Part C

20. Discuss the Elements of Scientific Management.

Taylor Advocated the following elements of scientific management. : 1. Work Study,

2. Standardisation of Tools and Equipment, 3. Scientific Selection, Placement and
Training, 4. Development of Functional Foremanship, 5. Introducing Costing System,
6. Mental Revolution

1. Work Study:

According to International Labour Office “Work study is a term used to embrace the
techniques of method study and work measurement which are employed to ensure the
best possible use of human and material resources in carrying out specified activity.

“In simple words, work study is related to analysing the work to be performed by
eliminating unnecessary operations and finding out the quicker way of doing it. Work
study eliminates wasteful and unnecessary operations, reduces effort and increases
productivity.
2. Standardisation of Tools and Equipment:

Standardisation of tools and equipment was an important element of scientific

management. Taylor wanted to use only ‘the best way of doing the work. Proper tools
and equipment are essential for increasing the efficiency and speed of work.
3. Scientific Selection, Placement and Training:

The efficiency and quality of work is linked to the kind of persons selected for taking
up different jobs. Taylor wanted a radical change in the methods and procedures of
selecting workers. Workers should be selected by considering their education,
experience and attitude towards work.
The placement of workers should be such that only the most suitable persons are
assigned the work. Placement should be on the basis of merit rating which indirectly
implies, ‘round pegs in round holes’. Workers should be given training to make them
suitable for the jobs. Orientation training should also be imparted to prepare them to
meet new challenges.

4. Development of Functional Foremanship:

Taylor pleaded the concept of functional foremanship. He felt that workers and factory
executives should be freed from the burden of planning and designing. Functional
foremanship is the extension of the principle of specialisation or division of labour to
the sphere of management.

According to Taylor the two functions of planning and doing should be separated. The
planning section should concentrate on planning the task and issuing instructions to
the workers for implementing them. Taylor suggested eight functional specialists, the
first four attached with planning work and the next four with actual implementation or
execution of the plan.

Those involved in planning are:

(i) Route Clerk – to lay down the sequence of operations (ii) Instruction Card – Clerk
lay down the exact method of doing the work (iii) Time and Cost Clerk – to keep
records of time spent by different workers on different jobs and prepare the cost sheets
(iv) Shop Disciplinarian-to deal with cases of breach of discipline and absenteeism.

The foremen involved in actual implementation of work are:

(i) Gang Boss – to assemble and set up various equipments and tools, (ii) Speed boss –
to ensure that machines are run at optimum desired speed, (iii) Repairs boss-ensure
regular cleaning, servicing and repair of machines (iv) Inspector-to ensure that the
workers perform their work as per desired quality.

By dividing this work in this way, Taylor wanted to streamline the working of
production department. However, the concept of functional formanship has been
found to be unrealistic and has not been applied in practice.
5. Introducing Costing System:

Another important element of scientific management is the introduction of efficient

system of cost accounting. It is a technique used to calculate cost per unit and total
cost of production.

As a tool of scientific management cost accounting serves the following purposes:

(a) To present costs for cost reduction and cost control.

(b) To enable estimation of costs and preparation of budgets.

(c) To increase efficiency and reduce wastages.

(d) To help channelise production on right lines.

6. Mental Revolution:

Simply stated mental revolution is concerned with bringing basic change in the mental
attitude of workers and the management towards each other. Scientific approach
means radical changes in the approach to solve problems regarding work and
managerial control.

Workers were feeling that management was exploiting them, getting more work and
paying meagre amounts, whereas management had the misgiving that workers always
grumbled about the load of work, follow go-slow policy, damaged the equipment, and
showed indifference towards quality of goods.

This feeling of suspicion had to be routed out to adopt systematic thinking. Mutual
understanding and co-operation between management and workers was an essential
aspect pleaded by Taylor. So mental revolution on the part of workers and
management was essential to improve the working of an enterprise.

21. Explain the Types of Planning.

Planning is very important for successfulness and the effective performance of an
organisation not only for organisations but also for individuals. It is the most basic of
all the managerial functions. It involves selecting missions and objectives and the
actions to achieve them. Therefore every organisation gives a greater emphasis on
planning.

Planning as a process involves the determination of future course of action, that is

why an action, what action, how to take action, and when to take action. These are
related with different aspects of planning process.

Types of Planning:

The process of planning may be classified into different categories on the following basis:

(i) Nature of Planning:

a. Formal planning.

b. Informal planning.

(ii) Duration of planning:

a. Short term planning.

b. Long term planning.

(iii) Levels of Management:

a. Strategic planning.

b. Intermediate planning.

c. Operational planning.

(iv) Use:

a. Standing plans

b. Single-use plans.

a. Formal Planning:

Planning is formal when it is reduced to writing. When the numbers of actions are
large it is good to have a formal plan since it will help adequate control.

The term formal means official and recognised. Any planning can be done officially to
be followed or implemented. Formal planning is aims to determine and objectives of
planning. It is the action that determine in advance what should be done.

b. Informal Planning:

An informal plan is one, which is not in writing, but it is conceived in the mind of the
manager. Informal planning will be effective when the number of actions is less and
actions have to be taken in short period.

(ii) Duration of Planning:

a. Short term Planning:

Short term planning is the planning which covers less than two years. It must be
formulated in a manner consistent with long-term plans. It is considered as tactical
planning. Short-term plans are concerned with immediate future; it takes into account
the available resources only and is concerned with the current operations of the
business.

These may include plans concerning inventory planning and control, employee
training, work methods etc.

b. Long-Term Planning:

Long-term planning usually converse a period of more than five years, mostly
between five and fifteen years. It deals with broader technological and competitive
aspects of the organisation as well as allocation of resources over a relatively long
time period. Long-term planning is considered as strategic planning.

Short-term planning covers the period of one year while long term planning covers
5-15 years. In between there may be medium-term plans. Usually, medium term plans
are focusing on between two and five years. These may include plan for purchase of
materials, production, labour, overhead expenses and so on.

(iii) Levels of Management:

a. Strategic Planning:

The strategic planning is the process of determining overall objectives of the

organisation and the policies and strategies adopted to achieve those objective. It is
conducted by the top management, which include chief executive officer, president,
vice-presidents, General Manger etc. It is a long range planning and may cover a time
period of up to 10 years.

It basically deals with the total assessment of the organisation’s capabilities, its
strengths and its weaknesses and an objective evaluation of the dynamic environment.
The planning also determines the direction the company will be taking in achieving
these goals.

b. Intermediate Planning:
Intermediate planning cover time frames of about 6 months to 2 years and is
contemplated by middle management, which includes functional managers,
department heads and product line mangers. They also have the task of polishing the
top managements strategic plans.

The middle management will have a critical look at the resources available and they
will determine the most effective and efficient mix of human, financial and material
factors. They refine the broad strategic plans into more workable and realistic plans.

c. Operational Planning:

Operational planning deals with only current activities. It keeps the business running.
These plans are the responsibility of the lower management and are conducted by unit
supervisors, foremen etc. These are short-range plans covering a time span from one
week to one year.

These are more specific and they determine how a specific job is to be completed in
the best possible way. Most operational plans .ire divided into functional areas such as
production, finance, marketing, personnel etc.

Thus even though planning at all levels is important, since all levels are integrated into
one, the strategic planning requires closer observation since it establishes the direction
of the organisation.

(iv) Use:

a. Standing Plan:

Standing plan is one, which is designed to be used over and over again. Objectives,
policies procedures, methods, rules and strategies are included in standing plans. Its
nature is mechanical. It helps executives to reduce their workload. Standing plan is
also called routine plan. Standing or routine plan is generally long range.
b. Single Use Plan:

Single use plan is one, which sets a course of action for a particular set of
circumstances and is used up once the particular goal is achieved. They may include
programme, budgets, projects and schedules. It is also called specific planning. Single
use plan is short range.

22. Analyse the need of Informal Organisation.

As formal organisation grows in size, parallel existence of informal relationships

along with formal relationships becomes unavoidable. Informal organisations have
always existed with formal organisations. They arise because of inevitable social and
personal needs of individuals which cannot be satisfied by the principles of formal
organisation. They represent non-planned, unofficial, social interactions amongst
people working in formal structures. They arise out of common interests of people.

These organisations are not governed by formal set of principles but they are an
important and integral part of formal organisations. E. Wight Bakke calls the creation
of informal organisations along with formal organisations a fusion process.

Importance of Informal Organization

● Information is exchanged between groups and people quickly because lines of

communication are not defined.
● Quick feedback is received.
● Job satisfaction is attained because the social needs of the members are fulfilled
and thus leading to stability in the organization.
● People in an organization are diverse and so are their needs which cannot be
fulfilled by the formal design of the organization.
● They provide the members with an opportunity to build status and social
interaction and enables one to overcome identity crisis. It also provides an
audience to listen and reach out.
Features of Informal Organization

● Informal organizations exist in every organisation. They are built

spontaneously over time and not deliberately.
● Policies, procedures or norms are not required to form such groups, they are
formed merely based on the personal interactions and common interests.
● There is no specific direction of the flow of information
● It does not possess any definite structure or hierarchy.

oncept and Types

Informal organizations have no fixed rules or hierarchies defined between people. It is

fluid and dynamic in its form. Both formal and informal groups coexist in an
organization and are essential for efficient functioning. Informal organizations can be
classified into three groups which are defined by the similarities and dissimilarities of
work performed by the members of the group.

These are listed below:

● Horizontal Group- People who work at the same level in an organization

belong to a horizontal group. Such groups promote mutual support and
information sharing among the members. It is often found that people share the
same problems, concerns and interests. They solve problems without
depending on their bosses or higher or lower hierarchical members. For
example, people working for different departments like sales, operations,
production, etc. but are at the same level in organisational hierarchy form a
horizontal group.
● Vertical Group- People working at different levels in an organization belong
to the Vertical Group. Such groups are formed through skip-level relationships.
For example, a top-level employee may associate with a first-level employee or
a group of first-level employees form a group with their bosses.

Such groups promote better communication and quick access to the problems
arising in the organization.
 ● Mixed Group- People from different levels and different departments form
Mixed Groups. Such groups are formed based on common interests like club
memberships, common interests or their backgrounds. For example, the
president of the sales department may bond with the director of technology.

23. Elaborate the different Barriers of Effective Communication

Barriers To Effective Communication

The process of communication has multiple barriers. The intended communique will
often be disturbed and distorted leading to a condition of misunderstanding and failure
of communication. The Barriers to effective communication could be of many types
like linguistic, psychological, emotional, physical, and cultural etc. We will see all of
these types in detail below.

Psychological Barriers

There are various mental and psychological issues that may be barriers to effective
communication. Some people have stage fear, speech disorders, phobia, depression
etc. All of these conditions are very difficult to manage sometimes and will most
certainly limit the ease of communication.

Emotional Barriers

The emotional IQ of a person determines the ease and comfort with which they can
communicate. A person who is emotionally mature will be able to communicate
effectively. On the other hand, people who let their emotions take over will face
certain difficulties.

A perfect mixture of emotions and facts is necessary for effective communication.

Emotions like anger, frustration, humour, can blur the decision-making capacities of a
person and thus limit the effectiveness of their communication.

Physical Barriers to Communication

They are the most obvious barriers to effective communication. These barriers are
mostly easily removable in principle at least. They include barriers like noise, closed
doors, faulty equipment used for communication, closed cabins, etc. Sometimes, in a
large office, the physical separation between various employees combined with faulty
equipment may result in severe barriers to effective communication.

Cultural Barriers of Communication

As the world is getting more and more globalized, any large office may have people
from several parts of the world. Different cultures have a different meaning for several
basic values of society. Dressing, Religions or lack of them, food, drinks, pets, and the
general behaviour will change drastically from one culture to another.

Hence it is a must that we must take these different cultures into account while
communication. This is what we call being culturally appropriate. In many
multinational companies, special courses are offered at the orientation stages that let
people know about other cultures and how to be courteous and tolerant of others.

Organisational Structure Barriers

As we saw there are many methods of communication at an organizational level. Each

of these methods has its own problems and constraints that may become barriers to
effective communication. Most of these barriers arise because of misinformation or
lack of appropriate transparency available to the employees.

Attitude Barriers

Certain people like to be left alone. They are introverts or just people who are not very
social. Others like to be social or sometimes extra clingy! Both these cases could
become a barrier to communication. Some people have attitude issues, like huge ego
and inconsiderate behaviours.
Perception Barriers

Different people perceive the same things differently. This is a fact which we must
consider during the communication process. Knowledge of the perception levels of the
audience is crucial to effective communication. All the messages or communique must
be easy and clear. There shouldn’t be any room for a diversified interpretational set.

Physiological Barriers

Certain disorders or diseases or other limitations could also prevent effective

communication between the various channels of an organization. The shrillness of
voice, dyslexia, etc are some examples of physiological barriers to effective
communication. However, these are not crucial because they can easily be
compensated and removed.

Technological Barriers & Socio-religious Barriers

Other barriers include the technological barriers. The technology is developing fast
and as a result, it becomes difficult to keep up with the newest developments. Hence
sometimes the technological advance may become a barrier. In addition to this, the
cost of technology is sometimes very high.

24. Demonstrate the Steps involved in Ethical Decision Making Process.

Step 1: Define the problem

The most significant step in any decision-making process is to determine why a

decision is called for and identify the desired outcome(s). How you define a problem
shapes your understanding of its causes and where you will search for solutions.

First, explore the difference between what you expect and/or desire and the current
reality. By defining the problem in terms of outcomes, you can clearly state the
problem.
Consider this example: Tenants at an older office building are complaining that their
employees are getting angry and frustrated because there is always a long delay
getting an elevator to the lobby at rush hour. Many possible solutions exist, and all are
predicated on a particular understanding the problem:

● Flexible hours - so all the tenants' employees are not at the elevators at the
same time.
● Faster elevators - so each elevator can carry more people in a given time
period.
● Bigger elevators - so each elevator can carry more people per trip.
● Elevator banks - so each elevator only stops on certain floors, increasing
efficiency.
● Better elevator controls - so each elevator is used more efficiently.
● More elevators - so that overall carrying capacity can be increased.
● Improved elevator maintenance - so each elevator is more efficient.
● Encourage employees to use the stairs - so fewer people use the elevators.

The real-life decision makers defined the problem as "people complaining about
having to wait." Their solution was to make the wait less frustrating by piping music
into the elevator lobbies. The complaints stopped. There is no way that the eventual
solution could have been reached if, for example, the problem had been defined as
"too few elevators."

How you define the problem determines where you go to look for
alternatives/solutions-- so define the problem carefully.

Step 2: Seek out relevant assistance, guidance and support

Once the problem is defined, it is critical to search out resources that may be of
assistance in making the decision. Resources can include people (i.e., a mentor,
coworkers, external colleagues, or friends and family) as well professional guidelines
and organizational policies and codes. Such resources are critical for determining
parameters, generating solutions, clarifying priorities and providing support, both
while implementing the solution and dealing with the repercussions of the solution.

Step 3: Identify available alternative solutions to the problem

The key to this step is to not limit yourself to obvious alternatives or merely what has
worked in the past. Be open to new and better alternatives. Consider as many as
solutions as possible -- five or more in most cases, three at the barest minimum. This
gets away from the trap of seeing "both sides of the situation" and limiting one's
alternatives to two opposing choices (i.e., either this or that).

Step 4: Evaluate the identified alternatives

As you evaluate each alternative, identify the likely positive and negative consequence
of each. It is unusual to find one alternative that would completely resolve the
problem and is significantly better than all others. As you consider positive and
negative consequences, you must be careful to differentiate between what you know
for a fact and what you believe might be the case. Consulting resources, including
written guidelines and standards, can help you ascertain which consequences are of
greater (and lesser) import.

You should think through not just what results each alternative could yield, but the
likelihood it is that such impact will occur. You will only have all the facts in simple
cases. It is reasonable and usually even necessary to supplement the facts you have
with realistic assumptions and informed beliefs. Nonetheless, keep in mind that the
more the evaluation is fact-based, the more confident you can be that the expected
outcome will occur. Knowing the ratio of fact-based evaluation versus non-fact-based
evaluation allows you to gauge how confident you can be in the proposed impact of
each alternative.

Step 5: Make the decision

When acting alone, this is the natural next step after selecting the best alternative.
When you are working in a team environment, this is where a proposal is made to the
team, complete with a clear definition of the problem, a clear list of the alternatives
that were considered and a clear rationale for the proposed solution.

Step 6: Implement the decision

While this might seem obvious, it is necessary to make the point that deciding on the
best alternative is not the same as doing something. The action itself is the first real,
tangible step in changing the situation. It is not enough to think about it or talk about it
or even decide to do it. A decision only counts when it is implemented. As Lou
Gerstner (former CEO of IBM) said, "There are no more prizes for predicting rain.
There are only prizes for building arks."

Step 7: Evaluate the decision

Every decision is intended to fix a problem. The final test of any decision is whether
or not the problem was fixed. Did it go away? Did it change appreciably? Is it better
now, or worse, or the same? What new problems did the solution create?

Ethics Filters

The ethical component of the decision making process takes the form of a set of
"filters." Their purpose is to surface the ethics considerations and implications of the
decision at hand. When decisions are classified as being "business" decisions (rather
than "ethics" issues), values can quickly be left out of consideration and ethical lapses
can occur.

At key steps in the process, you should stop and work through these filters, ensuring
that the ethics issues imbedded in the decision are given consideration.

We group the considerations into the mnemonic PLUS.

● P = Policies
Is it consistent with my organization's policies, procedures and guidelines?
● L= Legal
Is it acceptable under the applicable laws and regulations?
 ● U = Universal
Does it conform to the universal principles/values my organization has
adopted?
● S= Self
Does it satisfy my personal definition of right, good and fair?

The PLUS filters work as an integral part of steps 1, 4 and 7 of the decision-making
process. The decision maker applies the four PLUS filters to determine if the ethical
component(s) of the decision are being surfaced/addressed/satisfied.

● Step 1: Define the problem (use PLUS to surface the ethics issues)
■ Does the existing situation violate any of the PLUS
considerations?
● Step 2: Seek out relevant assistance, guidance and support
● Step 3: Identify available alternative solutions to the problem
● Step 4: Evaluate the identified alternatives (use PLUS to assess their ethical
impact)
■ Will the alternative I am considering resolve the PLUS
violations?
■ Will the alternative being considered create any new PLUS
considerations?
■ Are the ethical trade-offs acceptable?
● Step 5: Make the decision
● Step 6: Implement the decision
● Step 7: Evaluate the decision (PLUS surface any remaining/new ethics issues)
■ Does the resultant situation resolve the earlier PLUS
considerations?
■ Are there any new PLUS considerations to be addressed?

The PLUS filters do not guarantee an ethically-sound decision. They merely ensure
that the ethics components of the situation will be surfaced so that they might be
considered.
How Organizations Can Support Ethical Decision-Making

Organizations empower employees with the knowledge and tools they need to make
ethical decisions by

● Intentionally and regularly communicating to all employees:

● Organizational policies and procedures as they apply to the common workplace
ethics issues.
● Applicable laws and regulations.
● Agreed-upon set of "universal" values (i.e., Empathy, Patience, Integrity,
Courage [EPIC]).
● Providing a formal mechanism (i.e., a code and a helpline, giving employees
access to a definitive interpretation of the policies, laws and universal values
when they need additional guidance before making a decision).