Professional Documents
Culture Documents
Classical School -
It is on belief that workers only have physical and economic needs. It does not take into account social
needs or job satisfaction. The principles are Hierarchical structure, Specialization, Incentives.
1. Scientific Management.
Frederick W. Taylor was its main proponent. Other major contributors were Frank Gilbreth & Lillian
Gilbreth (a husband‐and‐wife team) , and Henry Gantt.
2. Administrative Management.
Administrative management focuses on the management process and principles of management. Henri
Fayol (French mining engineer) is the major contributor to this school of management thought.
3. Bureaucratic Management.
Max Weber was the major contributor to bureaucratic management. In this manager goes by rules.
Behavioral School -
The behavioral school focused on trying to understand the factors that affect human behavior at work.
1. Human Relations.
The Hawthorne Experiments. A variety of researchers participated in the studies, including Clair Turner,
Fritz J. Roethlisberger, and Elton Mayo, whose respective books on the studies are perhaps the best
known. Some of the best-known contributors include Mary Parker Follett, Chester Barnard, Abraham
Maslow and Renais Likert.
2. Behavioral Science.
The behavioral science school has contributed through its focus on personality, attitudes, values,
motivation, group behavior, leadership, communication, and conflict, among other issues. Some of the
major contributors include Douglas McGregor, Chris Argyris, Frederick Herzberg, although there are
many others.
Contingency School
It emphasizes that there is no one best way to manage and that it depends on various situational
factors. A few of the major contributors include Fred Fiedler, among many others.
Quantitative School
The quantitative school focuses on improving decision making via the application of quantitative
techniques. It includes 1. Management Science and MIS. 2. Production and Operations management.
Systems School
The foundation of systems theory is that all the components of an organization are interrelated, and
that changing one variable might impact many others. The Open Systems Model is based on open
systems theory, which perceives organizations as units that interact with their external environment
rather than being closed and independent units. This OA model is thus based on observing the
relationships of the organization with its external environment and the factors that compose it.
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Mary Parker Follett stressed the importance of an organization establishing common goals for its
employees. She encouraged managers to allow employees to participate in decision making. She
stressed the importance of people rather than techniques - a concept very much before her time.
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Chester Barnard, who was president of New Jersey Bell Telephone Company, introduced the idea of
the informal organization. He is credited with developing the acceptance theory of management,
which emphasizes the willingness of employees to accept that managers have legitimate authority to
act. Barnard felt that four factors affected the willingness of employees to accept authority:
1.The employees must understand the communication.
2.The employees accept the communication as being consistent with the organization's purposes.
3.The employees feel that their actions will be consistent with the needs and desires of the other
employees.
4.The employees feel that they are mentally and physically able to carry out the order.
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Motion Study
The propounder of this concept were Frank and Lillian Gilbreth. He defined motion study as
the “Science of eliminating wastefulness resulting from ill-directed and inefficient motions”. The main
aim of motion study is to find the scheme of least wastage of labour. Subsequently, the scope of
Motion Study was enlarged and it was named as Method Study.
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Time study
Time study is a tried and tested method of work measurement for setting basic times and hence
standard times for carrying out specified work. The aim of time study is to establish a time for a
qualified worker to perform specified work under stated conditions and at a defined rate of working.
Conducted by F.W Taylor.
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Henri Fayol (1841-1925) the first foundations were laid for modern scientific management. His
principles of management and research were published in book ‘General and Industrial Management’
(1916). He was able to synthesize 14 principles of management after years of study, namely:
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain - Hierarchy presents itself in any given organization. A Gang Plank is a temporary
arrangement between two different points to facilitate quick & easy communication
10. Order
11. Equity
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps - Stands for striving for the involvement and unity of the employees.
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A Gantt chart is a type of bar chart, devised by Henry Gantt, an associate of Taylor's in the 1910s, that
illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements
and summary elements of a project.
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Peter Drucker’s Five Basic Operations of the Manager
MBO was first outlined by Peter Drucker in 1954 in his book "The Practice of Management".
There are five basic operations in the work of the manager.
1) A manager sets objectives.
2) A manager organizes.
3) A manager motivates and communicates.
4) The manager establishes targets and yardsticks.
5) A manager develops people, including himself or herself.
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The Big Five personality traits, also known as the five factor model (FFM). The five factors have been
defined as openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism,
often listed under the acronyms OCEAN or CANOE.
Process theories attempt to explain how the process of motivation works in an individual. Individuals
makes choices based on preferences, rewards and accomplishments and therefore managers need to
understand the process of motivation. Four process theories are predominant: Reinforcement, Vroom’s
Expectancy, J Stacy Adam’s Equity, Edwin Locke’s Goal Setting, Cognitive Evaluation Theory, Porter
and Lawler Performance Satisfaction Model, Clark Hull's Drive Reduction Theory.
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Clark Hull's Drive Reduction Theory
Clark Hull theory is based around the concept of homeostasis, the idea that the body actively works to
maintain a certain state of balance or equilibrium. Based on this idea, Hull suggested that all motivation
arises as a result of these biological needs. In his theory, Hull used the term drive to refer to the state of
tension or arousal caused by biological or physiological needs. Thirst, hunger and the need for warmth
are all examples of drives. A drive creates an unpleasant state; a tension that needs to be reduced. In
order to reduce this state of tension, humans and animals seek out ways to fulfill these biological needs.
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Theory of Bounded Rationality
Herbert Simon (1916-2001) is most famous for what is known as the theory of bounded rationality, a
theory about economic decision-making that Simon himself preferred to call “satisficing”, a
combination of two words: “satisfy” and “suffice”.
Contrary to the tenets of classical economics, Simon maintained that individuals do not seek to
maximise their benefit from a particular course of action. Not only can they not get access to all the
information required, but even if they could, their minds would be unable to process it properly. The
human mind necessarily restricts itself. It is, as Simon put it, bounded by “cognitive limits”.
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5 Major Contributions of Herbert Simon towards Management
1. Concept of Organisation:
According to him the best way to analyses an organisation is to find out where and by whom decisions
are made.
2. Decision-making:
Perhaps the greatest contribution of Simon is in the field of decision-making. Decision-making is the
core of management and management is synonymous with decision-making. This is why he has been
referred to as decision theorist.
3. Bounded Rationality:
Simon is of view that man is not completely rational. He has criticized the theories which are based on
the assumptions of complete rationality. Accordingly, managers do not go for maximum satisfaction of a
decision but are satisfied with good enough satisfaction from a decision.
4. Administrative Man:
Simon has given the concept of administrative man as the model of decision-making.
5. Organizational Communication:
According to him, there are three stage in the communication process; initiation, transmittal, and
receipt of information.
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Theory Z
William Ouchi developed Theory Z after making a comparative study of Japanese and American
management practices. Theory Z is an integrated model of motivation. Theory Z suggests that large
complex organisations are human systems and their effectiveness depends on the quality of humanism
used. A type Z organisation has three major features—trust, subtlety and intimacy (IST).
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Argyris Maturity Theory
Argyris Maturity Theory, presented by Chris Argyris. According to this theory, a person's development is
processed along a continuous break of an immaturity situation to a maturity situation. A mature person
is characterized for being active, independent, self-confident and self-controlled. On the contrary, an
immature person is passive, dependant, has lack of confidence and feels need of control by others.
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The Informal Channel Network or Grapevine Network shows the pattern of the communication, i.e.
how the informal communication passes from person to person.
Four distinct types of informal communication network are listed below:
Single Strand Network: Under this communication pattern, the information flows from one person to
the next person in the network and so on. Here, the communication process is linear.
Gossip Chain Network: In the gossip chain network, there is an individual who tells the message to all
other members in the network directly. He is generally the central person who seeks out and transmit
information to all that he has obtained.
Probability Chain Network: There is an individual who acts as a source of message selects any person
randomly in his network to communicate the message. That second person will again, select another
person randomly and passes on the message to him.
Cluster Chain Network: In the cluster chain network, there is an individual who, acts as a source of a
message, transmits information to the pre-selected group of individuals out of whom few individuals
again tell the same message to other selected group of individuals. This is the most common form .
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On-the-job Training Methods:
1. Coaching
2. Mentoring
3. Job Rotation
4. Job Instruction Technology
5. Apprenticeship
6. Understudy
Impoverished Management (1, 1): The leader has low concern for employee satisfaction and work
deadlines. The leaders are termed ineffective wherein their action is merely aimed at preserving job and
seniority.
Task management (9, 1): Also called dictatorial or perish style. Here leaders are more concerned about
production and have less concern for people. The style is based on theory X of McGregor. Such a style
increase the output of organization in short run but high labour turnover is inevitable.
Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to maintain a
balance between goals of company and the needs of people. Here neither employee nor production
needs are fully met.
Country Club (1, 9): This style is characterized by low task and high people orientation. The leader feels
that such a treatment with employees will lead to self-motivation and will find people working hard on
their own. However, a low focus on tasks can hamper production.
Team Management (9, 9): Characterized by high people and task focus, the style is based on the theory
Y of McGregor and has been termed as most effective style according to Blake and Mouton.
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The four systems of management system or the four leadership styles identified by Rensis Likert are:
▪ System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper
echelons of the hierarchy. The decisions are imposed on subordinates. The teamwork or
communication is very little and the motivation is based on threats.
▪ System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the
lower levels of the organizational hierarchy. The teamwork or communication is very little and
motivation is based on a system of rewards.
▪ System 3 - Consultative: The superior has substantial but not complete confidence in subordinates.
There is a fair amount of teamwork, and communication takes place vertically and horizontally. The
motivation is based on rewards and involvement in the job.
Autocratic/Authoritarian – Direct and Control all activities without meaningful participation from
others. This can be used when inexperienced staff and limited time.
Democratic/Participative – Encourage group members to participate but retain final say. Can be used
when resources are capable and complex problems.
Laissez-Faire/Delegative – Little or no guidance to group members. Can be used when experienced staff
and stable environment.
Max Weber categorized authority into three types: traditional, charismatic and legal-rational.
Argyris advocates a process of fusion of individual aspirations with organizational goals, individual skills
with organizational position and individual conduct with organizational role. The emergent three-
dimensional fusion is the basis for Argyris’s fusion model.
Rensis Likert makes the blurred field of application obtained from the studies of Argyris, as a point of
departure. He analyses the blockades inhibiting effective fusion between an organizational and its
members. He advocates a switchover, albeit gradually, from authoritarian to cooperative and
participatory styles.
Before Herzberg, behavioural scientists emphasized on ‘ job enlargement’ or ‘ job rotation’ for worker
motivation. But Herzberg suggested that what we really need is to enrich the job i.e., deliberated
upgrading of the scope of the work as well as responsibility.
Fred W. Riggs used three important analytical approaches ecological, structural-functional, and ideal
models. He made significant contribution to field of comparative & development administration.
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Interests, Conflict, and Power
In Morgan's analysis of organizational politics, he focuses on the relationship between interest, conflict,
and power.
Interests are further divided by Morgan into task interests; career interests; and, extramural interests.
Task interests are related to the work one does 'on the job.' Career interests represent a worker's
"aspirations and visions as to what their future might hold". Extramural interests represent the
combination of beliefs, preferences, values, and other factors possessed by workers that are external to
the organization, but that influence both job performance and careers.
Conflicts, according to Morgan, arise when interests collide.
Power is described as the Medium through which conflicts of interest are ultimately resolve.
Morgan then describes interests, conflict, and power in light of three different organizational frames of
reference: unitary, pluralist, and radical. A unitary frame of reference is one in which organizational
goals are paramount to individual concerns, conflict is managed to make it disappear, and there is tight
control of the organization by a few. In a pluralist frame of reference, differences between group
members are expected, conflict is seen as natural and possible beneficial, and power is derived from a
variety of sources. The radical frame of reference is one in which the organization is comprised of
competing subgroups competing toward "incompatible ends" and conflict is expected.
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Three-Dimensional Grid
The Three-Dimensional Grid or 3-D Leadership Model is developed by Professor Bill Reddin, who
introduced the concept of “situational demands” which talks about the way in which the leader must
behave to be most effective.
The 3-D model has taken into the consideration the beliefs of the managerial grid and added one more
dimension to it i.e. Effectiveness. Thus, three-dimensional axes represent the “task-orientation”,
“relationship orientation” and “effectiveness”. Task orientation means the extent to which the superior
directs his subordinate’s efforts towards the goal attainment. The relationship orientation means the
extent to which the manager has personal relations with his subordinates and finally, the effectiveness
means the extent to which the manager is successful.
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Stephen Lukes (a marxist) said Sociologists should study power as having 3 “faces”.
The first face – The issue method
The person who wins an argument, or an issue, has the power. This fits with the Classical
Pluralist approach to power i.e. a parent wins an argument with their child, so they have the power.
The second face – Setting the Agenda
Lukes said you have real power if you can set the agenda i.e. The chairman in a meeting has the power
as he can decide what is talking about, which means he isn’t at risk of being challenged as he can then
just change the topic of discussion.
The third face – Manipulating the view of others
The third face of power described how power can covert manipulate others to do something they
might not actually want to do by changing what they want.
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French and Raven’s Five Forms of Power -
For simplicity and understanding purposes power is usually classified into following categories:
Coercive Power- This kind of power involves the usage of threat to make people do what one desires.
Reward Power- This type of power uses rewards, perks, better roles to influence people.
Legitimate/Title Power- This power emanates from an official position held by someone.
Expert Power- This is a personal kind of power which owes its genesis to the skills and expertise
possessed by an individual, which is of higher quality and not easily available.
Referent Power- This is a power wielded by celebrities and film stars as they have huge following
amongst masses who like them, identify with them and follow them.
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HRP
The objective of human resource planning is to ensure the best fit between employees and jobs while
avoiding manpower shortages or surpluses.
HCM
Human capital management (HCM) is an approach to employee staffing that perceives people as assets
(human capital) whose current value can be measured and whose future value can be enhanced.
SHCM
HR departments that practice Strategic Human Capital Management do not work independently within
a silo; they interact with other departments within an organization in order to understand their goals
and then create strategies that align with those objectives, as well as those of the organization.
IHRM International Human Resource Management
IHRM is concerned about managing human resources at international level i.e. MNC and it involves
managing 3 types of employees namely-
Home country employees - Employees belonging to home country of the firm where the corporate
head quarter is situated.
Host country employees - Employees belonging to the nation in which the subsidiary is situated.
Third country employees - These are the employees who are not from home country/host country but
are employed at subsidiary or corporate head quarters. As an example an American MNC which has a
subsidiary at India may employ a French person as the CEO to the subsidiary.
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SWOT analysis evaluates a project or business venture’s strengths, weaknesses, opportunities, and
threats. The initials of these factors make up the acronym SWOT. The analysis’ benefit is not limited to
companies or industries only. You can carry out SWOT for products, places, and even people too. Both
new and existing businesses can use it.
There are other tools used to find out an organization’s current status and position. PEST, STEEP, and
STEEPLE analysis. A traditional SWOT analysis is often conducted with either STEEP or STEEPLE analysis.
PEST analysis studies 4 dimensions, like SWOT. The factors considered in PEST are Political, Economical,
Social, and Technological. It studies the opportunities and threats section of SWOT, but in more detail.
STEEP analysis consists of all these factors but has an additional factor. In STEEP analysis, you have to
assess environmental factors too.
STEEPLE analysis is another step ahead. When conducting STEEPLE analysis you have to study Legal and
Ethical factors.
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Porter's Generic Competitive Strategies (ways of competing)
Three generic strategies for achieving above average performance in an industry are -
1. Cost Leadership
In cost leadership, a firm sets out to become the low cost producer in its industry.
2. Differentiation
In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are
widely valued by buyers.
3. Focus The focus strategy has two variants-
(a) In cost focus a firm seeks a cost advantage in its target segment, while in (b) differentiation focus a
firm seeks differentiation in its target segment.
According to Porter, the nature of competition in any industry is personified in the following five forces:
Threat of new potential entrants
Threat of substitute product/services
Bargaining power of suppliers
Bargaining power of buyers
Rivalry among current competitors
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The Resource-Based View (RBV)
This is a model that sees resources as key to superior firm performance. There are two types of
resources: tangible and intangible. The two critical assumptions of RBV are that resources must also be
heterogeneous and immobile.
If a resource exhibits VRIO attributes, the resource enables the firm to gain and sustain competitive
advantage. VRIO framework (Value, Rarity, Imitability, Organization)
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Universal Approach
A universal approach to ethics is based on the concept of moral absolutism: the idea that if something
isn't right in one place or for one person, it is not right for anyone, anywhere. The universal approach is
typically used in cross-cultural situations, but it may also be used in any situation where one party
operates outside of culturally accepted norms.
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David Ulrich is a true HR Management Guru. His HR Model and his HR Roles and Responsibilities
changed Human Resources as we know it. The key HR Roles in the organization are:
1. HR Business Partner
2. Change Agent
3. Administration Expert
4. Employee Advocate
David Ulrich defined the basic scope for Human Resources to become a strategic partner for the top
executives in the company.
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Types of incentive plans –
1) Individual incentive plan : It may either be time based or production based.
i) The time based individual incentive plans are:
Under time based plan a standard time is fixed for doing the job. A worker is said to be efficient if he
completes the job in time and he is given the reward for his efficiency.
a) Halsey plan
b) Rowan plan
c) Emerson plan
d) Bedeaux plan
2) Group incentive plan: Under this method group bonus is given instead of individual bonus. The bonus
is distributed among all the employees of the organization on the different basis which are as follows:
a) Priestman’s plan
b) Profit sharing method
c) Scanlon plan
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Different Types of Communication -
Verbal communication
Verbal communication is a type of communication where the information flows through verbal medium
like words, speeches, presentations etc
Non verbal communication
Facial expressions, gestures, hand and hair movements, body postures all constitute non verbal
communication. Any communication made between two people without words and simply through
facial movements, gestures or hand movements is called as non verbal communication.
Visual Communication
In visual communication, the recipient receives information from signboards, displays, hoardings,
banners, maps etc.
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The components of Non Verbal Communication are:
Kinesics: It is the study of facial expressions, postures & gestures.
Oculesics: It is the study of the role of eye contact in non verbal communication.
Haptics: It is the study of touching.
Proxemics: It is the study of measurable distance between people as they interact.
Chronemics: It is the study of use of time in non verbal communication.
Paralinguistics: It is the study of variations in pitch, speed, volume, and pauses to convey
meaning.
Physical Appearance: Your physical appearance always contributes towards how people
perceive you.
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Phonetics is a part of the English language which helps us to understand sounds of various alphabets.
Phonetics has three divisions:
1. Articulatory Phonetics - It includes the movement of our sensory organs like tongue, lips as
well as our vocal cords to pronounce a particular alphabet.
2. Acoustic phonetics - It is concerned with the frequency and wavelength of our speech.
3. Auditory phonetics - It depends on how our brain and ears perceive the sound.
Homophones are the words which have different meanings but are pronounced in exactly the same
way. Different meanings but exactly the same sound. Peace and Piece are again examples of
Homophones.
There are some homophones which have different meanings but have similar spellings. Such words are
called Homonyms or Homographs. Bash and Bash are homonyms as their spellings are exactly the same
but one bash refers to a good beating and the other means a Party. Rose also means a flower and also is
the opposite of rise-another example of homonyms.
Homophones which are spelled differently are called as heterographs. In the above example, peace
and piece are heterographs.
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Communication Theory Framework
Let us examine communication and communication theory through the following viewpoints:
Mechanistic - The mechanistic view point says that communication is simply the transmission
of information from the first party to the second party. The first party being the sender and the
second party being the receiver.
Psychological - According to the psychological view point, communication is simply not the flow
of information from the sender to the receiver but actually the thoughts, feelings of the sender
which he tries to share with the recepients. It also includes the reactions, feelings of the
receiver after he decodes the information.
Social - The social view point considers communication as a result of interaction between the
sender and the receiver. It simply says that communication is directly dependent on the
content of the speech. “How one communicates” is the basis of the social view point.
Systemic - The systemic view point says that communication is actually a new and a different
message which is created when various individuals interpret it in their own way and then
reinterpret it and draw their own conclusion.
Critical - The critical view point says that communication is simply a way with the help of which
an individual expresses his power and authority among other individuals.
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Communication theory was proposed by S. F. Scudder in the year 1980. It states that all living beings
existing on the planet communicate although the way of communication is different.
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Weber’s Classic Organizational Theory of Fixed Structures
Weberian theory holds that organizations have clearly defined roles and responsibilities and hence
communication is hierarchical, structured, and clear. There is no scope for confusion in the messages
being sent from the top (the theory is inherently a top down one) and hence organizations have rigid
machine like structures where each individual contributes by way of defined and unambiguous roles
and responsibilities.
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Tompkins and Cheney’s Organizational Control Theory
This theory holds that there are four kinds of control that determine how organizations exercise power
within and they are simple, technical, bureaucratic, and concertive. In a way, these four types of
control are defined according to the progression of the organization from very simple organizational
models to pure bureaucracies to overly technical and finally an organization where everyone knows
what is expected of him or her. The point here is that Tompkins and Cheney posit a model where
control and communication is more than what Weber had envisaged and less than what post modern
theorists say about organizational control and communication.
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Deetz’s Managerialism Theory
The highlight of this theory is that Deetz goes beyond fixed notions of organizations and instead, posits
a view of organizations that take into account the democratic aspirations of the people and the power
centers in the organization. This combination of recognizing the fact that meaning lies in people and
not their words and to find out the interests behind these meanings is indeed a progression from the
faceless and nameless bureaucratic model of Weber and the slightly improved control theory of
Tompkins and Cheney.
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Aristotle Model of Communication
According to this model, the speaker plays a key role in communication. He is the one who takes
complete charge of the communication. The sender first prepares a content which he does by carefully
putting his thoughts in words with an objective of influencing the listeners or the recipients, who would
then respond in the sender’s desired way. No points in guessing that the content has to be very very
impressive in this model for the audience or the receivers to get convinced. The model says that the
speaker communicates in such a way that the listeners get influenced and respond accordingly.
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Berlo’s Model of Communication
The Berlo’s model of communication takes into account the emotional aspect of the message. Berlo’s
model of communication operates on the SMCR model. In the SMCR model
S - Stands for Source - The source in other words also called the sender is the one from whom
the thought originates.
M – Message - When an individual converts his thoughts into words, a message is created. The
process is also called as Encoding.
C – Channel - Channel actually refers to the medium how the information flows from the sender
to the receiver.
R – Receiver - When the message reaches the receiver, he tries to understand what the listener
actually wants to convey and then responds accordingly. This is also called as decoding.
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Shannon Weaver model of communication
When Claude Shannon wrote an article "A Mathematical Theory of Communication" with Warren
Weaver. The Mathematical theory later came to be known as Shannon Weaver model of
communication or “mother of all models." This model is more technological than other linear models.
Concepts in Shannon Weaver Model -
Sender (Information source)
Encoder (Transmitter)
Channel
Decoder (Receiver)
Receiver (Destination)
Noise
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Schramm’s Model of Communication
According to Schramm’s model, whenever the information reaches the recipient, it becomes his
responsibility to give the feedback and let him know if he has downloaded the message in exactly the
same manner the speaker wanted. If he is not clear with anything or has any doubts, it must be cleared
with the speaker. Thus when the speaker conveys any message to the listener, the listener, decodes the
message and once again passes the message to the speaker after understanding it and completing the
full circle.
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Helical Model of Communication
According to the Helical model as the process of communication moves forward it also comes back and
is largely dependant on the past behaviour of the individual. The model believes that communication
process is just like a helix which moves forward as well as comes backward and is dependent on the
behaviour patterns of the past definitely with some modifications and changes.
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Westley and MacLean’s model of communication
It believes that communication doesn’t start from day one but actually begins when the speaker
receives signals or messages from his external surroundings. To conclude this model of communication
supports the initiation of communication from receiving messages rather than the sender sending it.
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Open Door Policy
According to open door policy, the doors of the offices of superiors or the management (including the
CEO) must remain open for the employees to have an easy access in cases of queries.
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Major school’s of ethics that are often taught in business ethics programs :-
Immanuel Kant’s Categorical Imperative (1700s)
Kant asserted that a belief is an ethical principle if, and only if, it applies with everyone all the time
everywhere, that is, if the principle should be a universal law. Thus, the Golden Rule might qualify as an
ethical principle.
John Stuart Mill’s Utilitarianism (1800s)
Mill asserted that a belief is an ethical principle if it results in the greatest good for the most people.
Thus, some people might belief that an economic strategy to “spread the wealth” is also a highly ethical
strategy.
Joseph Fletcher’s Situational Ethics (1900s)
Fletcher also asserted that a moral law depends on the current situation. However, he also asserted a
principle should be a moral law only if it contributed to love. Thus, Fletcher’s assertion might have
contributed to – or justified – the “free love” movement in the 1960s.
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McGehee and Thayer recommend the following three-tier approach to determine the training needs:
(1) Organisational analysis, to determine where training emphasis should be placed within the
organisation;
(2) Operations analysis, to decide what the training should consist of, requiring a study of what a
person should be taught if he is to perform his task with the maximum effectiveness; and
(3) Man analysis, to determine who needs to be trained and what skills, knowledge or attitudes should
be augmented or improved.
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Rabble Hypothesis Theory
The discrediting of the 'rabble hypothesis' theory - based on the assumption that individuals only
pursue self-interest - led directly to the work of McGregor (Theory X and Theory Y) with its wider
implications for leadership and organisation.
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Rational Goal Approach
The rational goal approach focuses on the organization's ability to achieve its goals. The organization is
evaluated by comparing the activities accomplished with those planned for.
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Scanlon Plan
The Scanlon plan is a gainsharing program in which employees share in pre-established cost savings,
based upon employee effort. Formal employee participation is necessary with the Scanlon Plan, as well
as periodic progress reporting and an incentive formula.
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The three most commonly used Appraisal Review Reports as quality control tools.
These tools are: The Electronic Appraisal Review; the Desk Review; and the Field Review.
They are listed in the order of the least comprehensive to the most comprehensive.
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PLUS Decision – Making Model - Ethics
P = Policies (It is consistent with my organizations Policies, Procedures and Guidelines)
L = Legal (Is it acceptable under the applicable laws and regulations)
U = Universal (Does it conform to the universal principles values my organizations has adopted)
S = Self (Does it satisfy my personal definition of Right, Good and Fair)
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Total Quality Management
Total Quality management is defined as a continuous effort by the management as well as employees of
a particular organization to ensure long term customer loyalty and customer satisfaction.
Total Quality management can be divided into four categories:
Plan
Do
Check
Act . Also referred to as PDCA cycle.
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Fringe benefits are forms of compensation you provide to employees outside of a stated wage or salary.
Common examples of fringe benefits include medical and dental insurance, use of a company car,
housing allowance, educational assistance, vacation pay, sick pay, meals and employee discounts.
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Employee Welfare
Factories act was enacted in 1948. Facilities provided inside the organisation are intra-mular facilities
and those provided outside the organisation are extra-mular facilities.
Statutory welfare schemes are that schemes that are compulsory to be provided by law for eg changing
room, rest room etc. Non Statutory are not compulsory like work from home etc.
Theories of Employee welfare -
Policing Theory According to this view, the factory and other industrial workplaces provide ample
opportunities for owners and managers of capital to exploit workers in an unfair manner.
Philanthropic Theory It refers to the provision of good working conditions, creches and canteens out of
pity on the part of the employers who want to remove the disabilities of the workers.
Paternalistic Theory This also called the trusteeship theory. The property which industrialist or the
employer can use or abuse as he/she likes is not entirely his/her own. He/she holds it for his/her use, no
doubt, but also for the benefit of his/her workers, if not for the whole society.
Placating Theory Workers are like children who are intelligent, but not fully so. As crying children are
pacified by sweets, workers should be pleased by welfare works.
Public Relations Theory According to this theory, welfare activities are provided to create a good
impression on the minds of the workers and the public, particularly the latter.
Functional Theory Also known as the efficiency theory of labour welfare, the functional theory implies
that welfare facilities are provided to make the workers more efficient.
Social Theory The social theory implies that a factory is morally bound to improve the conditions of the
society in addition to improving the condition of its employees
Religion Theory The religion theory has two investment and atonement aspects. The investment aspect
of the religion theory implies that the fruits of today’s deeds will be reaped tomorrow. The atonement
aspect of the religion theory implies that the present disabilities of a person are the result of the sins
committed by him/her previously.
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Training Development
Focus Current Future
Tactical vs Strategic Tactical Strategic
Use of Work Experience Low High
Goal Success in current job Success in current and future job
Participation Required Voluntary
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Edward De Bono - Six Thinking Hats
The White Hat calls for information known or needed. "The facts, just the facts."
The Yellow Hat symbolizes brightness and optimism. Under this hat you explore the positives and probe
for value and benefit.
The Black Hat is judgment - why something may not work. Spot the difficulties and dangers; where
things might go wrong. Probably the most powerful and useful of the Hats but a problem if overused.
The Red Hat signifies feelings, hunches and intuition. When using this hat you can express emotions and
feelings and share fears, likes, dislikes, loves, and hates.
The Green Hat focuses on creativity, possibilities, alternatives, and new ideas. It's an opportunity to
express new concepts and new perceptions.
The Blue Hat is used to manage the thinking process. It's the control mechanism that ensures the Six
Thinking Hats guidelines are observed.
1. Formal (or Informal). Informal socialization takes place in the course of the job.
2. Individual (or Collective).
3. Sequential (or Non-Sequential). Sequential strategies are based on a set of discrete steps. Non-
Sequential strategies do not involve discrete steps; they could include one-time sessions.
4. Fixed (or Variable). Fixed processes provide the recruit with precise knowledge about the time it will
take him to complete a given step; variable processes do not.
5. Tournament (or Contest). In Tournament as time passes candidates are sorted according to potential
(fast), in contest all individuals passes through all stages (slow).
6. Serial (or Disjunctive). The serial process is one in which old members of an organization, groom new
members to take over. Disjunctive processes give room for innovation and creativity.
7. Investiture (or Divestiture). Investiture socialization assumes that the newcomer’s qualities and
qualifications are the necessary for job success, so these qualities and qualifications are confirmed and
supported. Divestiture socialization tries to strip away certain characteristics of the recruit.
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Mechanistic structures are typified by narrow spans of control; high centralization, specialization, and
formalization; as well as by rigid departmentalization. And the chain of command, whether long or
short, is always clear. Tall structure is a structure that has many hierarchical levels and narrow spans of
control.
Organic structures (also known as “flat” structures) are typified by wide spans of control;
decentralization; low specialization and formalization; and loose departmentalization. And the chain of
command, whether long or short, can sometimes be difficult to decipher.
Matrix Org Structure All employees have dual reporting relationships. Typically, there is a functional
reporting line as well as a product- based reporting line. The main appeal of the matrix structure is that
it can provide both flexibility and more balanced decision-making (as there are two chains of command
instead of just one). Its primary pitfall: complexity, which can lead to confused employees.
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Myers-Briggs Theory
It consists of 16 types. There are four preferences.
People and things (Extraversion or "E"), or ideas and information (Introversion or "I").
Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or "N").
Logic and truth (Thinking or "T"), or values and relationship (Feeling or "F").
A lifestyle that is well-structured (Judgment or "J"), or one that goes with the flow (Perception or "P").
You combine the letters associated with your preferences to get your Myers Briggs personality type. For
example, having preferences for E, S, T and J gives a personality type of ESTJ.
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People Performance Model -
low potential high potential