply of goods and services vi. i. 4. 6. The various responsibilities of business towards government are: a. not to offer to customers heavy discounts and /or free products in every sale. They interact with each other and are also dependent on each other in almost all activities. not to offer exceptionally high sales commission to distributors. c. transport. To help the weaker and backward sections of the society To preserve and promote social and cultural values To generate employment To protect the environment To conserve natural resources and wildlife To promote sports and culture To provide assistance in the field of developmental research on education. Following are the various responsibilities of business towards the different interest group as discussed above. They all are the members of the society. Protection of environment. medical science. Proper working conditions and welfare amenities vii. Goods and services at reasonable and affordable price. iii. which may be direct or indirect. iv. Existence of competition helps the business in becoming more dynamic and innovative so as to make itself better than its competitors. Setting up units as per guidelines of government b.vi. 24 . agents etc. d. also maintains its relationship with all other members of the society. The responsibilities of business towards its competitors are i. Better living conditions like housing. Responsibility towards competitors Competitors are the other businessmen or organizations involved in a similar type of business.

Sultan chand and sons. Conservation of natural resources and wildlife.Viii Prompt after sales services.gupta.L. Fundamental of management. fundamental of management.. New York 2.Robbins. Essentials of Management.6 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. New Delhi 4. ix. Management Principles and practices. 4. Why social responsibilities is so important in a business? 2. Tata McGraw Hill.5 SOME USEFUL BOOKS 1.B.M.Stephen P. management tasks and responsibilities Truman Talley books .Koontz and Weirich.Drucker. New Delhi. What are the different ways in which social responsibilities to be followed in a business? 3 Explain how to have Responsibility Towards Different Interest Groups. Organizational Behaviour. New Delhi 4. New Delhi 5.Prasad. 25 .C.Peter F. Tata McGraw Hill. Sultan chand and sons .Koontz and Weirich. 6. Pearson 2003 3.

UNIT.2 Nature Of Planning 5.5 Some Useful Books 5. and thus helps you avoid piecemeal decision making. leading. Planning is the first managerial function to be performed in the process of management.1 INTRODUCTION Planning Plans are methods for achieving a desired result.” What is planning concerned with? Planning provides a sense of purpose and direction. and facilitates control. Planning is a rational action mixed with a little thought.1 Introduction 5.6 Answer To Check Your Progress Exercise 5. there would have been no need for planning. Goals or objectives are specific results you want to achieve. It is a comprehensive framework for making decisions in advance. Importance of planning 3. It is a predetermined course of action to achieve a specified aim or goal. Planning is a primary function.0 Aims And Objectives 5. and controlling functions of management. Planning is thus “the process of establishing objectives and courses of action prior to taking action. It is concerned with the end (what is to be done) as well as with means (how it is to be done). Types of planning 5. Planning is deciding in advance the objectives of the organisation tin short run as well as in long run and means for attaining them. it helps you to anticipate the consequences of various courses of action.3 Importance Of Planning 5. Nature of planning 2.4 Types Of Planning 5. It also facilitates the organizing. 26 . Is planning really needed? If… organizations… never faced changes in the environment. Planning is one of the functional areas of HR.5 : PLANNING NATURE. Planning also helps identify potential opportunities and threats. It is the most fundamental function of management. it provides direction and a sense of purpose.0 AIMS AND OBJECTIVES The main objective of this lesson is to understand the 1. Planning: allows you to make your decisions ahead of time. it provides a unifying framework against which to measure decisions. TYPES AND PROCESS Structure 5.

3. making forecasts and the determination of best course of action. It lays down the ends and means to achieve them. directing. 4. A manager should constantly watch the progress of his plans. directing. coordinating and control. Planning is pervasive Planning is a pervasive activity covering all the^ levels of enterprise. Planning is a selective process Out of the many alternatives one is chosen which suits the enterprise most and from which results are expected. the middle management and lower management are concerned with administrative planning and operational planning respectively. It governs survival. 5. Planning is a continuous process and no plan is final. It lies as the basis of all other managerial functions including organizing. It is an interim report. Primacy of planning Planning is the first of the managerial functions. While top management is concerned with strategically planning. leading and motivating as well as controlling. Focus on objectives: A plan must concentrate on accomplishing certain objectives. 5. both within and outside the organization. planning is an intellectual process involving mental exercise.2 NATURE OF PLANNING 1. It is involved in all management functions. He must constantly monitor the conditions. It is an intellectual process According to Koontz and o' Donnel. fore seeing future developments. 2. It is always subject to revision. It precedes all other management functions. Planning is a continuous process It deals with future uncertainties. to determine if changes are required. growth and prosperity of any organisation in a competitive and ever changing environment.Planning concentrates on setting and achieving the objectives of an organisation. staffing. It facilitates organizing. "Planning is concerned with decision making relating to’ a)What is to be done b) How it is to be done c) When it is to be done d) by whom it is to be done 27 . 6. The planning function is performed by managers at every level.

It is utterly foolish to think that controlling could be accomplished without planning. Planning is flexible The process of planning should be adaptable to changing environmental conditions. 5. Planning helps the manager in carving out the future course of action and this brings higher degree of certainty and order into the organisation.and forecasts and the redrawing of plans to maintain a course towards a designed goal. Koontz and O’Donnell states that "effective planning requires continual checking on events . It tackles increasing complexity is modern business Modern business requires large . It is defined as a process of choosing among alternatives. staffing. programmers. We must have the maximum results at minimum cost. The guiding principle of a good plan is maximum output and profit at the minimum cost. well publicized policies." 8. It is a decision making process Decision making is an integral part of planning.3 IMPORTANCE OF PLANNING Planning offsets future uncertainty and change A business concern has to work in an environment which is uncertain and ever changing.7. procedures and strategies for accomplishment of these objectives. Planning. through its defined objectives. It helps in exercising effective control Planning is clearly a prerequisite for effective controlling. 9. 4. It is directed towards efficiency. Decision making will occur at many points in the planning process. 10. Planning also focuses on accurate forecasts. directing and controlling. 28 . there is no predetermined understanding of the desired performance. Without planning. is an integrated process Planning involves not only the determination of objectives but also the formulation of sound policies. Plans are selected courses along which the management desires to co-ordinate group action. It helps in co-ordination Planning.number of different specialists. when it is to be done. It is the 'first of the managerial functions and facilitates all other functions like organising. 2. economy and accuracy Efficiency of plan is measured by its contribution to the objectives as economically as possible. This makes it necessary for the management to depend on planning to get clear idea of what is to be done. where it is to be done and how it is to be done. programme and procedures helps the management in the co-ordination process. 3.

Decision making involves making a choice from the various available alternatives after evaluating each of these. Every organisation exists to achieve certain objectives. A good plan not only optimizes productivity. co-ordination of activities. Cinder planning. This facilitates unity of action and also avoids confusion and misunderstanding at any level. It facilitates unity of action. procedures and programme are pre-determined and every decision and action should be within the frame work of predetermined policies. Planning concentrates attention on the dominant goals of the organisation.5. policies. unity of action. but provides satisfaction to those who implementing it. Planning facilitates optimum utilization available resources. It helps in avoiding Business failures. By predicting future. 7. every thing is well planned. planning helps in taking future oriented decision. economy in operation and Off-setting future uncertainty and change. programme and procedures. Guides decision making. It improves the competitive strength of organisation. Focuses attention on objectives and results. As planning involves the selection of best objectives. Since. Planning makes objectives concrete and tangible. 10. The success of an organisation depends to a: great extent on the type of decisions that are made at various" levels of an organisation. 9. Planning results in the use of most efficient methods of work. 8. 29 . It helps to reduce the cost and to increase economy. Secures economy and efficiency in operation. there is possibility of avoiding business failures. It helps in proper utilization of Company's Resources Planning helps for the proper utilization of available scarce resources for the achievement of company's objectives at the cheapest and best manner. 6.

marketing. It is concerned with future direction of the enterprise. which the enterprise should go in etc. They constitute the steps toward the implementation of long range plans. Long range planning 13 more important because it has far reaching effects. This has a longer time horizon. The purpose of corporate planning is to determine long term goals of any enterprise and to generate plans to achieve these goals. Corporate planning is done at top level management. This plan is entrusted to middle and lower level management. Functional and Corporate Planning Functional plan relate to segmental plan like manpower. Such plans are prepared to implement departmental or divisional plans. the lines of business. These plans are normally subdivided into monthly or weekly plans for control purposes. This plan dealt with price adjustments. strategies and policies for the entire organisation. consisting a period of one to two years. planning etc. the range of new products and market to be pursued.e. over a fairly long period of time. Long-range plan tend to be nebulous and tentative as it deals with more distant future which is more uncertain and also more difficult to predict. and if there is any variance. Corporate planning is the composite of all functional plans i. handling day to day problems of sales force etc. 1. Group or Sectional Planning This refers to planning for specific groups or sections with in a department or division. These plans are formulated by middle level management and approved by top management.4 TYPES OF PLANNING Long Range and Short Range Planning Long range planning is called as strategic planning..5. say five to ten years. Planning for the company as a whole is called corporate planning. corrective steps would be taken up. Climate for planning A climate conducive to planning should be established throughout the organisation. Every superior manager should remove obstacles to planning and provide facilities for 30 . The management and special planning officials are involved in this. aggregate. Environment For Effective Planning Managers may use the following measures in order to overcome the limitations and to make planning more effective. This involves tentative determination of enterprise's broad goals to be achieved and the strategies to be adopted for the purpose. Short range plan is called as operating plans. financial. This planning is segmental and reactive in nature. It is very broad and general in nature. buying for next season. Sectional plan are formulated at operating level of management. It determines the scope and activities of particular department. It lays down objectives. Budgeted performance is compared with actual performance. These goals generally relate to sales and market share.Mostly short rangte plans are in the form of budgets.

Accurate forecasting is essential for correct premising. These consultations will improve their commitment to 'planning. This can be done by setting clear goals. Short term operational plans are the means of implementing long term plans. Integration of plans Many times sound long term plan fails because there is lack of integrated planning. 31 . Sound communication Successful implementation of plans requires complete understanding and motivation on the part of employees at all levels. Hence. Careful premising Planning premises constitute the frame work within which planning is done. 5. Management information system An efficient system should be developed -so that relevant facts and figures are made available to the managers at right time. 2. Another participative planning is 'grassroots budgeting'where budgeting process starts in lower level and carried upward to top level. The overall objectives of the enterprise serve as guidelines for preparing plans at different levels. different plans should be properly balanced. This is possible when various plans are communicated clearly in time. 3. Top management support Top management is responsible for the success or failure of the entire organisation. Planning committee at various levels may be constituted. All relevant factors should be considered while formulating planning premises.planning. 6. Hence. Planning must be flexible and well organised. Planning is likely3 to be pragmatic and efficient when managers at alt levels are given an opportunity to make suggestions. establishing realistic planning premises and ensuring information and appropriate staff assistance at all levels. Clear cut objectives The existence of clear and specific objectives is essential for efficient planning. Availability of resources should be ensured before a future course of action is charted out. 4. 7. planning can be effective only it has the initiative and support at top level. Top executives should vigorously review subordinate plans and their performance. 8. Participation in planning "Planning can be collaborative or joint process.

9. Open system approach Plans should be kept upto date through periodic review and revision. _Hence, managers must continuously monitor the environmental changes and their impact on enterprise; An element of flexibility should be introduced in planning. 10. Cost benefit analysis The planners should conduct from time to time a cost benefit analysis, to ensure that the benefits of planning are more than the cost involved. Any plan which is not worth its cost should be discarded. 5.5 SOME USEFUL BOOKS 1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York 2. Stephen P.Robbins, fundamental of management, Pearson 2003 3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi 4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi 5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi. 6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi 5.6 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Explain the nature of planning 2. Write about the importance of planning 3. Explain in detail the different types of planning in an organization.

UNIT-6 :DECISION MAKING

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Structure 6.1 Aims and objectives 6.2 Introduction 6.3 Definition 6.4 Characteristics 6.5 Rationality in Decision Making 6.6 Classification of Decisions 6.7 Decision Making process 6.8 Types of managerial decision 6.9 let us sum up 6.10 Key words 6.11 Some Useful Books 6.12 Answer To Check your Progress EXERCISE 6.1 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the concepts relating to definition, characteristics, classification, process and its types. 6.2 INTRODUCTION Decision making is the important function in all management orgnization. If decision were not taken properly in right time, the organization may be thrown to the deep level where it may not be in position to withstand its future in a successful way. Decisionmaking is a complex mental exercise involving use of careful thinking and deliberation, analysis and verification.

6.3 Definition
 “ The work a manger performs to arrive at conclusions and judgment. ”

- “ Allen “  “ Decision–making is a process of selection from a set of alternative courses of action which is thought to fulfill the objective of the decision-problem more satisfactorily than others ” - “ Haynes & Massie “

6.4 CHARACTERISTICS
 It is goal-oriented activity.  It is aimed at achieving certain stated goals of the organization.  It is a process of selection from amongst alternative courses of action, envisages two or more alternatives from which a final choice can be made.  It involves commitment in the face of uncertainty.

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 Decision-making is a complex mental exercise involving use of careful thinking and deliberation, analysis and verification.  It can be both positive & negative. It may just be a decision not to decide.  It involves a time dimension and a time lag.  It is situational. A manager may take one decision under particular circumstances and another in a different situation. It is an on-going activity. A manager has to continuously make decision of one type or the other. It is a continuous process.

6.5 RATIONALITY IN DECISION MAKING :The concept of rationality is defined in terms of objective and intelligent action. There are two contrasting views of models of decision making with each model using degree of rationality.  Economic Model : Economic rationality implies that decision making tries to maximise the values in a given situation by choosing the most suitable course of action. A rational business decision is one which effectively and efficiently assures the attainment of aims for which the means are selected. Bounded Rationality : It explains the decision making behaviour in real life. Under a model, for a variety of reasons, complete rationality is not always possible. That is why people prefer to take satisfactory decisions instead of ideal or optimum decision. In reality, they confine themselves to few important alternatives which have limited risks combined with favourable consequences.

Evaluation of Alternatives : Quantitative and Qualitative Factors : Quantitative, such as fixed & operating costs Qualitative, such as quality of labour relations, the risk of technological changes & the domestic (or) international political climate need to be taken in to consideration Attention has to given to both quantitative & qualitative factors when comparing alternatives

Marginal Analysis : - It is useful to evaluate the given alternatives - The objective is to maximise profits, goal will be reached, when the additional revenues & additional cost are equal - Marginal Analysis can be used by comparing factors other than costs & revenues. 34

costs or profits It focuses on the results of a program It involves a comparison of the alternative in terms of the overall advantage It helps weigh the potential benefits of each alternative against its potential cost. . Such decisions affect the functioning of the organisation directly.(OR 3 Approaches)  Experience Relying on past experience The experienced managers are familiar with the system requirements & have knowledge to decide on a particular problem .Among alternatives is to try one of them & see what happens. This is based on rationality.6 CLASSIFICATION OF DECISIONS : Programmed & Non-Programmed Decisions : It deals with routine or repetitive type of problem.  Organisational & Personal Decisions : Taken by an individual in his official capacity to further the interest of the organisation known as organisational decisions. Selecting an Alternatives :. judgement and experience. There is no established procedure.  Non-Programmed Decisions : It deals with unique or unusual or non-routine problems.Good decisions must be evaluated against future events  Experimentation .Should be used only after considering other alternatives  Research & Analysis Means solving a problem by trust comprehending it Search for relationships among more critical of the variables. Key to Success in Decision-Making :- 35 . This type of decision is taken by top level executives.Some more doubts left even after experimentation . It seeks the best ratio of benefits & costs Finding the least costly way of reaching an objective A technique for choosing the best plan when the objectives are less specific than sales. Middle or low legal executives take this type of decision. constraints & Premises This is to develop a model simulating the problem 6. There are established procedures to take decisions. - Cost effectiveness Analysis : Is an improvement over the marginal analysis technique.It is to be most expensive of all techniques .

At the time of decision-making. In order to identify the real problem. they possess as well as understand all the information that is relevant to their decision. The quality of decision will depend upon the quality of information used. incremental. managers engage in rational decision-making processes. In contrast. It should be determine the strategic factor relevant to the decision. There are two major types of models used by managers to make decisions (1) rational model (2) non-rational models. 6. and garbage-can models. Clear understanding of the problem is necessary. non-rational models of managerial decision-making suggest that limitations of information-gathering and information-processing make it difficult for managers to make optimal decisions.7 DECISION MAKING PROCESS Any decision-making process contains seven basic steps : (1) Identifying the problem (2) Identifying resources and constraints (3) Generating alternative solutions.  36 . (5) Selecting an alternative. (4) Evaluating alternatives. specifying the nature and magnitude of the problem. Set decision-making goals. The success of an organization depends greatly on the decisions of managers.       Be problem-oriented not just solution-oriented. Decision-making describes the process by which a course of action is selected to deal with a specific problem. (6) Implementing the decision. Evaluate and follow up the decision.  Defining the Problem: The first step in decision-making is that of recognizing & identifying the problem. Analyzing the Problem: Analysis of the problem involves determining its causes and scope. In the rational model. a manager should look beyond the symptoms and take an overall view of the situation. (7) Monitoring the decision. Always check the accuracy of the information Don’t’ be afraid to develop innovative alternatives Be flexible Gain commitment for decisions at an early state. The three non-rational models of decision-making discussed in the chapter are: satisfying. A written problem statement should be prepared.

actual results of action should be compared with the expected results. it needs to be put into practice. every decisionmaking situation falls into one of three categories: (i) certainty. Experimentation & Research and analysis. Evaluating the alternatives: The various developed alternatives are compared and scrutinized to identify the pros and cons of each. the decision-maker knows with reasonable certainty what the 37 . Timing (Whether the situation is urgent or not) & Limitation of resources (Resource and other factors strategic to the decision. any resistance to the decision has to be overcome. Programmed decisions involve simple. First. and (iii) uncertainty. (ii) risk. They have well-established and understood solutions. Lastly feedback mechanisms are developed to check on the progress of implementation. Fourthly. Monitoring the decision Once the decision has been put into practice. the criteria for evaluation should be specified. Non-programmed decisions deal with unusual or exceptional problems. wherever necessary the decision should be modified. time & effort involved in each alternative). Thirdly. Economy of effort (Cost.8 TYPES OF MANAGERIAL DECISION Managerial decisions are of two types – programmed decisions. such as Experience. A problem can be solved in several ways all of which are not equally good. Best alternatives are considered before a course of action is selected. common. Based on the degree of certainty involved.     6. the decision should be communicated to all concerned employees. responsibility for carrying out the decision is assigned to specific individuals. In conditions of certainty. Before evaluation. Implementing the Decision: After a decision is taken. and non-programmed decisions. Secondly. If there is any deviation the same should be analysed to identify the causes. frequently occurring problems. the decision maker has to develop alternative solutions for the problem. Developing Alternative Solutions: After the problem is analyzed. Selecting the Best Solution: Selecting the best solution among the alternatives is based on some important factors. The criteria such as Risk. procedures should be developed for executing the decision. It involves several steps. An effective feedback is necessary for determining the effectiveness of implementation.

Koontz and Weirich. precision and economy. Major decisions in organizations are often made by groups rather than a single individual. New Delhi 38 . Conditions of uncertainty exist when the future environment is unpredictable and everything is in a state of flux. The most common forms of group decision-making are: interacting groups. Stephen P. Decisionmaking is a complex mental exercise involving use of careful thinking and deliberation. and provides it in a form that is of value to functional managers. Delphi groups.Drucker. management tasks and responsibilities Truman Talley books . Pearson 2003 3. Peter F. What is rationality in decision making? 3. or the consequences of each alternative or their probabilities. and nominal groups. break-even analysis. the risks associated with each alternative. 5. New York 2. ratio analysis and operations research techniques are also present. what conditions are associated with each alternative and the outcome of each alternative. analyzes and summarizes it. financial analysis. Finally.11 SOME USEFUL BOOKS 1.alternatives are. A management information system is a computer-based information system that gathers comprehensive data. the decision-maker has incomplete information about available alternatives but has a good idea of the probability of particular outcomes of each alternative. and who use this system to help them in planning and decision-making. Define decision making and explain the characteristics of decision making.9 LET US SUM UP Decision making is the important function in all management orgnization. fundamental of management. Explain the process of decision making. The decision-maker is not aware of all available alternatives. Under a state of risk. Tata McGraw Hill. 6.Robbins. the organization may be thrown to the deep level where it may not be in position to withstand its future in a successful way. 6. 6.5. brevity.10 KEY WORDS Decision making process 6.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Discuss about the managerial decision types. What are the classification of decision making? 4. the different decision-making techniques such as marginal analysis. A decision support system is an interactive computer system that can be easily accessed and operated by people who are not computer specialists. In order to carry out managerial functions effectively. 2. If decision were not taken properly in right time. managers at all levels require vital information with speed. analysis and verification. Fundamental of management.

next step in management process is organizing.10. 2.1 INTRODUCTION After deciding the objectives. According to Louis A. 7. The term organization is used as a process of management and as a structure of relationships. Organization as a process Organization as a structure Principles of organization (features of good organization structures) Formal and informal organization 7. defining and delegating responsibility and authority and 39 . The activities of the enterprise and establishing |the authority relationships among them. organization is an essential part of human life. arranging.Answer To Check Your Progress Exercise 7. "organization is the process of identifying and grouping the work to be performed.0 Aims And Objectives 7. plans.0 AIMS AND INTRODUCTION The main objectives of the lesson is to understand the following 1. 3.UNIT:7 ORGANIZING PRINCIPLES AND STRUCTURAL DESIGN Structure 7.9 Some Useful Books 7.5 Formal And Informal Organization 7.2 Organization As A Process 7. It is the process of determining. Organization is a dynamic concept.8 Types (Forms) Of Organization: 7. programs and policies formulated for achieving the objectives. It involves coordinating the employee's activities in an efficient manner for accomplishing the enterprise objectives.Alien.6 Advantages Of Informal Organization To Members 7.4 Principles Of Organization (Features Of Good Organization Structures) 7.2 ORGANIZATION AS A PROCESS Organization is one of the important functions of management. 4.1 Introduction 7.7 Disadvantages Of Informal Organization 7. "organizing” is the process of defining and grouping.3 Organization As A Structure 7. grouping and assigning the activities to be performed for the attainment of objectives.

" Organizing process involves differentiation and integration of activities. It is the skeleton framework of an enterprise. o It is a system of co-operative activities of two or more persons for attainment of common purpose. design to achieve its common goal. 40 .enterprise objectives. Nature of Organization o The nature of organization. A structure organization is the structural framework within which the efforts of different people are co-ordinate and related to each other. This is a static or classical concept of organization.3 ORGANISATION AS A STRUCTURE Organization is interpreted as a structure of relationships among positions and jobs for the purpose of achieving . o It establishes relationships for the purpose of enabling the people to work most effectively in accomplishing the enterprise objectives. "organization involves the grouping of activities necessary to accomplish goals and plans." Koontz 0' Donnel defines. the assignment of these activities to appropriate departments and the provision for authority delegation and co-ordination. delegation of authority and creating authority relationship.^ This is the dynamic and humanistic meaning of the term organization. o Organization as a structure of relationships among positions and jobs for the purpose of achieving enterprise objectives. Differentiation is the segmentation of structure into subsystems. It is a group of interacting and interdependent individuals working toward a common goal. : 7. grouping of activities.establishing relationships for the purpose of enabling people to work most effectively in accomplishing objectives. . Experts like money and rely. while integration involves creating unity of effort among the various sub-systems. o Organization as a process or management is concerned with identifying and grouping of activities to be performed. as a process involves a: number of steps like determination of objectives. o It defines and delegates responsibility and authority to appropriate departments. Organization structure refers to network of relationships among individuals and positions in an organization. o Organizing. defined by different writers states the following. assignment of duties to persons. just like architectural plan of a building. It is a blue print of how the management will like the various activities and functions to be performed.

The span of control should be minimum because there is a limit to the number of persons that can effectively supervised by him 4. The organization as a whole and every part of it must be geared to the basic objectives of the enterprise. Unity of Objective The objective of the business concern should be clearly stated. 3. Principle of Authority Authority given to manager enables him to accomplish the objectives of the enterprise. The important principles of organization are. Hence. Span of Control Every manager should have a limited number of subordinates reporting to him directly. Exception Principle Only exceptionally complex matters should be referred to executives for their decision and subordinate should decide matters of routine nature themselves. 7. authority of each manager should be clearly defined and also it should be equal to the responsibility entrusted. Specializations or Division of Work The activities of every member should be confined. This is to ensure discipline to fix responsibility for results. 41 . Unity of Command Each subordinate should have only one superior whose command he has to obey.4 PRINCIPLES OF ORGAMISATION (FEATURES OF GOOD ORGANISATION STRUCTURES) There is a need to follow certain principles in order to formulate and develop a Sound and efficient organization structure. as far as possible. 6. Scalar Principle There should be a clear chain of command extending from top to bottom of the organization. 1. Every subordinate should know who his superior is and who his subordinate are. The activities of enterprise are divided according to different functions and the same assigned to persons according to their specialization.7. This keeps management in formulating the organization structure and also in achieving the objectives of enterprise with minimum cost and effort. 5. to the performance of a single function. 2. The execution can concentrate their time on important matters instead of spending their time on routine matter.

Principle of delegation The organization structure should provide for delegation of authority at every level. Hence. 9. "an organization is formal when activities of two or more persons are consciously coordinated towards a "common objective. 13. If the organization structure has a large number of levels. Community The organisation structure should be serviceable for a long time. The superior should be held responsible for the. Efficiency The organization structure should facilitate the achievement of objectives at minimum possible cost. Principle of simplicity The organization structure should be simple with a minimum number of levels. Unity of direction It means. Principle of responsibility The supervisor should not be allowed to avoid responsibility by delegating authority to his subordinates. 14. responsibility and accountability of each level or clearly defined. Acts of his subordinates to whom he has delegated. the problem of effective co-ordination and communication may arise." In a formal organization. red tape and complexity of control should be avoided. 7. The authority delegated should be equal to responsibility. authority. 10. This is possible if it is dynamic and capable of adapting itself to the needs of changing circumstances. and human relationship and rules planned and structured in order to accomplish organizational goals. Flexibility The organisation structure should be adaptable enough to accommodate technical and other changes in the environment. According to Chester Barnard. 11. It should permit the optimum use of resources. It is a pattern of activities. 12.8.5 FORMAL AND INFORMAL ORGANISATIONS Formal Organization: It refers to organization structure deliberately created by management for achieving the objectives of the enterprise. the position. process. for a group of activities having the same objectives. there should be one plan for one objective-This facilitates verification and co-ordination of activities and also completion of task as per schedule. complicated procedures. By 42 .

" It consists of that relationship these are relatively stable and change only slowly. It arises on the basis of friendship or some common interest. skill.I. of status. responsibility and accountability. age. whims. abolish informal relationship because they are very important and useful for managing the concern efficiently and for achieving enterprise objectives. The essence of formal organization is conscious common purpose and forma! Organization comes into existence when persons. authority responsibility. It is influenced by personal attitudes. This type of inter-relationships.(eg. due to his personal friendship or due to his regard for production engineers job knowledge... relationship. a self respect and of gregarious satisfaction. a feeling of belonging. "informal organization brings cohesiveness to formal organization. It is not on the basis of rules. b) Are willing to act c) Share a purpose Alien defines "the formal organization is a system of well defined jobs. Sense of belonging In a forma] organization a worker is like a drop of water in a ocean and will not be any attachment in between management and workers. C. a) Are able to communicate with each other. common habits.means of rules. leadership qualities etc.) typist working in different departments may form an informal group due to similarity of work. which may or may not be related to work. which emerge spontaneously due to social and psychological forces operating at work place. Keogh Javis defines.) Friendship groups and cliques. Informal organization: It refers to pattern of activities.Barnard states. the workers will not have a 43 ." Both formal and informal systems are necessary for group activity. An informal organization arises from personal and social relations of the people. The people cut across formal channels and communicate amongst each other.. It brings to the members of a formal organization. 7. seniority. (eg. not established by way of any format authority.It is an unintended and non-planned network of unofficial and social pattern of human relationship. are considered as forma! Organizations. an assistant sales manager may prefer to consult production engineer for advice. it prescribes relationship among the people working in the organization.. common language. interactions and human relationships.It represents pattern of interpersonal and intergroup relations that develop within the formal organization. "an informal organization is a powerful influence upon productivity and job satisfaction. common hobby may also lead to informal groups sometime. likes and dislikes." Informal organization is Joint personal activity without conscious common purpose though contributing to Joint results. just as two blades are essential to make a pair of scissors workable. Hence. personality. policies and other regularities of the organization. cannot be shown in "organization chart while inter relations of formal organization can be shown. All enterprises having a system of welldefined position. rules policies etc. regulations and procedures. each bearing a definite measure of authority.6 ADVANTAGES OF INFORMAL ORGANISATION TO MEMEBRS 1.

more detailed and meaningful but possibly distorted and erroneous picture of what is going on in the organization. If a worker breaks a rule. amplify and interpret it. It is the clandestine transmitter and receiver of information before it is officially released. the informal organization amend. For example. the efficiency of operations is reduced and talents of employees are suppressed. Breeding ground for innovation and originality Informal group creates better environment for individual innovation and originality. Safety value for emotional problems The workers are frustrated and gets tension in their routine work. 2. which often run counter to the goals and values of formal organization. Important channel of communication News travel quickly through informal organizations. 7. In such a situation. Individual can experiment his novel ideas. Social control This type of organization provides all its members a set of norms-'guides to correct behavior. Check on authority Informal organization forces manger to plan and act more carefully. members of informal organization may help each other. it gives to each member a human consideration which boost his self image and personality. 3. he seeks a sympathetic ear of a friend in the informal organization. Conflicting norms Informal organization upholds the individual and social goals of its members. his supervisor might have reprimanded him or an overbearing customer might have harassed him. between moral and immoral acts.' These guides serve as a dividing line between good and bad behavior. Each person gets larger. Every manager knows that there is 3 check and balance on his unlimited use of authority. 5. 6 . who got the similar problem share and understood his troubles. without persuading the immediate superior. Changing work assignments increases the group efficiency. Resistance to change 44 . 2. Hence. In informal organization. His friend. between legitimate and illegitimate activities. 7. Aid on the job In case of accidents or illness. After the news is released.sense of belonging. 4.7 DISADVANTAGES OF INFORMAL ORGANIZATION 1. he may be protected from authoritative action.

The character and competence of management tend to suffer. An individual faces role conflict when he has to meet the conflicting requirements of work group and informal group. Forms of organization differ from one enterprise to another. An informal group is bound by convention and custom-In order to maintain equilibrium it resists innovation and change in work methods. Conformity may make group members reluctant to act independently and creatively. 7. Undermine discipline Informal groups oppose management policies rules. It destroys confidentiality of the enterprise. practices and culture of formal organizations. there is a natural tendency to produce role conflict. 4. procedures that are meant to structure and discipline work behavior and performance of employees. Role conflicts Informal groups try to meet the social needs of their members.Informal group tend to perpetuate the status quo. objectives and character. 5. 3. : Members divert their energy and time from Jobs to jungle in faction lighting and petty politics.8 TYPES (FORMS) OF ORGANIZATION: Form of organization is also known as structure or kinds of organization. below  Line organization  Functional organization  Line and staff organization  Project organization  Matrix organization  Committees organization 45 . Hence. which are given. Power politics Informal organizations are often riddled with fictionalization and power politics. Following are the main type of organization structure. Informal organization may ridicule and even sabotages the process. The informal leader may manipulate the group towards selfish or undesirable ends. Managers are forced to become lenient in enforcing rules and regulations in tolerating deviations from required behavior. several types of organization structure have been evolve-d. Rumors The grapevine often carries rumors or false information which is detrimental to smooth functioning of an organization. There are several ways of division of work and distribution of authority. 6.' it is because one form cannot be suitable to every type of enterprise since each one differ in nature. Organization structure is primarily concerned with allocation of tasks and delegation of authority.

Hence. if not entirely. decision-making process is easier and less time consuming. There is no confusion as to -the role of an individual in the organization. He need not depend upon others for advice. It is often referred to as "military".Line organization: It is the simplest. because the line of authority and responsibility resembles the one followed in army or in the church. Therefore. In this type. and the subordinates and operatives are not too many. hierarchical. 2) Prompt decision Every manager can take decision independently without consulting others. 46 .  Where machinery is nearly. Authority flows downwards. assistance or service. but directly in a straight line. The authority and responsibility of every position-. refining. The line of authority is essentially simple mathematical sub-division. This system can be successfully followed  Where the scale of business is comparatively small. each position has general authority over lower positions in the hierarchy in the accomplishment of the main operations of the firm. Line of authority andresponsibility is direct. most direct and oldest type. to foreman and to the workmen.is clearly defined. it is easy to maintain discipline among people in the organization. such as viz. spinning and weaving. responsibility moves upwards. simple and clear. Scalar principle and the principle of unity of command are strictly followed. Each position in the organization structure enjoys general authority over ail the lower 'positions in the hierarchy. Authority flows directly from chief executive to the manager. 3) Effective discipline Each position is under the direct control of its immediate superior position.  Where the labor management problems are not difficult to solve. Every individual understands to whom he is responsible.  Where work is simple and is almost of routine nature. traditional.  In continuous process industries. No subordinate is under two on more superiors. to . Advantages 1) Simplicity Line organization is the most simple to establish and operate. automatic so that there is no call on the intelligence of foreman.assistant manager. Promotion is step by step upwards..

4) Orderly communication Communication Between supervisors and subordinates flows in direct vertical line. 5) Unified control Unit of command- results in close personal contacts between supervisors and subordinates. Direct and close contacts facilitate effective supervision and control. 6) Economical Line organization is quite economical between staff specialists are not required. 7) Fixed responsibility Every manager can be held responsible for the results of his unit. 8) Executive development As every manager has to perform a variety of functions, there is an opportunity for the development of all round executives.

9) Co-ordination As all activities relate to one department are managed by one person, co-ordination can be effective. Disadvantages Line organization suffers from the following drawbacks. 1. Lack of specialization: There is no scope for specialization. A manager has to perform a variety of functions which might not be interrelated. Any manager cannot be equally good in all the functions. Hence, the quality of management will be poor. 2. Over loading The executive is overloaded at each level of organization. He has to look to too many jobs of diverse nature. His efficiency, therefore, does not always remain the same- The work also suffers because of overloading.

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3. Autocratic approach The line of authority is direct and requires high level of obedience on the part of subordinates. There is concentration of authority at the top and one way communication. Managers at the top may be devoid of the realities of situation. 4. Low morale Subordinates are expected to carryout the decision taken by the supervisors. There may be lack of initiative on the part of subordinates. Their opinions and grievances are not properly communicated upward. 5. Instability The success and continuity of the organizations depend upon a few competent managers. Succession problems are acute and there may be lack of continuity when key executives retire. 6. Rigidity Discipline is emphasized so much that it may be difficult to change. FUNCTIONAL ORGANISATION, Cinder the line type of organization, one person is in change of all the activities relating to a department or, section but there is a difficulty of( getting men with sufficient capacity and ending who can look after all the activities efficiently. Taylor, recognize this Imitation, proposed a functional type of organization. Under this type of organization, men with special abilities on trading in a specialized function may be employed. The specialists will be performing the functions which are common to different departments under one organization. Thus, under functional type of organization, identical functions of various departments in an organizations are performed by a specialist, whole in a departmental line organization, one person looks after all the activities of the department of which he is the head. The workers under functional type of organization receive instructions from every a specialist in each of several supervisory functions which are assigned to the different specialists. F.W.Taylor recommended a functional organization of activities at the shop floor level. He was of the view that the foreman should not be burdened with too many activities and instead, he should be assisted by a number of specialists in solving the problems of technical nature Taylor has recommended the following specialists Line and Staff Organizations This is a combination of line and functional structures. Generally this, line authority flows in a vertical line in the same manner as the line organization. In addition, staff specialists are attached to line positions lo advice them on important matters. These specialists do not have power of command over subordinates in other departments. They are purely of advisory nature. "Then the work of line executives increases, they need advice,

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information and help of staff specializes. Hence, staff positions are created to support line managers. Every staff specialist has line authority over the subordinates in his own department. For example, the chief accountant has command authority over accounts and clerks in accounts department. But he has only advisory relationship with other departments like production and sales. Type of staff Staff personnal may consists of a) personal staff, personal assistant or advisor attached to line executive (e) specialized staff (e.g.,) accountant, personal manager, public relation officer etc. General staff (or) other experts in different fields who normally operate at higher levels and advise the top management. Advantages: 1. Specialization: The staffs officers concentrate mainly on the planning function and the line officers on the doing functions. By this method, specialization is attained. 2. Flexibility Staff can be added to line and new activities may be introduced without disturbing the line procedure. Hence, there is greater flexibility in the organization. 3. Expert advice The staff officers provide expert advice and guidance to line officers and by this, the enterprise as a whole gets benefit. 4. Sound decision In this type, the decisions are made by experts and hence, there is a possibility of making sound managerial decisions 5. Relief to line executives The staff officers look after the detailed analysis of each important managerial activity which is a big relief to the line officers. 6. Opportunities for advancements In this type, a greater variety of responsible jobs are available and this provide more opportunities for advancement of capable workers

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B. Discuss about Organization as a structure 3.Robbins.gupta. Koontz and Weirich. Sultan chand and sons . Sultan chand and sons. Koontz and Weirich. Organizational Behaviour. Pearson 2003 3. Peter F. Tata McGraw Hill. L. 6.M. New Delhi 5.. management tasks and responsibilities Truman Talley books . Formal and informal organization .9 SOME USEFUL BOOKS 1. Fundamental of management.Drucker.10 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. New Delhi.7. Essentials of Management. New Delhi 7.Discuss 50 . fundamental of management. New York 2. Management Principles and practices. Explain the process of organization 2. C. Comment on Principles of organization 4. New Delhi 4. Stephen P. Tata McGraw Hill.Prasad.

In fact. span of control.8 Answer To Check Your Progress Exercise 8. Characteristics of Delegation 1. hence. 51 . 8. SPAN OF CONTROL.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the basic concepts underlying the delegation. For any work to be in a better way.3 Span Of Control 8. span of control.6 Line And Staff Authority 8. This process of delegation and re-delegation from superiors to subordinates goes on till all the activities are assigned to persons by whom these are performed.UNIT: 8 DELEGATION.2 Delegation 8.5 Decentralization 8. delegation. Controlling of an organization is also important. he needs authority to take decisions about these and to enforce them. it is delegated to the chief executive. DECENTRALIZATION. decentralization and authority is also important to be known clearly. Every manger in the organization has some activities assigned by the superior. Moreover. for which. The degree of delegation puts a manager to act within the limits prescribed by his superior. rules and regulation. an from there. with in the limits he is not free to act arbitrarily but subject to provisions of organizational policy.0 Aims And Objectives 8. he assigns some activities to his subordinates and delegates them authority.2 DELEGATION Organization units require the delegation of authority to their respective managers so that they can manger their respective units. Delegation is the authorization to a manager to act in a certain way independently. organizing and its structural design are very important. 8. planning. Decentralization.4 Centralization 8.7Some Useful Books 8. authority vests in the owners of the organization. In order to perform these activities.1 Introduction 8. The chief executive cannot perform all the activities.1 INTRODUCTION This lesson deals about the important aspects in organization. LINE AND STAFF AUTHORITY Structure 8. Line and staff authority.

it is general when these are not specified. and method require modifications in delegation of authority. 3. A manager cannot delegate authority which he himself does not process. Capacity of Subordinates of factors determining span of management 3. Since. Degree of Decentralization of factors determining span of management 5. Delegation has a dual characteristic. Use of Staff Assistance of factors determining span of management 7. Authority once delegated can be enhanced. policy. the authority can be recovered back fully in the case of his exit from the organization. Delegation may be specific or general. It includes the number of subordinates who report directly to a manager. though objectives are specified. procedure. As such. Delegation is specific when course of action for specific objectives are specified. Planning of factors determining span of management 6. span of supervision. Communication Techniques of factors determining span of management 8. but you still retain the knowledge too.2. Moreover. You share with others who then possess the knowledge. As Terry has observed. span of authority or span of responsibility. The following factors generally go in determining a proper span of management. the important determinant is the manger's ability to reduce the frequency and time impact of superior-subordinate relationships. Nature of Work of factors determining span of management 4. 'it is something like imparting knowledge. 8. 5. reduced or withdrawn depending upon the requirement. though this ability itself is determined by several other factors. Supervision from Others of factors determining span of management 52 . 1. Similarly. however a superior at the same time still retains authority. Capacity of Superior of factors determining span of management 2. organization climate. it can be written or unwritten. 4.3 SPAN OF CONTROL MEANING The term 'span of management' is also referred to as span of control. A superior delegates authority to subordinates. authority is delegated to an individual. he does not delegate the entire authority to his subordinates because if he delegates all his authority he cannot work. The changes in organization structure.

8.4 CENTRALIZATION This system results in certain advantages to the organization 1. Facilitating Personal Leadership. Personal leadership can be a potent influence in the success of a small organization and during its early growth stages. The success and survival of the small, young enterprise in the competitive market depends upon aggressiveness, singleness of purpose, and flexibility. Under a talented and dynamic leader, centralization in small organization may result in quick decisions, enterprising and imaginative action, and high mobility . 2. Providing Integration. Certain amount of centralization is necessary to unify and integrate the total operation of the enterprise. Some sort of central direction is required to keep all parts of the organization moving harmoniously together towards a common objective. Thus, it acts as a binding force on the various parts of the organization. 3. Uniformity of Action Centralization brings uniformity in all actions in the organization. Thus, to the extent that the organization wishes all its units to do the same thing in the same way or the same time, there must be centralization of appropriate decisions. 4. Handling Emergencies. When emergency decisions affecting all the units of the organization are to be taken, centralization is necessary. The more acute emergency, or the more acute competition requires greater centralized decision-making. Other Benefits. Besides, centralization minimizes duplication of work and wastages requires easier control, and makes communication easier. However, these advantages of centralization are limited in certain circumstances and particularly in smaller organizations. A stage comes when decentralization becomes desirable to achieve its advantages and where the limitation of centralization come in the way of successful organizational functioning. 8.5 DECENTRALIZATION: Many organizations, which were centralized at earlier stages, have been forced to go for decentralization simply because they could not cope up with the situation under centralized authority. These shows the benefits of decentralization, which are as follows: 1. Reducing Burden to Top Executives. Decentralization is necessary for solving the problems of expanding organizations. It is the means by which the chief executive can extend his leadership over a giant organization, when the chief executive makes operating decisions and with problems of immediate urgency, he finds it almost impossible to adopt the relaxed and contemplative point of view necessary for planning and thinking ahead. Decentralization relieves this pressure on the chief executive an provides him time to think for the future and to make plans accordingly. 53

2. Facilitating Diversification. Decentralization can facilitate the growth and diversification of product lines. Divisionalization facilitates diversification an former is successful under decentralization. For under decentralization, each product line is treated as separate unit and proper emphasis on all important matters such as present position, future prospects, an comparative efficiency, can be given. 3. Ensuring Marketing Innovations. Customers require satisfaction in respect of supply of qualitative products, regularity of supply, and at cheaper rates. Marketing innovations ensure better customer satisfaction. Each organization has to carry on these marketing innovations for its existence and growth. In decentralized organization structure, higher level people get much time for the creativity and innovations. The impact of decentralization on both product and market has proved by the various organizations. 4. Motivating Mangers. Various research studies have shown that we organization structure itself can influence the people within the organization. The extent to which the organization facilities participation, communication, delegation, mutual interaction, and interdependence, motivates people for higher productivity. Decentralization tends to emphasize those desirable characteristics in whatever type of structure it is found. 5. Encouraging Development of Managers. Managers are made, not born and decentralization is one of the best methods of developing managers in the organizations. Other methods of management development have their own contributions in this field. However, giving managers a management job to do and to delegate authority for decision-making make them more mature and competent and broad-based. The problem of succession is overcome this way and the future growth and success of the organization are ensured as most organizations find lack of managerial talent a limiting factor in growth. Perhaps, the necessity of management development is one of the compelling reasons for decentralization. 8.6 LINE AND STAFF AUTHORITY Although the term authority has various connotations, in the organizational context, authority is defined as the power to make decisions, which guide the actions of others. Power, on the other hand, is the ability of individuals to influence the beliefs and actions of others. Power can be legitimate, expert, referent, reward, or coercive. Various authority relationships exist in an organization, many of which are related to line and staff functions. Line functions are those, which are directly responsible for accomplishing the objectives of the enterprise, while staff functions are advisory in nature. The main Staff functions are Investigation, research and giving advice to line managers on how to accomplish tasks. Functional authority involves conferring rights upon individuals or departments to control the processes and practices pertaining to personnel in other departments. Instead of making recommendations to the line managers or superiors, functional authority allows staff personnel to issue instructions to line managers directly. Although line managers and staff personnel are expected to work together for 54

accomplishment of organizational goals, there are many factors, which contribute to the conflicts between line and staff personnel. The line managers have clashes with the staff personnel as they feel that staff personnel are not accountable for their actions. Moreover, line managers feel that staff personnel invade their territory and dilute their powers. Since staff personnel may not have experience of the operational activities, their recommendations and ideas may lack applicability. Staff managers feel that line managers do not make the right use of talents of the staff personnel and are not open to new ideas. Further, since staff personnel lack authority, they may not be able to implement their solutions for problems. The difference in the nature of line and staff functions is also a prime reason for conflicts between line and staff managers. The line and staff conflicts can be avoided by having clearly defined authority relationships between line and staff functions and by ensuring proper use of staff talent. The staff personnel should also be made accountable for the outcome of their actions and present line managers the solutions for problems in as complete a form as possible, leaving only its acceptance or rejection to the line manager. Depending on whether the organization follows a centralized or decentralized approach, authority is either retained with the top management or is delegated to the lowerlevel managers. Delegation of authority refers to a manager granting the right to a subordinate to make decisions or use his discretion in judging certain issues. The amount of authority delegated depends on the delegator and the delegant, as well as organizational factors. Major policy areas like finance, new product programs, marketing strategies, etc. should be centralized, whereas routine and monotonous tasks which do not need much guidance from superiors, can be decentralized. Since the costs of decentralization are high, the potential benefits must be high enough to justify the costs involved. 8.7 SOME USEFUL BOOKS 1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York 2. Stephen P.Robbins, fundamental of management, Pearson 2003 3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi 4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi 5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi. 8.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. 2. 3. 4. Write the importance of delegation and centralization What is meant by span of control? Decentralization is important. Discuss What is the role of line and staff authority? 55

8 Leadership Styles 9. AIMS AND OBJECTIVES The main objective of the lesson is to understand the basics of directing."Activating means moving into action . It is through directing that managers get the work done through people. R. This lesson gives a clear picture about that.12 Some Useful Books 9.5 Techniques Of Directing 9.6 Theories Of Motivation 9. advising and helping subordinates in the proper methods of work. motivation and a good leaders.2. According to Dale. motivation.2 Introduction 9.10 Let Us Sum Up 9. It consists of:  Issuing orders and instructions by a superior to his subordinates. In the words of G.11 Key Words 9. leadership and its styles. good working environment etc.supplying simulative power to the group". Terry . techniques of directing. MOTIVATION AND LEADERSHIP Structure 9.9 Theories Of Leadership 9.3 Directing 9. the plan is put into operation through the organization by the process of direction.3.1 Aims And Objectives 9.UNIT: 9 DIRECTING.1. 9. INTRODUCTION The most important work of an organization is all about directing."Directing means moving to action and supplying simulative power to a group of persons". "Direction is telling people what to do and seeing that they do it to the best of their ability. theories of motivation. R. 9.  Guiding. Another term used to describe this function is "Activating".  Supervising subordinates to ensure compliance with plans". DIRECTING Meaning: According to G.  Motivating them to achieve goals by providing incentives.13 Answer To Check Your Progress Exercise 9. 56 .7 Leadership 9. Thus.4 Importance Of Directing 9. Terry .

Once the organizational plans have been laid down. the structure being designed and competent people brought in to fill various positions in organization. leadership and communication. IMPORTANCE OF DIRECTING The importance of direction in an organisation can be viewed by the fact that every action is initiated through direction.4. 4) The four important aspects of directing are supervision. 3) The top management gives broad direction to the middle level managers who in turn give specific direction to the lower level management. A subordinate has to receive instructions for doing his job from his superior. Characteristics of directing Directing has the following characteristics features: 1) It is the function of the superior manager and runs from top to down in the organization structure. The importance of the direction function is given below: 1) Direction integrates employees' efforts: The individual efforts needs to be integrated so that the organisation achieves its objectives. Each individual in the organisation is related with others and his functioning affects others and. Direction phase of management is the heart of management-in action. direction starts. No organisational objective can be achieved without the function of direction. is affected by others. motivation. 2) Direction implies issuing orders and instruction. Besides issuing orders and instruction a superior also guides and counsels his subordinates to do his job properly. 57 . All these functions are interconnected and mutually dependent.To carry out physically the activities resulting from the planning and organizing steps. it is necessary for the manager to take measures that will start and continue action as long as they are needed in order to accomplish the task by the members of the group. The process of directing or activating involves: 1) Providing effective leadership 2) Integrating people and tasks and convincing them to assist in the achievement of the overall objectives 3) Effective communication 4) Providing climate for 'subordinate' development Directing represents one of the essential functions of management because it deals with human relations. This makes the functioning of direction all the more important. It is the human element which handles the other resources of the organisation. in turn. 9.

the workability and the extent and content of a problem before the superior makes a decision and issues a directive. 2. 3. if the subordinate is highly educated. Consultative direction: In this method executive consults with his subordinates concerning the feasibility. (b) Better communication. The free rein technique of direction will probably show the best and quickest results. This method has the following disadvantages: (a) It is time consuming. experience and knowledge of subordinate also can be used to arrive at right directives. perspicacity and ingenuity to the solution of the problem. (b) Subordinates may consider it their right and prerogative to be consulted before a directive is given to them by their superiors. (d) It induces better motivation and morale. brilliant young man a sole performer. drive. 9. 9. clear and precise orders to his subordinates. (c) Least resistance from subordinates. with detailed instructions as how and what is to be done allowing no room for the initiative of the subordinate. independent thought. (c) Sometimes unnecessary arguments arise leading to wastage of time. (e) It leads to better co-ordination and effective results. The following advantages are claimed in this type of method: (a) Participation occurs on every level of organisation.5. 4) Direction facilitates changes: To manage change management must motivate individuals to accept these changes which can be accomplished through motivation.6. TECHNIQUES OF DIRECTION: A manager has at his disposal three broad techniques of direction. Free rein direction: The free rein technique encourages and enables the subordinate to contribute his own initiative. who has a sincere desire to become a top level manager. MOTIVATION Concept of motivation 58 . 3) Direction gets output from individuals: Every individual in the organisation has some potentials and capabilities which can be properly utilized through the function of direction. 1. Automatic direction: In this method manager gives direct.2) Direction initiates action: It is through direction that the management makes individuals function in a particular way to get organisational objectives.

The word motivation is derived from motive which is an active form of a desire or need. Scott defines “Motivation means a process of stimulating people in action to accomplish desired goals”. All motives are directed towards goals and the needs and desires affect or change your behavior. Getting work done is a difficult task. Efficiency and output are increased through cooperation • High motivation helps to reduce resistance to change • By providing proper motivation. As a result of this. “motivation is a general term applying to the entire class of drives. labor absenteeism and turnover are low • Motivation helps to solve the labor problems and maintains a good labour relations • Motivation is the basis of cooperation to get the best results out of the efforts of the men on the job.Management is the art of getting work done by the subordinates in order to attain common goals of the organization. For this purpose. which must satisfy. desires. The importance are discussed below • • Motivation creates a willingness on a part of workers to do the work in a better way Proper motivation improves the efficiency of operation • Proper utilization of human resources possible since it inspires employees to make best possible use of different factors of production • Higher motivation leads job satisfaction. It is the integral part of the management process and every manager must motivate his subordinates to create in them the will to work. Motivation is necessary for better performance. all the members will try to be as efficient as possible and to improve upon their skill and knowledge 59 . the management should inspire and motivate the people for the accomplishment of organizational objectives. needs wishes and similar forces that include an individual or a group of people to work. The force of motivation is a dynamic force setting a person into motion or action. Importance of motivation Motivation is one of the important functions of the management without which organizational objectives are difficult to achieve. Meaning According to Knootz and O’Donnell.

Only unsatisfied wants induce the man to work hard • • Various levels needs are inter dependent and overlapping Higher level needs can be satisfied in many more ways than the lower level needs. This theory was developed by an eminent American Psychologist Dr. a higher order needs essentially satisfied • Satisfied wants do not motivate the workers. Dr. • The urge to fulfill needs is a prime factor in motivation of people at work. 60 . Maslow. No single motive determine behavior. • Human needs form a hierarchy.• Financial and non financial incentives not only retain the existing employees but also attract the competent employees from outside enterprise. Usually. Hierarchy of needs – Maslow’s theory Maslow’s hierarchy of need theory is one of the most popular theories of motivation in the management. They want to move up the hierarchy of needs. a number of motives operate at same time. Lower level needs must at least partly be satisfied before higher level needs emerge. People seek growth. In other words. people seek the satisfaction or higher order needs. Abraham H. another liking emerges in that place. Some of the salient features of this theory are as follows • Human liking are innumerable and never ending if one liking is satisfied. Maslow was the pioneer in the proper classification of human needs. • Adult motives are complex. rather. • A proper motivation scheme promotes closer relationship between enterprise and workers.

recognition. belongingness. Esteem needs There are two types of esteem needs. predictable environment and (4) To desire to know the limits of acceptable behavior. Social needs After the needs of the body and security satisfied. These needs include needs for food. companionship etc. It also involves a sense of protection against danger and threats. These include (1) protection from physiological dangers. self respect. Physiological needs Physiological needs are the biological needs to preserve human life. competence. friendship. Self esteem and esteem of others. social needs tend to be stronger for some people than for other’s and stronger in situation. achievement. the safety or security needs become Predominant. conversation. exchange of feelings and grievances. These safety needs are really provisions against deprivation in the future. then a sense of belonging and acceptance becomes predominant in motivating behavior. Safety needs Once physiological needs are satisfied.Maslow’s hierarchy of need theory 1. These needs must be met at least partly before higher level needs emerge. 2. (2) Economic security (health insurance) (3) Desire for an orderly. These needs are for love. The second group of esteem needs is those that related to 61 . knowledge and for independence and freedom. These needs are most powerful than others. 4. Self esteem needs include those for self – confidence. 3. clothing and shelter.

a doctor thinks that he is capable of saving the life of the patient. Incentive motivation is the "pull" mechanism. for recognition. which has not used the negative motivation at some time or the other. A positive motivation involves the possibility of increased motive satisfaction. Self – actualization refers to the desire to become everything that one is capable of becoming.one’s reputation needs for status. Self – actualization needs These needs are also called as self – realization needs. due recognition and praise for work-well done definitely lead to good team spirit. However. The receipt of awards. there is no management. It also creates a hostile state of mind and an unfavorable attitude to the job. It is a "push" mechanism. 62 . he may either hold out a promise of a reward (positive motivation) or he may install fear (negative motivation). Negative motivation involves the possibility of decreased motive satisfaction. Both these types are widely used by managements. Positive motivation include:1) 2) 3) 4) 5) Praise and credit for work done Wages and Salaries Appreciation A sincere interest in subordinates as individuals Delegation of authority and responsibility Negative or Fear Motivation This type of motivation is based on force and fear."Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward". According to Flippo . leading to the development of maladaptive behavior. Positive or Incentive Motivation This type of motivation is generally based on reward. Fear causes persons to act in a certain way because they fear the consequences. for appreciation and deserved respect of one’s fellows. 5. The imposition of punishment frequently results in frustration among those punished. For example. co-operation and a feeling of happiness. Types of motivation If a manager wants to get work done by his employees.

There are many internal and environmental variables that affect the motivation to work. The most important theories are explained below.  He is inherently self-centered. controlling their actions. dislikes responsibility and prefers to be led. punished and properly directed. THEORIES OF MOTIVATION Motivation to work is very complex.7. Behavioral scientists started to search new facts and techniques for motivation. not very bright. Thus.in the interest of economic ends. people would be passive – even resistant to organizational needs.  The average human being has an inherent dislike of work and will avoid it if he can. equipment. Theory X is negative. rewarded. and people . indifferent to organizational needs.  He is by nature resistant to change. Theory X: This is the traditional theory of human behaviour. material. participatory and democratic. Douglas McGregor has classified the basic assumption regarding human nature into two parts and has designated them as 'theory X’ and 'theory Y'. these labels describe contrasting set of assumptions about human nature. McGregor's Theory X and Theory Y Different styles of management have a different bearing on the motivation of workers in the organization.  With reference to people it is a process of directing their efforts. modifying their behaviour in order to be in conformity with the needs of the organization.  Without this active intervention by management.  He is gullible. Hence they must be persuaded. traditional and autocratic style while Theory Y is positive. which makes the following assumptions about human nature:  Management is responsible for organizing the elements of productive enterprises money.9. These theories are termed as theories of motivation. 63 .  He lacks ambition. motivating them. The style adopted by a manager in managing his subordinates is basically dependent upon his assumption about human behaviour.

S psychologist. not narrowly distributed in the population. Self-actualization needs. ingenuity and creativity in the solution of organizational problems in widely. Esteem needs and 5. People gratify their physical needs first. 3. but learn not only to accept responsibility but also to seek it. The features of his theory are as follows:1. 2. Physical needs are at the base whereas selfactualization needs are at the apex. have unlimited potential. 64 . As a matter of fact. 4. Relative satisfaction of lower level need is necessary to activate the next higher level need. The theory postulated that people are motivated by multiple needs. Physical needs. 5. under proper conditions does not shirk responsibility. provided the conditions are favourable. 3. Human needs can be definitely categorized into five types: 1. man is a wanting animal. Man can exercise self-control and self-direction in the service of objectives to which he is committed. according to McGregor are as follows:1) Work is as natural as play or rest. All motivated behaviour of man is directed towards the satisfaction of his needs. 5) He has capacity to exercise a relatively high degree of imagination. they feel the urge for the next higher level need. People select goals for themselves if they see the possibilities of some kind of reward that may be material or even psychological. 2. 4. Maslow offers a general theory of motivation called the 'need hierarchy theory'. He has a variety of wants or needs. which could be arranged in a hierarchy. when the need is satisfied. 4) The average human being.Theory Y: The assumption of theory Y. Maslow's Need-Hierarchy Theory of Motivation According to Abraham Maslow. 2) External control and the thrust of punishment are not the only means for bringing about efforts towards organizational objectives. the average human being does not inherently dislike work. 6) Under conditions of modern industrial life the intellectual potentialities of people are only partially utilized. a U. These needs can be arranged into a hierarchy. 3) Commitment to objectives is a result of the rewards associated with their achievement. men. Affiliation or social needs. Safety or security needs. People have a wide range of needs which motivate them to strive for fulfillment.

Given proper conditions. inter-personal relations. working conditions etc. advancement and the work itself. They must be adequate and if they are absent or inadequate. 2) Theory Y assumes that work is as natural as play or rest 3) Theory X emphasizes that people do not have ambitions and they shrink responsibility 4) Theory Y assumes just the reverse. Thus. They are associated with negative feelings. 8) While in Theory Y people are self directed and creative and prefer Self control 9) Theory X emphasize upon centralization of authority in decision-making process 10) Theory Y emphasizes decentralization and greater participation in decision making process 11) A satisfied need does not motivate human behaviour. recognition. 1) Hygiene Factors: Hygiene factors represent the need to avoid pain in the environment. people lack self motivation and require be externally controlling and closely supervising in order to get maximum output.company policy. The elements that influence the job context are the hygiene or maintenance factors e. They are not an intrinsic part of a job.:.THEORY X THEORY Y 1) Theory X assumes human beings inherently dislike work and are distasteful towards work. but they are related to the conditions under which a job is performed.The motivators and maintenance factors. When present. It only triggers or activates the urge for the next higher level of needs. increase dissatisfaction with the job. they will create dissatisfaction. when absent. help in preventing dissatisfaction but do not increase satisfaction or motivation.:Achievement. hygiene factors. They must be viewed as preventive measures that remove sources of dissatisfaction from environment. responsibility. 65 . salary.g. According to this theory of motivation the items that determine job content are considered motivational factors e. people have ambitions and accept responsibility 5) Theory X assumes that people in general have little capacity for creativity 6) According to Theory Y the creativity is widely distributed in the population 7) According to Theory X. Hertzberg's Theory of Motivation Hertzberg developed a theory of motivation on the premise that human nature has two separate elements .g. Hertzberg believed that hygiene factors created a zero level of motivation and if maintained at proper level prevents negative type of motivation from occurring.

when motivators are absent. Once the dissatisfies have been somewhat neutralized. It is a contingency model. if they are not present they do not prove highly satisfying. Motivators are necessary to keep job satisfaction and job performance high. A valence of zero occurs when the individual is indifferent towards the outcome. the individual’s performance of it. Motivators are intrinsic to the job. 66 . The supervisor should attempt to eliminate the hygiene factors that are found to be more basic than factors that lead to satisfaction. Victor Vroom's Expectancy Theory Expectancy Theory was developed by Victor H Vroom. b) Instrumentality: Instrumentality refers to the relationship between performance and reward.:-superior performance) will lead to a desired second level outcome (e. a. It includes three variables which Vroom refers to as – a) Valance: Valence means the strength of an individual's preference for a particular outcome. The key to "expectancy" theory is the "understanding of an individual's goals" . Motivational factors or satisfiers are directly related to job content itself. To apply the twofactor theory to the workplace. the supervisor may be able to motivate workers through the introduction of motivational factors. Workers will be motivated by the belief that their performance will ultimately lead to payoffs for them. Vroom emphasizes the importance of individual perceptions and assessments of organizational behaviour. The valance is negative when the individual prefers not attaining the outcome to attaining it. the instrumentality will be low.g.:. motivators are present. Thus. its responsibilities and the growth and recognition obtained from it. b. if they perceive that performance does not make any difference to their rewards.g. If people perceive that their performance is adequately rewarded the perceived instrumentality will be positive.2) Motivators: Motivators are associated with positive feelings of employees about the job. prevent both satisfaction and motivation. they lead to satisfaction and motivation. c) Expectancy: People have expectancies about the likelihood that an action or effort on their part will lead to the intended performance. Because we understand what needs an employee seeks to satisfy does not ensure that the employee himself perceives high job performance as necessarily leading to the satisfaction of these needs.promotion). The expectancy theory argues that the strength of a tendency to act in a certain way depends in the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual. On the other hand. On the other hand. It refers to a degree to which a first level outcome (e. Hertzberg suggests a two-step process. Expectancy is the probability that a particular action will lead to a particular first level outcome. which recognizes that there is no universal method of motivating people. They make people satisfied with their job.and the linkage between "effort" and "performance" between "performance" and "rewards" and between "rewards" and "individual-goal satisfaction". In sum. It is based on the notion that human behaviour depends on people's expectations concerning their ability to perform tasks and to receive desired rewards. When.

They can set moderately challenging goals. The need for affiliation i. In business.8. Managers must try to raise the achievement need level of subordinates by creating the proper work environment. 3. iii.. strives to succeed. iv. According to McClelland. achievement motive is a "desire to perform in terms of a standard of excellence or to be successful in competitive situations". McClelland found that.McClelland's Need for Achievement Theory David C McClelland. and the manager can learn to recognize these needs in workers and use them to motivate behavior. Put even more simply. warm relationship with others. Evaluation: Achievement motivated people is the backbone of any organization. The TAT process involves asking respondents to look at pictures and write stories about what they see in the pictures. people are motivated by these needs. the leader is the inspiration and director of the action. McClelland used the Thematic Apperception Test (TAT) to study human needs. They can receive immediate feedback information on how they are progressive towards a goal. They (employees) seek situations where: i.e. we tend to use the terms 67 . increasing responsibility and autonomy and rewarding excellence in performance.e. controls other people. As such considerable time and attention must be devoted to constructing ways of developing the achievement motive at the managerial level. power and affiliation through experiences over the time. ii. 2. From his research.. To further confuse the issue. every motive is acquired except striving for pleasure and avoiding pain. According to him. LEADERSHIP: A simple definition of leadership is that leadership is the art of motivating a group of people to act towards achieving a common goal. 9. The stories are then analyzed to find certain themes that represent various human needs. has proposed that there are three major relevant motives most needs in work-place situations. leadership is welded to performance. They find accomplishing a task intrinsically satisfying. The need for power i. The need for achievement i. They can attain personal responsibility for finding solutions to problems. Effective leaders are those who increase their companies' bottom lines. On the job.e. a Harvard Psychologist. He or she is the person in the group that possesses the combination of personality and skills that makes others want to follow his or her direction. "High achievers" differentiate themselves from others by their desire to do things better. Organizational climate must be conducive to high achievement.. the motives are:1. He proposed that people acquire these needs for achievement.

competently and enthusiastically for achievement of group objectives. Successful formal managers having charismatic personality are also becoming informal leaders in situations. intelligence. direction and guidance—informal leadership is emerging out in him. intelligence and judgment 68 . A leader breathes life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into a burning passion for accomplishment”—this establishes that the will to do is triggered by leadership. the raising of a man’s performance to a higher standard. “Leadership is the art of influencing and inspiring subordinates to perform their duties willingly. opinion leaders are examples. the building of a man’s personality beyond its normal limitations”."leadership" and "management" interchangeably. The ambassador to a country is appointed and he acquires the authority of leadership in giving directions to the people concerned. drive Present ability. They are. Formal and informal leadership When a person is appointed as an authority figure or elected . and other traits so that people turn to them for advice. This definition emphasizes that influencing behavior is through communication but does not speak about enthusiasm. “Leadership is the lifting of man’s vision to higher sights. These qualities assist him in directing roles. However there are some common traits and qualities for a leader that enables him to exercise his influence on others and wield command over others. Personality. civic leaders. towards the attainment of a specified goal or goals”. or to individuals who are actually managers as the "leaders" of various management teams. appearance Enthusiasm A sense of cooperativeness.height and weight Initiative.” Tennenbaum et al defines leadership as “interpersonal influence exercised in a situation and directed through communication process. But when a person uses interpersonal influence in a group without designated authority or power – using only their charm. skills. Religious leaders. Another behaviour scientist defines it “Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives” However Peter Drucker defines leadership as follows. Thus a person is appointed as production manager and authority is given to exercise formal leadership over the subordinates – an example of formal leadership.then it is formal leadership. Terry says therefore “Leadership is essentially a continuous process of influencing behaviour. referring to a company's management structure as its leadership. • • • • • • Energy.

the subordinates develop a kind of fear. Also the subordinates entirely depend on their leader and normally they suffer in the absence of their leaders. He also believes that his knowledge is superior. this early study was very influential and established three major leadership styles. While further research has identified more specific types of leadership. and will avoid responsibility. The drive and initiative in them is killed and they do not display their innovative behaviour. The subordinates are instructed to carry out their orders without any question. Authoritarian 2.9. In the study. as all leaders cannot possess all these qualities. low morale. They structure the situations in their own way and expect the workers to follow their orders. power to punish or reward is his privilege they even impose penalty on subordinates or use abusive language in front of others and criticize. Free –rein Leadership Explanation for different types of leadership Authoritarian leadership: These leaders keep the decision-making authority and control in their hands and take full responsibility for all actions. They will not allow any deviation from their orders. groups of school children were assigned to one of three groups with an 1. A person having special personal characteristics along with some of these traits only can become good leader.• • • • • • • • Sociability Tact and diplomacy Self confidence Moral courage Integrity Will power Emotional stability Excellent human relations. But the biggest nuisance is from those autocratic leaders who hide their incompetence for fear of being exposed. LEADERSHIP STYLES In 1939. When highly dictatorial. But autocratic leaders who positively motivate are a class you enjoy to work with. frustration. Some leaders are paternalistic depending on the approach of the leader. The motivational approach of the leader can be threat and punishment or appreciation and rewards. sense of insecurity. 69 . a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. They will never make anybody a scapegoat for any of their faults. 9. Democratic 3. The autocratic leader believes that his leadership is unquestionable as it is conferred upon him because of the position he enjoys. Some autocratic leaders are tough and highly dictatorial and are a source of fear or intimidation.

assign tasks to different members and establish solid deadlines for projects to be finished. such as during military conflicts. Though the leader makes the final decision. This also allows group members to become highly skilled at performing certain duties. Single leadership creates frustration and lacks motivation. competent. skillful. The management in this type recognizes the fact that there are employees who are capable to give innovative ideas. Here the subordinates are consulted and their feedback is taken into decision-making process. Characteristics of Autocratic Leadership Some of the primary characteristics of autocratic leadership include: Little or no input from group members Leaders make the decisions Group leaders dictate all the work methods and processes Group members are rarely trusted with decisions or important tasks Benefits of Autocratic Leadership Autocratic leadership can be beneficial in some instances. This style is very useful when you have educated lobour . In situations that are particularly stressful. In such situations. There are also many members who prefer working under strict discipline and under central authority. However a majority of members do not like strictness and discipline especially because motivation is negative. The style provides motivation and rewards to a manager who gives results. It allows members of the group to focus on performing specific tasks without worrying about making complex decisions. Some projects require strong leadership in order to get things accomplished quickly and efficiently.This style permits quick decisions. a strong leader who utilizes an autocratic style can take charge of the group. he acts more as a moderator and of course he takes responsibility for the results. which can be beneficial to the group. dedicated and ready to work independently with nil or least directives. as there is only a single person to take decisions. By this you are developing a set-up 70 . higher morale and greater job satisfaction. Morale is lost and unbalanced rewards create conflicts jeopardizing the organizational efficiency since communication is also one-way. chances are that your grade or job performance suffered as a result. Democratic leadership styles This is also known as democratic leadership. experienced. intelligent. suggestive etc Obviously the group members get an opportunity to display their talents and are encouraged to demonstrate initiative and creativity. such as when decisions need to be made quickly without consulting with a large group of people. This incidentally leads to a good management-labour understanding or relations. Have you ever worked with a group of students or co-workers on a project that got derailed by poor organization. group members may actually prefer an autocratic style. The members thus get a chance to participate in decision-making. a lack of leadership and an inability to set deadlines? If so.

Moreover a participative manager decentralizes the decision making process which increases positive motivation. The productivity is high as participants are the decision makers. The benefits of this style of leadership are a. “This style is also consultative and ideographic. even though the leader retains the final say over decisions. c. They share the responsibility with the superior thereby ensuring not only his safety but also for themselves. is a type of leadership style in which members of the group take a more participative role in the decision-making process. Creativity is encouraged and rewarded. When participation is there. making them more likely to care about the end results. Benefits of Democratic Leadership Because group members are encouraged to share their thoughts. Research on leadership styles has also show that democratic leadership leads to higher productivity among group members. Good climate is generated for growth and individual personality development too. Group members are encouraged to share ideas and opinions. You will not drill a hole in the boat in which you are traveling with your friend. It ends up in sharing of responsibilities and contribution to group goal achievement. The superior even rewards the subordinates for the best suggestions during consultation. Researchers have found that this learning style is usually one of the most effective and leaders to higher productivity. also known as participative leadership. democratic leadership can leader to better ideas and more creative solutions to problems. It is a motivating technique as the employees feel highly elevated as their ideas and suggestions are given weight age in decision making.conducive to growth and development. better contributions from group members and increased group morale. Characteristics of Democratic Leadership 71 . ii. Group members also feel more involved and committed to projects. iii. Democratic leadership. it means mental and emotional involvement of a person in a group situation is assured. The leader does not take any unilateral decision and believes in consultation and participation of members. Members of the group feel more engaged in the process. High morale and favorable attitude of employees result in organizational stability d. b. Characteristics of Democratic Leadership Some of the primary characteristics of democratic leadership include: i.

even though the leader retains the final say over decisions. To start with the manager decides the policy.Some of the primary characteristics of democratic leadership include: a) Group members are encouraged to share ideas and opinions. democratic leadership can leader to better ideas and more creative solutions to problems. Group members also feel more involved and committed to projects. c) Creativity is encouraged and rewarded. Then the entire process is left to the subordinates Here the group members perform everything and the manager keeps liaison with outside only to get materials for the group to perform. Early leadership theories focused on what qualities distinguished between leaders and followers. Free rein Also known as laissez-faire. 9. Benefits of Democratic Leadership Because group members are encouraged to share their thoughts. The term "Great Man" was used because. especially in terms of military leadership. leadership was thought of primarily as a male quality. It may be creative with a free and informal work environment but can lead to inefficiency if members are not capable of decision making or wrong decision makers. THEORIES OF LEADERSHIP Interest in leadership increased during the early part of the twentieth century. With so much of freedom there is a possibility that a member may put his individual interest above the group interest. All members are not leaders and hence can create frustration and non cooperation. not made. most can be classified as one of eight major types: 1. This style leaves everything to subordinates. making them more likely to care about the end results. These theories often portray great leaders as heroic. who make their own decisions and it helps subordinates to develop independent personality. b) Members of the group feel more engaged in the process. Research on leadership styles has also show that democratic leadership leads to higher productivity among group members. mythic and destined to rise to leadership when needed. literally means giving complete freedom to subordinates. But the contribution of the manager is nil and it can create chaos. "Great Man" Theories: Great Man theories assume that the capacity for leadership is inherent – that great leaders are born.10. at the time. While many different leadership theories have emerged. while subsequent theories looked at other variables such as situational factors and skill levels. programme and limitations for actions. 72 .

Different styles of leadership may be more appropriate for certain types of decision-making. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. 4. These theories base leadership on a system of rewards and punishments. this leadership theory focuses on the actions of leaders not on mental qualities or internal states. qualities of the followers and aspects of the situation. Participative Theories: Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. According to this theory. they are reprimanded or punished. when they fail. 3. not born. 6. 5. Trait Theories: Similar in some ways to "Great Man" theories. Management Theories: Management theories (also known as "Transactional theories") focus on the role of supervision. According to this theory. In participative theories. Success depends upon a number of variables. no leadership style is best in all situations. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. 8. then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership. organization and group performance. including the leadership style. however. people can learn to become leaders through teaching and observation. 7. Managerial theories are often used in business. Rooted in behaviorism. Behavioral Theories: Behavioral theories of leadership are based upon the belief that great leaders are made. Trait theories often identify particular personality or behavioral characteristics shared by leaders. they are rewarded. trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Relationship Theories: Relationship theories (also known as "Transformational theories") focus upon the connections formed between leaders and followers. 73 .2. Situational Theories: Situational theories propose that leaders choose the best course of action based upon situational variables. Contingency Theories: Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. If particular traits are key features of leadership. when employees are successful. the leader retains the right to allow the input of others.

But it’s not enough to have a vision. A leader inspires dedication by example. Good leaders are able to suspend judgment while listening to others’ ideas. passionately own the vision and relentlessly drive it to completion. A person of integrity is the same on the outside and on the inside. Action is the mark of a leader. said. even when it might be expeditious to do so. He or she must communicate clearly and passionately. Leaders with humility recognize that they are no better or worse than other members of the team. By setting an excellent example. Dedication means spending whatever time or energy is necessary to accomplish the task at hand. vivid picture of where to go. This sort of reverse magnanimity helps other people feel good about themselves and draws the team closer together. as well as to direct his or her actions and those of the team toward the goal. as well as accept new ways of doing things that someone else thought of. To spread the fame and take the blame is a hallmark of effective leadership. as well as a firm grasp on what success looks like and how to achieve it. as passion is contagious. only opportunities to achieve something great. predictable reactions. a good leader takes personal responsibility for failures. leaders can show followers that there are no nine-to-five jobs on the team. Integrity is the integration of outward actions and inner values. Leaders with this style often have high ethical and moral standards. and an absence of tantrums and harsh outbursts are all signs of integrity. "Good business leaders create a vision. Leaders with humility also understand that their status does not make them a god. A leader does not suffer “analysis paralysis” but is always doing something in pursuit of the vision. Honest dealings. well-controlled emotions. A leader who is centered in integrity will be more approachable by followers. A magnanimous leader ensures that credit for successes is spread as widely as possible throughout the company. Such an individual can be trusted because he or she never veers from inner values. Openness 74 . Qualities of leader A leader with vision has a clear. inspiring others to do the same. Magnanimity means giving credit where it is due. A humble leader is not self-effacing but rather tries to elevate everyone. leaders must also share it and act upon it. A leader must have the trust of followers and therefore must display integrity." A leader must be able to communicate his or her vision in terms that cause followers to buy into it. articulate the vision. A good leader must have the discipline to work toward his or her vision singlemindedly. Jack Welch. Openness means being able to listen to new ideas.. Conversely. but also want each person to fulfill his or her potential. even if they do not conform to the usual way of thinking. Mahatma Gandhi is a role model for Indian leaders. and he pursued a “follower-centric” leadership role.These leaders are focused on the performance of group members. former chairman and CEO of General Electric Co. doing whatever it takes to complete the next step toward the vision.

And simply put. LET US SUM UP The importance of direction.11.Robbins. is affected by others. Anyone can cultivate the proper leadership traits. A leader must be assertive to get the desired results. they reward a leader with loyalty and dedication. and it also keeps the team well supplied with new ideas that can further its vision. Peter F. good looks. Creativity is the ability to think differently. as well as to defuse hostility. Effective leaders know how to use humor to energize followers. New York 2. Along with assertiveness comes the responsibility to clearly understand what followers expect from their leader. management tasks and responsibilities Truman Talley books . Pearson 2003 75 . Each individual in the organisation is related with others and his functioning affects others and.builds mutual respect and trust between leaders and followers. He or she must avoid leaping to conclusions based on incomplete evidence. 9.. to get outside of the box that constrains solutions. fundamental of management. KEY WORDS a) b) c) d) e) f) Controlling Leadership Motivation Autocratic Free rein Humors 9. Humor is a form of power that provides some control over the work environment. 9.. “What if …?” Possibly the worst thing a leader can say is. it is the ability to clearly state what one expects so that there will be no misunderstandings. humor fosters good camaraderie. height and so on are not necessary to become a leader. Stephen P. Intrinsic traits such as intelligence. SOME USEFUL BOOKS 1. motivation and leader is very important in an organisation It is the human element which handles the other resources of the organisation. The most important question that a leader can ask is. “I know this is a dumb question . in turn. When people feel they that are being treated fairly. A sense of humor is vital to relieve tension and boredom. Assertiveness is not the same as aggressiveness.13. Rather. A leader must check all the facts and hear everyone out before passing judgment.Drucker. Creativity gives leaders the ability to see things that others have not seen and thus lead followers in new directions. ” Fairness means dealing with others consistently and justly.12.

Koontz and Weirich. Fundamental of management. e) Explain the types of leadership.14. d) What is leadership and its importance. f) What are the qualities of a leader? 76 .3. Tata McGraw Hill. ANSWER TO CHECK YOUR PROGRESS EXERCISE a) Explain the process of directing b) What is the characteristics of directing c) What is motivation and explain the theories of motivation. New Delhi 9.

applying corrective measures so that the performance takes place according to plans.3 Characteristics of control 10.UNIT: 10 CONTROLLING NATURE AND TECHNIQUES Structure 10.5 Effectiveness of control system 10. Controlling: Controlling is an important function of management."Fundamentally. characteristics of control and also the steps in controlling methods and the essentials of control system 10.6 Let us sums up 10."Management control is the process by which managers assure that resources are obtained and used effectively and efficiently."Controlling is determining what is being accomplished i.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the views of control. Under primitive 77 .1 Introduction 10. VIEWS OF CONTROL Control is the process through which managers assure that actual activities conform to planned activities." According to George R Terry .4 Steps in controlling process 10. with a view to ensuring adequate progress and satisfactory performance.7 Key words 10. controlling meaning.1 INTRODUCTION This lesson gives us a detail idea about the views of control.9 Answer To Check Your Progress Exercise 10.2.0 Aims and objectives 10.2 View of control 10.8 Some Useful Books 10." According to Robert N Anthony . According to Breach ."Managerial control implies measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans. evaluating the performance and if necessary. The essence of the concept is in determining whether the activity is achieving the desired results”." In the words of Koontz and O'Donnell . It is the process that measures current performance and guides it towards some predetermined objectives." In the words of Haynes and Massie . characteristics and the steps in control process 10."Control is checking current performance against predetermined standards contained in the plans..e. control is any process that guides activity towards some predetermined goal.

Both freedom and accountability are embedded in the concept of control.Controlling Thus various elements of planning provide what is intended and expected and the means by which the goals are achieved . Thus planning precedes control and control succeeds planning. Planning process sets the goals. Control is applied in order to remove any deviation in behaviour or norms.management. The result of planning. they are inter-dependent. Managers at all levels have to perform this function to contribute to the achievement of organisational objectives. losses and deviations from standards. The opposite of control is not freedom but chaos or anarchy. 10. A very well conceived plan itself provides means for effective control. Planning----------------------Actions------------------------. In fact. Without control. It is usually preventive as presence of control system tends to minimize wastages.3 CHARACTERISTICS OF CONTROL Managerial control has certain characteristic feature. These elements also provide a means for reporting back the progress made against the goals and a general framework for new decisions and actions in an integrated pattern. as past cannot be controlled. Both are linked by actions only. but to find out the deviations between the actual performance and the standard performance and to take steps to prevent such variances in future. Control is fully consistent with freedom. The concept of control is often confused with lack of freedom. control was undertaken only when something went wrong and the objectives of control was to reprimand the person responsible for these events and take action against him. Planning The planning lays the foundation for control as it sets the behavioural norms and activities in the organization. They are:  Control is the function of every manager. The deviations in the past are revealed by the control process. policy and goal is control. 78 . Control shows that there are some goals and policies and standards. The modern concept of control envisages a system that not only provides a historical record of what has happened to the business as a whole but also pinpoints the reasons why it has happened and provides data that enable the manager to take corrective steps. freedom cannot be sustained for long. It should anticipate possible deviations and to think of corrective action for the control of such deviations in the future. control becomes ineffective.  Control is linked with future. Control measures these activities and behaviour in the organization. if he finds he is on the wrong track. Many information provideed by control is used for planning and replanning. Corrective actions can be initiated accordingly.  Control leads to appraisal of past activities. Therefore. Without freedom. there is no intention to punish the person for wrongdoing. You may refer the figure below.

and not for reprimanding persons. To quote Mary Cushing Niles . Control is based on facts and figures. Measuring and comparing actual results against standards.  Control can be exercised only with reference to and or the basis of plans. comparison of actual performance with predetermined standards and bringing to light the variations between the actual performance and the standard performance. This makes control a dynamic and flexible process. It involves constant analysis of validity of standards. the following points have to be borne in mind: 79 . The standard should emphasis the achievement of results more than the conformity to rules and methods.  Control implies taking corrective measures. Establishing standards.  Information or feedback is the guide to control. It is only action which adjusts performance to predetermined standards whenever deviations occur. policies. Establishing Standards The first step in the control process is to establish standards against which results can be measured. then people will start giving more importance to rules and methods than to the final results. If they do not do so. control observes deviations from the course or to an appropriately changed one". The standards the managers desire to obtain in each key area should be defined as far as possible in quantitative terms. and where remedial action is called for. Control is concerned with setting standards."Whereas planning sets the course. measurement of actual performance. While setting the standards.  To some people. 2. 10. procedures etc. Taking corrective action.4. Its purpose is to achieve and maintain acceptable productivity from all resources of an enterprise. STEPS IN CONTROL PROCESS There are three basic steps in a control process: 1.  Control involves continuous review of standards of performance and results in corrective action which may lead to change in the performance of other functions of management. The feedback is helpful to the manager to determine how far the operations are proceeding in conformity with plans and standards. Standards need to be flexible in order to adapt to changing conditions. It is for correcting a situation.  Control is a continuous activity. control aims at results and not at persons. Standards expressed in general terms should be avoided. control is opposite of freedom. 3. Therefore. This is not true. The object in checking the variations or deviations is to rectify them and prevent their recurrence.

they themselves will be able to check their performance. Measuring and comparing actual Results against Standards The second step in the control process is to measure the performance and compare it with the predetermined standards. precise. 4) Standards should be flexible i. If the control system is well organised. If the standards are clear and are understood by the persons concerned..e. complete and reasonable instructions in future. While comparing the actual performance with the standards fixed. and the executives should revise their plans in the light of these changing forces. by reports. They should be realistic and attainable. 2) He should review with his subordinates the instructions given earlier so that he may be able to give clear. 2) Standards should be accurate. After the measurement of the actual performance. quick comparison of these with the standard figure is quite possible. the manager has to find out not only the extent of variations but also the causes of variations. Taking corrective action can be achieved in the following way: 1) The manager should try to influence environmental conditions and external situations in such a way as to facilitate the achievement of goals.1) The standards must be clear and intelligible. Measurement of performance can be done by personal observation. This will reveal variations. 10. 3) There are many external forces which cannot be adjusted by the manager. Taking Corrective Action After comparing the actual performance with the prescribed standards and finding the deviations. the next step that should be taken by the manager is to correct these deviations. acceptable and workable. if the control system is well organised. It should not be either too high or too low. 3) Standards are used as the criteria or benchmarks by which performance is measured in the control process. the actual performance should be compared with the standards fixed quickly. This is necessary.5 ESSENTIALS OF EFFECTIVE CONTROL SYSTEMS 80 . capable of being changed when the circumstances require so. The manager should also determine the correct cause for deviation. Corrective action should be taken without wasting of time so that the normal position can be restored quickly. They have to be accepted as the facts of the situation. charts and statements. while others may be important and need immediate corrective action by the manager. A quick comparison of actual performance with the standard performance is possible. because some of the variations may be unimportant.

A small company cannot afford the elaborate control system used by a large company. they are of no use as they will not be able to suggest the types of measures to be taken to rectify the past deviations. Since most people respond to a challenge. Budgets. In the words of Koontz and 81 . If the control reports are not directed at future. he must find a pattern that will provide control for individual parts. Plans may call for an automatic system to be backed up by a human system that would operate in an emergency. If a superior is to be able to control overall operations. 8) Corrective Action: Merely pointing of deviations is not sufficient in a good control system. 3) Objective and Comprehensive: The control system should be both. This is necessary both for the smooth working and the effectiveness of the system. 5) Economical: Economy is another requirement of every control. successfully meeting to tough standard may well provide a greater sense of accomplishment than meeting an easy standard. It must be responsive to changing conditions. quotas and other techniques may be useful in controlling separate departments. 4) Flexible: The control system should be flexible so that it can be adjusted to suit the needs of any change in the environment. it will be more likely to discourage than to motivate effort. Objective controls specify the expected results in clear and definite terms and leave little room for argument by the employees. A control system is justifiable if the savings anticipated from it exceed the expected costs in its working.1) Suitable: The control system should be appropriate to the nature and needs of the activity. The benefit derived from a control system should be more than the cost involved in implementing it. In other words. However. 2) Timely and Forward Looking: The control system should be such as to enable the subordinates to inform their superiors expeditiously about the threatened deviations and failures. It should be adaptable to new developments including the failure of the control system itself. When standards are set unilaterally by upper level managers. A sound control system will remain workable even when the plans change or fail outright. The feedback system should be as short and quick as possible. A proper system of control should enable the manager concerned to think of and plan for future also. A large firm calls for controls different from those needed for a small firm. The flow of information concerning current performance should correspond with the organizational structure employed. there is a danger that employees will regard those standards as unreasonable or unrealistic. if a target is so tough that it seems impossible to meet. 6) Acceptable to Organisation Members: The system should be acceptable to organisation members. control should be tailored to fit the needs of the organisation. organizing and directing. objective and understandable. 7) Motivate People to High Performance: A control system is most effective when it motivates people to high performance. It must lead to corrective action to be taken to check deviations from standard through appropriate planning.

New Delhi 10. Under primitive management.? 82 . Even when there are a number of control1 systems provided by staff specialists. 12) Focus on Strategic Points: A good system of control not only points out the deviations or exceptions but also pinpoints them where they are important or strategic to his operations. whenever large deviations take place.6 KEY WORDS 1) 2) 3) 4) Controlling Strategic points Comprehensive Organization members 10." A control system will be of little use unless it can generate the solution to the problem responsible for deviation from standards. Pearson 2003 3. They must be guided and directed if necessary. 7. 10) Human Factor: A good system of control should find the persons accountable for results. 10. Explain about the characteristics of controlling What are the steps in controlling Write about the essential of effective control system. Koontz and Weirich. LET US SUM UP Controlling is an important function of management. management tasks and responsibilities Truman Talley books . Fundamental of management. 9) Reflection of Organisation Pattern: Organization is not merely a structure of duties and function.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Tata McGraw Hill. Stephen P.Drucker.Robbins. fundamental of management. Do you think it is so important to have a control system in the organization.O'Donnell. 3. Peter F. the foreman at the first level is still important because he has direct knowledge of performance. In enforcing control the efficiency and the effectiveness of the organisation must be clearly brought out. 11) Direct Control: Any control system should be designed to maintain direct contact between the controller and controlled.7 SOME USEFUL BOOKS 1. who is responsible for them and what should be done about them. "An adequate control system should disclose where failure is occurring. control was undertaken only when something went wrong and the objectives of control was to reprimand the person responsible for these events and take action against him. It is the process that measures current performance and guides it towards some predetermined objectives. 2. 4. New York 2. it is also an important vehicle of control.

"co-ordination is the orderly arrangement of group effort to provide unity of action in pursuit of a common purpose.0 Aims and objectives 1I. techniques and also the importance." Co-ordination consists of three elements viz.UNIT : 11 CO-ORDINATION THE ESSENCE OF MANAGEMENT Structure 11." According to George Terry.6 Key words 11.Ordway Tead According to Lundy.0. INTRODUCTION Co-ordination is the effort to ensure smooth interplay of functions and forces of all the different parts of an organization so that its purpose will be realized with minimum of friction and a maximum of collaborative effectiveness.4 Techniques of co-ordination 11." the orderly syschromsation of efforts to provide the proper amount. Co-ordination is the process whereby an executive develops an orderly pattern of group effort among his subordinates and secures unity of action in the pursuit of common purpose. AIMS AND OBJECTIVES The main objectives of the lesson is to understand the basics of need of co-ordination." ."it makes diverse elements and sub-systems of an organisation to work harmoniously towards the realisation of common objectives.7 Some Useful Books 11. 11.2 Definitions 11. Nature/characteristics of co-ordination 83 .1 Introduction 11.2.. timing and direction of execution. DEFINITIONS Mooney and Reily.1. resulting in harmonious and unified actions to a stated objective.Co-ordination is a conscious and rational process of pulling together the different parts of an organization and unifying them into a team to achieve predetermined goals in an effective manner. balancing.8 Answer To Check Your Progress Exercise 11.5 Let us sum up 11. "co-ordination involves the development of unity of purpose and the harmonious implementation of plans for the achievement of desired results. 11." Co-ordination as. timing and integrating.3 Need for co-ordination 11.

growth and image of an organisation are ensured.3 NEED FOR CO-ORDINATION 1. 4.  Co-ordination does not arise spontaneously or by force.  Co-ordination is required in group efforts. Co-ordination is not distinct function. 5. 2. TECHNIQUES OF CO-ORDINATION The important techniques of co-ordination are as follows. Everyone has to contribute their best towards the attainment of the common goals. Economy and efficiency Co-ordination helps to improve the economy and efficiency of operations. not in individual efforts. It can attract and retain competent and talented employees. 11. b) Hierarchy 84 . 11. Economy occurs due to saving of time. Optimum use of scarce resources results in efficiency. This is called synergy 3. Time and energy saved is used for creative tasks to achieve better results. a) Clearly defined goals The goals of the organisation should be known to all the members. Retention of managerial and other personnel Through co-ordination survival.4. It avoids conflicts and encourages co-operation. Reconciliation of goals Co-ordination is aimed at reconciling or integrating the goals so as to bring unity of action in the organization. It is the result of conscious and concerted action of management  Co-ordination is a continuous and on-going process. Total accomplishment Co-ordination avoids duplication of efforts. but the very essence of management  Co-ordination is the basic responsibility of management and it can be achieved through managerial functions. and labor. Labour turnover and absenteeism are minimized. Good human relations Management can improve job satisfaction and morale of employees by co-ordinating their interests with organisational goals.

This device removes the rigidity of the hierarchical structure. Clear-cut authority relationships helps in reducing conflicts among different positions. c) Harmonized policies. procedures and rules are laid down by the management and these help in achieving co-ordination in repetitive activities of sub-units. it is easy for the chief executives to co-ordinate the various activities in the enterprise. rules etc Standard policies. e) Sound organization structure A good organisational setup with clearly defined authorities and responsibilities is an effective means of integrating the activities of different units and sub-units in the enterprise.atmosphere in the enterprise. g) Climate of mutual trust and collaboration Fostering of a climate of mutual trust and collaboration is also a co-ordinating mechanism. Social and unofficial interactions and relationships are often more effective than formal ones. i) Communication system 85 . Ideal coordination is self co-ordination by imparting friendly . f) Committees By forming committees. procedures. One person should not give order to another but both should agree to take their orders from the situation.Hierarchy or chain of command is the simplest design for achieving co-ordination. Co-ordination becomes very easy when individuals in the organisation are willing to help each other voluntarily. h) Co-ordination through liaison men Liaison men helps in securing particularly external co-ordination. They provide liaison among different branches or units of an organization. interdependent units are placed under one boss and by this coordination can be achieved. d) Co-operation This is secured by encouraging informal contacts among people and by providing interpersonal and interdepartmental contacts. The lines of authority and responsibility should be clearly defined. The vertical authority structure is the supreme mechanism of co-ordination. promotes effective communication and understanding of ideas among the members of the organization.

fundamental of management. Stephen P. Explain the techniques of co-ordination 86 . Peter F. Pearson 2003 3. New Delhi 11.Robbins.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. j) Incentives By providing incentives to the interdependent units also help in securing coordination among those unitsI) Planning Planning is a way of anticipating. SOME USEFUL BOOKS 1. New York 2. Explain the need for co-ordination 3. 2. Koontz and Weirich. management tasks and responsibilities Truman Talley books .6 KEY WORDS Goals Economy and efficiency Human r relations Techniques 11. 11. Fundamental of management. interdependencies and thus forestalling or mitigating the co-coordinating difficulties.5 LET US SUM UP Co-ordination is the effort to ensure smooth interplay of functions and forces of all the different parts of an organization so that its purpose will be realized with minimum of friction and a maximum of collaborative effectiveness. 11.Drucker. Define the Co-ordination and the meaning of it. Tata McGraw Hill.7.A good communication system contributes to effective co-ordination by promoting mutual understanding and co-operation among different groups and individuals in the organization.

7 12. Personnel directors are the new corporate heroes.1 12. more particularly on training. There is a need for multi skill development. with renewed thrust on HR issues. The name of the game today in business is personnel. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management.4 12.0 Aims And Objectives 12. 12. Some of the recent trends that are being observed are as follows: 1) The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus more on people centric organizations. their policies. management cultures and philosophy due to the global alignment of Indian organizations. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. INTRODUCTION To understand the present trends in the HRM is so important. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. 87 .3 12. MEANING Human resource management is a process of bringing people and organizations together so that the goals of each other are met.UNIT: 12 NEW TRENDS IN MANAGEMENT Structure 12.9 Introduction Meaning New Trends In International HRM HR Managers Attention HR Policies Let Us Sum Up Key Words Some Useful Books Answer To Check Your Progress Exercise 12. AIMS AND OBJECTIVES The main objectives of the lesson is to understand the new trends in HRM. Role of HRM is becoming all the more important.2 12.0.1.2. HRM manager attention.8 12. 12.5 12. Indian organizations are also witnessing a change in systems.6 12.

1. Training and development extends beyond information and orientation training to include sensitivity training and field experiences that will enable the manager to understand cultural differences better. performance evaluations should combine the two sources of appraisal information. especially in India. Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse. Managers need to be protected from career development risks.3. 5. law establishes representation. Exult. Six.Germany for one. These practices improve organizational values and helps in creating defect free product or services at minimum cost. In Europe it is more likely for salaried employees and managers to be unionized. 4) Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization. re-entry problems and culture shock. orientation and translation services to help employees adapt to a new and different environment outside their own country. Federal and Triple I.2) Charles Handy also advocated future organizational models like Shamrock. 3) To leapfrog ahead of competition in this world of uncertainty. 88 . organizations are also required to work out a retention strategy for the existing skilled manpower. 3. 5) With the increase of global job mobility. 2. the international pioneer in HR BPO already roped in Bank of America. Organizations typically negotiate the agreement with the unions at a national level. 12. recruiting competent people is also increasingly becoming difficult. international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies. To balance the pros and cons of home country and host country evaluations. Such organizational models also refocus on people centric issues and call for redefining the future role of HR professionals.sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement.sigma practices. organizations have introduced six. NEW TRENDS IN INTERNATIONAL HRM International HRM places greater emphasis on a number of responsibilities and functions such as relocation. 4. In many European countries . Therefore by creating an enabling culture. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.

e. Indulge in continuous quality improvement through TQM and HR contributions like training.g. Xerox in photocopiers. Xerox. workers and other affected groups e. Quality Consciousness. etc.Create conditions in which people are willing to work with zeal. counseling. Lay off workers in a smooth way explaining facts to unions.Commitment to quality in all aspects of personnel administration will ensure success. Motivation.5 HR POLICIES Due to the new trends in HR. Telco in trucks etc.HR policies based on trust. is gaining both respect and attention—the kind that comes from being in the hot seat. As such.Fair treatment of people and prompt redress of grievances would pave the way for healthy work-place relations.4.Prepare workers to accept technological changes by clarifying doubts. in a nutshell the HR manager should treat people as resources. IBM. c) d) e) 12. openness. etc Utilize people with distinctive capabilities to create unsurpassed competence in an area. The HR profession as a result. development. equity and consensus. Motorola is famous for short product development cycles.g. make people feel like winners. Employ innovative reward plans that recognize employee contributions and grant enhancements. reward them equitably. initiative and enthusiasm. 3M in adhesives. Relations.g. It has quickly commercialized ideas from its research labs. and integrate their aspirations with corporate goals through suitable HR policies.HR Managers should do the following things to ensure success• Use workforce skills and abilities in order to exploit environmental opportunities and neutralize threats. HR MANAGERS TODAY ARE FOCUSING ATTENTION ON THE FOLLOWINGa) b) Policies. Change agent. Decentralize operations and rely on self-managed teams to deliver goods in difficult times e. • • • • • 12. there are some trends one must be aware of: Changing role 89 . Kodak.

passions. Environment and lifestyle are creating a new health crisis amongst urban professionals. globally astute and operationally agile workforce. leadership development. a first-tier employer that can meet the needs of high potential / performance employees.level executives. HR needs to embrace outsourcing to reduce costs and get access to higher levels of service. and be seen to be. HR is expected to deliver value in areas like organisational effectiveness. talent management.” positioning as delivering on the promise of continuous learning. 90 . merger integration. Rather than positioning as “we are a big successful company. “Presenteeism” where employees come into work but cannot work at optimal levels is a growing concern. sort resumes or process payroll on time. work-life balance. CEOs are demanding that HR stop giving lip service to strategic performance and find metrics that prove that they are contributing to the growth and performance of the company through effective people management. smart. deadlines are the key causes of stress and burnout. Today’s HR departments will have to become talent departments. Today HR professionals are hardly hired for their ability to process employee information. beliefs. technologically literate. more is being expected from HR practitioners and they need to broaden their skill-sets so that they can sit at the board table and understand as much about the businesses as the other leaders. friends. Outsourcing HR outsourcing is a growing trend. Long working hours. Companies must consider the full humanity of their people. War for talent The most important corporate resource over the next 20 years will be talent. The key to attracting and retaining scarce skills is for companies to be. etc. Marketing practices will need to be applied to recruitment. interests. increasing the risk of infections. worries and futures. strategic compensation.Talent shortage is the highest risk for Indian business. they need to make significant contributions to the bottom line through expense reduction. Recognizing this. Accountability If HR professionals want to be enabler of business strategies. Employer branding with a strong differentiator are imperative. talent management and risk mitigation. Instead. The primary benefit of HR outsourcing is that it will allow the leaders to tackle these more strategic issues. or revenue generation. Traditional workforce planning is being replaced by talent strategies and skills gap analysis. looking at them not just as people with jobs and career. heart and back problems or mental stress. travel. change management. Increasingly. competition. fulfilling roles and innovative rewards and recognition is important. Chief executives have taken on the roles for strategic HR management. How HR managers will contribute and how seriously they will be taken depends on the big leap that the majority of HR managers today will take. but as people with families. Healthy workplace There is a definite link between work environment and the well being of its employees and between employee health and the bottom line. HR executives are themselves becoming C . succession planning.

the competency requirements for successful leadership are increasing exponentially. Thus succession planning will evolve into something broader talent management. senior and top level managers. As organisations. This becomes even more important as we go up the pyramid to middle. ethics. diversity as a business strategy has preceded the employment equity criteria. HR will need to provide cross-cultural support and training to virtual global teams. In India. Talent management Talent management with a focus on soft skills. which has only now begun to be adopted by a few companies on a voluntary basis. yet virtually global. It will take a whole new level of education of tolerance. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent. But what companies require is a domain expert with managerial skills to leverage that expertise in the interest of the company. Leadership comes with empowerment and changing work-cultures across the levels through continuous learning. One of the scarcest capabilities is leadership. coupled with outsourcing. guarantees there will be smaller HR departments in companies. succession planning needs to be reengineered. technically qualified people are easier to find. Selections are increasingly based on soft skills such as attitude. colour. regardless of organisation structure. to focus on competencies rather than positions.6. In this context. Technology will also help people connect within the work environment regardless of time and place as organisations are becoming physically local. Today one’s educational qualification is just not enough to get a job. skill development and change management. Technology with 24X7 communication capabilities. Impact of technology Eventually technology is going to eliminate most HR jobs as they exist nowadays. 12. leadership development and succession planning is the defining trend in HR. race or religion. 91 . Today CRM has given way to ERM Employee Relationship Management. LET US SUM UP Human resource management is a process of bringing people and organizations together so that the goals of each other are met. their customers. We now live in a world where the job and job requirements are constantly changing. It is also about managing the demographic and psychographic characteristics of an evolving workforce. Personnel directors are the new corporate heroes. Employees can self manage activities previously handled by HR departments. gender. employees and their environment become more global and competitive.Diversity For the Indian private sector. Many of us are in jobs that didn’t exist three years back and three years from now many of us will be in jobs that don’t exist now. or people skills. Diversity goes beyond nationalities.

Peter F. KEY WORDS 1.12. Tata McGraw Hill. 92 . Write about HR policies. New Delhi 12.Drucker.8 SOME USEFUL BOOKS 1. Koontz and Weirich. 3. Explain the importance of having a updated role of the HR policies. Write about the new trends in HRM. 4. Pearson 2003 3. 3. Stephen P. fundamental of management. management tasks and responsibilities Truman Talley books . 2. New trends Planning Technology Talent management Diversity 12.7. New York 2.Robbins. 4. Suggest a few ways in which HR policies can be made more effectives. 2. Fundamental of management. 5.9 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.

CHALLENGES ORGANIZATIONAL BEHAVIOR Structure 13.1 INTRODUCTION This lesson gives us a clear picture about the evolution.6 Key words 13.3 Nature Of Organizational Behavior 13. responses and behavior of these people in different cadres are also different.0 Aims and objectives 13.7 Some Useful Books 13. In a nutshell you can conclude that wherever there is organization.5 Let us sum up 13. 13. hospitals. Thus for example. Hence a study in detail about the behaviour of people in organizations. We also know that different category of people in different cadre are working and interacting in these organizations. We can define the term organization as two or more individuals who are interacting with each other within a deliberately structured set up and working in an interdependent way 93 . there is a definitely a need to study and understand the organizational behaviour. Organizations play a major role in our lives.2 CONCEPTS Before attempting to define organizational behavior. The temperaments. accumulating knowledge about the behaviour for further research has become extremely important . 13. schools.UNIT-13 : EVOLUTION. react and behave are different resulting in different performance and productive output of these organizations. transport.8 Answer To Check Your Progress Exercise 13. From the accumulated knowledge you can develop some tools so as to apply the same to find out how people act within organizations. challenges and the opportunities of the organization behavior. government and such service organizations. What makes this difference? Obviously the way in which people in these organizations act. In our daily life we come across a lot of organizations that consists of business.2 Concepts 13. We can define the term organization as two or more individuals who are interacting with each other within a deliberately structured set up and working in an interdependent way to achieve some common objectives. nature. and disciplines.. let us understand what organizational behavior is.4 Disciplines related to OB 13. banking.0 AIMS AND OBJECTIVES AND OPPORTUNITIES OF The main objectives of the lesson is to understand the concepts relating to OB. Why? The services of Tata group are far different from the services of Birla group.1 Introduction 13. the services rendered by Citibank are considered to be better than that rendered by any equivalent Indian bank.

social psychology. Psychology. it involves the understanding. prediction and control of human behaviour and factors affecting their performance and interaction among the organizational members. anthropology and economics. relationships among social groups and societies. norms and values. Right From the public transport that you use to come to your institute. absenteeism. maintaining. lets understand organizational behavior and what it exactly it means ‘Organizational Behaviour’ can be defined as the study of what people think.3 Nature of Organizational Behavior (OB) Organizational behavior is an applied behavioral science that is built on contributions from a number of behavioral disciplines such as psychology. 13. The value of organizational behavior is that it isolates important aspects of the manager’s job and offers specific perspective on the human side of management : -people as organizations . cultures. employment turnover . DISCIPLINES RELATED TO OB 1. predicting. So now. 2. beliefs. Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an understanding why an individual behaves in a particular way. Social psychology is the study of human behaviour in the context of social situations. Social psychology. Organization comprises of people with different attitudes. The study of Organizational Behavior facilitates the process of explaining.4 . productivity. the class you are attending at this moment. Organizations play a major role in our lives. And because organizational behavior is concerned specifically with employment – related situations.. We possibly cannot think of a single moment in our lives when we are not depending on organizations in some form or the other. The behavior of the people working in an organization to achieve common goals or objectives. The main focus of attention is on the social system. This thus provides us with useful insight into areas such as human motivation. sociology. the Institute itself.to achieve some common objectives. perceptual processes or personality characteristics. you should not be surprised to find that it emphasizes behavior as related to concerns such as jobs. This essentially addresses the problem of understanding the 94 . 3. human performance and management 13. Sociology. understanding. and the maintenance of social order. feel. and changing employee behavior in an organizational setting.people as resources -people as people In other words. This helps us to appreciate the functioning of individuals within the organization which is essentially a socio-technical entity. work. are all examples of organizations. and do in and around organizations. Sociology is the study of social behavior.

It is very important to appreciate the differences that exist among people coming from different cultural backgrounds as people are often found to work with others from the other side of the globe. into the study of people’s behaviour within the organizations. predicting and influencing individual behaviour in organizational settings. ideas and values within a group or society and the comparison of behaviour among different cultures. Aldag and Brief define OB as “A branch of the social sciences that seeks to build theories that can be applied to predicting. 4. However you can identify its today’s nature through a study of the characteristics of O. And modern society is full of large organizations which are complex in nature.B. anthropology etc. Callahan et al defined OB as a subset of management activities concerned with understanding. In fact organizational behaviour is not a discipline by itself but rather an integration of concepts on sociology. Organization Theory etc but they all treat organization as a common entity. Political Science. understanding and controlling behaviour in work organizations”. In the context of today’s organizational scenario. In other words OB applies knowledge about individuals. Important topics under here include structuring Of Conflict. the contributions of political scientists are significant to the understand arrangement in organizations. groups and the effect of organizational structure on behaviour towards the end of making the organization work more efficiently. Although frequently overlooked. There are of course other fields of study like Behaviourial science. The main focus of attention is on the cultural system. 5. It studies individuals and groups within specific conditions concerning the power dynamics. Important elements of OB 95 . allocation of power and how people manipulate power for individual self-interest etc. Organizational behavior as a discipline By now you have understood that man is a social animal and that he is successful more as an organizational member than as an individual. These organizations increasingly control every sphere of human activity. This applies even to the non-profit and voluntary organizations as well. Anthropology is the science of mankind and the study of human behaviour as a whole. It is difficult to fix a particular nature for OB. Economics.as this field is undergoing changes over time. Any organization to survive and sustain must be aware of the economic viability of their effort. Anthropology.. The importance of organizations gets a shot in the arm when a separate discipline ‘organizational behaviour’ itself has been established. 6.typical behavioural patterns to be expected from an individual when he takes part in a group. psychology. beliefs. customs.

KEY WORDS     Psychology Sociology Anthropology Political science 13. The individuals in organizations are thinkers. fundamental of management. Fundamental of management. It must be noted that the groups are ever changing and hence are dynamic.5. consisting of individuals. Koontz and Weirich. the external environmental influences. structure and technology. Pearson 2003 3. New Delhi 96 . technology and the external environment in which the organization operates. They may also disband. This calls for a definite structure of the organization. structure. management tasks and responsibilities Truman Talley books . LET US SUM UP We can define the term organization as two or more individuals who are interacting with each other within a deliberately structured set up and working in an interdependent way to achieve some common objectives. Some may be formal while others may be informal. People are recruited by the organization so as to achieve the objective.Robbins. groups and large groups and small groups. 13. Stephen P. Tata McGraw Hill.. The organizations hence exist to serve these members and people do not exist to serve organizations. New York 2.6.The key elements in OB are people. People Organization Structure Technology External Environment Key Elements in organization behavior The employees constitute the social system of an organization. feelers and living emotional beings.7. SOME USEFUL BOOKS 1.. Thus there is an interaction of people. The organization also needs technology to help in getting the job done. Peter F. Organizations play a major role in our lives. We possibly cannot think of a single moment in our lives when we are not depending on organizations in some form or the other 13.Drucker.

13. What are the important elements of organization behavior. ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. What are the disciplines related to organization behavior. 4. 3. 97 .8. 2. Discuss the concepts of organization behavior. Explain the nature of organization behavior.

14. He states that: "the human personality includes: i.1 INTRODUCTION This lesson gives us a clear idea about personality which have a great influence on the organization and also on the person.0 Aims and objectives 14.UNIT: 14 PERSONALITY AND BEHAVIORAL ASSESSMENT Structure 14. External appearance and behaviour or social stimulus value ii. Inner awareness of self as a permanent organizing force iii.2 DEFINITION Though psychologists and social scientists unanimously agree to the importance of personality.5 Let us sum up 14. These distinguishing characteristics are summarized by the term personality". The major determinants of the personality is determined by various factors and also the characteristics is explained in detail in this lesson. The word "personality" may mean something like outgoing. He said personality is "the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment". they are unable to come out with a unanimous definition."a very diverse and complex psychological concept.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the determinants of personality." Gordon Allport gave the most frequently used definition of personality nearly 70 years ago.1Introduction 14.3 Major determinants of personality 14. characteristics. invigorating interpersonal abilities … but we must also recognize and explain the fact that development results in man acquiring a distinctiveness or uniqueness which gives him identity which enables him and us to recognize him as apart from others.2 Definition 14.8 Answer To Check Your Progress Exercise 14. Many authorities on the subject have defined personality in different ways.6 Key words 14. 14. 98 . James D Thompson and Donald Van Houten define personality as .7 Some Useful Books 14.4 Personality characteristics in organizations 14. both "inner and "outer". The particular pattern or organization of measurable traits. Some of the definitions are reproduced below: Probably the most meaningful approach would be to include both the person and the role as Floyd L Ruch does in his definition.

psychologists and geneticists have accepted the fact that heredity plays an important role in one's personality. 2. In BFT the individual learns the internal rhythm of a particular body process through electronic signals feedback from equipment that is wired to the body area. From this biofeedback the person can learn to control the body process in question. temperament. muscle composition and reflexes. it may be possible physically to manipulate personality through ESB. However. Cultural.the situation. Research on animals has showed that both physical and psychological characteristics can be transmitted through heredity. But its potential impact could be extremely interesting for the future. 4.14. The fact that a person is tall or short. all contribute to personality. But research on human beings is inadequate to support this viewpoint. sex.3 MAJOR DETERMINANTS OF PERSONALITY Personality appears to be a result of both influences. is biologically determined. located in the chromosomes. Family Social Situational. 4) Physical features: A vital ingredient of the personality. Preliminary results from the electrical stimulation of the brain (ESB) research give indication that better understanding of human personality and behaviour might come from the study of the brain. and biological rhythms are characteristics that are considered to be inherent from one’s parents. 2) Brain: The second biological approach is to concentrate on the role that the brain plays in personality. Biological Factors The study of the biological contributions to personality may be studied under three heads: 1) Heredity: Heredity refers to those factors that were determined at conception. If personality characteristics were completely dictated by heredity. Additionally. 3) Biofeedback:. Work with ESB on human subjects is just beginning. The determinants of personality can perhaps best be grouped in five broad categories: 1. they would be fixed at birth and no amount of experience could 99 . Practically all would agree that physical characteristics have at least some influence on the personality. 5. The problem lies in the fact the cognitive and psychological processes. Biological. energy level. black or white will influence the person's effect on others and this in turn. an individual's external appearance. This being true. The most recent and exciting possibilities come from the work done with electrical stimulation of the brain (ESB) and split-brain psychology. The heredity approach argues that the ultimate explanation of an individual's personality is the molecular structure of the genes. Physical stature. plus many other variables. today we recognize another factor . More research is needed on biofeedback before any definitive conclusions can be drawn. facial attractiveness. will affect the self-concept. 3. There seem to be definite pleasurable and painful areas in the human brain. fat or skinny.

Family Factors Whereas the culture gene rally prescribes and limits what a person can be taught. friends and social groups and other influences we experience. and cooperation. Socialization starts with the initial contact between a mother and her new infant. school friends and members of the work group. is critical to personality development. Siblings (brothers and sisters) also contribute to personality. There are other factors. Socialization process is especially relevant to organizational behaviour because the process is not confined to early childhood. The culture largely determines attributes toward independence. Culture requires both conformity and acceptance from its members.  It can be viewed as the process through which the child actually takes on the attributes of the model. From all three perspectives. It follows that a person reared in a western culture has a different personality from a person reared in our Indian culture. and later the social group. The personality of an individual to a marked extent is determined by the culture in which he or she is brought up. play influential roles. brothers. aggression. Cultural Factors Among the factors that exert pressures on our personality formation are the culture in which we are raised. taking place 100 . This is commonly called the socialization process. which greatly influence an individual's personality.  Identification can be viewed as the similarity of behaviour including feelings and attitudes between child and model. But personality characteristics are not completely dictated by heredity.  Identification can be looked at as the child's motives or desires to be like the model. groups and especially organizations.alter them. from the enormously wide range of behavioural potentialities that are open to him or her. Traditionally. then the social group – peers. which is important to the person's early development. competition. The home environment also influences the personality of an individual. A substantial amount of empirical evidence indicates that the overall home environment created by the parents. the norms among our family. the identification process is fundamental to the understanding of personality development. Social Factors There is increasing recognition given to the role of other relevant persons. it is the family. our early conditioning. Socialization involves the process by which a person acquires. which also influence personality. There are several ways of ensuring that members comply with the dictates of the culture. According to Mischel. which selects. the family probably has the most significant impact on early personality development. the process can be examined from three different perspectives. After infancy. other members of the immediate family – father. The parents play an especially important part in the identification process. Thus. interprets and dispenses the culture. cultural factors are usually considered to make a more significant contribution to personality than biological factors. sisters and close relatives or friends. in addition to their direct influence.

Locus of Control 2. have higher absenteeism rates.4. Machiavellianism 3. 14. Situational Factors Human personality is also influenced by situational factors. does change in different situations. Research on locus of control has strong implications for organizations. The different demands of different situations call forth different aspects of one's personality. to be more likely to assume managerial positions. A large amount of research comparing internals with externals has consistently shown that individuals who rate high in externality are less satisfied with their jobs. Knowledge.  Externals: Externals are those individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Type A Personality. Externals prefer a more structured work setting and they may be more reluctant to participate in decision making. An individual's personality.  Internals: Those who believe they control their destinies have been labeled internals. They are more compliant and willing to follow directions. skill and language are obviously acquired and represent important modifications of behaviour. evidence is accumulating that socialization may be one of the best explanations for why employees behave the way they do in today's organizations. Risk Taking 8. receive higher salaries and display less anxiety than externals (those with an external locus of control). Self-monitoring 6. In addition. Self-efficacy 5. believing that what happens to them in their lives is due to luck or chance. internal's have been shown to display higher work motivation. Positive/Negative affect 7. Internals (those with an internal locus of control) have been found to have higher job satisfaction. The effect of environment is quite strong. Locus of Control Some people believe they are masters of their own fate.rather throughout one's life. Self-esteem 4. Hundreds of personality characteristics have been identified. hold stronger beliefs that effort leads to performance. An individual's generalized belief about internal (self) versus external (situation or others) control is called locus of control. In particular. We have selected eight characteristics because of their particular influences on individual behaviour in organizations. while generally stable and consistent. are more alienated from 101 . and to prefer participative management styles. Other people see themselves as pawns of fate. PERSONALITY CHARACTERISTICS IN ORGANIZATIONS Managers should learn as much as possible about personality in order to understand their employees. They are: 1.

and they may be more reluctant to participate in decision-making. Therefore. in contrast. and are less involved on their jobs than internals. and they compliment individuals who give them positive feedback while cutting down people who give them negative feedback. An individual high in Machiavellianism is pragmatic. internals do well on sophisticated tasks – which includes most managerial and professional jobs – that require complex information processing and learning. will take more risks in job selection and are more likely to choose unconventional jobs. 102 . In contrast. A high-Mach individual behaves in accordance with Machiavelli's ideas. and c) When emotional involvement with details irrelevant to winning distracts low-Mach's. Machiavellianism The primary method for achieving power that he suggested was manipulation of others. a) When they interact face to face with others rather than indirectly. relying on their persuasive abilities. Machiavellianism then is a personality characteristic indicating one's willingness to do whatever it takes to get one's way. They are more strongly affected by what other people think of them. Individuals with high selfesteem have positive feelings about themselves. externals should do well on jobs that are well structured and routine and where success depends heavily on complying with the directions of others. maintains emotional distance and believes that ends can justify means. Research on self-esteem (SE) offers some interesting insights into organisational behavior. Self-Esteem Self-esteem is an individual's general feeling of self-worth. b) When the situation has a minimum number of rules and regulations thus allowing latitude for improvisation. is consistent with a high-Mach perspective. High-Machs are suitable in jobs that require bargaining skills or where there are substantial rewards for winning (example commissioned sales). Internals will not react well to being closely supervised. "If it works use it". Additionally. Individuals with low self-esteem view themselves negatively. Allowing internals considerable voice is how work is performed is important. They are skilled manipulators of other people. Externals. High-Machs tend to use deceit in relationships have a cynical view of human nature and have little concern for conventional notions of right and wrong. are more satisfied with their jobs. Because internals believe they control what happens to them. which include the notion that it is better to be feared than lived. internals are more suited to jobs that require initiative and independence of action. may prefer a more structured work setting. they will want to exercise control in their work environment. i) High-SEs: People with High Ses  Believe they possess more of the ability they need in order to succeed at work. and believe their strengths are more important than their weaknesses. perceive themselves to have strength as well as weaknesses.the work setting.

Given that high self-esteem is generally a positive characteristic. Self-monitoring refers to an individual's ability to adjust his or her behaviour to external situational factors. individuals high in self. Self-Efficacy Self-efficacy refers to an individual's belief that he or she is capable of performing a task. LET US SUM UP This lesson gives us a clear idea about personality which have a great influence on the organization and also on the person. Low self-monitors. that they are capable of putting forth the effort to accomplish the task. Self-Monitoring A characteristic with great potential for affecting behaviour in organisations is self monitoring. Individuals with high self-efficacy believes that they have the ability to get things done. 14. Individuals with negative effect report more work stress. and the world are said to possess negative affect. are less likely to take unpopular stands. Success tends to raise self-esteem. Managers can do several things to promote positive effect. managers should encourage employees to raise their self-esteem by giving them appropriate challenges and opportunities for success.  Self-esteem may be strongly affected by situations. High self-monitors pay attention to what is appropriate in particular situations and to the behaviour of other people. and the world in general are said to have positive effect. In addition. So.People with low Ses  Are more susceptible to external influence. whereas failure tends to lower it. As a result. Negative individual effect produces negative group effect and this leads to less cooperative behaviour in the work group. High self-monitors are capable of presenting striking contradictions between their public persona and their private self.5 . Low self-monitors can't disguise themselves this way. we find that people with low self-efficacy are more likely to lessen their effort or give up altogether whereas those with high self-efficacy will try harder to master the challenge. In contrast. those low in self-efficacy are likely to lessen their effort when given negative feedback. other people. The major determinants of the personality are 103 . l tend to be concerned with pleasing others and therefore. and that they can overcome any obstacles to their success. because their behaviour varies with the situation appear to be more unpredictable and less consistent. depend on the receipt of positive evaluations from others. others. including allowing participative decision making and providing pleasant working conditions. in difficult situations.ii) Low-SEs: .efficacy seem to respond to negative feedback with increased effort and motivation. in contrast. The higher your self-efficacy. are not as vigilant to situational cues and act from internal states rather than paying attention to the situation. Employees with positive effect are absent from work less often. and they behave accordingly. Positive/Negative Effect Individuals who focus on the positive aspects of themselves. the more confidence you have in your ability to succeed in a task. the behaviour of low self-monitors. those who accentuate the negative in themselves. and l are less satisfied with their jobs.

2. Cultural. 14. Many authorities on the subject have defined personality in different ways. 104 . fundamental of management. List few definitions of Personality. Family Social Situational 14. Though psychologists and social scientists unanimously agree to the importance of personality. New Delhi 14. Koontz and Weirich. Fundamental of management. New York 2.determined by various factors and also the characteristics are explained in detail in this lesson. Peter F. Stephen P.6 .Drucker.Robbins.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Pearson 2003 3. Explain the different personality characteristics in organizations. What are the major determinant of personality 3. Explain the importance of personality. Tata McGraw Hill. 4. management tasks and responsibilities Truman Talley books . they are unable to come out with a unanimous definition.7 SOME USEFUL BOOKS 1. KEY WORDS o o o o o Biological.

2 Components 15. At rest the tone of the USM is 50%. sorrow.11 Answer To Check Your Progress Exercise 15.2.0 Aims and objectives 15. Feeling of emotions is due to isotonic contraction (increase or decrease) in the hardness) of the muscles of facial expression.3.10 Some Useful Books 15.6 Types of learning 15.7 Learning theories 15. Emotion is the exchange rate of a sensation or a movement. PURPOSE OF EMOTIONS: 105 .3 Purpose of emotions 15.5 Learning 15.1 INTRODUCTION A mental state that arises spontaneously rather than through conscious effort and is often accompanied by physiological changes. 15.8 Let us sum up 15. reverence. Thus there is a sensory emotion and a motor emotion.4 Types of emotions 15. a feeling: the emotions of joy. Facial expression of emotion 2. and love. Feeling of emotion Facial expression of emotions is due to isometric contraction (shortening) of muscles of facial expression around the mouth. 15.1 Introduction 15.9 Key words 15.UNIT – 15 EMOTIONS AND LEARNING Structure 15. 15. Unified Skeletal Muscle is a physiological state of the skeletal muscular system in which all the skeletal muscles of the body isometrically contract or relax as though they were a single skeletal muscle. hate. There is simultaneous change in tone of Unified Skeletal Muscle (USM) and therefore we feel an emotion in the entire body.0 AIMS AND OBJECTIVES The main objective of the lesson is to understand about purpose. types and learning and the theories. COMPONENTS OF EMOTIONS: Emotion has two components 1.

They are. 1. Pleasure . Positive and Negative emotions: Since at rest the tone of the USM is 50% a sensation can increase it or decrease it. taste. There are two basic motor emotions. They are.Positive sensory emotion 2. light. 1.There are various sensations in the body like heat. vision. pressure. By comparing the sensory emotions produced we can indirectly compare the sensations. Displeasure . Feeling of Emotions 2. How is it possible for us to compare these with one another? Emotions enable us to compare sensations. taste.Negative motor emotion Components of emotions Emotions have two components. hearing.Negative sensory emotion Motor emotions: Motor emotion is the change in tone of the USM induced by movements. etc. Feeling of an emotion is due to isometric contraction or hardening of a pair of muscles of facial expression and facial expression is due to isotonic contraction or shortening of the same muscle. 106 . Fear . By comparing the change in tone induced by every sensation and movement we can compare them. How is it possible to compare them? How to compare a song with the taste of coffee? This comparison of the incomparable is made possible by emotions. Positive emotion increases the tone of the USM and Negative emotions decrease it.Positive motor emotion 2. etc. The movements are infinite. We have many sensations like touch. 1. Every sensation produces a sensory emotion. Facial expression of emotions. They are. pressure. Anger . There are two basic sensory emotions. heat. Whenever there is a sensation or movement the tone of the USM changes indicating the exchange value of the sensation or movement. Sensory emotions: Sensory emotion is the change in tone of the USM induced by sensations.

taste may be associated with smell and heat. we do feel many of them in our everyday life. it can enable us to compare a pizza with a movie! Thus. We usually have no problem identifying the emotion that we are experiencing at a given time. Feeling of emotions also plays a vital role in thinking and dreaming.anger and fear.Usually sensations occur in combination. Facial expression of emotions: While we can feel sensations we can't convey their magnitude to others. feeling of emotions enables us to determine our preferences and priorities. Motor emotions inform us whether something has to be done or not and also whether something can be done or not.4. Feeling of Sensory and motor emotions act as compasses and guide us to take the right path while taking care of our sensations. Since these muscles are under our control they enable us to create an illusion in others that we are greater or simpler than what we actually are. Facial expression of emotions enables us to convey to others the magnitude of the sensation we feel to others. 107 . Facial expression of emotions enable us to convey the magnitude of our sensations to others and also to what extent we are ready to go to rectify them. the fear of flying. Emotions enable us to compare two groups of sensations also. Purposes of facial expression of emotions: 1. 2. 2. Each day we feel dozens of emotions. Thus. TYPES OF EMOTIONS At one time or another we all experience strong feelings that accompany positive or negative emotions. we would end up with hundreds of them. 1. One thing for sure. the excitement of going on holidays. Motor emotions . 1. 15. Sensory and motor emotions: There are two basic emotions that we can feel and express. or the grief of losing a family member. Thus. Purposes of feeling of emotions: 1. Sensory emotions . If we tried to list all of the words in the English language to describe emotions. A day without feeling emotions would be impossible to imagine. Sensory emotions enable us to know whether a sensation is good or bad. 2. We will take you on an interactive journey through your body to learn more about your emotions.pleasure and displeasure 2.

be it a skill. Hence learning can at the most bring about a change in behaviour. But learning must result from interaction with environment and that is how you learn word-processing. This change can be for better or worse than the previous behaviour. knowledge etc. Some incidents do not change your present behaviour but can change your potential behaviour.15.It is all right for them if things come in the normal way and even if they miss to learn they casually look for further opportunity at leisure. software design etc. stereotype.5 LEARNING The behavioural scientists say. You learn to drive a car and you did not know this before. They feel they lack something very useful to life if they do not learn. 15. Perceptual learning: ability to learn to recognize stimuli that have been seen before  Primary function is to identify and categorize objects and situations 108 .The experience can be direct like a typing instructor teaching you or indirect by observing others doing a job. it is natural pick. 4) Learning should always be followed by practice or reinforcement as otherwise the new behaviour disappears. As you will be seeing in the coming chapters. Such people can be trained and upgraded in an organization more productively. there are people who will learn under classical conditioning and operand conditioning. Learning may be good or bad from the organizational point of view.6 TYPES OF LEARNERS There are active learners and passive learners in general. In an organization this becomes a problem. These are separate type of learners. You do not learn to drink or eat. “learning can be defined as relatively permanent change in the present or potential behaviour that occurs as a result of experience or reinforced practice”. For example when you observe the quality performance of coworkers end up in rewards for them. So the definition confirms that there must be change in the behaviour after learning. and if you come across the news of a passer-by having been beaten up by dacoits. restriction on work etc 3) The effectiveness of learning process is directly proportional to the degree of permanent change. All said and done the four important aspects of learning are 1) Learning is possible only through experience..M. as you cannot train people to absorb better skills. Thus people learn bad habits. The other word in the definition says that the change occurs due to experience and not due to change in biological growth like a child growth. As the name indicates active learners are those who take special interest and put sincere effort to learn. you will resist such attempts. You use the driving skills as long as you want and this is a permanent change in you. On the contrary you also have passive learners in the sense that they will not take any special interest or put effort to learn things . you also begin to emulate them. It will be difficult to bring a change in the behaviour of such people in an organization. Thus when you hear that driving through a particular area is dangerous after 10 P. a way of life. false prestige. 2) Learning does not necessarily mean improvement in behaviour as it can worsen the behaviour also.

Stimulus-response learning: ability to learn to perform a particular behavior when a certain stimulus is present: 1. Hebb rule . allows an organism to adjust its behavior according to the consequences of that behavior: 7. Episodic learning: remembering sequences of events that we witness 7. thereby helping us understand the inherently complex process of learning. Punishment 3. Reinforcement: positive and negative 8. Behaviorism focuses only on the objectively observable aspects of learning.  Cognitive theories look beyond behavior to explain brain-based learning. Unconditioned Response (UR). There are three main categories or philosophical frameworks under which learning theories are called as 1. Constructivism. Observational learning: learning by watching and imitation other people 15.7. changes will take place in the structure or chemistry of the synapse that will strengthen it 5. Relational learning: involves connections between different areas of the association cortex 5. Motor learning: establishment of changes within the motor system 4. 3.  Behaviorism. Unconditioned Stimulus (US). Establishment of connections between sensory systems and motor systems 2. Conditioned Stimulus (CS). Instrumental conditioning: association between a response and a stimulus. Rabbit experiment . 109 . Spatial learning: involves learning about the relations among many stimuli 6. Conditioned Response (CR) 4. 2. Classical conditioning: association between two stimuli: 3. Cognitive. LEARNING THEORIES A learning theory is an attempt to describe how people and animals learn.tone paired with puff of air 6.if a synapse repeatedly becomes active at about the same time that the postsynaptic neuron fires. Changes within the sensory systems of the brain 2.

Our lives are profoundly influenced by associations we learn through classical conditioning. Dogs do not need to be conditioned to salivate to food. the dog began to salivate as soon as the bell rang.. Classical conditioning introduces a simple cause-and-effect relationship between one stimulus and response. likes and dislikes. i. Unconditioned reflexes are built into the nervous systems of most vertebrates. Example. Classical conditioning is modifying behaviour so that a conditioned stimulus is paired with an unconditioned stimulus and elicits an unconditioned behaviour. Under certain situations. he noticed a great deal of salivation (conditioned response). to salivate at the sound of bell. classical conditioning does explain human behaviour. and to consider the philosophical anthropology implied by any theory. This leaves no ground for making choices. Afterwards.e. His book "Conditioned Reflexes" is one of the classic works in psychology. even if no meat were presented. yet it has a powerful effect on our attitudes. We have all learned to respond in specific ways to a variety of words and symbols. After a while. when merely bell was rung. and emotional responses. Now. Ivan Pavlov's research on the conditioned reflex in dogs revealed much of what we know about the principles of classical conditioning. Classical Conditioning of Pavlov: Ivan Pavlov (1849 . But.  Unconditioned Reflex: This is a "unlearned" reflex. no salivation was noticed in the dog.1936) organized and directed research in physiology at the Institute of Experimental Medicine in St. He did this several times. the dog would salivate merely at the sound of the bell. The basic elements and Processes in Classical Conditioning:  Reflex: A reflex is an involuntary response to a particular stimulus. he may become nervous whenever asked to come to the principal's office because of this association. There are two kinds of reflexes:  Conditioned Reflex: This is a "learned" reflex rather than a naturally occurring one. It is also important to take account of informal learning theories. a Russian psychologist developed classical conditioning theory based on his experiments to teach a dog to salivate in response to the ringing of a bell. Constructivism views learning as a process in which the learner actively constructs or builds new ideas or concepts. Petersburg. if a student is always reprimanded by his Principal when he is summoned to the principal's office. It also makes the response reflective or involuntary after the stimulus-response relationship has been established. Ivan Pavlov. 110 . since it was conditioned to link the sound of the bell with the offering of meat. the dog had learned to respond. What Pavlov did next was to link the meat and the ringing of the bell. Any stimulus (such as food) that without learning will automatically elicit (bring forth) an unconditioned response is called an unconditioned stimulus (US). he merely rang the bell without presenting the meat. When Pavlov presented meat (unconditioned stimulus) to the dog. Classical Conditioning Classical conditioning is one of the simplest forms of learning. which factor differentiates human beings from dogs. Russia from 1891 until his death in 1936. In effect. salivation in response to food. For example. so salivation of food is an unlearned or unconditioned response (UR). The Conditioned and Unconditioned Stimulus and Response: Pavlov continued to investigate the circumstances under which a conditioned reflex is formed.

Thus. They choose to broaden the study of learning to include such cognitive processes as thinking. Wolfang Kohler (1887-1967): Learning by insight: A German Psychologist studied anthropoid apes and became convinced that they behave intelligently and were capable of 111 . It is also known as reinforcement theory and it suggests that behaviour is a function of its consequences. People learn to behave to get something they want or avoid something they don't want. It is based upon the premise that behaviour or job performance is not a function of inner thoughts. these processes are critically important in a more complete. 1. For example. The consequences of behaviour are used to influence.Operant Conditioning Operant conditioning argues that behaviour is a function of its consequences. or shape behaviour through three strategies: reinforcement. more comprehensive view of learning. the behaviour can be predicted and controlled. operant conditioning is the process of modifying behaviour through the use of positive or negative consequences following specific behaviours.  Based upon such consequences. remembering and forming mental representations. working hard and getting the promotion will probably cause the person to keep working hard in the future Cognitive Learning Theory Behaviourists such as Skinner and Watson believed that learning through operant and classical conditioning would be explained without reference to internal mental processes. punishment and extinction. Hence. The consequences of a given behaviour would determine whether the same behaviour is likely to occur in future or not. knowing. Thus. The consequence of such a response will determine the nature of the future response. feelings. From an organizational point of view. however. the behaviour can be controlled by manipulating its consequences. problem solving. What Pavlov did for classical conditioning. Today. Operant conditioning induces a voluntary change in behaviour and learning occurs as a "consequence" of such change.F Skinner did for operant conditioning. The tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour. According to cognitive theorists. Reinforcement therefore strengthens behaviour and increases the likelihood that it will be repeated. the Harvard psychologist B. Operant behaviour means voluntary or learned behaviour in contrast to reflexive or unlearned behaviour. This relationship is built around two principles:  The behaviour that results in positive rewards tends to be repeated and behaviour with negative consequences tends not to be repeated. any stimulus from the work environment will elicit a response. certain types of consequences can be used to increase the occurrence of a desired behaviour and other types of consequences can be used to decrease the occurrence of undesired behaviour. the management can study and identify this relationship and try to modify and control behaviour. emotions or perceptions but is keyed to the nature of the outcome of such behaviour. a growing number of psychologists stress the role of mental processes. Based upon this direct relationship between the consequences and behaviour.

In addition. was given one short stick. Eventually. rather than trial-and-error learning. competence and power. However. Parents. Kohler observed that the chimps sometimes appeared to give up in their attempts to get the bananas. beyond reach outside the cage were a longer stick and a bunch of bananas. Social Learning Albert Bandura contends that many behaviours or responses are acquired through observational learning. Kohler observed the chimp's unsuccessful attempts to reach the bananas by jumping or swinging sticks at them. out of reach of the apes. After failing to reach the bananas with the short stick. In another experiment. Kohler hung a bunch of bananas inside the caged area but overhead. and love. the chimps solved the problem by piling the boxes one on top of the other until they could reach the bananas.8 LET US SUM UP A mental state that arises spontaneously rather than through conscious effort and is often accompanied by physiological changes. a feeling: the emotions of joy. Feeling of emotion.problem solving. Kohler insisted that insight. he successfully retrieved the bananas. Facial expression of emotions is due to isometric contraction (shortening) of muscles of facial expression around the mouth. Social learning integrates the cognitive and operant approaches to learning. Observational learning. finding that the long stick did not reach the bananas. Then. sex. hate. accounted for the chimps successes because they could easily repeat the solution and transfer this learning to similar problems. sorrow. It also emphasizes that people acquire new behaviours by observing or imitating others in a social setting. Emotion has two components 1. With this stick. Other important factors are the age. The effectiveness of a model is related to his or her status. after an interval they returned and came up with the solution to the problem as if it had come to them in a flash of insight. It recognizes that learning does not take place only because of environmental stimuli (classical and operant conditioning) or of individual determinism (cognitive approach) but is a blend of both views. attractiveness. In his book 'The Mentality of Apes' (1925). boxes and sticks were left around the cage. reverence. sometimes called modelling results when we observe the behaviours of others and note the consequences of that behaviour. movie stars and sports personalities are often powerful models. and ethnicity of the model. learning can also be gained by discipline and self-control and an inner desire to acquire knowledge or skills irrespective of the external rewards or consequences.9. the brightest of the chimps. Kohler describes experiments he conducted on chimpanzees confined in caged areas. Whether learned behaviours are actually performed depends largely on whether the person expects to be rewarded for the behaviour. 15. Facial expression of emotion 2. This process of self-control is also partially a reflection of societal and cultural influences on the development and growth of human beings. 15. Sultan. Sultan used it to drag the longer stick within reach. Sultan finally solved the problem by fitting the two sticks together to form one long stick. KEY WORDS  Facial expressions  Theories of Learning 112 . The person who demonstrates the behaviour or whose behaviour is imitated is called a role model. In one experiment.

Peter F. 3. Tata McGraw Hill. Discuss in details about the learning theories. Stephen P. Fundamental of management. fundamental of management.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. management tasks and responsibilities Truman Talley books . Koontz and Weirich.Robbins. New York 2. Pearson 2003 3.10 SOME USEFUL BOOKS 1. 2. 4. Emotion types  Learners types 15. New Delhi 15. 113 . Explain the purpose of emotions What are the different types of emotions Write about learning.Drucker.

these are then processed by the perceiver. Perception is defined as a process by which individuals organize and interpret their sensory impression in order to give meaning to their environment. In practice. you can take an input-throughput-output 114 . Perception is the process through which the information from outside environment is selected. Sensation usually refers to the immediate. or skin.7 Identification Of Stress At Various Levels 16.6 Role Of Stress Management 16. nose.5 Stress Management 16. It of course is a psychological process. Perception. In other words perception lies at the root of every individual behaviour. It is the most important cognitive factor of human behaviour.1 Introduction 16. 16.2 PERCEPTION AND PROCESS The process of perception consists of a number of sub processes. tongue.9 Let Us Sum Up 16.2 Perception And Process 16. sensation and perception are virtually impossible to separate. types and the stress mangement and its role and the various levels of identification of stress and steps to reduce it. relatively unprocessed result of stimulation of sensory receptors in the eyes. better describes one's ultimate experience of the world and typically involves further processing of sensory input.4 Types Of Perception 16. because they are part of one continuous process. received.8 To Reduce The Stress Level 16.10 Some Useful Books 16.1 INTRODUCTION Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world. 16.9 Key Words 16. It has to be noted that perception is more a cognitive than a sensory process.UNIT – 16 : PERCEPTION AND STRESS MANAGEMENT Structure 16. Perceptual inputs are received first.0 Aims And Objectives 16. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment. on the other hand. The resulting output becomes the basis for behaviour.3 Factors Influencing Perception 16.11Answer To Check your Progress Exercise 16.0 AIMS AND OBJECTIVES The main objective of the lesson is to understand the basics concepts realating to perception and its process. organized and interpreted to make it meaningful to you. To interpret it technically. ears. There is no behaviour without perception.

COMPLEX PROCESS OF PERCEPTION The main perception process has three components. organization and interpretation and hence are the throughputs. In the process there can be misinterpretation also. past experience. These inputs are undergoing transformation through perceptual mechanism of selection. he perceives others and situations with ego satisfying or ego threatening. Perhaps the perceptions are 115 . Any event is a perceptual input. The characteristics of stimuli are important as based on those only the perceiver gets attracted to the stimuli that will be responsible for perception. Perceptual inputs are nothing but the stimuli in the form of objects. ugly. ethics. Of course the situational variables and perceiver’s characteristics also affect the selection of stimuli. They begin to interpret things as good. They are 1) Existence of stimuli 2) Perception mechanism 3) Perceptual outputs. beautiful etc. If there is a person with strong ego. values. The perceptual inputs are from the environment like the stimuli from the environment such as events. needs. attitudes etc that get reflected in behaviour that can be viewed as perceptual outputs. only some are selected while others are screened out or rejected by what is known as perceptual selectivity mechanism. that will give him a meaning for the situation People interpret the meaning of what they have selectively perceived and organized in terms of their own assumptions of people. things and situations. Of the many stimuli from the environment. Human behaviour is shaped and affected by perceptual outputs.3 FACTORS INFLUENCING PERCEPTION The three most important factors affecting perception are Characteristics of the perceiver Characteristics of the perceived Characteristics of the situation Characteristics of the perceiver An individual’s habits. Hence interpretation of stimuli play a major role in the formation of human behaviour and this is critical in the case of an organization. attitudes and personality can very well affect the perception process. There are many factors like the characteristics of the stimuli. 16. The resultant are opinions. subjects or even people. bad. feelings. Finally the perceiver interprets these organized stimuli. that of the perceiver that of the situation etc that end-up in interpretation or misinterpretation of events and objects. These stimuli are then organized in a particular order so as to make sense out that. The interaction between the perceiver and stimulus starts the perception process. events or people.approach to understand the dynamics of perception.

mannerism. Also the size and intensity of the stimulus increases the selective perception. The employee may even perceive you with distrust. wanted by others and liked by others. Similarly your perceptive ability is increased side by side with your experience and knowledge thereby giving a tremendous impact on perception. You can take the example of a personnel manager. On the contrary secured men see others warm and friendly. later you are not able to do that – the employee will have a totally different perception about you.addict. The communication of others.inaccurate. about their sophistication and precision The body language. they cannot become professionals although you perceive them to be so. facial expressions. gender. minorities. Our cultural upbringing. If his perception about women. You thus promise a promotion to your subordinate within three months in appreciation of his performance. Once you do not like a person then you always look for the negative aspects of the person. owning to the difference in the status. Perhaps the vocabulary and the language used can create an impression about them. The perception you have about an assistant manager of an organization is totally different from the one that you have about a senior manager. desires and personality are internal factors that affect a person’s perception. because our judgment is based on our culture and values. communication style. tone of expression and the choice of vocabulary can affect our perception about their intelligence and mood. Tall or very fat man(size) attracts attention and the resulting dominance enhances the perceptual selection. Similarly people who are less secured find fault with others. less educated or handicapped etc are biased ones. values and ethics play an important role in our perception about others. This confirms that status of occupation can affect your perception. Normally it is not possible to judge the personality of another person brought up in a different culture. For example persons who accept themselves may easily accept others and have faith in others and perceive everything favorably only. Thus age. personality are all physical characteristics and each one of them has its impact on our perception about the others. verbal as well as non-verbal affect our perception about others. Are you not concluding that an assertive and confident man is an executive and later you may find that your assumption is wrong? Just because some are dressed in suits. Thus you are startled to come across a wealthy man or top class professional or people of fame etc Your behaviour when in contact with a supreme court judge is different from that of your being with an school teacher. The sitting posture. movement of their eyes and the depth of the smile can reflect the confidence and outgoing nature of the individuals. An alcoholaddict can prejudge another alcohol. Also these self accepted individuals perceive themselves as being accepted by others. really they may be lower level employees. about their education. Repetitive stimulus is superior to single stimulus for enhancing perceptual ability of a person. appearance. then he will be very sensitive to them during an employment interview. The factors like needs. Characteristics of the perceived The physical characteristics of others influence our perception about others. Both you are respectful but with that difference due to different 116 . Some times our attitude creates a wrong perception in the minds of people who are daily associated with us.

One of these ways is by perceptual organization. However. then you will perceive the stranger also to a man of high regards.perceptions you have about them. all of the sides of the square are perfectly straight. the sides of the square will appear to bend inward toward the center of the circles.4 TYPES OF PERCEPTION There are many different ways of perceiving the world. The background is responsible for the distortion seen in the figure. However. These can influence your perceptions. The other stimuli that we do not perceive as the target make up the background. Go ahead and check with a straight edge. closely spaced concentric circles. In such a situation you will form a nice image of the stranger person. An interesting phenomenon occurs when looking at a square centered over top of several. This favorable image will be erased when on the contrary you see a stranger with a notorious person and in that situation you will have a bad perception about the stranger. The stimulus we perceive as being the target is referred to as the figure. Characteristics of the situation You come across different situations or events either in society or in an organization. or ground. 16. or what you perceive. if you perceive the vase as the background. The vase seen at right can be perceived in two different ways. In the figure at left. in the simplest form possible. Perceptual organizations are processes used to group basic sensory elements together into perceivable objects. See how you behave when introduced to a film celebrity! Similarly your approach to a warm and friendly man is different from that you have with a cold and short-tempered man. Another type of perception is depth perception. in your mind. Thus your behaviour with your professor at classroom is different from your behaviour with the same professor at a marriage party. Figure ground perception is the tendency to discriminate between target and background stimuli. you will see a vase. 117 . which is primarily utilized by visual or auditory senses. Thus if you meet some unknown person along with your managing director about whom you have a very good impression. In an office set-up if employees are given opportunities to interact in a friendly and sociable work situations then the employees will become trustworthy and less defensive—the situation plays its role. The two basic principles of perceptual organization involves perceiving figures embedded in a perceptual background and organizing what you see. as the situation is different now. This is known as background mediated illusion. you will see two faces. Even the location od an event can change the perception. If the black is perceived as the background.

Hans Selye defined stress as “the non specific response of the body to any demand 118 . even for the experts. you are still able to perceive the actual size of the airplane despite a change in the size of the retinal image. in which the moon on the horizon appears larger than one higher in the sky. Defining stress becomes a problem. control and challenge.5 STRESS MANAGEMENT Definition Stress may be understood as a state of tension experienced by individuals facing extraordinary demands. The center circles are actually both the same size. but it's relationship to the horizon can make it seem larger lower in the sky. The pressures of modern life. Due to the information in your memory stores. This concept is known as size constancy.Image consistency Imagine yourself outside looking up at an airplane high in the sky. Despite the fact that you know images that are far away are actually the same size as if they were closer. Stress toughness is caused by commitment. can lead to emotional imbalances that are collectively labeled 'stress'. Our brain perceives the circle surrounded by larger circles as smaller. yet you still know that the plane is large enough to hold hundreds of people. You lift up your hand and see that the plane is smaller than your finger. constraints or opportunities. 16. yet they appear to different because of their relationship to the surrounding circles. your brain can be fooled. Stress is something which impairs brain to think or act on something. because it is smaller in relation to the surrounding circles. cognitive appraisal of threat. An example of this is the moon illusion. The moon doesn't actually changes size. Lazarus has defined stress as a whole spectrum of factors stimulus. coping styles and psychological defenses. This phenomenon can also be explained using the figure below. response. The opposite is true for the circle surrounded by smaller circles. Stress tough people usually thrive on stress and cope with pressure that would put the average person into tailspin. coupled with the demands of a job. constraints (things that keep us from doing what we desire) or opportunities. The term 'stress' normally refers to excessive stress caused by extraordinary demands (which cause us to lose something we desire).

Role overload is experience by the bank officers when there are too many or too high expectations from their role 6. Stress can arise from an opportunity. 4. Stressor refers to the source of stress.6 ROLE STRESS AMONG THE PROFESSIONALS Stress due to occupation of a role is known as role stresses which are the following types: 1. Role Isolation arises when the bank officers feel cut off from the channels of communication 7. Self – role distance is experienced when a role occupant has to do when they disliked. constraint. 16. It can be found within the environment. the individual. Role expectation conflict arises when the bank officers faces conflicting expectations from different role senders. skill or expertise experienced by the role occupant 8. demand. and the interaction between the two. needs and values of the role and the role occupant. 119 . is available when needed and provides relationships that are satisfying. When they are given a newer and higher role. Stress is the result of mismatch between a person and environment and the perceived inability to cope with the constraints or demands encountered. 5. Role stagnation arises when the bank officers experience lack of development and growth in their role. A strong social support system provides a place to share problems and put them in perspective. threat or challenge when the outcome of the event is both important and uncertain. Role erosion is experienced by the bank officers when some of the important functions belong to them are performed by other roles or when the credit for their contributions is given to others. Inter – Role distance (IRD) is experience due to conflict experienced between different Roles played by the bank officers. they feel uncomfortable due to lack of preparedness and keep on clinging on the older and lower role. To make the social support system effective. largely because individuals experience increased job complexity and increased economic pressures. when their special knowledge and skills remain unutilized or when there is a conflict between the image. Environmental and internal conditions that lie beyond an individual's control are called environmental stressors. 3. 2. Stress has become increasingly common in organizations. Personal inadequacy arises from lack of knowledge. the person must perceive that the support system enhances self-esteem.made upon it. Stress is caused by internal or external demand that upset the balance of an individual and affect physical and psychological well being.

The officers may be faced with conflicting demands. the degree to which they are consulted on issues affecting the organization. Lack of Participation One of the factors of the workplace and the organization’s modus operandi that is related to stress is the degree of participation. A variety of role-related problems may arise for officers who lack these feelings are discussed below: a) Role Ambiguity When aspects of the job are unclear. the priorities of the organization and generally what is expected from them. books. This is the “damned if you do. poor lighting. escapist drinking. Bank officers should know the criteria for career advancement. and feelings of self-esteem. relationships with fellow officers.9. documents and information required for performing the role are inadequately provided1”. frustration and stress are likely to develop among banking professionals. poor ventilation and over crowded. “Resource inadequacy is experience by the role occupant when the external resources like human resource. job-related feelings of threat. Role ambiguity is experienced when the officers is not clear about expectations from their role 10. Role Problems A clear sense of role in an organization and sense that “play the part” are important in keeping stress at a minimum. depression. machines. 1. called motivational factors can affect job satisfaction. 2. materials. equipments. Such a situation is a factor in occupational stress. b) Role Conflict Sometimes staff get caught in a bind when two officers each expect something different. the amount of recognition for jobs done well. The Work Environment 1 120 . infrastructure. and the amount of encouragement to take responsibility. buildings. intention to leave the job and absenteeism. Job Dissatisfaction The factors that are typically thought related to dissatisfaction on the job are salary and conditions of the workplace like noise. damned if you don’t” dilemma. 3. These factors include the degree of stimulating tasks involved. and their involvement in establishing rules of behavior at work have proven to be related to job satisfaction. they might still be dissatisfied. However. tools. 4. Others have found that non participation is related to overall poor physical health. low motivation to work. A class of work-related factors. Officer’s perceptions of the degree of participation in the decision-making process. dissatisfaction with life. even if officers were paid well and worked in hygienic conditions.

Burnout It is a syndrome of physical and emotional exhaustion. Stress on the job cost includes salaries for sick days. self-medication and psychological changes such as depression or a “trapped” feeling. cost of hospitalization and outpatient care. may break down when stressed on the job. or die and have to be replaced by other workers who need training. This was primarily because specialists in the health and medical sciences researched the topic. and headaches. Physiological Symptoms: A number of medical illnesses have a stress-related component. For example. begin abusing alcohol and other drugs. Individual level: In general. diminishing job performance. Behavioural symptoms. dust noise levels. An interesting source that might want to consult if interested in their aspect of occupational stress is a book entitled “Office Work Can Be Dangerous to Your Health”. unpleasant odors and other stressful factors can lead to illness or disease. Dangerous tasks or work settings. Officers trained over a long period of time. a. 16.7 Identification of stress at various levels 1. and costs related to decreased productivity. miss days of work. There is no clear evidence that stress is a direct causal agent. burnout. peptic ulcers. increased overtime and no vacations. high noise levels. Physiological symptoms. Other stress related factors are catching the eyes of management of banks. backaches. 5. and an exhausted rundown feeling. Psychological symptoms and c. companies are now offering flextime allowing workers to schedule themselves more consistent with their lifestyles and priorities. social withdrawal. In the early stages. the intense stress of public speaking may result in a 121 . such as the unique Japanese phenomenon of "Karoshi" (death by overwork). That will help recruiting. They may make poor decisions. increased physical complaints. overcooling. Most of the early concern with stress was directed at physiological symptoms. toxic chemicals. stress may play an indirect role in the progression of disease. dust. skipping rest and food breaks. an extreme preoccupation with work may result in acute individual distress. depression and burnout result in decline in efficiency. individual distress usually takes one of the three basic forms: a. fatigue. For example. Psychological Symptoms: The most common types of psychological distress are depression. The most significant medical illnesses of this form are heart disease and strokes. diminished interest in work. For example.Some places of work include hazards that can create stress. The effects of occupational stress have attracted the attention of business. and psychogenesis disorders. psycho physiological and behavioral components. in particular since more than 80 percent of the young men between the ages of twenty and thirty-nine having a work schedule that allows them to spend time with families is more important than doing challenging work or earning a high salary. However. b. Psychogenesis disorders are physical disorders with a genesis (beginning) in the psyche (mind). at great cost. It is an adverse work stress reaction with psychological. b. The link between stress and particular physiological symptoms is not clear. Symptoms include diminished sense of humor.

an unresolved problem at work may continue to preoccupy or distract an employee driving home and result in the employee having an automobile accident. Performance decrements: Performance decrements are the costs resulting from poor quality or low quality of production. minor setbacks and stressors won't bother you so much. increased smoking or consumption of alcohol. rapid speech. both on and off the job. iii. Visualize yourself achieving a goal. Just pick areas of your life you'd like to improve upon and use affirmations to help "program" your mind for success. Affirmations simply give you the power to see beyond negatives. Behaviorally related stress symptoms include changes in productivity. turn down the lights and clear your mind. such as low morale. dissatisfaction.Of all the ways to reduce your stress levels.Even if you are unable to learn how to practice deep meditation. and accidents. 122 . Learn how to meditate . Adopt a positive attitude . this might be the easiest to employ. c. Ways to reduce the stress level in the working environment i. These three forms of individual distress cause a burden of personal suffering. strikes and work stoppages and turnover.psychogenesis speech disorder. Compensation awards: Compensation awards are a third organizational cost resulting from court awards for job distress. grievances and unscheduled machine downtime and repair.Learning to become a more positive. visualize success and make it happen. ii. absence and turnover as well as changes in eating habits. Use positive affirmations . breakdowns in communication and disruption of working relationships. Repeating the same positive mantra can have an impact by helping you see the possibilities. Accidents. are another behavioural form of distress that can sometimes be traced to work-related stressors. Participation problems: Participation problems are the costs associated with absenteeism. optimistic person can have a huge impact on how stress impacts a person. Just go to a relaxing place. the person is under so much stress that the mind literally will not allow speech to occur. 9. enjoying a vacation or doing something you really enjoy. substance abuse of various kinds. tardiness. moments of quiet reflection throughout the day can ground you and help reduce stress. For example. These problems include violence. b. Organizational level: The University of Michigan studies on organizational stress identified a variety of indirect costs of mismanaged stress for the organization. Behavioral Symptoms: Behavioral problems are the third form of individual distress. c. When you view the world around you in a positive light and learn to become more optimistic. fidgeting and sleep disorders. that is. The problems caused by organizational distress are: a.

Shooting for a good seven to eight hours a night can impact your reaction to stress and help you deal with negative issues better.10 SOME USEFUL BOOKS 123 . To reduce its effects. running. received. This can refocus your mind and provide you with a positive boost against stress. organized and interpreted to make it meaningful to you.Physical activity is one of the best ways to combat stress in your life effectively. Even consider taking little cat naps during the day to reduce stress and recharge batteries. try to eat right most of the time.A lack of sleep can do terrible things to stress levels. better describes one's ultimate experience of the world and typically involves further processing of sensory input. Do things you love .Pursing hobbies and enjoyable interests is a great way to reduce stress and increase enjoyment in life. on the other hand. sensation and perception are virtually impossible to separate. This doesn't mean you have to become a health food fun. gardening. regular activity can reduce stress levels and help ground your mind in the positives. 16. It is an easy way to employ one of the ways to reduce your stress levels. because they are part of one continuous process.Diet can play a very big role in how stress impacts the body. playing ball. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment. consider picking up one that is of interest to you. Should you have no interest in a hobby at all. Get rest . vi. v. Find something you enjoy doing and do it. but a basic well balanced diet can make a different. In practice. If you don't have a hobby already. Eat right .9 KEY WORDS Perceptual process Perception Image Figure ground principle Conflict Stress management 16.iv. walking. 16. Whether it's swimming. vii. Exercise . Just make a little bit of time for the things that really matter to you. Perhaps it's just relaxing in your backyard or playing games with family. boxing or something entirely different.8. Perception is the process through which the information from outside environment is selected. LET US SUM UP Perception. Ten to 20 minutes of shut eye can make a big difference and refocus your mind on positive pursuits. consider doing something else you love.

Explain stress management and its role in human life. management tasks and responsibilities Truman Talley books . Peter F. Explain the factors that influence the perception Explain the types of perception. 4. 124 . Fundamental of management. Tata McGraw Hill. Stephen P.1. New York 2. New Delhi 16. Pearson 2003 3. 2.Robbins.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Koontz and Weirich. 3. Discuss about the various ways of reducing the stress in life style. Define perception and explain the perceptual process. fundamental of management.Drucker. 5.

arising from outside the company. It has become an inescapable fact of life. 1. Change is inevitable in a progressive culture. and demands that organizations take greater responsibility for their impact on the environment. legal and political and technological dimensions. Modern managers have the responsibility to device the management practices to meet the new challenges and make use of the opportunities for the growth of the organization. the organization's success often rides on its ability and willingness to change as well. Organizations cannot completely buffer themselves from this environmental instability. Many external changes bombard the modern organizations and make change inevitable. 7. An organization lacking adaptability to change has no future. In recent years. External Forces: When the organization's general or task environment changes. is accelerating in our society.1 Change Management Content 1. The general environment has social. 8. whereas others are internal arising from sources within the organization. "We live in the midst of constant change" has become a well-worn but relevant cliché. These forces are discussed below: 125 . scientific. sources of resistance to change. Change in fact. Organization must forge ahead on these forces to survive. 4. 3. Pressures for change are created from both inside and outside the organization.6. Change is induced by the internal and external forces. Adaptability to change is a necessary quality of good management. Any of these can introduce the need for change.  Why is organizational change so important? From outside and inside the organization a variety of forces press for change. Modern manager is change-conscious and operating in the constantly changing environment. Meeting this challenge of change is the primary responsibility of management. 5. a fundamental aspect of historical evolution. technological and institutional areas. Revolutions are taking place in political. economic. 2. Unit.  Introduction There is nothing permanent except change. Aims and objectives Introduction Organizational change Sources of resistance to changes Let us sum up Key words Answer the following Suggested readings  Aims and objectives The main objectives of the lesson is to understand the basic concepts like organizational change. the globalization of competition. Some of these are external. far-reaching forces for change have included developments in information technology. 6.

These expectations may be informal or they may come in the form of increased legal requirements. Globalization. d) Workforce Diversity: Related to globalization is the challenge of workforce diversity. leads to flatter structures. for an organization. the innovation process promotes associated changes in work relationships and organizational structures. They will be fast on their feet. capable of developing new products rapidly and getting them to market quickly. The power players in the global market are the multinational and trans-national organizations. These challenges are forces that place pressures to change on organizations.a) Technological Change: Rapid technological innovation is a major force for change in organizations. they must be rather dynamic and viable so that they survive. and those who fail to keep pace can quickly fall behind. f) Internal Forces: Besides reacting to or anticipating changes on the outside. This has led companies to think globally. environment and society. e) Managing Ethical Behaviour: Employees face ethical dilemmas in their daily work lives. as the majority of new workers will be female. Sophisticated information technology is also making organizations more responsive. l The workforce will be more culturally diverse than ever (part of this is attributable to globalization). For example. Successful organizations will be the ones that can change in response to the competition. It requires not only structural changes but also changes in the minds of employees. The need to manage ethical behaviour has brought about several changes in organizations. Workforce diversity is a powerful force for change in organization. Instead. Most centre on the idea that an organization must create a culture that encourages ethical behaviour. Technological innovations bring about profound change because they are not just changes in the way work is performed. The team approach adopted by many organizations. b) Globalization: The global economy means competitors are likely to come from across the ocean. decentralized decision making and more open communication between leaders and team members. Ethical behaviour is expected in relationships with customers. means rethinking the most efficient ways to use resources. Handy "the rate of technological changes is greater today than any time in the past and technological changes are responsible for changing the nature of jobs performed at all levels in the organization". It is perhaps the greatest factor that organizations reckon with. Pressures for change that originate inside the 126 . According to C. Society expects organizations to maintain ethical behaviour both internally and in relationships with other organizations. There are no mental distinctions between domestic and foreign operations. an organization may change because someone on the inside thinks a new way of doing things will be beneficial or even necessary. Many new legal provisions in the corporate sector get introduced every time that affects the organizations. Organizations cannot afford to be rigid and inflexible in the wake of environmental pressures. disseminate and gather information and develop people. c) Social and Political Changes: A firm's fate is also influenced by such environmental pressures as social and political changes. the substitution of computer control for direct supervision is resulting in wider spans of control for managers and flatter organizations. The demographic trends contributing to workforce diversity are l The workforce will see increased participation form females.

The resignation of a key decision maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization. This symptom is common in organizations that have experienced layoffs. unmotivated. No two managers have the same styles. Some companies react by instituting layoffs and massive cost cutting programmes. j) Deficiencies in the Existing System: Another internal pressure for organizational change is he loopholes in the system. 127 . These internal forces are discussed below: g) Changes in Managerial Personnel: One of the most frequent reasons for major changes in an organization is the change of executives at the top. Changes in the managerial personnel are thus a constant pressure for change. Employees' desire for higher wage payment. A company that experiences losses is undoubtedly motivated to do something about it. The goals of planned change are: First it seeks to improve the ability of the organization to adapt to changes in its environment. and dissatisfied is a symptom that must be addressed. goal-oriented activity. Managerial behaviour is always selective so that a newly appointed manager might favour different organizational design. Employees' demand for effective organizational mechanism. There are two basic forms of change in organizations: Planned change and unplanned change. These forces may be:    Employees' desire to share in decision-making. Strikes or walkouts may lead management to change the wage structure. Adaptiveness. k) Crisis: A crisis may also stimulate change in an organization. It is an intentional. (a) Planned Change: Planned change is a change resulting from a deliberate decision to alter the organization. A workforce that seems lethargic. Workers who have escaped a layoff may find it hard to continue to be productive. objectives procedures and policies than a predecessor. lack of uniformity in politics. lack of coordination between departments. They may fear that they will be laid off as well and may feel insecure in their jobs. non-cooperation between line and staff etc. These loopholes may be unmanageable spans of control. Employees.organization are generally recognizable in the form of signals indicating that something needs to be altered. i) Changes in Work Climate: Changes in the work climate at an organization can also stimulate change. Higher employees’ expectation for satisfying jobs and work environment. whereas others view the loss as symptomatic of an underlying problem. h) Declining Effectiveness: Declining effectiveness is a pressure to change. flexibility and responsiveness are terms used to describe the organizations that will succeed in two basic forms of change in organizations that will succeed in meeting the competitive challenges that businesses face. Change has become the norm in most organizations. Expectations: Changes in employees expectations can also trigger change in organizations. and seek out the cause of the problem. skills or managerial philosophies.

128 . Individual Resistance: One aspect of mankind that has remained more or less constant is his innate resistance to change. People often resist change in a rational response based on self-interest. Individual sources of resistance to change reside in basic human characteristics such as perceptions. (b) Fear of the Unknown: Change often bring with it substantial uncertainty. particularly when an advanced technology is introduced. may resist the change simply because it introduces ambiguity into what was once a comfortable situation for them. personalities and needs. Fear of reduced work hours and consequently less pay. Resistance to change doesn’t necessarily surface in standardized ways. It is easiest for management to deal with resistance when it is overt and immediate. This is especially a problem when there has been a lack of communication about the change. The greater challenge is managing resistance that is implicit or deferred. threaten the autonomy that sales representatives previously enjoyed. For example. Unplanned change is imposed on the organization and is often unforeseen. The following are the reasons:(a) Economic Reasons: The economic reasons to fear change usually focus on one or more of the following: ear of technological unemployment. Changes in job tasks or established work routines can also arouse economic fears if people are concerned they won't be able to perform the new tasks or routines to their previous standards. especially when pay is closely tied to productivity. Fear of demotion and thus reduced wages. some employees may fear losing their jobs. (d) Security: People with a high need for security are likely to resist change because it threatens their feeling of safety. Another common fear is that changes may diminish the positive qualities the individual enjoys in the job. (b) Unplanned Change: Not all change is planned. 1. Employees may also fear losing their status because of a change. Employees facing a technological change. Resistance can be overt. immediate. or deferred. Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of organizations. The sources of resistance to change can be categorized into two sources: individual and organizational. computerizing the customer service positions. Individuals resist change because they attach great preference to maintain status quo. implicit. Examples of unplanned changes are changes in government regulations and changes in the economy. (c) Fear of Loss: When a change is impending. 4. Fear of speed-up and reduced incentive wages. such as the introduction of a new computer system.Second. it seeks to change the behaviour of its employees. As the manager contemplates and initiates change in the organization one phenomenon that is quite likely to emerge anytime in the change process is the resistance to change.

and procedures for employees to follow. They actively resist change.(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the status quo. Thus when social relationships develop. If an organization wishes to introduce change then difficulty arises because of these sunk costs. 129 . When confronted with change. Some of the organizational resistances are explained below: 1) Resource Constraints: Resources are major constraints for many organizations. 2) Structural Inertia: Some organizational structures have in-built mechanism for resistance to change. 4) Politics: Organizational change may also shift the existing balance of power in organization. (f) Peer Pressure: Individual employees may be prepared to accept change but refuse to accept it for the sake of the group. people try to maintain them and fight social displacement by resisting change. 3) Sunk Costs: Some organizations invest a huge amount of capital in fixed assets. rules. this structural inertia acts as a counterbalance to sustain stability. in a bureaucratic structure where jobs are narrowly defined. Further. by their very nature are conservative. those groups in organization that control sizable resources often see change as a threat. Whenever change is unwilling to the peers. they force the individuals who want to accept change to resist change. 5) Threat to established power relationships: Any redistribution of decision-making authority can threaten long established power relationships within the organization. Change may pose disturbance to the existing comforts of status quo. (g) Disruption of Interpersonal Relationships: Employees may resist change that threatens to limit meaningful interpersonal relationships on the job. lines of authority are clearly spelled out change would be difficult. The necessary financial. 2. The people who are hired into an organization are chose for fit. Managers may therefore resist change that introduces participative decision making because they feel threatened. we are creatures of habit. Organizational Resistance: Organizations. They tend to be content with the way things are. material and human resources may not be available to the organization to make the needed changes. they are then shaped and directed to behave in certain ways. When an organization is confronted with change. Change may also result in breaking up of work groups. (h) Social Displacement: Introduction of change often results in disturbance of the existing social relationships. Individuals or groups who hold power under the current arrangement may be threatened with losing these political advantages in the advent of change. As human beings. Change means they will have to find new ways of managing them and their environment – the ways that might not be successful as those currently used. This is so because formalization provides job descriptions. this tendency to respond in our accustomed ways becomes a source of resistance. For example.

Some tactics have been suggested for sue in dealing with resistance to change. c) Empathy and Support: Another strategy for managing resistance is providing empathy and support to employees who have trouble dealing with the change. if we look at any organization closely we would probably find that far more changes are accepted than resisted. Prior to making a change. and where groups have considerable power to resist. The details of the change should be provided. In fact. negotiation and agreements are helpful. those opposed can be brought into the decision process. withholding undesirable information and creating false rumours to get employees to accept a 130 . if union norms dictate resistance any unilateral change made by management. b) Participation: It is difficult for individuals to resist a change decision in which they participated. Employees A B C want to know why change is needed. Educating employees on new work procedures is often helpful. Twisting and distorting facts to make them appear more attractive. Active listening is an excellent tool for identifying the reasons behind resistance and for uncovering fears. The contemporary view holds that resistance is simply a form of feedback and that this feedback can be sued very productively to manage the change process. If there is no good reason for it. The traditional view of resistance to change treated it as something to be overcome. Where some persons in a group clearly lose out in a change. It is also beneficial to inform people about the potential consequences of the change. and many organizational attempts to reduce the resistance have only served to intensify it. 7) Group Inertia: Even if individuals want to change their behaviour. Negotiation as a tactic may be necessary when resistance comes from a powerful source. When employees are allowed to participate. but equally important is the rationale behind the change. why should they favour the change? Providing accurate and timely information about the change can help prevent unfounded fears and potentially damaging rumors from developing. group norms may act as a constraint. It becomes relatively easy to avoid major resistance through negotiation. e) Manipulation and cooperation: Manipulation refers to covert influence attempts. it must be noted that not all changes are resisted. an individual member of the union who may otherwise be willing to accept the changes may resist it. Therefore specialist usually resists change. For example. they are more committed to the change. d) Negotiation: Another way to deal with potential resistance to change is to exchange something of value for a lessening of the resistance. Although resistance to change is a common phenomenon in organizations. An expression of concerns about the change can provide important feedback that managers can use to improve the change process. One key to managing resistance is to plan for it and to be ready with a variety of strategies for using the resistance as feedback and helping employees negotiate the transition. a) Education and Communication: Communication about impending change is essential if employees are to adjust effectively.6) Threat to expertise: Change in organizational pattern may threaten the expertise of specialized groups.

Adaptability to change is a necessary quality of good management. Koontz and Weirich. is accelerating in our society. Answer the following  What are the major reasons individuals resist change? How can organizations deal with resistance?  What are the major external and internal forces for change in organizations?  What is a change agent? Who plays this role?  What can change agents affect?  Why is participation considered such an effective technique for lessening resistance to change? 8. Tata McGraw Hill. Let us sum up Change in fact. Pearson 2003 9. 5. It involves giving individuals a desirable role in design or implementation of change. Peter F. fundamental of management. 6. Suggested readings 7. New Delhi 131 .Drucker.Robbins. Stephen P. Meeting this challenge of change is the primary responsibility of management. managers should try to institute changes only when they make strategic sense. Fundamental of management. An organization lacking adaptability to change has no future. Practically everything a manager does is in some way concerned with implementing change. management tasks and responsibilities Truman Talley books . Adaptability to change is a necessary quality of good management practice. Key words a) Managing Change b) Change Agents c) Resistance to Change 7. Although organizational changes are important.change are all examples of manipulation. New York 8.

2. Actors organizational climate 5. Introduction: After discussing the various aspects of human beings. All organizational theoreticians and researchers unanimously agree that a sound climate is extremely important for the ultimate achievement of organizational goals. To lessen conflict.Unit: 2 ORGANISATIONAL CLIMATE Content 1. Therefore. overall organizational situations and characteristics would affect the effectiveness of these behaviors. What is the optimal environment for the individual. effects of climate and the measurement of O. 2. Aims and objectives The main objectives of the lesson are to understand the basic concepts of organizational climate. viz. Individuals in organization are faced with several questions as he or she perceives the setting in which one is working. Such situations and characteristics are contained in organizational climate and culture. Aims and objectives Introduction Concepts of organizational climate 4. 3. use of power and authority. Concepts of organizational climate: Subject. People with a strong need to be independent find that most organizations do not provide them with a suitable organizational climate. Even the rewards from the organization • may induce conflict within the individual if he feels that someone else got more than he did. Key words 9. lea7dership. Effects of climate 6. conflicts between individuals and organization are inevitable. the organization must provide the person with a climate in which one can unfold and develop. Individual personalities and job 132 . communication. Measurement of Organizational Climate 7. Suggested readings 1. group behavior. actors of organization. 3. There is no simple relationship between job satisfaction and job performance.C. conflict and control occur in organizational context. Let us sum up 8. Answer the following 10. A concept that management can ill afford to ignore is "organizational climate". you should learn the basic features of organizational climate. Various interactive behaviors discussed in different lessons of this "organizational behavior". Therefore. interpersonal behavior. understanding of organizational climate and culture helps in better management of people in the organization.

From this point of view.requirements interact to produce a climate that can be significant to both the individual and the organization.compbell define organizational climate as: "A set of attributes specific to a particular organization that may be induced from the way that organization deals with its members and its environment. Based on these characteristics Johnp. Climate can be defined as "Those characteristics that distinguish the organization from other organizations. are relatively enduring over time. 3) There is an intervening psychological process in an organizational model. many kind of organizational factors are relevant contributors to it. where the point of intervention is between the situation and individual. the perception of people regarding the functioning of that factor is important. Forehand and B. let us discuss the important actors to be considered in organizational climate.perception of the extent of organizational constraints. Actors organizational climate This includes the following six factors. 4." The "Psychological Climate" is the individual perception of a situation. The crucial elements are the individual's perceptions of the relevant stimuli constraints and reinforcement contingencies that govern human behavior. Gilmer feel that climate consists of a set of characteristics that describe an organizations. distinguish it from other organizations. Organizational climate is situational determined process.. For the individual members with in the organization. where the climate variables are causative factors for performance and attitudes. Organization structure . 5) Psychological climate represents a set of higher order abstractions. the following five aspects: 1) Ppsychological climate is basically perceptual. and influence the behavior of people in it. 2) Psychological climate is based upon interaction between situational and individual characteristics. inter relationships among more specific perceptions of the work environmentQ. 4) Psychological climate is not completely a situational specific construct. regulations.V. The psychological climate includes. climate takes the form of a set of attitudes and expectancies which describe the organization in terms if both static characteristics (such as degree of autonomy) and behavior outcome and outcome contingencies".A.H. red-tape 133 . that influence the behaviors of people in the organization and are relatively enduring overtime. Thus. which affect organizational climate 1. which reflect. rules. When organizational climate is defined in this way.

Managerial structure 3.setting of objectives. speed and cotrol. planning and feedback Opportunities for exercising individual initiative 2. Concern for new employees 4. However size alone cannot determine the job satisfaction. new and different things are required. SIZE. Taguiri has also identified the following five factors in organizational climate on the basis of information provided by managers.degree of confidence that the climate can tolerate differing opinions. Effects of climate 134 . Rewards . The size may lead to the belief that the organization is strong and powerful just because it is big where as the smaller organizations are flexible in adapting to changed conditions. As the business grows the old face to face techniques are no longer adequate. with premium-on precisions. 4. Practices relating to providing a sense of direction/ purpose to their jobs . 3.2. 1. The individual is treated impersonally in the larger organizations.feeling related to being conflict of adequate and appropriate rewards.feelings of general good fellowship and helpfulness in the work settings and 6.perceptions of the degree of challenge and risk in the work situation 5. Working with co-operative and pleasant people and 4. General satisfaction R. Managerial support 2. Agent dependence and 6. 5. Such things as the kinds of skill and the location of pools of skill within the organization. Working with a superior who is highly competitive and competence. Tolerance and conflict .feelings or autonomy of being one's own boss 3. the decentralization of authorities and the development of new kinds of communication networks may change radically as the company grows. Individual responsibility . Risk and risk taking . Being with a profit minded and sales oriented company. Psychologically the size of the organization may be one of the factors affecting the organizational climate. SHAPE AND CONTROL The chief merit of a large organization be it an industrial governmental or research beurocracy is its technical efficiency. 1. Warmth and support . Inter-agency conflict 5.

warmth and support and leadership. He noticed that long term employees deemed the climate flexible. Conflicts between individual and organization is inevitable. there is a direct influence that affect all or almost all members of the company or some submit. A modification of the climate also offers good way to observe the effects. rewards. This perception to a large extent is governed by personality factors and how they are related to satisfaction of one's needs. which exists when a climate has a certain effect on behaviour of some people. There are many questionnaire/ containing usually fewer the twenty five items (questions). and possibly no effect at all on still others. a different effect on others. if perceptions are measured.People react to climate and climatic changes. 6. and by the things that motivate us both from within and from without. then different groups may have different perceptions. Organizations themselves place constraints on people through rules and regulations. responsibility standards. People with strong needs to be independent find that most organizations do not provide a proper setting. It is possible that the organization may have more than one climate. The second kind of effect is termed interactive influence. It is not uncommon for the ambitious person to find himself in a climate that puts restraints upon freedom. You won't get ahead in this organization unless you stick your neck out and take a change now and then : Almost all questionnaires use slightly different terminology but all are very closely related in terms of "concept" and "dimensions". An example of the type of questions and the scale that might be used is presented as under : Example of two questionnaire items designed to measure the "risk" property of organizational climate. For instance. Measurement of Organizational Climate Trying to measure organizational climate is an attempt to capture the essence.The psychological climates of organization's change sometimes for good and sometimes for bad.Russel Johnston in his research -found two climates in a study of professionals in a small consulting firm. supportive. To kinds of influence of climate ' on individuals may be distinguished. and the goals of members of the organization sometimes are in conflict. the personal goals of leaders. Generally. Usually the questions are answered on some form of a scale which may vary from one point to six points or from one to ten point scale. Some behaviours never occur because the stimuli that would elicit them are never presented. are given to employees to respond. climate has on the people in organization. Decision making in their organization is too cautious for maximum effectiveness: 2. the dimensions studied will be the conformity. routine practical traits. organizational clarity. 1. H. organizations sometimes change because individual's change. The numerical scale is normally accompanied by certain descriptive terms for each point on the scale. Organizational goals. non135 . order and pattern of an organization or submit. First. narrowing his alternatives of action. The importance of motivating and supervising people is paramount in understanding organization climate. environment.

communication upward and downward feeling of useful work. The. amount of trust. They frequently want a challenging work that is intrinsically satisfying.making process. Employees feel that the climate is favorable where they are doing something useful that provides a sense of personal worth. The organizational climate with premium on certain degree of freedom is appropriate for him. structure and bureaucracy. each type of man requires a particular 136 . Climate is a system's concept that reflects the entire life style of an organization. it has been found that climates also can differ with respect to hierarchy and to the degree of environmental uncertainty. Elements of a Favorable Climate Climate can range along a continuous line from favorable to neutral to unfavorable. For social man positive social relations and interactions are a must.In some other studies. Such a classification is different from an earlier classification of man in the context of decision . man seeks an affinity with fellow employees. accomplishment and meaning in what he does. concerned with integrating individual with organizational goals and generally organize. motivation and hence requires different organizational climate. keep and motivate them. employee involvement and participation. Through the rigor of research varies significantly among different studies of organizational climate. Developing a Sound Organizational Climate A sound organizational climate is a long term proposition. Both employers and employees want a more favorable climate because of its benefits. measurable gains in performance are likely to occur. within his work environment. strongly based on hierarchy and authority more impersonal and emphasizing organizational goals. The economic man is basically motivated by money and long-range economic security and hence the reliance on economic factors to attract. opportunity reasonable controls. The basis of classification of man in to three categories derives from the fact each class of men has different set of thinking. social and self-fulfilling. They want to fell that the organization really cares about their needs and problems. The Total Man concept The organizational climate is contingent on the assumptions of the nature of people in general. there is enough evidence to warrant practical interrupt in the application of the concept to organizations. Employees want to be listened to and treated as if they have value as individuals. Whereas newer employees saw as rigid. The self-fulfilling man seeks achievement.authoritarians. When the life style can be improved. fair rewards. Thus. procedural. such as better performance and satisfaction-Typical elements that create favorable climate are quality of leadership. In dealing with people the total man concept should be take which is essentially a combination of three different concepts about the nature of human beings-economic. climate of each organization is set through an organizational behaviour system. The creation of a climate where happy family atmosphere prevails is appropriate for him. adaptive in its environment. responsibility.

8. following prescriptions can be taken as features of a sound organizational climate : 1. Let us sum up Individuals in organization are faced with several questions as he or she perceives the setting in which one is working. Encouragement for innovation and freedom to act up on ideas. 6. The individual differences suggests that there cannot be any all -purpose organisational climate. Absence of political maneuvering for organizational positions and other personal gains. 'Linking rewards with performance rather than linking with other considerations such as blood relationship. Though there are variations in practices.climate. 3. Features of a sound organizational Climate The importance must be given to what motivates job performance in general and building an overall climate conductive to motivation. High value assigned to interpersonal ability and tolerance of individual differences 7. Key words     Managerial support Managerial structure Concern for new employees Inter-agency conflict 137 . What is the optimal environment for the individual. High standards of moral integrity in dealing with both internal and external matters. managers must understand their people in the organization. Encouragement for participation and group decision and its implementation. In order to build up a sound organizational climate. 5. 7. 4. a keen insight into the individual in particular and tailoring a personnel approach to leadership and job design to which the man will respond with commitment. conflicts between individuals and organization are inevitable. High standards’ of excellence in every area of operation and evaluation. 2. friendship and society background . People with a strong need to be independent find that most organizations do not provide them with a suitable organizational climate.

Suggested Readings 55. how? If not why? 4) Explain how to change climate whenever necessary? 10. Peter F. fundamental of management. 3) Is the climate subject to measurement? If so. Pearson 2003 57. management tasks and responsibilities Truman Talley books . Questions and answer 1) What do you mean by "Organizational Climate"? What are the factors affecting climate of work in an organization? 2) How does organizational climate influence the behavior of its member? Discuss the ways in which a sound organizational climate may be created. New York 56. Fundamental of management. New Delhi 138 .Drucker.9. Stephen P. Koontz and Weirich. Tata McGraw Hill.Robbins.

Conflict is associated with negative images. conflict between individuals. when those involved recognize the existence of differing points of view. such as unions getting angry and violent. but some conflict can improve effectiveness. Conflict Although conflict can be destructive. Interpersonal conflict is due to differences in goals. 2. In competition. Conflict is a process in which people disagree over significant issues. Introduction Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. When conflict passes a certain point. Inter-group conflict occurs when groups within and outside the organization disagree on various issues. with conflict. thereby creating friction between parties. it hurts an organization. and feelings. perceptions. values.Unit-3 Management of conflict Content a) Aims and objectives b) Introduction c) Conflict d) Types and level of conflict e) Behavioral aspects and conflict Conflict between individual and groups Types of conflict situations f) Let us sum up g) Key words h) Answer the following i) Suggested readings 1. Aims and objectives The main objective of the lesson is to understand the basic concepts relating to types and level of conflict. and styles between two or more people who are required to 139 . rivalry between individuals or groups over an outcome that both seek. 4. organizational conflict is inevitable. Types and levels of Conflict There are four types of conflict. Competition. Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Conflict can exist when people have opposing interests. is not the same as conflict. it can also be beneficial when used as a source of renewal and creativity. people can cooperate so that no one wins or loses. and types of conflict. and when opponents try to prevent each other from accomplishing their goals. Given the different goals of stakeholders. when the disagreement is ongoing. there must be a winner and a loser. 3.

Managers spend time bargaining. An organization in decline cannot afford to spend time on decision-making. Group’s battle for their interests. Relationship conflict: Conflict based on interpersonal relationships 3. All stakeholders have a common goal of organizational survival. including people's emotions. having a common enemy or outside competition. dynamic. because it needs a quick response to recover its position. Interpersonal conflict is a person's internal conflict over divergent goals. Task conflict: Conflicts over content and goals of the work 2. Managers need negotiating skills to be effective in today's global. and time-orientation dimensions also affect negotiation. falling prey to inertia. Negotiation It is the process used by two or more parties to reach a mutually agreeable arrangement to exchange goods and services. In contrast.interact. Beyond a certain point. no agreement is reached. Attitudinal methods include having a common enemy. 140 . vertical conflict occurs between groups at different levels of the organization. To stimulate conflict. Negotiators from masculine cultures emphasize assertiveness and independence. rather than making decisions. managers can introduce change. and behaviors. employees want raises. Managers can manage conflict by either preventing or reducing high levels of conflict or stimulating low levels of conflict. To do this. Types of Conflict 1. which can cause them to see negotiation as a competition and spur them to win at all costs. Behavioral methods include enforcing rules. while the attitudinal approach targets the roots of the conflict. Conflict and Negotiation Stakeholders compete for the resources that an organization produces. separating the parties. high or low context. but not all goals are identical. and increasing resources and rewarding cooperation. Horizontal conflict takes place between departments or groups at the same level of the organization. and team-building and organizational development (OD). or create interdependency. managers can apply a behavioral approach or an attitudinal approach. Bargaining issues in negotiation process can be divided into three categories: mandatory. permissive. emotion. clarifying tasks. conflict hurts the organization and causes decline. rotating members. problem-solving approach. Negotiators from cultures comfortable with uncertainty will take a creative. and prohibited. or roles. Intra group conflict occurs within a work group over goals and work procedures. increase task ambiguity. Shareholders want dividends. Process conflict: Conflict over how work get done Manager’s ways to manage conflict. while those from high uncertainty-avoidance cultures will emphasize bureaucratic rules and procedures. The behavioral approach targets the behavior causing the conflict. Culture significantly affects the negotiation process. increasing resources. Power-distance. team oriented business environment. beliefs. values. individuality-collectivism. Inter group conflict can occur at two levels which are horizontal and vertical. and the organization floats along. An organization must manage both cooperation and competition among stakeholders to grow and survive. diverse.

thinking the pie is fixed. This conflict can also arise due to differing viewpoints about various issues. Common mistakes made when negotiating include: Irrational escalation of commitment. For example.Mandatory Bargaining Issues—Fall within the definition of wages. Open subordination is applied when the task outcome is not important but the relationship outcome is. and be willing to rely on expert opinion to reduce the possibility of making mistakes. As another example. When two parties are unable to come to agreement during negotiations. winner's curse. firm competition. be thoroughly prepared. Mediation considers both interpersonal and substantive issues and relies on formal evaluation of positions plus persuasion to bring about a non-binding solution. two Vice-presidents may differ about their viewpoint about which strategic plans to implement. These four strategies are trusting collaboration. 141 . This may also be based upon religion. they may bring in a third party to help resolve the differences. a Vice-President may want to fire some workers to save costs while another Vice-President may have human sensitivity and support other methods of cutting costs. Arbitration. Another aspect of the conflict can be based of emotions. a legally binding process in which the arbitrator imposes a solution. fear or simply dislike due to personality differences. 5. feelings perceptions and values. Behavioral aspects and conflict This conflict can arise by a simple misunderstanding or an error in communication. Prohibited Bargaining Issues—Are statutorily outlawed. and active avoidance. Some families carry on enmity for generations. For example. and other terms and conditions of employment. but neither side may insist that they be bargained over. race or sex. The value based conflicts arise due to different values which may be culturally based. Permissive Bargaining Issues—May be raised. Firm competition is used when the substantive task outcome is important but the relationship outcome is not. and overconfidence. Conciliation and consultation focus on improving interpersonal relations to foster constructive discussion of issues. hours. distrust. a professor may value freedom of teaching methods and close supervision of his techniques may cause conflicts. Active avoidance is useful when neither the task outcome nor the relationship outcome is important. A misunderstood message can create a lot of problems. These feelings may be the feelings of anger. Trusting collaboration is a win-win strategy most appropriate when both the substantive task outcome and the relationship outcome are important. Avoiding these common mistakes requires managers to be aware of the issues. Negotiation Strategies Shows four negotiating strategies based on the importance of the substantive outcome and the importance of the relationship outcome. can be used when all other methods have failed and the conflict must be urgently resolved. open subordination.

“Mutiny on the Bounty” is a classic example of rebellion of crew against the leader. For example. This will create conflict. some people by nature are consistently aggressive an hostile and hence are highly likely to induce conflict. A role is a set of activities associated with a certain position in the organization or in the society. thus causing conflict with the group. even if the command is wrong an in conflict with what others believe in. Thomas and Schmidt have reported that managers spend up to 20% of their time in dealing with conflict situations. 7. Studied conducted by Walton and Dutton showed that people with highly authoritarian nature. Inter-group conflict 5. Conflict within the individual 2. based upon their treatment. thus causing a conflict with the group. some members may not agree with these reasons or may not be able to afford to go on strike. then the person who is carrying out these activities will not behave as others expect him to because his role is not clearly defined. For example. A hospital or a medical clinic employing a number of physicians with overlapping specialties might cause conflict due to role ambiguity. specially between this individual and those people who depend upon his activities. There are five basic types of conflicts. Some waitress who may be overlay polite and efficient may feel she deserves more. Conflict between individual and groups The individual may want to remain within the group for social needs but may disagree with the group methods. Such conflicts can be reduced 142 . These are 1. The conflict among the armed forces is taken so seriously that the army must obey their commander. Types of conflict situations The management must survey the situation to decide whether to stimulate conflict or to resolve it. A manager may take disciplinary action against a member of the group causing conflict which may result in reduced productivity. it is very important that managers understand the type of conflict that they have to deal with so that they can device some standardized techniques in dealing with common characteristics of conflicts in each type or category. Interpersonal Conflict 3. Similarly. in home restaurants all tips are shared by all waiters and waitresses. highly dogmatic people and people with low self-esteem are more likely to induce conflict. This conflict may also be between the manager and his subordinates as a group or between the leader and the led. According to Kahn.The personality of an individual may in itself be a cause of conflict. Hence. 6. if these work activities are ill defined. Inter-organizational conflict Structural aspects and causes of conflict 1) Role ambiguity. Conflict between the individual and the group 4. if a group is going on strike for some reason.

Answer the following 9. fundamental of management. c. b. organizational conflict is inevitable. Explain the different types of conflict.Robbins. 2) Design of work-flow. If they do not coordinate their activities well. New Delhi 143 . Similarly. The role conflict occurs when two or more persons have different and sometimes opposing expectations of a given individual. What is meant by conflict? 10. but does not inform the police. but some conflict can improve effectiveness. there be confusion and conflict. Given the different goals of stakeholders. 8. A poorly designed workflow and uncoordinated activities between the cook and the waiter would create conflict and problems. Pearson 2003 12. Key words a. Suggested readings 10. Similarly. These are primarily intergroup problems and conflicts which are the outcomes of poorly designed work-flow structure and poorly planned coordination retirements.by redefining an clarifying roles and their interdependencies. Koontz and Weirich. For example. or a police officer may be invited to his brother's wedding party where the guests use drugs which is against the law etc. Fundamental of management. an architect may be expected to produce creative designs while on the other hand. Let us sum up Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Conflict within the individual Interpersonal Conflict Conflict between the individual and the group Inter-group conflict 2. In addition to role ambiguity. such as unions getting angry and violent.Drucker. For example a father may know that his son has committed a crime. it hurts an organization. specially where the tasks are interdependent. What do you understand by Behavioral aspects and conflict? Difference between individual and groups conflict 11. building codes prescribe.” For example. in a restaurant. the doctors and nurses must work together and their tasks are highly interdependent. both roles being in conflict with each other. Peter F. there may be time constraints put upon him. d. there may be a role conflict. Stephen P. New York 11. Conflict is associated with negative images. in a hospital. “organizations are made up of many different groups that must work together towards the accomplishment of common objectives. Tata McGraw Hill. management tasks and responsibilities Truman Talley books . the cook and the waiter depend upon each other for critical information and services. 1. Another type of role conflict is the interrole conflict where an individual plays more than one role simultaneously in his life an the demands of these roles conflict with each other. 11. When conflict passes a certain point. According to Sashkin and Morris.

hospitals. What is more 144 . banks and other organizations. a public sector organizations. Bokaro steel and orient paper mills.ltd. Aims and objectives The main objectives of the lesson is to understand the OD approaches in India. For the adoption of such techniques essentially requires sharing of authority. role of OD. OD in India The general environment -socio-cultural as well as economic in which most of the Indian organizations are working is not very conductive to adopt modern management techniques. 2. free flow of two-way communication change in attitude of managers and owners of the organizations towards latest management techniques and availability of external consultants who can devote considerable time to the organizations under going through the OD programs Some of these problems have been identified in the case of adoption of MBO by Indian organizations. Hindustan Aeronautics ltd.Unit-4 Organizational Developments and interventions Content a) b) c) d) e) f) g) h) i) j) k) Aims and objectives Introduction OD in India OD interventions and techniques Role of Organisation Development : Advantages of OD Limitations of OD Let us sum up Key words Answer the following Suggested readings 1. such as OD or similar ones. Introduction OD program has been successfully implements recently in number of companies in India. such organizations have applied OD techniques with varying Degrees of success. Such detailed accounts of OD efforts are available in published forms. Some detailed accounts of OD efforts are available in published forms. The OD work has been done in diverse type of organizations. State Bank of India. participative management. Hindustan Machine Toole Ltd. and non-industrial organizations like banks. such as industrial organizations of both public and private sectors. Many of the organization have not published their results of OD efforts. Though the results which have been reported have been encouraging there are various problems in the way of OD implementation in Indian organizations. government department etc. Some notable examples are Tata iron and Steel co. 3. This is because most of the OD work has been taken on consultancy basis and it was thought proper not to disclose the identity of the organizations involved. Such efforts are in the context of Hindustan Machine Tools. and the advantages of OD.

and structure. there is a possibility that with the experience gained there. 1. the managerial grid.relevant in the case of OD is the relationship between management and external consultants. These are some of the problems which Indians organizations are currently facing in applying OD. They use these interventions depending up on the need or requirements. Other interventions are job enrichment. Indian organization by and large do not want to share their problems with the external consultants simply because they do not have trust and confidence in consultants either because of their fear of confrontation with such consultants or because of the decline of their power. evaluate the results and develop the means to correct the problems 145 . Such fears are however not based on any concrete proof. This is because the theoretical background which a consultant has backed by the working experience in a particular environment which a manager has. Management wants concrete results and not the reports on a particular problems. hours of work. team building and management by objectives. Attitudes of employees about wage . it may fruitfully be applied in other organizations. Survey Feedback: This intervention provides data and information to the managers. These teams analyze the data find out the problem. Since OD technique is being followed by several organizations. The difficulty if further enhanced by the role of external consultants who have a traditional view of looking at consultants role.In fact the role of external consultants should be extended to the implementation aspect of a particular technique. process consultation. goal setting and planning. OD IMTERVENTIONS / TECHNIQUES : Organization development intervention techniques are the methods created by OD professionals and others. From this point of view the future of OD in India is bright.level. 4. sensitivity training. They believe that the consultants role is to diagnose all problems. The most important interventions are : survey feedback.Moreover the application of any techniques may be facilitated when managers as well as external consultants put efforts together. changes in organizational structure and participative management and quality circles. suggest solution put these in reports and hand over these to management to do what it wants. this is unlikely to work in the case of OD or similar techniques where behavioral change is much more important. This is more closely related with management's expectation from a consultant. industries employing various technologies and a variety of non-industrial organizations. Though this approach may be quite relevant in the case of the technical problems. In face the OD program have shown that the power enhances and is shared widely among participants and a self-imposed discipline emerges in healthy work setting. Single organization or consultants cannot use all the interventions. worming conditions and relations are collected and results are supplied to top executive teams. OD program particularly requires such long associations between managers and consultants. Udai Pareek feels that OD work is currently going on in several industries and non-industrial organizations and non-industrial organizations and as these experiences are shared we shall have a better understanding of the effective use of OD in traditional organizations. public sector industries.

Some people are insensitive to effects or their behavior upon others and their orders up to subordinates. This training develops them as good listeners. The members are encouraged to interact with new members and new individual behaviors. Managerial grid is also called as instrumental laboratory training as it it a structured version of laboratory training. individuals and groups in molding their behavior. ie. Thus grid training is directly related to the leadership styles.puritability .A set of organization-wide goals emerge thereafter. The objectives of laboratory training are to (i) Help people understand themselves better (ii) to create better understanding to others (iii) to gain insight in to the group process and (iv) to develop specific behavioral skills. Most of the people concentrate on what they are going to say rather than what others are saying. 3.identified. The teams are formed with the employees at all level in the organizational hierarchy. to interact in an unstructured environment. which in turn sends them back to the divisions/zones/branches after modifications. management grid basing on the Ohio state study.market share. It consists of individual and group exercises with a view to developing awareness of individual managerial style. Some people never understand why they feel and act as they do and how others feel about them. 146 . coaches and counsels. problem solving procedures etc. It is called Laboratory Training and it is conducted by creating an experimental laboratory situation in which employees are brought together in groups. It is also called "LABORATORY TRAINING". observes their interactions. 2. He feels bad the team with the information collected through observation. Process Consultation : Under this method the process consultant meets the members of department in work teams. interpersonal competence and group effectiveness. these goals are sent to the top management. It also helps the participants to form into informal groups and teams and work more effectively. Managerial Grid: Industrial psychologist Blake and Mouton developed the. 5. problems identification skills. Goal setting and Planning: Each divisions in an organization or branch / zonal office sets the goals or formulates the plans relating to . human resources. productivity etc. 4. The managerial grid identifies range of management behavior based on the different ways that how production/service oriented stages interact with each other. Laboratory training helps such people to understand the impact of their behavior on others. Sensitivity Training: The most commonly used OD intervention is "sensitivity training". From rank and file to the top level. .

Change in organizational structure: Various models or organizational structure. plays key role in organizational improvement. interaction etc. This training is carried out by largely unstructured groups without an agenda. Since OD attempts to bring comprehensive change in the organization. self insight questionnaries. 7.Operand . leader and predetermined goat. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is proper change in the internal environment of the organization in which people work. This technique is designed to improve the ability of the employees to work together as teams. 8. Participative Management and Quality Circles : Participative management and quality circles are extensions to teamwork. association. improve their job satisfaction morale and productivity. interactions and on-going process for interaction. it is quite suitable for improving organizational 147 . Team building is nothing but application of various techniques of sensitivity training to the actual work groups in various departments. The group is given complete freedom in developing their own devices. This technique. 5. Team Building: Most of the laboratory training takes place among the ^employees of the same department. 6. group interactions and increased interpersonal relations. Laboratory techniques are also applied to short term work teams. as a long term strategy for organizational change. like laboratory training. theory session with lectures. Role of Organization Development: Organisation development. These work groups consist of peers and a supervisor.Modus . Job Enrichment: Job enrichment is initiated generally to motivate the employees. they encourage open discussion on various problems and are arriving at a commonly agreed solutions and executions of the agreement by the members themselves. They provide for voluntary formation of groups/teams. 9. background readings. Laboratory training may include role playing. inter group competitive exercises. These employees work together as a team. Further changes may be introduced in organizational structure to provide the scope for team work. particularly matrix organization improves inter group Interaction and relation and relations. aims at improving inter group relations. panel discussions and audio-visual aids in addition to T' groups.of Sensitivity Training: Sensitivity training provides face to face interaction.

2. 3. 6. problem solving and conflict resolution skills. Thus OD can be utilized for the following results in the organization: 1.performance as long term basis. OD provides opportunities for personal growth and development. 4. To increase the openness of communications in all directions . To treat each human being as a complex person with a complex set of needs importance in his work and his life. 4. 8. Advantages of OD: 1. 9. 7. OD provides better management from top to bottom. OD improves communication. horizontally and laterally. 5. To create an environment in which authority of assigned role is augmented by authority based knowledge and skills. OD helps to understand the strength and weakness of the organization. 6. 6. To be more specific OD increases productivity boosts morale through improved utilization of human resources. OD reduces the negative attitude of the people towards the organization 10. 5. To increase the level of enthusiasm and personal satisfaction at all organizational members and levels of the organization. 3. 11. To increase the level of self and group responsibility in planning and its implementation. OD makes the organization competitive and to grow by adapting itself continuously to the changing environment. OD improves the organizational effectiveness. OD efforts to develop a work environment that encourages creativity and openness. 148 . OD improves coordination and teamwork among the members of the group and among the groups.vertically. OD keeps the organization healthy and attracts good people. To place emphasis on humanistic values and goals consist with these values . OD improves commitment and involvement from the members of the organization making the organization successful. 2.

Single organization or consultants cannot use all the interventions. 2. New Delhi 149 .Drucker. It might be emphasized here that. The most important interventions are : survey feedback. goal setting and planning. Fundamental of management. Explain the OD in India. 8. Write in detail about the OD interventions and techniques 3. process consultation. d. 4. b. Explain the role of organization development. These are as follows: 1. 9. Behavioral science itself has various limitations and these are applicable to OD also.7. Peter F. Organization development can be no more powerful than the behavioral science concepts on which it resets. Thus OD cannot be applied without giving due regard for the local circumstances existing within any given organization. Answer the following 1. For example research and development organizations are less responsive to change potential of OD. changes in organizational structure and participative management and quality circles. fundamental of management.Robbins. Koontz and Weirich. c. There are some persons. Tata McGraw Hill. However OD can be treated as a move in the correct direction. sensitivity training. Limitations of OD: As a method of inducing change. They use these interventions depending up on the need or requirements. Let us sum up Organization development intervention techniques are the methods created by OD professionals and others. organizations development has certain limitations. 2. Task of the organization and the characteristics of its membership also put limitations on the effectiveness of OD. Pearson 2003 60. Key words a. Suggested readings 58. the managerial grid.. as with any new strategy some criticisms are justified because of mistakes. Stephen P. team building and management by objectives. What are the advantage and disadvantages in OD 11. management tasks and responsibilities Truman Talley books . OD interventions Survey Feed back Sensitivity 10. New York 59. Other interventions are job enrichment. specially complacent ones who are not prepared to apply diligence of effort for improvement and the method of work involved in OD are sometimes not of sufficient strength to challenge the motivation of highly complacent People-3.