Question 1 a)

Centralization means that authority is concentrated at the top level of management. In

other words, centralization is a situation in which top management retains most of the
decision making authority. Decentralizationmeans that decision making is distributed
among all levels of the organization.
Centralized organization can be defined as a hierarchy decision-making structure
where all decisions and processes are handled strictly at the top or the executive level.
Decentralization is a type of organizational structure in which daily operations and
decision-making responsibilities are delegated by top management to middle and lowerlevel mangers within the organization, allowing top management to focus more on
major decisions.
Comparison Chart
BASIS FOR
COMPARISON

Meaning

CENTRALIZATION

DECENTRALIZATION

The retention of powers and

The dissemination of authority,

authority with respect to planning

responsibility and accountability to the

and decisions, with the top

various management levels, is known

management, is known as

as Decentralization.

Centralization.

Communication

Vertical

Open and Free

Decision Making

Slow

Comparatively faster

Advantage

Proper coordination and Leadership

Sharing of burden and responsibility

Power of

Lies with the top management.

Multiple persons have the power of

Flow

decision making

Reasons

decision making.

Inadequate control over the

Considerable control over the

organization

organization

BASIS FOR
COMPARISON

Best suited for

CENTRALIZATION

DECENTRALIZATION

Small sized organization

Large sized organization

Question 1 b)
Transactional Leadership, as its name suggests, it is a leadership style which lays
emphasis on the transaction between leader and its subordinates.
Conversely,Transformational Leadership is a type which becomes are reasons for the
transformation (change) in the subordinates.

BASIS FOR

TRANSACTIONAL

COMPARISON

LEADERSHIP

Meaning

A leadership style that employs

A leadership style in which the leader

rewards and punishments for

employs charisma and enthusiasm to

motivating followers is

inspire his followers is

Transactional Leadership.

Transformational Leadership.

Leader lays emphasis on his

Leader lays emphasis on the values,

relation with followers.

ideals, morals and needs of the

Concept

TRANSFORMATIONAL LEADERSHIP

followers.

Nature

Reactive

Proactive

Best suited for

Settled Environment

Turbulent Environment

Works for

Developing the existing

Changing the existing organizational

organizational culture.

culture.

BASIS FOR

TRANSACTIONAL

COMPARISON

LEADERSHIP

Style

Bureaucratic

Charismatic

How many

Only one

More than One

Focused on

Planning and Execution

Innovation

Motivational tool

Attracting followers by putting

Stimulating followers by setting group

their own self interest in the

interest as a priority.

TRANSFORMATIONAL LEADERSHIP

leaders are there

in a group?

first place.

Question 1 c)
Organizational culture is a system of shared assumptions, values, and beliefs, which
governs how people behave in organizations. These shared values have a strong
influence on the people in the organization and dictate how they dress, act, and perform
their jobs.

Orientation - Certain areas, such as the non-profit sector, tend to work better
with a people-oriented culture. Those working for a cause are often
emotionally invested in the organization's success. The opposite end of this
spectrum encompasses businesses that emphasize strict policies and
procedures.
Team Orientation - Nearly every business with more than a few employees has
some level of team orientation, usually in the form of separate departments.
Aggressiveness - Is your organization determined to be at the top of its field,
or are you satisfied with a stable of regular clients who provide a steady
income?
Innovation and Risk Taking - Does your organization stick with tried-and-true
methods, or are you open to the risk that comes with innovation?
Attention to Detail - In some industries attention to detail is the most
important aspect of success. Financial institutions would be hard-pressed to
succeed without meticulous employees. Other companies may work better with
a casual, "mistakes happen" attitude.
Outcome Orientation - While emphasizing the final product may seem like the
obvious choice, this characteristic is not an either-or proposition. Some
companies focus heavily on procedures, with the assumption that when
processes are done correctly, the outcome takes care of itself
Stability - Companies that emphasize stability are less concerned with growth.
They tend to focus on maintaining their current level of success.

Question 1 e)
An autocratic leadership style, the person in charge has total authority and control over
decision making. By virtue of their position and job responsibilities, they not only control
the efforts of the team, but monitor them for completion often under close scrutiny
The autocratic leadership style is best used in situations where control is necessary, often
where there is little margin for error. When conditions are dangerous, rigid rules can keep
people out of harms way. Many times, the subordinate staff is inexperienced or
unfamiliar with the type of work and heavy oversight is necessary. Rigid organizations
often use this style. It has been known to be very paternalistic, and in highly-professional,
independent minded teams, it can lead to resentment and strained morale
Good fits for Autocratic Leadership:

Military

Manufacturing

Construction

Question 1 e)
The traits of an effective leader include the following:

Emotional stability. Good leaders must be able to tolerate frustration and stress. ...

Dominance.

Enthusiasm.

Conscientiousness.

Social boldness.

Tough-mindedness.

Self-assurance.

Compulsiveness.

Question no 3 a)
Decision- making can be defined as a selection of one course of action
from two or
more alternative courses of action. It involves a choice-making activity and the choice
determines our action or inaction. Decision-making is an indispensable part of life.
Innumerable decisions are taken by human beings in day-to-day life. In business
undertakings, decisions are taken at every step. All managerial functions viz., planning,
organizing, staffing, directing, coordinating and controlling are carried through decisions.
Decision-making is thus the core of managerial activities in an organisation.
A decision is an act of choice, wherein an executive forms a conclusion about what must
be done in a given situation. A decision represents a course of behaviour chosen from a
number of possible alternatives. -D.E. Mc. Farland
Steps in decision making

1. Identification of problems: the first step of decision making is identification of

problems. First of all, managers must identify the problem. The problem has to be found
and defined. Symptoms are identified and problems should be judged, symptoms are not
problems. They are warning signs of problems. So, managers should search for
symptoms for identification of problems. Such symptoms can be falling of sales, profit
etc. It is said that problem identified is half solved is identification of problem should be
effective.
2. Analysis of problem: after identification of problems, the problem should be
analyzed by the decision maker. It is the assembly of fact and clarifying it. Relevant
information must be collected and analyzed according to the complexity and nature of
problems.
3. Developing the alternative solution: after identification and analysis of problems
different probable solutions have to be developed which is known as developing the
alternative solutions. there may be many alternative past experience, expert opinion,
discussions etc which may be helpful to develop the alternative

4. Evaluation of best alternative: after developing the alternative solution evaluation

of best alternative is done. It is determined that which alternative has how much
advantage and disadvantages. in other words, alternatives are evaluated in so many
factors like cost factors, risk , benefits, facilities etc. therefore it is very important
5. Selection of best alternative: after evaluating alternative, the best alternative is to
be selected from various alternative. After developing alternative, the managers should
taste each of them by imagining things that he has already put in effect. He should try to
foresee the desirable consequences of adopting each alternative. It is done for best
selection. therefore it is very important
6. Implementation of best alternative: after selection of finest alternative, it must be
used in the organization effectively. Effectiveness of decisions in achieving the desired
goals depends upon its implementation. It they are not implemented effectively then
best results cant be obtained. Therefore proper implementation of best alternative is
necessary.
7. Review of implementation: it is the last step of decision making process. When the
implementation of best alternative is reviewed, the process of decision making is
finished. The result of implementation should be monitored and evaluated through which
effectiveness can be measured.

Following elements can be derived from the above mentioned definitions:

1. Decisionmaking is a selection process and is concerned with selecting the best type
of alternative.

2. The decision taken is aimed at achieving the organisational goals.

3. It is concerned with the detailed study of the available alternatives for finding the best
possible alternative.

4. Decision making is a mental process. It is the outline of constant thoughtful

consideration.
5. It leads to commitment. The commitment depends upon the nature of the decision
whether short term or long term.

A lot of time is consumed while decisions are taken. In a management setting, decision
cannot be taken abruptly. It should follow the steps such as

1. Defining the problem

2. Gathering information and collecting data
3. Developing and weighing the options
4. Choosing best possible option
5. Plan and execute
6. Take follow up action

Question 3 b)

Conflict- It can be described as a disagreement among groups or individuals

characterized by antagonism and hostility. This is usually fueled by the opposition of one
party to another, in an attempt to reach an objective different from that of the other
party. The elements involved in the conflict have varied sets of principles and values,
thus allowing such a conflict to arise.

Conflict in a workplace setting can be a normal part of doing business. In some

cases, conflict that is managed properly can be beneficial, as when it fosters an
environment of healthy competition. However, conflict may also have a
detrimental effect. As a manager or business owner, you need to be aware of
potential sources of conflict within your work environment.
Change
Implementation of new technology can lead to stressful change. Workers who
don't adapt well to change can become overly stressed, which increases the
likelihood of conflict in the workplace.
Interpersonal Relationships
When different personalities come together in a workplace, there is always the
possibility they won't mesh. Office gossip and rumors can also serve as a catalyst
for deterioration of co-worker relationships.
Suvpervisor vs. Employee
Just as co-worker personalities may not mesh, a supervisor and employee can also
experience conflict. A supervisor who is seen as overbearing or unfair can rub an
employee the wrong way, which makes the working relationship more difficult.
External Changes
When the economy slides into a recession or a new competitor swoops in and
steals some of a company's market share, it can create tension within the
company. This stress can lead to conflict between employees and even between
upper levels of management.
Poor Communication
Companies or supervisors that don't communicate effectively can create conflict.
For example, a supervisor who gives unclear instructions to employees can cause
confusion as to who is supposed to do what, which can lead to conflict.

Subpar Performance
When a worker in a department is not "pulling his weight," it can lead to conflict
within the department, perhaps even escalating into a confrontational situation. A
supervisor who fails to acknowledge or address the situation can add fuel to the
fire.
Harassment
Harassment in the workplace can take many forms, such as sexual or racial
harassment or even the hazing of a new employee. Companies that don't have
strong harassment policies in place are in effect encouraging the behavior, which
can result in conflict.
Limited Resources
Companies that are looking to cut costs may scale back on resources such as
office equipment, access to a company vehicle or the spending limit on expense
accounts. Employees may feel they are competing against each other for
resources, which can create friction in the workplace.

Interpersonal conflict refers to a conflict between two individuals. This occurs typically
due to how people are different from one another. We have varied personalities which
usually results to incompatible choices and opinions. Apparently, it is a natural
occurrence which can eventually help in personal growth or developing your relationships
with others. In addition, coming up with adjustments is necessary for managing this type
of conflict. However, when interpersonal conflict gets too destructive, calling in
a mediator would help so as to have it resolve

Question4 a)
In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction. According to
Herzberg, the opposite of Satisfaction is No satisfaction and the opposite of
Dissatisfaction is No Dissatisfaction.

FIGURE: Herzbergs view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categoriesa. Hygiene factors- Hygiene factors are those job factors which are essential for
existence of motivation at workplace. These do not lead to positive satisfaction for
long-term. But if these factors are absent / if these factors are non-existant at
workplace, then they lead to dissatisfaction. In other words, hygiene factors are
those factors which when adequate/reasonable in a job, pacify the employees and
do not make them dissatisfied. These factors are extrinsic to work. Hygiene
factors are also called as dissatisfiers or maintenance factors as they are
required to avoid dissatisfaction. These factors describe the job
environment/scenario. The hygiene factors symbolized the physiological needs
which the individuals wanted and expected to be fulfilled. Hygiene factors include:

Pay - The pay or salary structure should be

appropriate and reasonable. It must be equal
and competitive to those in the same industry in
the same domain.
Company Policies and administrative policies The company policies should not be too rigid.
They should be fair and clear. It should include
flexible working hours, dress code, breaks,
vacation, etc.
Fringe benefits - The employees should be
offered health care plans (mediclaim), benefits
for the family members, employee help
programmes, etc.
Physical Working conditions - The working
conditions should be safe, clean and hygienic.
The work equipments should be updated and
well-maintained.
Status - The employees status within the
organization should be familiar and retained.
Interpersonal relations - The relationship of the
employees with his peers, superiors and
subordinates should be appropriate and
acceptable. There should be no conflict or
humiliation element present.
Job Security - The organization must provide job
security to the employees.
b. Motivational factors- According to Herzberg, the hygiene factors cannot be
regarded as motivators. The motivational factors yield positive satisfaction. These
factors are inherent to work. These factors motivate the employees for a superior

performance. These factors are called satisfiers. These are factors involved in
performing the job. Employees find these factors intrinsically rewarding. The
motivators symbolized the psychological needs that were perceived as an
additional benefit. Motivational factors include:

Recognition - The employees should be praised and recognized for their

accomplishments by the managers.

Sense of achievement - The employees must have a sense of

achievement. This depends on the job. There must be a fruit of some sort
in the job.

Growth and promotional opportunities - There must be growth and

advancement opportunities in an organization to motivate the employees
to perform well.

Responsibility - The employees must hold themselves responsible for the

work. The managers should give them ownership of the work. They should
minimize control but retain accountability.

Meaningfulness of the work - The work itself should be meaningful,

interesting and challenging for the employee to perform and to get
motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:
1. The two-factor theory overlooks situational variables.
2. Herzberg assumed a correlation between satisfaction and productivity. But the
research conducted by Herzberg stressed upon satisfaction and ignored
productivity.
3. The theorys reliability is uncertain. Analysis has to be made by the raters. The
raters may spoil the findings by analyzing same response in different manner.
4. No comprehensive measure of satisfaction was used. An employee may find his
job acceptable despite the fact that he may hate/object part of his job.
5. 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. They will blame dissatisfaction on the external factors such as salary
structure, company policies and peer relationship. Also, the employees will give
credit to themselves for the satisfaction factor at work.
6. The theory ignores blue-collar workers. Despite these limitations, Herzbergs TwoFactor theory is acceptable broadly.
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. Also, 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. This theory
emphasize upon job-enrichment so as to motivate the employees. The job must

utilize the employees skills and competencies to the maximum. Focusing on the
motivational factors can improve work-quality.

Question 4 b)
.
The art of leadership competency is nothing more than the application of 3
fundamental characteristics:
1.

Knowledge
Knowledge is all the required information in order to do a job or task. This may
include technical, managerial, leadership, psychological and other information.
This is important to demonstrate, to convince and influence your people that
you know exactly what you want them to do. One should never be shy of
knowledge or rank or status. The virtue of humility has a far reaching impact
in the build up of trust. Knowledge is the intellectual dimension that allows a
leader to build positive power of influence. People would listen enthusiastically
because of the wisdom being shared, not because they have to!

2.

Courage
Courage can be measured in terms of physical and moral. Whilst physical
courage has its significance in the military, it is moral courage that separates
the professional from the amateur. A leader without moral courage is one
without a backbone. Moral courage is the foundation for integrity because it
gives you the strength of character within never to fear anyone or anything in
leading your people. In a corporate context, this would mean standing up for
righteousness, standing by your people, fighting for any injustice, rewarding
them accordingly, and punishing them for their wrong doings, including
termination. A leader must, when the situation demands, choose the harder
right instead of the easier wrong.

3.

Compassion
This is the emotional dimension that underscores the caring nature of a leader
towards his fellow workers, particularly when the chips are down. It is a
reflection of the degree of willingness to listen with your mind and heart.
Compassion is not about treating people with "welfare" outlook, but rather
treating people with respect, trust and care they deserve as human beings. If
they have weaknesses or not performing up to expectations, then it is
incumbent upon leadership to extend a helping hand in overcoming it
effectively and efficiently. A leader who is willing to bridge the gap, listen to
and empathize with his workers will earn their respect and sacrifice - paving
the way to the ultimate test of all leadership: willingness.

That in a nutshell is what leadership is all about, be you from any walk of life.
Wherever you are or go, as long as you are a leader you shall be measured by these
characteristics. Leadership is not about management, power authority, position or

wondrous charm - it's about inspiring and influencing people to do things, willingly.

While leadership is learned, a leader's skills and knowledge can be infl uenced by
his or hers attributes or traits, such as beliefs , values , ethics , and character .
Knowledge and skills contribute directly to the process of leadership, while the
other attributes give the leader certain characteristics that make him or her
unique

Question 5 a)
A culture is comprised of the shared values, customs, traditions, rituals, behaviours and
beliefs shared by a social group (national, ethnic, organizational, etc.). Cultures also
share languages, or ways of speaking. From a communication perspective, cultures are
made and remade through the words we use to describe our world. Culture represents a
common set of values (shared meanings), shared by members of a population, a
organization, a project/programme purpose unit or a profession (e.g., engineers versus
scientists). Culture change with the times but the speed at which the culture of different
institutions change varies widely.
Organizational culture plays several important roles.

 culture unites (brings together) employees by providing a sense of identity with

the organization.
culture enables organizations to differentiate themselves from one another.
culture often generates commitment, superceding personal interests.
culture sets organization norms, rules and standards. Thereby, culture enables
employees to function in an organization, by teaching them how to behave.
culture becomes especially important in a program/project based organization. In
such a organization, the hierarchy is flat and decision-making is moved to the
project/programme purpose units and departments. In this context, culture
provides the guiding light towards achievement of goals and objectives.

Elements of Organizational Culture

Organizations (e.g., project/programme purpose organizations) develop their own
culture. The culture of a organization consists of elements that are valued and
practiced. The emerging challenges for communicating and organizing in a global/local
operational environment (think globally, act locally) are based on understanding the
interrelationships among cultural differences, communication behaviors, and
organizational relationships both within and outside of the organization. The challange for
a manager is to examine the current culture and style of communication operating within
an organization and to develop communication skills that will allow for the insight,
sensitivity, vision, versatility, focus, patience, and global-localism called for in todays
complex work environment.

Behavioral Norms
This is one of the most important elements of organizational culture. They describe the
nature of expectations which impinge on the members behavior. Behavioral norms
determine how the members will behave, interact and relate with each other. The group
norms determine whether or not one can openly disagree with superior, or whether or
not people can be friendly with employees in other departments. behavior of employees
is an important parameter while promoting the organizational culture. The enforcement
of behavioral norms also weeds out those members who do not fit" in the organization.

Shared Beliefs and Values

All organizations have their unique set of basic beliefs and values (also called moral
codes), shared by most of its members. These are the mental pictures of organizational
reality, and form the basis of defining the right or wrong in the organization. In an
organization, for instance, if the predominant belief is that meeting the customers
demands is essential for success, any behavior which supposedly meets this criteria is
acceptable, even if it violates the established rules and procedures. Values and beliefs
focus organizational energies toward certain actions, while discouraging the other
behavioral patterns.
Ceremonies and Celebrations

These are consciously enacted behavioral artifacts which help in reinforcing the
organizations cultural values and assumptions. For example, every year Tata Steel
celebrates Founders Day to commemorate and reiterate its adherence to the original
values of the organization. Stating the importance of ceremonies and celebrations, Deal
and Kennedy (1982) say,
Without expressive events, any culture will die. In the absence of ceremony, important
values have no impact."

Stories, Myths and Legends

These are, in a way, an extension of organizational language. They epitomize the
unwritten values and morals of the organizational life. If you collect the various stories,
anecdotes and jokes that are shared in an organization, they often read like plots and
themes, in which nothing changes except the characters. They rationalize the complexity
and turbulence of activities and events to allow for predictable action-taking.

Language, Jargons and Metaphors

These elements of organizational culture play an important role in identifying a

company's culture. While language is a means of universal communication, most
business houses tend to develop their own unique terminologies, phrases and acronyms.
For instance, in the organizational linguistics code, "Kremlin" may mean the
headquarters; in Coal India Limited, the acronym J.I.T.(Just In Time)was jokingly used to
describe all the badly planned fire-fighting jobs.
Such specialized usage of words and phrases makes an organizations language
incomprehensible to those who do not belong to that culture. And thus, language
becomes a means of identifying the members from non-members.

Question 5 b)
Management has been progressively evaluated through the following three stages.

The Classification theory of management

It has three streams:1.

Bureaucracy : 1900

2.

Scientific management: 1900-1930

3.

Administrative / Operational management: 1916-1940

The Neo-classical Theory of management

It has two streams:1.

Human Relations: 1930-1950

2.

Behavioral Approach: 1940-1950

Modern Theory of management

It has three streams:1.

Quantitative Approach: 1950-1960

2.

Systems Approach: 1960s on words

3.

Contingency Approach: 1970s on words

Early Management Thought

The period of 1700 to 1800 emphasizes the industrial revolution and the factory system
highlights the industrial revolution and the importance of direction as a managerial
purpose. Thus, the development of management theory can be recognized as the way
people have struggled with relationships at particular times in olden periods. Many
economic theorists during this period described the notion of management. Adam Smith
and James Watt have been recognized as two theorists who launched the world toward
industrialization. Adam Smith brought about the revolution in financial thought and James
Watt's steam engine provided cheaper power that revolutionized English commerce and
industry. Both provided the base for modern concepts of business management theory
and practice. Adam Smith explicated the concept of division of labour and Jacques Turgot
described the importance of direction and control. Smith stated that market and
competition should be the controllers of economic activity and that tax policies were
destructive. The specialization of labour was the basis of Smith's market system.
According to Smith, division of labour provided managers with the maximum opportunity
for improved output. In the period of 17711858, Robert Owens studied for concern for
the workers. He was repulsed by the working conditions and poor treatment of the
workers in the factories across Scotland. Owen became a reformer. He reduced the use of
child labour and used ethical influence rather than physical punishment in his factories.
He reproached his fellow factory owners for treating their equipment better than they
treated their workers.

In quantitative approach of early management thought, Charles Babbage (17921871) is

recognized as the supporter of operations research and management science. Babbage's
scientific innovations are mechanical calculator, a versatile computer, and a punch-card
machine. His projects never became a commercial reality. However, Babbage is
considered the creator of the concepts behind the present day computer. The most
popular book of Babbage, On the Economy of Machinery and Manufacturers, described
the tools and machinery used in English factories. It discussed the economic principles of
manufacturing, and analysed the operations and the skills used and suggested improved
practices. Babbage considered in the benefits of division of labour and was a supporter of
profit sharing. He developed a method of observing manufacturing that is the same
approach utilized today by operations analysts and consultants analysing manufacturing
operations. Other theorists who contributed in quantitative approach of early
management thought were Robert Owen, Andrew Ure and Charles Dupin, Henry Robinson
Towne.
Another theorist Baptiste, explained the significance of planning. But management is
appeared as a different discipline in the second half of 19th century with the beginning of
Joint Stock Company. This type of enterprises separated management of business from
their ownership and gave emphasis to labour incompetence and improper systems of
wage payments. To resolve such problem, people began to identify management as a
separate field of study. During 20th century, Management has become more scientific
discipline with standard principles and practices.
The Classical Approach
The classical approach is the earliest thought of management .The classical approach
was associated with the ways to manage work and organizations more efficiently. The
classical approach are categorized into three groups namely, scientific management,
administrative management, and bureaucratic management.
I. Scientific Management: Scientific management which is also referred to Taylorism or
the Taylor system is a theory of management that evaluates and synthesizes workflows,
with the aim of improving labour productivity. In other words, conventional rules of thumb
are substituted by accurate procedures developed after careful study of an individual at
work. Universal approaches of Scientific management are developed for Efficiency of
workers, Standardization of job roles/activities and Discipline - the role of managers and
the business hierarchy. The scientific management theory had an enormous impact on
the business industry at the beginning of the 20th century. Many big and victorious
organizations, such as McDonalds hamburger chain or call centres, utilised a modern
version of scientific management. Among famous theorist, Taylor's contribution in the
area of scientific management is invaluable. The components of scientific management
are determination of the task, planning, proper selection and training of workers
improvement in methods, modification of organization and mental revolution such as 'job
specialization'. As a result, it became more concerned with physical things than towards
the people even though increased the output. Scientific Management focuses on worker

and machine relationships. Organizational productivity can be increased by enhancing

the competence of production processes. The competence viewpoint is concerned with
creating job that economizes on time, human energy, and other productive resources.
Jobs are planned so that each worker has a specified, well controlled task that can be
performed as instructed. Principle of scientific management are replacement of old rule
of thumb method, scientific selecting and training, labour management co-operation,
maximizes output, equal division of responsibility. There are four scientific management
systems such as develop a science for each element of the job to replace old rule of
thumb method, Scientifically select employees and then train them to do the job as
described in step, supervise employees to make sure they follow the prescribed method
for performing their job and continue to plan the work but use worker to actually get the
work done.
Taylor's Scientific Management: Academic records indicated that F.W. Taylor and his
colleagues developed the first systematic study in management. He initiated an
innovative movement in 1910 which is identified as scientific management. Frederick
Taylor is known as the father of Scientific Management and he published Principals of
Scientific Management in which he proposed work methods designed to boost worker
productivity. Taylor asserted that to succeed in these principles, it is necessary to
transform completely the part of management and labour. His philosophy was based on
some basic principles. The first principle is separation of planning and doing. In the preTaylor era, an employee himself used to choose or plan how he had to do his work and
what machines and equipment would be necessary to perform the work. But Taylor
divided the two functions of planning and doing, he stressed that planning should be
delegated to specialists. Second principle of Taylor's management approach is functional
foremanship. Taylor launched functional foremanship for administration and direction.
Under eight-boss-scheme of functional foremanship, four persons like route clerk,
instruction card clerk, time and cost clerk and disciplinarian are associated with planning
function, and the remaining four speed boss, inspector, maintenance foreman, and gang
boss are concerned with operating function. Third principle is elements of scientific
management. The main constituents of scientific management are work study involving
work important and work measurement using method and time study, standardization of
tools and equipment for workmen and improving working conditions, scientific Selection,
placement and training of workers by a centralized personal department. Fourth principle
is bilateral mental revolution. Scientific management involves a complete mental change
of employees towards their work, toward their fellow-men and toward their employers.
Mental revolution is also necessary on the part of management's side, the foreman, the
superintendent, the owners and board of directions. Fifth principle is financial incentives.
In order to encourage workers to give better performance, Taylor introduced differential
piece-rate system. According to Taylor, the wage should be based on individual
performance and on the position which a worker occupies. Economy is other principle of
management devised by Taylor. According to him, maximum output is achieved through
division of labour and specialization. Scientific Management concentrates on technical
aspects as well as on profit and economy. For this purpose, techniques of cost estimates

and control should be adopted. Taylor concluded that science, not rule of thumb,
Harmony, not discord, Cooperation and not individualism, Maximum output, in place of
restricted output.
(ii) Administrative Management: Administrative Management emphasizes the
manager and the functions of management. The main objective of Administrative
management is to describe the management process and philosophy of management. In
contradiction of scientific management, which deals mainly with jobs and work at
individual level of scrutiny, administrative management gives a more universal theory of
management.
Henry Fayol's Administrative Management (18411925): Henri fayol is known as
the father of modern Management. He was popular industrialist and victorious manager.
Fayol considered that good management practice falls into certain patterns that can be
recognized and analysed. From this basic perspective, he devised a blueprint for a
consistent policy of managers one that retains much of its force to this day. Fayol
provided a broad analytical framework of the process of management. He used the word
Administration for Management. Foyal categorized activities of business enterprise into
six groups such as Technical, Financial, Accounting, Security, and Administrative or
Managerial. He stressed constantly that these managerial functions are the same at
every level of an organization and is common to all firms. He wrote General and
Industrial Management. His five function of managers were plan, organize, command, coordinate, and control. Principal of administrative management: 1.Division of labour,
2.Authority & responsibility, 3.Discipline, 4.Unity of command, 5.Unity of direction,
6.Subordination of individual interests to general interest, 7.Remuneration of personnel,
8.Centralization, 9.Scalar chain, 10.Order, 11.Equity, 12.Stability of tenure, 13.Initiative
and14 .Esprit de corps (union of strength). These 14 principles of management serve as
general guidelines to the management process and management practice. His principles
of management are described below.
1. Division of work: This is the principle of specialization which is detailed by
economists as an important to efficiency in the utilization of labour. Fayol goes
beyond shop labour to apply the principle to all kinds of work, managerial as well
as technical.
2. Authority and responsibility: In this principle, Fayol discovers authority and
responsibility to be linked with the letter, the consequence of the former and
arising from the latter.
3. Discipline: This discipline denotes "respect for agreements which are directed at
achieving obedience, application, energy and the outward marks of respect".
Fayol declares that discipline requires good superiors at all levels, clear and fair
agreement, and judicious application of penalties.

4. Unity of command: This is the principle that an employee should receive orders
from one superior only.
5. Unity of direction: Fayol asserted that unity of direction is the principle that each
group of activities having the same objective must have one head and one plan.
As distinguished from the principle of unity of command, Fayol observes unity of
direction as related to the functioning of personnel.
6. Subordination of individual interest to general interest: In any group the interest
of the group should supersede that of the individual. When these are found to
differ, it is the function of management to reconcile them.
7. Remuneration of personnel: Fayol recognizes that salary and methods of payment
should be fair and give the utmost satisfaction to worker and boss.
8. Centralization: Fayol principle of centralization refers to the extent to which
authority is concentrated or dispersed in an enterprise. Individual circumstances
will determine the degree of centralization that will give the best overall yield.
9. Scalar chair: Fayol believe of the scalar chair as a line of authority, a 'Chain of
Superiors" from the highest to the lowest ranks and held that, while it is an error
of subordinate to depart 'needlessly' from lines of authority, the chain should be
short-circuited when scrupulous following of it would be detrimental.
10. Order: Breaking this principle into 'Material order' and 'Social Order', Fayol thinks
of it as the simple edge of "a place for everything (everyone), and everything
(everyone) in its (his) place". This is basically a principle of organization in the
arrangement of things and persons.
11. Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from
personnel by a combination of kindliness and justice in managers dealing with
subordinates.
12. Stability of tenure of personnel: Finding that such instability is both the cause and
effect of bad management, Fayol indicated the dangers and costs of unnecessary
turnover.
13. Initiative: Initiative is envisaged as the thinking out and execution of a plan. Since
it is one of the "Keenest satisfactions for an intelligent man to experience", Fayol
exhorts managers to "Sacrifice Personal Vanity" in order to permit subordinates to
exercise it.
14. Esprit de corps: This is the principle that 'union is strength' an extension of the
principle of unity of command. Fayol here emphasizes the need for teamwork and
the importance of communication in obtaining it.

(iii) Bureaucratic Management:.

Bureaucratic management denotes to the perfect type of organization. Principal of
Bureaucracy include clearly defined and specialized functions, use of legal authority,
hierarchical form, written rules and procedures, technically trained bureaucrats,
appointment to positions based on technical expertise, promotions based on competence
and clearly defined career paths. The German sociologist, Max Weber recognized as
father of modern Sociology who appraised bureaucracy as the most logical and structure
for big organization. With his observation in business world, Weber summarized that
earlier business firms were unproductively managed, with decisions based on personal
relationships and faithfulness. He proposed that a form of organization, called a
bureaucracy, characterized by division of labour, hierarchy, formalized rules,
impersonality, and the selection and promotion of employees based on ability, would
lead to more well-organized management. Weber also argued that authoritative position
of managers in an organization should be based not on tradition or personality but on the
position held by managers in the organizational hierarchy.
Max Weber (1864-1920) devised a theory of bureaucratic management that emphasized
the need for a firmly defined hierarchy governed by clearly defined regulations and lines
of authority. He considered the perfect organization to be a bureaucracy whose activities
and objectives were reasonably thought out and whose divisions of labour were clearly
defined. Weber also believed that technical capability should be emphasized and that
performance evaluations should be made completely on the basis of merit. Presently, it is
considered that bureaucracies are huge, impersonal organizations that put impersonal
competence ahead of human needs. Like the scientific management theorists, Weber
sought to advance the performance of socially important organizations by making their
operations predictable and productive. Although we now value innovation and flexibility
as much as efficiency and predictability, Weber's model of bureaucratic management
evidently advanced the development of vast corporations such as Ford. Bureaucracy was
a particular pattern of relationships for which Weber saw great promise. Although
bureaucracy has been successful for many companies, in the competitive global market
of the 1990s organizations such as General Electric and Xerox have adopted
bureaucracy, throwing away the organization chart and replacing it with ever-changing
constellations of teams, projects, and alliances with the goal of unleashing employee
creativeness.
Chester I. Barnard: Chester Barnard (1886-1961) also devised components to classical
theory such as Follett that would be further developed in later schools. Barnard, who
became president of New Jersey Bell in 1927, used his work experience and his wide
reading in sociology and philosophy to devise theories about organizations. Barnard
stated that people join in formal organizations to accomplish such goals that cannot be
fulfilled by working alone. But as they follow the organization's goals, they must also
gratify their individual needs. Barnard came to conclusion that an enterprise can operate
efficiently and survive only when the organization's goals are kept in balance with the
aims and needs of the individuals working for it. Barnard denotes a principle by which

people can work in stable and mutually constructive relationships over time. Barnard
believed that individual and organizations purposes must be in balance if managers
understood an employee's zone of indifference that is, what the employee would do
without questioning the manager's authority. Apparently, the more activities that fell
within an employee's zone of indifference the smoother and more cooperative an
organization would be. Barnard also believed that managers had a duty to inspire a sense
of moral purpose in their employees. To do this, they would have to learn to think beyond
their narrow self-interest and make an ethical promise to society. Although Barnard
emphasized the work of administrative managers, he also focused substantial attention
on the role of the individual employee as the basic strategic factor in organization.
Modern Management Approaches
Behavioural Approach: Numerous theorists developed the behavioural approach of
management thought as they observed weaknesses in the assumptions of the classical
approach. The classical approach emphasized efficiency, process, and principles. Some
management scholars considered that this thought ignored important aspects of
organizational life, particularly as it related to human behaviour. Therefore the
behavioural approach concentrated on the understanding of the factors that affect
human behaviour at work. This is an improved and more matured description of human
relations approach. The various theorists who have great contribution in developing
principles of management in this are Douglas Mc Gregor, Abraham Maslow, Curt Levin,
Mary Porker Follelt, Rensis Likert. Behavioural Scientists hold the classical approach as
highly mechanistic, which finds to degrade the human spirit. They choose more flexible
organization structures and jobs built around the capabilities and talent of average
employees. The behavioural approach has based the numerous principles.
1. Decision-making is done in a sub-optimal manner, because of practical and
situational constraints on human rationality of decision-making. The behaviourists
attach great weight age on participative and group decision-making.
2. Behavioural Scientists promote self-direction and control instead of imposed
control.
3. Behavioural Scientists believe the organization as a group of individuals with
certain goals.
4. Behavioural scientists perceive that the democratic-participative styles of
leadership are enviable, the autocratic, task oriented styles may also be
appropriate in certain situation.
5. Behavioural scientists propose that different people react differently to the same
situation. No two people are exactly similar and manager should tailor his
attempts to influence his people according to their needs.

6. Behavioural scientists identify that organizational variance and change are

predictable.
Approach of Mary parker follett: Mary Parker Follett (1868-1933) developed classic
structure of the classical school. However, she initiated many new elements particularly
in the area of human relations and organizational structure. In this, she introduced trends
that would be further developed by the talented behavioural and management science
schools. Follett was persuaded that no one could become a whole person except as a
member of a group. Human beings grew through their relationships with others in
organizations. In fact, she explained management as "the art of getting things done
through people." She took for granted Taylor's statement that labour and management
shared a common purpose as members of the same organization, but she considered
that the artificial difference between managers and subordinates is vague in this natural
partnership. She believed in the power of the group, where individuals could combine
their diverse talents into something bigger. Moreover, Follett's "holistic" model of control
took into account not just individuals and groups, but the effects of such environmental
factors as politics, economics, and biology. Follett's model was significant precursor of the
idea that management meant more than just what was happening inside a particular
organization.
Maslow's theory of self-actualisation: His theory is recognized as Hierarchy of Needs. It is
illustrated in a pyramid and elucidates the different levels and importance of human's
psychological and physical needs. It can be used in business by managers to better
understand employee motivation. The general needs in Maslow's hierarchy include
physiological needs (food and clothing), safety needs (job security), social needs
(friendship), self-esteem, and self-fulfilment or actualisation. Maslow's Hierarchy of Needs
relates to organizational theory and behaviour because it explores a worker's motivation.
Some people are prepared to work just for money, because of friends, or the fact that
they are respected by others and recognized for their good work. The final level of
psychological development that can be achieved when all basic and mental needs are
fulfilled and the "actualization" of the full personal potential takes place. In the
organizational situation, if an employee's lower need on the hierarchy is not met, then
the higher ones are ignored. For example, if employees are worried that they will be fired,
and have no job security, they will be concerned about friendship and respect.
Douglas McGregor theory of management suggested that there is need to motivate
employees through authoritative direction and employee self-control and he introduced
the concept of Theory X and Y. Theory X is a management theory focused more on
classical management theory and assumes that workforce need a high amount of
supervision because they are inherently lazy. It presupposes that managers need to
motivate through coercion and punishment. Theory Y is a management theory that
assumes employees are determined, self-motivated, exercise self-control, and generally
enjoy mental and physical work duties. Theory Y is in line with behavioural management
theories. Theory X and Theory Y relates to Maslow's hierarchy of needs in how human
behaviour and motivation is the main priority in the workplace in order to maximize

output. Theory X: The theory that employees are inherently lazy and irresponsible and
will tend to avoid works unless closely supervised and given incentives, contrasted with
Theory Y. Theory Y: The theory that employees are capable of being ambitious and selfmotivated under suitable conditions, contrasted with Theory X.
An influential theorist in behaviour approach of management thought was Likert. His
principles based on four System such as supportive relationships between organizational
members, multiple overlapping structures, with groups consisting of superiors and their
subordinates, group problem solving by consensus within groups and overlapping
memberships between groups by members who serve as linking pins.
Human Relations Approach: The human rationalists which is also denotes to neoclassicists, focused as human aspect of business. These theorists emphasize that
organization is a social system and the human factor is the most vital element within it.
There are numerous basic principles of the human relations approach that are mentioned
below:
1. Decentralization: The concept of hierarchy employed by classical management
theorists is replaced with the idea that individual workers and functional areas
(i.e., departments) should be given greater autonomy and decision-making power.
This needs greater emphasis on lateral communication so that coordination of
efforts and resources can occur. This communication occurs via informal
communication channels rather than the formal, hierarchical ones.
2. Participatory Decision-Making: Decision-making is participatory in the sense that
those making decisions on a day-to-day basis include line workers not normally
considered to be "management." The greater sovereignty afforded individual
employees and the subsequent reduction in "height" and increase in span of
control of the organizational structure requires that they have the knowledge and
ability to make their own decisions and the communication skill to coordinate their
efforts with others without a nearby supervisor.
3. Concern for Developing Self-Motivated Employees: The importance on a system of
decentralized and autonomous decision-making by members of the organization
necessitates that those members be extremely "self-motivated". Goal of
managers in such an organization is to design and implement organizational
structures that reward such self-motivation and autonomy. Another is to negotiate
working relationships with subordinates that foster effective communication in
both directions.
Therefore, the human relations approach implies modifications in the structure of the
organization itself, in the nature of work, and in the association between manager and
assistant. Each of these changes depends upon assumptions about the individual, the
organization, and communication, just like any other theory of organizations. Elton Mayo

and others conducted experiments that was known as Hawthorne experiments and
explored informal groupings, informal relationships, patterns of communication, and
patterns of internal leadership. Elton Mayo is usually popular as father of Human
Relations School. The human relationists, advocates the several factors after conducting
Hawthorne experiments which are mentioned below.
1. Social system: The organization in general is a social system consists of numerous
interacting parts. The social system established individual roles and establishes
norms that may differ from those of formal organization.
2. Social environment: The social climate of the job affects the workers and is also
affected.
3. Informal organization: The informal organization does also exist within the frame
work of formal organization and it affects and is affected by the formal
organization.
4. Group dynamics: At the place of work, the workers often do not act or react as
individuals but as members of group. The group plays an important role in
determining the attitudes and performance of individual workers.
5. Informal leader: There is an appearance of informal leadership as against formal
leadership and the informal leader sets and enforces group norms.
6. Non-economic reward: Money is an encouraging element but not the only
motivator of human behaviour. Man is diversely motivated and socio
psychological factors act as important motivators.
Behavioural Science: Behavioural science and the study of organizational behaviour
emanated during 1950s and1960s. The behavioural science approach was a natural
development of the human relations movement. It concentrated on applying conceptual
and analytical tools to the problem of understanding and foresees behaviour in the place
of work. The behavioural science approach has contributed to the study of management
through its elements of personality, attitudes, values, motivation, group behaviour,
leadership, communication, and conflict, among other issues.
Contingency Approach: This approach of management thought focuses on
management principles and concepts that have no general and universal application
under all conditions. Joan Woodward in the 1950s has contributed to develop this
approach in management. Contingency school states that management is situational and
the study of management recognize the important variables in the situation. It
distinguishes that all the subsystem of the environment are interconnected and
interrelated. By studying their interrelationship, the management can find resolution to
specific situation. Theorists stated that there is not effective way of doing things under all
business conditions. Methods and techniques which are extremely effective in one

situation may not give the same results in another situation. This approach proposes that
the role of managers is to recognize best technique in particular situation to accomplish
business goals. Managers have to develop situational understanding and practical
selectivity. Contingency visions are applicable in developing organizational structure, in
deciding degree of decentralization, in motivation and leadership approach, in
establishing communication and control systems, in managing conflicts and in employee
development and training. The contingency approach is associated with applying
management principles and processes as dictated by the sole characteristics of each
situation. It depends on various situational factors, such as the external environment,
technology, organizational characteristics, characteristics of the manager, and
characteristics of the subordinates. Contingency theorists often implicitly or explicitly
disapprove the classical approach as it focuses on the universality of management
principles.
The Quantitative Approach Of Management Thought
The quantitative approach aimed at enhancing the process of decision making through
the use of quantitative techniques. It is evolved from the principles of scientific
management.
1. Management Science (Operations Research): Management science which is
also known as operations research utilized mathematical and statistical
approaches to resolve management issues. It was developed during World War II
as strategists attempted to apply scientific knowledge and methods to the
intricate troubles of war. Industry started to apply management science after the
war. The introduction of the computer technology made many management
science tools and concepts more practical for industry
2. Production and Operations Management: This approach emphasizes the
operation and control of the production process that changes resources into
manufactures goods and services. This approach is emerged from scientific
management but became a specific area of management study after World War II.
It uses many of the devices of management science. Operations management
underlines productivity and quality of both manufacturing and service
organizations. W. Edwards Deming exercised a great influence in developing
contemporary ideas to improve productivity and quality. Major areas of study
within operations management include capacity planning, facilities location,
facilities layout, materials requirement planning, scheduling, purchasing and
inventory control, quality control, computer integrated manufacturing, just-in-time
inventory systems, and flexible manufacturing systems.
Systems Approach Of Management Thought
The systems approach deals with the thoroughly understanding the organization as an
open system that converts inputs into outputs. The systems approach has great impact

on management thought in the 1960s. During this period, thinking about managing
practices allowed managers to relate different specialties and parts of the company to
one another, as well as to external environmental factors. The system approach focuses
on the organization as a whole, its communication with the environment, and its need to
achieve equilibrium.
System approach

To summarize, there are important theories of Management and each theory has distinct
role to knowledge of what managers do. Management is an interdisciplinary and global
field that has been developed in parts over the years. Numerous approaches to
management theory developed that include the universal process approach, the
operational approach, the behavioural approach, the systems approach, the contingency
approach and others. F W Taylor, Adam Smith, Henry Fayol, Elton Mayo and others have
contributed to the development of Management concept. The classical management
approach had three major categories that include scientific management, administrative
theory and bureaucratic management. Scientific management highlighted the scientific
study of work methods to improve worker efficiency. Bureaucratic management dealt
with the characteristics of an perfect organization which operates on a rational basis.
Administrative theory explored principles that could be used by managers to synchronise
the internal activities of organizations. The behavioral approach emerged mainly as an
outcome of the Hawthorne studies. Mary Parker Follet, Elton Mayo and his associates,
Abraham Maslow, Douglas McGregor and Chris Argyris were main players of this school.

Question 6 b)
Strategic Planning Vs Operational Planning
BASIS FOR COMPARISON

STRATEGIC PLANNING

OPERATIONAL PLANNING

Meaning

The planning for achieving the vision of the organization is Strategic

Planning.

Operational Planning is a process of deciding in advance of what is to be

done to achieve the tactical objectives of business?

Time Horizon Long term planning

Approach

Extroverted

Modifications Generally, the plan lasts longer.

Short term planning

Introverted
The plan changes every

year.
Performed by Top level management
Scope
Emphasis on

Middle level management

Wide
Planning of vision, mission and objectives.

Narrow
Planning the routine

activities of the company.

Definition of Strategic Planning

Strategic Planning is a planning process undertaken by the top level management, to

decide Where the organization wants to reach in future? And What should be done to
pursue the organizational vision, mission, and objectives? It is an analytical process
which examines the micro and macro environment of business. The process is used to
define the companys vision, ambitions, and set priorities to make a route that will lead
the company towards its ultimate goal.

The planning is not made for a particular department or unit, but it covers the entire
organization. The strategic planning is done to determine the factors of the internal and
external environment which directly influences the organization. The plan focuses on the
enduring development of the organization. The tools used in this process are:

SWOT Analysis (Strength, Weakness, Opportunities, Threats)

Portfolio Analysis
PEST Analysis (Political, Economic, Social, Technological Environment)
Porters 5 forces Analysis (New Entrants, Rival Sellers, Substitute Products, Buyer
Bargaining Power, Supplier Bargaining Power)
BCG Matrix (Boston Consulting Group)
These tools help the management to design a strategy considering various elements,
that will lead the organization towards its vision.

Definition of Operational Planning

The process which predetermines the day to day activities of the business is known as
Operational Planning. The planning is done to support the strategic planning to
accomplish the organizational goals. In this process, short run objectives of the company
are determined as well as a means to achieve those objectives are also discovered.

Middle-level management performs the function of the operational planning process. It

includes planning of regular business activities and operations for a short period. Under
this process, the organization is classified into the various department, division, unit, and
center for which planning is performed individually, which is aligned with the strategic
planning to reach the organizations vision. The following are the features of Operational
Planning:

Objectives need to be clearly defined.

Achievement of the desired result.
The activities are to be performed as decided.
Maintenance of quality standards.
Measuring performance.

Key Differences Between Strategic Planning and Operational Planning

The following are the differences between strategic planning and operational planning:

The planning to pursue the organizations vision is known as Strategic Planning. The
planning to achieve the tactical objectives of the organization is known as Operational
Planning.
Strategic Planning is long lasting as compared Operational Planning.
Operational Planning is done to support Strategic Planning.
Strategic Planning takes into account the internal as well as the external environment of
business. Conversely, Operational Planning is concerned with the internal environment of
business.
Strategic Planning is done by top level management, whereas the Operational Planning is
a function of middle-level management.
Strategic Planning covers the whole organization, but Operational Planning is done in a
particular unit or department of the organization

The difference between and operational and strategic plans

Strategic Plan

Operational Plan

A general guide for the management of

the organisation

A specific plan for the use of the

organisation's resources in pursuit of the
strategic plan.

Suggests strategies to be employed in

pursuit of the organisation's goals

Details specific activities and events to be

undertaken to implement strategies

Is a plan for the pursuit of

the organisation's mission in the longer
term (3 - 5 years)

Is a plan for the day-to-day management

of the organisation (one year time frame)

A strategic plan enables management to

formulate an operational plan.

An operational plan should not be

formulated without reference to a strategic
plan

The strategic plan, once formulated, tends

not to be significantly changed every year

Operational plans may differ from year to

year significantly

The development of the strategic plan is a

responsibility shared and involves different
categories of stakeholders.

The operational plan is produced by the

chief executive and staff of the
organisation.

Question 7 a)
Decision- making can be defined as a selection of one course of action
from two or
more alternative courses of action. It involves a choice-making activity and the choice
determines our action or inaction. Decision-making is an indispensable part of life.
Innumerable decisions are taken by human beings in day-to-day life. In business
undertakings, decisions are taken at every step. All managerial functions viz., planning,
organizing, staffing, directing, coordinating and controlling are carried through decisions.
Decision-making is thus the core of managerial activities in an organisation.
A decision is an act of choice, wherein an executive forms a conclusion about what must
be done in a given situation. A decision represents a course of behaviour chosen from a
number of possible alternatives. -D.E. Mc. Farland
Steps in decision making

1. Identification of problems: the first step of decision making is identification of

problems. First of all, managers must identify the problem. The problem has to be found
and defined. Symptoms are identified and problems should be judged, symptoms are not
problems. They are warning signs of problems. So, managers should search for
symptoms for identification of problems. Such symptoms can be falling of sales, profit
etc. It is said that problem identified is half solved is identification of problem should be
effective.
2. Analysis of problem: after identification of problems, the problem should be
analyzed by the decision maker. It is the assembly of fact and clarifying it. Relevant
information must be collected and analyzed according to the complexity and nature of
problems.
3. Developing the alternative solution: after identification and analysis of problems
different probable solutions have to be developed which is known as developing the
alternative solutions. there may be many alternative past experience, expert opinion,
discussions etc which may be helpful to develop the alternative
4. Evaluation of best alternative: after developing the alternative solution evaluation
of best alternative is done. It is determined that which alternative has how much
advantage and disadvantages. in other words, alternatives are evaluated in so many
factors like cost factors, risk , benefits, facilities etc. therefore it is very important
5. Selection of best alternative: after evaluating alternative, the best alternative is to
be selected from various alternative. After developing alternative, the managers should
taste each of them by imagining things that he has already put in effect. He should try to
foresee the desirable consequences of adopting each alternative. It is done for best
selection. therefore it is very important
6. Implementation of best alternative: after selection of finest alternative, it must be
used in the organization effectively. Effectiveness of decisions in achieving the desired
goals depends upon its implementation. It they are not implemented effectively then
best results cant be obtained. Therefore proper implementation of best alternative is
necessary.
7. Review of implementation: it is the last step of decision making process. When the
implementation of best alternative is reviewed, the process of decision making is
finished. The result of implementation should be monitored and evaluated through which
effectiveness can be measured.

Question 7 b)
Learning is one of the most important activities in which humans engage. It is at the very
core of the educational process, although most of what people learn occurs outside of
school. For thousands of years, philosophers and psychologists have sought to
understand the nature of learning, how it occurs, and how one person can influence the
learning of another person through teaching and similar endeavors. Various theories of
learning have been suggested, and these theories differ for a variety of reasons. A
theory, most simply, is a combination of different factors or variables woven together in

an effort to explain whatever the theory is about. In general, theories based on scientific
evidence are considered more valid than theories based on opinion or personal
experience.
Although there are many different approaches to learning, there are three basic types of
learning theory: behaviorist, cognitive constructivist, and social constructivist. This
section provides a brief introduction to each type of learning theory. The theories are
treated in four parts: a short historical introduction, a discussion of the view of knowledge
presupposed by the theory, an account of how the theory treats learning and student
motivation, and finally, an overview of some of the instructional methods promoted by
the theory is presented.

Behaviorism

Cognitive

Social

Constructivism

Constructivism

View of

Knowledge is a

Knowledge systems of

Knowledge is

knowledg

repertoire of

cognitive structures are

constructed within

behavioral responses

actively constructed by

social contexts

to environmental

learners based on pre-

through interactions

stimuli.

existing cognitive

with a knowledge

structures.

community.

View of

Passive absorption of

Active assimilation and

Integration of students

learning

a predefined body of

accommodation of new

into a knowledge

knowledge by the

information to existing

community.

learner. Promoted by

cognitive structures.

Collaborative

repetition and positive Discovery by learners.

assimilation and

reinforcement.

accommodation of
new information.

View of

Extrinsic, involving

Intrinsic; learners set

Intrinsic and extrinsic.

motivatio

positive and negative

their own goals and

Learning goals and

reinforcement.

motivate themselves to

motives are

learn.

determined both by
learners and extrinsic
rewards provided by
the knowledge
community.

Implicatio

Correct behavioral

The teacher facilitates

Collaborative learning

ns for

responses are

learning by providing an

is facilitated and

Teaching

transmitted by the

environment that

guided by the teacher.

teacher and absorbed

promotes discovery and

Group work.

by the students.

assimilation/accommodati
on.

Sensory Stimulation Theory

Traditional sensory stimulation theory has as its basic premise that effective learning
occurs when the senses are stimulated (Laird, 1985). Laird quotes research that found
that the vast majority of knowledge held by adults (75%) is learned through seeing.
Hearing is the next most effective (about 13%) and the other senses - touch, smell and
taste account for 12% of what we know. By stimulating the senses, especially the visual
sense, learning can be enhanced. However, this theory says that if multi-senses are
stimulated, greater learning takes place. Stimulation through the senses is achieved
through a greater variety of colours, volume levels, strong statements, facts presented
visually, use of a variety of techniques and media.
Reinforcement theory
This theory was developed by the behaviourist school of psychology, notably by B.F.
Skinner earlier this century (Laird 1985, Burns 1995). Skinner believed that behaviour is
a function of its consequences. The learner will repeat the desired behaviour if positive
reinforcement (a pleasant consequence) follows the behaviour.
Positive reinforcement, or 'rewards' can include verbal reinforcement such as 'That's
great' or 'You're certainly on the right track' through to more tangible rewards such as a
certificate at the end of the course or promotion to a higher level in an organisation.
Negative reinforcement also strengthen a behaviour and refers to a situation when a
negative condition is stopped or avoided as a consequence of the bahaviour. Punishment,
on the other hand, weakens a behaviour because a negative condition is introduced or
experienced as a consequence of the behaviour and teaches the individual not to repeat
the behaviour which was negatively reinforced. A set of conditions is created which are
designed to eliminate behaviour (Burns, 1995, p.108). Laird considers this aspect of
behaviourism has little or no relevance to education. However, Burns says that
punishment is widely used in everyday life although it only works for a short time and
often only when the punishing agency is present.
Burns notes that much Competency Based Training is based on this theory, and although
it is useful in learning repetitive tasks like multiplication tables and those work skills that
require a great deal of practice, higher order learning is not involved. There is criticism of
this approach that it is rigid and mechanical.
Cognitive-Gestalt approaches
The emphasis here is on the importance of experience, meaning, problem-solving and
the development of insights (Burns 1995, p.112). Burns notes that this theory has
developed the concept that individuals have different needs and concerns at different
times, and that they have subjective interpretations in different contexts.
Holistic learning theory
The basic premise of this theory is that the 'individual personality consists of many
elements ... specifically ... the intellect, emotions, the body impulse (or desire), intuition
and imagination (Laird, 1985, p.121) that all require activation if learning is to be more
effective.

Facilitation theory (the humanist approach)

Carl Rogers and others have developed the theory of facilitative learning. The basic
premise of this theory is that learning will occur by the educator acting as a facilitator,
that is by establishing an atmosphere in which learners feel comfortable to consider new
ideas and are not threatened by external factors (Laird 1985.)
Other characteristics of this theory include:

a belief that human beings have a natural eagerness to learn,

there is some resistance to, and unpleasant consequences of, giving up what is
currently held to be true,

the most significant learning involves changing one's concept of oneself.

Facilitative teachers are:

less protective of their constructs and beliefs than other teachers,

more able to listen to learners, especially to their feelings,

inclined to pay as much attention to their relationship with learners as to the

content of the course,

apt to accept feedback, both positive and negative and to use it as constructive
insight into themselves and their behaviour.
Learners:

are encouraged to take responsibility for their own learning,

provide much of the input for the learning which occurs through their insights and
experiences,

are encouraged to consider that the most valuable evaluation is self-evaluation

and that learning needs to focus on factors that contribute to solving significant problems
or achieving significant results.
Experiential learning
Kolb proposed a four-stage learning process with a model that is often referred to in
describing experiential learning (McGill & Beaty 1995). The process can begin at any of
the stages and is continuous, ie there is no limit to the number of cycles you can make in
a learning situation. This theory asserts that without reflection we would simply continue
to repeat our mistakes. The experiential learning cycle:

(Brooks 1995, p.66)

Kolb's research found that people learn in four ways with the likelihood of developing one
mode of learning more than another. As shown in the 'experiential learning cycle' model
above, learning is:

through concrete experience

through observation and reflection

through abstract conceptualisation

through active experimentation