Professional Documents
Culture Documents
Explain
his model of Ideal Type of Bureaucracy.
Answer
Max Weber (1864–1920) is regarded as one of the founders of the modern discipline of
sociology. He described the relationship of the state so society, famously defining the
state as ‘a human community that (successfully) claims the monopoly of the legitimate
use of physical force within a given territory’. Here he describes the workings of the
bureaucracy, either as it enacts the power of the state, or in bureaucratically managed
private enterprises.
He also instituted the belief that an organization must have a defined hierarchical structure and
clear rules, regulations, and lines of authority which govern it. Max Weber bureaucracy ideally
has the following characteristics:
Specialization of labour
A formal set of rules and regulations
Well-defined hierarchy within the organization
Impersonality in the application of rules
In traditional structures, the leader delegates duties and can change them at any time.
However, over time, this changed and there was a clear specification
of jurisdiction areas along with a distribution of activities as official duties.
In a bureaucratic organization, the subordinates follow the order of superiors but can
appeal if they feel the need. On the other hand, in traditional structures, the authority
was diffused.
Rules are exhaustive, stable, and employees can learn them easily. Further, the
organization records them in permanent files.
Personal property is separate from the office property. Also, the means of production
or administration belong to the office.
The selection of officials is based on technical qualification and appointment and not
an election. Further, officials receive a salary as compensation for their work.
The official is taken in for a trial period and then offered a permanent position with the
organization. This protects him from arbitrary dismissal.
Max Weber listed six major principles of the bureaucratic form as follows: According to
Weber, these are the six characteristics of bureaucracy:
The rules are inflexible and rigid. Further, there is too much emphasis on these rules
and regulations.
Informal groups do not receive any importance. In current times, informal groups play
a huge role in most business organizations.
The rules and formalities lead to an unnecessary delay in the decision-making process.
Question 2- What are the various principles and types of Budget Making
Answer 2
A budget is a quantitative plan for acquiring and using resources over a specified period.
Individuals often create household budgets that balance their income and expenditures for
food, clothing, housing, and so on while providing for some savings.
1. Incremental budgeting
Incremental budgeting takes last year’s actual figures and adds or subtracts a percentage to
obtain the current year’s budget. It is the most common method of budgeting because it is
simple and easy to understand. Incremental budgeting is appropriate to use if the
primary cost drivers do not change from year to year. However, there are some problems
with using the method:
Value proposition budgeting is really a mindset about making sure that everything that is
included in the budget delivers value for the business. Value proposition budgeting aims to
avoid unnecessary expenditures – although it is not as precisely aimed at that goal as our final
budgeting option, zero-based budgeting.
4. Zero-based budgeting
As one of the most commonly used budgeting methods, zero-based budgeting starts with the
assumption that all department budgets are zero and must be rebuilt from scratch. Managers
must be able to justify every single expense. No expenditures are automatically “okayed”.
Zero-based budgeting is very tight, aiming to avoid any and all expenditures that are not
considered absolutely essential to the company’s successful (profitable) operation. This kind
of bottom-up budgeting can be a highly effective way to “shake things up”.
The zero-based approach is good to use when there is an urgent need for cost containment,
for example, in a situation where a company is going through a financial restructuring or a
major economic or market downturn that requires it to reduce the budget dramatically.
Zero-based budgeting is best suited for addressing discretionary costs rather than essential
operating costs. However, it can be an extremely time-consuming approach, so many
companies only use this approach occasionally.
There are a few principles followed in budget preparation exercise. These are as follows:
1. Principle of Annuality
This implies that a budget is prepared every year on annual basis. One year is considered
ideal period for budget because it’s an optimum period for which the legislature can afford to
give financial authority to the executive. Further, executive also needs this much time to
implement the budget proposals effectively. Further, a year corresponds with the customary
measures of human estimates.
Annuality in budget formation is a widespread phenomenon. In some countries of OECD,
yearly budgets are now framed within a multi-year framework.
2. Rule of Lapse
Principle of Annuality also implies that the money left unspent in a year must also lapse to
the public treasury and government should not be able to spend it unless it is re-sanctioned in
next year’s budget. This is called Rule of Lapse and is useful as an effective tool of financial
control.
3. Fiscal Discipline
Budget should be balanced and should be able to display congruence between the income and
expenditure. This is known as Fiscal Discipline and it adheres to the Keynesian School of
Thought. Fiscal discipline helps to eliminate fiscal deficits and offset fiscal surplus.
4. Inclusiveness
Budget should be comprehensive and inclusive of diverse budget estimates. An inclusive
budget includes all government revenue and expenditures and helps evaluating the much-
required trade-offs between different policy options.
5. Accuracy
Budget figures are essentially predictions of the amount of money to be generated in the
forthcoming year and its expenditure. The Finance Ministry is accountable for its formulation
with the help of the data and material from the various departments. These estimates need to
be accurate and precise. The preciseness is dependent real and credible input data,
information and unbiased information.
6. Transparency and Accountability
Budget transparency and accountability are two of the eight basic indicators of good
governance as propounded by United Nations. Budget transparency implies that government
gives out all data regarding budget. These two traits of budget also involve ethics on the part
of the Government. For the sake of clarity and transparency, the revenue and capital portion
of the budget are kept separate.
Budgetary Governance
Budgetary governance is the process of formulating the annual budget, overseeing its
implementation and ensuring its alignment with public goals. The Recommendation on
Budgetary Governance sets out ten principles which provide concise overview of good
practices across the full spectrum of budget activity and aim to give practical guidance for
designing, implementing and improving budget systems to make a positive impact on
citizens’ lives.
1. Manage budgets within clear, credible and predictable limits for fiscal policy.
2. Closely align budgets with the medium-term strategic priorities of government.
3. Design the capital budgeting framework in order to meet national development needs
in a cost-effective and coherent manner.
4. Ensure that budget documents and data are open, transparent and accessible.
5. Provide for an inclusive, participative and realistic debate on budgetary choices.
6. Present a comprehensive, accurate and reliable account of the public finances.
7. Actively plan, manage and monitor budget execution.
8. Ensure that performance, evaluation and value for money are integral to the budget
process.
9. Identify, assess and manage prudently longer-term sustainability and other fiscal risks.
10. Promote the integrity and quality of budgetary forecasts, fiscal plans and budgetary
implementation through rigorous quality assurance including independent audit.
Answer
Rensis Likert and his associates studied the patterns and styles of managers for three decades
at the University of Michigan, USA, and identified a four-fold model of management
systems. The model was developed on the basis of a questionnaire administered to managers
in over 200 organizations and research into the performance characteristics of different types
of organizations. The four systems of management system or the four leadership styles
identified by Likert are:
The nature of these four management systems has been described by Likert through a profile
of organizational characteristics. In this profile, the four management systems have been
compared with one another on the basis of certain organizational variables which are:
Leadership processes
Motivational forces
Communication process
Interaction-influence process
Decision-making process
Goal-setting or ordering
Control processes
Advantages
With the help of the profile developed by Likert, it became possible to quantify the results of
the work done in the field of group dynamics. Likert theory also facilitated the measurement
of the “soft” areas of management, such as trust and communication.
Conclusion
Answer
The basic physiological needs are probably fairly apparent—these include the things that are
vital to our survival. Some examples of physiological needs include:
Food
Water
Breathing
Homeostasis
In addition to the basic requirements of nutrition, air and temperature regulation, the
physiological needs also include such things as shelter and clothing. Maslow also included
sexual reproduction in this level of the hierarchy of needs since it is essential to the survival
and propagation of the species.
As we move up to the second level of Maslow’s hierarchy of needs, the requirements start to
become a bit more complex. At this level, the needs for security and safety become primary.
People want control and order in their lives. So, this need for safety and security contributes
largely to behaviours at this level. Some of the basic security and safety needs include:
Financial security
Health and wellness
Safety against accidents and injury
Finding a job, obtaining health insurance and health care, contributing money to a savings
account, and moving into a safer neighbourhood are all examples of actions motivated by the
security and safety needs. Together, the safety and physiological levels of the hierarchy make
up what is often referred to as the basic needs.
Social Needs
The social needs in Maslow’s hierarchy include such things as love, acceptance, and
belonging. At this level, the need for emotional relationships drives human behaviour. Some
of the things that satisfy this need include:
Friendships
Romantic attachments
Family
Social groups
Community groups
Churches and religious organizations
In order to avoid problems such as loneliness, depression, and anxiety, it is important for
people to feel loved and accepted by other people. Personal relationships with friends, family,
and lovers play an important role, as does involvement in other groups that might include
religious groups, sports teams, book clubs, and other group activities.
Esteem Needs
At the fourth level in Maslow’s hierarchy is the need for appreciation and respect. When the
needs at the bottom three levels have been satisfied, the esteem needs begin to play a more
prominent role in motivating behaviour.
At this point, it becomes increasingly important to gain the respect and appreciation of others.
People have a need to accomplish things and then have their efforts recognized. In addition to
the need for feelings of accomplishment and prestige, esteem needs include such things
as self-esteem and personal worth.
Self-Actualization Needs
At the very peak of Maslow’s hierarchy are the self-actualization needs. "What a man can be,
he must be," Maslow explained, referring to the need people have to achieve their full
potential as human beings.
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 dissatisfiers 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 equipment 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.
Question 4
Answer
Anti-Corruption Policy
Public administration
Vigilance
Law and Management
Finance including insurance and banking
Section 25 of the Lokpal Act 2013 deals with the powers of Lokpal. The provision states that
once the Lokpal receives a complaint governing under the Prevention of Corruption Act
1988, it can initiate the investigation. If the complaint is found to be true in the investigation,
then he can ask the government to take disciplinary action against the concerned public
servants or file a corruption case in a special court.
Working of Lokayuktas
In spite of several attempts on the introduction of the Lokpal Bill, the institution of the
Ombudsman (called Lokpal) has not been established at the Centre. However, some states
have adopted the Ombudsman system (called Lokayukta) with the institution of Lokayukta
being established in several States with an enactment of a statute. Some states have even
Uplokayuktas been appointed. In India, the first state was Maharashtra to introduce Lokaykta
through the Maharashtra Lokayukta and Uplokayuktas Act in 1971. Presently there are no
Lokayuktas in the states of Andhra Pradesh, Arunachal Pradesh, Jammu and Kashmir,
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tamil Nadu, Tripura and West Bengal.
The Lokayukta under the State Acts is generally a retired Judge of the Supreme Court or a
retired Chief Justice or Judge of a High Court. The appointment of Lokayukta is done by the
Governor as a result of consultation between the Chief Minister, Chief Justice of High Court
concerned and the Leader of the Opposition. But notably, the entire appointment procedure is
solely reliant on the opinion of the Chief Justice who has the primacy to recommend names
of a retired Chief Justice or a Judge.
The tenure of Lokayukta is for five or six years, he gets the same salary, perquisites and
privileges which he was enjoying as a Judge or Chief Justice before retirement. In states
where the Lokayukta is appointed, provision is made for the role of Uplokayukt to share the
workload of the Lokayukta but mainly the complaints against ministers and officers of the
rank of Secretary are generally to be enquired into by the Lokayukta.
The Apex court in the case of Dinesh Trivedi v. Union of India recommended that till the
institution of the ombudsman is constituted, a High-Level Committee to be appointed by the
President in consultation with the Prime Minister and Speaker. Following the disclosures
made in the Vohra Committee Report, the Committee was directed to monitor the
investigation with regard to the nexus between criminals and politicians, bureaucrats, media
persons and some members of the judiciary.
In another case of Justice K.P. Mohapatra v. Ram Chandra Nayak, the Hon’ble Supreme
Court while dealing with functions of Lokpal under section 7 of Orissa Lokpal and
Lokayukta Act, 1995 held that:
“In the context of the functions which are to be discharged by the Lokpal, it is apparent that
they are of utmost importance in seeing that unpolluted administration of the State is
maintained and mal-administration, as defined under Section 2(h), is exposed so that
appropriate action against such maladministration and administrator could be taken. The
investigation which Lokpal is required to carry out is that of quasi-judicial nature which
would envisage not only knowledge of the law, but also of nature and work which is required
to be discharged by an administrator.”
The Lokpal Bill 2018 was passed under Article 252 of the Indian Constitution, which
envisages provision pertaining to the power of Parliament to legislate for two or more States
by consent and adoption of such legislation by any other State. In 2019, Former Supreme
Court Judge Justice Pinaki Chandra Ghose was appointed as India’s first Lokpal, the anti-
corruption ombudsman.
Answer
In fact, Porter and Lawler’s theory is an improvement over Vroom’s expectancy theory. They
posit that motivation does not equal satisfaction or performance. The model suggested by
them encounters some of the simplistic traditional assumptions made about the positive
relationship between satisfaction and performance. They proposed a multi-variate model to
explain the complex relationship that exists between satisfaction and performance.
Effort:
Effort refers to the amount of energy an employee exerts on a given task. How much effort an
employee will put in a task is determined by two factors-
Performance:
One’s effort leads to his/her performance. Both may be equal or may not be. However, the
amount of performance is determined by the amount of labour and the ability and role
perception of the employee. Thus, if an employee possesses less ability and/or makes wrong
role perception, his/her performance may be low in spite of his putting in great efforts.
Satisfaction:
Performance leads to satisfaction. The level of satisfaction depends upon the number of
rewards one achieves. If the number of actual rewards meet or exceed perceived equitable
rewards, the employee will feel satisfied. On the country, if actual rewards fall short of
perceived ones, he/she will be dissatisfied.
Rewards may be of two kinds- intrinsic and extrinsic rewards. Examples of intrinsic rewards
are such as sense of accomplishment and self-actualisation. As regards extrinsic rewards,
these may include working conditions and status. A fair degree of research support that, the
intrinsic rewards are much more likely to produce attitudes about satisfaction that are related
to performance.
There is no denying of the fact that the motivation model proposed by Porter and Lawler is
quite complex than other models of motivation. In fact motivation itself is not a simple cause-
effect relationship rather it is a complex phenomenon Porter and Lawler have attempted to
measure variables such as the values of possible rewards, the perception of effort-rewards
probabilities and role perceptions in deriving satisfaction.
They recommended that the managers should carefully reassess their reward system and
structure. The effort-performance-reward-satisfaction should be made integral to the entire
system of managing men in organisation.
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:
a. Match the abilities and traits of individuals to the requirements of the job by putting
the right person on the right job.
b. 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.
c. Prescribe in concrete terms the actual performance levels expected of the individuals
and these levels should be made attainable.
d. To achieve and maintain motivation, the appropriate reward must be associated with
successful performance.
e. 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.