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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


Lesslie Lazar KanukPearson/PHI. Organization Behaviour.Satish k Batra & S H H Kazmi. 2. Consumer Behaviour. Excell Books 5. Consumer Behaviour. Coney-TMH. C B Gupta.Pearson 2003 3.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: 1.9/e. Fundamental of Management. L M Prasad. 6th Edition 5. Peter F Druker. New Delhi 7. Stephen P Robbins. Truman Talley Books.Hawkins. Organization Behaviour. Management Tasks and Responsibilities. New York. New Delhi 4.Peeru Ahamed & Sagadevan Vikas Publishing 4 .2004 9. Customer Relationship Management. Koontz & Weirich. Essentials of Management. Prentice Hall Of India. Stephen P Robbins. New Delhi 6. Management Principles And Practice.8/E 8. 2004 10. Best. Consumer Behaviour in Indian Perspective – Suja Nair – Himalaya Publishers. Sultan Chand & Sons.Tata Mcgraw Hill. Consumer BehaviourLeon Schiffman. Sultan Chand & Sons.

Operational Managers: Operational managers are lower-level managers who supervise the operations of the organization. involve both a shorter time horizon and the coordination of resources.5 Answer To Check Your Progress Exercise 1. because operational managers are the link between management and non-management personnel. 3.2 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.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. They are hands-on.2 Manager’s Are Universal 1.4 Some Useful Books 1. 1. do hard work themselves. growth.1 Introduction 1. They get dirty. solve problems. 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. Tactical managers are often called middle managers.3 Mangers Roles 1.0 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. 2. implementing the specific plans developed with tactical managers. Your first management position probably will fit into this category. This role is critical in the organization. Today's best middle managers have been called "working leaders. The other goal of HR manager is to prevent obsolescence at all levels. because in large organizations they are located between the rategic and operational managers.UNIT . Major activities include developing the company's goals and plans. wait for others to produce. Typically strategic managers focus on long-term issues and emphasize the survival. 1. give orders. and overall effectiveness of the organization. These managers often have titles such as supervisor or sales manager." They focus on relationships with other people and on achieving results. working managers. or tactics. They do not just make decisions. These decisions.1 : MANGER ROLE AND RESPONSIBILITIES AND TASKS Structure 1.0 Aims And Introduction 1. 1. They are directly involved with non-management employees. and then evaluate results.

and the ability to see the big picture. Liaison—contact outsiders who provide the manager with information. and ability to communicate. and inductive reasoning. attitudes and motives of others. Conceptual skills include analytical ability. when a CEO saves a failing corporation. 6 . hospitals. They manifest themselves in things like good judgment. For example. schools and governments benefit from efficient and effective management. Interpersonal roles 1. organize lead and control. clearly and persuasively. or principals. Mangers need good interpersonal skills. Line managers need this skill the most while top manager will need minimum of technical skills. Large and small businesses. ability to understand the feelings. They need to know how to plan. 2. administrators. interpersonal. Interpersonal Skills/Human Skills Interpersonal skills include the ability to work well with other people both individually and in a group. train. the board rewards this success with bonuses and stock options. and discipline employees 3. These may be individuals or groups inside or outside the organization. not the team. 3. The leaders of these organizations may be called executives. at all levels. to see the organization as a whole. logical thinking. Top mangers/CEO needs this type of skill the most. the owner fires the coach. Conceptual Skills Conceptual skills include the ability to think and to conceptualize about abstract and complex situations. Human skills are very important at each level of management. and to understand the relationships among the various subunits. and to visualize how the organization fits into its broader environment. motivate. and in all functional areas. Leadership—hire. Figurehead—duties that are ceremonial and symbolic in nature 2. This success or failure is reflected in a manager's career. 1.3 MANAGER’S ROLES: a. Technical Skills The skills that include knowledge of and proficiency in a certain specialized field Managers need to be technically competent. 1. but they are all managers and are responsible for the success or failure of the organization. When a professional football team starts losing. and conceptual. concept formation.Managers work in all types of organizations. The Managerial Skills and roles Managers need three basic sets of skills: technical. creativity. knowledge about human behaviors and group processes.

To this end. offer meaningful training opportunities. Coordinator/linking pin: The HR manager is often deputed to act as a linking pin between various divisions/departments of an organisation. The whole exercise is meant to develop rapport with divisional heads. • • 7 . skills and experience. training and developing employees. 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. and bring out the latent potential of people through intrinsic and extrinsic rewards which are valued by employees. physical. talent retention is also important. HR managers have to use their experience to good effect while laying down lucrative career paths to new recruits without. motivator: Apart from talent acquisition. coordinating HR activities with the actions of managers and supervisors throughout the organization and resolving differences between employees. 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. using PR and communication skills of HR executives to the maximum possible extent. increasing the financial burden to the company. 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. HR managers have to find skill deficiencies from time to time.b. • 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. Trainer developer.

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. rare. ONGC 's oil exploration capabilities and Dell's ability to deliver low cost. When employees’ talents are valuable. superiors and subordinates and employees and management with the sole objective of maintaining industrial harmony. o l Striking a happy balance between the employee's personal/professional as also the larger organizational needs. o l Rewarding creditable performance. e. while delivering cost effective. value enhancing solutions 8 .g. o l Ensuring fair and equitable treatment to all people regardless of their background. high-quality computers at an amazing speed) that distinguish an organisation from its competitors. Liberalisation. 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. taking care of their ever-changing expectations. To deliver results they are now seriously preoccupied with: o l Placing people on the right job. groups of employees. It forces the organisation to invest in its best employees and ensure that performance standards are not compromised. o l Adopting family-friendly policies. • Strategic Roles An organisation’s success increasingly depends on the knowledge. a firm can achieve sustained competitive advantage through its people. 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. Such an approach helps to ensure that HR practices and principles are in sync with the organisation’s overall strategy.• Mediator: The personnel manager acts as a mediator in case of friction between two employees. difficult to imitate and organized. The key areas of attention in this era of global competition include effective management of key resources (employees. work processes). o l Resolving differences between employees and groups smoothly. o l Representing workers’ issues. Employee champion: HR managers have traditionally been viewed as ‘company morale officers’ or employee advocates. o l Charting a suitable career path for each employee. technology. skills and abilities of its employees.

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

New Delhi 1. 4. fundamental of management. Pearson 2003 Koontz and Weirich. Organizational Behaviour. Essentials of Management. 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. Tata McGraw Hill.Prasad. Sultan chand and sons .Robbins. 3. New Delhi C. Fundamental of management. Stephen P.. 4.B.2. Management Principles and practices.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.M. New Delhi Koontz and Weirich. 5. L. 3. 6. 2. New Delhi.gupta. 10 . Sultan chand and sons. Tata McGraw Hill.

2. planning is the first function performed by a manager. The work of a manager begins with the setting of objectives of the organisation and goals in each area of the business.UNIT .2 : MANAGERIAL FUNCTIONS Structure 2. Planning includes objectives. strategies. R. maintain and operate purposive organizations through systematic. Terry -"Management is a distinct process consisting of planning. "Management is the process by which managers create.3 Some Useful Books 2.4 Answer To Check Your Progress Exercise 2. According to G. actuating and controlling. procedures. decision-making is the heart of planning. programmes. Planning: When management is reviewed as a process. 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. performed to determine and accomplish stated objectives by the use of human beings and other resources". It is today's projection for tomorrow's activity. policies. organizing. This is done through planning.1 INTRODUCTION The process of management involves the determination of objectives and putting them into action. According to McFarland. etc.2. coordinated and cooperative human effort". 1.0 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.0 Aims And Objectives 2.2 Managerial Functions 2.1 Introduction 2. 11 . A plan is a predetermined course of action to accomplish the set objectives. As it involves making choices. direct.

It is the real point of decision-making.. Analysis of External Environment: The external environment covers uncontrollable and unpredictable factors such as technology. Evaluating Alternative Courses: Having sought out alternative courses and examined their strong and weak points. Planning Process The planning process involves the following steps: 1. political conditions etc. within which our plans will have to operate. 12 . facilities etc..It is a pre-determined course of action. Planning is determination of personnel programs and changes in advance that will contribute to the organizational goals. socio-economic climate. Determining Alternative course of Action: It is a common experience of all thinkers that an action can be performed in several ways. recruitment. market. 6. In other words. it involves planning of human resources requirement. training etc. Analysis of Internal Environment: The internal environment covers relatively controllable factors such as personnel resources. 2. 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. 5. 3. . Establishing the sequence of activities: After the best programme is decided upon. selection. changing values attitude and behavior of employees and their impact on organization. Determination of Mission: The "mission" should describe the fundamental reason for the existence of an organisation. The objectives must be clearly specified and measurable as far as possible. finance. the next step is to evaluate them by weighing the various factors. but there is a particular way which is the most suitable for the organisation. at the disposal of the firm. Intelligent forecasting is essential for planning. the next task is to work out its details and formulate the steps in full sequences. It will give firm direction and make out activities meaningful and interesting.selecting the course of action is the point at which the plan is adopted. It also involves forecasting of personnel needs. Selecting the Best: The next step . 7. 9. Such an analysis will give an exact idea about the strengths and weakness of the enterprise. 4. Forecasting: Forecasting is a systematic attempt to probe into the future by inference from known facts relating to the past and the present. 8. Every member of the organisation should be familiar with its objectives. The management should try to find out these alternatives and examine them carefully in the light of planning premises. 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.

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

3. fundamental of management. management tasks and responsibilities Truman Talley books . 4. Tata McGraw Hill. Communication: It means transfer of information and under-standing from person to person. New York Stephen P.4 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.3 SOME USEFUL BOOKS 1.8. It enables group to think together and act together.Drucker. Pearson 2003 Koontz and Weirich. Peter F. Fundamental of management. 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.Robbins. 2. New Delhi 2. ideas and knowledge. 2. 3. 2. 14 . Communication also leads to sharing of information.

2 Evolution of management theory 3. life giving element in every business.Copper etc.1 INTRODUCTION Management is an important factor in an organisation.4 Some Useful Books 3.3 : EVOLUTION OF MANAGEMENT AND SCHOOL OF THOUGHTS Structure 3. Management theory may be classified into 6 schools of thought viz 1. 3. 6. The Classical school Human relation school Decision theory school Management science school Systems theory school Contingency theory school 3. W.W. Koontz w the first academician attempted to classify various approaches into schools of management theoryHis work was advanced by 'John F.3 Various school of thoughts 3. 4.1 Introduction 3. 5. 3. The manager is dynamic. Mee. 5.UNIT .2 EVOLUTION OF MANAGEMENT THEORY Management principles and practice developed and used by Roman catholic church and . Joseph Litterer. 2. Classical School 15 .5 Answer To Check Your Progress Exercise 3. 3. After reading this lesson we will be able to understand 1.military organizations are more useful to modern management.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. Koontz 0' Donnel describes. 2. Classical school Human relation school Decision theory school Management science school Systems theory school Contingency theory school 1. without his leadership.0 Aims and objectives 3. "No other area or human activity is importance as management". and never become production. 6. resources of production remain resources. 4.

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

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

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

Drucker. 6. Management Principles and practices.L.Prasad.Koontz and Weirich. 4. Essentials of Management. 5.C. New York 2. Explain how the evolution of management theory came. fundamental of management.B.M.. Pearson 2003 3. Sultan chand and sons. Organizational Behaviour.Robbins. 2.Peter F.Stephen P. Fundamental of management. New Delhi 5.gupta. New Delhi. New Delhi 4.Koontz and Weirich. 3. Tata McGraw Hill. Tata McGraw Hill.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Explain about Contingency theory school 19 . Sultan chand and sons . management tasks and responsibilities Truman Talley books .1. 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. New Delhi 3.

2 SOCIAL RESPONSIBILITY In your daily life.1 Introduction 4. that keep you fit and takes care of your health. brushing your teeth. For example.3 Concept Of Social Responsibility 4. taking care of your parents or children. This creates an obligation on the part of business to look after the welfare of society. They do several things for you and expect something from you. which you must do. 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.6 Answer To Check Your Progress Exercise 4. showing respect to elders obeying traffic rules on road etc. which you need to fulfill. Let us learn more about why businessmen engage themselves in such activities. etc. The expectations of the family or society become your obligations. However. Any responsibility you have.4 : SOCIAL RESPONSIBILITIES OF BUSINESS Structure 4. are called your social responsibility.0 Aims And Objectives 4. For example. Social responsibility of business refers to all such duties and 20 . you must have seen businessmen spending money on different aspects. rather they will protect and contribute to the interests of the society. every business operates within a society. For example. education and health care to their employees and their families.1 INTRODUCTION Business is an economic activity.2 Social Responsibility 4. Now you fulfill all these obligations by performing certain activities which are called your responsibilities. As we know. which is carried out on a regular basis to earn profit. taking food timely. 4.5 Some Useful Books 4. you must have seen businessmen maintaining and developing gardens and parks on streets and squares in cities. There are also obligations towards yourself. 4. some provide housing.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. Some businessmen engage themselves in research for improving the quality of products. which you need to fulfill. which is not going to give them any profit straightway.4 Responsibility Towards Different Interest Groups 4. For example. going to sleep early at night. It uses the resources of the society and depends on the society for its functioning. listening to your parents.UNIT. So all the activities of the business should be such that they will not harm. particularly towards members of the society with whom you interact or towards the society in general. etc. This is true in case of business also. transport. you perform a number of activities. keeping the road clean by not throwing garbage on it.

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

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

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

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

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

Planning is thus “the process of establishing objectives and courses of action prior to taking action. It is a comprehensive framework for making decisions in advance. It is a predetermined course of action to achieve a specified aim or goal.UNIT. Planning also helps identify potential opportunities and threats. Is planning really needed? If… organizations… never faced changes in the environment. leading. Importance of planning 3. there would have been no need for planning. and thus helps you avoid piecemeal decision making.1 INTRODUCTION Planning Plans are methods for achieving a desired result.6 Answer To Check Your Progress Exercise 5. and facilitates control. Planning is deciding in advance the objectives of the organisation tin short run as well as in long run and means for attaining them. Types of planning 5. 26 . Planning is a primary function. Nature of planning 2. It also facilitates the organizing.0 AIMS AND OBJECTIVES The main objective of this lesson is to understand the 1. It is the most fundamental function of management.” What is planning concerned with? Planning provides a sense of purpose and direction.4 Types Of Planning 5. it provides direction and a sense of purpose. it helps you to anticipate the consequences of various courses of action.2 Nature Of Planning 5.3 Importance Of Planning 5. and controlling functions of management. Planning: allows you to make your decisions ahead of time.0 Aims And Objectives 5. It is concerned with the end (what is to be done) as well as with means (how it is to be done). it provides a unifying framework against which to measure decisions. Planning is one of the functional areas of HR. Goals or objectives are specific results you want to achieve.5 Some Useful Books 5.1 Introduction 5.5 : PLANNING NATURE. Planning is a rational action mixed with a little thought. Planning is the first managerial function to be performed in the process of management. TYPES AND PROCESS Structure 5.

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

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

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

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

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

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.



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 “

 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.


 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

 Organisational & Personal Decisions : Taken by an individual in his official capacity to further the interest of the organisation known as organisational decisions.Good decisions must be evaluated against future events  Experimentation . Such decisions affect the functioning of the organisation directly. constraints & Premises This is to develop a model simulating the problem 6.Among alternatives is to try one of them & see what happens. - Cost effectiveness Analysis : Is an improvement over the marginal analysis technique.  Non-Programmed Decisions : It deals with unique or unusual or non-routine problems.It is to be most expensive of all techniques . This is based on rationality. judgement and experience.(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 . This type of decision is taken by top level executives.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. . There are established procedures to take decisions. There is no established procedure.6 CLASSIFICATION OF DECISIONS : Programmed & Non-Programmed Decisions : It deals with routine or repetitive type of problem. Selecting an Alternatives :. Middle or low legal executives take this type of decision. 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.Some more doubts left even after experimentation . Key to Success in Decision-Making :- 35 . 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.

Analyzing the Problem: Analysis of the problem involves determining its causes and scope. and garbage-can models. Decision-making describes the process by which a course of action is selected to deal with a specific problem. It should be determine the strategic factor relevant to the decision.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. 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. Set decision-making goals.       Be problem-oriented not just solution-oriented. In the rational model. Clear understanding of the problem is necessary. The three non-rational models of decision-making discussed in the chapter are: satisfying. In contrast. (6) Implementing the decision. incremental. (4) Evaluating alternatives. a manager should look beyond the symptoms and take an overall view of the situation. (7) Monitoring the decision. Evaluate and follow up the decision.  36 . specifying the nature and magnitude of the problem. 6. The success of an organization depends greatly on the decisions of managers. At the time of decision-making. A written problem statement should be prepared. they possess as well as understand all the information that is relevant to their decision.  Defining the Problem: The first step in decision-making is that of recognizing & identifying the problem. There are two major types of models used by managers to make decisions (1) rational model (2) non-rational models. managers engage in rational decision-making processes. The quality of decision will depend upon the quality of information used. (5) Selecting an alternative. 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. In order to identify the real problem.

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

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

10. Organization is a dynamic concept. It is the process of determining. The activities of the enterprise and establishing |the authority relationships among them.6 Advantages Of Informal Organization To Members 7. plans.UNIT:7 ORGANIZING PRINCIPLES AND STRUCTURAL DESIGN Structure 7. next step in management process is organizing.2 Organization As A Process 7. grouping and assigning the activities to be performed for the attainment of objectives.9 Some Useful Books 7.5 Formal And Informal Organization 7. 7. 4.Alien.3 Organization As A Structure 7.7 Disadvantages Of Informal Organization 7. It involves coordinating the employee's activities in an efficient manner for accomplishing the enterprise objectives.8 Types (Forms) Of Organization: 7. defining and delegating responsibility and authority and 39 .4 Principles Of Organization (Features Of Good Organization Structures) 7. According to Louis A. arranging.1 INTRODUCTION After deciding the objectives. organization is an essential part of human life. 2. 3. "organization is the process of identifying and grouping the work to be performed. "organizing” is the process of defining and grouping.0 AIMS AND INTRODUCTION The main objectives of the lesson is to understand the following 1. The term organization is used as a process of management and as a structure of relationships.0 Aims And Objectives 7. programs and policies formulated for achieving the objectives. Organization as a process Organization as a structure Principles of organization (features of good organization structures) Formal and informal organization 7.2 ORGANIZATION AS A PROCESS Organization is one of the important functions of management.Answer To Check Your Progress Exercise 7.1 Introduction 7.

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

Principle of Authority Authority given to manager enables him to accomplish the objectives of the enterprise. This is to ensure discipline to fix responsibility for results. 41 . to the performance of a single function. as far as possible. 3. 6.7. Every subordinate should know who his superior is and who his subordinate are. Unity of Command Each subordinate should have only one superior whose command he has to obey. Hence. Exception Principle Only exceptionally complex matters should be referred to executives for their decision and subordinate should decide matters of routine nature themselves. Unity of Objective The objective of the business concern should be clearly stated.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. This keeps management in formulating the organization structure and also in achieving the objectives of enterprise with minimum cost and effort. 7. 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. authority of each manager should be clearly defined and also it should be equal to the responsibility entrusted. The execution can concentrate their time on important matters instead of spending their time on routine matter. 1. Span of Control Every manager should have a limited number of subordinates reporting to him directly. Scalar Principle There should be a clear chain of command extending from top to bottom of the organization. 5. The important principles of organization are. 2. The activities of enterprise are divided according to different functions and the same assigned to persons according to their specialization. Specializations or Division of Work The activities of every member should be confined.

" In a formal organization. The authority delegated should be equal to responsibility. complicated procedures. Principle of responsibility The supervisor should not be allowed to avoid responsibility by delegating authority to his subordinates. This is possible if it is dynamic and capable of adapting itself to the needs of changing circumstances. Hence. Principle of delegation The organization structure should provide for delegation of authority at every level. red tape and complexity of control should be avoided. Acts of his subordinates to whom he has delegated. process. 9. and human relationship and rules planned and structured in order to accomplish organizational goals. Community The organisation structure should be serviceable for a long time. The superior should be held responsible for the. Unity of direction It means.8. there should be one plan for one objective-This facilitates verification and co-ordination of activities and also completion of task as per schedule. It should permit the optimum use of resources. Flexibility The organisation structure should be adaptable enough to accommodate technical and other changes in the environment. 10.5 FORMAL AND INFORMAL ORGANISATIONS Formal Organization: It refers to organization structure deliberately created by management for achieving the objectives of the enterprise. for a group of activities having the same objectives. "an organization is formal when activities of two or more persons are consciously coordinated towards a "common objective. 14. 13. the position. 7. It is a pattern of activities. If the organization structure has a large number of levels. According to Chester Barnard. the problem of effective co-ordination and communication may arise. Principle of simplicity The organization structure should be simple with a minimum number of levels. authority. Efficiency The organization structure should facilitate the achievement of objectives at minimum possible cost. 11. 12. By 42 . responsibility and accountability of each level or clearly defined.

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

the informal organization amend. 5. he may be protected from authoritative action. Important channel of communication News travel quickly through informal organizations. he seeks a sympathetic ear of a friend in the informal organization. who got the similar problem share and understood his troubles.7 DISADVANTAGES OF INFORMAL ORGANIZATION 1. Aid on the job In case of accidents or illness. Resistance to change 44 . Individual can experiment his novel ideas. Conflicting norms Informal organization upholds the individual and social goals of its members. amplify and interpret it. In informal organization. It is the clandestine transmitter and receiver of information before it is officially released. For example. Changing work assignments increases the group efficiency. it gives to each member a human consideration which boost his self image and personality. the efficiency of operations is reduced and talents of employees are suppressed. Safety value for emotional problems The workers are frustrated and gets tension in their routine work. His friend. Check on authority Informal organization forces manger to plan and act more carefully. more detailed and meaningful but possibly distorted and erroneous picture of what is going on in the organization. If a worker breaks a rule. between legitimate and illegitimate activities.' These guides serve as a dividing line between good and bad behavior. without persuading the immediate superior. members of informal organization may help each other. Each person gets larger. 4. 6 . 7. Social control This type of organization provides all its members a set of norms-'guides to correct behavior. between moral and immoral acts. Hence. Breeding ground for innovation and originality Informal group creates better environment for individual innovation and originality. Every manager knows that there is 3 check and balance on his unlimited use of authority.sense of belonging. In such a situation. which often run counter to the goals and values of formal organization. 2. 2. 7. After the news is released. 3. his supervisor might have reprimanded him or an overbearing customer might have harassed him.

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

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

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.


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,


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


Formal and informal organization . Sultan chand and sons . Koontz and Weirich. Explain the process of organization 2. Management Principles and practices.Drucker. Organizational Behaviour. Tata McGraw Hill. New Delhi 4. Fundamental of management. management tasks and responsibilities Truman Talley books .7.9 SOME USEFUL BOOKS 1. C. L.B. New York 2. Essentials of Management.Discuss 50 . New Delhi.Robbins. Peter F. Stephen P. 6.M. New Delhi 7. Pearson 2003 3..10 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.gupta.Prasad. fundamental of management. New Delhi 5. Comment on Principles of organization 4. Koontz and Weirich. Tata McGraw Hill. Discuss about Organization as a structure 3. Sultan chand and sons.

51 . Decentralization. he needs authority to take decisions about these and to enforce them.1 INTRODUCTION This lesson deals about the important aspects in organization. span of control. it is delegated to the chief executive. 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.6 Line And Staff Authority 8. DECENTRALIZATION.7Some Useful Books 8. In fact. authority vests in the owners of the organization. decentralization and authority is also important to be known clearly. rules and regulation. delegation. Controlling of an organization is also important. 8.5 Decentralization 8.2 Delegation 8. span of control.4 Centralization 8. Characteristics of Delegation 1. In order to perform these activities. organizing and its structural design are very important. For any work to be in a better way. Line and staff authority. planning.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the basic concepts underlying the delegation. SPAN OF CONTROL. an from there. with in the limits he is not free to act arbitrarily but subject to provisions of organizational policy.2 DELEGATION Organization units require the delegation of authority to their respective managers so that they can manger their respective units. LINE AND STAFF AUTHORITY Structure 8. 8. The degree of delegation puts a manager to act within the limits prescribed by his superior.3 Span Of Control 8.UNIT: 8 DELEGATION.0 Aims And Objectives 8. hence. for which. Delegation is the authorization to a manager to act in a certain way independently.8 Answer To Check Your Progress Exercise 8. Moreover.1 Introduction 8. he assigns some activities to his subordinates and delegates them authority. The chief executive cannot perform all the activities. Every manger in the organization has some activities assigned by the superior.

Moreover. organization climate. the important determinant is the manger's ability to reduce the frequency and time impact of superior-subordinate relationships. though objectives are specified. Nature of Work of factors determining span of management 4. Delegation is specific when course of action for specific objectives are specified. 8. policy. You share with others who then possess the knowledge. and method require modifications in delegation of authority. 'it is something like imparting knowledge. Since. 5.3 SPAN OF CONTROL MEANING The term 'span of management' is also referred to as span of control. procedure. authority is delegated to an individual. however a superior at the same time still retains authority. A superior delegates authority to subordinates. 3. span of supervision. Capacity of Superior of factors determining span of management 2. it can be written or unwritten. Delegation has a dual characteristic. Similarly. It includes the number of subordinates who report directly to a manager. 1. Communication Techniques of factors determining span of management 8. Planning of factors determining span of management 6. though this ability itself is determined by several other factors. As such. but you still retain the knowledge too. Delegation may be specific or general. Degree of Decentralization of factors determining span of management 5. The following factors generally go in determining a proper span of management. As Terry has observed. A manager cannot delegate authority which he himself does not process. Capacity of Subordinates of factors determining span of management 3. the authority can be recovered back fully in the case of his exit from the organization. The changes in organization structure. 4. Authority once delegated can be enhanced. span of authority or span of responsibility. he does not delegate the entire authority to his subordinates because if he delegates all his authority he cannot work. Supervision from Others of factors determining span of management 52 . Use of Staff Assistance of factors determining span of management 7. reduced or withdrawn depending upon the requirement.2. it is general when these are not specified.

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

good working environment etc.10 Let Us Sum Up 9.12 Some Useful Books 9.6 Theories Of Motivation 9. Terry . the plan is put into operation through the organization by the process of direction.3 Directing 9. theories of motivation.1 Aims And Objectives 9.13 Answer To Check Your Progress Exercise 9. Terry . R. In the words of G.3. This lesson gives a clear picture about that.supplying simulative power to the group". motivation and a good leaders. INTRODUCTION The most important work of an organization is all about directing.  Supervising subordinates to ensure compliance with plans". Thus.5 Techniques Of Directing 9.9 Theories Of Leadership 9.1.UNIT: 9 DIRECTING.7 Leadership 9. 56 .2 Introduction 9. "Direction is telling people what to do and seeing that they do it to the best of their ability.11 Key Words 9. R."Directing means moving to action and supplying simulative power to a group of persons". It consists of:  Issuing orders and instructions by a superior to his subordinates."Activating means moving into action . According to Dale.  Motivating them to achieve goals by providing incentives. motivation. leadership and its styles. advising and helping subordinates in the proper methods of work.8 Leadership Styles 9. It is through directing that managers get the work done through people. 9.4 Importance Of Directing 9. 9. DIRECTING Meaning: According to G.2. MOTIVATION AND LEADERSHIP Structure 9. techniques of directing. Another term used to describe this function is "Activating".  Guiding. AIMS AND OBJECTIVES The main objective of the lesson is to understand the basics of directing.

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. 4) The four important aspects of directing are supervision. A subordinate has to receive instructions for doing his job from his superior. No organisational objective can be achieved without the function of direction. This makes the functioning of direction all the more important. motivation.To carry out physically the activities resulting from the planning and organizing steps. 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. It is the human element which handles the other resources of the organisation. is affected by others. 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. Each individual in the organisation is related with others and his functioning affects others and. Besides issuing orders and instruction a superior also guides and counsels his subordinates to do his job properly. 2) Direction implies issuing orders and instruction. leadership and communication. 3) The top management gives broad direction to the middle level managers who in turn give specific direction to the lower level management. Direction phase of management is the heart of management-in action.4. the structure being designed and competent people brought in to fill various positions in organization. in turn. 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. Once the organizational plans have been laid down. direction starts. 9. IMPORTANCE OF DIRECTING The importance of direction in an organisation can be viewed by the fact that every action is initiated through direction. All these functions are interconnected and mutually dependent. 57 .

(e) It leads to better co-ordination and effective results.2) Direction initiates action: It is through direction that the management makes individuals function in a particular way to get organisational objectives. (b) Subordinates may consider it their right and prerogative to be consulted before a directive is given to them by their superiors. The free rein technique of direction will probably show the best and quickest results. (c) Sometimes unnecessary arguments arise leading to wastage of time. who has a sincere desire to become a top level manager. 4) Direction facilitates changes: To manage change management must motivate individuals to accept these changes which can be accomplished through motivation. (d) It induces better motivation and morale. 9. 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. 3. (b) Better communication. perspicacity and ingenuity to the solution of the problem. 1.5. (c) Least resistance from subordinates. brilliant young man a sole performer. clear and precise orders to his subordinates. 9. This method has the following disadvantages: (a) It is time consuming. if the subordinate is highly educated. TECHNIQUES OF DIRECTION: A manager has at his disposal three broad techniques of direction.6. Free rein direction: The free rein technique encourages and enables the subordinate to contribute his own initiative. Consultative direction: In this method executive consults with his subordinates concerning the feasibility. experience and knowledge of subordinate also can be used to arrive at right directives. The following advantages are claimed in this type of method: (a) Participation occurs on every level of organisation. independent thought. Automatic direction: In this method manager gives direct. drive. 2. MOTIVATION Concept of motivation 58 . the workability and the extent and content of a problem before the superior makes a decision and issues a directive. with detailed instructions as how and what is to be done allowing no room for the initiative of the subordinate.

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. Meaning According to Knootz and O’Donnell. “motivation is a general term applying to the entire class of drives. As a result of this. needs wishes and similar forces that include an individual or a group of people to work. 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. Scott defines “Motivation means a process of stimulating people in action to accomplish desired goals”. Efficiency and output are increased through cooperation • High motivation helps to reduce resistance to change • By providing proper motivation. Motivation is necessary for better performance. which must satisfy. all the members will try to be as efficient as possible and to improve upon their skill and knowledge 59 . The word motivation is derived from motive which is an active form of a desire or need. Getting work done is a difficult task. It is the integral part of the management process and every manager must motivate his subordinates to create in them the will to work. the management should inspire and motivate the people for the accomplishment of organizational objectives. Importance of motivation Motivation is one of the important functions of the management without which organizational objectives are difficult to achieve. For this purpose.Management is the art of getting work done by the subordinates in order to attain common goals of the organization. All motives are directed towards goals and the needs and desires affect or change your behavior. The force of motivation is a dynamic force setting a person into motion or action. desires.

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

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

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

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

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

help in preventing dissatisfaction but do not increase satisfaction or motivation.:Achievement. but they are related to the conditions under which a job is performed. when absent. people lack self motivation and require be externally controlling and closely supervising in order to get maximum output. They are associated with negative feelings.company policy. They must be adequate and if they are absent or inadequate. It only triggers or activates the urge for the next higher level of needs. inter-personal relations. increase dissatisfaction with the job. The elements that influence the job context are the hygiene or maintenance factors e. advancement and the work itself. 65 . They must be viewed as preventive measures that remove sources of dissatisfaction from environment. Hertzberg believed that hygiene factors created a zero level of motivation and if maintained at proper level prevents negative type of motivation from occurring. they will create dissatisfaction. Thus. Given proper conditions.g. When present. 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. salary. They are not an intrinsic part of a job.g. recognition. According to this theory of motivation the items that determine job content are considered motivational factors e.:. 1) Hygiene Factors: Hygiene factors represent the need to avoid pain in the environment.The motivators and maintenance factors. 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. responsibility.THEORY X THEORY Y 1) Theory X assumes human beings inherently dislike work and are distasteful towards work. working conditions etc. hygiene factors. 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. Hertzberg's Theory of Motivation Hertzberg developed a theory of motivation on the premise that human nature has two separate elements .

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

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

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

The motivational approach of the leader can be threat and punishment or appreciation and rewards. 69 . When highly dictatorial. The autocratic leader believes that his leadership is unquestionable as it is conferred upon him because of the position he enjoys. sense of insecurity. In the study. The subordinates are instructed to carry out their orders without any question. Democratic 3. A person having special personal characteristics along with some of these traits only can become good leader. They structure the situations in their own way and expect the workers to follow their orders. 9. He also believes that his knowledge is superior.• • • • • • • • Sociability Tact and diplomacy Self confidence Moral courage Integrity Will power Emotional stability Excellent human relations. The drive and initiative in them is killed and they do not display their innovative behaviour. Some leaders are paternalistic depending on the approach of the leader. Some autocratic leaders are tough and highly dictatorial and are a source of fear or intimidation.9. the subordinates develop a kind of fear. LEADERSHIP STYLES In 1939. They will not allow any deviation from their orders. 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. But the biggest nuisance is from those autocratic leaders who hide their incompetence for fear of being exposed. low morale. frustration. this early study was very influential and established three major leadership styles. Also the subordinates entirely depend on their leader and normally they suffer in the absence of their leaders. Authoritarian 2. But autocratic leaders who positively motivate are a class you enjoy to work with. While further research has identified more specific types of leadership. groups of school children were assigned to one of three groups with an 1. 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. as all leaders cannot possess all these qualities. power to punish or reward is his privilege they even impose penalty on subordinates or use abusive language in front of others and criticize. and will avoid responsibility.

Though the leader makes the final decision. a strong leader who utilizes an autocratic style can take charge of the group. such as during military conflicts. This also allows group members to become highly skilled at performing certain duties. such as when decisions need to be made quickly without consulting with a large group of people. The management in this type recognizes the fact that there are employees who are capable to give innovative ideas. 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. There are also many members who prefer working under strict discipline and under central authority. suggestive etc Obviously the group members get an opportunity to display their talents and are encouraged to demonstrate initiative and creativity. chances are that your grade or job performance suffered as a result. skillful. This incidentally leads to a good management-labour understanding or relations. competent. The style provides motivation and rewards to a manager who gives results. By this you are developing a set-up 70 . he acts more as a moderator and of course he takes responsibility for the results. This style is very useful when you have educated lobour . assign tasks to different members and establish solid deadlines for projects to be finished. In such situations. Democratic leadership styles This is also known as democratic leadership. experienced. However a majority of members do not like strictness and discipline especially because motivation is negative. Morale is lost and unbalanced rewards create conflicts jeopardizing the organizational efficiency since communication is also one-way. higher morale and greater job satisfaction.This style permits quick decisions. 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. as there is only a single person to take decisions. It allows members of the group to focus on performing specific tasks without worrying about making complex decisions. a lack of leadership and an inability to set deadlines? If so. In situations that are particularly stressful. intelligent. Here the subordinates are consulted and their feedback is taken into decision-making process. which can be beneficial to the group. dedicated and ready to work independently with nil or least directives. The members thus get a chance to participate in decision-making. Single leadership creates frustration and lacks motivation. Some projects require strong leadership in order to get things accomplished quickly and efficiently.

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

b) Members of the group feel more engaged in the process. THEORIES OF LEADERSHIP Interest in leadership increased during the early part of the twentieth century. 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. even though the leader retains the final say over decisions. 9.10. c) Creativity is encouraged and rewarded. especially in terms of military leadership. literally means giving complete freedom to subordinates. To start with the manager decides the policy. These theories often portray great leaders as heroic. But the contribution of the manager is nil and it can create chaos. This style leaves everything to subordinates. 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. The term "Great Man" was used because. Early leadership theories focused on what qualities distinguished between leaders and followers. Benefits of Democratic Leadership Because group members are encouraged to share their thoughts. democratic leadership can leader to better ideas and more creative solutions to problems. not made. mythic and destined to rise to leadership when needed. programme and limitations for actions. making them more likely to care about the end results. while subsequent theories looked at other variables such as situational factors and skill levels. With so much of freedom there is a possibility that a member may put his individual interest above the group interest. 72 .Some of the primary characteristics of democratic leadership include: a) Group members are encouraged to share ideas and opinions. at the time. Group members also feel more involved and committed to projects. Free rein Also known as laissez-faire. Research on leadership styles has also show that democratic leadership leads to higher productivity among group members. While many different leadership theories have emerged. most can be classified as one of eight major types: 1. All members are not leaders and hence can create frustration and non cooperation. leadership was thought of primarily as a male quality. "Great Man" Theories: Great Man theories assume that the capacity for leadership is inherent – that great leaders are born. who make their own decisions and it helps subordinates to develop independent personality.

the leader retains the right to allow the input of others. 7.2. 3. Relationship Theories: Relationship theories (also known as "Transformational theories") focus upon the connections formed between leaders and followers. 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. trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. however. people can learn to become leaders through teaching and observation. Success depends upon a number of variables. no leadership style is best in all situations. According to this theory. when employees are successful. not born. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. In participative theories. 73 . 4. 5. when they fail. they are reprimanded or punished. Managerial theories are often used in business. 6. Participative Theories: Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. Trait theories often identify particular personality or behavioral characteristics shared by leaders. Trait Theories: Similar in some ways to "Great Man" theories. Behavioral Theories: Behavioral theories of leadership are based upon the belief that great leaders are made. Rooted in behaviorism. 8. Situational Theories: Situational theories propose that leaders choose the best course of action based upon situational variables. According to this theory. this leadership theory focuses on the actions of leaders not on mental qualities or internal states. Different styles of leadership may be more appropriate for certain types of decision-making. If particular traits are key features of leadership. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. including the leadership style. 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. Management Theories: Management theories (also known as "Transactional theories") focus on the role of supervision. These theories base leadership on a system of rewards and punishments. qualities of the followers and aspects of the situation. organization and group performance. they are rewarded.

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

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

Tata McGraw Hill. Koontz and Weirich. f) What are the qualities of a leader? 76 .3.14. e) Explain the types of leadership. New Delhi 9. d) What is leadership and its importance. 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. Fundamental of management.

7 Key words 10.5 Effectiveness of control system 10.e.4 Steps in controlling process 10."Managerial control implies measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.1 Introduction 10. characteristics of control and also the steps in controlling methods and the essentials of control system 10."Management control is the process by which managers assure that resources are obtained and used effectively and efficiently..UNIT: 10 CONTROLLING NATURE AND TECHNIQUES Structure 10.0 Aims and objectives 10."Controlling is determining what is being accomplished i.9 Answer To Check Your Progress Exercise 10."Fundamentally. Controlling: Controlling is an important function of management." According to George R Terry . The essence of the concept is in determining whether the activity is achieving the desired results”.2 View of control 10."Control is checking current performance against predetermined standards contained in the plans." In the words of Haynes and Massie .8 Some Useful Books 10. Under primitive 77 .1 INTRODUCTION This lesson gives us a detail idea about the views of control.3 Characteristics of control 10.6 Let us sums up 10. characteristics and the steps in control process 10. with a view to ensuring adequate progress and satisfactory performance. applying corrective measures so that the performance takes place according to plans." In the words of Koontz and O'Donnell ." According to Robert N Anthony . control is any process that guides activity towards some predetermined goal.2.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the views of control. It is the process that measures current performance and guides it towards some predetermined objectives. controlling meaning. evaluating the performance and if necessary. According to Breach . VIEWS OF CONTROL Control is the process through which managers assure that actual activities conform to planned activities.

Planning The planning lays the foundation for control as it sets the behavioural norms and activities in the organization. It should anticipate possible deviations and to think of corrective action for the control of such deviations in the future. They are:  Control is the function of every manager. Corrective actions can be initiated accordingly. Both freedom and accountability are embedded in the concept of control. Many information provideed by control is used for planning and replanning. Without control. Without freedom. You may refer the figure below.  Control is linked with future. It is usually preventive as presence of control system tends to minimize wastages. Both are linked by actions only. there is no intention to punish the person for wrongdoing. The opposite of control is not freedom but chaos or anarchy. 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. Control is fully consistent with freedom. as past cannot be controlled. Control measures these activities and behaviour in the organization. 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 becomes ineffective. Control is applied in order to remove any deviation in behaviour or norms. The deviations in the past are revealed by the control process.3 CHARACTERISTICS OF CONTROL Managerial control has certain characteristic feature. Control shows that there are some goals and policies and standards. losses and deviations from standards. Managers at all levels have to perform this function to contribute to the achievement of organisational objectives. 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. The result of planning. freedom cannot be sustained for long. they are inter-dependent. Therefore. if he finds he is on the wrong track. policy and goal is control. In fact. 78 . 10. 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. A very well conceived plan itself provides means for effective control. The concept of control is often confused with lack of freedom. Thus planning precedes control and control succeeds planning. Planning----------------------Actions------------------------.management.  Control leads to appraisal of past activities.Controlling Thus various elements of planning provide what is intended and expected and the means by which the goals are achieved . Planning process sets the goals.

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

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

Objective controls specify the expected results in clear and definite terms and leave little room for argument by the employees. control should be tailored to fit the needs of the organisation. A small company cannot afford the elaborate control system used by a large company.1) Suitable: The control system should be appropriate to the nature and needs of the activity. A proper system of control should enable the manager concerned to think of and plan for future also. objective and understandable. The feedback system should be as short and quick as possible. he must find a pattern that will provide control for individual parts. It should be adaptable to new developments including the failure of the control system itself. if a target is so tough that it seems impossible to meet. successfully meeting to tough standard may well provide a greater sense of accomplishment than meeting an easy standard. A control system is justifiable if the savings anticipated from it exceed the expected costs in its working. However. The flow of information concerning current performance should correspond with the organizational structure employed. 3) Objective and Comprehensive: The control system should be both. organizing and directing. In the words of Koontz and 81 . 5) Economical: Economy is another requirement of every control. Plans may call for an automatic system to be backed up by a human system that would operate in an emergency. It must lead to corrective action to be taken to check deviations from standard through appropriate planning. In other words. 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. 7) Motivate People to High Performance: A control system is most effective when it motivates people to high performance. 4) Flexible: The control system should be flexible so that it can be adjusted to suit the needs of any change in the environment. This is necessary both for the smooth working and the effectiveness of the system. it will be more likely to discourage than to motivate effort. The benefit derived from a control system should be more than the cost involved in implementing it. It must be responsive to changing conditions. If a superior is to be able to control overall operations. quotas and other techniques may be useful in controlling separate departments. 8) Corrective Action: Merely pointing of deviations is not sufficient in a good control system. When standards are set unilaterally by upper level managers. A sound control system will remain workable even when the plans change or fail outright. there is a danger that employees will regard those standards as unreasonable or unrealistic. Budgets. Since most people respond to a challenge. If the control reports are not directed at future. 6) Acceptable to Organisation Members: The system should be acceptable to organisation members. 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. A large firm calls for controls different from those needed for a small firm.

3. 4. fundamental of management. 7. Pearson 2003 3. Fundamental of management. 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. Tata McGraw Hill.? 82 . New Delhi 10. whenever large deviations take place. Do you think it is so important to have a control system in the organization. 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." A control system will be of little use unless it can generate the solution to the problem responsible for deviation from standards. "An adequate control system should disclose where failure is occurring. Even when there are a number of control1 systems provided by staff specialists. Under primitive management. 10) Human Factor: A good system of control should find the persons accountable for results. 11) Direct Control: Any control system should be designed to maintain direct contact between the controller and controlled.6 KEY WORDS 1) 2) 3) 4) Controlling Strategic points Comprehensive Organization members 10. who is responsible for them and what should be done about them. LET US SUM UP Controlling is an important function of management.Drucker. New York 2. 10.Robbins. management tasks and responsibilities Truman Talley books . 2.7 SOME USEFUL BOOKS 1. it is also an important vehicle of control.O'Donnell. In enforcing control the efficiency and the effectiveness of the organisation must be clearly brought out. 9) Reflection of Organisation Pattern: Organization is not merely a structure of duties and function. Koontz and Weirich.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. It is the process that measures current performance and guides it towards some predetermined objectives. the foreman at the first level is still important because he has direct knowledge of performance. Stephen P. Peter F. They must be guided and directed if necessary. Explain about the characteristics of controlling What are the steps in controlling Write about the essential of effective control system.

" Co-ordination as.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. AIMS AND OBJECTIVES The main objectives of the lesson is to understand the basics of need of co-ordination." Co-ordination consists of three elements viz. Nature/characteristics of co-ordination 83 .1 Introduction 11. 11." According to George Terry. 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. resulting in harmonious and unified actions to a stated objective."co-ordination is the orderly arrangement of group effort to provide unity of action in pursuit of a common purpose."it makes diverse elements and sub-systems of an organisation to work harmoniously towards the realisation of common objectives.8 Answer To Check Your Progress Exercise 11. timing and integrating. timing and direction of execution. 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.7 Some Useful Books 11. techniques and also the importance.0 Aims and objectives 1I." the orderly syschromsation of efforts to provide the proper amount.2 Definitions 11.UNIT : 11 CO-ORDINATION THE ESSENCE OF MANAGEMENT Structure 11. DEFINITIONS Mooney and Reily.3 Need for co-ordination 11.6 Key words 11.2. 11.Ordway Tead According to Lundy.. balancing." .4 Techniques of co-ordination 11.1.0. "co-ordination involves the development of unity of purpose and the harmonious implementation of plans for the achievement of desired results.5 Let us sum up 11.

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

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

2. 11. Tata McGraw Hill. Explain the techniques of co-ordination 86 . Stephen P. fundamental of management. management tasks and responsibilities Truman Talley books .A good communication system contributes to effective co-ordination by promoting mutual understanding and co-operation among different groups and individuals in the organization.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. New York 2.Drucker.6 KEY WORDS Goals Economy and efficiency Human r relations Techniques 11. Fundamental of management. Explain the need for co-ordination 3. Define the Co-ordination and the meaning of it. Pearson 2003 3. interdependencies and thus forestalling or mitigating the co-coordinating difficulties.Robbins. 11.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.7. j) Incentives By providing incentives to the interdependent units also help in securing coordination among those unitsI) Planning Planning is a way of anticipating. New Delhi 11. SOME USEFUL BOOKS 1. Koontz and Weirich. Peter F.

HRM manager attention.5 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.1 12. 87 .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. with renewed thrust on HR issues. INTRODUCTION To understand the present trends in the HRM is so important.8 12.2 12.0. The name of the game today in business is personnel.3 12. Indian organizations are also witnessing a change in systems. AIMS AND OBJECTIVES The main objectives of the lesson is to understand the new trends in HRM. MEANING Human resource management is a process of bringing people and organizations together so that the goals of each other are met.6 12. more particularly on training. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. their policies. There is a need for multi skill development. Personnel directors are the new corporate heroes.2.UNIT: 12 NEW TRENDS IN MANAGEMENT Structure 12. The role of HR manager is shifting from that of a protector and screener to the role of a planner and change agent.1. 12. Organizations now need to prepare themselves in order to address people centered issues with commitment from the top management. management cultures and philosophy due to the global alignment of Indian organizations.7 12. 12. Role of HRM is becoming all the more important.4 12.0 Aims And Objectives 12.

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

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

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

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

Tata McGraw Hill.12. 92 . New trends Planning Technology Talent management Diversity 12. Write about the new trends in HRM. Stephen P. Fundamental of management. 4. fundamental of management. 2.8 SOME USEFUL BOOKS 1. KEY WORDS 1.9 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1.Drucker. Write about HR policies. Explain the importance of having a updated role of the HR policies. 3. Pearson 2003 3.Robbins. Koontz and Weirich. 5. New York 2. Peter F. Suggest a few ways in which HR policies can be made more effectives.7. management tasks and responsibilities Truman Talley books . New Delhi 12. 4. 2. 3.

Thus for example.3 Nature Of Organizational Behavior 13. Hence a study in detail about the behaviour of people in organizations.0 Aims and objectives 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 93 . hospitals. responses and behavior of these people in different cadres are also different.2 Concepts 13. transport. Why? The services of Tata group are far different from the services of Birla group. schools.8 Answer To Check Your Progress Exercise 13. In a nutshell you can conclude that wherever there is organization. In our daily life we come across a lot of organizations that consists of business. and disciplines. What makes this difference? Obviously the way in which people in these organizations act. The temperaments. there is a definitely a need to study and understand the organizational behaviour. 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. government and such service organizations. nature. the services rendered by Citibank are considered to be better than that rendered by any equivalent Indian bank. We also know that different category of people in different cadre are working and interacting in these organizations. let us understand what organizational behavior is.1 INTRODUCTION This lesson gives us a clear picture about the evolution. react and behave are different resulting in different performance and productive output of these organizations. challenges and the opportunities of the organization behavior. 13.2 CONCEPTS Before attempting to define organizational behavior.0 AIMS AND OBJECTIVES AND OPPORTUNITIES OF The main objectives of the lesson is to understand the concepts relating to OB.UNIT-13 : EVOLUTION.7 Some Useful Books 13. CHALLENGES ORGANIZATIONAL BEHAVIOR Structure 13.1 Introduction 13. Organizations play a major role in our lives.4 Disciplines related to OB 13.6 Key words 13. banking. 13.. From the accumulated knowledge you can develop some tools so as to apply the same to find out how people act within organizations. accumulating knowledge about the behaviour for further research has become extremely important .5 Let us sum up 13.

it involves the understanding. Sociology. are all examples of organizations. and the maintenance of social order. social psychology. Sociology is the study of social behavior. The behavior of the people working in an organization to achieve common goals or objectives. Organizations play a major role in our lives. 2. DISCIPLINES RELATED TO OB 1.3 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. We possibly cannot think of a single moment in our lives when we are not depending on organizations in some form or the other. anthropology and economics.4 .people as resources -people as people In other words. human performance and management 13. the Institute itself. This essentially addresses the problem of understanding the 94 . work. 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. lets understand organizational behavior and what it exactly it means ‘Organizational Behaviour’ can be defined as the study of what people think. norms and values. the class you are attending at this moment. 13. beliefs.to achieve some common objectives. Psychology. predicting. relationships among social groups and societies. understanding. perceptual processes or personality characteristics. The study of Organizational Behavior facilitates the process of explaining. So now. absenteeism. prediction and control of human behaviour and factors affecting their performance and interaction among the organizational members. Social psychology. This helps us to appreciate the functioning of individuals within the organization which is essentially a socio-technical entity. This thus provides us with useful insight into areas such as human motivation. cultures. sociology. Right From the public transport that you use to come to your institute. And because organizational behavior is concerned specifically with employment – related situations. you should not be surprised to find that it emphasizes behavior as related to concerns such as jobs. Social psychology is the study of human behaviour in the context of social situations. maintaining. and changing employee behavior in an organizational setting. The main focus of attention is on the social system. 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 . 3. Organization comprises of people with different attitudes. employment turnover . productivity. and do in and around organizations. feel..

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

. The organization also needs technology to help in getting the job done. Koontz and Weirich. The organizations hence exist to serve these members and people do not exist to serve organizations. Peter F.Robbins. 13. 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. Thus there is an interaction of people. Pearson 2003 3.. New Delhi 96 . Organizations play a major role in our lives.The key elements in OB are people.Drucker. the external environmental influences. technology and the external environment in which the organization operates.5. SOME USEFUL BOOKS 1. consisting of individuals.7. They may also disband. New York 2. structure and technology. The individuals in organizations are thinkers. 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. It must be noted that the groups are ever changing and hence are dynamic. People are recruited by the organization so as to achieve the objective. KEY WORDS     Psychology Sociology Anthropology Political science 13. Fundamental of management. management tasks and responsibilities Truman Talley books . Stephen P. Some may be formal while others may be informal. This calls for a definite structure of the organization.6. groups and large groups and small groups. feelers and living emotional beings. fundamental of management. structure. People Organization Structure Technology External Environment Key Elements in organization behavior The employees constitute the social system of an organization. Tata McGraw Hill.

Explain the nature of organization behavior. 97 . What are the disciplines related to organization behavior. 2.13. Discuss the concepts of organization behavior. ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. What are the important elements of organization behavior.8. 3. 4.

3 Major determinants of personality 14.6 Key words 14.1Introduction 14.8 Answer To Check Your Progress Exercise 14."a very diverse and complex psychological concept. The word "personality" may mean something like outgoing. The particular pattern or organization of measurable traits. He states that: "the human personality includes: i. they are unable to come out with a unanimous definition. 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 Though psychologists and social scientists unanimously agree to the importance of personality. These distinguishing characteristics are summarized by the term personality". External appearance and behaviour or social stimulus value ii. 14. 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." Gordon Allport gave the most frequently used definition of personality nearly 70 years ago.2 Definition 14. 98 . Inner awareness of self as a permanent organizing force iii.7 Some Useful Books 14.4 Personality characteristics in organizations 14.0 AIMS AND OBJECTIVES The main objectives of the lesson is to understand the determinants of personality. characteristics.UNIT: 14 PERSONALITY AND BEHAVIORAL ASSESSMENT Structure 14. 14.5 Let us sum up 14.1 INTRODUCTION This lesson gives us a clear idea about personality which have a great influence on the organization and also on the person. both "inner and "outer". The major determinants of the personality is determined by various factors and also the characteristics is explained in detail in this lesson. James D Thompson and Donald Van Houten define personality as .0 Aims and objectives 14. He said personality is "the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment". Many authorities on the subject have defined personality in different ways.

sex. is biologically determined. The most recent and exciting possibilities come from the work done with electrical stimulation of the brain (ESB) and split-brain psychology. and biological rhythms are characteristics that are considered to be inherent from one’s parents. The heredity approach argues that the ultimate explanation of an individual's personality is the molecular structure of the genes. 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. 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. The fact that a person is tall or short. 2) Brain: The second biological approach is to concentrate on the role that the brain plays in personality. 5. muscle composition and reflexes. energy level. today we recognize another factor . plus many other variables. From this biofeedback the person can learn to control the body process in question. Research on animals has showed that both physical and psychological characteristics can be transmitted through heredity. Biological. Work with ESB on human subjects is just beginning. facial attractiveness. psychologists and geneticists have accepted the fact that heredity plays an important role in one's personality. will affect the self-concept. Physical stature. all contribute to personality. located in the chromosomes. If personality characteristics were completely dictated by heredity. Cultural. The problem lies in the fact the cognitive and psychological processes. fat or skinny. 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. an individual's external appearance. temperament. 4) Physical features: A vital ingredient of the personality. But research on human beings is inadequate to support this viewpoint. 3.the situation. 4. This being true. 2. But its potential impact could be extremely interesting for the future. black or white will influence the person's effect on others and this in turn. More research is needed on biofeedback before any definitive conclusions can be drawn. There seem to be definite pleasurable and painful areas in the human brain. However. it may be possible physically to manipulate personality through ESB.3 MAJOR DETERMINANTS OF PERSONALITY Personality appears to be a result of both influences. 3) Biofeedback:. Additionally. Practically all would agree that physical characteristics have at least some influence on the personality. Family Social Situational. 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 .14.

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

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

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

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

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

reverence. COMPONENTS OF EMOTIONS: Emotion has two components 1. Facial expression of emotion 2.10 Some Useful Books 15. Feeling of emotion Facial expression of emotions is due to isometric contraction (shortening) of muscles of facial expression around the mouth. At rest the tone of the USM is 50%.6 Types of learning 15. There is simultaneous change in tone of Unified Skeletal Muscle (USM) and therefore we feel an emotion in the entire body.1 INTRODUCTION A mental state that arises spontaneously rather than through conscious effort and is often accompanied by physiological changes.UNIT – 15 EMOTIONS AND LEARNING Structure 15.2 Components 15.0 Aims and objectives 15. 15. PURPOSE OF EMOTIONS: 105 . a feeling: the emotions of joy. and love. 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.9 Key words 15.3. Feeling of emotions is due to isotonic contraction (increase or decrease) in the hardness) of the muscles of facial expression. Emotion is the exchange rate of a sensation or a movement. types and learning and the theories. sorrow.11 Answer To Check Your Progress Exercise 15.1 Introduction 15.8 Let us sum up 15.3 Purpose of emotions 15. hate. Thus there is a sensory emotion and a motor emotion.4 Types of emotions 15. 15.7 Learning theories 15.5 Learning 15.0 AIMS AND OBJECTIVES The main objective of the lesson is to understand about purpose.2. 15.

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

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

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

Unconditioned Stimulus (US). Rabbit experiment . Instrumental conditioning: association between a response and a stimulus. Observational learning: learning by watching and imitation other people 15. Classical conditioning: association between two stimuli: 3. Conditioned Response (CR) 4. Establishment of connections between sensory systems and motor systems 2. Behaviorism focuses only on the objectively observable aspects of learning. There are three main categories or philosophical frameworks under which learning theories are called as 1. Hebb rule .if a synapse repeatedly becomes active at about the same time that the postsynaptic neuron fires. 109 . Changes within the sensory systems of the brain 2.  Behaviorism. Punishment 3. Reinforcement: positive and negative 8. Cognitive. changes will take place in the structure or chemistry of the synapse that will strengthen it 5.tone paired with puff of air 6. Episodic learning: remembering sequences of events that we witness 7.7. Motor learning: establishment of changes within the motor system 4. Constructivism. Spatial learning: involves learning about the relations among many stimuli 6. Conditioned Stimulus (CS). allows an organism to adjust its behavior according to the consequences of that behavior: 7. 2. Stimulus-response learning: ability to learn to perform a particular behavior when a certain stimulus is present: 1.  Cognitive theories look beyond behavior to explain brain-based learning. LEARNING THEORIES A learning theory is an attempt to describe how people and animals learn. thereby helping us understand the inherently complex process of learning. Unconditioned Response (UR). Relational learning: involves connections between different areas of the association cortex 5. 3.

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

Operant behaviour means voluntary or learned behaviour in contrast to reflexive or unlearned behaviour.F Skinner did for operant conditioning. any stimulus from the work environment will elicit a response. punishment and extinction. knowing. Based upon this direct relationship between the consequences and behaviour. the management can study and identify this relationship and try to modify and control behaviour. problem solving. 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. the behaviour can be predicted and controlled. The consequences of a given behaviour would determine whether the same behaviour is likely to occur in future or not. It is based upon the premise that behaviour or job performance is not a function of inner thoughts. Hence. The consequence of such a response will determine the nature of the future response. operant conditioning is the process of modifying behaviour through the use of positive or negative consequences following specific behaviours. or shape behaviour through three strategies: reinforcement. Reinforcement therefore strengthens behaviour and increases the likelihood that it will be repeated. 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.Operant Conditioning Operant conditioning argues that behaviour is a function of its consequences. remembering and forming mental representations. What Pavlov did for classical conditioning.  Based upon such consequences. Thus. feelings. emotions or perceptions but is keyed to the nature of the outcome of such behaviour. 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 . 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. Today. more comprehensive view of learning. According to cognitive theorists. The consequences of behaviour are used to influence. The tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour. these processes are critically important in a more complete. It is also known as reinforcement theory and it suggests that behaviour is a function of its consequences. For example. Operant conditioning induces a voluntary change in behaviour and learning occurs as a "consequence" of such change. the Harvard psychologist B. 1. Thus. the behaviour can be controlled by manipulating its consequences. a growing number of psychologists stress the role of mental processes. People learn to behave to get something they want or avoid something they don't want. From an organizational point of view. however. They choose to broaden the study of learning to include such cognitive processes as thinking.

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

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

There is no behaviour without perception. In other words perception lies at the root of every individual behaviour.5 Stress Management 16.6 Role Of Stress Management 16. because they are part of one continuous process. Sensation usually refers to the immediate. nose. sensation and perception are virtually impossible to separate.UNIT – 16 : PERCEPTION AND STRESS MANAGEMENT Structure 16. Perception is defined as a process by which individuals organize and interpret their sensory impression in order to give meaning to their environment.2 Perception And Process 16. ears. better describes one's ultimate experience of the world and typically involves further processing of sensory input. relatively unprocessed result of stimulation of sensory receptors in the eyes. organized and interpreted to make it meaningful to you. Perceptual inputs are received first. received. To interpret it technically.7 Identification Of Stress At Various Levels 16. these are then processed by the perceiver. It of course is a psychological process.11Answer To Check your Progress Exercise 16. It is the most important cognitive factor of human behaviour. 16. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment. Perception.8 To Reduce The Stress Level 16. types and the stress mangement and its role and the various levels of identification of stress and steps to reduce it.1 Introduction 16.3 Factors Influencing Perception 16. It has to be noted that perception is more a cognitive than a sensory process. 16.1 INTRODUCTION Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world.0 AIMS AND OBJECTIVES The main objective of the lesson is to understand the basics concepts realating to perception and its process.10 Some Useful Books 16. on the other hand. Perception is the process through which the information from outside environment is selected. you can take an input-throughput-output 114 .0 Aims And Objectives 16. tongue. or skin. In practice.2 PERCEPTION AND PROCESS The process of perception consists of a number of sub processes.9 Let Us Sum Up 16.9 Key Words 16. The resulting output becomes the basis for behaviour.4 Types Of Perception 16.

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

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

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

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

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. When they are given a newer and higher role. Role stagnation arises when the bank officers experience lack of development and growth in their role. largely because individuals experience increased job complexity and increased economic pressures. Stress is the result of mismatch between a person and environment and the perceived inability to cope with the constraints or demands encountered. 3. threat or challenge when the outcome of the event is both important and uncertain. the person must perceive that the support system enhances self-esteem. 5. and the interaction between the two. A strong social support system provides a place to share problems and put them in perspective. skill or expertise experienced by the role occupant 8. Inter – Role distance (IRD) is experience due to conflict experienced between different Roles played by the bank officers. Personal inadequacy arises from lack of knowledge. Role overload is experience by the bank officers when there are too many or too high expectations from their role 6.6 ROLE STRESS AMONG THE PROFESSIONALS Stress due to occupation of a role is known as role stresses which are the following types: 1. It can be found within the environment. Stress is caused by internal or external demand that upset the balance of an individual and affect physical and psychological well being. is available when needed and provides relationships that are satisfying. Stress can arise from an opportunity. 119 . needs and values of the role and the role occupant. Self – role distance is experienced when a role occupant has to do when they disliked. demand. To make the social support system effective. Stress has become increasingly common in organizations. Stressor refers to the source of stress. 16. 4. the individual. Role Isolation arises when the bank officers feel cut off from the channels of communication 7. constraint. when their special knowledge and skills remain unutilized or when there is a conflict between the image. 2.made upon it. Role expectation conflict arises when the bank officers faces conflicting expectations from different role senders. Environmental and internal conditions that lie beyond an individual's control are called environmental stressors. they feel uncomfortable due to lack of preparedness and keep on clinging on the older and lower role.

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

For example. unpleasant odors and other stressful factors can lead to illness or disease. They may make poor decisions. psycho physiological and behavioral components. and costs related to decreased productivity. fatigue. 5. Individual level: In general. However. or die and have to be replaced by other workers who need training. Psychological symptoms and c. Other stress related factors are catching the eyes of management of banks. b. For example. a. toxic chemicals. The most significant medical illnesses of this form are heart disease and strokes. at great cost. overcooling. begin abusing alcohol and other drugs. depression and burnout result in decline in efficiency. dust noise levels. the intense stress of public speaking may result in a 121 . 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”. The effects of occupational stress have attracted the attention of business. burnout. high noise levels. self-medication and psychological changes such as depression or a “trapped” feeling. This was primarily because specialists in the health and medical sciences researched the topic. cost of hospitalization and outpatient care. Physiological Symptoms: A number of medical illnesses have a stress-related component. and psychogenesis disorders. It is an adverse work stress reaction with psychological. Symptoms include diminished sense of humor.Some places of work include hazards that can create stress. Dangerous tasks or work settings. such as the unique Japanese phenomenon of "Karoshi" (death by overwork). For example. Physiological symptoms. Behavioural symptoms. The link between stress and particular physiological symptoms is not clear. stress may play an indirect role in the progression of disease. Burnout It is a syndrome of physical and emotional exhaustion. an extreme preoccupation with work may result in acute individual distress. Most of the early concern with stress was directed at physiological symptoms. and headaches. and an exhausted rundown feeling. increased overtime and no vacations. 16. individual distress usually takes one of the three basic forms: a. social withdrawal. companies are now offering flextime allowing workers to schedule themselves more consistent with their lifestyles and priorities. skipping rest and food breaks. backaches. diminished interest in work. Stress on the job cost includes salaries for sick days. miss days of work. Psychogenesis disorders are physical disorders with a genesis (beginning) in the psyche (mind). There is no clear evidence that stress is a direct causal agent. In the early stages. 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.7 Identification of stress at various levels 1. peptic ulcers. b. diminishing job performance. Psychological Symptoms: The most common types of psychological distress are depression. increased physical complaints. may break down when stressed on the job. dust. That will help recruiting. Officers trained over a long period of time.

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

received. vii. vi. Exercise . consider doing something else you love. Whether it's swimming. try to eat right most of the time. Ten to 20 minutes of shut eye can make a big difference and refocus your mind on positive pursuits. LET US SUM UP Perception. on the other hand. Do things you love . running. 16. because they are part of one continuous process.Pursing hobbies and enjoyable interests is a great way to reduce stress and increase enjoyment in life. Perception is the process through which the information from outside environment is selected. but a basic well balanced diet can make a different. This doesn't mean you have to become a health food fun. Perhaps it's just relaxing in your backyard or playing games with family. Shooting for a good seven to eight hours a night can impact your reaction to stress and help you deal with negative issues better.8. boxing or something entirely different. sensation and perception are virtually impossible to separate.9 KEY WORDS Perceptual process Perception Image Figure ground principle Conflict Stress management 16.10 SOME USEFUL BOOKS 123 . Should you have no interest in a hobby at all. playing ball. organized and interpreted to make it meaningful to you. gardening.Diet can play a very big role in how stress impacts the body. consider picking up one that is of interest to you. better describes one's ultimate experience of the world and typically involves further processing of sensory input. To reduce its effects.A lack of sleep can do terrible things to stress levels. 16. v. Get rest . In practice. It is an easy way to employ one of the ways to reduce your stress levels. Find something you enjoy doing and do it.iv. If you don't have a hobby already. Eat right . regular activity can reduce stress levels and help ground your mind in the positives. This can refocus your mind and provide you with a positive boost against stress. Even consider taking little cat naps during the day to reduce stress and recharge batteries. walking.Physical activity is one of the best ways to combat stress in your life effectively. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment. Just make a little bit of time for the things that really matter to you.

New Delhi 16. Stephen P. Define perception and explain the perceptual process. 3. Pearson 2003 3. Peter F. fundamental of management. Explain the factors that influence the perception Explain the types of perception.Drucker. 5. New York 2. 2. Koontz and Weirich.Robbins. 4.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE 1. Discuss about the various ways of reducing the stress in life style. 124 .1. Tata McGraw Hill. management tasks and responsibilities Truman Talley books . Fundamental of management. Explain stress management and its role in human life.

1 Change Management Content 1. Unit. Many external changes bombard the modern organizations and make change inevitable. Organization must forge ahead on these forces to survive. 3. the organization's success often rides on its ability and willingness to change as well. 7. Meeting this challenge of change is the primary responsibility of management.6. arising from outside the company. scientific. 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 globalization of competition. Revolutions are taking place in political. is accelerating in our society. Organizations cannot completely buffer themselves from this environmental instability. Change in fact.  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. Adaptability to change is a necessary quality of good management. technological and institutional areas. economic. The general environment has social. 8.  Why is organizational change so important? From outside and inside the organization a variety of forces press for change. 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. External Forces: When the organization's general or task environment changes. Pressures for change are created from both inside and outside the organization. Change is inevitable in a progressive culture. Change is induced by the internal and external forces. far-reaching forces for change have included developments in information technology. 5. 6. Some of these are external. It has become an inescapable fact of life. An organization lacking adaptability to change has no future. In recent years. legal and political and technological dimensions. sources of resistance to change. 2. Any of these can introduce the need for change. a fundamental aspect of historical evolution. These forces are discussed below: 125 . and demands that organizations take greater responsibility for their impact on the environment. Modern manager is change-conscious and operating in the constantly changing environment. 1. 4.

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

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

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

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

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

Key words a) Managing Change b) Change Agents c) Resistance to Change 7. fundamental of management. Let us sum up Change in fact. Adaptability to change is a necessary quality of good management practice. 6. New Delhi 131 . Although organizational changes are important. Suggested readings 7. is accelerating in our society. Practically everything a manager does is in some way concerned with implementing change. management tasks and responsibilities Truman Talley books . Stephen P. 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.Robbins. Peter F. New York 8. managers should try to institute changes only when they make strategic sense. Pearson 2003 9.Drucker. 5.change are all examples of manipulation. Fundamental of management. It involves giving individuals a desirable role in design or implementation of change. Tata McGraw Hill. Adaptability to change is a necessary quality of good management. Meeting this challenge of change is the primary responsibility of management. An organization lacking adaptability to change has no future. Koontz and Weirich.

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

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

Effects of climate 134 . General satisfaction R. Rewards .feelings of general good fellowship and helpfulness in the work settings and 6. Working with co-operative and pleasant people and 4. Individual responsibility .feeling related to being conflict of adequate and appropriate rewards.setting of objectives. speed and cotrol. Managerial structure 3. 5.2. Managerial support 2. 1. Taguiri has also identified the following five factors in organizational climate on the basis of information provided by managers. new and different things are required.perceptions of the degree of challenge and risk in the work situation 5. Psychologically the size of the organization may be one of the factors affecting the organizational climate. Such things as the kinds of skill and the location of pools of skill within the organization. The individual is treated impersonally in the larger organizations. However size alone cannot determine the job satisfaction. Concern for new employees 4. Tolerance and conflict . As the business grows the old face to face techniques are no longer adequate. Risk and risk taking .feelings or autonomy of being one's own boss 3. 4. Warmth and support . the decentralization of authorities and the development of new kinds of communication networks may change radically as the company grows. planning and feedback Opportunities for exercising individual initiative 2. Being with a profit minded and sales oriented company.degree of confidence that the climate can tolerate differing opinions. 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. with premium-on precisions. Working with a superior who is highly competitive and competence. SHAPE AND CONTROL The chief merit of a large organization be it an industrial governmental or research beurocracy is its technical efficiency. 3. Agent dependence and 6. Practices relating to providing a sense of direction/ purpose to their jobs . SIZE. 1. Inter-agency conflict 5.

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

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

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

Pearson 2003 57.9. New York 56. Fundamental of management. New Delhi 138 . 3) Is the climate subject to measurement? If so. fundamental of management.Robbins. Stephen P. how? If not why? 4) Explain how to change climate whenever necessary? 10. Suggested Readings 55. Koontz and Weirich. 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. Peter F.Drucker. management tasks and responsibilities Truman Talley books . Tata McGraw Hill.

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

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

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

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

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

such as industrial organizations of both public and private sectors. government department etc. 3. Some notable examples are Tata iron and Steel co. hospitals. Hindustan Machine Toole 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. 2. 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. What is more 144 . and non-industrial organizations like banks. Many of the organization have not published their results of OD efforts. a public sector organizations. and the advantages of OD. Such detailed accounts of OD efforts are available in published forms. Bokaro steel and orient paper mills.ltd. Though the results which have been reported have been encouraging there are various problems in the way of OD implementation in Indian organizations. For the adoption of such techniques essentially requires sharing of authority. banks and other organizations. role of OD. Hindustan Aeronautics ltd. Some detailed accounts of OD efforts are available in published forms. participative management. State Bank of India. Introduction OD program has been successfully implements recently in number of companies in India. Aims and objectives The main objectives of the lesson is to understand the OD approaches in India. Such efforts are in the context of Hindustan Machine Tools. 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. The OD work has been done in diverse type of organizations. 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. such organizations have applied OD techniques with varying Degrees of success. such as OD or similar ones.

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

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

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

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

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

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