Staffing Function of Management

The managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal and development of the personnels to fill the roles assigned to the employers/workforce. According to Theo Haimann, “Staffing pertains to recruitment, selection, development and compensation of subordinates.”

Nature of Staffing Function
1. 2. 3. 4. 5. 6.
Staffing is an important managerial function- Staffing function is the most important mangerial act along with planning, organizing, directing and controlling. The operations of these four functions depend upon the manpower which is available through staffing function. Staffing is a pervasive activity- As staffing function is carried out by all mangers and in all types of concerns where business activities are carried out. Staffing is a continuous activity- This is because staffing function continues throughout the life of an organization due to the transfers and promotions that take place. The basis of staffing function is efficient management of personnels- Human resources can be efficiently managed by a system or proper procedure, that is, recruitment, selection, placement, training and development, providing remuneration, etc. Staffing helps in placing right men at the right job. It can be done effectively through proper recruitment procedures and then finally selecting the most suitable candidate as per the job requirements. Staffing is performed by all managers depending upon the nature of business, size of the company, qualifications and skills of managers,etc. In small companies, the top management generally performs this function.In medium and small scale enterprise, it is performed especially by the personnel department of that concern.

steps involved in staffing 1. 2. 3. 4. 5.
Manpower requirements- The very first step in staffing is to plan the manpower inventory required by a concern in order to match them with the job requirements and demands. Therefore, it involves forecasting and determining the future manpower needs of the concern. Recruitment- Once the requirements are notified, the concern invites and solicits applications according to the invitations made to the desirable candidates. Selection- This is the screening step of staffing in which the solicited applications are screened out and suitable candidates are appointed as per the requirements. Orientation and Placement- Once screening takes place, the appointed candidates are made familiar to the work units and work environment through the orientation programmes. placement takes place by putting right man on the right job. Training and Development- Training is a part of incentives given to the workers in order to develop and grow them within the concern. Training is generally given according to the nature of activities and scope of expansion in it. Along with it, the workers are developed by providing them extra benefits of indepth knowledge of their functional areas. Development also includes giving them key and important jobsas a test or examination in order to analyse their performances. Remuneration- It is a kind of compensation provided monetarily to the employees for their work performances. This is given according to the nature of job- skilled or unskilled, physical or mental, etc. Remuneration forms an important monetary incentive for the employees. Performance Evaluation- In order to keep a track or record of the behaviour, attitudes as well as opinions of the workers towards their jobs. For this regular assessment is done to evaluate and supervise different work units in a concern. It is basically concerning to know the development cycle and growth patterns of the employeesin a concern.

6. 7.

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Promotion and transfer- Promotion is said to be a non- monetary incentive in which the worker is shifted from a higher job demanding bigger responsibilities as well as shifting the workers and transferring them to different work units and branches of the same organization.

Manpower planning
Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure. The procedure is as follows: 1. 2. 3. 4. Analysing the current manpower inventory Making future manpower forecasts Developing employment programmes Design training programmes

Steps in Manpower Planning
1.
Analysing the current manpower inventory- Before a manager makes forecast of future manpower, the current manpower status has to be analysed. For this the following things have to be noted• Type of organization • Number of departments • Number and quantity of such departments • Employees in these work units

Once these factors are registered by a manager, he goes for the future forecasting.

2.

Making future manpower forecasts- Once the factors affecting the future manpower forecasts are known, planning can be done for the future manpower requirements in several work units. The Manpower forecasting techniques commonly employed by the organizations are as follows: Expert Forecasts: This includes informal decisions, formal expert surveys and Delphi technique. b. Trend Analysis: Manpower needs can be projected through extrapolation (projecting past trends), indexation (using base year as basis), and statistical analysis (central tendency measure). c. Work Load Analysis: It is dependent upon the nature of work load in a department, in a branch or in a division. d. Work Force Analysis: Whenever production and time period has to be analysed, due allowances have to be made for getting net manpower requirements. e. Other methods: Several Mathematical models, with the aid of computers are used to forecast manpower needs, like budget and planning analysis, regression, new venture analysis. Developing employment programmes- Once the current inventory is compared with future forecasts, the employment programmes can be framed and developed accordingly, which will include recruitment, selection procedures and placement plans. Design training programmes- These will be based upon extent of diversification, expansion plans, development programmes,etc. Training programmes depend upon the extent of

a.

3. 4.

improvement in technology and advancement to take place. It is also done to improve upon the skills, capabilities, knowledge of the workers.

Importance of Manpower Planning
1. 2. 3.
Key to managerial functions- The four managerial functions, i.e., planning, organizing, directing and controlling are based upon the manpower. Human resources help in the implementation of all these managerial activities. Therefore, staffing becomes a key to all managerial functions. Efficient utilization- Efficient management of personnels becomes an important function in the industrialization world of today. Seting of large scale enterprises require management of large scale manpower. It can be effectively done through staffing function. Motivation- Staffing function not only includes putting right men on right job, but it also comprises of motivational programmes, i.e., incentive plans to be framed for further participation and employment of employees in a concern. Therefore, all types of incentive plans becomes an integral part of staffing function. Better human relations- A concern can stabilize itself if human relations develop and are strong. Human relations become strong trough effective control, clear communication, effective supervision and leadership in a concern. Staffing function also looks after training and development of the work force which leads to co-operation and better human relations. Higher productivity- Productivity level increases when resources are utilized in best possible manner. higher productivity is a result of minimum wastage of time, money, efforts and energies.This is possible through the staffing and it's related activities ( Performance appraisal, training and development, remuneration)

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Need of Manpower Planning
Manpower Planning is a two-phased process because manpower planning not only analyses the current human resources but also makes manpower forecasts and thereby draw employment programmes. Manpower Planning is advantageous to firm in following manner: 1. 2. 3. 4. 5. 6. Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programmes are based on manpower planning. It also helps to reduce the labour cost as excess staff can be identified and thereby overstaffing can be avoided. It also helps to identify the available talents in a concern and accordingly training programmes can be chalked out to develop those talents. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner. It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern.

Obstacles in Manpower Planning
Following are the main obstacles that organizations face in the process of manpower planning:

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Under Utilization of Manpower: The biggest obstacle in case of manpower planning is the fact that the industries in general are not making optimum use of their manpower and once manpower planning begins, it encounters heavy odds in stepping up the utilization. Degree of Absenteeism: Absenteeism is quite high and has been increasing since last few years.

definition and creation of computerized personnel information system for effective manpower planning and utilization. Types of Recruitment Recruitment is of 2 types 1. Extent of Overtime: The amount of overtime paid may be due to real shortage of men. ineffective management or improper utilization of manpower. Manpower Control and Review: a. manpower control would have to take into account the data to make meaningful analysis. Internal sources are primarily three – Transfers. Several of those who have them do not have a proper retrieval system. . Lack of Education and Skilled Labour: The extent of illetracy and the slow pace of development of the skilled categories account for low productivity in employees. There are situations when ex-employees provide unsolicited applications also. Internal Recruitment – is a recruitment which takes place within the concern or organization. These act as control mechanisms to keep the manpower under certain broadly defined limits.3. e. There are complications in resolving the issues in design. On the basis of manpower plans. The productivity of any organization is usually calculated using the formula: Productivity = Output / Input . promotions and Re-employment of exemployees. Manpower control would require a careful study of overtime statistics. This is a strategic disadvantage. Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. For conservation of Human Resources and better utilization of men studying these condition. the rate of turnover and rate of absenteesim are source of vital information on the satisfaction level of manpower. Internal sources of recruitment are readily available to an organization. 4. of employees d. Low productivity has implications for manpower planning. Even the existing technologies in this respect is not optimally used. Exit Interviews. Any increase in manpower is considered at the top level of management b. c. personnel budgets are prepared. Few Organizations do not have sufficient records and information on manpower. But a rough index of employee productivity is calculated as follows: Employee Productivity = Total Production / Total no.

These applicants are called as unsolicited applicants. The biggest advantage of advertisement is that it covers a wide area of market and scattered applicants can get information from advertisements. i. Through these contractors. These types of workers apply on their own for their job. This kind of recruitment done through such educational institutions. The biggest drawback of this source is that the company has to rely totally on such people which can later on prove to be inefficient. a. It is a procedure of matching organizational requirements with the skills and qualifications of people. such people who are appointed have to also leave the concern. This kind of recruitment is applicable generally where factory workers are to be appointed. External sources are external to a concern. Labour Contractors – These are the specialist people who supply manpower to the Factory or Manufacturing plants. But it involves lot of time and money . b. Effective selection can be done only when there is effective matching. Employment at Factory Level – This a source of external recruitment in which the applications for vacancies are presented on bulletin boards outside the Factory or at the Gate. For this kind of recruitment workers have a tendency to shift from one factory to another and therefore they are called as “badli” workers. There are certain vacancies which are filled by recommendations of such people. the organization will get quality performance of employees. By selecting right candidate for the required job. c. recommendations etc. g. money and efforts. Advertisement – It is an external source which has got an important place in recruitment procedure. Employment Exchanges – There are certain Employment exchanges which are run by government. There are people who keep on soliciting jobs from one place to another. is called as Campus Recruitment.The external sources of recruitment include – Employment at factory gate. Also. Now-a-days recruitment in government agencies has become compulsory through employment exchange. 2. Internal sources are primarily 3 a. Moreover. workers are appointed on contract basis. It also saves time.Re-employment of ex-employees is one of the internal sources of recruitment in which employees can be invited and appointed to fill vacancies in the concern. By selecting best candidate for the required job. External Recruitment – External sources of recruitment have to be solicited from outside the organization. employment agencies. They enjoy goodwill and a stand in the company. Employment Agencies – There are certain professional organizations which look towards recruitment and employment of people. d. advertisements. There are situations when ex-employees provide unsolicited applications also. not all the manpower requirements can be met through internal recruitment. Most of the government undertakings and concerns employ people through such exchanges. i. b.e. Hiring from outside has to be done. c. f. for a particular time period. Medium used is Newspapers and Television. Recommendations – There are certain people who have experience in a particular area.e. Under conditions when these contractors leave the organization. employment exchanges. these private agencies run by private individuals supply required manpower to needy concerns. organization will also save time and . Transfers Promotions (through Internal Job Postings) and Re-employment of ex-employees . labour contractors. Employee Selection Process Employee Selection is the process of putting right men on right job. e. educational institutes.Internal recruitment may lead to increase in employee’s productivity as their motivation level increases. But a drawback of internal recruitment is that it refrains the organization from new blood. They have special recruitment cells which helps in providing jobs to fresh candidates. Educational Institutions – There are certain professional Institutions which serves as an external source for recruiting fresh graduates from these institutes. organization will face less of absenteeism and employee turnover problems.

3. Objective It encourages large number of Candidates for a job. etc. and it is also examined how much the candidate knows about the company.A reference check is made about the candidate selected and then finally he is appointed by giving a formal appointment letter. Recruitment precedes selection in staffing process. It contains data record of the candidates such as details about age. The Employee selection Process takes place in following order- 1. Appointment Letter. No distractions should be there in room. Preliminary interviews are less formalized and planned than the final interviews. 4. Selection involves choosing the best candidate with best abilities. The candidates are given a brief up about the company and the job profile. Medical examination. experience.Various written tests conducted during selection procedure are aptitude test. While selection is a negative process as the inappropriate candidates are rejected here. Preliminary interviews are also called screening interviews. Such interviews may be biased at times.Medical tests are conducted to ensure physical fitness of the potential employee. Process It is a simple process. 2. Proper screening of candidates takes place during selection procedure. Difference between Recruitment and Selection Basis Recruitment Selection Meaning It is an activity of establishing contact between employers and applicants. qualifications. Application blanks. Preliminary Interviews. It is a complicated process.The candidates who clear the preliminary interview are required to fill application blank. But such interviews consume time and money both. There should be an honest communication between candidate and interviewer.It is used to eliminate those candidates who do not meet the minimum eligiblity criteria laid down by the organization. 6. These tests are used to objectively assess the potential candidate. But selection must be differentiated from recruitment . reason for leaving previous job. Employment Interviews. It is just sourcing of data. It will decrease chances of employee absenteeism. competencies and interests of the candidate are examined during preliminary interview. skills and knowledge for the required job. Written Tests. All the potential candidates who apply for the given job are tested. They should not be biased. It attempts at rejecting unsuitable candidates. personality test. The skills.It is a one to one interaction between the interviewer and the potential candidate. intelligence test. It creates a pool of applicants. . reasoning test. Recruitment is considered to be a positive process as it motivates more of candidates to apply for the job. etc. Moreover the competencies of the candidate cannot be judged. 5.though these are two phases of employment process. It is used to find whether the candidate is best suited for the required job or not. academic and family background. Such interviews should be conducted properly.money. It is a process of picking up more competent and suitable employees.

policies and programmes of the organization. Once he is fitted into the job. they have to be fitted as per the qualifications. during Orientation employees are made aware about the mission and vision of the organization.i. The freshly appointed candidates are then given orientation in order to familiarize and introduce the company to him. . More time is required. Placement is said to be the process of fitting the selected person at the right job or place. Many hurdles have to be crossed.e. It is an expensive method. Economy It is an economical method. Orientation and Placement Once the candidates are selected for the required job. he is given the activities he has to perform and also told about his duties. It follows recruitment. Sequence It proceeds selection. Approach It is a positive approach. fitting square pegs in square holes and round pegs in round holes. Time Consuming Less time is required. It is a negative approach.Hurdles The candidates have not to cross over many hurdles. the nature of operation of the organization. Generally the information given during the orientation programme includes- • • • • • • • Employee’s layout Type of organizational structure Departmental goals Organizational layout General rules and regulations Standing Orders Grievance system or procedure In short.

vision. The employees will be more satisfied and contended with their work. Training is given on four basic grounds: 1. The existing employees are trained to refresh and enhance their knowledge. Thus. 3. It is fruitful to both employers and employees of an organization. 2. The benefits of training can be summed up as: 1. 4.Training helps the employee to get job security and job satisfaction. so that he becomes a productive and an efficient employee of the organization and contributes to the organizational success. The employees are trained about use of new equipments and work methods. If any updations and amendments take place in technology. money and resources if employees are properly trained. Importance of Training Training is crucial for organizational development and success. An employee will become more efficient and productive if he is trained well. Ways/Methods of Training Training is generally imparted in two ways: .Errors are likely to occur if the employees lack knowledge and skills required for doing a particular job. 2. Less supervision. They become more eligible for promotion. 5. Training of Employees . Increased productivity.A well trained employee will be well acquainted with the job and will need less of supervision. Training is the process of enhancing the skills. i. purchasing a new equipment. Well trained employees show both quantity and quality performance.Training improves efficiency and productivity of employees. Training process moulds the thinking of employees and leads to quality performance of employees. capabilities and knowledge of employees for doing a particular job. morale and trust of the employee in the new organization.e.The main aim of conducting Orientation is to build up confidence. This training familiarize them with the organizational mission. computer implantment. The nature of Orientation program varies with the organizational size. They become an asset for the organization. Proper Placement of employees will lower the chances of employee’s absenteeism. the less are the chances of committing accidents in job and the more proficient the employee becomes. The more satisfied the employee is and the greater is his morale. Chances of promotion. changes in technique of production. smaller the organization the more informal is the Orientation and larger the organization more formalized is the Orientation programme. There is less wastage of time. 3.. rules and regulations and the working conditions.Employees acquire skills and efficiency during training. 4. training is given to cope up with those changes. When promotion and career growth becomes important. The more trained an employee is. New candidates who join an organization are given training. For instance. the more he will contribute to organizational success and the lesser will be employee absenteeism and turnover. Improves morale of employees. Training is given so that employees are prepared to share the responsibilities of the higher level job. Fewer accidents. It is continuous and never ending in nature.Need and Importance of Training Training of employees takes place after orientation takes place. there will be less wastage of time and efforts.

Salaries effect the employees productivity and work performance.. and lesser morale of employees. weekly or monthly irrespective of their output. seminars. The inproficient as well as semi. 2. conferences. It is generally used in case of new employees. coaching. Time Rate Method Piece Rate Method These methods of employee remuneration are explained below in detail Methods of Employee Remuneration 1. This system improves the morale of the employees as the salaries are directly related with their work efforts. Time Rate Method: Under time rate system. Off the job training is also called as vestibule training. . it leads to tight supervision. The motto of such training is “learning by doing. On the job training. This method encourages employees unity as employees of a particular group/cadre get equal salaries. Remuneration provides basic attraction to a employee to perform job efficiently and effectively. Thus the amount and method of remuneration are very important for both management and employees. 2. known as a vestibule) where the actual working conditions are duplicated. Under this system the determination of employee cost per unit is not difficult because salaries differ with output. Remuneration leads to employee motivation. Such method is costly and is effective if and only if large number of employees have to be trained within a short time period. etc. the employees are trained in a separate area( may be a hall. 2.” Instances of such on-job training methods are job-rotation. There are some drawbacks of Time Rate Method.On the job training methods are those which are given to the employees within the everyday working of a concern.etc. indefinite employee cost. In this system emphasis is more on quantity output rather than quality output. It is a very simple method of remuneration. There is greater workefficiency in this method.proficient employees can be well trained by using such training method. Salaries constitutes an important source of income for employees and determine their standard of living. lesser efficiency of employees as there is no distinction made between efficient and inefficient employees. Piece Rate Method: It is a method of compensation in which remuneration is paid on the basis of units or pieces produced by an employee. There are mainly two types of Employee Remuneration 1. It is a simple and cost-effective training method. It leads to minimum wastage of resources and lesser chances of accidents. Off the job training. entrance. Instances of off the job training methods are workshops. Employee Remuneration Employee Remuneration refers to the reward or compensation given to the employees for their work performances. Time Rate method leads to quality output and this method is very beneficial to new employees as they can learn their work without any reduction in their salaries. The employees are paid a fixed pre-decided amount hourly.Off the job training methods are those in which training is provided away from the actual working condition.1. There is less supervision required under this method and hence the per unit cost of production is low.i. remuneration is directly linked with the time spent or devoted by an employee on the job.e. such as. reception area. The employees are trained in actual working scenario. Time rate system is more suitable where the work is non-repetitive in nature and emphasis is more on quality output rather than quantity output. daily. temporary promotions. etc.

Planning starts with the setting of goals and objectives to be achieved. b. According to Koontz & O’Donell. k. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals. units produced. Piece rate system is more suitable where the nature of work is repetitive and quantity is emphasized more than quality. d. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. how and who is going to perform a specific job. Planning requires a systematic approach. According to Urwick. m. j. Moreover objectives focus the attention of managers on the end results to be achieved. It is rightly said “Well plan is half done”. Hence objectives should be practical. acceptable. g. It makes possible things to occur which would not otherwise occur”. It is a preparatory step. higher cost of production and insecurity among the employees. to think before acting and to act in the light of facts rather than guesses”. It is to find out what obstacles are there in the way of business during the course of operations. “Planning is deciding in advance what to do. Otherwise the activities undertaken are bound to be ineffective. how to do and who is to do it. contribution & perfect adjustment. As a matter of fact. etc. lesser unity of employees. precise and unambiguous language. They serve as a basis of planning. c. wastage of resources. such as. objectives should be stated in a clear. Establishment of planning premises is concerned to take such steps that avoids these obstacles to a great extent. where we want to go. Steps in Planning Function Planning function of management involves following steps:- Establishment of objectives a. workable and achievable. As far as possible. objectives should be stated in quantitative terms. Therefore. l. h. For example. New Planning Function of Management Planning means looking ahead and chalking out future courses of action to be followed. But such an objective cannot be stated in quantitative terms like performance of quality control manager. . Such goals should be specified in qualitative terms. effectiveness of personnel manager. it is not easily computable. Planning bridges the gap between where we are to. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. Number of men working. objectives provide nucleus to the planning process. It is a systematic activity which determines when. Establishment of Planning Premises Planning premises are the assumptions about the lively shape of events in future. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination.There are some drawbacks of this method. i. Planning is a detailed programme regarding future courses of action. wages given. leads to deterioration in work quality. e. “Planning is a mental predisposition to do things in orderly way. f. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts.

v. Characteristics of Planning 1. y. The goals established should general acceptance otherwise individual efforts & energies will go misguided and misdirected. After objective and scientific evaluation. E. The follow up must go side by side the implementation of plans so that in the light of observations made. Derivative plans indicate time schedule and sequence of accomplishing various tasks.controllable. schedules. budgets. Also the employees will be more interested in the execution of these plans.n. These are meant to support and expediate the achievement of basic plans. if profit maximization is the main aim of the enterprise. political and economical changes. After the plans have been determined. production maximization. Planning is goal-oriented. it is important to appraise its effectiveness. it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. Subordinates may feel motivated since they are involved in decision making process. Thus planning is based on forecasting. ff. cc. Secondary plans will flow from the basic plan. the best alternative is chosen. c. . d. When forecast are available and premises are established. The planners should take help of various quantitative techniques to judge the stability of an alternative. etc. each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. g. Choice of alternative course of action Formulation of derivative plans u. and cost minimization. philosophy of management. It requires peeping in future. Planning premises may be internal or external. dd. Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Maruti Udhyog is trying to capture once again Indian Car Market by launching diesel models. For example. demerits as well as the consequences of each alternative must be examined before the choice is being made. These detail plans include policies. management labour relations. This enables the management to correct deviations or modify the plan. it is put into action. x. Planning identifies the action that would lead to desired goals quickly & economically. Planning is done for future. o. b. Internal includes capital investment policy. programmes. w. bb. f. a. Planning is made to achieve desired objective of business. t. For this purpose. The merits. This is done on the basis of feedback or information received from departments or persons concerned. derivative plans will include sales maximization. rules. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. p. The purposes behind taking them into confidence are :a. analyzing it and predicting it. q. procedures.economic. e. r. ee.g. c. future plans can be made more realistic. a number of alternative course of actions have to be considered. z. etc. Internal premises are controllable whereas external are non. b. Planning is looking ahead. s. This step establishes a link between planning and controlling function. Securing Co-operation Follow up/Appraisal of plans aa. After the selected plan is implemented. It provides sense of direction to various activities. After choosing a particular course of action. Whereas external includes socio.

z. policies etc. c. d. of alternatives. directing and controlling. the scope of planning may differ from one level to another. Of course. Planning leads to accompishment of objectives at the minimum possible cost. planning must provide enough room to cope with the changes in customer’s demand. Advantages of Planning 1. The top level may be more concerned about planning the organization as a whole whereas the middle level may be more specific in departmental plans and the lower level plans implementation of the same. gg. m. Planning leads to proper utilization of men. plans are subjected to revaluation and review in the light of new requirements and changing conditions. Thus. aa. Planning is the primary function of management / Primacy of Planning. ii. the original plan of action must be revised and updated to male it more practical. staffing. facts and considered estimates. Planning is done for the future. j. Planning is all Pervasive. ff. A plan is a synthesis of forecast. It avoids wastage of resources and ensures adequate and optimum utilization of resources. Plans are also prepared for specific period f time and at the end of that period. Under changed circumstances. y. w. Planning essentially involves choice among various alternatives. It is a mental predisposition for things to happen in future. it makes objectives more clear and specific. Planning is designed for efficiency. problems may keep cropping up and they have to be tackled by planning effectively. Planning is a Continuous Process. All the functions of management are performed within the framework of plans laid out. He has to pick the best depending upon requirements & resources of the enterprises. It is required at all levels of management and in all departments of enterprise. dd. hh. It serves as a guide for organizing. foresight and imagination. competition. Planning is an intellectual process. It highlights the purposes for which various activities are to be undertaken. Planning is always based on goals. Planning begins with determination of objectives. Planning facilitates management by objectives. money. Planning helps in focusing the attention of employees on the objectives or goals of enterprise. r. p. q. . k. ee. Therefore planning is the basic or fundamental function of management. Planning is Flexible. Therefore. methods and machines. t. In fact. Since future is unpredictable. bb. govt. u. Planning never comes into end till the enterprise exists issues. Planning is a never ending function due to the dynamic business environment. It is not a mere guesswork but a rotational thinking. decision making is an integral part of planning. there is no need planning because there is no choice. A plan is worthless or useless if it does not value the cost incurred on it. cc. if there is only one possible course of action. i. x. a. materials.h. effort and money. Planning involves choice & decision making. o. A manager is surrounded by no. Therefore planning must lead to saving of time. l. s. Planning is a mental exercise involving creative thinking. b. Planning lays foundation for other functions of management. v. sound judgement and imagination. A manager can prepare sound plans only if he has sound judgement. n.

o. z. w. In other words. Planning encourages innovations. Therefore. Planning improves employee’s moral. Planning facilitates co-ordination. g. i. Without planning an organization has no guide. controlling is the fruit. raw materials can be purchased in bulk and transportation cost can be minimized. This encourages employees to show their best and also earn reward for the same. planning and controlling are the two sides of a same coin. It also avoids wastage of resources by selecting most appropriate use that will contribute to the objective of enterprise. It also facilitates optimum utilization of resources which brings economy in operations. Therefore with the help of planning. y. q. Planning facilitates controlling. t. We cannot think of an effective system of controlling without existence of well thought out plans. Planning provides competitive edge. Effective planning secures economy since it leads to orderly allocation ofresources to various operations. extension of work.e. dd. overall efficiency. This is because of the fact that planning may involve changing in work methods. improves quality of production and thus the competitive strength of the enterprise is improved. x. With the help of forecasting not only the enterprise secures its future but at the same time it is able to estimate the future motives of it’s competitor which helps in facing future challenges. it leads to better co-ordination. In the process of planning. Planning provides competitive edge to the enterprise over the others which do not have effective planning. n. It avoids duplication of efforts. s. Planning is basically a decision making function which involves creative thinking and imagination that ultimately leads to innovation of methods and operations for growth and prosperity of the enterprise. l. u. Planning creates an atmosphere of order and discipline in organization. redefining of goals. Planning minimizes uncertainties. Planning facilitates existence of certain planned goals and standard of performance. Planning helps in achieving economies. j. k. p. bb. f. There are risks of various types due to uncertainties. etc. aa. gg. If planning is root. managers have the opportunities of suggesting ways and means of improving performance. For example. At the same time it ensures regular supply for the production department. that is. cc. Employees know in advance what is expected of them and therefore conformity can be achieved easily. planning brings order and rationality into the organization. quality. hh. h. r. Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events. All activities are directed towards common goals. Planning revolves around organizational goals. It helps in finding out problems of work performance and aims at rectifying the same. Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives. It provides basis of controlling. Planning helps in reducing uncertainties of future as it involves anticipation of future events. In fact. Planning provides pre-determined goals against which actual performance is compared. uncertainties can be forecasted which helps in preparing standbys as a result. There is an integrated effort throughout the enterprise in various departments and groups. ff. Planning creates a healthy attitude towards work environment which helps in boosting employees moral and efficiency. Business is full of uncertainties. . planning leads to best utilization of possible resources. m. quantity designs. ee. uncertainties are minimized to a great extent. v. Therefore.

Planning has tendency to make administration inflexible. it’s analysis and interpretation thereof. s. Any change in the anticipated situation may render plans ineffective. Employees are more concerned about fulfillment of plan performance rather than any kind of change. Planning is based on forecasts which are mere estimates about future. Planning implies prior determination of policies. Machinery of planning can never be freed of bias. d. Every planner has his own likes. Planning may be used to serve individual interests rather than the interest of the enterprise. formulation of plans and programmes to suit ones own requirement rather than that of whole organization. Thus. excessive reliance on plans may prove to be fatal. l. b. Time consuming i. Managers assume that as long as they work as per plans. u. Planning therefore introduces inelasticity and discourages individual initiative and experimentation. dislikes. ’ Expenses on planning should never exceed the estimated benefits from planning. Collection. New Organizing Function of Management . Some of them are inherit in the process of planning like rigidity and other arise due to shortcoming of the techniques of planning and in the planners themselves. m. g. j. effort and money Accoring to Koontz and O’Donell. attitudes and interests which is reflected in planning. facts and alternatives involves a lot of expense in terms of time. Planning is a time consuming process because it involves collection of information. Probability in planning k. q. Elaborate planning may create a false sense of security to the effect that everything is taken for granted. e. The development of employees is highly doubted because of which management might have faced lot of difficulties in future. c. it is satisfactory. Therefore they fail to take up timely actions and an opportunity is lost. analysis and evaluation of different information. o. n. This entire process takes a lot of time specially where there are a number of alternatives available. There is no scope for individual freedom. h. p. r. preferences. ’ Misdirected Planning f. These estimates may prove to be inexact due to the uncertainty of future. False sense of security Expensive t. Therefore planning is not suitable during emergency or crisis when quick decisions are required.Disadvantages of Planning Internal Limitations There are several limitations of planning. procedures and programmes and a strict adherence to them in all circumstances. Plans do not always reflect real situations inspite of the sophisticated techniques of forecasting because future is unpredictable. Rigidity a. Attempts can be made to influence setting of objectives.

ordination among different departments of the enterprise. making sales. The top management is into formulation of policies.’’ Therefore. This helps in avoiding wastage of time. Authority responsibility relationships can be fruitful only when there is a formal relationship between the two.Organizing is the function of management which follows planning. 4. Well defined jobs and responsibilities attached helps in bringing efficiency into managers working. etc. Clarity should be made for having an ultimate responsibility attached to every authority. a manager always has to organize in order to get results. This activity of giving a rank in order to the managerial positions is called hierarchy.responsibility is very important. The clarification of authority help in bringing efficiency in the running of a concern.Organizational structure helps in putting right men on right job which can be done by selecting people for various departments according to their qualifications. All these activities have to be grouped and classified into units. Therefore. Clarifies authority .Once the departments are made. Classifying the authority . 4. This helps in achieving efficiency in the running of a concern. A manager performs organizing function with the help of following steps:- 1. A clear organizational structure is drawn and all the employees are made aware of it. Specialization . Departmentally organizing the activities .responsibility is very important.ordination between authority and responsibility. physical and financial resources takes place. 3. Hence. the jobs related and the co. 3. There should be co. This can be done by clarifying the powers to every manager and the way he has to exercise those powers should be clarified so that misuse of powers do not take place. Well defined jobs . the manager likes to classify the powers and its extent to the managers.All the activities which have to be performed in a concern have to be identified first. co. Each individual is made aware of his authority and he/she knows whom they have to take orders from and to whom they are accountable and to whom they have to report. This is helping in defining the jobs properly which clarifies the role of every person.ordination between authority. “Organizing is a function by which the concern is able to define the role positions. 2.ordination of authority. in avoidance of duplication or overlapping of efforts and this helps in bringing smoothness in a concern’s working.operation among individuals. .Organizational structure helps in clarifying the role positions to every manager (status quo). For smooth running of an organization.Relationships are established among various groups to enable smooth interaction toward the achievment of the organizational goal. “Authority without responsibility leads to ineffective behaviour and responsibility without authority makes person ineffective.Organizational structure is a network of relationships in which the work is divided into units and departments. Co-ordination .In this step. 2. money. This division of work is helping in bringing specialization in various activities of concern. quality control.Organization is a means of creating co.ordination between different relationships. Co-ordination between authority and responsibility . skill and experience. It creates clear cut relationships among positions and ensure mutual co. the middle level management into departmental supervision and lower level management into supervision of foremen. organizational function helps in achievement of results which in fact is important for the functioning of a concern. Harmony of work is brought by higher level managers exercising their authority over interconnected activities of lower level manager. the co. It is a function in which the synchronization and combination of human. record keeping. This helps in increasing productivity. There is a saying. This organization of dividing the whole concern into independent units and departments is called departmentation. the manager tries to combine and group similar and related activities into units or departments. preparation of accounts. effort. Importance of Organizing Function 1. Identification of activities . For example. inventory control. According to Chester Barnard. All the three resources are important to get results.

Therefore. Co. the primary functions of production.ordination is possible. Clarifications in authority. this provides enough space to a manager to develop his talents and flourish his knowledge. For example. Specialization is achieved through division of work. Sense of security . marketing and finance and the authority responsibility relationships in these departments shouldbe clearly defined to every person attached to that department.5.Where the roles and activities to be performed are clear and every person gets independence in his working. Scope for new changes . Efficiency can be brought about by clarifying the role positions to the managers. Principles of Organizing The organizing process can be done efficiently if the managers have certain guidelines so that they can take decisions and can act. Effective administration – The organization structure is helpful in defining the jobs positions.ordination and thereby organization can take place effectively. Growth and diversification . co-ordination between authority and responsibility and concentrating on specialization. the whole work of a concern should be divided amongst the subordinates on the basis of qualifications. clarity of powers helps automatically in increasing mental satisfaction and thereby a sense of security in a concern. The roles to be performed by different managers are clarified. This scope for bringing new changes into the running of an enterprise is possible only through a set of organizational structure. all the functions in a concern should be completely and clearly defined to the managers and subordinates.responsibility relationships helps in achieving co. 6. authority and relationships of people towards each other. responsibilities. the following principles of organization can be used by a manager. In addition to this. This is possible only when the organization structure is well. Principle of Specialization According to the principle. a company can diversify if its potential grow. abilities and skills. 8. A manager gets ready for taking independent decisions which can be a road or path to adoption of new techniques of production. To organize in an effective manner. This can be done by clearly defining the duties.satisfaction. Clarification in the authority-responsibility relationship helps in efficient organization. . This all leads to efficient and effective administration.defined.Organizational structure clarifies the job positions.A company’s growth is totally dependant on how efficiently and smoothly a concern works. The roles assigned to every manager is clear. This is possible through a set of formal structure. Principle of Functional Definition According to this principle. This is very important for job. 7. It is through division of work specialization can be achieved which results in effective organization.

In such cases. e.In the concerns where managers are capable. Better supervision e. confusions are less and congeniality of the environment can be maintained. d. wastages of resources are minimized. for example.Decentralization is done in order to achieve specialization in which authority is shared by many people and managers at different levels. Messages can be distorted. There are certain concerns where decentralization is done in very effective way which results in direct and personal communication between superiors and sub. On the other hand. tight control and supervision is required in which narrow span is more helpful. one manager can effectively and efficiently handle a large number of subordinates at one time. In such cases.According to this span. Work which requires tight control and supervision. Suitable for repetitive jobs According to this span. This decision can be taken by choosing either froma wide or narrow span. Nature of work. Principle of Scalar Chain Scalar chain is a chain of command or authority which flows from top to bottom. e. wide span of control is suitable and the supervisors can manage and control large number of sub. which requires craftsmanship. Communication gaps can come. if work requires mental skill or craftsmanship. In such cases. d. Degree of decentralization.Principles of Span of Control/Supervision According to this principle.If the work is of repetitive nature. The manager according to a narrow span supervises a selected number of employees at one time. wide span of supervision is more helpful. b. b. handicrafts. Co-ordination is difficult to be achieved. Better communication d. communication is affected. Hence wide span is suitable. etc. there narrow span is more helpful.Where the subordinates are capable and competent and their understanding levels are proper. Managerial abilities. the work and authority is divided amongst many subordinates and a manager doesn't supervises and control a very big group of people under him. Factors influencing Span of Control c. the manager can handle large number of employees. In such cases.ordinates at one time. the subordinates tend to very frequently visit the superiors for solving their problems.It is one in which a manager can supervise and control effectively a large group of persons at one time. a manager should be able to handle what number of employees under him should be decided. overlapping . Prompt response from the employees c. c. Less overhead cost of supervision b. With a chain of authority available. a tall structure is helpful. Narrow span of control. Better co-ordination f. Specialization work can be achieved.When the work is delegated to lower levels in an efficient and proper way. There are two types of span of control:- a. wide span of control is always helpful. Wide span of control. wide span again helps. g. qualified and experienced. According to this principle. Delegation of authority. The features of this span are:a. Competence of subordinates. ivory work. The features are:a.ordinates and there the superiors can manage large number of subordinates very easily. span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. f.

Classification of Organizations Organizations are basically clasified on the basis of relationships. Every subordinate is answerable and accountable to one boss at one time. Authority Flows from Top to Bottom Managing Director ↓ Marketing Manager ↓ Sales/ Media Manager ↓ Salesmen According to the above diagram. This scalar chain of command always flow from top to bottom and it defines the authority positions of different managers at different levels. the official chain of communication becomes clear which is helpful in achievement of results and which provides stability to a concern. Principle of Unity of Command It implies one subordinate-one superior relationship. This authority is shared by the Marketing Manager who shares his authority with the Sales Manager. There are two types of organizations formed on the basis of relationships in an organization . it clarifies the authority positions to managers at all level and that facilitates effective organization.therefore.ordination and .of work is avoided and easy organization takes place. the Managing Director has got the highest level of authority. From this chain of hierarchy. effective organization. A scalar chain of command facilitates work flow in an organization which helps in achievement of effective results. This helps in avoiding communication gaps and feedback and response is prompt. physical. that is. financial resources which helps in easy co. Unity of command also helps in effective combination of resources. As the authority flows from top to bottom.

3.This is one which refers to a structure of well defined jobs each bearing a measure of authority and responsibility. both formal and informal organizations are required. Formal organization has a formal set up to achieve pre. It emerges from the formal organization and it is not based on any rules and regulations as in case of formal organization Relationship between formal and informal organizations For a concerns working both formal and informal organization are important. It is the most simplest form of organization. They interact and communicate amongst themselves. Better discipline. 4. Simplest. They are the two phase of a same concern. Therefore. the authority flows from top to bottom in a concern. Formal Organization . There is no conscious effort made to have informal organization. we can say that informal organization emerges from formal organization.operation with each other. Within the formal organization. superior-subordinate relationship is maintained and scalar chain of command flows from top to bottom. This kind of organization always helps in bringing efficiency in communication and bringing stability to a concern. Informal Organization . This is the reason for calling this organization as scalar organization which means scalar chain of command is a part and parcel of this type of administrative organization. .ordination taking place. Formal and informal organization helps in bringing efficient working organization and smoothness in a concern. Therefore. Formal organization can work independently. In this type of organization. Informal organizations develop relationships which are built on likes. 2. 3.In these organizations. The line of command is carried out from top to bottom. Line of authority flows from top to bottom. the members undertake the assigned duties in co. Unified control ensures better discipline. Unity of Command. the line of command flows on an even basis without any gaps in communication and co. When several people work together for achievement of organizational goals. social tie ups tends to built and therefore informal organization helps to secure cooperation by which goals can be achieved smooth. both formal and informal organizations are important. Unified control by the line officers can be maintained since they can independently take decisions in their areas and spheres. feelings and emotions.It refers to a network of personal and social relationships which spontaneously originates within the formal set up. According to this type of organization. Merits of Line Organization 1.It is the most simple and oldest method of administration. Line Organization Line organization is the most oldest and simplest method of administrative organization. Formal organization originates from the set organizational structure and informal organization originates from formal organization. dislikes.The control is unified and concentrates on one person and therefore. But informal organization depends totally upon the formal organization. Therefore.1. For an efficient organization. the network of social groups based on friendships can be called as informal organizations. he can independently make decisions of his own. It is a conscious determination by which people accomplish goals by adhering to the norms laid down by the structure.determined goals. Features of Line Organization 1. 2. Specialized and supportive services do not take place in these organization. This kind of organization is an arbitrary set up in which each person is responsible for his performance.

4.The line officials have tendency to misuse their authority positions. For example. Inadequate communication. 3.ordination is less. MANAGING DIRECTOR ↓ Production Manager ↓ Marketing Manager ↓ Finance Manager ↓ Plant Supervisor ↓ Market Supervisor ↓ Chief Assisstant . Demerits of Line Organization 1. Since the authority relationships are clear. are carried down and implemented in the same way. line officials are independent and can flexibly take the decision. in certain situations wrong decisions. Line and Staff Organization Line and staff organization is a modification of line organization and it is more complex than line organization.A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions.Due to the factors of fixed responsibility and unity of command. The power of command always remains with the line executives and staff supervisors guide. Over reliance. Fixed responsibility. 5. Personal Secretary to the Managing Director is a staff official. 4. 2. Prompt decision. every line executive has got fixed authority. the officials can take prompt decision. This leads to autocratic leadership and monopoly in the concern.The line executive’s decisions are implemented to the bottom. The complaints and suggestions of lower authority are not communicated back to the top authority. advice and council the line executives.There is a co-ordination between the top most authority and bottom line authority. 5.In this type of organization. power and fixed responsibility attached to every authority.Whatever decisions are taken by the line officials. Authority leadership. This flexibility gives satisfaction of line executives. Lack of specialization.The policies and strategies which are framed by the top authority are carried out in the same way. 6. This leaves no scope for communication from the other end. This results in overrelying on the line officials. So there is one way communication. According to this administrative organization. Lack of Co-ordination. expert advices whatever decisions are taken by line managers are implemented in the same way. Therefore. the degree of effective co. specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority. Flexibility.

A. Benefits of Research and Development. 5. 3. Benefit of Specialization. Staff Supervisor.The line executive can concentrate on the execution of plans and they get relieved of dividing their attention to many areas. the line executives get time to execute plans by taking productive decisions which are helpful for a concern. 3. This way every officer or official can concentrate in its own area.Operation Control Manager. the advice and counseling which is provided to the line executives divides the work between the two. Line Authority 2. Staff Assistants.Unity of action is a result of unified control. b.P. This serves as effective control in the whole enterprise.The line and staff organization facilitates expert advice to the line executive at the time of need. Control and its effectivity take place when co. This in itself is a training ground for them. 6. This feature helps in bringing coordination in work as every official is concentrating in their own area. In the line and staff authority all the officials have got independence to make decisions.ordination. Division of work and specialization takes place in line and staff organization. It is more complex than line concern. Line executives can give due concentration to their decision making. Efficiency can be achieved through the features of specialization. b. Quality Controller. 8. 2. There are two lines of authority which flow at one time in a concern : a.Due to the presence of staff specialists and their expert advice serves as ground for training to line officials. The whole organization is divided into different functional areas to which staff specialists are attached. 4. There are two types of staff : a. Balanced decisions. 7.Line and staff through division of whole concern into two types of authority divides the enterprise into parts and functional areas. This relationship automatically ends up the line official to take better and balanced decision. The planning and investigation which is related to different matters can be done by the staff specialist and line officers can concentrate on execution of plans. Secretary to Marketing Manager.Line and staff organization through specialization is able to provide better decision making and concentration remains in few hands.The factor of specialization which is achieved by line staff helps in bringing co. This gives a wide scope to the line executive to bring innovations and go for research work in those areas. Relief to line of executives. Better co-ordination. Staff Authority 7 Power of command remains with the line executive and staff serves only as counselors Merits of Line and Staff Organization 1. 4. This is possible due to the presence of staff specialists.↓ Foreman ↓ Salesman ↓ Accountant Features of Line and Staff Organization 1.In a line and staff organization. 6. the line executives. Training.ordination is present in the concern. PRO Line and Staff Organization is a compromise of line organization.Through the advice of specialized staff. to Managing Director. . Expert advice. Unity of action. 5.

3. Assumption of authority.Line and staff are two authorities which are flowing at the same time. Staff steals the show. 5.Line. Costly. Hence the problem of understanding can be a hurdle in effective running.In a line and staff organization.Management control is simplified as the mental functions are separated from manual functions. 6. finance. Checks and balances keep the authority within certain limits. Three authorities exist. The factors of designations.The power of concern is with the line official but the staff dislikes it as they are the one more in mental work. 3. there are two authority flowing at one time. managers working above them. 4. 2.In line and staff concern. Specialists may be asked to judge the performance of various sections. staff and function. Line and staff conflicts. 5.Better division of labour takes place which results in specialization of function and it’s consequent benefit. 2.In a line and staff concern. 4. This helps in maintaining quality and uniformity of performance of different functions throughout the enterprise.W. Effective Control. Merits of Functional Organization 1. This leads to minimizing of co. Specialization. As a result. This can affect the efficient running of the enterprise. The concept of Functional organization was suggested by F. This proves to be costly for a concern with limited finance. This results in the confusion between the two. Lack of understanding.The line official get used to the expertise advice of the staff. This is an organization in which we can define as a system in which functional department are created to deal with the problems of business at various levels.ordination which hampers a concern’s working. 2. Taylor who recommended the appointment of specialists at important positions. This means that subordinates receives orders from several specialists. the concerns have to maintain the high remuneration of staff specialist. can pose a distress on the minds of the employees. status influence sentiments which are related to their relation. Functional authority remains confined to functional guidance to different departments. Features of Functional Organization 1.Demerits of Line and Staff Organization 1. marketing and personal relations. Functional Organization Functional organization has been divided to put the specialists in the top position throughout the enterprise. the functional head and Marketing Director directs the subordinates throughout the organization in his particular area. At times the staff specialist also provide wrong decisions which the line executive have to consider. . Complex form of administrative organization compared to the other two. the workers are not able to understand as to who is their commanding authority. Lack of sound advice. Each functional area is put under the charge of functional specialists and he has got the authority to give all decisions regarding the function whenever the function is performed throughout the enterprise. the higher returns are considered to be a product of staff advice and counseling. The satisfaction of line officials is very important for effective results. The line officials feel dissatisfied and a feeling of distress enters a concern. Principle of unity of command does not apply to such organization as it is present in line organization. For example. The entire organizational activities are divided into specific functions such as operations.

2.Disciplinary control becomes weak as a worker is commanded not by one person but a large number of people. Demerits of Functional Organization 1. it is difficult to fix responsibility. Conflicts.Greater efficiency is achieved because of every function performing a limited number of functions.ordination. 4. Difficulty in fixing responsibility. Responsibility without adequate authority leads to discontent and dissatisfaction among the person.in short. Elements of Delegation 1. Accountability can’t be escaped. Therefore. Authority . If the tasks for which he was held responsible are not completed.means giving explanations for any variance in the actual performance from the expectations set. While if he doesn’t accomplish tasks assigned as expected. and ’A’ delegates this task to B and asks him to ensure that task is done well. Lack of Co. 3. Economy. The top level management has greatest authority.Expert knowledge of functional manager facilitates better control and supervision.3.ordination becomes difficult. he is bound for praises. In order to meet the targets. Being accountable means being innovative as the person will think beyond his scope of job. A person who is given the responsibility should ensure that he accomplishes the tasks assigned to him. The middle level and lower level management holds more responsibility. Costly. The person held responsible for a job is answerable for it.The functional system is quite complicated to put into operation. but accountability still rest with ’A’. 5. Delegation is about entrusting someone else to do parts of your job. co. Thus. 2. All people who have the authority should know what is the scope of their authority is and they shouldn’t misutilize it. Responsibility . responsibility rest with ’B’. Accountability can not be delegated. Accountability . 5. Delegation of Authority means division of authority and powers downwards to the subordinate. Delegation of authority can be defined as subdivision and sub-allocation of powers to the subordinates in order to achieve effective results. Accountability . to take decisions and to give orders so as to achieve the organizational objectives. if ’A’ is given a task with sufficient authority. means being answerable for the end result. then he should not give explanations or excuses. Authority should be accompanied with an equal amount of responsibility. Authority is the right to give commands. Delegating the authority to someone else doesn’t imply escaping from accountability. For example. It explains how a superior gets work done from his subordinate by clearly explaining what is expected of him and how he should go about it. the manager should delegate authority.Specialization compiled with standardization facilitates maximum production and economical costs. especially when it is carried out at low levels. Confusion. Accountability still rest with the person having the utmost authority. Responsibility flows from bottom to top. .Because of multiple authority. If he performs the tasks assigned as expected. Efficiency. authority can be defined as the power and right of a person to use and allocate the resources efficiently. there is no unity of command. orders and get the things done. Authority always flows from top to bottom. They may not agree on certain issues. 3. then also he is answerable for that.defined. Delegation of Authority A manager alone cannot perform all the tasks assigned to him. The top level management is most accountable. Expansion. Authority must be well. 4.in context of a business organization.There may be conflicts among the supervisory staff of equal ranks.Maintainance of specialist’s staff of the highest order is expensive for a concern.is the duty of the person to complete the task assigned to him. It arises from responsibility.

is the obligation of the individual to carry out his duties as per the standards of performance. 3. it involves following steps:- 1. a manager exercises control. Creating Responsibility and Accountability – The delegation process does not end once powers are granted to the subordinates. Therefore every manager. we can say that authority flows from top to bottom and responsibility flows from bottom to top. Assignment of Duties – The delegator first tries to define the task and duties to the subordinate. Therefore. a manager has to work in a system and has to perform following steps : 1. it is that which gives effectiveness to authority. It is only through authority. Therefore. Therefore. it becomes important that with every authority position an equal and opposite responsibility should be attached. for every authority an equal accountability is attached. responsibility is absolute and cannot be shifted.e. Granting of authority – Subdivision of authority takes place when a superior divides and shares his authority with the subordinate. The managers at all levels delegate authority and power which is attached to their job positions. Responsibility is very important. it is the marketing manager who will be accountable to the chief executive officer. If the marketing manager directs the sales supervisor for 50 units of sale to be undertaken in a month. 3. it is said that authority is delegated. Accountability arises out of responsibility and responsibility arises out of authority. The subdivision of powers is very important to get effective results. In a way through exercising the control the superior is demanding accountability from subordinates. Responsibility is said to be the factor or obligation of an individual to carry out his duties in best of his ability as per the directions of superior. Differences between Authority and Responsibility Authority Responsibility . Accountability is a result of responsibility and responsibility is result of authority.the delegator has to follow a system to finish up the delegation process. They at the same time have to be obligatory towards the duties assigned to them. Equally important is the delegatee’s role which means his responsibility and accountability is attached with the authority over to here.For achieving delegation. Relationship between Authority and Responsibility Authority is the legal right of person or superior to command his subordinates while accountability is the obligation of individual to carry out his duties as per standards of performance Authority flows from the superiors to subordinates. It is for this reason.. At the same time. 2.i. He also has to define the result expected from the subordinates. on the others hand. every subordinate should be given enough independence to carry the task given to him by his superiors. Clarity of duty as well as result expected has to be the first step in delegation. responsibility is created and accountability is imposed. Therefore. Therefore. 2.in which orders and instructions are given to subordinates to complete the task. Assignment of tasks and duties Granting of authority Creating responsibility and accountability Delegation of authority is the base of superior-subordinate relationship. If the above standards are not accomplished. Accountability.

It is the obligation of subordinate to perform the work assigned to him. Delegation also helps in breaking the monotony of the subordinates so that they can be more creative and efficient. Responsibility arises out of superior–subordinate relationship in which subordinate agrees to carry out duty given to him. The flow of authority is from top to bottom which is a way of achieving results. This effectivity helps a manager to prove his ability and skills in the best manner.in a way. They get motivated to work and this motivation provides appropriate results to a concern. Authority is attached to the position of a superior in concern. their decision-making gets strong and in a way they can flourish the talents which are required in a manager. The importance of delegation can be justified by – 1. It flows from bottom to top. a manager can be tested on his traits. is multiplying himself by dividing/multiplying his work with the subordinates. effective motivation and the leadership traits are flourished. business analysis etc. 3. . Through delegation. Importance of Delegation Delegation of authority is a process in which the authority and powers are divided and shared amongst the subordinates. helps the manager to attain communication skills. Authority can be delegated by a superior to a subordinate Responsibility cannot be shifted and is absolute It flows from top to bottom. Therefore it is only through delegation. With effective results. Through granting powers and getting the work done. This in fact shows that through delegation. 2.It is the legal right of a person or a superior to command his subordinates. 5. When the work of a manager gets beyond his capacity. there should be some system of sharing the work. a manager is able to divide the work and allocate it to the subordinates. This will require creation of more managers which can be fulfilled by shifting 4. This is how delegation of authority becomes an important tool in organization function. the superior-subordinate relationship become meaningful. An organization functions as the authority flows from top level to bottom. This way he is able to bring effectiveness in his work as well in the work unit. gives stability to a concern’s working. Delegation of authority is help to both superior and subordinates. supervision and guidance. Delegation of authority in a way gives enough room and space to the subordinates to flourish their abilities and skill. a concern can think of creating more departments and divisions flow working. Job satisfaction is an important criterion to bring stability and soundness in the relationship between superior and subordinates. in fact. he can concentrate his energy on important and critical issues of concern. a manager. This .planning. Delegation of authority is the ground on which the superior-subordinate relationship stands. Through delegating powers. This helps in reducing his work load so that he can work on important areas such as . Since the manager get enough time through delegation to concentrate on important issues. With the reduction of load on superior. Through delegation. the subordinates get a feeling of importance. Delegation of authority is not only helpful to the subordinates but it also helps the managers to develop their talents and skills.

Therefore. from the above points. production manager will be responsible to CEO if their production is not completed. The manager should be forced to consult their superiors with those matters of which the authority is not given that means before a manager takes any important decision. He will always remain responsible till the completion of task. 3. It does not means that he can escape from his responsibility.This says that the authority can be delegated but responsibility cannot be delegated by managers to his subordinates which means responsibility is fixed. The authority should be given in such a way which matches the task given to him. Both of them should go hand in hand. a marketing manager explains the salesmen regarding the units of sale to take place in a particular day. is always responsible to his superior for carrying out his task by delegating the powers. he should make sure that he has the authority to do that on the other hand. Every superior is responsible for the acts of their subordinates and are accountable to their superior therefore the superiors cannot pass the blame to the subordinates even if he has delegated certain powers to subordinates example if the production manager has been given a work and the machine breaks down. This helps in both virtual as well as horizontal growth which is very important for a concern’s stability. . say ten units a day have to be the target sales. Centralization and Decentralization Centralization is said to be a process where the concentration of decision making is in a few hands. ability and soundness to a concern. if a subordinate is given a responsibility to perform a task. 4. This principle also does not provide excessive authority to the subordinate which at times can be misused by him. we can justify that delegation is not just a process but it is a way by which manager multiples himself and is able to bring stability. Principle of result excepted. The principles of delegation are as follows: - 1. Therefore. no matter what is his authority. mentioning the target sales is very important so that the salesman can perform his duty efficiently with a clear set of mind. The implication of centralization can be :1. subordinate should also not frequently go with regards to their complaints as well as suggestions to their superior if they are not asked to do. If repairmen is not able to get repair work done. Principle of Parity of Authority and Responsibility. The manager at every level.According to this principle. “Centralization” is the systematic and consistent reservation of authority at central points in the organization. Reservation of operation at lower level at the directions of the top level. The goals and targets should be completely and clearly defined and the standards of performance should also be notified clearly. Reservation of operating authority with the middle level managers. skilled managers to these positions. then at the same time he should be given enough independence and power to carry out that task effectively. 2. 2. Principles of Delegation There are a few guidelines in form of principles which can be a help to the manager to process of delegation.the experienced.This principle suggests that a manager should exercise his authority within the jurisdiction / framework given. According to this principle. 3. there should be no degree of disparity between the two. All the important decision and actions at the lower level. Principle of Authority level. For example. While a marketing manger provides these guidelines of sales. all subjects and actions at the lower level are subject to the approval of top management. the manager should keep a balance between authority and responsibility. Reservation of decision making power at top level. According to Allen.suggests that every manager before delegating the powers to the subordinate should be able to clearly define the goals as well as results expected from them. This principle emphasizes on the degree of authority and the level upto which it has to be maintained. Principle of absolute responsibility.

On the other hand. 5. The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level.if the general manager delegates this power to all the departmental heads at all level. marketing. Decentralization is wider in scope and the subordinate’s responsibility increase in this case. There is a saying that “Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization”. in a business concern. Delegation and Decentralization Basis Delegation Decentralization Meaning Managers delegate some of their Right to take decisions is shared by top . number of departments. concern diversification of activities can place effectively since there is more scope for creating new departments. 4. Decentralization is a systematic delegation of authority at all levels of management and in all of the organization.i. operations can be coordinated at divisional level which is not possible in the centralization set up. etc. In the case of decentralization structure. Implications of Decentralization 1. “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points. in delegation the managers remain answerable even for the acts of subordinates to their superiors. the father & son being the owners decide about the important matters and all the rest of functions like product. on the request of the personnel manager . In decentralization. In fact. According to Allen. On the other hand. decision making power remain in the hands of father & son. In decentralization structure. volume of profits. There is less burden on the Chief Executive as in the case of centralization. Delegation of authority is a complete process and takes place from one person to another. co-ordination to some extent is difficult to maintain as there are lot many department divisions and authority is delegated to maximum possible extent . Therefore in this case. In a decentralization concern. personnel. Therefore. For example.Under centralization. Decentralization is not the same as delegation. While decentralization is complete only when fullest possible delegation has taken place. there is greater motivation and morale of the employees since they get more independence to act and decide. In a decentralization structure. In decentralization. This way the organization is able to process reserve of talents in it.. authority in retained by the top management for taking major decisions and framing policies concerning the whole concern.e. finance. decentralization is all extension of delegation. a decentralization set up is suitable in it. Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of management. the general manager of a company is responsible for receiving the leave application for the whole of the concern. 3. the subordinates get a chance to decide and act independently which develops skills and capabilities. The larger the size of a concern. diversification growth is of a degree. the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. 2. Rest of the authority may be delegated to the middle level and lower level of management. 6. The general manager delegates this work to the personnel manager who is now responsible for receiving the leave applicants. Centralization and decentralization are the categories by which the pattern of authority relationships became clear. For example. diversification and horizontal can be easily implanted. The degree of centralization and decentralization can be affected by many factors like nature of operation. 7. In decentralization. in this situation decentralization has taken place. to the bottom most level delegation reaches. are carried out by the department heads and they have to act as per instruction and orders of the two people. size of a concern. On the other hand. In this situation delegation of authority has taken place.

management and other level of management. Nature It is a routine function It is an important decision of an enterprise. Freedom of Work Freedom is not given to the subordinates as they have to work as per the instructions of their superiors. Decentralization becomes more important in large concerns and it depends upon the decision made by the enterprise. Scope is wide as the decision making is shared by the subordinates also. at all levels and all functions Process Delegation is a process which It is an outcome which explains relationship .e. Need on purpose Delegation is important in all concerns whether big or small. Freedom to work can be maintained by subordinates as they are free to take decision and to implement it. Decentralization is total by nature. Degree Degree of delegation varies from concern to concern and department to department. No enterprises can work without delegation. It spreads throughout the organization i. Responsibility Responsibility remains of the managers and cannot be delegated Responsibility is also delegated to subordinates. It is a systematic act which takes place at all levels and at all functions in a concern. Grant of Authority The authority is granted by one individual to another. Grant of Responsibility Responsibility cannot be delegated Authority with responsibility is delegated to subordinates.function and authority to their subordinates. Scope Scope of delegation is limited as superior delegates the powers to the subordinates on individual bases. it is not compulsory.

In field of management. In simple words. Withdrawal Delegated authority can be taken back. inspiring. “Directing consists of process or technique by which instruction can be issued and operations can be carried out as originally planned” Therefore.Direction is a continuous activity as it continuous throughout the life of organization. Every manager provides guidance and inspiration to his subordinates. Directing initiates action and it is from here actual work starts. Planning. When delegation of authority is done to the fullest possible extent. Continuous Activity . overseeing and instructing people towards accomplishment of organizational goals. Pervasive Function . New Directing Function of Management DIRECTING is said to be a process in which the managers instruct. Direction has got following characteristics: 1.explains superior subordinates relationship between top management and all other departments. According to Human. 2.Directing is required at all levels of organization. Directing is the function of guiding. Directing is said to be the heart of management process. it can be described as providing guidance to workers is doing work. Significance Delegation is essential for creating the organization Decentralization is an optional policy at the discretion of top management. Essentiality Delegation is essential of all kinds of concerns Decentralization is a decisions function by nature. staffing have got no importance if direction function does not take place. it gives use to decentralization. It is considered as a general policy of top management and is applicable to all departments. direction is said to be all those activities which are designed to encourage the subordinates to work effectively and efficiently. organizing. Direction is said to be consisting of human factors. . Freedom of Action Very little freedom to the subordinates Considerable freedom Decentralization can be called as extension of delegation. guide and oversee the performance of the workers to achieve predetermined goals.

Human behaviour is unpredictable by nature and conditioning the people’s behaviour towards the goals of the enterprise is what the executive does in this function. is the central point around which accomplishment of goals take place. This can be resisted by the subordinates.Direction is supposed to be a function dealing with human beings. 5. production increases and thereby the profits. The manager here can explain that the change was in the benefit of the subordinates. It Ingrates Efforts – Through direction. both internal as external. This helps in maximum possible . It is from this function the action takes place. 3. Since human factor is complex and behaviour is unpredictable. Without this function. It is there that direction becomes beneficial. the superiors are able to guide. This can be brought upon by the managers with the help of four tools or elements of direction function – judicious blend of persuasive leadership. 5. Through direction. Effective communication helps in coping up with the changes. This can be done by providing incentives or compensation. easy adaptions and smooth running of an enterprise. The resources can be utilized properly only when less of wastages. 2. Integration of efforts bring effectiveness and stability in a concern. people become inactive and physical resources are meaningless. Through more mechanization. direction function becomes important. an important change in technique of production takes place. Indirectly. etc. the guidance. For this. Coping up with the changes – It is a human behaviour that human beings show resistance to change. it provides many benefits to a concern which are as follows:- 1. The resulting factors are less of manpower and more of machinery. Importance of Directing Function Directing or Direction function is said to be the heart of management of process and therefore. effective communication. Whatever are plans laid.3. it is termed as having delicacy in it to tackle human behaviour. A few philosophers call Direction as “Life spark of an enterprise”. A manager makes use of the element of motivation here to improve the performances of subordinates. Stability is very important since that is an index of growth of an enterprise. This can be done through persuasive leadership and effective communication. which serves as a “Morale booster” to the subordinates Motivation is also helpful for the subordinates to give the best of their abilities which ultimately helps in growth.Direction function helps in converting plans into performance. It is also called as on actuating function of management because it is through direction that the operation of an enterprise actually starts. Human Factor . doesn’t take place. 6. Efficient Utilization of Resources – Direction finance helps in clarifying the role of every subordinate towards his work.Directing function is related to subordinates and therefore it is related to human factor. 4. can be implemented only once the actual work starts. overlapping of performances. It Provides Stability – Stability and balance in concern becomes very important for long term sun survival in the market. if a concern shifts from handlooms to powerlooms. This helps in clarifications. efforts of every individual towards accomplishment of goals are required. inspire and instruct the subordinates to work. It is directing function which is of use to meet with changes in environment. the subordinates are benefited out of that in form of higher remuneration. 4. a subordinate receives instructions from his superior only. Therefore a manager can use of all the four traits in him so that performance standards can be maintained. strict supervision and efficient motivation. Therefore. 6. Being the central character of enterprise. Means of Motivation – Direction function helps in achievement of goals.Direction function is carried out by all managers and executives at all levels throughout the working of an enterprise. the role of subordinates become clear as manager makes use of his supervisory. For example. subordinates understand their jobs and do according to the instructions laid. It is through direction the efforts of every department can be related and integrated with others. Executive Function . the instructions and motivation skill to inspire the subordinates. It is the role of manager here to communicate the nature and contents of changes very clearly to the subordinates. Creative Activity . Adaptability with changing environment helps in sustaining planned growth and becoming a market leader. whether monetary or non – monetary. It Initiates Actions – Directions is the function which is the starting point of the work performance of subordinates. Delegate Function . duplication of efforts.

This can be done not only by listening to the grievances but also handling the grievances and satisfying the workers. As a Planner . the work includes checking progress of work against the time schedule. But actually he should be called as a manager or operative manager. supervisor can be called as the only manager who has an important role at execution level. skills and interests. This all helps in increasing productivity. an operative manager. he plays a role of an inspirer by telling them. He has to perform this role in order to build good relations and co-operation from workers. As a Counselor . The supervisor is a part of the management team and he holds the designation of first line managers.A Supervisor is called a linking pin between management and workers. Role of a Supervisor Supervisor has got an important role to play in factory management. 5. He can also frame rules and regulations which have to be followed by workers during their work. Therefore. Functions of a Supervisor Supervisor. As a Guide and Leader . recording the work performances at regular intervals and reporting the deviations if any from those. There are yet some more philosophers who call them as managers. 3. As an Inspector . building good human relations. He is the spokesperson of management as well as worker. materials and money which helps in reducing costs and increasing profits. He is a person who has to perform many functions which helps in achieving productivity. Therefore. As a Mediator . Supervision means overseeing the subordinates at work at the factory level. As a Manager . A supervisor plays multiplinary role at one time like – 1. Heart plays an important role in a human body as it serves the function pumping blood to all parts of body which makes the parts function. In the similar manner. At the same time he has to divide the work to various workers according to their abilities. There are certain philosophers who call supervisors as workers. 6. The manager makes use of the four elements of direction here so that work can be accomplished in a proper and right manner.in fact. creating a congenial and co-operative environment.utilization of resources of men. has got multifarious function to perform. “Directing is what has to be done and in what manner through dictating the procedures and policies for accomplishing performance standards”. 2. aptitudes. For this.An important role of supervisor is to enforce discipline in the factory. it is rightly said that direction is essence of management process. we can say that effective and efficient supervision helps in serving better work performance. .Supervisor’s basic role is to plan the daily work schedule of the workers by guiding them the nature of their work and also dividing the work amongst the workers according to their interests. He is . one can justify that direction. is the heart of management process. 4. Planning and Organizing . being the manager in a direct contact with the operatives.A factory supervisor leads the workers by guiding them the way of perform their daily tasks. Therefore.A supervisor plays the role of a counselor to the worker’s problem.A supervisor has to plan the daily work schedules in the factory. From the above discussion. Therefore. In fact. The objective behind performance of these functions is to bring stability and soundness in the organization which can be secured through increase in profits which is an end result of higher productivity. a supervisor should be concerned with performing the following functions – 1. His primary job is to manage the workers at operative level of management.It is righty said that a supervisor is a part of the management team of an enterprise. surely. direction helps the subordinates to perform in best of their abilities and that too in a healthy environment. According to Earnest Dale. machine.

In this way. 10. strictness in orders and instructions. performance. On the other hand. c. Checking of progress of work. He leads the workers and influences them to work their best. Controlling measures the deviation of actual performance from the standard performance. 8. b. Recording the actual performance against the time schedule. 6. Higher Profits. discovers the causes of such deviations and helps in taking corrective actions .The supervisor can handle the grievances of the workers effectively for this he has to do the following things :a.A supervisor proves to be a linking pin between management and workers. ventilation. quality and any such output which can be responsible for increasing productivity. 7. c.A supervisor is the leader of workers under him. He can shift the workers into fresh schedules whenever possible. 4. 5. This will involve a. Reporting . c. he can take the help and advice of management to solve it. Higher productivity. to workers. 9. Controlling . lighting. Finding out deviations if any and making solutions d. instructions issued and principles established. b. d. etc to the management. Leadership and Guidance .A supervisor can undertake many steps to maintain discipline in the concern by regulating checks and measures. Grievance Handling . Provision of working conditions . reporting it to top management. water facilities etc. High Stability Enforcing Discipline . High Morale of Workers.Controlling is an important function performed by supervisor. 3. Motivation . quality. output. implementing penalties and punishments for the indiscipline workers. complaints. Linking Pin . Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. By taking worker problems on humanitarian grounds.A supervisor has got an important role to report about the cost. Therefore he can innovate the techniques of production. d. keeping an account of general discipline of factory. This will result in a.The supervisor here has to be conscious about the environment of market and competition present. suggestions. etc can be reported continually to the management. He can be in direct touch with workers. By winning the confidence of the workers by solving their problems. he communicates workers problems and brings it to the notice of management. New Controlling Function of Management What is Controlling? Controlling consists of verifying whether everything occurs in confirmities with the plans adopted. He can also try this best to keep on changing and improving to the physical environment around the workers. Satisfying working condition. b.A supervisor plays an important role in the physical setting of the factory and in arranging the physical resources at right place. If he cannot tackle it independently. Factors like cost. Introducing new work methods . he has a close contact with the workers and therefore can interact the problems. e. He communicates the policies of management to workers also passes instructions to them on behalf of management. There are different monetary and non-monetary incentives which can inspire the workers to work better. He also guides the workers by fixing production targets and by providing them instruction and guidelines to achieve those targets. All these above steps help in improving the overall discipline of the factory. His main responsibility is here to provide healthy and hygienic condition to the workers. Improving human relations.2.A supervisor plays an important role by providing different incentives to workers to perform better. This involves providing proper sitting place. If not independently solved. and f.

profit. Controlling always look to future so that follow-up can be made whenever required. They can also be called as the criterions for judging the performance. 5. output. For example. Controlling is related with planning. 2. c. It facilitates co-ordination It helps in planning Features of Controlling Function Following are the characteristics of controlling function of management- 1. Performance of a manager cannot be measured in quantities. Finding out deviations becomes easy through measuring the actual performance. Controlling becomes easy through establishment of these standards because controlling is exercised on the basis of these standards. Controlling is a pervasive function.” Controlling has got two basic purposes 1. planning is useless.A function which comes once the performances are made in confirmities with plans. b. Establishment of standards. Performance levels are sometimes easy to measure and sometimes difficult. Measurable or tangible – Those standards which can be measured and expressed are called as measurable standards. time. Controlling is an end function. controlling is a meaningless exercise and without controlling. It can be measured only bya.” According to Donnell. 4. Non-measurable or intangible. Planning presupposes controlling and controlling succeeds planning. The development in the attitudes regarding the physical environment. and . These are called as intangible standards.Planning and Controlling are two inseperable functions of management. 3. Their morale to work. Standards generally are classified into twoa. “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs. Measurement of performance. Measurement of tangible standards is easy as it can be expressed in units. Quantitative measurement becomes difficult when performance of manager has to be measured.Standards are the plans or the targets which have to be achieved in the course of business function. cost. 2. b.because effective control is not possible without past being controlled.since controlling requires taking reviewal methods. Controlling is a dynamic process. Without planning. changes have to be made wherever possible. expenditure. etc. so should a business manager continually take reading to assure himself that his enterprise is on right course. Controlling is forward looking. their attitudes towards a concern. deviation of workers. money terms. etc. “Just as a navigator continually takes reading to ensure whether he is relative to a planned action.performance of a manager. Attitude of the workers. They can be in form of cost.which means it is performed by managers at all levels and in all type of concerns. Process of Controlling Controlling as a management function involves following steps: 1. 2.The second major step in controlling is to measure the performance.According to Brech.There are standards which cannot be measured monetarily.

a manager has to think about various cause which has led to deviation. quality of raw material. Once the deviation is identified. Implementation of plans is defective. The causes can bea. 3. Planning and controlling reinforce each other. " Relationship between the two can be summarized in the following points 1. It is also sometimes done through various reports like weekly. Therefore it is said. and b. Minor deviations have to be ignored. if the actual performance is not in conformity with plans. monthly. Taking remedial actions. . Each drives the other function of management. Major deviations like replacement of machinery. appointment of workers. he ends up controlling nothing. Without the basis of planning.d. quarterly. 4. Planning preceeds controlling and controlling succeeds planning. According to Billy Goetz. Comparison of actual and standard performance.extent of deviation and cause of deviation. It is here the controlling process comes to an end.Once the causes and extent of deviations are known. no purpose can be served by. The process of planning and controlling works on Systems Approach which is as follows : Planning → Results → Corrective Action Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise. should be looked upon consciously. The scope of activities if both are overlapping to each other. it is called as major deviation. the manager has to detect those errors and take remedial measures for it. b. etc. and Supervision and communication is ineffective. In absense of controlling. c. Co-ordination loosens. d. yearly reports. it can be called as a minor deviation. planning and controlling reinforce each other. planning becomes a meaningless exercise.Comparison of actual performance with the planned targets is very important. 5. rate of profits. if monthly production decreases continuously. 2. the manager can revise the targets. a manager can exercise controlling. The managers have to exercise control by exception. etc.” For example. Erroneous planning. Their communication with the superiors. After taking the corrective measures. Relationship between planning and controlling Planning and controlling are two separate fuctions of management. 4. The manager has to find out two things here. 3. There are two alternatives herea. Activities are put on rails by planning and they are kept at right place through controlling. Extent of deviation means that the manager has to find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance. Planning and controlling are inseperable functions of management. “ If a manager controls everything. controlling activities becomes baseless and without controlling. On the other hand. He has to find out those deviations which are critical and important for business. Taking corrective measures for deviations which have occurred. Follow up is an important step because it is only through taking corrective measures. if stationery charges increase by a minor 5 to 10%. yet they are closely related. Deviation can be defined as the gap between actual performance and the planned targets. Therefore.

It is also important to hear the employees with regards to their complaints and problems. It is the human factor which binds a group together and motivates it towards goals. Importance of Leadership Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. “Leadership is the ability to persuade others to seek defined objectives enthusiastically. Leadership is the ability of a manager to induce the subordinates to work with confidence and zeal. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals. The following points justify the importance of leadership in a concern. In the present day environment. Creating confidence. 2. Leadership Basics What is Leadership Leadership is a process by which an executive can direct. Providing guidance. 5. It all depends upon tackling with the situations. . Building morale. explaining them clearly their role and giving them guidelines to achieve the goals effectively. It involves two or more people interacting with each other. guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation.” Characteristics of Leadership 1. maturity and personality. 5.Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates. There is no best style of leadership. It denotes a few qualities to be present in a person which includes intelligence. Leadership is situation bound. 3. Leaders are required to develop future visions. 1. 4. and to motivate the organizational members to want to achieve the visions.A leader proves to be playing an incentive role in the concern’s working. it give us stimulus to make better plans.Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts. it is quite likely that planning fails due to some unforeseen events. 2. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates. the strong relationship between the two is very critical and important. It is a inter-personal process in which a manager is into influencing and guiding workers towards attainment of goals. 4. planning and controlling are inseperate functions of a business enterprise.In the present dynamic environment which affects the organization. 3. Therfore. According to Keith Davis. It is a group process. A leader is involved in shaping and moulding the behaviour of the group towards accomplishment of organizational goals.Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. There controlling comes to the rescue. It is also defined as the capacity to influence a group towards the realization of a goal. Once controlling is done effectively. Motivation.A leader has to not only supervise but also play a guiding role for the subordinates. Leadership is the potential to influence behaviour of others. Initiates action.

He has to represent the concern at seminars. He can be a guide by supervising and communicating the employees the plans and policies of top management and secure their co-operation to achieve the goals of a concern. 3.A leader through leadership traits helps in reconciling/ integrating the personal goals of the employees with the organizational goals. philosopher and guide. it is required for interpretation and execution of plans and programmes framed by the top management. He can be a philosopher by utilizing his intelligence and experience and thereby guiding the employees as and when time requires. maturity and experience which can provide him positive result. He is trying to co-ordinate the efforts of people towards a common purpose and thereby achieves objectives. He should have personal contacts with employees and should listen to their problems and solve them. general meetings.. He should treat employees on humanitarian terms. This way.A leader must possess the three dimensional traits in him.6. opinions and desires with the employees. In this regard. At times he can also play the role of a counselor by counseling and a problem-solving approach. In the top level. This he can do by his personality.Co-ordination can be achieved through reconciling personal interests with organizational goals. Integrates and reconciles the personal goals with organizational goals. As a friend. conferences. human relations should be kept into mind by a leader. 4. This synchronization can be achieved through proper and effective coordination which should be primary motive of a leader. 2.A leader is a manager and besides that he is a person who entertains and invites support and co. An efficient work environment helps in sound and stable growth. He can be a friend by sharing the feelings. Required at all levels. He solicits support. Representative of the organization. His role is to communicate the rationale of the enterprise to outside public. he can solicit full support of employees which results in willingness to work and thereby effectiveness in running of a concern. it is important for getting co-operation in formulation of plans and policies. etc. He can listen to the problems of the employees and try to solve them. a leader has to invite suggestions and if possible implement them into plans and programmes of enterprise. Leadership can be exercised through guidance and counseling of the subordinates at the time of execution of plans. Qualities of a Leader .operation of subordinates. 7.A leader. i. intelligence. This can be done only if he can influence and get willing cooperation and urge to accomplish the objectives. In the middle and lower level.e. He is also representative of the own department which he leads.Leadership is a function which is important at all levels of management. a manager is said to be the representative of the enterprise. Builds work environment. 5. Therefore. Role of a Leader Following are the main roles of a leader in an organization : 1.Management is getting things done from people. Co-ordination.

10.A leader must be able to communicate the policies and procedures clearly.. Vision and foresight.A leader has to be having a fair outlook which is free from bias and which does not reflects his willingness towards a particular individual. . A leader must have a sense of responsibility towards organizational goals because only then he can get maximum of capabilities exploited in a real sense. Knowledge of work. He should be trustworthy and should handle the situations with full will power. It is essential to understand that leadership is an essential part of effective management. A manager must have traits of a leader. The following are the requisites to be present in a good leader: 1. Empathy. 6. treating the human beings on humanitarian grounds is essential for building a congenial environment. For this. 2.A leader should be very precisely knowing the nature of work of his subordinates because it is then he can win the trust and confidence of his subordinates. He has to handle the personal problems of his subordinates with great care and attention. He has to visualize situations and thereby has to frame logical programmes.Tips to be Confident and Eliminate Your Apprehensions). 9. Intelligence. remarkable leadership behaviour stresses upon building an environment in which each and every employee develops and excels. This helps in improving human relations and personal contacts with the employees.A leader cannot maintain influence unless he exhibits that he is forward looking.e. i. Objective. Sense of responsibility. A leader should understand the problems and complaints of employees and should also have a complete view of the needs and aspirations of the employees. he has to motivate himself and arouse and urge to give best of his abilities. Therefore. Leadership and Management . Physique and health are very important for a good leader.A leader should be intelligent enough to examine problems and difficult situations. one can understand the scope of leadership and it’s importance for scope of business. Organizations require robust leadership and robust management for optimal organizational efficiency. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals. This influence may originate from formal sources. Physical appearance.Confidence in himself is important to earn the confidence of the subordinates. From the above qualities present in a leader. He should be analytical who weighs pros and cons and then summarizes the situation. such as that provided by acquisition of managerial position in an organization. he must possess leadership qualities. Communicative skills.A leader has got multidimensional traits in him which makes him appealing and effective in behavior. But a few of them helps in achieving effective results. 8. This is very important because fair judgement and objectivity comes only then.A leader must have a pleasing appearance. (You can read more about Self-Confidence at : Self Confidence . Leaders develop and begin strategies that build and sustain competitive advantage.It is an old adage “Stepping into the shoes of others”.Relationship & Differences Leadership and management are the terms that are often considered synonymous. 4. precisely and effectively. This can be helpful in persuasion and stimulation. He should develop his own opinion and should base his judgement on facts and logic. Self-confidence and will-power. Only then he can motivate the subordinates to the best. 3. A leader cannot have all traits at one time. 7. Humanist-This trait to be present in a leader is essential because he deals with human beings and is in personal contact with them. Therefore.Responsibility and accountability towards an individual’s work is very important to bring a sense of influence. a positive bent of mind and mature outlook is very important. 5. As a crucial component of management.

standard. For example: leader of a club. A person becomes a leader on basis of his personal qualities. manager can be a true manager only if he has got traits of leader in him. on the other hand. teamwork. 7. logical and more of mind.. Staffing.. Formal Rights Manager has got formal rights in an Rights are not available to a leader. then leaders are a must/essential. is an art. organizing. If management is reactive. building relationships. motivating and persuading the followers. manager has to provide leadership to his group. leadership deals with the people aspect in an organization. Leadership is a part of these functions. By virtue of his position.e.” A leader is one who influences the behavior and work of others in group efforts towards achievement of specified goals in a given situation. leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it. Leadership doesn’t require any managerial position to act as a leader. planned. it is true to say that. While management includes focus on planning. Therefore. etc. i. leadership is mainly a part of directing function of management. While management measures/evaluates people by their name.Differences between Leadership and Management Leadership differs from management in a sense that: 1. On the other hand. Manager at all levels are expected to be the leaders of work groups so that subordinates willingly carry instructions and accept their guidance. the leaders follow their own instinct. Organizing. 8. While managers follow the organization’s policies and procedure. leadership sees and evaluates individuals as having potential for things that can’t be measured. 2. While management deals with the technical dimension in an organization or the job content. 3. Directing. it deals with future and the performance of people if their potential is fully extracted. Management is based more on written communication. welfare association. i. A person can be a leader by virtue of qualities in him. Leaders and Managers can be compared on the following basis: Basis Manager Leader Origin A person becomes a manager by virtue of his position. 4. 5. A manager has to perform all five functions to achieve goals. Leadership. a manager gets his authority by virtue of his position in the organization. present performance. past records. . Planning. class. 6. if the managers are required. inspiring. but all leaders are not managers. Management is more of science as the managers are exact. and Controlling. While a leader gets his authority from his followers. Leader versus Manager “Leadership and managership are two synonymous terms” is an incorrect statement. “All managers are leaders.e. Leaders focus on listening. a manager can be a true manager only if he has got the traits of leader in him. staffing. directing and controlling. while leadership is based more on verbal communication. In an organization. While managers lay down the structure and delegates authority and responsibility. On the other hand. A person can be a leader by virtue of all qualities in him. social organization. Leadership as a general term is not related to managership. 9. leadership is proactive.

Stability It is more stable. Followers People follow manager by virtue of job description. Accountability Manager is accountable for self and subordinates behaviour and performance. Role continuation A manager can continue in office till he performs his duties satisfactorily in congruence with organizational goals.organization because of his status. A leader is required to create cordial relation between person working in and for organization. Functions A manager performs all five functions of management. Leaders have no well defined accountability. A leader’s concern is group goals and member’s satisfaction. Mutual Relationship All managers are leaders. Concern A manager’s concern is organizational goals. . A leader can maintain his position only through day to day wishes of followers. All leaders are not managers. People follow them on voluntary basis. Leadership is temporary. Followers The subordinates are the followers of managers. The group of employees whom the leaders leads are his followers. Leader influences people to work willingly for group objectives. Necessity A manager is very essential to a concern.

one should keep an open perspective on human nature. This motivational aspect drives them to fulfill goals. He must understand the basic needs of employees. the executive must ensure that the business has the same morals and ethics that he seeks in his employees. It pushes an individual to work hard at achieving his or her goals. .Sanctions Manager has command over allocation and distribution of sanctions. The executive must make their employees feel they are performing an important work that is necessary for the organization’s well-being and success. Once you are selfmotivated. it will help everyone to get better understanding of their role in the organization. you must be self-motivated”. The metal or emotional state of a person constitutes his or her moral fabric. Moreover. it should mention the particular act or the quality for which the individual is being rewarded. A meaningful and challenging job accomplished inculcates a sense of achievement among employees. Leadership and Motivation Motivation is a goal-oriented characteristic that helps a person achieve his objectives. certificate or letter can be a great motivator. peers and his superiors. Hence. A leader should set a good example to ensure his people to grow and achieve their goals effectively. An effective leader must have a thorough knowledge of motivational factors for others. The communication will be unambiguous and will certainly attract acknowledgement and appreciation from the leader. A leader has command over different sanctions and related task records. “To become an efficient leader. Empathizing with their personal problems makes them stronger-mentally and emotionally. He should empathize with them during difficult times. Appreciation and rewards are key motivators that influence a person to achieve a desired goal. only then you can motivate others to achieve their goals and to harmonize their personal goals with the common goals of the organization. Leadership is used as a means of motivating others. As a leader. You must know your identity. These sanctions are essentially of informal nature. Rewarding good/ exceptional behavior with a small token of appreciation. Given below are important guidelines that outline the basic view of motivation: • • • • • • • Harmonize and match the subordinate needs with the organizational needs. Being a role model is also a key motivator that influences people in reaching their goals. A leader’s actions and decisions affect the morale of his subordinates. The leader should always make sure his subordinates enjoy performing their duties as a team and make themselves a part of the organization’s plans. Team spirit is the soul of the organization. However. Developing moral and team spirit certainly has a key impact on the well-being of an organization. An executive must have the right leadership traits to influence motivation. Remember. Both an employee as well as manager must possess leadership and motivational traits. he should always be aware of his decisions and activities. but also teaches the intricacies of these key decision-making factors. your needs and you must have a strong urge to do anything to achieve your goals. Encouraging individuals to get involved in planning and important issues resolution procedure not only motivates them. As a leader. Knowing different needs of subordinates will certainly make the decisionmaking process easier. He should make sure that his subordinates are encouraged and trained in a manner that meets the needs of the business. there is no specific blueprint for motivation. If a certificate is awarded to a person. A leader should step into the shoes of the subordinates and view things from subordinate’s angle.

an urge to lead. An organizational leader should not only lead others individually but also manage the actions of the group. Individuals who are highly ambitious. The leader should have potential to control the group of individuals. Organizational leadership emphasizes on developing leadership skills and abilities that are relevant across the organizations. . He should motivate them well so that they are committed to the organization. give them a sense of direction to achieve organizational goals successfully and should act responsibly. Organizational leadership involves all the processes and possible results that lead to development and achievement of organizational goals. Tips for Effective Organizational Leadership 1. An ideal organizational leader should not dominate over others. It means the potential of the individuals to face the hard times in the industry and still grow during those times. have thorough knowledge of job. vision and policies. Leadership .He must be a role model for others and set an example for them. Organizational leaders clearly communicate organizational mission. only then he can lead others. He should guide the individuals under him. as we know. He should not hurt any employee. is a trait which is both inbuilt and can be acquired also.Organizational Leadership Organizations need strong leadership for optimum effectiveness. 3. He should be optimistic for sure. Individuals who learn the organizational leadership develop abilities and skills of teamwork. ensure efficient business operations. have high energy level. help employees grow professionally and contribute positively towards organizations mission. self-confidence. effective communication. He should be empathetic and should understand the need of the group members. 2. A leader must work as a team. This will result in more efficient and effective employees and ensure organizational success. effective listening and strategic communication. genuineness. He must be committed on personal and professional front. It clearly identifies and distinguishes the leaders from the managers. A leader must boost up the morale of the employees. He should be well acquainted with them. have concern for them and encourage them to take initiatives. build employees morale. and group problem solving techniques. Organizational leadership deals with both human psychology as well as expert tactics. and must be responsible . A true leader should not be too bossy and should not consider him as the supreme authority. are honest and flexible are more likely to succeed as organizational leaders. conflict resolution. He should always support his team and respect them. intelligence. It includes employees’ involvement. He should realize that he is part of the organization as a whole. A leader must lead himself.

They always earn respect of their followers. or any project. Correlating ethics with leadership. organizational quest. It is essential to note that leadership is all about values. Honest leaders can be always relied upon and depended upon. Ethics serve as guidelines for analyzing “what is good or bad” in a specific scenario.  Justice: He is fair and just. An ethical leader must treat all his followers equally.  Honesty: He is loyal and honest. An effective and ethical leader has the following traits / characteristics:  Dignity and respectfulness: He respects others. it implies treating the followers in a manner that authenticate their values and beliefs. Ethics deal with the purity of individuals and their intentions. Honesty is essential to be an ethical and effective leader. decision and values. while making efforts to achieve the goals suitable to both of them. Respecting the followers implies listening effectively to them. and it is impossible to be a leader if you lack the awareness and concern for your own personal values. He should respect their feelings. It is essential to note that “Ethics are an essential to leadership”. we find that ethics is all about the leader’s identity and the leader’s role. An ethical leader considers his own purpose as well as his followers’ purpose. being compassionate to them. He is considerate to the community interests. An ethical leader should place his follower’s interests ahead of his interests. He works harder for the community goals. He does not misrepresent any fact. clear. A leader drives and influences the subordinates / followers to achieve a common goal. Leaders can use the above mentioned traits as yardsticks for influencing their own behaviour. the ground for differential treatment should be fair. An honest leader presents the fact and circumstances truly and completely.Leadership Ethics . no matter how critical and harmful the fact may be. There should be no personal bias. He does not overlook the followers’ intentions. In short. These ethics define leadership.  Community building: He develops community. It is an ethical job of the leader to treat his subordinates with respect as each of them has unique personality. He should be humane. Leadership has a moral and ethical aspect. and (b) the personality and character of leaders. be it in case of team work. An ethical leader should not use his followers as a medium to achieve his personal goals.  Serving others: He serves others. The ethical environment in an organization is built and developed by a leader as they have an influential role in the organization and due to the fact that leaders have an influence in developing the organizational values. as well as being liberal in hearing opposing viewpoints.Traits of an Ethical Leader Ethics refer to the desirable and appropriate values and morals according to an individual or the society at large.Which Leadership Style to Follow ? . Leadership Strategy . and built on morality. He must act in a manner that is always fruitful for his followers. Wherever some followers are treated differently. Ethical theories on leadership talk about two main things: (a) The actions and behaviour of leaders.

Their style varies. A perfect/standard leadership style is one which assists a leader in getting the best out of the people who follow him.A Teacher gives the question to the students and observes how students solve them.Scenario 1 . Scenario 2 was “Supportive Leadership Style”.do not try and imitate other leaders. Scenario 2 . observes the students. Best players in a team do not guarantee success without a great coach. that the organizational strategies do not work. he needs to be using a directive leadership style or lead form the front. Here are some tips while selecting leadership strategy / style:  A leader must be aware of his / her personality traits and those of his team members / followers to understand which leadership style will be most effective. In case a leader has a self-reliant team. . solves it for them.  A leader may not adopt a consistent leadership all through his / her career.Without an effective leadership strategy.  A leader must keep enhancing his / her leadership skills. however. and Scenario 3 was “Interactive Leadership Style”. Remember. To understand leadership styles here are three scenarios . They know which leadership style is to be adopted in a particular situation. Structured Leadership. The leadership style varies with the kind of people the leader interacts and deals with. few leaders adopt the carrot approach and a few adopt the stick approach. work teams may not function effectively if leaders do not follow an appropriate leadership strategy. good leaders are those who are aware of their personality traits and also of their followers.  A common mistake especially a lot of new leaders make is to copy established / well know leaders. getting enrolled into leadership courses after detailed evaluation of the program and feedback of the participants will help implementing a leadership style more effectively. similarly. Scenario 1 was “Leading from the Front”.A Teacher gives a question to the students and moves around the class. Besides this the leadership styles / strategies could be based on personality traits like Directive Leadership. As discussed earlier.  A leader will never be afraid of trying new approach to solve a work problem or address a conflicting situation. Intuitive Leadership. Thus. or Process Driven leadership. all of the leaders do not get the things done in the same manner. While on the job experience matters a lot. A leadership style which may be suited to a well known leader may not be appropriate for your team. It is often said that good leaders are born and not made. and helps wherever required. Once this is done.A Teacher gives a question to the class full of students. Scenario 3 . He could instead delegate and provide inputs where necessary. there is a little challenge left for a leader to become a “good / great” leader. it is believed. Make no mistake here . Leadership Styles .Important Leadership Styles All leaders do not possess same attitude or same perspective. each situation is unique and so are the followers. however. It is quite a possibility that a leader adopts a style that is not by the book. Situational Leadership helps addressing varied needs / expectations of the followers as he the leader adopts a strategy based on a situation he / she is in.

This leadership style works only when the leader is the best in performing or when the job is monotonous. It leads to an optimistic work environment and also encourages creativity. It is the process of stimulating people to actions to accomplish the goals. we can say that motivation is a psychological phenomenon which means needs and wants of the individuals have to be tackled by framing an incentive plan. Also. though the ultimate decision-making power rests with the leader. This leadership style is more suitable when safe work conditions and quality are required. they make sure that the employees/team also strictly follows the rules and procedures. The process of motivation consists of three stages:1. But this leadership style discourages creativity and does not make employees self-contented. while the employees communicate to the leader their experience and the suggestions if any. A felt need or drive A stimulus in which needs have to be aroused When needs are satisfied. The team/employees are welcomed to share their views and provide suggestions which are best for organizational interests. a leader has complete command and hold over their employees/team. This leadership style works only when the employees are skilled. He just concentrates on the intellectual/rational aspect of his work and does not focus on the management aspect of his work. 2. Promotions take place on the basis of employees’ ability to adhere to organizational rules. motivated and more skilled employees. . The team cannot put forward their views even if they are best for the team’s or organizational interests. Democrative/Participative leadership style: The leaders invite and encourage the team members to play an important role in decision-making process. 3. etc One of the most important functions of management is to create willingness amongst the employees to perform in the best of their abilities. The leader guides the employees on what to perform and how to perform. The advantages of this leadership style are that it leads to satisfied. Bureaucratic leadership: Here the leaders strictly adhere to the organizational rules and policies.  The Laissez Faire Leadership Style: Here. the leader totally trusts their employees/team to perform the job themselves. This leadership style has the only drawback that it is time-consuming. Therefore the role of a leader is to arouse interest in performance of employees in their jobs. the satisfaction or accomplishment of goals. wants or drives within the individuals. loyal. The leader himself gets the things done. desires. Drawbacks of this leadership style are that it leads to greater employee absenteeism and turnover.   What is Motivation ? Motivation is the word derived from the word ’motive’ which means needs. They cannot criticize or question the leader’s way of getting things done.Some of the important leadership styles are as follows:  Autocratic leadership style: In this style of leadership. experienced and intellectual. The advantage of this style is that it leads to speedy decision-making and greater productivity under leader’s supervision. unskilled and routine in nature or where the project is short-term and risky. In the work goal context the psychological factors stimulating the people’s behaviour can be - • • • • desire for money success recognition job-satisfaction team work. Therefore. This leadership style gradually develops over time.

Maslow’s Need Hierarchy Model The needs have been classified into the following in order: 1. This will include job satisfaction.These are the needs of the highest order and these needs are found in those person whose previous four needs are satisfied. Esteem needs. a hope for a reward is a powerful incentive to motivate employees. Incentives provide a spur or zeal in the employees for better performance.Maslow’s Need Hierarchy Model Human behavior is goal-directed. Therefore. water.These needs relate to desire for self-respect. there are some other stimuli which can drive a person to better. These needs become important. Safety needs. 3. To increase productivity. Incentives are something which are given in addition to wagers. To psychologically satisfy a person which leads to job satisfaction. 2.Incentives to motivate employees Incentive is an act or promise for greater action. clothing. It is also called as a stimulus to greater action. 5. conversation. protection against danger.These needs emerge from society. meditation. air. etc.These are the basic needs of an individual which includes food. job security.These needs are also important for human beings. Self-actualization needs. To drive or arouse a stimulus work. The need of incentives can be many:1. incentives really can sometimes work to accomplish the goals of a concern. The needs of individual serves as a driving force in human behaviour. etc. belongingness. 2. It is through motivation that needs can be handled and tackled purposely. To inculcate zeal and enthusiasm towards work. Besides monetary incentive. 4. It is a natural thing that nobody acts without a purpose behind. a manager must understand the “hierarchy of needs”. Self-actualization Needs Esteem Needs Social Needs Security Needs Physiological Needs FIGURE . 5. Therefore. recognition and respect from others. 4. This will include need for social service. To enhance commitment in work performance. friendship. Maslow has proposed “The Need Hierarchy Model”. 6. Everybody wants job security. This can be understood by understanding the hierarchy of needs by manager. These needs relate to the survival and maintenance of human life. . Physiological needs.love. Motivation Incentives . Motivation cause goal-directed behaviour. affection. 3. shelter. safety of property. Man is a social animal. It means additional remuneration or benefit to an employee in recognition of achievement or better work. To shape the behavior or outlook of subordinate towards work. For example. and pride for accomplishment. Therefore. Social needs. etc. job promotion.

Therefore. . money not only satisfies psychological needs but also the security and social needs. The employees will respond more to praise and try to give the best of their abilities to a concern. b. recognition. Negative Incentives Negative incentives are those whose purpose is to correct the mistakes or defaults of employees.Those incentives which satisfy the subordinates by providing them rewards in terms of rupees. It is positive by nature. The above non. For example-promotion. Praise or recognition. Job enrichment. Non. management has to offer the following two categories of incentives to motivate employees:- 1. Positive Incentives Positive incentives are those incentives which provide a positive assurance for fulfilling the needs and wants. A combination of financial and non. various wage plans and bonus schemes are introduced to motivate and stimulate the people to work. This also helps in the greatest motivation of the efficient employees. Therefore. c. This way efficient worker can get challenging jobs in which they can prove their worth.financial incentives can be of the following types:a.monetary incentive in which the job of a worker can be enriched. e. If his job is secured.Besides the monetary incentives.The praise or recognition is another non. d. he makes use of non-financial incentives.Job security is an incentive which provides great motivation to employees. there are certain non-financial incentives which can satisfy the ego and self. This can be done by increasing his responsibilities. For example. Positive incentives generally have an optimistic attitude behind and they are generally given to satisfy the psychological requirements of employees. This also helps since he is very far off from mental tension and he can give his best to the enterprise. Money has been recognized as a chief source of satisfying the needs of people. they feel satisfied and contented and they become more committed to the organization. in many factories. Promotion opportunities. This can be done by publishing various articles written by employees to improve the work environment which can be published in various magazines of the company. Therefore. To get the maximum of their capabilities so that they are exploited and utilized maximally. fines. If the employees are provided opportunities for the advancement and growth. transfer. Whenever a manager has to satisfy the psychological needs of the subordinates. etc.monetary incentives”.actualization needs of employees.financial incentive which satisfies the ego needs of the employees. increasing the content and nature of the work. The incentives which cannot be measured in terms of money are under the category of “Non. This ultimately helps in growing a concern and adapting new methods of operations. It is negative by nature. Negative incentive is generally resorted to when positive incentive does not works and a psychological set back has to be given to employees. praise. Sometimes praise becomes more effective than any other incentive. Money is also helpful to satisfy the social needs by possessing various material items. penalties. The purpose is to rectify mistakes in order to get effective results.The organization should look forward to taking suggestions and inviting suggestion schemes from the subordinates.7. Suggestion scheme.financial tools can be framed effectively by giving due concentration to the role of employees. Security of service. This also is helpful to motivate the employees to feel important and they can also be in search for innovative methods which can be applied for better work methods. he will put maximum efforts to achieve the objectives of the enterprise.demotion. Monetary incentives. perks and allowances. Non-monetary incentives. 2.Promotion is an effective tool to increase the spirit to work in a concern.financial incentives help together in bringing motivation and zeal to work in a concern. giving him an important designation. This inculcates a spirit of participation in the employees.Job enrichment is another non.

Leads to stability of work force . In order to build a cordial. The employees will be adaptable to the changes and there will be no resistance to the change.Importance of Motivation Motivation is a very important for an organization because of the following benefits it provides:- Puts human resources into action Every concern requires physical. This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests. Effective co-operation which brings stability. g. financial and human resources to accomplish the goals. Increase in productivity. This can be done by building willingness in employees to work. This will result in profit maximization through increased productivity. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. Promotion opportunities for employees. Industrial dispute and unrest in employees will reduce. m. There is a co-operative work environment . o. This will result intoa. Leads to achievement of organizational goals The goals of an enterprise can be achieved only when the following factors take place :d. Improves level of efficiency of employees The level of a subordinate or a employee does not only depend upon his qualifications and abilities. This would help in: k. friendly atmosphere in a concern. b. and Improving overall efficiency. the above steps should be taken by a manager. the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation. l. This will help the enterprise in securing best possible utilization of resources. i. It is through motivation that the human resources can be utilized by making full use of it. c. Disincentives for inefficient employees. Monetary and non-monetary incentives. Reducing cost of operations. f. Builds friendly relationship Motivation is an important factor which brings employees satisfaction. The employees are goal-directed and they act in a purposive manner. There is best possible utilization of resources. n. For getting best of his work performance. This could initiate the following things: h. e. j.

Motivation and Morale . behaviours. Morale includes employees’ attitudes on and specific reaction to their job There are two states of morale: High morale .High morale implies determination at work. 3. there will be more adaptability and creativity. the more empowered the team is. 4. more profitable and successful is the business. As it is said. the organization he works for and the environment. Organizational Commitment and a sense of belongingness in the employees mind. working terms and relation with their employers. Similarly. The more is the team work and individual employee contribution. “Old is gold” which suffices with the role of motivation here. happiness and satisfaction. Motivation will help in self-development of individual. his superior. 4. Motivation will lead to an optimistic and challenging attitude at work place. These needs can be understood by the manager and he can frame motivation plans accordingly. Healthy and safe work environment.Stability of workforce is very important from the point of view of reputation and goodwill of a concern. According to Davis. From the above discussion. his work-group. exhibiting the employees’ feelings towards work. Motivation will help him achieve his personal goals. High morale results in: • • • • A keen teamwork on part of the employees. The skills and efficiency of employees will always be of advantage to employees as well as employees. the older the people. “Morale is a mental condition of groups and individuals which determines their attitude.Relationship and Differences Morale can be defined as the total satisfaction derived by an individual from his job. .an essential in achievement of management objectives. If an individual is motivated. 2. During period of amendments. We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as: 1.” In short. he will have job satisfaction.all taken together in their work scenarios. The process has to be continued throughout. This will lead to a good public image in the market which will attract competent and qualified people into a concern. An individual would always gain by working with a dynamic team. more the experience and their adjustment into a concern which can be of benefit to the enterprise. The more motivated the employees are. manifestation of views and opinions . 3. Needs. motivation is important to a business as: 1. morale is a fusion of employees’ attitudes. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. Immediate conflict identification and resolution. It generally relates to the feeling of individual’s comfort. we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. wants and desires are inter-related and they are the driving force to act. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. 2.

motivation takes into consideration the individual differences among the employees. while morale is a secondary phenomenon because high motivation essentially leads to higher productivity while high morale may not necessarily lead to higher productivity. The manager should adopt the approach .• • • Effective communication in the organization. encourage and control your own behaviour as a manager.  While motivation is an individual concept. High rate of employee absenteeism and turnover. Increase in productivity. it is essential to understand. Lack of motivation. Though motivation and morale are closely related concepts. Employees frustration.Motivation Tips for Employees Employees are the building blocks of an organization. and things tied to motivation are tied to the performance of the individual. and morale of the employees can be increased by taking those factors into consideration which influence group scenario or total work settings.  Motivation acquires primary concern in every organization. Greater motivation. Work upon utilizing your strengths and opportunities to neutralize and lower the negative impact of your weaknesses and organizational threats. The employees will collectively contribute to organizational growth when they are motivated.  Things tied to morale are usually things that are just part of the work environment. Thus. Dissatisfaction with the superiors and employers. encourage and control your staff’s behaviour.In order to motivate. Poor working conditions.  Higher motivation often leads to higher morale of employees. morale is a group concept. Low morale . morale is more of a group scenario. Decrease in productivity. Below mentioned are some tips for motivating the staff / employees in an organization:  Evaluate yourself. Motivation . they are different in following ways:  While motivation is an internal-psychological drive of an individual which urges him to behave in a specific manner.Low morale has following features: • • • • • • • Greater grievances and conflicts in organization. but high morale does not essentially result in greatly motivated employees as to have a positive attitude towards all factors of work situation may not essentially force the employees to work more efficiently. Organizational success depends on the collective efforts of the employees.

The more and the better he knows his staff. Make it a point to mention the staff’s outstanding achievements in official newsletters or organization’s journal. and “open” times when the staff freely communicate and interact. The manner in which the selection is conducted and the consequent recruitment process will either build or damage the impression about the job and organization. thereby.Induction proceeds with recruitment advertising.  Be familiar with your staff. the family relocation issues.. Thus. Set an example for your staff / subordinates. Motivate your staff to have “closed” times. Identify the stress symptoms in employees and try to deal with them.Give your staff some financial and other benefits. few hours when there are no interruptions for the staff in performing their job role so that they can concentrate on the job. Link the staff goals with the organizational goals. Give them bonuses. but on facts and personal observations. Let them enjoy vacations and holidays. i. some words of praise. their superiors and towards the future can be effectively dealt through the staff counseling. body language). the young blood employees specifically realize that continuing learning is the best way to remain employable.The employees’ / staff feelings towards the work. A cordial superior-subordinate relationship is a key factor in jobsatisfaction.The staff members are keen to know how they are performing. The staff more closely observes your non-verbal communication (gestures. Have stress management techniques in your organization. This will help in boosting employee’s morale and will thus motivate the staff. Being unpunctual.Create an environment in which you and your staff can work within optimum pressure levels. This will be more acceptable by the staff. Being observed by the new recruit and your entire team / staff to be involved completely.The manager should be well acquainted with his staff. wasting the          . Do not base the feedback on assumptions. and ensure a follow-up with group meetings on the manner stress can be lowered at work. Plan one to one sessions of interaction with your staff where they can ask their queries and also can get your attention and. their peer.A pat on the back. Use counselling technique. Do not indulge in favouritism or comparing the employee with some one else. Ensure an optimistic attitude towards stress in the workplace. and giving a note of credit to the employee / staff member at personal level with some form of broad publicity can motivate the staff a lot. incentive and support which enable the employee to achieve his identity. but also acknowledge the employee who meets and over exceeds the targets. Give your staff autonomy in work. and give them health and family insurance benefits. Give the employees learning opportunities. The way you interact with your clients / customers and how do you react later after the interaction is over have an impact upon the staff. Provide the employees certain benefits. Try giving a regular and constructive feedback to your staff. Participate in new employees induction programme. Sit with your staff on daily or weekly basis and make sure that feedback happens. they will not feel neglected. Provide feedback to the staff constantly. the simpler it is to get them involved in the job as well as in achieving the team and organizational goals. the potential entrants start creating their own impressions and desires about the job and the organization. pay them for overtime. Ensure effective time management. cost of removal. At this point of time. Acknowledge your staff on their achievements. the manager must take personal interest in the selected joinee’s joining date.I’m OK”. Make sure they get breaks from work.Employees should consistently learn new skills on the job. Have training sessions on stress management.“You’re OK . The staff would learn from what you do and not from what you say / claim.Having control over time ensures that things are done in right manner. Not only acknowledge the employee with highest contribution.Be a role model for your staff. This will also invite staff’s commitment and loyalty. the manager must have a say in framing the advertisement and also in the selection and recruitment process. Opportunities should be given to the employees to develop their skills and competencies and to make best use of their skills. After the decision about the candidate is made. Counselling provides an environment. etc. will ensure a persuasive entry in the organization.e. This all will work in long run to motivate the staff. It has been well said by someone that with people hopping jobs more often than required and organizations no longer giving job security to employees.

It encourages new ideas and feedback from the staff. Smiling is an essential component of the body language of confidence. acceptance and boldness.Job enrichment implies giving room for a better quality of working life. Give them time and resources for developing creativity. Develop and encourage creativity. naturally and often. Stimulate flexible attitudes in the employees who are accountable to you by asking what changes they would like to bring about if given a chance.whose responsibility is it to ensure that an employee loves his job? While an employee would say . Reciprocal / Mutual listening develops cordial and healthy personal relationships on which the employee / staff development rests.” If this is what an employee of your company feels. but their time too. Effective listening by the manager boosts up the employees’ morale and thus motivates them. Adopt job enrichment. Doing the mundane. If the managers do not listen attentively to the subordinates. It is interesting to know here.what excites them is .the opportunity to do what is ’important’. use relaxed and steady tone of voice. Let the employees work at home occasionally if need arises.In order to motivate your staff. They may turn out to be very productive. indulge in effective communication such as avoid using anger expressions. etc. Don’t be rigid. Almost all the employees would like to feel part of the big picture and would want to contribute to the organizational goals in some way or the other.  Smile often. Give employees more freedom in job.Introduce flexibility in work. Ensure effective communication. The staff does not feel hesitant and threatened to discuss their views this way. Respect your team. as per an executive editor of the Harvard Business Review. utilize questioning techniques to know staff’s mindset and analysis rather than ordering the staff what to do. to demonstrate that you feel good and positive about the staff who works for you. mismanaging organization’s physical equipments. Also. asking the staff to do your personal work. Do not be rigid in accepting ideas from your staff. the human resource experts have a different point of view which sounds fair. It means facilitating people to achieve self-development. that employees do not rank ’salary’ as the top factor in determining whether they like their jobs or not. Listen effectively. listen effectively and be positive and helpful in your responses. Right Management Consultants conducted a survey sometime back and found that 83% of about 500 workers surveyed were motivated by “challenges at work”. the morale of the subordinates lowers down and they do not feel like sharing their ideas or giving their views.“I love what I do. and to be themselves. show them loyalty and celebrate their achievements. fame and success through a more challenging and interesting job which provides more promotional and advancement opportunities. Make the staff feel that they are respected not just as employees / workers but as individuals too.Respect not only the employees’ rights to share and express their views. It’s both the employer and the employee who should work together to make work fun for each other.” First things first . Let them hold constant brainstorming sessions. they aren’t so much effective in motivating people.the employer.work that challenges them to use their talent. A smiling superior creates an optimistic and motivating work environment. . Share your views with the staff.Smiling can have a tremendous effect on boosting the morale of the staff. What is important to them then . read on to know how this statement can be changed to something more positive . Try setting an example for your staff to follow. all have a negative impact on the staff. involve them in decision-making process.organization’s capital. while salary and promotions could do a great job of demotivating people if handled ineffectively.Listening attentively is a form of recognizing and appreciating the person who is talking. Smile consistently. base your judgements on facts and not on assumptions. routine work will never excite them . Invite ideas and suggestions from the staff.The staff should be encouraged to develop the creativity skills so as to solve organizational problems. This will ensure that the employees respect you and your time. Allow for flexible working hours if possible. Be flexible.       Workplace Motivation – Carrot or Stick approach doesn’t work anymore “I am in this job because I have no other option.

remember training always increase your marketability and enhance your career. Self Motivation at Work Self-motivation is a power that drives us to keep moving ahead.  Be transparent. go ahead and compliment that employee for a job well done .  Compliment employees. friends. Talk with optimistic and motivated individuals. We often feel the need for self-motivation.Remember you work for a company where a one-on-one attention might not be possible. Stay in touch with the employees. or any one with whom you can share your ideas. . It is basically related to our inventiveness in setting dynamic goals for ourselves. Do not wait for an invitation to participate in a discussion. He / she should work towards his ’Personal Development Plan’ [PDP] as discussed and agreed by his manager.Every employee is responsible for his / her own career. then you have full right to express your opinion and be a part of the process. Also. Expressing yourself is a good way of motivating yourself.  Participate and Network. There is nothing more satisfying to an employee than a pat on his back.An organization should adopt a fair reward structure which provides incentive to the most deserving employee. Self-motivation is a primary means of realizing our goals and progressing. and our faith that we possess the required skills and competencies for achieving those challenging goals. we always make efforts to find how to overcome them.. How this will motivate you . Find out what are the training company offers and which is best suited to his development needs. Following are the ways/techniques for self-motivation:  Communicate and talk to get motivated: Communicating with someone can boost up your energy and make you go on track. If you are a part of a forum. It encourages continuous learning and success. whatever be the scenario. Have an incentive structure in place doesn’t solve the problem.So then what needs to be done for effective motivation at workplace?  Link Rewards directly to Performance.Employees . make sure employees do not give in to the rumours.. what makes it workable is the employees trust in the system and believe that they will be rewarded if they perform well.  Work on your PDP. wife.Even though an employee’s name has not appeared in the list of people getting incentives. one should understand the good in bad.no matter how small. They can be your colleagues.While there may be some strategic decisions which you might want to share with the employees at a later stage.  Remain optimistic: When facing hurdles.

he should correlate it with a bigger ultimate goal. support and motivate others: Discuss and share your views and ideas with your friends and peers and assist them in getting motivated. Team Motivation .  Break your bigger goals into smaller goals: Set a short time deadline for each smaller goal so as to achieve bigger goal on time. the team should be given challenges (which must be difficult but achievable) consistently. he can proceed with his job and can grow.  Encourage learning: Always encourage learning. When we observe others performing good.  Self-acknowledgement: One should know when his motivation level is saturated and he feels like on top of the world. Some tips for effective team motivation are as follows:  The team’s objective should well align and synchronize with the team members needs and requirements. Discover your interest area: If you lack interest in current task. If an individual has no interest in the task. Have proper sleep. you should not proceed and continue with it. Have tea/coffee during breaks to refresh you.  Monitor and record your success: Maintain a success bar for the assignments you are currently working on. but if it is essential to perform. Team motivation is determined by how well the team members’ needs and requirements are met by the team. Do regular exercises. Invite feedback from others on your achievements.  Uplift energy level: Energy is very essential for self-motivation. you will obviously want to foster it.Tips for Motivating Team A group heading towards a common objective will perform best when it is motivated as a team. Learning makes an individual more confident in commencing new assignments.  For maintaining motivation. .  Assist. There will be a blueprint that once an individual acknowledge. When you observe any progress.  Give in written the team’s mission and ensure that all understand it (as mission is a foundation based on which the team performs). Read and grasp the logic and jist of the reading. it will keep us motivated too.

Giving a team responsibility accompanied by authority can also be a good motivator for the team to perform.

The team should be provided with growth opportunities. The team’s motivation level is high when the team members feel that they are being promoted, their skills and competencies are being enhanced, and they are learning new things consistently.

Effective and true leaders can develop environment for the team to motivate itself. They provide spur for self- actualization behaviours of team members.

Devote quality/productive time to your team. Have an optimistic and good relation with your team members. This will make you more acquainted with them and you can get knowledge of how well they are performing their job. Welcome their views and ideas as they may be fruitful and it will also boost their morale.

Motivation is all about empowerment. The skills and competencies of the team members should be fully utilized. Empowering the team members makes them accountable for their own actions.

Provide feedback to the team consistently. Become their mentor. Give the team recognition for good and outstanding performance. Give the team a constructive and not negative feedback.

Discover and offset the factors which discourage team spirit such as too many conflicts, lethargy, team members’ escape from responsibilities, lack of job satisfaction, etc.

Motivational Challenges
Motivation seems to be a simple function of management in books, but in practice it is more challenging. The reasons for motivation being challenging job are as follows:

One of the main reasons of motivation being a challenging job is due to the changing workforce. The employees become a part of their organization with various needs and expectations. Different employees have different beliefs, attitudes, values, backgrounds and thinking. But all the organizations are not aware of the diversity in their workforce and thus are not aware and clear about different ways of motivating their diverse workforce. Employees motives cannot be seen, they can only be presumed. Suppose, there are two employees in a team showing varying performance despite being of same age group, having same educational qualifications and same work experience. The reason being what motivates one employee may not seem motivating to other. Motivation of employees becomes challenging especially when the organizations have considerably changed the job role of the employees, or have lessened the hierarchy levels of hierarchy, or have chucked out a significant number of employees in the name of down-sizing or right-sizing. Certain firms have chosen to hire and fire and paying for performance strategies nearly giving up motivational efforts. These strategies are unsuccessful in making an individual overreach himself. The vigorous nature of needs also pose challenge to a manager in motivating his subordinates. This is because an employee at a certain point of time has diverse needs and expectations. Also,

these needs and expectations keep on changing and might also clash with each other. For instance-the employees who spend extra time at work for meeting their needs for accomplishment might discover that the extra time spent by them clash with their social neds and with the need for affiliation.

Essentials / Features of a Good Motivation System
Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. He stays loyal and committed to the organization. A sound motivation system in an organization should have the following features:

Superior performance should be reasonably rewarded and should be duely acknowledged.

If the performance is not consistently up to the mark, then the system must make provisions for penalties.

The employees must be dealt in a fair and just manner. The grievances and obstacles faced by them must be dealt instantly and fairly.

Carrot and stick approach should be implemented to motivate both efficient and inefficient employees. The employees should treat negative consequences (such as fear of punishment) as stick, an outside push and move away from it. They should take positive consequences (such as reward) as carrot, an inner pull and move towards it.

Performance appraisal system should be very effective.

Ensure flexibility in working arrangements.

A sound motivation system must be correlated to organizational goals. Thus, the individual/employee goals must be harmonized with the organizational goals.

The motivational system must be modified to the situation and to the organization.

A sound motivation system requires modifying the nature of individual’s jobs. The jobs should be redesigned or restructured according to the requirement of situation. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, etc. could be used.

The management approach should be participative. All the subordinates and employees should be

involved in decision- making process.

The motivation system should involve monetary as well as non- monetary rewards. The monetary rewards should be correlated to performance. Performance should be based on the employees’ action towards the goals, and not on the fame of employees.

“Motivate yourself to motivate your employees” should be the managerial approach.

The managers must understand and identify the motivators for each employee.

Sound motivation system should encourage supportive supervision whereby the supervisors share their views and experiences with their subordinates, listen to the subordinates views, and assist the subordinates in performing the designated job.

Maslow’s Hierarchy of Needs Theory
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. This theory is based on the assumption that there is a hierarchy of five needs within each individual. The urgency of these needs varies. These five needs are as follows-

1. 2. 3. 4. 5.

Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other words, physiological needs are the needs for basic amenities of life. Safety needs- Safety needs include physical, environmental and emotional safety and protection. For instance- Job security, financial security, protection from animals, family security, health security, etc. Social needs- Social needs include the need for love, affection, care, belongingness, and friendship. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration). Self-actualization need- This include the urge to become what you are capable of becoming / what you have the potential to become. It includes the need for growth and self-contentment. It also includes desire for gaining more knowledge, social- service, creativity and being aesthetic. The self- actualization needs are never fully satiable. As an individual grows psychologically, opportunities keep cropping up to continue growing.

According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five needs into two categories - Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. These lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order needs. These higher-order needs are generally satisfied internally, i.e., within an individual. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met.

Limitations of Maslow’s Theory • It is essential to note that not all employees are governed by same set of needs. the managers should give employees appropriate salaries to purchase the basic necessities of life. Moreover.  As far as social needs are concerned. The managers must identify the need level at which the employee is existing and then those needs can be utilized as push for motivation. and retirement benefits so as to retain them. the managers can give the employees challenging jobs in which the employees’ skills and competencies are fully utilized. the managers should provide the employees job security. Breaks and eating opportunities should be given to employees.  As far as the safety needs are concerned. It is always the most powerful unsatisfied need that motivates an individual. . the managers can appreciate and reward employees on accomplishing and exceeding their targets. the management should encourage teamwork and organize social events. The management can give the deserved employee higher job rank / position in the organization. Different individuals may be driven by different needs at same point of time. safe and hygienic work environment.  As far as self-actualization needs are concerned. growth opportunities can be given to them so that they can reach the peak.  As far as esteem needs are concerned.FIGURE: Maslow’s Need Hierarchy Model Implications of Maslow’s Hierarchy of Needs Theory for Managers  As far as the physiological needs are concerned.

Hygiene factors include: • Pay.According to Herzberg. etc. then they lead to dissatisfaction. vacation. etc.The employees should be offered health care plans (mediclaim). FIGURE: Herzberg’s view of satisfaction and dissatisfaction Herzberg classified these job factors into two categories- a. According to Herzberg. The motivational factors yield positive satisfaction. They should be fair and clear. Frederick Herzberg. • Status. the opposite of “Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”. These do not lead to positive satisfaction for long-term. • Fringe benefits. • Interpersonal relations-The relationship of the employees with his peers. breaks. • Physical Working conditions. These factors motivate the employees for a superior performance. But if these factors are absent / if these factors are non-existant at workplace. Hygiene factors. • Company Policies and administrative policies. The work equipments should be updated and well-maintained. employee help programmes. the hygiene factors cannot be regarded as motivators.• • The theory is not empirically supported. It must be equal and competitive to those in the same industry in the same domain. benefits for the family members. he will still strive for recognition and achievement. These factors describe the job environment / scenario. Herzberg’s Two-Factor Theory of Motivation In 1959. a behavioural scientist proposed a two-factor theory or the motivatorhygiene theory. pacify the employees and do not make them dissatisfied. These factors are inherent to work.The employees’ status within the organization should be familiar and retained. It should include flexible working hours. These factors are extrinsic to work.The pay or salary structure should be appropriate and reasonable. b. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. These factors . there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. The theory is not applicable in case of starving artist as even if the artist’s basic needs are not satisfied. Motivational factors. According to Herzberg. hygiene factors are those factors which when adequate / reasonable in a job. • Job Security. dress code.The company policies should not be too rigid.The working conditions should be safe.Hygiene factors are those job factors which are essential for existence of motivation at workplace.The organization must provide job security to the employees. In other words. The hygiene factors symbolized the physiological needs which the individuals wanted and expected to be fulfilled. clean and hygienic. superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present.

the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. Analysis has to be made by the raters. No comprehensive measure of satisfaction was used. The raters may spoil the findings by analyzing same response in different manner. Implications of Two-Factor Theory  The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. • Growth and promotional opportunities. Theory X and Theory Y In 1960. An employee may find his job acceptable despite the fact that he may hate/object part of his job. or in other words. According to McGregor. The motivators symbolized the psychological needs that were perceived as an additional benefit. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity. 6. Also. This theory emphasize upon job-enrichment so as to motivate the employees. • Responsibility. Assumptions of Theory X • An average employee intrinsically does not like work and tries to escape it whenever possible.There must be growth and advancement opportunities in an organization to motivate the employees to perform well. There must be a fruit of some sort in the job. These are factors involved in performing the job. Focusing on the motivational factors can improve work-quality. This depends on the job. The two factor theory is not free from bias as it is based on the natural reaction of employees when they are enquired the sources of satisfaction and dissatisfaction at work.are called satisfiers.The employees must have a sense of achievement. Employees find these factors intrinsically rewarding. called as Theory X and the other is positive. 5. Limitations of Two-Factor Theory The two factor theory is not free from limitations: 1. The theory ignores blue-collar workers. two different views of individuals (employees): one of which is negative. Motivational factors include: • Recognition. 3. They should minimize control but retain accountability.The employees must hold themselves responsible for the work. the perception of managers on the nature of individuals is based on various assumptions. Herzberg’s Two-Factor theory is acceptable broadly. Also. The managers should give them ownership of the work. Douglas McGregor formulated Theory X and Theory Y suggesting two aspects of human behaviour at work. 4. The theory’s reliability is uncertain.The work itself should be meaningful. The job must utilize the employee’s skills and competencies to the maximum. 2. . Herzberg assumed a correlation between satisfaction and productivity.The employees should be praised and recognized for their accomplishments by the managers. • Sense of achievement. Despite these limitations. They will blame dissatisfaction on the external factors such as salary structure. The two-factor theory overlooks situational variables. company policies and peer relationship. so called as Theory Y. • Meaningfulness of the work. interesting and challenging for the employee to perform and to get motivated. the employees will give credit to themselves for the satisfaction factor at work.

it does not encourage innovation. Theory Y searches and discovers the ways in which an employee can make significant contributions in an organization. In fact. Employees should be given opportunities to contribute to organizational well-being. resourcefulness and innovative potentiality of the employees can be utilized to solve organizational problems. Employees generally dislike responsibilities. Theory X encourages use of tight control and supervision.  Many organizations are using Theory Y techniques. responsible and stimulating jobs. Their logical capabilities should be fully utilized. he encouraged cordial team relations. or warned with punishment so as to achieve organizational goals. teamwork and participative decision making in an organization. Thus. An average employee can learn to admit and recognize the responsibility. while Theory X is based on the assumption that the social needs. If the job is rewarding and satisfying. Thus. The employees have skills and capabilities. . he can even learn to obtain responsibility. If correlate it with Maslow’s theory. but they can use self-direction and self-control if they are dedicated and sincere to achieve the organizational objectives. Assumptions of Theory Y • • • • • Employees can perceive their job as relaxing and normal. and participation of all in decision-making process Implications of Theory X and Theory Y  Quite a few organizations use Theory X today. while Theory Y presents an optimistic view of the employees’ nature and behaviour at work. he must be persuaded. It implies that employees are reluctant to organizational changes. An average employee needs formal direction. Thus. we can say that Theory X presents a pessimistic view of employees’ nature and behaviour at work. we can say that Theory X is based on the assumption that the employees emphasize on the physiological needs and the safety needs. A close supervision is required on part of managers. Theory Y encourages decentralization of authority. Theory Y implies that the managers should create and encourage a work environment which provides opportunities to employees to take initiative and self-direction. Employees may not require only threat. esteem needs and the self-actualization needs dominate the employees. The managers adopt a more dictatorial style. Many employees rank job security on top. compelled. In other words. the creativity. external control and coercion to work. McGregor views Theory Y to be more valid and reasonable than Theory X. then it will result in employees’ loyalty and commitment to organization. It harmonizes and matches employees’ needs and aspirations with organizational needs and aspirations. and they have little or no aspiration/ ambition. Employees resist change. They exercise their physical and mental efforts in an inherent manner in their jobs.• • • • • Since the employee does not want to work.

 ERG Theory also shows that if the fulfillment of a higher-level need is subdued.  According to Maslow. Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory  ERG Theory states that at a given point of time. an individual remains at a particular need level until that need is satisfied. His rework is called as ERG theory of motivation. Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of need. Growth needs. For instance. more than one need may be operational. He recategorized Maslow’s hierarchy of needs into three simpler and broader classes of needs: • • Existence needs. Maslow’s social needs and external component of esteem needs fall under this class of need.level need. peers or superiors). In short. While according to ERG theory.regression aspect of ERG theory. if a higher. Clayton Alderfer redefined it in his own terms. then an individual might be motivated . Relatedness needs. an individual may revert to increase the satisfaction of a lower.ERG Theory of Motivation To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research.These include the aspiration individual’s have for maintaining significant interpersonal relationships (be it with family. This is called frustration. there is an increase in desire for satisfying a lower-level need. it includes an individual’s physiological and physical safety needs. getting public fame and recognition.These include need for self-development and personal growth and advancement.These include need for basic material necessities. The significance of the three classes of needs may vary for each individual.when growth need aggravates.level need aggravates.

They have a strong urge for feedback on their achievement. he might revert to the need for money to fulfill those socializing needs. Need for affiliation is a need for open and sociable interpersonal relationships. It can be viewed as the need to have a positive effect on the organization and to support the organization in achieving it’s goals. Also. Such individuals look for innovative ways of performing job.  While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific and orderly hierarchy and unless a lower-level need is satisfied. This theory states that human behaviour is affected by three needs . then he might be motivated by the existence needs. an individual can work on growth needs even if his existence or relatedness needs remain unsatisfied. The individuals with high achievement needs are highly motivated by competing and challenging work. Such individuals try to get satisfaction in performing things better.Need for Power. They look for promotional opportunities in job. McClelland’s Theory of Needs David McClelland and his associates proposed McClelland’s theory of Needs / Achievement Motivation Theory. The individuals who are motivated by power have a strong urge to be influential and controlling. In other words. they want to lead. McClelland called such individuals as gamblers as they set challenging targets for themselves and they take deliberate risk to achieve those set targets. ERG Theory of motivation is very flexible as he perceived the needs as a range/variety rather than perceiving them as a hierarchy. he gives explanation to the issue of “starving artist” who can struggle for growth even if he is hungry. to struggle to achieve success. The individuals who are motivated by affiliation have an urge for a friendly and supportive environment. Individuals with greater power and authority will perform better than those possessing less power. he might revert to the relatedness need such as socializing needs and to meet those socializing needs. Need for power should not always be taken negatively. frustration/aggravation can result in regression to a lower-level need. an individual cannot proceed to the higher-level need. Individuals who are better and above average performers are highly motivated. and value it more than a financial reward. the frustration. this will not effectively motivate the employee. In other words. According to Alderfer. Such individuals are effective performers in a team. Need for achievement is the urge to excel.to accomplish the relatedness need and if there are issues in accomplishing relatedness needs. They want that their views and ideas should dominate and thus. They are more determined and loyal to the organization they work for. Thus. According to the ERG theory. Generally. Such individuals are motivated by the need for reputation and self-esteem. These people want to be liked by others. They perceive achievement of goals as a reward. it is the desire to have control over others and to be influential. managers with high need for power turn out to be more efficient and successful managers. The sooner the manager realizes and discovers this. to accomplish in relation to a set of standards. High achievement is directly related to high performance. Thus. They assume responsibility for solving the problems at work. For instance. if the manager concentrates solely on one need at a time. it is a desire for relationship based on co-operation and mutual understanding. Need for power is the desire to influence other individual’s behaviour as per your wish.if an employee is not provided with growth and advancement opportunities in an organization. if the environment or circumstances do not permit. the more immediate steps they will take to fulfill those needs which are frustrated until such time that the employee can again pursue growth.regression aspect of ERG Theory has an added effect on workplace motivation. Achievement and Affiliation. The manager’s ability to make decisions is hampered if they have a high affiliation need as they prefer to be . Implications of the ERG Theory Managers must understand that an employee has various needs that must be satisfied at the same time.

 Better and appropriate feedback of results directs the employee behaviour and contributes to higher performance than absence of feedback. less will be the efforts put in by the individual or he might even quit while meeting challenges. The goal commitment is dependent on the following factors: . This gives an individual a feeling of pride and triumph when he attains them. goals indicate and give direction to an employee about what needs to be done and how much efforts are required to be put in.  Goals should be realistic and challenging.  Goal setting theory has certain eventualities such as: a. Unambiguous. They generally cannot be good leaders. It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance. measurable and clear goals accompanied by a deadline for completion avoids misunderstanding. Edwin Locke put forward the Goal-setting theory of motivation. and sets him up for attainment of next goal. This theory states that goal setting is essentially linked to task performance. Such people have a need to be on the good books of all. Higher the level of self-efficiency. making clarifications and regulating goal difficulties. general and vague goals. lower the level of self-efficiency. In simple words. greater will be the efforts put in by the individual when they face challenging tasks.  Participation of setting goal. Clear.accepted and liked by others. however. b.  Employees’ participation in goal is not always desirable. While. The important features of goal-setting theory are as follows:  The willingness to work towards attainment of goal is main source of job motivation.Self-efficiency is the individual’s self-confidence and faith that he has potential of performing the task. particular and difficult goals are greater motivating factors than easy. It helps employees to work with more involvement and leads to greater job satisfaction. The more challenging the goal. Feedback is a means of gaining reputation. the greater is the reward generally and the more is the passion for achieving it. Goal commitment. Self-efficiency. Goal Setting Theory of Motivation In 1960’s. makes goal more acceptable and leads to more involvement. Individuals having high affiliation needs prefer working in an environment providing greater personal interaction.  Specific and clear goals lead to greater output and better performance.Goal setting theory assumes that the individual is committed to the goal and will not leave the goal. and this weakens their objectivity.

Positive reinforcement stimulates occurrence of a behaviour. b. For instance . This will increase probability of outstanding behaviour occurring again.e. It is based on “law of effect”.This implies rewarding an employee by removing negative / undesirable consequences. .  Negative Reinforcement. If and only if the employees’ behaviour improves. For example .e. he may feel that his behaviour is generating no fruitful consequence. Goals should be set-self by individual rather than designated. but individual’s behaviour with negative consequences tends not to be repeated. This theory is a strong tool for analyzing controlling mechanism for individual’s behaviour. Punishment can be equalized by positive reinforcement from alternative source. but not necessarily. individual’s behaviour with positive consequences tends to be repeated. the external environment of the organization must be designed effectively and positively so as to motivate the employee.a.Suspending an employee for breaking the organizational rules.  Extinction.It implies absence of reinforcements. known and broadcasted. i. For instance . Implications of Reinforcement Theory Reinforcement theory explains in detail how an individual learns behaviour. In other words. the greater reinforcement value it has. i. Goals are made open. the inner feelings and drives of individuals are ignored by Skinner. However. In other words. Individual’s set goals should be consistent with the organizational goals and vision. They must tell the employees how they can achieve positive reinforcement. Managers who are making attempt to motivate the employees must ensure that they do not reward all employees simultaneously. It states that individual’s behaviour is a function of its consequences. It must be noted that more spontaneous is the giving of reward. punishment means applying undesirable consequence for showing undesirable behaviour. Thus. Extinction may unintentionally lower desirable behaviour. Reinforcement Theory of Motivation Reinforcement theory of motivation was proposed by BF Skinner and his associates.This implies giving a positive response when an individual shows positive and required behaviour. it does not focus on the causes of individual’s behaviour.Immediately praising an employee for coming early for job. Reward is a positive reinforce. according to Skinner.. This theory focuses totally on what happens to an individual when he takes some action. extinction implies lowering the probability of undesired behaviour by removing reward for that kind of behaviour.It implies removing positive consequences so as to lower the probability of repeating undesirable behaviour in future.if an employee no longer receives praise and admiration for his good work. reward can said to be a positive reinforcer. They must tell the employees what they are not doing correct.  Punishment. Reinforcement theory of motivation overlooks the internal state of individual. c. The managers use the following methods for controlling the behaviour of the employees:  Positive Reinforcement. Both positive and negative reinforcement can be used for increasing desirable / required behaviour.

Referents: The four comparisons an employee can make have been termed as “referents” according to Goodman. While evaluating fairness.Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension. As per this motivation theory.  Other-inside: Another employee or group of employees inside the employee’s present organization. Higher is individual’s perception of fairness. The referent chosen is a significant variable in equity theory. employee compares the job input (in terms of contribution) to outcome (in terms of compensation) and also compares the same with that of another peer of equal cadre/category. greater is the motivation level and vice versa.Equity Theory of Motivation The core of the equity theory is the principle of balance or equity. While if this ratio is unequal. an individual’s motivation level is correlated to his perception of equity. These referents are as follows:  Self-inside: An employee’s experience in a different position inside his present organization.  Other-outside: Another employee or employees outside the employee’s present organization. An employee’s choice of the referent will be influenced by the appeal of the referent and the employee’s knowledge about the referent. fairness and justice practiced by the management. An employee might compare himself with his peer within the present job in the current organization or with his friend/peer working in some other organization or with the past jobs held by him with others. D/I ratio (output-input ratio) is used to make such a comparison.  Self-outside: An employee’s experience in a situation outside the present organization. it leads to “equity tension”. A comparison has been made between 2 workers A and B to understand this point. . J. EQUITY THEORY Ratio Comparison Perception O/I a < O/I b Under-rewarded (Equity Tension) O/I a = O/I b Equity O/I a > O/I b Over-rewarded (Equity Tension) Negative Tension state: Equity is perceived when this ratio is equal.

a women employee that uses another women employee as a referent tends to lead to a lower comparative standard. Employees decide what their equitable return should be after comparing their inputs and outcomes with those of their colleagues. Employees with greater experience know their organization very well and compare themselves with their own colleagues. Employees who perceive themselves as being in an inequitable scenario will attempt to reduce the inequity either by distorting inputs and/or outcomes psychologically.)  Change perception of others (For instance .Moderating Variables: The gender. Employees expect a fair and equitable return for their contribution to their jobs.g. by directly altering inputs and/or outputs. Thus. or by quitting the organization. Don’t overexert)  Change their outcome (Produce quantity output and increasing earning by sacrificing quality when piece rate incentive system exist)  Choose a different referent  Quit the job  Change self perception (For instance . Individuals with greater and higher education are more informed. Males and females prefer same sex comparison. Choices: The employees who perceive inequity and are under negative tension can make the following choices:  Change in input (e.) Assumptions of the Equity Theory • • • • The theory demonstrates that the individuals are concerned both with their own rewards and also with what others get in their comparison. they are likely to compare themselves with the outsiders. Expectancy Theory of Motivation . education and the experience level are moderating variables. Thus.I know that I’ve performed better and harder than everyone else. while employees with less experience rely on their personal experiences and knowledge for making comparisons.Jack’s job is not as desirable as I earlier thought it was. It has been observed that females are paid typically less than males in comparable jobs and have less salary expectations than male for the same work. salary.

and not on needs unlike Maslow and Herzberg. Valence is the significance associated by an individual about the expected outcome. Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual. availability of crucial information and getting the required support for completing the job. This theory stresses upon the expectations and perception. Vroom was of view that employees consciously decide whether to perform or not at the job. what is real and actual is immaterial. valence and instrumentality. responsibility. effort. the expectancy theory concentrates on the following three relationships: • • • Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal? Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards. Limitations of the Expectancy Theory • • The expectancy theory seems to be idealistic because quite a few individuals perceive high degree correlation between performance and rewards. the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short. It emphasizes on rewards or pay-offs. Thus. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy. availability of right resources. and clarity of relationship between performance and outcomes. It is related to other parameters also such as position.  The managers must ensure that the employees can achieve the aimed performance levels. Implications of the Expectancy Theory  The managers can correlate the preferred outcomes to the aimed performance levels. Instrumentality is the faith that if you perform well.The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. The application of this theory is limited as reward is not directly correlated with performance in many organizations. . The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual. It focuses on psychological extravagance where final objective of individual is to attain maximum pleasure and least pain. etc. Advantages of the Expectancy Theory • • • • It is based on self-interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction. Expectancy is influenced by factors such as possession of appropriate skills for performing the job. education. then a valid outcome will be there. Vroom stresses and focuses on outcomes. The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence). Instrumentality is affected by factors such as believe in the people who decide who receives what outcome. the simplicity of the process deciding who gets what outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance.

 The employee’s motivation level should be continually assessed through various techniques such as questionnaire. personal interviews.  The reward system must be fair and just in an organization. etc. .  Organizations must design interesting. The deserving employees must be rewarded for their exceptional performance. dynamic and challenging jobs.

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