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Organizational politics

Organizational politics
It is the process whereby individuals or groups use whatever power
they can amass to influence organizational decisions in the direction of
their own interests.
Political Behaviour
Activities that are not required as part of a person’s former role in the
organization but that influence the distribution of advantages and
disadvantages within the organization.
Reasons for Organizational politics :( factors)
1.Competition for power
2.Discretionary authority
3.Ambiguity in organization
4.Subjective evaluation of performance
5.Saturation in promotion
6.Joint decision making
   
Controlling
Controlling measures the deviation of actual performance from the
standard performance, discovers the causes of such deviations and helps in
taking corrective actions
Pre-requisites of control
1. Planning
2. Organizational structure
3. Adequate authority
4. Supply of information
5. Corrective action
Steps in controlling
1 .Establishment of standards-
2 .Measurement of performance-
–Attitude, Their morale to work,
–physical environment, and Their communication with the superiors.
3. Comparison of actual and standard performance-
 4. Taking remedial actions
Techniques of control
Traditional control techniques. 
– Budget and budgetary control,
– Statistical analysis,
– Break even analysis,
– Personal observation and
– Return on investment.
Modern control techniques.
1. Management audit,
2. Management information system, and
3. Net Work Analysis – PERT and CPM.
1. Budget and budgetary control
“the budget is a type of plan specifying anticipated results in numerical terms.
However, it is also a control device that provides a basis for feedback,
evaluation and follows up”
Types of Budget 
There are five types of budgets namely,
•Functional budgets,
•Master budget,
•Fixed budget,
•Flexible budget, and
•Zero – base budgeting.
Budgetary control 
Budgetary control is the process whereby budgets are
prepared for the future period, and are compared with the actual
performance for finding out variances, if any.

 
2. Statistical analysis
Statistical data of historical nature are also used for control
purposes. Statistical data are generally presented in the form of ratios,
percentages, averages, etc. Special reports and analysis are very much
useful in specific problem areas. Statistical charts are prepared in such
a manner to facilitate comparison with the established standards.
3. Break-even point analysis (BEP)
It is a point of no profit, no loss.
Break even point (in rupees)= F/C*S
4. Personal observation;
Another common control technique is personal
observation. It cannot be used as a main control technique but can be
used as an excellent supplement to budgets and break-even analysis.
As per this method, managers are expected to see whether people are
doing what they are expected to do.
5. Return on investment;
Return of shareholders investment is popularly known as
R.O.I 
Modern Control Techniques
1 . Management Audit
Management audit is a systematic evaluation of the
functioning, performance and effectiveness of management of an
organization. It is a thorough-going, critical and constructive review of
the quality of management.
2. Management Information System (MIS)
Management information system is provision of facilities and
personnel for collection, processing, storing retrieving and transmitting
information that is required by one or more managers in the
performance of their functions.
3. Network analysis PERT and CPM:
Programme Evaluation and Review Technique (PERT). PERT is
now popular in the field of project planning and control. Critical path
method (CPM) was developed at E.I DuPont de Nemours Company in
1956 to aid in the scheduling of routine plant overhaul, maintenance
and construction work.
 
 
 
 
 

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