Set – I

Questions

Question
1. Define the term Planning. Discuss various steps in Planning.
Ans :
Planning is the process of thinking regarding the activities required to achieve a desired
goal. Planning is based on foresight, the fundamental capacity for mental time travel.
The evolution of forethought, the capacity to think ahead, is considered to have been a
prime mover in human evolution.
Planning is a fundamental property of intelligent behavior. It involves the use of logic
and imagination to visualise not only a desired end result, but the steps necessary to
achieve that result.An important aspect of planning is its relationship to forecasting.
Forecasting aims to predict what the future will look like, while planning imagines what
the future could look like.
Planning according to established principles is a core part of many professional
occupations, particularly in fields such as management and business. Once a plan has
been developed it is possible to measure and assess progress, efficiency and
effectiveness. As circumstances change, plans may need to be modified or even
abandoned.

Following are the various steps iin planning :

The planning function of management is one of the most crucial ones. It involves setting
the goals of the company and then managing the resources to achieve such goals. As
you can imagine it is a systematic process involving eight well thought out steps. Let us
take a look at the planning process.

1] Recognizing Need for Action

An important part of the planning process is to be aware of the business opportunities in
the firm’s external environment as well as within the firm. Once such opportunities get
recognized the managers can recognize the actions that need to be taken to realize
them. A realistic look must be taken at the prospect of these new opportunities and
SWOT analysis should be done.

Say for example the government plans on promoting cottage industries in semi-urban
areas. A firm can look to explore this opportunity.

2] Setting Objectives
This is the second and perhaps the most important step of the planning process. Here
we establish the objectives for the whole organization and also individual departments.
Organizational objectives provide a general direction, objectives of departments will be
more planned and detailed.

Objectives can be long term and short term as well. They indicate the end result the
company wishes to achieve. So objectives will percolate down from the managers and
will also guide and push the employees in the correct direction.

3] Developing Premises
Planning is always done keeping the future in mind, however, the future is always
uncertain. So in the function of management certain assumptions will have to be made.
These assumptions are the premises. Such assumptions are made in the form of
forecasts, existing plans, past policies, etc.

These planning premises are also of two types – internal and external. External
assumptions deal with factors such as political environment, social environment, the
advancement of technology, competition, government policies, etc. Internal assumptions
deal with policies, availability of resources, quality of management, etc.

These assumptions being made should be uniform across the organization. All
managers should be aware of these premises and should agree with them.

4] Identifying Alternatives
The fourth step of the planning process is to identify the alternatives available to the
managers. There is no one way to achieve the objectives of the firm, there is a multitude
of choices. All of these alternative courses should be identified. There must be options
available to the manager.

Maybe he chooses an innovative alternative hoping for more efficient results. If he does
not want to experiment he will stick to the more routine course of action. The problem
with this step is not finding the alternatives but narrowing them down to a reasonable
amount of choices so all of them can be thoroughly evaluated.

5] Examining Alternate Course of Action

The next step of the planning process is to evaluate and closely examine each of the
alternative plans. Every option will go through an examination where all there pros and
cons will be weighed. The alternative plans need to be evaluated in light of the
organizational objectives.
For example, if it is a financial plan. Then it that case its risk-return evaluation will be
done. Detailed calculation and analysis are done to ensure that the plan is capable of
achieving the objectives in the best and most efficient manner possible.

6] Selecting the Alternative

Finally, we reach the decision making stage of the planning process. Now the best and
most feasible plan will be chosen to be implemented. The ideal plan is the most
profitable one with the least amount of negative consequences and is also adaptable to
dynamic situations.

The choice is obviously based on scientific analysis and mathematical equations. But a
managers intuition and experience should also play a big part in this decision.
Sometimes a few different aspects of different plans are combined to come up with the
one ideal plan.

7] Formulating Supporting Plan

Once you have chosen the plan to be implemented, managers will have to come up with
one or more supporting plans. These secondary plans help with the implementation of
the main plan. For example plans to hire more people, train personnel, expand the
office etc are supporting plans for the main plan of launching a new product. So all
these secondary plans are in fact part of the main plan.

8] Implementation of the Plan

And finally, we come to the last step of the planning process, implementation of the
plan. This is when all the other functions of management come into play and the plan is
put into action to achieve the objectives of the organization. The tools required for such
implementation involve the types of plans- procedures, policies, budgets, rules,
standards etc.

Question
2. Discuss the concept of Organizing along with importance of the concept.
Ans :
Concepts of Organizing
The working relationships — vertical and horizontal associations between individuals
and groups — that exist within an organization affect how its activities are accomplished
and coordinated. Effective organizing depends on the mastery of several important
concepts: work specialization, chain of command, authority, delegation, span of control,
and centralization versus decentralization. Many of these concepts are based on the
principles developed by Henri Fayol.
Work specialization

One popular organizational concept is based on the fundamental principle that

employees can work more efficiently if they're allowed to specialize. Work
specialization, sometimes called division of labor, is the degree to which organizational
tasks are divided into separate jobs. Employees within each department perform only
the tasks related to their specialized function.

When specialization is extensive, employees specialize in a single task, such as running

a particular machine in a factory assembly line. Jobs tend to be small, but workers can
perform them efficiently. By contrast, if a single factory employee built an entire
automobile or performed a large number of unrelated jobs in a bottling plant, the results
would be inefficient.

Despite the apparent advantages of specialization, many organizations are moving

away from this principle. With too much specialization, employees are isolated and
perform only small, narrow, boring tasks. In addition, if that person leaves the company,
his specialized knowledge may disappear as well. Many companies are enlarging jobs
to provide greater challenges and creating teams so that employees can rotate among
several jobs.

Chain of command

The chain of command is an unbroken line of authority that links all persons in an
organization and defines who reports to whom. This chain has two underlying principles:
unity of command and scalar principle.

Unity of command: This principle states that an employee should have one and only
one supervisor to whom he or she is directly responsible. No employee should report to
two or more people. Otherwise, the employee may receive conflicting demands or
priorities from several supervisors at once, placing this employee in a no‐win situation.

Sometimes, however, an organization deliberately breaks the chain of command, such

as when a project team is created to work on a special project. In such cases, team
members report to their immediate supervisor and also to a team project leader.
Another example is when a sales representative reports to both an immediate district
supervisor and a marketing specialist, who is coordinating the introduction of a new
product, in the home office.

Nevertheless, these examples are exceptions to the rule. They happen under special
circumstances and usually only within a special type of employee group. For the most
part, however, when allocating tasks to individuals or grouping assignments,
management should ensure that each has one boss, and only one boss, to whom he or
she directly reports.

Scalar principle: The scalar principle refers to a clearly defined line of authority that
includes all employees in the organization. The classical school of management
suggests that there should be a clear and unbroken chain of command linking every
person in the organization with successively higher levels of authority up to and
including the top manager. When organizations grow in size, they tend to get taller, as
more and more levels of management are added. This increases overhead costs, adds
more communication layers, and impacts understanding and access between top and
bottom levels. It can greatly slow decision making and can lead to a loss of contact with
the client or customer.

Authority is the formal and legitimate right of a manager to make decisions, issue
orders, and allocate resources to achieve organizationally desired outcomes. A
manager's authority is defined in his or her job description.

Organizational authority has three important underlying principles:

Authority is based on the organizational position, and anyone in the same position has
the same authority.

Authority is accepted by subordinates. Subordinates comply because they believe that

managers have a legitimate right to issue orders.

Authority flows down the vertical hierarchy. Positions at the top of the hierarchy are
vested with more formal authority than are positions at the bottom.

In addition, authority comes in three types:

Line authority gives a manager the right to direct the work of his or her employees and
make many decisions without consulting others. Line managers are always in charge of
essential activities such as sales, and they are authorized to issue orders to
subordinates down the chain of command.

Staff authority supports line authority by advising, servicing, and assisting, but this type
of authority is typically limited. For example, the assistant to the department head has
staff authority because he or she acts as an extension of that authority. These
assistants can give advice and suggestions, but they don't have to be obeyed. The
department head may also give the assistant the authority to act, such as the right to
sign off on expense reports or memos. In such cases, the directives are given under the
line authority of the boss.

Functional authority is authority delegated to an individual or department over specific

activities undertaken by personnel in other departments. Staff managers may have
functional authority, meaning that they can issue orders down the chain of command
within the very narrow limits of their authority. For example, supervisors in a
manufacturing plant may find that their immediate bosses have line authority over them,
but that someone in corporate headquarters may also have line authority over some of
their activities or decisions.

Why would an organization create positions of functional authority? After all, this
authority breaks the unity of command principle by having individuals report to two
bosses. The answer is that functional authority allows specialization of skills and
improved coordination. This concept was originally suggested by Frederick Taylor. He
separated “planning” from “doing” by establishing a special department to relieve the
laborer and the foreman from the work of planning. The role of the foreman became one
of making sure that planned operations were carried out. The major problem of
functional authority is overlapping relationships, which can be resolved by clearly
designating to individuals which activities their immediate bosses have authority over
and which activities are under the direction of someone else.

Delegation

A concept related to authority is delegation. Delegation is the downward transfer of

authority from a manager to a subordinate. Most organizations today encourage
managers to delegate authority in order to provide maximum flexibility in meeting
customer needs. In addition, delegation leads to empowerment, in that people have the
freedom to contribute ideas and do their jobs in the best possible ways. This
involvement can increase job satisfaction for the individual and frequently results in
better job performance. Without delegation, managers do all the work themselves and
underutilize their workers. The ability to delegate is crucial to managerial success.
Managers need to take four steps if they want to successfully delegate responsibilities
to their teams.

1. Specifically assign tasks to individual team members.The manager needs to make

sure that employees know that they are ultimately responsible for carrying out specific
assignments.

2. Give team members the correct amount of authority to accomplish assignments.

Typically, an employee is assigned authority commensurate with the task. A classical
principle of organization warns managers not to delegate without giving the subordinate
the authority to perform the delegated task. When an employee has responsibility for
the task outcome but little authority, accomplishing the job is possible but difficult. The
subordinate without authority must rely on persuasion and luck to meet performance
expectations. When an employee has authority exceeding responsibility, he or she may
become a tyrant, using authority toward frivolous outcomes.

3. Make sure that team members accept responsibility.

Responsibility is the flip side of the authority coin. Responsibility is the duty to perform
the task or activity an employee has been assigned. An important distinction between
authority and responsibility is that the supervisor delegates authority, but the
responsibility is shared. Delegation of authority gives a subordinate the right to make
commitments, use resources, and take actions in relation to duties assigned. However,
in making this delegation, the obligation created is not shifted from the supervisor to the
subordinate — it is shared. A supervisor always retains some responsibility for work
performed by lower‐level units or individuals.

4. Create accountability.

Team members need to know that they are accountable for their projects. Accountability
means answering for one's actions and accepting the consequences. Team members
may need to report and justify task outcomes to their superiors. Managers can build
accountability into their organizational structures by monitoring performances and
rewarding successful outcomes. Although managers are encouraged to delegate
authority, they often find accomplishing this step difficult for the following reasons:

Delegation requires planning, and planning takes time. A manager may say, “By the
time I explain this task to someone, I could do it myself.” This manager is overlooking
the fact that the initial time spent up front training someone to do a task may save much
more time in the long run. Once an employee has learned how to do a task, the
manager will not have to take the time to show that employee how to do it again. This
improves the flow of the process from that point forward.
Managers may simply lack confidence in the abilities of their subordinates. Such a
situation fosters the attitude, “If you want it done well, do it yourself.” If managers feel
that their subordinates lack abilities, they need to provide appropriate training so that all
are comfortable performing their duties.

Managers experience dual accountability. Managers are accountable for their own
actions and the actions of their subordinates. If a subordinate fails to perform a certain
task or does so poorly, the manager is ultimately responsible for the subordinate's
failure. But by the same token, if a subordinate succeeds, the manager shares in that
success as well, and the department can be even more productive.

Finally, managers may refrain from delegating because they are insecure about their
value to the organization. However, managers need to realize that they become more
valuable as their teams become more productive and talented.

Despite the perceived disadvantages of delegation, the reality is that a manager can
improve the performance of his or her work groups by empowering subordinates
through effective delegation. Few managers are successful in the long term without
learning to delegate effectively.

So, how do managers learn to delegate effectively? The following additional principles
may be helpful for managers who've tried to delegate in the past and failed:

Principle 1: Match the employee to the task. Managers should carefully consider the
employees to whom they delegate tasks. The individual selected should possess the
skills and capabilities needed to complete the task. Perhaps even more important is to
delegate to an individual who is not only able to complete the task but also willing to
complete the task. Therefore, managers should delegate to employees who will view
their accomplishments as personal benefits.

Principle 2: Be organized and communicate clearly. The manager must have a clear
understanding of what needs to be done, what deadlines exist, and what special skills
are required. Furthermore, managers must be capable of communicating their
instructions effectively if their subordinates are to perform up to their expectations.

Principle 3: Transfer authority and accountability with the task. The delegation process
is doomed to failure if the individual to whom the task is delegated is not given the
authority to succeed at accomplishing the task and is not held accountable for the
results as well. Managers must expect employees to carry the ball and then let them do
so. This means providing the employees with the necessary resources and power to
succeed, giving them timely feedback on their progress, and holding them fully
accountable for the results of their efforts. Managers also should be available to answer
questions as needed.

Principle 4: Choose the level of delegation carefully. Delegation does not mean that the
manager can walk away from the task or the person to whom the task is delegated. The
manager must maintain some control of both the process and the results of the
delegated activities. Depending upon the confidence the manager has in the
subordinate and the importance of the task, the manager can choose to delegate at
several levels.

Span of control

Span of control (sometimes called span of management) refers to the number of

workers who report to one manager. For hundreds of years, theorists have searched for
an ideal span of control. When no perfect number of subordinates for a manager to
supervise became apparent, they turned their attention to the more general issue of
whether the span should be wide or narrow.

A wide span of management exists when a manager has a large number of

subordinates. Generally, the span of control may be wide when

The manager and the subordinates are very competent.

The organization has a well‐established set of standard operating procedures.

Few new problems are anticipated.

A narrow span of management exists when the manager has only a few subordinates.
The span should be narrow when
Workers are located far from one another physically.

The manager has a lot of work to do in addition to supervising workers.

A great deal of interaction is required between supervisor and workers.

New problems arise frequently.

Keep in mind that the span of management may change from one department to
another within the same organization.

The general pattern of authority throughout an organization determines the extent to

which that organization is centralized or decentralized.

A centralized organization systematically works to concentrate authority at the upper

levels. In a decentralized organization, management consciously attempts to spread
authority to the lower organization levels.

A variety of factors can influence the extent to which a firm is centralized or

decentralized. The following is a list of possible determinants:

The external environment in which the firm operates. The more complex and
unpredictable this environment, the more likely it is that top management will let
low‐level managers make important decisions. After all, low‐level managers are closer
to the problems because they are more likely to have direct contact with customers and
workers. Therefore, they are in a better position to determine problems and concerns.

The nature of the decision itself. The riskier or the more important the decision, the
greater the tendency to centralize decision making.

The abilities of low‐level managers. If these managers do not have strong

decision‐making skills, top managers will be reluctant to decentralize. Strong low‐level
decision‐making skills encourage decentralization.

The organization's tradition of management. An organization that has traditionally

practiced centralization or decentralization is likely to maintain that posture in the future.
In principle, neither philosophy is right or wrong. What works for one organization may
or may not work for another. Kmart Corporation and McDonald's have both been very
successful — both practice centralization. By the same token, decentralization has
worked very well for General Electric and Sears. Every organization must assess its
own situation and then choose the level of centralization or decentralization that works
best.

Question

3. What is Controlling? Detail the concept Control as a Feedback System.

Ans:

Controlling is one of the important functions of a manager. In order to seek planned

results from the subordinates, a manager needs to exercise effective control over the
activities of the subordinates. In other words, the meaning of controlling function can be
defined as ensuring that activities in an organization are performed as per the plans.
Controlling also ensures that an organization’s resources are being used effectively &
efficiently for the achievement of predetermined goals.

Controlling is a goal-oriented function.

It is a primary function of every manager.

Controlling the function of a manager is a pervasive function

How Controlling Function Helps Managers

Managers at all levels of management Top, Middle & Lower – need to perform
controlling function to keep control over activities in their areas. Therefore, controlling is
very much important in an educational institution, military, hospital, & a club as in any
business organization.

Therefore, controlling function should not be misunderstood as the last function of

management. It is a function that brings back the management cycle back to the
planning function. Thus, the controlling function act as a tool that helps in finding out
that how actual performance deviates from standards and also finds the cause of
deviations & attempts which are necessary to take corrective actions based upon the
same.

This process helps in the formulation of future plans in light of the problems that were
identified &, thus, helps in better planning in the future periods. So from the meaning of
controlling we understand it not only completes the management process but also
improves planning in the next cycle.

Importance of Controlling

After the meaning of control, let us see its importance. Control is an indispensable
function of management without which the controlling function in an organization cannot
be accomplished and the best of plans which can be executed can go away. A good
control system helps an organization in the following ways:

1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures that further makes progress
towards the organizational goals & brings to light the deviations, & indicates corrective
action. Therefore it helps in guiding the organizational goals which can be achieved by
performing a controlling function.

2. Judging Accuracy of Standards

A good control system enables management to verify whether the standards set are
accurate & objective. The efficient control system also helps in keeping careful and
progress check on the changes which help in taking the major place in the organization
& in the environment and also helps to review & revise the standards in light of such
changes.
 3. Making Efficient use of Resources
Another important function of controlling is that in this, each activity is performed in such
manner so an in accordance with predetermined standards & norms so as to ensure
that the resources are used in the most effective & efficient manner for the further
availability of resources.

4. Improving Employee Motivation

Another important function is that controlling help in accommodating a good control
system which ensures that each employee knows well in advance what they expect &
what are the standards of performance on the basis of which they will be appraised.
Therefore it helps in motivating and increasing their potential so to make them & helps
them to give better performance.

5. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the organization which helps
to minimize dishonest behavior on the part of the employees. It keeps a close check on
the activities of employees and the company can be able to track and find out the
dishonest employees by using computer monitoring as a part of their control system.

6. Facilitating Coordination in Action

The last important function of controlling is that each department & employee is
governed by such pre-determined standards and goals which are well versed and
coordinated with one another. This ensures that overall organizational objectives are
accomplished in an overall manner.

Feedback control is a process used by managers to assess the performance of the

team. It helps to determine the performance of an individual member of the team. The
implementation of the feedback control puts the manager in a position to lead the team
effectively.

In other words, feedback control is a system of control that helps managers to control
and monitor the performance of a team by providing feedback.

The feedback control compares the performance/output of the team with a set goal or
expected performance. This gives a clear expectation from the team.Once the process
is completed the actual performance of the team can be compared with the pre-set goal
to assess if the team has been successful in the achievement of the desired goal.

The feedback control can be designed with four elements. These elements include
pre-set point, actual performance, variance, and feedback.

First of all, the goal or certain level of the performance is set by the manager that
includes identification of certain points to direct the complete mechanism of control
ahead. This is the target approach of the manager or a desired result from the process.

The second element is getting actual performance from the process which is obtained
once the process is completed to a certain extent or a complete process has been
performed. That’s the point from where actual performance is collected to be used in the
further process.

The third element of the feedback control system is variance analysis. The variance is
calculated by comparing pre-set performance or goal with the actual performance of the
business.

That’s the main point where analysis needs to be done and reasons need to be
identified for the variances and matrices of the controls. If managers perform effectively
in this area of performance, feedback control is more than effective to enhance the
performance of the business.

The fourth element of feedback control is the provision of feedback. That’s the main
area where the professional judgment of the manager is required to formulate effective
feedback. If feedback is constructive it motives the employee to performance of their
duties.

All the four elements of the feedback system are linked and flow in a sequence. If all the
steps of the feedback control are effective, it results in better management of the
feedback control system.

Advantages of feedback control

There are multiple advantages of a feedback control system in the organization. These
advantages include effective planning of the project, variance analysis, positive
influence on the business, and alignment of the business strategy.

1) Effectiveness of planning

The use of a feedback control system requires pre-set of the performance or goal for
the organization. It increases the culture of planning and performance measurement
within the business.

The culture of the planning and performance measurement helps to enhance the
effectiveness of the planning process.

2) Variance analysis

The variance analysis helps to identify key areas of the processes that affect the
efficiency of a business. This is the main point of improvement where critical processes
can be identified that create problems in the achievement of organizational goals.

3) Positive influence/motivation

The feedback control helps to communicate the expectation of the business to

employees of the company. It gives a certain direction to the employees and keeps
them motivated to work.

Related article The Major Concept of Performance Pyramid: The Major Concept
You Should Know

They also have in their mind that their performance is to be evaluated in the future
which helps them to achieve their career goal.

4) Alignment in business strategy

The feedback control helps to direct the direction of the environment, business strategy,
and value. It helps to set the direction of the business. The main point of the feedback
control is that planning that can be aligned with the overall direction of the business.

Limitation of feedback control

The performance with the feedback control can only be measured once a certain part of
the process has been completed. If there is a deviation in the performance in
comparison with the pre-set pro forma, the manager cannot do much to reverse the
process and get the performance of his desire.

In other words, feedback control is not a preventative control that helps in avoidance of
the error. On the contrary, it’s a detective control that measures the deviation once the
process has been completed. So, the feedback control system cannot be of much
importance in the case of unique projects However, if the project is of repetitive nature it
can be used effectively.

Example of feedback control

The sales manager of the company sets the target of the tram to sell 10,000 units of
product in one month. There are 10 salesmen and each salesman is assigned the
responsibility to sell 1,000 units in a month and the target market were divided among
them. The first step of the process is completed for setting the goal.

The second step starts when after the month-end, the results are collected from team
members and discovered that the total sale of the units was 8,000. There was a
shortage of 2,000 units in the number of products sold. The third stage starts where the
manager calculates the variance of each salesman and comes to know that four
salesmen could not achieve the desired target and the sale of each salesman was short
by 500 units.

In the fourth stage, the manager interviews the sales manager and inquires the reasons
for not being able to achieve the target. The manager discovers that the time of visit for
these managers was at the peak hours of the market and the owners of the shops did
not entertain them as they were already busy with their customers.

So, the manager provided his feedback to align their time of visit with other salesmen
that were successful. Hence, the manager provided feedback to enhance the
performance of the sales team. If these underperforming salesmen follow the feedback
from the manager, they seem to achieve the desired targets as other salesmen in the
team.
Set – II
Questions

Question
4. What is meant by Motivation? Explain any one theory of Motivation.
Ans :

The term motivation is derived from the Latin word movere, meaning “to move.”
Motivation can be broadly defined as the forces acting on or within a person that cause
the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation
theory is thus concerned with the processes that explain why and how human behavior
is activated.

The broad rubric of motivation and motivation theory is one of the most frequently
studied and written-about topics in the organizational sciences, and it is considered one
of the most important areas of study in the field of organizational behavior. Despite the
magnitude of the effort that has been devoted to the study of motivation, there is no
single theory of motivation that is universally accepted. The lack of a unified theory of
motivation reflects both the complexity of the construct and the diverse backgrounds
and aims of those who study it. To delineate these crucial points, it is illuminating to
consider the development of motivation and motivation theory as the objects of scientific
inquiry.

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to
use their skills. He demonstrated this by creating a pyramid to show how people are
motivated and mentioned that ONE CANNOT ASCEND TO THE NEXT LEVEL
UNLESS LOWER-LEVEL NEEDS ARE FULFILLED. The lowest level needs in the
pyramid are basic needs and unless these lower-level needs are satisfied people do not
look at working toward satisfying the upper-level needs.

Below is the hierarchy of needs:

Physiological needs: are basic needs for survival such as air, sleep, food, water,
clothing, sex, and shelter.
Safety needs: Protection from threats, deprivation, and other dangers (e.g., health,
secure employment, and property)

Social (belongingness and love) needs: The need for association, affiliation,
friendship, and so on.

Self-esteem needs:  The need for respect and recognition.

Self-actualization needs:  The opportunity for personal development, learning, and

fun/creative/challenging work.  Self-actualization is the highest-level need to which a
human being can aspire.

The leader will have to understand at what level the team members are currently, and
seek out to help them to satisfy those specific needs and accordingly work to help fulfil
those needs. This will help the team members perform better and move ahead with the
project. Also, as their needs get fulfilled, the team members will start performing, till the
time they start thinking of fulfilling the next upper level of need as mentioned in the
pyramid.

2. Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories; namely hygiene factors and
motivating factors:

poor hygiene factors may destroy motivation but improving them under most
circumstances will not improve team motivation

hygiene factors only are not sufficient to motivate people, but motivator factors are also
required

Herzberg’s two-factor principles

Influenced by Hygiene Improving motivator Influenced by motivator

Factors (Dis-satisfiers) factors increases job factors (Satisfiers)
satisfaction

Improving the hygiene

Working condition factors decreases job Achievements
dissatisfaction

Coworker relations Recognition

Policies & rules Responsibility

Supervisor quality Work itself

Personal growth

3. McClelland’s Theory of Needs

McClelland affirms that we all have three motivating drivers, which do not depend on
our gender or age. One of these drives will be dominant in our behaviour. The dominant
drive depends on our life experiences. 

The three motivators are:

Achievement: a need to accomplish and demonstrate own competence. People with a

high need for achievement prefer tasks that provide for personal responsibility and
results based on their own efforts.  They also prefer quick acknowledgment of their
progress.

Affiliation: a need for love, belonging and social acceptance. People with a high need
for affiliation are motivated by being liked and accepted by others.  They tend to
participate in social gatherings and may be uncomfortable with conflict.

Power: a need for controlling own work or the work of others. People with a high need
for power desire situations in which they exercise power and influence over others.
 They aspire for positions with status and authority and tend to be more concerned
about their level of influence than about effective work performance.

4. Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation says that an individual’s motivation is affected

by their expectations about the future. In his view, an individual’s motivation is affected
by –

Expectancy: Here the belief is that increased effort will lead to increased performance
i.e., if I work harder then it will be better. This is affected by things such as:

Having the appropriate resources available (e.g., raw materials, time)

Having the appropriate management skills to do the job

Having the required support to get the job done (e.g., supervisor support, or
correct information on the job)

Instrumentality: Here the belief is that if you perform well, then the outcome will be a
valuable one for me. i.e., if I do a good job, there is something in it for me. This is
affected by things such as:

Clear understanding of the relationship between performance and outcomes –

e.g., the rules of the reward ‘game’
 Trust in the people who will take the decisions on who gets what outcome

Transparency in the process decides who gets what outcome

Valence: is how much importance the individual places upon the expected outcome.
For example, if someone is motivated by money, he or she might not value offers of
additional time off.

Motivation = V * I * E

The three elements are important when choosing one element over another, because
they are clearly defined:

E>P expectancy: our assessment of the probability that our efforts will lead to the
required performance level.

P>O expectancy: our assessment of the probability that our successful performance
will lead to certain outcomes.

5. McGregor’s Theory X and theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side
of Enterprise," and they refer to two styles of management – authoritarian (Theory X)
and participative (Theory Y).

Theory X: Managers who accept this theory believe that if you feel that your team
members dislike their work, have little motivation, need to be watched every minute and
are incapable of being accountable for their work, avoid responsibility and avoid work
whenever possible, then you are likely to use an authoritarian style of management.
According to McGregor, this approach is very "hands-on" and usually involves
micromanaging people's work to ensure that it gets done properly.

Theory Y: Managers who accept this theory believe that if people are willing to work
without supervision, take pride in their work, see it as a challenge and want to achieve
more, they can direct their own efforts, take ownership of their work and do it effectively
by themselves. These managers use a decentralized, participative management style.

6. Alderfer’s ERG Theory

C. P. Alderfer, an American psychologist, developed Maslow’s hierarchy of needs into a

theory of his own.
His theory suggests that there are three groups of core needs: existence (E),
relatedness (R), and growth (G). These groups are aligned with Maslow’s levels of
physiological needs, social needs, and self-actualization needs, respectively.

Existence needs concern our basic material requirements for living, which include what
Maslow categorized as physiological needs such as air, sleep, food, water, clothing, sex
and shelter and safety-related needs such as health, secure employment, and property.

Relatedness needs have to do with the importance of maintaining interpersonal

relationships. These needs are based in social interactions with others and are aligned
with Maslow’s levels of love/belonging-related needs such as friendship, family and
sexual intimacy and esteem-related needs such as gaining the respect of others.

Growth needs describe our intrinsic desire for personal development. These needs are
aligned with the other part of Maslow’s esteem-related needs such as self-esteem,
self-confidence, and achievement and self-actualization needs such as morality,
creativity, problem-solving and discovery.

Alderfer is of the opinion that when a certain category of needs is not being met, people
will redouble their efforts to fulfil needs in a lower category.

Maslow’s theory is very rigid and 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 i.e., an individual remains at a particular need level until that need is
satisfied.

Whereas, according to Alderfer’s theory, if a higher-level need is aggravated, an

individual may revert to increase the satisfaction of a lower-level need. This is called
frustration-regression aspect of ERG theory. ERG theory is very flexible as Alderfer
perceived the needs as a range/variety instead of perceiving them as a hierarchy i.e.,
an individual can work on growth needs even if his existence or relatedness needs
remain unsatisfied.

For e.g., when growth needs aggravate, 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. Hence in this manner,
frustration or aggravation can result in regression to a lower-level need.

Another example could be, if someone’s self-esteem is suffering, he or she will invest
more effort in the relatedness category of needs.

Implications of the ERG Theory

All 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 focuses solely
on one need at a time, then this will not effectively motivate the employee. The
frustration-regression aspect of ERG Theory has an added effect on workplace
motivation. For e.g., if an employee is not provided with growth and advancement
opportunities in an organization, then he or she might revert to related needs such as
socializing needs.

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. By the time the
manager realizes and discovers this, they will take more immediate steps to fulfill those
needs which are frustrated until such time that the employee can again pursue growth.

Conclusion

Motivation is the state of mind which pushes all human beings to perform to their
highest potential, with good spirits and a positive attitude. The various motivation
theories outlined above help us to understand what are the factors that drive motivation.
It is a leader’s job to ensure that every individual in the team and the organization is
motivated, and inspired to perform better than their best. This is neither quick nor easy,
but in the long-term, the gains that are derived from happy employees far outweigh the
time and effort spent in motivating them!

Question
5. Write a detailed note on the term ‘Team’ along with characteristics of an
Effective Team
Ans :
A team becomes more than just a collection of people when a strong sense of mutual
commitment creates synergy, thus generating performance greater than the sum of the
performance of its individual members.

One of the many ways for a business to organize employees is in teams. A team is
made up of two or more people who work together to achieve a common goal.

Teams offer an alternative to a vertical chain-of-command and are a much more

inclusive approach to business organization, Teams are becoming more common in the
business world today. Effective teams can lead to an increase in employee motivation
and business productivity.
The team can be defined by following ways too:

● A group of people who compete in a sport, game, etc., against another group.
● A group of people who work together.
● A group of two or more animals used to pull a wagon, cart, etc.
● A number of persons forming one of the sides in a game or contest.
● A number of persons associated in some joint action: a team of experts.

Characteristics of Effective Teams

While no team exists without problems, some teams particularly those who have
learned to counter negative team dynamics seem to be especially good at preventing
many issues.

We have put together a list of what may be considered as the most essential ingredients
for creating effective teams:

● Ideal Size and Membership.

● Fairness in Decision-Making.
● Creativity.
● Accountability.
● Purpose and Goals.
● Action Plans.
● Roles & Responsibilities.
● Information Sharing.
● Good Data.
● Meeting Skills and Practices.
● Decision Making.
● Participation.
● Ground Rules.
● Clear Roles.
● Accepted Leadership.
● Effective Processes.
● Solid Relationships.
● Excellent Communication.

Ideal Size and Membership

The team should be the minimum size needed to achieve the team’s goals and include
members with the right mix of skills and talents to get the job done.

Fairness in Decision-Making

Ideally, teams will make decisions by consensus. When consensus is not feasible,
teams will use fair decision-making procedures that everyone agrees on.

Creativity

Effective teams value original thinking and will produce new and unique approaches to
organizational problems.

Accountability

Members must be accountable to each other for getting their work done on schedule
and following the group’s rules and procedures.

Purpose and Goals

Every team member must clearly understand the purpose and goals for bringing this
particular group of individuals together.

Action Plans

Help the team determine what advice, assistance, training, materials, and other
resources it may be needed.

Roles & Responsibilities

Teams operate most efficiently if they tap everyone’s talents. All members understand
their own duties and know who is responsible for what.

Information Sharing

Effective discussions depend upon how well information is passed between team
members – hoarding information cannot be tolerated. A proliferation of new
technologies has made this easier than it has ever been.

Good Data
With information sharing comes the requirement for good data. Teams that use good
data for problem-solving and decision making have a much easier time arriving at
permanent solutions to problems.

Meeting Skills and Practices

All team members must commit to a common method for conducting meetings. There is
no ‘best’ method, but everyone must be on the same page.

Decision Making

This is really a subset of the ‘Skills & Practices’. There is no ‘one way’ to reach a
decision, but it must be a recognized path and transparent to all team members.

Participation

Since every team member has a stake In the group’s achievements, everyone should
participate in discussions and decisions, share a commitment to the team’s success,
and contribute their talents.

Ground Rules

Groups invariably establish ground rules (or “norms”) for what will and will not be
tolerated within the group. Many members will want to skip the laying of ground rules,
but in the long run investment up front will head off major issues down the road.

Clear Roles

How we apportion the team purpose will in large measure determine the- team synergy.
High-performing teams leverage individuals’ different roles against collective work
products.

Therefore, it is essential that every team member is clear about his or her own role as
well as the role of every other team member. Roles are about the design, division, and
deployment of the work of the team.

While the concept is compellingly logical, many teams find it challenging to implement.
There is often a tendency to take role definition to extremes or not to take it far enough.

Accepted Leadership
High-performance teams need competent leadership. When such leadership is lacking,
groups can quickly lose their way. Whereas a common, compelling task might be the
biggest contributor to team effectiveness, inadequate team leadership is often the single
biggest reason for team ineffectiveness.

In most organizational settings, it is the leader who frames the team purpose and
facilitates discussions on its meaning and nature. The vision, commitment, and
communication of the leader govern the optics through which individual team members
see the team purpose and become aligned to it.

Effective Processes

Teams and processes go together. It would never occur to a surgical team, construction
crew, string quartet, or film crew to approach tasks without clearly defined processes.
The playbook of a football team or the score sheet of a string quartet clearly outlines the
necessary processes.

Business teams have processes as well, which might include solving problems, making
decisions, managing a meeting, or designing a product.

Solid Relationships

One of the biggest misperceptions in the world of teams and teamwork is the belief that
to work and communicate effectively, team members must be friends.

In fact, the diversity of skills, experience, and knowledge needed to divide tasks
effectively almost precludes high levels of friendship, which is most often based on
commonality — of the way people think, their interests, or beliefs.

Excellent Communication

Communication is the very means of cooperation. One of the primary motives of

companies choosing to implement teams is that team-based organizations are more
responsive and move faster. A team cannot move faster than it communicates.

Fast, clear, timely, accurate communication is a hallmark of high levels of team

performance. High-performance teams have mastered the art of straight talk; there is
little motion wasted through misunderstanding or confusion.

Types of Team
There are various types of teams and their functions and objectives are also different.
The types of teams are discussed are below:

● Executive Team,
● Command Team,
● Project Teams,
● Advisory Teams,
● Work Teams,
● Action Teams,
● Sports Teams,
● Virtual Teams,
● Work Teams,
● Self-Managed Team,
● Parallel Teams,
● Management Teams,
● Managed Team.

Executive Team

An executive team is a management team that draws up plans for activities and then
directs these activities.

An example of an executive team would be a construction team designing. blueprints for

a new building, and then guiding the construction of the building using these blueprints.

Command Team

The goal of the command team is to combine instructions and coordinate action among
management. In other words, command teams serve as the “middle man” in the task.

For instance, messengers on a construction site, conveying instructions from the

executive team to the builders would be an example Of a command team.

Project Teams

A team used only for a defined period of time and for a separate, Concretely definable
purpose often becomes known as a project team. This category of teams includes
negotiation, compassion and design team subtypes.
In general, these types of teams are multi-talented and composed of individuals with
expertise in many different areas. Members of these teams might belong to different
groups, but receive an assignment to activities for the same project.

Advisory Teams

Advisory teams make suggestions about a final product. For instance, a quality control
group on an assembly line would be an example of an advisory team. They would
examine the products produced and make suggestions about how to improve the quality
of the items being made.

Work Teams

Work teams are responsible for the actual act of creating tangible products and
services. The actual workers on an assembly line would be an example of a production
team, whereas waiters and waitresses at a diner would be an example of a service
team.

Action Teams

Action teams are highly specialized and coordinated teams whose actions are intensely
focused on producing a product or service. A football team would be an example of an
action team. Other examples occur in the military, paramedics, and transportation (e g.,
a flight crew on an airplane).

Sports Teams

A sports team is a group of people which play sports, often team sports together.
Members include all players (even those who are waiting their turn to play) as well as
support members such as a team manager or coach.

Virtual Teams

Developments in information and communications technology have seen the difference

of the virtual work team.

A virtual team is a group of people who work interdependently and with shared purpose
across space, time, and organizational boundaries using technology to communicate
and collaborate.
Virtual team members can be located across a country or across the world, rarely meet
face-to-face, and include members from different cultures.

Work Teams

Work teams (also referred to as production and service teams) are continuing work units
responsible for producing goods or providing services for the organization. Their
membership is typically stable, usually full-time, and well-defined. These teams are
traditionally directed by a supervisor who mandates what work is done, who does it, and
in what manner is it executed.

Self-Managed Team

Self-managed work teams (also referred to as autonomous work groups) allow their
members to make a greater contribution at work and constitute a significant competitive
advantage for the organization.

These work teams determine how they will accomplish the objectives they are
mandated to achieve and decide what route they will take to complete the current
assignment.

Self-managed work teams are granted the responsibility of planning scheduling,

organizing, directing, controlling and evaluating their own work process.

Parallel Teams

Parallel teams (also referred to as advice and involvement teams) pull together people
from different work units or jobs to perform functions that the regular organization is not
equipped to perform well.

These teams are given limited authority and can only make recommendations to
individuals higher in the organizational hierarchy.

Management Teams

Management teams (also referred to as action and negotiation teams) are responsible
for the coordination and direction of a division within an institution or organization during
various assigned projects and functional, operational and/or strategic tasks and
initiatives.
Management teams are responsible for the total performance of the division they
oversee with regards to day-to-day operations, a delegation of tasks and the
supervision of employees.

Managed Team

Managed groups sometimes also work together as a team on a single, focused

objective or task. In such groups, people may come from diverse background, with each
bringing a specialized skill to the team.

Ingredients of Effective Team, What Makes a Team Effective

Many studies have been conducted in an attempt to isolate the factors that contribute
most directly to team success. Common items identified include careful composition,
information sharing, clear direction and measurable goals for accountability, sufficient
resources, integration and coordination, flexibility and innovativeness, and the
stimulation of openness to learning.

Here focus on 4 major factors of an effective team:

1. Supportive Environment.
2. Skills and Role Clarity.
3. Super Ordinate Goals.
4. Team Rewards.

Supportive Environment

Teamwork is. most likely to develop when management builds a supportive environment
for it.

Creating such an environment involves encouraging members to think like a team,

providing adequate time for meetings, and demonstrating faith in members’ capacity
to.achieve.

Supportive measures such as these help the group take the necessary first steps
toward teamwork. Since these steps contribute to further cooperation, trust, and
compatibility, supervisors need to develop an organizational culture that builds these
conditions.
Skills and Role Clarity

Team members must be reasonably qualified to perform their jobs and have the desire
to cooperate.

Beyond these requirements, members can work together as a team only after all the
members of the group know the roles of all the others with whom they will be
interacting.

When this understanding exists, members can act immediately as a team on the basis
of the requirements of that situation, without waiting for someone to give an order.

In other words, team members respond voluntarily to the demands of the job and take
appropriate actions to accomplish team goals.

Super Ordinate Goals

A major responsibility of managers is to try to keep the team members oriented toward
their overall task. Sometimes, unfortunately, an organization’s policies, record-keeping
requirements, and reward systems may fragment’individual efforts and discourage
teamwork.

Team Rewards

Another element that can stimulate teamwork is the presence of team rewards. These
may be financial, or they may be in the form of recognition. Rewards are most powerful
if they are valued by the team members, perceived as possible to earn, and
administered contingent on the group’s task performance.

In addition, organizations need to achieve a careful balance between encouraging and

rewarding individual initiative and growth and stimulating full contributions to team
success.

Innovative (nonfinancial) team rewards for possible behavior may include the authority
to select new members of the group, make recommendations regarding a new
supervisor, or propose discipline for team members.

Question
6.Discuss the concept of Leadership. Detail any one theory of Leadership.
Ans :
Leadership is essentially a continuous process of influencing behavior. It may be
considered in context of mutual relations between a leader and his followers.

The leader tries to influence the behavior of individuals or group of individuals around
him to achieve desired goals.

Leadership is a dynamic process, which deserves study. It is a relational process

involving interactions among leaders, members and sometimes outside constituencies.
Good leaders are made not born. If you have the desire and willpower, you can become
an effective leader.

Leadership development is an important and a recent issue in the field of management

practices.

Basically, it involves developing those qualities and attitudes in managers which help
them to look into the future and to bring necessary improvement pertaining to different
leadership styles.

Leadership is the art of influencing people to attain group objectives willingly. What a
minister does in his State, a captain does on the playground, the manager has to do in
his organisation. Leaders in all walks of life should have some basic qualities. They
should be able to establish contact with their equals, deal with their subordinates and
guide them, mediate in conflicts, resolve issues by weighing various alternatives,
allocate scarce resources properly and take risks and initiatives.

The environment in which a leader is placed is important. The organisational culture, the
economic and social set-up, the extent of unionisation and other factors may demand
different types of leaders in different situations. A task-oriented leader, for instance, may
be more successful in situations which are either very favourable or very unfavourable
to him, while a relations- oriented leader may be more effective in intermediate
situations.

According to Livingston – ‘Leadership is the ability to awaken the desire to follow a

common objective’.

According to C.I. Bernard – ‘Leadership is the quality of behaviour of the individuals

whereby they guide people or their activities in organised efforts’.
According to Bernard Keys and Thomas – ‘Leadership is the process of influencing and
supporting others to work enthusiastically towards achieving objectives’.

Leadership is essentially a continuous process of influencing behaviour. It may be

considered in context of mutual relations between a leader and his followers. The leader
tries to influence the behaviour of individuals or group of individuals around him to
achieve desired goals.

Keith Davis, “Leadership is the process of encouraging and helping others to work
enthusiastically towards their objectives. Leadership must extract cooperation and
willingness of the individuals and groups to attain the organisational objectives.”

George R. Terry, “Leadership is a relationship in which one person influences others to

work together willingly on related tasks to attain what the leader desires.”

Koontz and O’Donnell, “Leadership is the process of influencing people so that they will
strive willingly towards the achievement of group goals.”

Chester I. Bernard, “Leadership refers to the quality of the behaviour of the individual
whereby they guide people on their activities in organised work.”

Mooney and Reiley, “Leadership is regarded as the form which authority assumes when
it enters into process.”

The Great Man Theory of Leadership

What makes a man or woman rise above others to assume the mantle of leadership?
Why are some more drawn to the burdens of the job than others? What set history’s
great leaders apart from their contemporaries and enabled them to navigate often
tumultuous waters, defying the odds to achieve their goals on behalf of themselves and
their people Some theorists have argued that these questions are answered by the
Great Man Theory of Leadership.

What is the Great Man Theory of Leadership?

The Great Man Theory of Leadership espouses that great leaders are born, not made.
These individuals come into the world possessing certain characteristics and traits not
found in all people. These abilities enable them to lead while shaping the very pages of
history. Under great man theory, prominent leaders throughout the course of history
were born to lead and deserved to do so as a result of their natural abilities and talents.
The Great Man Theory of Leadership centers on two main assumptions:

● Great leaders are born possessing certain traits that enable them to rise and
lead.
● Great leaders can arise when the need for them is great.

Those who support the great man theory say leaders are born with the attributes
necessary to set them apart from those around them and that these traits enable them
to assume roles of authority and power. Great leaders are heroes, according to this
theory, that accomplish great feats against the odds on behalf of followers. The Great
Man Theory of Leadership essentially implies that those in power deserve to lead
because of the traits they’ve been endowed with.

History of the Great Man Theory

The Great Man Theory was established in the 19th century by proponents such as
historian Thomas Carlyle, who put forth the idea that the world’s history is nothing more
than a collection of biographies belonging to great men.

Carlyle and contemporaries gained recognition for the theory in their time, as evidenced
by such works as the Encyclopedia Britannica Eleventh Edition, published in 1911. This
encyclopedia told the story of world history through biographies of the great men that
led during different historical periods. Not everyone in Carlyle’s time, however, agreed
with the theory’s assumptions.

Opposing Views to the Great Man Theory

Herbert Spencer, a noted philosopher, sociologist, biologist and political theorist of the
Victorian era, countered that the Great Man Theory was childish, primitive and
unscientific. He believed leaders were products of their environment. He advocated that
before a “great man” can remake his society, that society has to make him.

Despite Spencer’s arguments to the contrary, the Great Man Theory remained the
popular and predominant theory for explaining and understanding leadership until the
mid-20th century. As the behavioral sciences grew, so did the idea that leadership is
more of a science that can be learned and nurtured. Those with opposing views say
great leaders are shaped and molded by their times as the traits necessary to lead are
learned and honed.

However, much like the question of nature versus nurture, there are those who still
support the Great Man Theory of Leadership and the idea that men and women leaders
are born, not made.