UNIT-3

Maslow's Hierarchy of Needs

Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier model
of human needs, often depicted as hierarchical levels within a pyramid.

Needs lower down in the hierarchy must be satisfied before individuals can attend to needs
higher up. From the bottom of the hierarchy upwards, the needs are: physiological, safety, love
and belonging, esteem and self-actualization.

This five-stage model can be divided into deficiency needs and growth needs. The first four
levels are often referred to as deficiency needs (D-needs), and the top level is known as growth
or being needs (B-needs).

Deficiency needs arise due to deprivation and are said to motivate people when they are unmet.
Also, the motivation to fulfill such needs will become stronger the longer the duration they are
denied. For example, the longer a person goes without food, the more hungry they will become.

Maslow (1943) initially stated that individuals must satisfy lower level deficit needs before
progressing on to meet higher level growth needs. However, he later clarified that satisfaction of
a needs is not an “all-or-none” phenomenon, admitting that his earlier statements may have given
“the false impression that a need must be satisfied 100 percent before the next need emerges”
When a deficit need has been 'more or less' satisfied it will go away, and our activities become
habitually directed towards meeting the next set of needs that we have yet to satisfy. These then
become our salient needs. However, growth needs continue to be felt and may even become
stronger once they have been engaged.

1. Physiological needs - these are biological requirements for human survival, e.g. air, food,
drink, shelter, clothing, warmth, sex, sleep.

If these needs are not satisfied the human body cannot function optimally. Maslow considered
physiological needs the most important as all the other needs become secondary until these needs
are met.

2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.

3. Love and belongingness needs - after physiological and safety needs have been fulfilled, the
third level of human needs is social and involves feelings of belongingness. The need for
interpersonal relationships motivates behavior

Examples include friendship, intimacy, trust, and acceptance, receiving and giving affection and
love. Affiliating, being part of a group (family, friends, work).

4. Esteem needs - which Maslow classified into two categories: (i) esteem for oneself (dignity,
achievement, mastery, independence) and (ii) the desire for reputation or respect from others
(e.g., status, prestige).

Maslow indicated that the need for respect or reputation is most important for children and
adolescents and precedes real self-esteem or dignity.
5. Self-actualization needs - realizing personal potential, self-fulfillment, seeking personal
growth and peak experiences. A desire “to become everything one is capable of becoming”

Hierarchy of needs summary

(a) Human beings are motivated by a hierarchy of needs.

(b) needs are organized in a hierarchy of prepotency in which more basic needs must be more or
less met (rather than all or none) prior to higher needs.

(c) The order of needs is not rigid but instead may be flexible based on external circumstances or
individual differences.

(d) Most behavior is multi-motivated, that is, simultaneously determined by more than one basic
need.

Critical evaluation

The most significant limitation of Maslow's theory concerns his methodology. Maslow
formulated the characteristics of self-actualized individuals from undertaking a qualitative
method called biographical analysis.

From a scientific perspective, there are numerous problems with this particular approach. First, it
could be argued that biographical analysis as a method is extremely subjective as it is based
entirely on the opinion of the researcher. Personal opinion is always prone to bias, which reduces
the validity of any data obtained. Therefore Maslow's operational definition of self-actualization
must not be blindly accepted as scientific fact.

Maslow's assumption that the lower needs must be satisfied before a person can achieve their
potential and self-actualize. This is not always the case, and therefore Maslow's hierarchy of
needs in some aspects has been falsified.

Herzberg’s Two-Factor Theory of Motivation

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the

motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to Herzberg,
the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No
Dissatisfaction”.
 FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-

a. Hygiene factors- Hygiene factors are those job factors which are essential for existence
of motivation at workplace. These do not lead to positive satisfaction for long-term. But
if these factors are absent / if these factors are non-existant at workplace, then they lead
to dissatisfaction. In other words, hygiene factors are those factors which when
adequate/reasonable in a job, pacify the employees and do not make them dissatisfied.
These factors are extrinsic to work. Hygiene factors are also called as dissatisfies or
maintenance factors as they are required to avoid dissatisfaction. These factors describe
the job environment/scenario. The hygiene factors symbolized the physiological needs
which the individuals wanted and expected to be fulfilled. Hygiene factors include:

• Pay - The pay or salary structure should be appropriate and reasonable. It must be equal
and competitive to those in the same industry in the same domain.
• Company Policies and administrative policies - The company policies should not be too
rigid. They should be fair and clear. It should include flexible working hours, dress code,
breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans (mediclaim), benefits
for the family members, employee help programmes, etc.
• Physical Working conditions - The working conditions should be safe, clean and
hygienic. The work equipments should be updated and well-maintained.
• Status - The employees’ status within the organization should be familiar and retained.
• Interpersonal relations - The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or
humiliation element present.
• Job Security - The organization must provide job security to the employees.

b. Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent
to work. These factors motivate the employees for a superior performance. These factors
are called satisfiers. These are factors involved in performing the job. Employees find
 these factors intrinsically rewarding. The motivators symbolized the psychological needs
that were perceived as an additional benefit. Motivational factors include:
a. Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
b. Sense of achievement - The employees must have a sense of achievement. This
depends on the job. There must be a fruit of some sort in the job.
c. Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
d. Responsibility - The employees must hold themselves responsible for the work.
The managers should give them ownership of the work. They should minimize
control but retain accountability.
e. Meaningfulness of the work - The work itself should be meaningful, interesting
and challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

2. Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
3. The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters
may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his job
acceptable despite the fact that he may hate/object part of his job.
5. The two factor theory is not free from bias as it is based on the natural reaction of
employees when they are enquired the sources of satisfaction and dissatisfaction at work.
They will blame dissatisfaction on the external factors such as salary structure, company
policies and peer relationship. Also, the employees will give credit to themselves for the
satisfaction factor at work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor
theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of
the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that
the work is stimulating and rewarding so that the employees are motivated to work and perform
harder and better. This theory emphasize upon job-enrichment so as to motivate the employees.
The job must utilize the employee’s skills and competencies to the maximum. Focusing on the
motivational factors can improve work-quality.
 McClelland’s Need Theory
McClelland’s Need Theory of Motivation (Three Needs Theory) provides a way for
managers to determine the factors motivating each of their team members. Managers and
team leaders can use this information to interact with each team member in ways most
likely to motivate them.

Why Is It Useful?

Let’s imagine that you are a manager giving a team member their annual performance appraisal.
This team member has performed exceptionally well this year, so you’d like to reward them by
allowing them to take the lead on a high-risk project with potentially great upside for the
organization, and also for them. This new project will be their reward for performing so well the
previous year.

However, upon hearing they’ve been given the project they don’t seem at all positive. Why?
Well, one reason is that you may have misread their motives.
While they might want to achieve great things in their career, perhaps they don’t want to take on
a high-risk project for fear it could damage their career prospects should they fail.

Another reason might be that they prefer being part of a great team and don’t like taking center
stage.

Need Theory of Motivation

Three Needs Theory was developed by David McClelland in his 1961 book, The Achieving
Society. The three needs that he identified were a need for achievement, a need for affiliation,
and a need for power.
McClelland states that we all have these three needs in some form or another regardless of age,
gender, race, or cultural origin. Each individual’s needs are learned through their life experiences
and are not innate at birth. This is why the theory is also sometimes called Learned Needs
Theory.
Need Theory of Motivation built on Abraham Maslow’s Hierarchy of Needs, developed some
twenty years earlier in the 1940s.
 The Three Needs

Let’s examine each of the three needs in turn. Before we do, it is worth noting that each of these
needs exists on a sliding scale.

For example, while some people may desire power, not everyone wants to be powerful at all
costs. Similarly, while some people avoid the spotlight at all costs, most people enjoy a little
praise. Most people don’t exist at the extremes of each need. This is represented by the bell curve
shape in the above diagram.

In a nutshell, each individual will be motivated to a greater or lesser extent by each of the
motivating factors.

1. Need for Achievement

Someone with a need for achievement would:

• Be motivated by achievement and the opportunity for promotion.

• Have a strong desire to complete complex tasks, set records, or do something not done
before.

• Prefer it when results are under their control and based on their effort rather than external
factors.

• Like to receive regular feedback.

• Avoid high-risk and low-risk situations. Low-risk situations offer no sense of
achievement, and high-risk situations are too much outside of their control.

Team members with very low achievement needs tend to avoid situations where they can fail.
Conversely, people with too high an achievement need will want to win at any cost and will want
to receive all of the praise.

2. Need for Affiliation

Someone with a need for affiliation would:

• Be motivated by achieving and retaining acceptance as part of a group. They like to be

liked.

• Follow the social norms of an organization for fear of rejection.

• Enjoy collaboration but dislike competitive situations.

• Avoid high-risk and low-risk situations.

Team members with very low affiliation needs tend to be loners, often introverts, with little
desire to socialize at work. Conversely, people with too high an affiliation need will demand
blind loyalty, and be intolerant of any disagreement.

3. Need for Power

Someone with a need for power would:

• Want to be in charge of others.

• Enjoy winning and competition.

• Place a high-value on discipline.

• Enjoy having status and motivating others.

Team members with very low power needs tend to be subordinate and dependent. Conversely,
people with very high power needs can be rude, exaggerate their own abilities, and want to
control everything.
 Alderfers ERG theory

To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical

research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of
motivation. He re-categorized Maslow’s hierarchy of needs into three simpler and broader
classes of needs:

• Existence needs- These include need for basic material necessities. In short, it includes
an individual’s physiological and physical safety needs.
• Relatedness needs- These include the aspiration individual’s have for maintaining
significant interpersonal relationships (be it with family, peers or superiors), getting
public fame and recognition. Maslow’s social needs and external component of esteem
needs fall under this class of need.
• Growth needs- These include need for self-development and personal growth and
advancement. Maslow’s self-actualization needs and intrinsic component of esteem needs
fall under this category of need.
The significance of the three classes of needs may vary for each individual.

Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory

ERG Theory states that at a given point of time, more than one need may be operational.

ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an
increase in desire for satisfying a lower-level need.

According to Maslow, an individual remains at a particular need level until that need is
satisfied. While according to ERG theory, if a higher- level need aggravates, an individual
may revert to increase the satisfaction of a lower- level need. This is called frustration-
regression aspect of ERG theory. For instance- when growth need aggravates, then an
individual might be motivated to accomplish the relatedness need and if there are issues in
accomplishing relatedness needs, then he might be motivated by the existence needs. Thus,
frustration/aggravation can result in regression to a lower-level need.

While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific
and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed
to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs
as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an
individual can work on growth needs even if his existence or relatedness needs remain
unsatisfied. Thus, he gives explanation to the issue of “starving artist” who can struggle for
growth even if he is hungry.

Implications of the ERG Theory

Managers must understand that an employee has various needs that must be satisfied at the same
time. According to the ERG theory, if the manager concentrates solely on one need at a time, this
will not effectively motivate the employee. Also, the frustration- regression aspect of ERG
Theory has an added effect on workplace motivation. For instance- if an employee is not
provided with growth and advancement opportunities in an organization, he might revert to the
relatedness need such as socializing needs and to meet those socializing needs, if the
environment or circumstances do not permit, he might revert to the need for money to fulfill
those socializing needs. The sooner the manager realizes and discovers this, the more immediate
steps they will take to fulfill those needs which are frustrated until such time that the employee
can again pursue growth.
 Porter and Lawler Model of Motivation

Lyman Porter and Edward Lawler came up with a comprehensive theory of motivation,
combining the various aspects that we have so far been discussing and using two additional
variables in their model. Though built in large part on Vroom’s expectancy model. Porter and
Lawler’s model is a more complete model of motivation. This model has been practically applied
also in their study of managers. This is a multi variate model which explains the relationship that
exists between job attitudes and job performance.

Assumptions:
This model is based on four basic assumptions about human behaviour:
(i) As mentioned above, it is a multi variate model. According to this model, individual
behaviour is determined by a combination of factors in the individual and in the environment.

(ii) Individuals are assumed to be rational human beings who make conscious decisions about
their behaviour in the organisations.

(iii) Individuals have different needs, desires and goals.

(iv) On the basis of their expectations, individuals decide between alternate behaviours and such
decided behaviour will lead to a desired outcome.

Elements:
The various elements of this model are explained in the following figure:
1. Effort:
Effort refers to the amount of energy which a person exerts on a job.

2. Value of Reward:
First of all people try to figure out whether the rewards that are likely to be received from doing
a job will be attractive to them. This is referred to as valence in Vroom’s theory. A person who is
looking for more money, for example, extra vacation time may not be an attractive reward. If the
reward to be obtained is attractive or valent then the individual will put extra efforts to perform
the job. otherwise he will lower his effort.

3. Perceived Effort Reward Probability:

In addition, before people put forth any effort, they will also try to assess the probability of a
certain level of effort leading to a desired level of performance and the possibility of that
performance leading to certain kinds of rewards. Based on the valence of the reward and the
effort reward probability, people can decide to put in certain level of work effort.

4. Performance:
Effort leads to performance. The expected level of performance will depend upon the amount of
effort, the abilities and traits of the individual and his role perceptions. Abilities include
knowledge, skills and intellectual capacity to perform the job. Traits which are important for
many jobs are endurance, pre-servance, and goal directedness. Thus, abilities and traits will
moderate the effort- performance relationship.
In addition, people performing the jobs should have accurate role perception which refers to the
wav in which people define for the jobs. People may perceive their roles differently. Only those,
who perceive their roles as is defined by the organization, will be able to perform well when they
put forth the requisite effort.

5. Rewards:
Performance leads to certain outcomes in the shape of two types of rewards namely extrinsic
rewards and intrinsic rewards. Extrinsic rewards are the external rewards given by others in the
organization in the form of money, recognition or praise. Intrinsic rewards are internal feelings
of job sell esteem and sense of competence that individuals feel when they do a good job.

6. Satisfaction:
Satisfaction will result from both extrinsic and intrinsic rewards. However, for being satisfied, an
individual will compare his actual rewards with the perceived rewards if actual rewards meet or
exceed perceived equitable rewards, the individual will feel satisfied and if these are less than the
equitable rewards, the individual will feel dissatisfied.

Significance of the Porter and Lawler Model:

Porter and Lawler model is a departure from the traditional analysis of satisfaction and
performance relationship. In practice, we find that motivation is not a simple cause and effect
relationship rather it is a complex phenomenon.

This model is of great significance to managers since it sensitises them to focus their
attention on the following points to keep their employees motivated:
1. Match the abilities and traits of individuals to the requirements of the job by putting the right
person on the right job.

2. He should carefully explain to the subordinates their roles or what they must do to be
rewarded. Then he must make sure that they understand it.

3. Prescribe in concrete terms the actual performance levels expected of the individuals and these
levels should be made attainable.

4. To achieve and maintain motivation, the appropriate reward must be associated with
successful performance.

5. Make sure that the rewards dispensed are valued by the employees. Thus, he should find out
what rewards are attractive to the employee and see if such rewards can be given to him.

Porter and Lawler model has definitely made a significant contribution to the better
understanding of work motivation and the relationship between performance and satisfaction.
But even then, to date, it has not made much impact on the actual practice of human resource
management.

Carrot and Stick Approach of Motivation

Introduction to Carrot and Stick Approach:

The Carrot and the Stick approach to motivation, makes use of rewards and penalties in order to
induce desired behaviour.

The philosophy of this approach comes from the old story that the best way to make a donkey
move is to put a carrot out in front of it or jab it with a stick from behind.

Meaning and Implications of Carrot and Stick Approach:

Carrot refers to rewards, which are offered or promised to individuals to act in the desired way;
while stick refers to punishments which are to be inflicted on individuals, for not acting in the
desired way. In away, carrot refers to positive motivation; and stick refers to negative
motivation.

Following are the implications of Carrot and Stick Approach:

(i) An overdose of ‘Carrot’ element, in the system of motivation invites laziness and fewer
attitudes towards work on the part of individuals. This happens, specially, because many- a-
times, people get carrot i.e. rewards regardless of their performance e.g. salary increase, seniority
based promotions, etc.

(ii) An overdose of ‘stick’ element, in the system of motivation leads to retaliatory behaviour on
part of people, strong organisation of labour unions against management atrocities, poor quality
workmanship etc.

Specific Carrots (Rewards) and Sticks (Penalties):

A brief account of specific rewards and penalties; which form part of the management
motivational system is given below:
(I) Carrots (rewards):
Monetary rewards:
(i) Wages/ salaries paid in cash

(ii) Pay increment on a regular basis.

(iii) Cash awards

(iv) Payment of allowances in cash

(v) Bonus payment

(vi) Granting leave with pay

(vii) Profit sharing schemes for employees.

(viii) Payment of pension rules.

(ix) Incentive schemes of wage payment.

Rewards capable of measurement in terms of money:

(i)Travel concession

(ii)Reimbursement of medical expenses

(iii)Subsidized food, housing etc.

(iv) Free uniforms

(v) Education to employees’ children-free or subsidized.

(vi) Job security.

Non-monetary rewards:
(i) Promotions

(ii) Delegation of authority

(iii) Assignment of challenging work

(iv) Certificates of merit

(v) Status symbols like, providing a separate room, peon, private Secretary, telephone facilities
etc.

(II) Sticks (penalties or punishment):

Monetary punishment:
(i) Loss of job (meaning loss of regular income)

(ii) Fines

(iii) Penalties
(iv) Withholding annual salary increment

Non-monetary punishment:
(i) Demotion

(ii) Transfer to an inconvenient work place.

(iii) Taking unfit for delegation of authority

(iv) Not allowing an individual to participate in decision-making.

Leadership – Meaning and styles

MEANING:

Leadership is an influence relationship among leaders and followers who intend real changes and
reflect their mutual purpose.

• Leadership is not an act or set of acts, it is a process.

• Leadership is not just influence, yet it involves influencing others through the
leadership. While between the leader and followers, the influence is mutual, together,
they influence the environment around them in some way.

• Leadership goes beyond goals. There is a purpose a cause which a broad enough to
create a vision that connects followers who might have different individual goal.

The concept of leadership has been quite visible in areas such as military operations, politics, and
management. Within work organization, leadership is no longer exclusively spontaneous or
emergent. Leadership can be assigned as a part of the requirement of exclusive jobs of
individuals, teams or it can be part of the expectations that members of a role set have from
individual teams. Leadership as a managerial function is no longer limited to the top officers. To
become a great leader, check out this business speaker.

Leadership Styles:
Leadership style is the manner and approach of providing direction, implementing
plans, and motivating people. As seen by the employees, it includes the total pattern of
explicit and implicit actions performed by their leader (Newstrom, Davis, 1993).

The first major study of leadership styles was performed in 1939 by Kurt Lewin who
led a group of researchers to identify different styles of leadership (Lewin, Lippit,
White, 1939). This early study has remained quite influential as it established the three
major leadership styles: (U.S. Army, 1973):

o authoritarian or autocratic - the leader tells his or her employees what to do

and how to do it, without getting their advice
o participative or democratic - the leader includes one or more employees in the
decision making process, but the leader normally maintains the final decision
making authority
o delegative or laissez-fair (free-rein) - the leader allows the employees to make
the decisions, however, the leader is still responsible for the decisions that are
made

Although good leaders use all three styles, with one of them normally dominant, bad
leaders tend to stick with one style, normally autocratic.

Authoritarian or Autocratic Leadership

I want both of you to. . .

This style is used when leaders tell their employees what they want done and how they
want it accomplished, without getting the advice of their followers. Some of the
appropriate conditions to use this style is when you have all the information to so lve
the problem, you are short on time, and/or your employees are well motivated.
Some people tend to think of this style as a vehicle for yelling, using demeaning
language, and leading by threats. This is not the authoritarian style, rather it is an
abusive, unprofessional style called “bossing people around.” It has absolutely no
place in a leader's repertoire.

The authoritarian style should normally only be used on rare occasions. If you have the
time and want to gain more commitment and motivation from your employees, then
you should use the participative style.

Participative or Democratic Leadership

This style involves the leader including one or more employees in the decision making
process (determining what to do and how to do it). However, the leader maintains the
final decision making authority. Using this style is not a sign of weakness, rather it is a
sign of strength that your employees will respect.

This is normally used when you have part of the information, and your employees have
other parts. A leader is not expected to know everything—this is why you employ
knowledgeable and skilled people. Using this style is of mutual benefit as it allows
them to become part of the team and allows you to make better decisions.

Even if you have all the answers, gaining different perspectives and diversity of
opinions normally provide greater creativity than insularity. As Katherine
Phillips wrote,

So as you think about diversity and its effects in organizations during this tough
economic time, recognize that the most robust practical value of diversity is that it
challenges everyone in an organization. We are more thoughtful, and we recognize and
utilize more of the information that we have at our disposal, when diversity is present.
That is diversity’s true value.

Delegative or Laissez-faire Leadership

You two take care of the problem while I go. . .

In this style, the leader allows the employees to make the decisions. However, the
leader is still responsible for the decisions that are made. This is used when employees
are able to analyze the situation and determine what needs to be done and how to do it.
You cannot do everything! You must set priorities and delegate certain tasks.
This is not a style to use so that you can blame others when things go wrong, rather
this is a style to be used when you fully trust and have confidence in the people below
you. Do not be afraid to use it, however, use it wisely!

A good leader uses all three styles, depending on what forces are involved between the
followers, the leader, and the situation. Some examples include:

o Using an authoritarian style on a new employee who is just learning the job. The
leader is competent and a good coach. The employee is motivated to learn a new
skill. The situation is a new environment for the employee.
o Using a participative style with a team of workers w ho know their jobs. The
leader knows the problem, but does not have all the information. The employees
know their jobs and want to become part of the team.
o Using a delegative style with a worker who knows more about the job than you
do. You cannot do and know everything and the employee needs to take
ownership of her job! In addition, this allows you to be more productive.
o Using all three styles: Telling your employees that a procedure is not working
correctly and a new one must be established (authoritaria n). Asking for their
ideas and input on creating a new procedure (participative). Delegating tasks in
order to implement the new procedure (delegative).

Forces that influence the style to be used include:

o Amount of time available

o Are relationships based on respect and trust or on disrespect?
o Who has the information—you, the employees, or both?
o How well your employees are trained and how well you know the task
o Internal conflicts
o Stress levels.
o Type of task, such as structured, unstructured, complicated, or s imple?
o Laws or established procedures, such as OSHA or training plans

Continuum of Leader Behavior

In 1958 Tannenbaum and Schmidt (1973) expanded on Lewin, Lippit, and White's
three leadership styles by extending them to seven styles and placing them on a
continuum as shown in the diagram below:
Notice that as you go from left to right, it moves from manager -oriented decision
making to team or subordinate oriented decision making, thus the team’s freedom
increases while the manager’s authority decreases. Depending upon the present level of
your team's experience and skills, you select a starting point and as the team grows and
develops, you move from one to the next one:

1. Manager makes decision and announces it – The team has no role in the
decision-making role. Coercion may or may not be used or implied.
2. Manager “Sells” decision – Rather than just tell, the manager needs to sell the
decision, as there is a possibility of some resistance from team members.
3. Manager presents ideas and invites questions – This allows the team to get a
fuller explanation so they can gain a better understanding of what the manager
is trying to accomplish.
4. Manager presents a tentative decision that is subject to change – This action
invites the team to have some influence regarding the decision; thus, it can be
changed based on the team's input.
5. Manager presents the problem, gets suggestions, and then makes the decision –
Up to this point the manager has always presented the decision, although the last
style allows it to change based upon the team's input. Now the team is free to
come up with options, however, the manager still has the final say on those
options.
6. Manager defines limits, and requests the team to make a decision – The manager
delegates the decision making to the team; but instills specific limits on the
team's solution.
7. Manager allows team to function within limits – Now the team does the decision
making; however, the manager's superior may have placed certain limits on the
 options they can make. If the manager sits in on the decision making, he or she
attempts to do so with no more authority than the other members do.

Basically, the first two styles or behaviors are similar to the authoritarian style; the
next three are similar to the participative style, while the last two are similar to the
delegate style. This approach gives the leader more options that can be refined to
specific situations or environments.

New leadership styles that are introduced:

Transnational Leadership

The Informational leadership highlights a leader as a facilitator of change occurring, when one or

more persons engage with others in such a way that leaders and followers raise one another to

higher levels of motivation and morality. The process of transformational leadership aims at

influencing changes in attitudes and assumptions held by organizational members and building

commitment for organizational goals and objectives. High level of communication exits between

managers and employees and it is under the guidance of leaders that employees meet their goals

and enhance productivity and efficiency.

Transnational Leadership

Transnational Leadership contrast, involves management –by- exception, intervention, and

punishing those who made errors. This can lead to negative emotions and performance on the

part of the subordinates. This approach would also require close monitoring of the subordinates,

who would surely not like it, and if they felt constrained, their performance might not be best.

Additionally, some of their voluntary behaviors, like citizenship behaviors would be reduced. A

manger lead a group of highly motivated individuals who follow his leadership and achieve their

goals. Employees are trained or rewarded such as bonuses depending upon their performance.
Bureaucratic Leadership

Under bureaucratic leadership, a leader believes in structured procedures and ensure that his or

her employees follow procedures exactly. This type of leadership leaves no space to explore new

ways to solve issues and in fact work by book. This type of leadership is normally followed in

hospitals, universities, banks (where large amount of money is involved) and government

organizations to reduce corruption and increase security. Self motivated individuals who are

highly energetic often feel frustrated due to because of organization inability to adapt to

changing environment.

Charismatic Leadership

The charismatic leader is visionary and works by infusing high amount of energy and enthusiasm

in his team. He sets as role model for his team and drive others to show high level of

performance. This type of leader is committed to the organization and believes more in him

rather than his team. The presence of charismatic leader works as a boost for rest of the

employees and therefore such type of leader should be committed to the organization for the long

run.

A charismatic leadership may pose as a risk to the company if he decided to leave to explore new

opportunities and it might take lot of time and hard work by the company to win the confidence

of its employees.

Directive Leadership

Directive Leadership provides guidance about what should be done and how to do it, scheduling

work, and maintaining standards of performance. Thus, it may be inferred that

directive leadership is effective as the subordinators has an external locus of Control, lacks

experience, has a high need for clarity or a low need of achievement. Also, when the task is

unstructured, or there is conflict between work groups, a more directive style would be useful.

Supportive Leadership

Supportive Leadership show concern for the needs of the employees, leader is friendly and

approachable. Supportive Leadership would be more suitable for highly structured tasks, under

bureaucratic and formal authority relationship. In supportive Leadership, leader support to their

subordinates officially and some time personally also. Leader always try to fulfill their

requirements, it boost employees moral also.

Achievement Oriented Leadership

Achievement oriented Leadership encourages employees to perform at their highest level by

setting challenging goals, emphasizing excellence and demonstrating confidence in employees

abilities. Achievement Oriented Leadership is largely suitable for unstructured tasks, where the

subordinate need for achievement is high.

Group & Team Working:

What Is a Group?

A group in the workplace is usually made up of three or more people who recognize themselves
as a distinct unit or department, but who actually work independently of each other. For example,
a small business may have a client services group, but one person may focus on local clients, one
person may focus on regional clients and a third person may assist those individuals. Also,
groups tend to be permanent fixtures with ongoing goals or responsibilities.
What Is a Team?

A team consists three or more people who may come from different departments within a
business, but collaborate on the same purpose, goal or project. For instance, before your business
creates a new product, you might organize a team composed of people from all departments –
engineering, finance, legal, marketing, etc. – to think through your potential new product and
avoid costly surprises down the road. With a team, individuals recognize the expertise and talents
of others needed to achieve the team’s goal. Additionally, teams are often formed for temporary
assignments with one specific goal, focus or outcome in mind.

Why Form Groups?

Managers recognized many years ago that two heads are better than one, thus small businesses
have turned to groups or departments for many reasons. With group work, members have a
shared knowledge of the group’s objectives, but specific tasks or responsibilities are assigned to
different individuals. By separating work into groups – such as one devoted to marketing, one
devoted to accounting, etc. – individuals within those groups are able to maximize their expertise
on a long-term basis.

Why Form Teams?

Businesses form teams usually to tackle a specific – and usually temporary – goal or project with
the intent of leveraging the collective expertise of a variety of people. Because experts from
various departments are involved, teams can avoid potential problems early on in a project. For
instance, a team of only engineers may create a new product but may not understand whether it’s
affordable until someone with a finance background completes a “return on investment” or ROI
analysis on its feasibility.

Having a finance member involved in the team from the beginning will help the engineers to
create an affordable product in the first place, saving time and resources. Teams can be very
productive because involving people with different talents provides teams with increased
opportunities to work more efficiently.

Types of Groups
Groups may be formal, brought together for a particular purpose, or they may be informal such
as family groups, groups of friends or colleagues. You may come into contact or work with a
range of different groups.

These types of group may include:

• Work Groups: Either formal, such as teams, committees or training groups, or informal
maybe setup to tackle an ad-hoc problem.

• Neighborhood Groups: An example of a neighborhood group would be one established

to develop local amenities.

• Social Groups | Special Interest groups: These are groups established to meet the
needs of a particular sector (e.g. age group, gender) or interests (e.g. music or sports).
Examples include Women’s Institute and Scouts.

• Self-Help Groups: Such groups are often established to work through particular
emotions or to provide support for people with a certain illness, e.g. helping to overcome
an addiction such as Alcoholics Anonymous.

• Inter-Agency Groups: These are developed between agencies/organizations that work

in related fields to improve product and/or client services. In addition, they aid
communication and establish joint ventures to prevent duplication and confusion.

• Pressure Groups: The function of pressure groups is to challenge the status quo, often
by using high profile tactics to gain media attention to achieve their aims.

Task-Based and Experience-Based Groups

Groups can also be sub-divided in two ways:

Groups established to carry out specific tasks are known as task-based groups, such as pressure
groups.

Groups which are based on the experiences of their members are known as experience-based
groups, such as a self-help group. The distinction between task-based groups and experience-
based groups is important because it affects how the group is formed, organized, led and what
roles the individual group members play.

Task-Based or Content Groups

These types of group focus on the achievement of specific goals and the individual members of
the group work towards completing these goals. These types of group are common in
organizations and include groups set up to work on specific projects – perhaps the design of a
new product.

Experience-Based or Process Groups

These types of group focus on the individual group members and how they interact, support and
grow together, an example would be a group established to support people suffering from stress.

HRM

Before we define HRM, it seems pertinent to first define the term ‘human resources’. In common

parlance, human resources means the people. However, different management experts have

defined human resources differently. For example, Michael J. Jucius has defined human

resources as “a whole consisting of inter-related, inter-dependent and interacting physiological,

psychological, sociological and ethical components”.

According to Leon C. Megginson “From the national point of view human resources are

knowledge, skills, creative abilities, talents, and attitudes obtained in the population; whereas

from the view-point of the individual enterprise, they represent the total of the inherent abilities,

acquired knowledge and skills as exemplified in the talents and aptitude of its employees”.

Sumantra Ghosal considers human resources as human capital. He classifies human capita into

three categories-intellectual capitals, social capital and emotional capital. Intellectual capital
consists of specialized knowledge, tacit knowledge and skills, cognitive complexity, and learning

capacity.

Social capital is made up of network of relationships, sociability, and trustworthiness Emotional

capital consists of self-confidence, ambition and courage, risk-bearing ability, and resilience.

Now it is clear from above definitions that human resources refer to the qualitative and

quantitative aspects of employees working in an organisation.

Let us now define human resource management.

In simple words, HRM is a process of making the efficient and effective use of human resources

so that the set goals are achieved. Let us also consider some important definitions of HRM.

According to Flippo “Personnel management, or say, human resource management is the

planning, organising, directing and controlling of the procurement development compensation

integration, 4intenance, and separation of human resources to the end that individual,

organisational and social objectives are accomplished”.

The National Institute of Personnel Management (NIPM) of India has defined human

resource/personnel management as “that part of management which is concerned with people at

work and with their relationship within an enterprise. Its aim is to bring together and develop

into an effective organisation of the men and women who make up an enterprise and having

regard for the well-being of the individuals and of working groups, to enable them to make their

best contribution to its success”.

According to Decenzo and Robbins “HRM is concerned with the people dimension in

management. Since every organisation is made up of people, acquiring their services, developing
their skills, motivating them to higher levels of performance and ensuring that they continue to

maintain their commitment to the organisation are essential to achieving organisational

objectives. This is true, regardless of the type of organisation-government, business, education,

health, recreation, or social action”.

Thus, HRM can be defined as a process of procuring, developing and maintaining competent

human resources in the organization so that the goals of an organization are achieved in an

effective and efficient manner. In short, HRM is an art of managing people at work in such a

manner that they give their best to the organization for achieving its set goals.

Objectives:

The primary objective of HRM is to ensure the availability of right people for right jobs so as the

organizational goals are achieved effectively.

This primary objective can further be divided into the following sub-objectives:

1. To help the organization to attain its goals effectively and efficiently by providing competent

and motivated employees.

2. To utilize the available human resources effectively.

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3. To increase to the fullest the employee’s job satisfaction and self-actualization.

4. To develop and maintain the quality of work life (QWL) which makes employment in the

organization a desirable personal and social situation.

5. To help maintain ethical policies and behavior inside and outside the organization.

6. To establish and maintain cordial relations between employees and management.

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7. To reconcile individual/group goals with organizational goals.

Werther and Davis have classified the objectives of HRM into four categories as shown in table

1.2.

Table 1.2: HRM Objectives and Functions:

Scope:

The scope of HRM is, indeed, very vast and wide. It includes all activities starting from

manpower planning till employee leaves the organization. Accordingly, the scope of HRM

consists of acquisition, development, maintenance/retention, and control of human resources in

the organization (see figure 1.1). The same forms the subject matter of HRM. As the subsequent

pages unfold, all these are discussed, in detail, in seriatim.

The National Institute of personnel Management, Calcutta has specified the scope of HRM

as follows:

1. The Labor or Personnel Aspect:

This is concerned with manpower planning, recruitment, selection, placement, transfer,

promotion, training and development, lay-off and retrenchment, remuneration, incentives,

productivity, etc.

2. Welfare Aspect:

It deals with working conditions, and amenities such as canteen, creches, rest and lunch rooms,

housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

3. Industrial Relations Aspects:

This covers union-management relations, joint consultation, collective bargaining, grievance and

disciplinary actions, settlement of disputes, etc.

Functions:

We have already defined HRM. The definition of HRM is based on what managers do. The

functions performed by managers are common to all organizations. For the convenience of study,

the function performed by the resource management can broadly be classified into two

categories, viz.

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(1) Managerial functions, and

(2) Operative functions

These are discussed in turn.

(1) Managerial Functions:

Planning:

Planning is a predetermined course of actions. It is a process of determining the organisational

goals and formulation of policies and programmes for achieving them. Thus planning is future

oriented concerned with clearly charting out the desired direction of business activities in future.

Forecasting is one of the important elements in the planning process. Other functions of

managers depend on planning function.

Organising:

Organising is a process by which the structure and allocation of jobs are determined. Thus

organising involves giving each subordinate a specific task establishing departments, delegating
authority to subordinates, establishing channels of authority and communication, coordinating

the work of subordinates, and so on.

Staffing:

TOs is a process by which managers select, train, promote and retire their subordinates This

involves deciding what type of people should be hired, recruiting prospective employees,

selecting employees, setting performance standard, compensating employees, evaluating

performance, counseling employees, training and developing employees.

Directing/Leading:

Directing is the process of activating group efforts to achieve the desired goals. It includes

activities like getting subordinates to get the job done, maintaining morale motivating

subordinates etc. for achieving the goals of the organisation.

Controlling:
It is the process of setting standards for performance, checking to see how actual performance

compares with these set standards, and taking corrective actions as needed.

(2) Operative Functions:

The operative, also called, service functions are those which are relevant to specific department.

These functions vary from department to department depending on the nature of the department

Viewed from this standpoint, the operative functions of HRM relate to ensuring right people for

right jobs at right times. These functions include procurement, development, compensation, and

maintenance functions of HRM.

A brief description of these follows:

Procurement:

It involves procuring the right kind of people in appropriate number to be placed in the

organisation. It consists of activities such as manpower planning, recruitment, selection

placement and induction or orientation of new employees.

Development:

This function involves activities meant to improve the knowledge, skills aptitudes and values of

employees so as to enable them to perform their jobs in a better manner in future. These

functions may comprise training to employees, executive training to develop managers,

organisation development to strike a better fit between organisational climate/culture and

employees.

Compensation:

Compensation function involves determination of wages and salaries matching with contribution

made by employees to organisational goals. In other words, this function ensures equitable and
fair remuneration for employees in the organisation. It consists of activities such as job

evaluation, wage and salary administration, bonus, incentives, etc.

Maintenance:

It is concerned with protecting and promoting employees while at work. For this purpose virus

benefits such as housing, medical, educational, transport facilities, etc. are provided to the

employees. Several social security measures such as provident fund, pension, gratuity, group

insurance, etc. are also arranged.

It is important to note that the managerial and operative functions of HRM are performed in

conjunction with each other in an organisation, be large or small organisations. Having discussed

the scope and functions of HRM, now it seems pertinent to delineate the HRM scenario in India.

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