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KARNATAKA STATE OPEN UNIVERSITY

IN COLLABORATION WITH
BHARATH POSTGRADUATE COLLEGE

COMMON PAPER
MANAGERIAL TASKS AND BEHAVIOURAL
DYNAMICS

MBA
CODE: MBA-01
I SEMESTER

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Course Writer by:

MRS. M. CHITRA, M.B.A., M.PHIL, PGDHRM,


LECTURER, DEPARTMENT OF MANAGEMENT STUDIES,
SRM UNIVERSITY, KATTANKULATHUR,
CHENNAI - 603 203

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SEMESTER 1: SUBJECT CODE: MBA-01
SUBJECT: MANAGERIAL TASKS AND BEHAVIOURAL DYNAMICS

This course helps to prepare the students to understand the basic application of
managerial functions in day to day operations and activities of corporate and business
enterprises.
Objectives:
1. To understand the role and responsibilities of manager
2. To learn the process of management in corporate enterprises.
3. To comprehend the behavior of others and adapt to managerial success.
4. To make the students to equip the necessary changes and developments in an
organization.

STRUCTURE OF THE COURSE CONTENT


BLOCK I MANAGERIAL FUNCTION AND RESPONSIBILITIES
Unit 1: Manager Role, Responsibilities and Tasks
Unit 2: Managerial Functions and Their Characteristics
Unit 3: Evolution of Management and Schools of Thought
Unit 4: Social Responsibilities of Business

BLOCK II PLANNING AND ORGANIZING FUNCTION


Unit 1: Planning Nature, Types and Process
Unit 2: Decision Making and MBO
Unit 3: Organizing Principles and Structural Design
Unit 4: Delegation, Span of Control, Decentralization, Line and Staff
Authority

BLOCK III DIRECTING, CONTROLLING AND CO ORDINATION


Unit 1: Directing, Motivation, And Leadership
Unit 2: Controlling Nature and Techniques
Unit 3: Co Ordination The Essence of Management
Unit 4: Contemporary Trends in Management

BLOCK IV INTRODUCTIONS TO BEHAVIOURAL DYNAMICS


Unit 1: Evolution, Challenges and Opportunities of Organization
Behaviour
Unit 2: Personality and Behavioural Assessment
Unit 3: Emotions and Learning
Unit 4: Perceptions and Stress Management

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BLOCK V ORGANIZATIONAL BEHAVIOURAL DYNAMICS
Unit 1: Change Management
Unit 2: Organizational Climate
Unit 3: Management of Conflicts
Unit 4: Organizational Development Interventions

REFERENCES BOOKS:
1. Peter F Druker, Management Tasks and Responsibilities, Truman Talley Books, New
York.
2. Stephen P Robbins, Fundamental of Management,Pearson 2003
3. Koontz & Weirich, Essentials of Management,Tata Mcgraw Hill, New Delhi
4. Stephen P Robbins, Organization Behaviour, Prentice Hall Of India, 6th Edition
5. C B Gupta, Management Principles And Practice, Sultan Chand & Sons, New Delhi
6. L M Prasad, Organization Behaviour, Sultan Chand & Sons, New Delhi
7. Consumer Behaviour- Leon Schiffman, Lesslie Lazar Kanuk-
Pearson/PHI,8/E
8. Consumer Behaviour- Hawkins, Best, Coney-TMH,9/e,2004
9. Consumer Behaviour in Indian Perspective – Suja Nair – Himalaya
Publishers, 2004
10. Consumer Behaviour- Satish k Batra & S H H Kazmi, Excell Books
5. Customer Relationship Management- Peeru Ahamed & Sagadevan
Vikas Publishing

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UNIT - 1 : MANGER ROLE AND RESPONSIBILITIES AND TASKS

Structure

1.0 Aims And Introduction


1.1 Introduction
1.2 Manager’s Are Universal
1.3 Mangers Roles
1.4 Some Useful Books
1.5 Answer To Check Your Progress Exercise

1.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the roles to be played by an HR


manager and the various responsibilities and tasks to be performed by him.

1.1 INTRODUCTION

The primary goal of HR manager is to increase a worker’s productivity and a firm’s


profitability as investment in HRD improves a worker’s skill and enhances motivation. The
other goal of HR manager is to prevent obsolescence at all levels.

1. Strategic Manager: Strategic managers are the senior executives of an organization and
are responsible for its overall management. Major activities include developing the
company's goals and plans. Typically strategic managers focus on long-term issues and
emphasize the survival, growth, and overall effectiveness of the organization.

2. Tactical Managers: Tactical managers are responsible for translating the general goals
and plans developed by strategic managers into objectives that are more specific and
activities. These decisions, or tactics, involve both a shorter time horizon and the
coordination of resources. Tactical managers are often called middle managers, because
in large organizations they are located between the rategic and operational managers.
Today's best middle managers have been called "working leaders." They focus on
relationships with other people and on achieving results. They are hands-on, working
managers. They do not just make decisions, give orders, wait for others to produce, and
then evaluate results. They get dirty, do hard work themselves, solve problems, and
produce value.

3. Operational Managers: Operational managers are lower-level managers who supervise


the operations of the organization. These managers often have titles such as supervisor or
sales manager. They are directly involved with non-management employees,
implementing the specific plans developed with tactical managers. This role is critical in
the organization, because operational managers are the link between management and
non-management personnel. Your first management position probably will fit into this
category.

1.2 MANAGERS ARE UNIVERSAL:

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Managers work in all types of organizations, at all levels, and in all functional areas.
Large and small businesses, hospitals, schools and governments benefit from efficient and
effective management. The leaders of these organizations may be called executives,
administrators, or principals, but they are all managers and are responsible for the success or
failure of the organization. This success or failure is reflected in a manager's career. For
example, when a CEO saves a failing corporation, the board rewards this success with
bonuses and stock options. When a professional football team starts losing, the owner fires
the coach, not the team.

The Managerial Skills and roles

Managers need three basic sets of skills: technical, interpersonal, and conceptual.

1. Technical Skills

The skills that include knowledge of and proficiency in a certain specialized field
Managers need to be technically competent. They need to know how to plan, organize lead
and control. Line managers need this skill the most while top manager will need minimum of
technical skills.

2. Interpersonal Skills/Human Skills

Interpersonal skills include the ability to work well with other people both
individually and in a group. Mangers need good interpersonal skills, knowledge about human
behaviors and group processes, ability to understand the feelings, attitudes and motives of
others, and ability to communicate, clearly and persuasively. Human skills are very important
at each level of management.

3. Conceptual Skills

Conceptual skills include the ability to think and to conceptualize about abstract and
complex situations, to see the organization as a whole, and to understand the relationships
among the various subunits, and to visualize how the organization fits into its broader
environment. Conceptual skills include analytical ability, logical thinking, concept formation,
and inductive reasoning. They manifest themselves in things like good judgment, creativity,
and the ability to see the big picture. Top mangers/CEO needs this type of skill the most.

1.3 MANAGER’S ROLES:

a. Interpersonal roles

1. Figurehead—duties that are ceremonial and symbolic in nature

2. Leadership—hire, train, motivate, and discipline employees

3. Liaison—contact outsiders who provide the manager with information. These may be
individuals or groups inside or outside the organization.

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b. Informational roles

• Monitor—collect information from organizations and institutions outside their own

• Disseminator—a conduit to transmit information to organizational members

• Spokesperson—represent the organization to outsiders

c. Decisional roles

• Entrepreneur—managers initiate and oversee new projects that will improve their
organization’s performance

• Disturbance handlers—take corrective action in response to unforeseen problems

• Resource allocators—responsible for allocating human, physical, and monetary


resources

• Negotiator role—discuss issues and bargain with other units to gain advantages for
their own unit

Other roles of an Manager

Operational Roles

These roles are tactical in nature and include recruiting, training and developing
employees; coordinating HR activities with the actions of managers and supervisors
throughout the organization and resolving differences between employees.

• Recruiter: “Winning the war for talent” has become an important job of HR managers
in recent times in view of the growing competition for people possessing requisite
knowledge, skills and experience. HR managers have to use their experience to good
effect while laying down lucrative career paths to new recruits without, increasing the
financial burden to the company.

• Trainer developer, motivator: Apart from talent acquisition, talent retention is also
important. To this end, HR managers have to find skill deficiencies from time to time,
offer meaningful training opportunities, and bring out the latent potential of people
through intrinsic and extrinsic rewards which are valued by employees.

• Coordinator/linking pin: The HR manager is often deputed to act as a linking pin


between various divisions/departments of an organisation. The whole exercise is
meant to develop rapport with divisional heads, using PR and communication skills of
HR executives to the maximum possible extent.

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• Mediator: The personnel manager acts as a mediator in case of friction between two
employees, groups of employees, superiors and subordinates and employees and
management with the sole objective of maintaining industrial harmony.

• Employee champion: HR managers have traditionally been viewed as ‘company


morale officers’ or employee advocates. Liberalisation, privatisation and globalisation
pressures have changed the situation dramatically HR professionals have had to move
closer to the hearts of employees in their own self interest. To deliver results they are
now seriously preoccupied with:

o l Placing people on the right job.

o l Charting a suitable career path for each employee.

o l Rewarding creditable performance.

o l Resolving differences between employees and groups smoothly.

o l Adopting family-friendly policies.

o l Ensuring fair and equitable treatment to all people regardless of their


background.

o l Striking a happy balance between the employee's personal/professional as


also the larger organizational needs.

o l Representing workers’ issues, problems and concerns to the management in


order to deliver effective results HR managers have to treat their employees as
valuable assets. Such an approach helps to ensure that HR practices and
principles are in sync with the organisation’s overall strategy. It forces the
organisation to invest in its best employees and ensure that performance
standards are not compromised.

Strategic Roles

An organisation’s success increasingly depends on the knowledge, skills and abilities


of its employees, particularly as they help establish a set of core competencies (activities that
the firm performs especially well when compared to its competitors and through which the
firm adds value to its goods and services over a long period of time, e.g. ONGC 's oil
exploration capabilities and Dell's ability to deliver low cost, high-quality computers at an
amazing speed) that distinguish an organisation from its competitors. When employees’
talents are valuable, rare, difficult to imitate and organized, a firm can achieve sustained
competitive advantage through its people. The strategic role of HR management focuses
attention on how to enable ordinary employees to turn out extraordinary performance, taking
care of their ever-changing expectations. The key areas of attention in this era of global
competition include effective management of key resources (employees, technology, work
processes), while delivering cost effective, value enhancing solutions

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• Change agent: Strategic HR as it is popularly called now aims at building the
organisation’s capacity to embrace and capitalise on change. It makes sure that
change initiatives that are focused on creating high-performing teams, reducing cycle
time for innovation, or implementing new technology are defined, developed and
delivered in a timely manner. HR's role as a change agent is to replace resistance with
resolve, planning with results and fear of change with excitement about its
possibilities. HR helps an organization identify the key success factors for change and
assess the organisation’s strengths and weaknesses regarding each factor. It may not
decide what changes the organisation is going to embrace, but it would certainly lead
the process to make them explicit. In helping to bring about a new HR environment
there needs to be clarity on issues like who is responsible for bringing about change?
Why do it? What will it look when we are done? Who else needs to be involved?
,How will it be measured? How will it be institutionalized? How will it be measured?
How will it get initiated, developed and sustained?

• Strategic partner: HR’s role is not just to adapt its activities to the firm’s business
strategy, nor certainly to carry out fire-fighting operations like compensating
employees. Instead, it must deliver strategic services cost effectively by building a
competent, consumer-oriented work force. It must assume important roles in strategy
formulation as well strategy implementation. To this end, it must identify external
opportunities from time to time, develop HR based competitive advantages and move
in to close the gaps advantageously (like excellent training centre, design centre,
automation centre etc. which could be used by others as well). While implementing
strategies, HR should develop appropriate ways to restructure work processes
smoothly.

All managers are mostly concerned with following activities:

a) Staffing
b) Retention
c) Development
d) Adjustment
e) Managing change

HR Professionals’ Responsibilities:

Line manager

Authorized to direct the work of subordinates—they’re always someone’s boss. In


addition, line managers are in charge of accomplishing the organization’s basic goals.

Staff manager

Authorized to assist and advise line managers in accomplishing these basic goals. HR
managers are generally staff managers.

1.4 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York

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2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi
4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi
5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.
6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

1.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. What are the administrative roles of an HR Manager?


2. What are the different operational roles of a Manager?
3. What is meant by strategic partner?
4. Explain the managerial roles of an HR manager.

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UNIT - 2 : MANAGERIAL FUNCTIONS

Structure
2.0 Aims And Objectives
2.1 Introduction
2.2 Managerial Functions
2.3 Some Useful Books
2.4 Answer To Check Your Progress Exercise

2.0 AIMS AND OBJECTIVES

The main objective of the study is to understand the basic managerial functions and to
know its role in each and very aspects in HR department.

2.1 INTRODUCTION

The process of management involves the determination of objectives and putting them
into action. According to McFarland, "Management is the process by which managers create,
direct, maintain and operate purposive organizations through systematic, coordinated and
cooperative human effort".

According to G. R. Terry -"Management is a distinct process consisting of planning,


organizing, actuating and controlling, performed to determine and accomplish stated
objectives by the use of human beings and other resources".

2.2. MANAGERIAL FUNCTIONS

A manager is called upon to perform the following managerial functions:

(1) Planning
(2) Organising
(3) Staffing
(4) Directing
(5) Motivating
(6) Controlling
(7) Co-ordinating and
(8) Communicating.

1. Planning: When management is reviewed as a process, planning is the first function


performed by a manager. The work of a manager begins with the setting of objectives
of the organisation and goals in each area of the business. This is done through
planning. A plan is a predetermined course of action to accomplish the set objectives. It
is today's projection for tomorrow's activity. Planning includes objectives, strategies,
policies, procedures, programmes, etc. As it involves making choices, decision-making
is the heart of planning.

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It is a pre-determined course of action. Planning is determination of personnel
programs and changes in advance that will contribute to the organizational goals. In other
words, it involves planning of human resources requirement, recruitment, selection, training
etc. It also involves forecasting of personnel needs, changing values attitude and behavior of
employees and their impact on organization.

Planning Process

The planning process involves the following steps:

1. Analysis of External Environment: The external environment covers uncontrollable


and unpredictable factors such as technology, market, socio-economic climate,
political conditions etc., within which our plans will have to operate.

2. Analysis of Internal Environment: The internal environment covers relatively


controllable factors such as personnel resources, finance, facilities etc., at the disposal
of the firm. Such an analysis will give an exact idea about the strengths and weakness
of the enterprise.

3. Determination of Mission: The "mission" should describe the fundamental reason for
the existence of an organisation. It will give firm direction and make out activities
meaningful and interesting.

4. Determination of Objectives: The organizational objectives must be spelled out in


key areas of operations and should be divided according to various departments and
sections. The objectives must be clearly specified and measurable as far as possible.
Every member of the organisation should be familiar with its objectives.

5. Forecasting: Forecasting is a systematic attempt to probe into the future by inference


from known facts relating to the past and the present. Intelligent forecasting is
essential for planning. The management should have no stone unturned in reducing
the element of guesswork in preparing forecasts by collecting relevant data using the
scientific techniques of analysis and inference.

6. Determining Alternative course of Action: It is a common experience of all thinkers


that an action can be performed in several ways, but there is a particular way which is
the most suitable for the organisation. The management should try to find out these
alternatives and examine them carefully in the light of planning premises.

7. Evaluating Alternative Courses: Having sought out alternative courses and examined
their strong and weak points, the next step is to evaluate them by weighing the various
factors.

8. Selecting the Best: The next step - selecting the course of action is the point at which
the plan is adopted. It is the real point of decision-making.

9. . Establishing the sequence of activities: After the best programme is decided upon,
the next task is to work out its details and formulate the steps in full sequences.

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10. Formulation of Action Programmes: There are three important constituents of an
action plan:

 The time-limit of performance.


 The allocation of tasks to individual employees.
 The time-table or schedule of work so that the functional objectives are
achieved within the predetermined period.

11. Reviewing the planning process: Through feedback mechanism, an attempt is made
to secure that which was originally planned. To do this we have to compare the
actual performance with the plan and then we have to take necessary corrective
action to ensure that actual performance is as per the plan.

2. Organising: Organising includes putting life into the plan by bringing together
personnel, capital, machinery, materials etc., to execute the plans. While, planning
decides what management wants to do, organising provides an effective machine for
achieving the plans.

3. Staffing: Staffing involves filling the positions needed in the organisation structure by
appointing competent and qualified persons for the job. This needs manpower planning,
scientific selection and training of personnel, suitable methods of remuneration and
performance appraisal.

4. Directing: Direction involves managing managers, managing workers and the work
through the means of motivation, proper leadership, effective communication as well as
Co-ordination. A manager must develop the ability to command and direct others.

5. Motivating: Motivation is a managerial function to inspire and encourage people to take


required action. Motivation is the key to successful management of any enterprise.
Motivation can set into motion a person to carry out certain activity.

6. Controlling: Control is the process of measuring actual results with some standard of
Performance, finding the reason for deviations of actual from desired result and taking
Corrective action when necessary. Thus, controlling enables the realization of plans. A
Manager must adopt the following steps in controlling:

 Identify potential problems.


 Select mode of control.
 Evaluate performance in terms of planning.
 Spot significant deviations.
 Ascertain causes of deviations.
 Take remedial measures.

7. Co-ordination: Co-ordination is concerned with harmonious and unified action directed


toward a common objective. It ensures that all groups and persons work efficiently,
economically and in harmony. Co-ordination requires effective channels of
communication. Person-to-person communication is most effective for coordination.

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8. Communication: It means transfer of information and under-standing from person to
person. Communication also leads to sharing of information, ideas and knowledge. It
enables group to think together and act together.

2.3 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

2.4 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. What are the different types managerial functions?


2. Explain the planning process
3. Why controlling is important in an organization?
4. Explain the importance of directing in your own view.

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UNIT - 3 : EVOLUTION OF MANAGEMENT AND SCHOOL OF THOUGHTS

Structure

3.0 Aims and objectives


3.1 Introduction
3.2 Evolution of management theory
3.3 Various school of thoughts
3.4 Some Useful Books
3.5 Answer To Check Your Progress Exercise

3.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the concepts relating to school of
thoughts and the evolution of management thought. After reading this lesson we will be able
to understand

1. The Classical school


2. Human relation school
3. Decision theory school
4. Management science school
5. Systems theory school
6. Contingency theory school

3.1 INTRODUCTION

Management is an important factor in an organisation. Koontz 0' Donnel describes,


"No other area or human activity is importance as management". The manager is dynamic,
life giving element in every business, without his leadership, resources of production remain
resources; and never become production.

3.2 EVOLUTION OF MANAGEMENT THEORY

Management principles and practice developed and used by Roman catholic church
and - military organizations are more useful to modern management. Koontz w the first
academician attempted to classify various approaches into schools of management theory-
His work was advanced by 'John F. Mee, Joseph Litterer, W.W.Copper etc. Management
theory may be classified into 6 schools of thought viz

1. Classical school
2. Human relation school
3. Decision theory school
4. Management science school
5. Systems theory school
6. Contingency theory school

1. Classical School

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3.3 VARIOUS SCHOOL OF THOUGHTS

This includes 3 schools of management thought viz.,

a) Scientific management school


b) Management process school
c) Bureaucracy theory school of management

a) SCIENTIFIC MANAGEMENT SCHOOL

F.W. Taylor, the father o£ scientific management, replaced "rule of thumb" under
scientific management. . He made use of observation, measurement, experimentation,
analysis, rationality and reasoning as chief instruments for developing managerial system.
Basic components of scientific management are as follows:

1. Determination of standards of performance


2. Functional foremanship
3. Responsibilities of management
4. Differential piece work system of wage payment
5. Mental revolution

Significant contributions were made by the followers of Taylor, mainly gantt, Frank
and Lillian Gilbarth and Emerson. Taylor and his followers contributed efficient management
at production level. didn't produce systematic theory of management.

b) MANAGEMENT PROCESS SCHOOL

This was first developed by Fayol. It aimed at an overall analysis of management


process. In 1916 he published a book in French - administration industrially at Generale.
Fayol divided all activities of industrial undertaking into 6 groups viz., technical, commercial,
financial, security, accounting and managerial. Fayol. Identified management as important
activity, which consists of the functions like planning, organization, command, co-ordination,
control etc., and He profounder 14 principles of management. Fayol regarded these as
"universal" -applicable to all kinds of organization. He stated that technical ability as more
important at lower level of management and managerial ability at higher level of
management. The other contributors to process management theory are James D. Mooney,
Alan C. .Reiiey, R.C.Davies, Mary Parker follet, Oliver Sheldon etc.

c) BUREAUCRACY THEORY SCHOOL OF MANAGEMENT

This theory was developed by Max Weler. A bureaucratic organization is characterized by

1. Assignment of fixed duties


2. Hierarchy of authority and chain of command
3. Administration through rules
4. Impersonalized decision; making
5. Employment and promotion on the basis of merit
6. Office holding as a career
7. Fixed salary for employees

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Limitations of Classical Theories

 They view organization as a machine subject to certain immutable laws.

 They assume employees can be motivated by financial incentives alone and ignore
their social and psychological needs.

 They are based on the assumption that productivity is the only creterian of efficiency.

 Their overall approach is mechanistic. :

2. Human Relation School

Classical theorists either ignored or over simplified human factor. Human relation
school of management was developed as a result of findings of Hawthorne experiments. It
emerged from these researches that productivity, motivation to work and morale are related to
social organisation at work and psychological factors and not to physical factors. It also
showed that organisation is indeed a social system, a system of grapevines, informal status
system, rituals and mixture of logical, non-logical and illogical behavior.

Human relation school of thought was enriched by Kurt Lewin, Chris Argyris, Rensis
Likert, Douglas Me Oregor. Behaviourilists enriched management theory in areas of group
dynamics, motivation, communication and leadership, but failed to develop integrated theory
of management.

Limitations

Like classical theory, they also viewed organisation as closed system which is self
contained and isolated from its environment. Organisation is intact an open system, as they
are in, a continuous interaction relationship with their environment.

3. Decision Theory School

This was profounded by Simon and others. This theory focuses on the decision and
decision making process. Their approach concentrates on rational approaches to decision
making by selection of course of action from various possible alternatives. According to this
school of thought decisions should be taken at the right time and they should be related to the
situations and should be feasible in the context conceived. This theory is an out growth of the
theory of consumer's choice with which economists are more concerned. Decision making
though central to managing, is only an aspect of management, not the totality of management.
It is an attempt like the functioning of human body through the study of circulatory system.

4. Management Science School

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Management scientist Harvold Koontz consider management as a rational and logical
process and think that alt activities and operations of management can be expressed in terms
of mathematical relationships and models. In fact, operations research, probability theory etc.,
are only toots of management and not management itself. Complex problems of management
can be solved through quality control, inventory control, production scheduling, machine
loading, warehouse operation and resource allocation. But mathematics is only a tool rather
than a school.

5. Systems Theory School

This theory views organisation as an organic and open system which composed of
interacting and interdependent parts. As open systems, organizations are in a continuous
interaction and interdependent relationship with their environment composed of numerous
systems. As a system an organization is composed of a number of sub systems or parts, like

1. Production sub system


2. Supportive sub system
3. Maintenance sub system
4. Managerial sub system
5. Individual sub system
6. Informal groups

Ail this sub-systems operate in a interdependent and interactional relationship. Each


of these sub-system is in .itself a system composed of various sub systems which are also
interdependent and interactional relationship among themselves. :The various sub systems or
parts of an organisation are linked with each other through its communication network,
decision, authority-responsibility relationship, objectives, policies procedure and other
aspects of coordinating mechanism. Organisation as systems have a variety of goals. Chief
among them are survival, integration and adapation with environments and growth. The.
System theory management has been regarded as too abstract to provide useful guidelines to
practicing managers.

6. Contingency Theory School

This theory rejects the universality thesis and emphasis that there is no best way to
manage. It focuses on the interrelationship within and among subsystems as well as between
the organisation and its environment. It emphasizes the multivariate nature of organisations
and attempts to understand how organisations operate under varying conditions and in
specific situations. It regards management as situational. Management is situational and
managers should design organisations,; define objectives, formulate strategies, policies, plans
in accordance with prevailing environmental conditions. Management policies and practice,
to be effective, respond to changes in environmental forces. The success of management
depends on ability to cope with environment. Situation decides the pattern of organisation
and management most appropriate in practice. All managerial actions will depend upon
particular prevailing circumstances and situational factors.

3.4 SOME USEFUL BOOKS

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1.Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York
2.Stephen P.Robbins, fundamental of management, Pearson 2003
3.Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi
4.Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi
5.C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.
6.L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

3.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Explain how the evolution of management theory came.


2. List the various school of thoughts
3. Explain classical school theory
4. Explain the Classical school theory
5. Discuss in detail the following a) Human relation school b) Decision theory school
c)Management science school d) Systems theory school
6. Explain about Contingency theory school

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UNIT- 4 : SOCIAL RESPONSIBILITIES OF BUSINESS

Structure
4.0 Aims And Objectives
4.1 Introduction
4.2 Social Responsibility
4.3 Concept Of Social Responsibility
4.4 Responsibility Towards Different Interest Groups
4.5 Some Useful Books
4.6 Answer To Check Your Progress Exercise

4.0 AIMS AND OBJECTIVES

The main objective of this lesson is to understand the basic responsibilities a business
should have and also the concept towards different interest groups and business groups.

4.1 INTRODUCTION

Business is an economic activity, which is carried out on a regular basis to earn profit.
However, you must have seen businessmen spending money on different aspects, which is
not going to give them any profit straightway. For example, you must have seen businessmen
maintaining and developing gardens and parks on streets and squares in cities. Some
businessmen engage themselves in research for improving the quality of products; some
provide housing, transport, education and health care to their employees and their families.
Let us learn more about why businessmen engage themselves in such activities.

4.2 SOCIAL RESPONSIBILITY

In your daily life, you perform a number of activities. For example, brushing your
teeth, listening to your parents, showing respect to elders obeying traffic rules on road etc.
Now Business Studies why do you perform all these activities? It is because you live in a
family as well as in a society and the members of your family as well as the society want you
to do all of them. They do several things for you and expect something from you, which you
must do. The expectations of the family or society become your obligations, which you need
to fulfill. For example, taking care of your parents or children, keeping the road clean by not
throwing garbage on it, etc. There are also obligations towards yourself, which you need to
fulfill. For example, taking food timely, going to sleep early at night, etc. that keep you fit
and takes care of your health. Now you fulfill all these obligations by performing certain
activities which are called your responsibilities. Any responsibility you have, particularly
towards members of the society with whom you interact or towards the society in general, are
called your social responsibility.

This is true in case of business also. As we know, every business operates within a society. It
uses the resources of the society and depends on the society for its functioning. This creates
an obligation on the part of business to look after the welfare of society. So all the activities
of the business should be such that they will not harm, rather they will protect and contribute
to the interests of the society. Social responsibility of business refers to all such duties and

20
obligations of business directed towards the welfare of society. These duties can be a part of
the routine functions of carrying on business activity or they may be an additional function of
carrying out welfare activity.

4.3 CONCEPT OF SOCIAL RESPONSIBILITY

We all know that people engage in business to earn profit. However, profit making is
not the sole function of business. It performs a number of social functions, as it is a part of
the society. It takes care of those who are instrumental in securing its existence and survival
like- the owners, investors, employees, consumers and government in particular and the
society and community in general. So, every business must contribute in some way or the
other for their benefit. For example, every business must ensure a satisfactory rate of return to
investors, provide good salary, security and proper working condition to its employees, make
available quality products at reasonable price to its consumers, maintain the environment
properly etc.

However, while doing so two things need to be noted to view it as social


responsibility of business. First, any such activity is not charity. It means that if any business
donates some amount of money to any hospital or temple or school and college etc., it is not
to be considered as discharge of social responsibility because charity does not imply fulfilling
responsibility. Secondly, any such activity should not be such that it is good for somebody
and bad for others. Suppose a businessman makes a lot of money by smuggling or by
cheating customers, and then runs a hospital to treat poor patients at low prices his actions
cannot be socially justified. Social responsibility implies that a businessman should not do
anything harmful to the society in course of his business activities.

Social Responsibilities of Business

Thus, the concept of social responsibility discourages businessmen from adopting


unfair means like black-marketing, hoarding, adulteration, tax evasion and cheating
customers etc. to earn profit. Instead, it encourages them to earn profit through judicious
management of the business, by providing better working and living conditions to its
employees, providing better products, after sales-service, etc. to its customers and
simultaneously to control pollution and conserve natural resources.

Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps
to satisfy the expectation of the different interest groups. As you have already learnt, the
interest groups may be owners, investors, employees, consumers, government and society or
community. But the question arises, why should the business come forward and be
responsible towards these interest groups. Let us consider the following points:

1. Public Image - The activities of business towards the welfare of the society earn
goodwill and reputation for the business. The earnings of business also depend upon
the public image of its activities. People prefer to buy products of a company that
engages itself in various social welfare programmes. Again, good public image also
attracts honest and competent employees to work with such employers.

21
2. Government Regulation - To avoid government regulations businessmen should
discharge their duties voluntarily. For example, if any business firm pollutes the
environment it will naturally come under strict government regulation, which may
ultimately force the firm to close down its business. Instead, the business firm should
engage itself in maintaining a pollution free environment.

3. Survival and Growth -Every business is a part of the society. So for its survival and
growth, support from the society is very much essential. Business utilizes the
available resources like power, water, land, roads, etc. of the society. So it should be
the responsibility of every business to spend a part of its profit for the welfare of the
Society.

4. Employee satisfaction - Besides getting good salary and working in a healthy


atmosphere, employees also expect other facilities like proper accommodation,
transportation, education and training. The employers should try to fulfill all the
expectation of the employees because employee satisfaction is directly related to
productivity and it is also required for the long-term prosperity of the organization.
For example, if business spends money on training of the employees, it will have
more efficient people to work and thus, earn more profit.

5. Consumer Awareness - Now-a-days consumers have become very conscious about


their rights. They protest against the supply of inferior and harmful products by
forming different groups. This has made it obligatory for the business to protect the
interest of the consumers by providing quality products at the most competitive price.

4.4 RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS

After getting some idea about the concept and importance of social responsibility of
business let us look into the various responsibilities that a business has towards different
groups with whom it interacts. The business generally interacts with owners, investors,
employees, suppliers, customers, competitors, government and society. They are called as
interest groups because by each and every activity of business, the interest of these groups is
affected directly or indirectly.

i. Responsibility towards owners

Owners are the persons who own the business. They contribute capital and bear the
business risks. The primary responsibilities of business towards its owners are to:

a. Run the business efficiently.


b. Proper utilisation of capital and other resources.
c. Growth and appreciation of capital.
d. Regular and fair return on capital invested.

ii. Responsibility towards investors

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Investors are those who provide finance by way of investment in debentures, bonds,
deposits etc. Banks, financial institutions, and investing public are all included in this
category. The responsibilities of business towards its investors are :

a. Ensuring safety of their investment,


b. Regular payment of interest,
c. Timely repayment of principal amount.

iii. Responsibility towards employees

Business needs employees or workers to work for it. These employees put their best
effort for the benefit of the business. So it is the prime responsibility of every business to take
care of the interest of their employees. If the employees are satisfied and efficient, then the
only business can be successful. The responsibilities of business towards its employees
include:

a. Timely and regular payment of wages and salaries.


b. Proper working conditions and welfare amenities.
d. Opportunity for better career prospects.
e. Job security as well as social security like facilities of provident fund, group
insurance, pension, retirement benefits, etc.
f. Better living conditions like housing, transport, canteen, crèches etc.
g. Timely training and development.

iv. Responsibility towards suppliers

Suppliers are businessmen who supply raw materials and other items required by
manufacturers and traders. Certain suppliers, called distributors, supply finished products
to the consumers. The responsibilities of business towards these suppliers are:

a. Giving regular orders for purchase of goods.


b. Dealing on fair terms and conditions.
c. Availing reasonable credit period.
d. Timely payment of dues.

v. Responsibility towards customers

No business can survive without the support of customers. As a part of the


responsibility of business towards them the business should provide the following facilities:

a. Products and services must be able to take care of the needs of the customers.
b. Products and services must be qualitative
c. There must be regularity in supply of goods and services
d. Price of the goods and services should be reasonable and affordable.
e. All the advantages and disadvantages of the product as well as procedure to use the
Products must be informed do the customers.
f. There must be proper after-sales service.
g. Grievances of the consumers, if any, must be settled quickly.
h. Unfair means like under weighing the product, adulteration, etc. must be avoided.

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vi. Responsibility towards competitors

Competitors are the other businessmen or organizations involved in a similar type of


business. Existence of competition helps the business in becoming more dynamic and
innovative so as to make itself better than its competitors. It also sometimes encourages the
business to indulge in negative activities like resorting to unfair trade practices. The
responsibilities of business towards its competitors are i. not to offer exceptionally high sales
commission to distributors, agents etc.

ii. not to offer to customers heavy discounts and /or free products in every sale.
iii. not to defame competitors through false or ambiguous advertisements.

vii. Responsibility towards government

Business activities are governed by the rules and regulations framed by the
government. The various responsibilities of business towards government are:

a. Setting up units as per guidelines of government


b. Payment of fees, duties and taxes regularly as well as honestly.
c. Not to indulge in monopolistic and restrictive trade practices.
d. Conforming to pollution control norms set up by government.
h. Not to indulge in corruption through bribing and other unlawful activities.

viii. Responsibility towards society

A society consists of individuals, groups, organizations, families etc. They all are the
members of the society. They interact with each other and are also dependent on each other in
almost all activities. There exists a relationship among them, which may be direct or indirect.
Business, being a part of the society, also maintains its relationship with all other members of
the society. Thus, it has certain responsibilities towards society, which may be as follows:

1. To help the weaker and backward sections of the society


2. To preserve and promote social and cultural values
3. To generate employment
4. To protect the environment
5. To conserve natural resources and wildlife
6. To promote sports and culture
7. To provide assistance in the field of developmental research on education,
medical science, technology etc.

Following are the various responsibilities of business towards the different interest group as
discussed above.

i. Protection of environment.
ii. Better living conditions like housing, transport, canteen, crèches etc.
iii. Promotion of sports and culture.
iv. Opportunity for better career prospects
v. Regular supply of goods and services
vi. Proper working conditions and welfare amenities
vii. Goods and services at reasonable and affordable price.

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Viii Prompt after sales services.
ix. Conservation of natural resources and wildlife.

4.5 SOME USEFUL BOOKS


1.Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2.Stephen P.Robbins, fundamental of management, Pearson 2003
3.Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi
4.Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi
5.C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.
6.L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

4.6 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Why social responsibilities is so important in a business?


2. What are the different ways in which social responsibilities to be followed in a
business?

3 Explain how to have Responsibility Towards Different Interest Groups.

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UNIT- 5 : PLANNING NATURE, TYPES AND PROCESS

Structure

5.0 Aims And Objectives


5.1 Introduction
5.2 Nature Of Planning
5.3 Importance Of Planning
5.4 Types Of Planning
5.5 Some Useful Books
5.6 Answer To Check Your Progress Exercise

5.0 AIMS AND OBJECTIVES

The main objective of this lesson is to understand the

1. Nature of planning
2. Importance of planning
3. Types of planning

5.1 INTRODUCTION

Planning

Plans are methods for achieving a desired result. Goals or objectives are specific
results you want to achieve. Planning is thus “the process of establishing objectives and
courses of action prior to taking action.”

What is planning concerned with?

Planning provides a sense of purpose and direction. It is a comprehensive framework


for making decisions in advance. It also facilitates the organizing, leading, and controlling
functions of management. Planning: allows you to make your decisions ahead of time, it
helps you to anticipate the consequences of various courses of action, it provides direction
and a sense of purpose, it provides a unifying framework against which to measure decisions,
and thus helps you avoid piecemeal decision making. Planning also helps identify potential
opportunities and threats, and facilitates control. It is concerned with the end (what is to be
done) as well as with means (how it is to be done). Is planning really needed? If…
organizations… never faced changes in the environment, there would have been no need for
planning. Planning is one of the functional areas of HR.

Planning is the first managerial function to be performed in the process of


management. Planning is deciding in advance the objectives of the organisation tin short run
as well as in long run and means for attaining them. It is the most fundamental function of
management. It is a predetermined course of action to achieve a specified aim or goal.
Planning is a rational action mixed with a little thought. Planning is a primary function.

26
Planning concentrates on setting and achieving the objectives of an organisation. It governs
survival, growth and prosperity of any organisation in a competitive and ever changing
environment. The planning function is performed by managers at every level. It lies as the
basis of all other managerial functions including organizing, staffing, directing, coordinating
and control.

5.2 NATURE OF PLANNING

1. Planning is a continuous process

It deals with future uncertainties. Planning is a continuous process and no plan is


final. It is always subject to revision. It is an interim report. A manager should constantly
watch the progress of his plans. He must constantly monitor the conditions, both within and
outside the organization, to determine if changes are required.

2. It is an intellectual process

According to Koontz and o' Donnel, planning is an intellectual process involving


mental exercise, fore seeing future developments, making forecasts and the determination of
best course of action.

3. Focus on objectives:

A plan must concentrate on accomplishing certain objectives. It lays down the ends
and means to achieve them.

4. Primacy of planning

Planning is the first of the managerial functions. It precedes all other management
functions. It facilitates organizing, directing, leading and motivating as well as controlling. It
is involved in all management functions.

5. Planning is pervasive

Planning is a pervasive activity covering all the^ levels of enterprise. While top
management is concerned with strategically planning, the middle management and lower
management are concerned with administrative planning and operational planning
respectively.

6. Planning is a selective process

Out of the many alternatives one is chosen which suits the enterprise most and from
which results are expected. "Planning is concerned with decision making relating to’

a)What is to be done
b) How it is to be done
c) When it is to be done
d) by whom it is to be done

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7. Planning is flexible

The process of planning should be adaptable to changing environmental conditions.


Koontz and O’Donnell states that "effective planning requires continual checking on events
,and forecasts and the redrawing of plans to maintain a course towards a designed goal."

8. Planning, is an integrated process

Planning involves not only the determination of objectives but also the formulation of
sound policies, programmers, procedures and strategies for accomplishment of these
objectives. It is the 'first of the managerial functions and facilitates all other functions like
organising, staffing, directing and controlling.

9. It is a decision making process

Decision making is an integral part of planning. It is defined as a process of choosing


among alternatives. Decision making will occur at many points in the planning process.

10. It is directed towards efficiency, economy and accuracy

Efficiency of plan is measured by its contribution to the objectives as economically as


possible. We must have the maximum results at minimum cost. Planning also focuses on
accurate forecasts. The guiding principle of a good plan is maximum output and profit at the
minimum cost.

5.3 IMPORTANCE OF PLANNING

Planning offsets future uncertainty and change A business concern has to work in an
environment which is uncertain and ever changing. Planning helps the manager in carving
out the future course of action and this brings higher degree of certainty and order into the
organisation.

2. It tackles increasing complexity is modern business

Modern business requires large .number of different specialists. This makes it


necessary for the management to depend on planning to get clear idea of what is to be done,
when it is to be done, where it is to be done and how it is to be done.

3. It helps in co-ordination

Planning, through its defined objectives, well publicized policies, programme and
procedures helps the management in the co-ordination process. Plans are selected courses
along which the management desires to co-ordinate group action.

4. It helps in exercising effective control

Planning is clearly a prerequisite for effective controlling. It is utterly foolish to think


that controlling could be accomplished without planning. Without planning, there is no
predetermined understanding of the desired performance.

28
5. It helps in proper utilization of Company's Resources

Planning helps for the proper utilization of available scarce resources for the
achievement of company's objectives at the cheapest and best manner. Since, every thing is
well planned.

6, It facilitates unity of action.

Cinder planning, policies, procedures and programme are pre-determined and every
decision and action should be within the frame work of predetermined policies, programme
and procedures. This facilitates unity of action and also avoids confusion and
misunderstanding at any level.

7. It helps in avoiding Business failures.

As planning involves the selection of best objectives, unity of action, co-ordination of


activities, economy in operation and Off-setting future uncertainty and change, there is
possibility of avoiding business failures.

8. Secures economy and efficiency in operation.

Planning facilitates optimum utilization available resources. It helps to reduce the cost
and to increase economy. It improves the competitive strength of organisation. Planning
results in the use of most efficient methods of work. A good plan not only optimizes
productivity, but provides satisfaction to those who implementing it.

9. Guides decision making.

The success of an organisation depends to a: great extent on the type of decisions that
are made at various" levels of an organisation. Decision making involves making a choice
from the various available alternatives after evaluating each of these. By predicting future,
planning helps in taking future oriented decision.

10. Focuses attention on objectives and results.

Every organisation exists to achieve certain objectives. Planning concentrates


attention on the dominant goals of the organisation. Planning makes objectives concrete and
tangible.

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5.4 TYPES OF PLANNING

Long Range and Short Range Planning

Long range planning is called as strategic planning. This has a longer time horizon. It
is concerned with future direction of the enterprise. Long range planning 13 more important
because it has far reaching effects. The management and special planning officials are
involved in this. This involves tentative determination of enterprise's broad goals to be
achieved and the strategies to be adopted for the purpose, over a fairly long period of time,
say five to ten years. Long-range plan tend to be nebulous and tentative as it deals with more
distant future which is more uncertain and also more difficult to predict. These goals
generally relate to sales and market share, the range of new products and market to be
pursued, the lines of business, which the enterprise should go in etc.

Short range plan is called as operating plans, consisting a period of one to two years.
They constitute the steps toward the implementation of long range plans- Mostly short rangte
plans are in the form of budgets. These plans are normally subdivided into monthly or weekly
plans for control purposes. This plan dealt with price adjustments, buying for next season,
handling day to day problems of sales force etc. This plan is entrusted to middle and lower
level management. Budgeted performance is compared with actual performance, and if there
is any variance, corrective steps would be taken up.

Functional and Corporate Planning

Functional plan relate to segmental plan like manpower, financial, marketing,


planning etc. It determines the scope and activities of particular department. These plans are
formulated by middle level management and approved by top management. This planning is
segmental and reactive in nature. Corporate planning is the composite of all functional plans
i.e., aggregate. Planning for the company as a whole is called corporate planning. It lays
down objectives, strategies and policies for the entire organisation. Corporate planning is
done at top level management. It is very broad and general in nature. The purpose of
corporate planning is to determine long term goals of any enterprise and to generate plans to
achieve these goals.

Group or Sectional Planning

This refers to planning for specific groups or sections with in a department or


division. Such plans are prepared to implement departmental or divisional plans. Sectional
plan are formulated at operating level of management.

Environment For Effective Planning

Managers may use the following measures in order to overcome the limitations and to
make planning more effective.

1. Climate for planning

A climate conducive to planning should be established throughout the organisation.


Every superior manager should remove obstacles to planning and provide facilities for

30
planning. This can be done by setting clear goals, establishing realistic planning premises and
ensuring information and appropriate staff assistance at all levels.

2. Clear cut objectives

The existence of clear and specific objectives is essential for efficient planning. The
overall objectives of the enterprise serve as guidelines for preparing plans at different levels.

3. Management information system

An efficient system should be developed -so that relevant facts and figures are made
available to the managers at right time.

4. Careful premising

Planning premises constitute the frame work within which planning is done. All
relevant factors should be considered while formulating planning premises. Accurate
forecasting is essential for correct premising. Availability of resources should be ensured
before a future course of action is charted out.

5. Top management support

Top management is responsible for the success or failure of the entire organisation.
Hence, planning can be effective only it has the initiative and support at top level. Top
executives should vigorously review subordinate plans and their performance.

6. Participation in planning

"Planning can be collaborative or joint process, Planning is likely3 to be pragmatic


and efficient when managers at alt levels are given an opportunity to make suggestions.
These consultations will improve their commitment to 'planning. Planning committee at
various levels may be constituted. Another participative planning is 'grassroots budgeting'-
where budgeting process starts in lower level and carried upward to top level.

7. Sound communication

Successful implementation of plans requires complete understanding and motivation


on the part of employees at all levels. This is possible when various plans are communicated
clearly in time.

8. Integration of plans

Many times sound long term plan fails because there is lack of integrated planning.
Short term operational plans are the means of implementing long term plans. Hence, different
plans should be properly balanced. Planning must be flexible and well organised.

31
9. Open system approach

Plans should be kept upto date through periodic review and revision. _Hence,
managers must continuously monitor the environmental changes and their impact on
enterprise; An element of flexibility should be introduced in planning.

10. Cost benefit analysis

The planners should conduct from time to time a cost benefit analysis, to ensure that
the benefits of planning are more than the cost involved. Any plan which is not worth its cost
should be discarded.
5.5 SOME USEFUL BOOKS
1. Peter F.Drucker, management tasks and responsibilities Truman
Talley books , New York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi
4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi
5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.
6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

5.6 ANSWER TO CHECK YOUR PROGRESS EXERCISE


1. Explain the nature of planning
2. Write about the importance of planning
3. Explain in detail the different types of planning in an organization.

UNIT-6 :DECISION MAKING

32
Structure
6.1 Aims and objectives
6.2 Introduction
6.3 Definition
6.4 Characteristics
6.5 Rationality in Decision Making
6.6 Classification of Decisions
6.7 Decision Making process
6.8 Types of managerial decision
6.9 let us sum up
6.10 Key words
6.11 Some Useful Books
6.12 Answer To Check your Progress EXERCISE

6.1 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the concepts relating to definition,
characteristics, classification, process and its types.

6.2 INTRODUCTION

Decision making is the important function in all management orgnization. If decision


were not taken properly in right time, the organization may be thrown to the deep level
where it may not be in position to withstand its future in a successful way. Decision-
making is a complex mental exercise involving use of careful thinking and deliberation,
analysis and verification.

6.3 Definition

 “ The work a manger performs to arrive at conclusions and judgment. ”

- “ Allen “
 “ Decision–making is a process of selection from a set of alternative courses
of action which is thought to fulfill the objective of the decision-problem more
satisfactorily than others ”

- “ Haynes & Massie “

6.4 CHARACTERISTICS

 It is goal-oriented activity.
 It is aimed at achieving certain stated goals of the organization.
 It is a process of selection from amongst alternative courses of action,
envisages two or more alternatives from which a final choice can be made.
 It involves commitment in the face of uncertainty.

33
 Decision-making is a complex mental exercise involving use of careful
thinking and deliberation, analysis and verification.
 It can be both positive & negative. It may just be a decision not to decide.
 It involves a time dimension and a time lag.
 It is situational. A manager may take one decision under particular
circumstances and another in a different situation.

It is an on-going activity. A manager has to continuously make decision of one type or the
other. It is a continuous process.

6.5 RATIONALITY IN DECISION MAKING :-

The concept of rationality is defined in terms of objective and intelligent action. There are
two contrasting views of models of decision making with each model using degree of
rationality.

 Economic Model :
- Economic rationality implies that decision making tries to
maximise the values in a given situation by choosing the most suitable course of
action.
- A rational business decision is one which effectively and
efficiently assures the attainment of aims for which the means are selected.

 Bounded Rationality :
- It explains the decision making behaviour in real life.
- Under a model, for a variety of reasons, complete rationality is not
always possible.
- That is why people prefer to take satisfactory decisions instead of
ideal or optimum decision.
- In reality, they confine themselves to few important alternatives
which have limited risks combined with favourable consequences.

Evaluation of Alternatives :-
 Quantitative and Qualitative Factors :

- Quantitative, such as fixed & operating costs


- Qualitative, such as quality of labour relations, the risk of technological changes
& the domestic (or) international political climate need to be taken in to
consideration
- Attention has to given to both quantitative & qualitative factors when comparing
alternatives

Marginal Analysis :
- It is useful to evaluate the given alternatives
- The objective is to maximise profits, goal will be reached, when the additional
revenues & additional cost are equal
- Marginal Analysis can be used by comparing factors other than costs & revenues.

34
 Cost effectiveness Analysis :
- Is an improvement over the marginal analysis technique.
- It seeks the best ratio of benefits & costs
- Finding the least costly way of reaching an objective
- A technique for choosing the best plan when the objectives are less specific than
sales, costs or profits
- It focuses on the results of a program
- It involves a comparison of the alternative in terms of the overall advantage
- It helps weigh the potential benefits of each alternative against its potential cost.

Selecting an Alternatives :- (OR 3 Approaches)

 Experience
- Relying on past experience
- The experienced managers are familiar with the system requirements & have
knowledge to decide on a particular problem
- Good decisions must be evaluated against future events
 Experimentation
- Among alternatives is to try one of them & see what happens.
- It is to be most expensive of all techniques
- Some more doubts left even after experimentation
- Should be used only after considering other alternatives

 Research & Analysis

- Means solving a problem by trust comprehending it


- Search for relationships among more critical of the variables, constraints &
Premises
- This is to develop a model simulating the problem

6.6 CLASSIFICATION OF DECISIONS :-

 Programmed & Non-Programmed Decisions :


It deals with routine or repetitive type of problem.
There are established procedures to take decisions.
Middle or low legal executives take this type of decision.
 Non-Programmed Decisions :
It deals with unique or unusual or non-routine problems.
There is no established procedure.
This type of decision is taken by top level executives.
 Organisational & Personal Decisions :
- Taken by an individual in his official capacity to further the interest
of the organisation known as organisational decisions.
- This is based on rationality, judgement and experience.
- Such decisions affect the functioning of the organisation directly.

Key to Success in Decision-Making :-

35
 Be problem-oriented not just solution-oriented.
 Set decision-making goals.
 Always check the accuracy of the information
 Don’t’ be afraid to develop innovative alternatives
 Be flexible
 Gain commitment for decisions at an early state.
 Evaluate and follow up the decision.

Decision-making describes the process by which a course of action is selected to deal with a
specific problem. The success of an organization depends greatly on the decisions of
managers. There are two major types of models used by managers to make decisions -

(1) rational model


(2) non-rational models.

In the rational model, managers engage in rational decision-making processes. At the time of
decision-making, they possess as well as understand all the information that is relevant to
their decision. In contrast, non-rational models of managerial decision-making suggest that
limitations of information-gathering and information-processing make it difficult for
managers to make optimal decisions. The three non-rational models of decision-making
discussed in the chapter are: satisfying, incremental, and garbage-can models.

6.7 DECISION MAKING PROCESS

Any decision-making process contains seven basic steps :


(1) Identifying the problem
(2) Identifying resources and constraints
(3) Generating alternative solutions,
(4) Evaluating alternatives,
(5) Selecting an alternative,
(6) Implementing the decision,
(7) Monitoring the decision.

 Defining the Problem:


- The first step in decision-making is that of recognizing &
identifying the problem.
- A written problem statement should be prepared, specifying the
nature and magnitude of the problem.
- In order to identify the real problem, a manager should look
beyond the symptoms and take an overall view of the situation.
- Clear understanding of the problem is necessary.

 Analyzing the Problem:


- Analysis of the problem involves determining its causes and scope.
- It should be determine the strategic factor relevant to the decision.
- The quality of decision will depend upon the quality of information
used.

36
 Developing Alternative Solutions:
- After the problem is analyzed, the decision maker has to develop
alternative solutions for the problem.
- A problem can be solved in several ways all of which are not
equally good.
- Best alternatives are considered before a course of action is
selected.

 Evaluating the alternatives:


- The various developed alternatives are compared and scrutinized to
identify the pros and cons of each.
- Before evaluation, the criteria for evaluation should be specified.
- The criteria such as Risk, Economy of effort (Cost, time & effort
involved in each alternative), Timing (Whether the situation is urgent or not) &
Limitation of resources (Resource and other factors strategic to the decision.

 Selecting the Best Solution:


- Selecting the best solution among the alternatives is based on some
important factors, such as Experience, Experimentation & Research and analysis.

 Implementing the Decision:


- After a decision is taken, it needs to be put into practice. It involves
several steps.
- First, the decision should be communicated to all concerned
employees.
- Secondly, responsibility for carrying out the decision is assigned to
specific individuals.
- Thirdly, any resistance to the decision has to be overcome.
- Fourthly, procedures should be developed for executing the
decision.
- Lastly feedback mechanisms are developed to check on the
progress of implementation.

 Monitoring the decision


- Once the decision has been put into practice, actual results of
action should be compared with the expected results.
- If there is any deviation the same should be analysed to identify the
causes, wherever necessary the decision should be modified.
- An effective feedback is necessary for determining the
effectiveness of implementation.

6.8 TYPES OF MANAGERIAL DECISION

Managerial decisions are of two types – programmed decisions, and non-programmed


decisions. Programmed decisions involve simple, common, frequently occurring problems.
They have well-established and understood solutions. Non-programmed decisions deal with
unusual or exceptional problems. Based on the degree of certainty involved, every decision-
making situation falls into one of three categories: (i) certainty, (ii) risk, and (iii) uncertainty.
In conditions of certainty, the decision-maker knows with reasonable certainty what the

37
alternatives are, what conditions are associated with each alternative and the outcome of each
alternative. Under a state of risk, the decision-maker has incomplete information about
available alternatives but has a good idea of the probability of particular outcomes of each
alternative. Conditions of uncertainty exist when the future environment is unpredictable and
everything is in a state of flux.

The decision-maker is not aware of all available alternatives, the risks associated with each
alternative, or the consequences of each alternative or their probabilities. In order to carry out
managerial functions effectively, managers at all levels require vital information with speed,
brevity, precision and economy. A management information system is a computer-based
information system that gathers comprehensive data, analyzes and summarizes it, and
provides it in a form that is of value to functional managers.
A decision support system is an interactive computer system that can be easily accessed and
operated by people who are not computer specialists, and who use this system to help them in
planning and decision-making. Major decisions in organizations are often made by groups
rather than a single individual. The most common forms of group decision-making are:
interacting groups, Delphi groups, and nominal groups. Finally, the different decision-making
techniques such as marginal analysis, financial analysis, break-even analysis, ratio analysis
and operations research techniques are also present.

6.9 LET US SUM UP

Decision making is the important function in all management orgnization. If decision


were not taken properly in right time, the organization may be thrown to the deep level
where it may not be in position to withstand its future in a successful way. Decision-
making is a complex mental exercise involving use of careful thinking and deliberation,
analysis and verification.
6.10 KEY WORDS
Decision making process

6.11 SOME USEFUL BOOKS


1. Define decision making and explain the characteristics of decision making.
2. What is rationality in decision making?
3. What are the classification of decision making?
4. Explain the process of decision making.5.
5. Discuss about the managerial decision types.

6.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

38
UNIT:7 ORGANIZING PRINCIPLES AND STRUCTURAL DESIGN

Structure
7.0 Aims And Objectives
7.1 Introduction
7.2 Organization As A Process
7.3 Organization As A Structure
7.4 Principles Of Organization (Features Of Good Organization Structures)
7.5 Formal And Informal Organization
7.6 Advantages Of Informal Organization To Members
7.7 Disadvantages Of Informal Organization
7.8 Types (Forms) Of Organization:
7.9 Some Useful Books
7.10.Answer To Check Your Progress Exercise

7.0 AIMS AND INTRODUCTION

The main objectives of the lesson is to understand the following

1. Organization as a process
2. Organization as a structure
3. Principles of organization (features of good organization structures)
4. Formal and informal organization

7.1 INTRODUCTION

After deciding the objectives, plans, programs and policies formulated for achieving
the objectives, next step in management process is organizing. The term organization is used
as a process of management and as a structure of relationships. It involves coordinating the
employee's activities in an efficient manner for accomplishing the enterprise objectives.
Organization is a dynamic concept; organization is an essential part of human life.

7.2 ORGANIZATION AS A PROCESS

Organization is one of the important functions of management. It is the process of


determining, arranging, grouping and assigning the activities to be performed for the
attainment of objectives. "organizing” is the process of defining and grouping. The activities
of the enterprise and establishing |the authority relationships among them.

According to Louis A.Alien, "organization is the process of identifying and grouping


the work to be performed, defining and delegating responsibility and authority and

39
establishing relationships for the purpose of enabling people to work most effectively in
accomplishing objectives."

Koontz 0' Donnel defines, "organization involves the grouping of activities necessary
to accomplish goals and plans, the assignment of these activities to appropriate departments
and the provision for authority delegation and co-ordination."

Organizing process involves differentiation and integration of activities.


Differentiation is the segmentation of structure into subsystems, while integration involves
creating unity of effort among the various sub-systems.^ This is the dynamic and humanistic
meaning of the term organization. :

7.3 ORGANISATION AS A STRUCTURE

Organization is interpreted as a structure of relationships among positions and jobs for


the purpose of achieving .enterprise objectives. This is a static or classical concept of
organization. Organization structure refers to network of relationships among individuals and
positions in an organization. It is the skeleton framework of an enterprise, just like
architectural plan of a building, design to achieve its common goal. It is a group of interacting
and interdependent individuals working toward a common goal. A structure organization is
the structural framework within which the efforts of different people are co-ordinate and
related to each other. It is a blue print of how the management will like the various activities
and functions to be performed. Experts like money and rely.

Nature of Organization

o The nature of organization, defined by different writers states the following,

o Organization as a process or management is concerned with identifying and grouping


of activities to be performed.

o It defines and delegates responsibility and authority to appropriate departments.

o It establishes relationships for the purpose of enabling the people to work most
effectively in accomplishing the enterprise objectives.

o Organization as a structure of relationships among positions and jobs for the purpose
of achieving enterprise objectives.

o It is a system of co-operative activities of two or more persons for attainment of


common purpose. ;

o Organizing; as a process involves a: number of steps like determination of objectives,


grouping of activities, assignment of duties to persons, delegation of authority and
creating authority relationship.

40
7.4 PRINCIPLES OF ORGAMISATION (FEATURES OF GOOD ORGANISATION
STRUCTURES)

There is a need to follow certain principles in order to formulate and develop a


Sound and efficient organization structure. The important principles of organization are.

1. Unity of Objective

The objective of the business concern should be clearly stated. This keeps
management in formulating the organization structure and also in achieving the objectives of
enterprise with minimum cost and effort. The organization as a whole and every part of it
must be geared to the basic objectives of the enterprise.

2. Specializations or Division of Work

The activities of every member should be confined, as far as possible, to the


performance of a single function. The activities of enterprise are divided according to
different functions and the same assigned to persons according to their specialization.

3. Span of Control

Every manager should have a limited number of subordinates reporting to him


directly. The span of control should be minimum because there is a limit to the number of
persons that can effectively supervised by him

4. Exception Principle

Only exceptionally complex matters should be referred to executives for their


decision and subordinate should decide matters of routine nature themselves. The execution
can concentrate their time on important matters instead of spending their time on routine
matter.

5. Scalar Principle

There should be a clear chain of command extending from top to bottom of the
organization. Every subordinate should know who his superior is and who his subordinate
are.

6. Principle of Authority

Authority given to manager enables him to accomplish the objectives of the


enterprise. Hence, authority of each manager should be clearly defined and also it should be
equal to the responsibility entrusted.

7. Unity of Command

Each subordinate should have only one superior whose command he has to obey. This
is to ensure discipline to fix responsibility for results.

41
8. Principle of delegation

The organization structure should provide for delegation of authority at every level.
The authority delegated should be equal to responsibility.

9. Principle of responsibility

The supervisor should not be allowed to avoid responsibility by delegating authority


to his subordinates. The superior should be held responsible for the. Acts of his subordinates
to whom he has delegated.

10. Flexibility

The organisation structure should be adaptable enough to accommodate technical and


other changes in the environment. Hence, complicated procedures, red tape and complexity
of control should be avoided.

11. Community

The organisation structure should be serviceable for a long time. This is possible if it
is dynamic and capable of adapting itself to the needs of changing circumstances.

12. Unity of direction

It means, for a group of activities having the same objectives, there should be one
plan for one objective-This facilitates verification and co-ordination of activities and also
completion of task as per schedule.

13. Efficiency

The organization structure should facilitate the achievement of objectives at minimum


possible cost. It should permit the optimum use of resources.

14. Principle of simplicity

The organization structure should be simple with a minimum number of levels. If the
organization structure has a large number of levels, the problem of effective co-ordination
and communication may arise.

7.5 FORMAL AND INFORMAL ORGANISATIONS

Formal Organization:

It refers to organization structure deliberately created by management for achieving


the objectives of the enterprise. It is a pattern of activities, process, and human relationship
and rules planned and structured in order to accomplish organizational goals. According to
Chester Barnard, "an organization is formal when activities of two or more persons are
consciously coordinated towards a "common objective." In a formal organization, the
position, authority, responsibility and accountability of each level or clearly defined. By

42
means of rules, policies and other regularities of the organization, it prescribes relationship
among the people working in the organization. All enterprises having a system of well-
defined position, authority responsibility, relationship, rules policies etc., are considered as
forma! Organizations.

The essence of formal organization is conscious common purpose and forma!


Organization comes into existence when persons,

a) Are able to communicate with each other.


b) Are willing to act
c) Share a purpose

Alien defines "the formal organization is a system of well defined jobs, each bearing a
definite measure of authority, responsibility and accountability." It consists of that
relationship these are relatively stable and change only slowly.

Informal organization:

It refers to pattern of activities, interactions and human relationships, which emerge


spontaneously due to social and psychological forces operating at work place. It arises on the
basis of friendship or some common interest, which may or may not be related to work. An
informal organization arises from personal and social relations of the people, not established
by way of any format authority- It is an unintended and non-planned network of unofficial
and social pattern of human relationship. The people cut across formal channels and
communicate amongst each other. It is not on the basis of rules, regulations and procedures. It
is influenced by personal attitudes, whims, likes and dislikes.- It represents pattern of
interpersonal and intergroup relations that develop within the formal organization.(eg.,)
Friendship groups and cliques. (eg.,) typist working in different departments may form an
informal group due to similarity of work, common language, common habits, common hobby
may also lead to informal groups sometime, an assistant sales manager may prefer to consult
production engineer for advice, due to his personal friendship or due to his regard for
production engineers job knowledge, skill, personality, age, seniority, leadership qualities etc.
This type of inter-relationships, cannot be shown in "organization chart while inter relations
of formal organization can be shown; abolish informal relationship because they are very
important and useful for managing the concern efficiently and for achieving enterprise
objectives. C.I.Barnard states, "informal organization brings cohesiveness to formal
organization. It brings to the members of a formal organization, a feeling of belonging, of
status, a self respect and of gregarious satisfaction." Informal organization is Joint personal
activity without conscious common purpose though contributing to Joint results. Keogh Javis
defines, "an informal organization is a powerful influence upon productivity and job
satisfaction." Both formal and informal systems are necessary for group activity, just as two
blades are essential to make a pair of scissors workable.

7.6 ADVANTAGES OF INFORMAL ORGANISATION TO MEMEBRS

1. Sense of belonging

In a forma] organization a worker is like a drop of water in a ocean and will not be
any attachment in between management and workers. Hence, the workers will not have a

43
sense of belonging. In informal organization, it gives to each member a human consideration
which boost his self image and personality.

2. Safety value for emotional problems

The workers are frustrated and gets tension in their routine work. For example, his
supervisor might have reprimanded him or an overbearing customer might have harassed
him. In such a situation, he seeks a sympathetic ear of a friend in the informal organization.
His friend, who got the similar problem share and understood his troubles.

3. Aid on the job

In case of accidents or illness, members of informal organization may help each other.
If a worker breaks a rule, he may be protected from authoritative action. Changing work
assignments increases the group efficiency.

4. Breeding ground for innovation and originality

Informal group creates better environment for individual innovation and originality.
Individual can experiment his novel ideas, without persuading the immediate superior.

5. Important channel of communication

News travel quickly through informal organizations. It is the clandestine transmitter


and receiver of information before it is officially released. After the news is released, the
informal organization amend, amplify and interpret it. Each person gets larger, more detailed
and meaningful but possibly distorted and erroneous picture of what is going on in the
organization.
6
. Check on authority

Informal organization forces manger to plan and act more carefully. Every manager
knows that there is 3 check and balance on his unlimited use of authority.

7. Social control

This type of organization provides all its members a set of norms-'guides to correct
behavior.' These guides serve as a dividing line between good and bad behavior, between
moral and immoral acts, between legitimate and illegitimate activities.

7.7 DISADVANTAGES OF INFORMAL ORGANIZATION

1. Conflicting norms

Informal organization upholds the individual and social goals of its members, which
often run counter to the goals and values of formal organization. Hence, the efficiency of
operations is reduced and talents of employees are suppressed.

2. Resistance to change

44
Informal group tend to perpetuate the status quo. An informal group is bound by
convention and custom-In order to maintain equilibrium it resists innovation and change in
work methods. Conformity may make group members reluctant to act independently and
creatively.

3. Undermine discipline

Informal groups oppose management policies rules, procedures that are meant to
structure and discipline work behavior and performance of employees. Managers are forced
to become lenient in enforcing rules and regulations in tolerating deviations from required
behavior. The character and competence of management tend to suffer. Informal organization
may ridicule and even sabotages the process, practices and culture of formal organizations.

4. Rumors

The grapevine often carries rumors or false information which is detrimental to


smooth functioning of an organization. It destroys confidentiality of the enterprise.

5. Power politics

Informal organizations are often riddled with fictionalization and power politics. :
Members divert their energy and time from Jobs to jungle in faction lighting and petty
politics. The informal leader may manipulate the group towards selfish or undesirable ends.

6. Role conflicts

Informal groups try to meet the social needs of their members; there is a natural
tendency to produce role conflict. An individual faces role conflict when he has to meet the
conflicting requirements of work group and informal group.

7.8 TYPES (FORMS) OF ORGANIZATION:

Form of organization is also known as structure or kinds of organization. Forms of


organization differ from one enterprise to another.' it is because one form cannot be suitable
to every type of enterprise since each one differ in nature, objectives and character.
Organization structure is primarily concerned with allocation of tasks and delegation of
authority. There are several ways of division of work and distribution of authority. Hence,
several types of organization structure have been evolve-d. Following are the main type of
organization structure, which are given; below
 Line organization
 Functional organization
 Line and staff organization
 Project organization
 Matrix organization
 Committees organization

45
Line organization:

It is the simplest, most direct and oldest type. It is often referred to as "military",
traditional, hierarchical, because the line of authority and responsibility resembles the one
followed in army or in the church. In this type, each position has general authority over lower
positions in the hierarchy in the accomplishment of the main operations of the firm. Authority
flows directly from chief executive to the manager, to .assistant manager, to foreman and to
the workmen. Each position in the organization structure enjoys general authority over ail the
lower 'positions in the hierarchy. Authority flows downwards, responsibility moves upwards,
but directly in a straight line. Scalar principle and the principle of unity of command are
strictly followed. No subordinate is under two on more superiors. The line of authority is
essentially simple mathematical sub-division. Promotion is step by step upwards.

This system can be successfully followed

 Where the scale of business is comparatively small, and the subordinates and
operatives are not too many.

 In continuous process industries, such as viz., refining, spinning and weaving.

 Where work is simple and is almost of routine nature.

 Where machinery is nearly, if not entirely, automatic so that there is no call on the
intelligence of foreman.

 Where the labor management problems are not difficult to solve.

Advantages

1) Simplicity

Line organization is the most simple to establish and operate. Line of authority and-
responsibility is direct, simple and clear. Every individual understands to whom he is
responsible. The authority and responsibility of every position-,is clearly defined. There is no
confusion as to -the role of an individual in the organization.

2) Prompt decision

Every manager can take decision independently without consulting others. He need
not depend upon others for advice, assistance or service. Hence, decision-making process is
easier and less time consuming.

3) Effective discipline

Each position is under the direct control of its immediate superior position. Therefore,
it is easy to maintain discipline among people in the organization.

46
4) Orderly communication

Communication Between supervisors and subordinates flows in direct vertical line.

5) Unified control

Unit of command- results in close personal contacts between supervisors and


subordinates. Direct and close contacts facilitate effective supervision and control.

6) Economical

Line organization is quite economical between staff specialists are not required.

7) Fixed responsibility

Every manager can be held responsible for the results of his unit.

8) Executive development

As every manager has to perform a variety of functions, there is an opportunity for the
development of all round executives.

9) Co-ordination

As all activities relate to one department are managed by one person, co-ordination
can be effective.

Disadvantages

Line organization suffers from the following drawbacks.

1. Lack of specialization:

There is no scope for specialization. A manager has to perform a variety of functions


which might not be interrelated. Any manager cannot be equally good in all the functions.
Hence, the quality of management will be poor.

2. Over loading

The executive is overloaded at each level of organization. He has to look to too many
jobs of diverse nature. His efficiency, therefore, does not always remain the same- The work
also suffers because of overloading.

47
3. Autocratic approach

The line of authority is direct and requires high level of obedience on the part of
subordinates. There is concentration of authority at the top and one way communication.
Managers at the top may be devoid of the realities of situation.

4. Low morale

Subordinates are expected to carryout the decision taken by the supervisors. There
may be lack of initiative on the part of subordinates. Their opinions and grievances are not
properly communicated upward.

5. Instability

The success and continuity of the organizations depend upon a few competent
managers. Succession problems are acute and there may be lack of continuity when key
executives retire.

6. Rigidity

Discipline is emphasized so much that it may be difficult to change.

FUNCTIONAL ORGANISATION,

Cinder the line type of organization, one person is in change of all the activities
relating to a department or, section but there is a difficulty of( getting men with sufficient
capacity and ending who can look after all the activities efficiently. Taylor, recognize this
Imitation, proposed a functional type of organization.

Under this type of organization, men with special abilities on trading in a specialized function
may be employed. The specialists will be performing the functions which are common to
different departments under one organization. Thus, under functional type of organization,
identical functions of various departments in an organizations are performed by a specialist,
whole in a departmental line organization, one person looks after all the activities of the
department of which he is the head. The workers under functional type of organization
receive instructions from every a specialist in each of several supervisory functions which are
assigned to the different specialists.

F.W.Taylor recommended a functional organization of activities at the shop floor


level. He was of the view that the foreman should not be burdened with too many activities
and instead, he should be assisted by a number of specialists in solving the problems of
technical nature Taylor has recommended the following specialists

Line and Staff Organizations

This is a combination of line and functional structures. Generally this, line authority
flows in a vertical line in the same manner as the line organization. In addition, staff
specialists are attached to line positions lo advice them on important matters. These
specialists do not have power of command over subordinates in other departments. They are
purely of advisory nature. "Then the work of line executives increases, they need advice,

48
information and help of staff specializes. Hence, staff positions are created to support line
managers. Every staff specialist has line authority over the subordinates in his own
department. For example, the chief accountant has command authority over accounts and
clerks in accounts department. But he has only advisory relationship with other departments
like production and sales.

Type of staff

Staff personnal may consists of a) personal staff, personal assistant or advisor


attached to line executive (e) specialized staff (e.g.,) accountant, personal manager, public
relation officer etc. General staff (or) other experts in different fields who normally operate at
higher levels and advise the top management.

Advantages:

1. Specialization:

The staffs officers concentrate mainly on the planning function and the line officers
on the doing functions. By this method, specialization is attained.

2. Flexibility

Staff can be added to line and new activities may be introduced without disturbing the
line procedure. Hence, there is greater flexibility in the organization.

3. Expert advice

The staff officers provide expert advice and guidance to line officers and by this, the
enterprise as a whole gets benefit.

4. Sound decision

In this type, the decisions are made by experts and hence, there is a possibility of
making sound managerial decisions

5. Relief to line executives

The staff officers look after the detailed analysis of each important managerial activity
which is a big relief to the line officers.

6. Opportunities for advancements

In this type, a greater variety of responsible jobs are available and this provide more
opportunities for advancement of capable workers

49
7.9 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books ,


New York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New
Delhi
4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New
Delhi
5. C..B.gupta, Management Principles and practices, Sultan chand and sons ,
New Delhi.
6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

7.10 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Explain the process of organization


2. Discuss about Organization as a structure
3. Comment on Principles of organization
4. Formal and informal organization - Discuss

50
UNIT: 8 DELEGATION, SPAN OF CONTROL, DECENTRALIZATION, LINE AND
STAFF AUTHORITY

Structure

8.0 Aims And Objectives


8.1 Introduction
8.2 Delegation
8.3 Span Of Control
8.4 Centralization
8.5 Decentralization
8.6 Line And Staff Authority
8.7Some Useful Books
8.8 Answer To Check Your Progress Exercise

8.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the basic concepts underlying the
delegation, span of control, Decentralization, Line and staff authority.

8.1 INTRODUCTION

This lesson deals about the important aspects in organization. For any work to be in
a better way, planning, organizing and its structural design are very important. Controlling of
an organization is also important, for which, delegation, span of control, decentralization and
authority is also important to be known clearly.

8.2 DELEGATION

Organization units require the delegation of authority to their respective managers so


that they can manger their respective units. Every manger in the organization has some
activities assigned by the superior. In order to perform these activities, he needs authority to
take decisions about these and to enforce them. In fact, authority vests in the owners of the
organization, an from there, it is delegated to the chief executive. The chief executive cannot
perform all the activities, hence, he assigns some activities to his subordinates and delegates
them authority. This process of delegation and re-delegation from superiors to subordinates
goes on till all the activities are assigned to persons by whom these are performed.

Characteristics of Delegation

1. Delegation is the authorization to a manager to act in a certain way independently.


The degree of delegation puts a manager to act within the limits prescribed by his
superior. Moreover, with in the limits he is not free to act arbitrarily but subject to
provisions of organizational policy, rules and regulation.

51
2. Delegation has a dual characteristic. A superior delegates authority to subordinates,
however a superior at the same time still retains authority. As Terry has observed, 'it
is something like imparting knowledge. You share with others who then possess the
knowledge, but you still retain the knowledge too.

3. Authority once delegated can be enhanced, reduced or withdrawn depending upon the
requirement. The changes in organization structure, organization climate, policy,
procedure, and method require modifications in delegation of authority. Since,
authority is delegated to an individual; the authority can be recovered back fully in the
case of his exit from the organization.

4. A manager cannot delegate authority which he himself does not process. Moreover,
he does not delegate the entire authority to his subordinates because if he delegates all
his authority he cannot work.

5. Delegation may be specific or general. Similarly, it can be written or unwritten.


Delegation is specific when course of action for specific objectives are specified; it is
general when these are not specified, though objectives are specified.

8.3 SPAN OF CONTROL

MEANING

The term 'span of management' is also referred to as span of control, span of


supervision, span of authority or span of responsibility. It includes the number of
subordinates who report directly to a manager.

As such, the important determinant is the manger's ability to reduce the frequency and
time impact of superior-subordinate relationships, though this ability itself is determined by
several other factors. The following factors generally go in determining a proper span of
management.

1. Capacity of Superior of factors determining span of management

2. Capacity of Subordinates of factors determining span of management

3. Nature of Work of factors determining span of management

4. Degree of Decentralization of factors determining span of management

5. Planning of factors determining span of management

6. Use of Staff Assistance of factors determining span of management

7. Communication Techniques of factors determining span of management

8. Supervision from Others of factors determining span of management

52
8.4 CENTRALIZATION

This system results in certain advantages to the organization

1. Facilitating Personal Leadership. Personal leadership can be a potent influence in


the success of a small organization and during its early growth stages. The success
and survival of the small, young enterprise in the competitive market depends upon
aggressiveness, singleness of purpose, and flexibility. Under a talented and dynamic
leader, centralization in small organization may result in quick decisions, enterprising
and imaginative action, and high mobility .

2. Providing Integration. Certain amount of centralization is necessary to unify and


integrate the total operation of the enterprise. Some sort of central direction is
required to keep all parts of the organization moving harmoniously together towards a
common objective. Thus, it acts as a binding force on the various parts of the
organization.

3. Uniformity of Action Centralization brings uniformity in all actions in the


organization. Thus, to the extent that the organization wishes all its units to do the
same thing in the same way or the same time, there must be centralization of
appropriate decisions.

4. Handling Emergencies. When emergency decisions affecting all the units of the
organization are to be taken, centralization is necessary. The more acute emergency,
or the more acute competition requires greater centralized decision-making.

Other Benefits. Besides, centralization minimizes duplication of work and wastages


requires easier control, and makes communication easier.

However, these advantages of centralization are limited in certain circumstances and


particularly in smaller organizations. A stage comes when decentralization becomes
desirable to achieve its advantages and where the limitation of centralization come in the
way of successful organizational functioning.

8.5 DECENTRALIZATION:

Many organizations, which were centralized at earlier stages, have been forced to go
for decentralization simply because they could not cope up with the situation under
centralized authority. These shows the benefits of decentralization, which are as follows:

1. Reducing Burden to Top Executives. Decentralization is necessary for solving the


problems of expanding organizations. It is the means by which the chief executive can
extend his leadership over a giant organization, when the chief executive makes
operating decisions and with problems of immediate urgency, he finds it almost
impossible to adopt the relaxed and contemplative point of view necessary for
planning and thinking ahead. Decentralization relieves this pressure on the chief
executive an provides him time to think for the future and to make plans accordingly.

53
2. Facilitating Diversification. Decentralization can facilitate the growth and
diversification of product lines. Divisionalization facilitates diversification an former
is successful under decentralization. For under decentralization, each product line is
treated as separate unit and proper emphasis on all important matters such as present
position, future prospects, an comparative efficiency, can be given.

3. Ensuring Marketing Innovations. Customers require satisfaction in respect of


supply of qualitative products, regularity of supply, and at cheaper rates. Marketing
innovations ensure better customer satisfaction. Each organization has to carry on
these marketing innovations for its existence and growth. In decentralized
organization structure, higher level people get much time for the creativity and
innovations. The impact of decentralization on both product and market has proved by
the various organizations.

4. Motivating Mangers. Various research studies have shown that we organization


structure itself can influence the people within the organization. The extent to which
the organization facilities participation, communication, delegation, mutual
interaction, and interdependence, motivates people for higher productivity.
Decentralization tends to emphasize those desirable characteristics in whatever type
of structure it is found.

5. Encouraging Development of Managers. Managers are made, not born and


decentralization is one of the best methods of developing managers in the
organizations. Other methods of management development have their own
contributions in this field. However, giving managers a management job to do and to
delegate authority for decision-making make them more mature and competent and
broad-based. The problem of succession is overcome this way and the future growth
and success of the organization are ensured as most organizations find lack of
managerial talent a limiting factor in growth. Perhaps, the necessity of management
development is one of the compelling reasons for decentralization.

8.6 LINE AND STAFF AUTHORITY

Although the term authority has various connotations, in the organizational context,
authority is defined as the power to make decisions, which guide the actions of others. Power,
on the other hand, is the ability of individuals to influence the beliefs and actions of others.
Power can be legitimate, expert, referent, reward, or coercive. Various authority relationships
exist in an organization, many of which are related to line and staff functions.

Line functions are those, which are directly responsible for accomplishing the
objectives of the enterprise, while staff functions are advisory in nature.

The main Staff functions are Investigation, research and giving advice to line
managers on how to accomplish tasks. Functional authority involves conferring rights upon
individuals or departments to control the processes and practices pertaining to personnel in
other departments. Instead of making recommendations to the line managers or superiors,
functional authority allows staff personnel to issue instructions to line managers directly.
Although line managers and staff personnel are expected to work together for

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accomplishment of organizational goals, there are many factors, which contribute to the
conflicts between line and staff personnel. The line managers have clashes with the staff
personnel as they feel that staff personnel are not accountable for their actions. Moreover,
line managers feel that staff personnel invade their territory and dilute their powers. Since
staff personnel may not have experience of the operational activities, their recommendations
and ideas may lack applicability.

Staff managers feel that line managers do not make the right use of talents of the staff
personnel and are not open to new ideas. Further, since staff personnel lack authority, they
may not be able to implement their solutions for problems. The difference in the nature of
line and staff functions is also a prime reason for conflicts between line and staff managers.
The line and staff conflicts can be avoided by having clearly defined authority relationships
between line and staff functions and by ensuring proper use of staff talent. The staff
personnel should also be made accountable for the outcome of their actions and present line
managers the solutions for problems in as complete a form as possible, leaving only its
acceptance or rejection to the line manager.

Depending on whether the organization follows a centralized or decentralized


approach, authority is either retained with the top management or is delegated to the lower-
level managers. Delegation of authority refers to a manager granting the right to a
subordinate to make decisions or use his discretion in judging certain issues. The amount of
authority delegated depends on the delegator and the delegant, as well as organizational
factors.

Major policy areas like finance, new product programs, marketing strategies, etc.
should be centralized, whereas routine and monotonous tasks which do not need much
guidance from superiors, can be decentralized. Since the costs of decentralization are high,
the potential benefits must be high enough to justify the costs involved.

8.7 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York

2. Stephen P.Robbins, fundamental of management, Pearson 2003

3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi

5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.

8.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Write the importance of delegation and centralization


2. What is meant by span of control?
3. Decentralization is important. Discuss
4. What is the role of line and staff authority?

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UNIT: 9 DIRECTING, MOTIVATION AND LEADERSHIP
Structure
9.1 Aims And Objectives
9.2 Introduction
9.3 Directing
9.4 Importance Of Directing
9.5 Techniques Of Directing
9.6 Theories Of Motivation
9.7 Leadership
9.8 Leadership Styles
9.9 Theories Of Leadership
9.10 Let Us Sum Up
9.11 Key Words
9.12 Some Useful Books
9.13 Answer To Check Your Progress Exercise

9.1. AIMS AND OBJECTIVES

The main objective of the lesson is to understand the basics of directing, techniques of
directing, motivation, theories of motivation, leadership and its styles.

9.2. INTRODUCTION

The most important work of an organization is all about directing, motivation and a
good leaders. This lesson gives a clear picture about that.

9.3. DIRECTING

Meaning:

According to G. R. Terry - "Directing means moving to action and supplying


simulative power to a group of persons". Thus, the plan is put into operation through the
organization by the process of direction. Another term used to describe this function is
"Activating". In the words of G. R. Terry - "Activating means moving into action - supplying
simulative power to the group".

According to Dale, "Direction is telling people what to do and seeing that they do it to
the best of their ability. It is through directing that managers get the work done through
people. It consists of:

 Issuing orders and instructions by a superior to his subordinates.

 Guiding, advising and helping subordinates in the proper methods of work.

 Motivating them to achieve goals by providing incentives, good working environment


etc.

 Supervising subordinates to ensure compliance with plans".

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To carry out physically the activities resulting from the planning and organizing steps,
it is necessary for the manager to take measures that will start and continue action as long as
they are needed in order to accomplish the task by the members of the group. The process of
directing or activating involves:

1) Providing effective leadership

2) Integrating people and tasks and convincing them to assist in the achievement of
the overall objectives

3) Effective communication

4) Providing climate for 'subordinate' development

Directing represents one of the essential functions of management because it deals


with human relations. Once the organizational plans have been laid down, the structure being
designed and competent people brought in to fill various positions in organization, direction
starts. Direction phase of management is the heart of management-in action.

Characteristics of directing

Directing has the following characteristics features:

1) It is the function of the superior manager and runs from top to down in the
organization structure. A subordinate has to receive instructions for doing his job
from his superior.

2) Direction implies issuing orders and instruction. Besides issuing orders and
instruction a superior also guides and counsels his subordinates to do his job
properly.

3) The top management gives broad direction to the middle level managers who in turn
give specific direction to the lower level management.

4) The four important aspects of directing are supervision, motivation, leadership and
communication. All these functions are interconnected and mutually dependent.

9.4. IMPORTANCE OF DIRECTING

The importance of direction in an organisation can be viewed by the fact that every
action is initiated through direction. It is the human element which handles the other
resources of the organisation. Each individual in the organisation is related with others and
his functioning affects others and, in turn, is affected by others. This makes the functioning of
direction all the more important. The importance of the direction function is given below:

1) Direction integrates employees' efforts: The individual efforts needs to be integrated


so that the organisation achieves its objectives. No organisational objective can be
achieved without the function of direction.

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2) Direction initiates action: It is through direction that the management makes
individuals function in a particular way to get organisational objectives.

3) Direction gets output from individuals: Every individual in the organisation has
some potentials and capabilities which can be properly utilized through the function
of direction.

4) Direction facilitates changes: To manage change management must motivate


individuals to accept these changes which can be accomplished through motivation.

9.5. TECHNIQUES OF DIRECTION:

A manager has at his disposal three broad techniques of direction.

1. Consultative direction: In this method executive consults with his subordinates concerning
the feasibility, the workability and the extent and content of a problem before the superior
makes a decision and issues a directive.

The following advantages are claimed in this type of method:

(a) Participation occurs on every level of organisation.


(b) Better communication.
(c) Least resistance from subordinates, experience and knowledge of subordinate also
can be used to arrive at right directives.
(d) It induces better motivation and morale.
(e) It leads to better co-ordination and effective results.

This method has the following disadvantages:

(a) It is time consuming.


(b) Subordinates may consider it their right and prerogative to be consulted before a
directive is given to them by their superiors.
(c) Sometimes unnecessary arguments arise leading to wastage of time.

2. Free rein direction: The free rein technique encourages and enables the subordinate to
contribute his own initiative, independent thought, drive, perspicacity and ingenuity to the
solution of the problem. The free rein technique of direction will probably show the best and
quickest results, if the subordinate is highly educated, brilliant young man a sole performer,
who has a sincere desire to become a top level manager.

3. Automatic direction: In this method manager gives direct, clear and precise orders to his
subordinates, with detailed instructions as how and what is to be done allowing no room for
the initiative of the subordinate.

9.6. MOTIVATION

Concept of motivation

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Management is the art of getting work done by the subordinates in order to attain
common goals of the organization. Getting work done is a difficult task. For this purpose, the
management should inspire and motivate the people for the accomplishment of organizational
objectives.

The force of motivation is a dynamic force setting a person into motion or action. The
word motivation is derived from motive which is an active form of a desire or need, which
must satisfy. All motives are directed towards goals and the needs and desires affect or
change your behavior.

Meaning

According to Knootz and O’Donnell, “motivation is a general term applying to the


entire class of drives, desires, needs wishes and similar forces that include an individual or a
group of people to work.

Scott defines “Motivation means a process of stimulating people in action to


accomplish desired goals”.

Importance of motivation

Motivation is one of the important functions of the management without which


organizational objectives are difficult to achieve. It is the integral part of the management
process and every manager must motivate his subordinates to create in them the will to work.
Motivation is necessary for better performance.

The importance are discussed below

• Motivation creates a willingness on a part of workers to do the work in a better way

• Proper motivation improves the efficiency of operation

• Proper utilization of human resources possible since it inspires employees to make best
possible use of different factors of production

• Higher motivation leads job satisfaction. As a result of this, labor absenteeism and
turnover are low

• Motivation helps to solve the labor problems and maintains a good labour relations

• Motivation is the basis of cooperation to get the best results out of the efforts of the
men on the job. Efficiency and output are increased through cooperation

• High motivation helps to reduce resistance to change

• By providing proper motivation, all the members will try to be as efficient as possible
and to improve upon their skill and knowledge

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• Financial and non financial incentives not only retain the existing employees but also
attract the competent employees from outside enterprise.

• A proper motivation scheme promotes closer relationship between enterprise and


workers.

Hierarchy of needs – Maslow’s theory

Maslow’s hierarchy of need theory is one of the most popular theories of motivation in
the management. This theory was developed by an eminent American Psychologist Dr.
Abraham H. Maslow. Dr. Maslow was the pioneer in the proper classification of human needs.

Some of the salient features of this theory are as follows

• Human liking are innumerable and never ending if one liking is satisfied, another
liking emerges in that place.

• Adult motives are complex. No single motive determine behavior, rather, a number of
motives operate at same time.

• Human needs form a hierarchy. Lower level needs must at least partly be satisfied
before higher level needs emerge. In other words, a higher order needs essentially satisfied

• Satisfied wants do not motivate the workers. Only unsatisfied wants induce the man to
work hard

• Various levels needs are inter dependent and overlapping

• Higher level needs can be satisfied in many more ways than the lower level needs.

• The urge to fulfill needs is a prime factor in motivation of people at work. People seek
growth. They want to move up the hierarchy of needs. Usually, people seek the satisfaction or
higher order needs.

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Maslow’s hierarchy of need theory

1. Physiological needs

Physiological needs are the biological needs to preserve human life. These needs
include needs for food, clothing and shelter. These needs must be met at least partly before
higher level needs emerge. These needs are most powerful than others.

2. Safety needs

Once physiological needs are satisfied, the safety or security needs become
Predominant. These include (1) protection from physiological dangers. (2) Economic security
(health insurance) (3) Desire for an orderly, predictable environment and (4) To desire to
know the limits of acceptable behavior. These safety needs are really provisions against
deprivation in the future. It also involves a sense of protection against danger and threats.

3. Social needs

After the needs of the body and security satisfied, then a sense of belonging and
acceptance becomes predominant in motivating behavior. These needs are for love, friendship,
exchange of feelings and grievances, recognition, conversation, belongingness,
companionship etc. social needs tend to be stronger for some people than for other’s and
stronger in situation.

4. Esteem needs

There are two types of esteem needs. Self esteem and esteem of others. Self esteem
needs include those for self – confidence, achievement, competence, self respect, knowledge
and for independence and freedom. The second group of esteem needs is those that related to

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one’s reputation needs for status, for recognition, for appreciation and deserved respect of
one’s fellows.

5. Self – actualization needs

These needs are also called as self – realization needs. Self – actualization refers to the
desire to become everything that one is capable of becoming. For example, a doctor thinks
that he is capable of saving the life of the patient.

Types of motivation

If a manager wants to get work done by his employees, he may either hold out a
promise of a reward (positive motivation) or he may install fear (negative motivation). Both
these types are widely used by managements.

Positive or Incentive Motivation

This type of motivation is generally based on reward. A positive motivation involves


the possibility of increased motive satisfaction. According to Flippo - "Positive motivation
is a process of attempting to influence others to do your will through the possibility of gain or
reward". Incentive motivation is the "pull" mechanism. The receipt of awards, due
recognition and praise for work-well done definitely lead to good team spirit, co-operation
and a feeling of happiness.

Positive motivation include:-

1) Praise and credit for work done


2) Wages and Salaries
3) Appreciation
4) A sincere interest in subordinates as individuals
5) Delegation of authority and responsibility

Negative or Fear Motivation

This type of motivation is based on force and fear. Fear causes persons to act in a
certain way because they fear the consequences. Negative motivation involves the possibility
of decreased motive satisfaction. It is a "push" mechanism.

The imposition of punishment frequently results in frustration among those punished,


leading to the development of maladaptive behavior. It also creates a hostile state of mind and
an unfavorable attitude to the job. However, there is no management, which has not used the
negative motivation at some time or the other.

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9.7. THEORIES OF MOTIVATION

Motivation to work is very complex. There are many internal and environmental
variables that affect the motivation to work. Behavioral scientists started to search new facts
and techniques for motivation. These theories are termed as theories of motivation. The most
important theories are explained below.

McGregor's Theory X and Theory Y

Different styles of management have a different bearing on the motivation of workers


in the organization. The style adopted by a manager in managing his subordinates is basically
dependent upon his assumption about human behaviour. Theory X is negative, traditional and
autocratic style while Theory Y is positive, participatory and democratic. Thus, these labels
describe contrasting set of assumptions about human nature. Douglas McGregor has
classified the basic assumption regarding human nature into two parts and has designated
them as 'theory X’ and 'theory Y'.

Theory X:

This is the traditional theory of human behaviour, which makes the following
assumptions about human nature:

 Management is responsible for organizing the elements of productive enterprises -


money, material, equipment, and people - in the interest of economic ends.

 With reference to people it is a process of directing their efforts, motivating them,


controlling their actions, modifying their behaviour in order to be in conformity with
the needs of the organization.

 Without this active intervention by management, people would be passive – even


resistant to organizational needs. Hence they must be persuaded, rewarded, punished
and properly directed.

 The average human being has an inherent dislike of work and will avoid it if he can.

 He lacks ambition, dislikes responsibility and prefers to be led.

 He is inherently self-centered, indifferent to organizational needs.

 He is by nature resistant to change.

 He is gullible, not very bright.

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Theory Y:

The assumption of theory Y, according to McGregor are as follows:-

1) Work is as natural as play or rest, provided the conditions are favourable; the average
human being does not inherently dislike work.

2) External control and the thrust of punishment are not the only means for bringing
about efforts towards organizational objectives. Man can exercise self-control and
self-direction in the service of objectives to which he is committed.

3) Commitment to objectives is a result of the rewards associated with their


achievement. People select goals for themselves if they see the possibilities of some
kind of reward that may be material or even psychological.

4) The average human being, under proper conditions does not shirk responsibility, but
learn not only to accept responsibility but also to seek it.

5) He has capacity to exercise a relatively high degree of imagination, ingenuity and


creativity in the solution of organizational problems in widely, not narrowly
distributed in the population.

6) Under conditions of modern industrial life the intellectual potentialities of people are
only partially utilized. As a matter of fact, men, have unlimited potential.

Maslow's Need-Hierarchy Theory of Motivation

According to Abraham Maslow, a U.S psychologist, man is a wanting animal. He has


a variety of wants or needs. All motivated behaviour of man is directed towards the
satisfaction of his needs. The theory postulated that people are motivated by multiple needs,
which could be arranged in a hierarchy. Maslow offers a general theory of motivation called
the 'need hierarchy theory'. The features of his theory are as follows:-

1. People have a wide range of needs which motivate them to strive for fulfillment.
2. Human needs can be definitely categorized into five types:

1. Physical needs,
2. Safety or security needs,
3. Affiliation or social needs,
4. Esteem needs and
5. Self-actualization needs.

3. These needs can be arranged into a hierarchy. Physical needs are at the base whereas self-
actualization needs are at the apex.

4. People gratify their physical needs first, when the need is satisfied, they feel the urge for
the next higher level need.

5. Relative satisfaction of lower level need is necessary to activate the next higher level need.

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THEORY X THEORY Y

1) Theory X assumes human beings inherently dislike work and are distasteful towards
work.

2) Theory Y assumes that work is as natural as play or rest

3) Theory X emphasizes that people do not have ambitions and they shrink responsibility

4) Theory Y assumes just the reverse. Given proper conditions, people have ambitions
and accept responsibility

5) Theory X assumes that people in general have little capacity for creativity

6) According to Theory Y the creativity is widely distributed in the population

7) According to Theory X, people lack self motivation and require be externally


controlling and closely supervising in order to get maximum output.

8) While in Theory Y people are self directed and creative and prefer Self control

9) Theory X emphasize upon centralization of authority in decision-making process

10) Theory Y emphasizes decentralization and greater participation in decision making


process
11) A satisfied need does not motivate human behaviour. It only triggers or activates the
urge for the next higher level of needs.

Hertzberg's Theory of Motivation

Hertzberg developed a theory of motivation on the premise that human nature has two
separate elements - The motivators and maintenance factors. According to this theory of
motivation the items that determine job content are considered motivational factors e.g.:-
Achievement, recognition, responsibility, advancement and the work itself. The elements that
influence the job context are the hygiene or maintenance factors e.g.:- company policy,
salary, inter-personal relations, working conditions etc. They must be adequate and if they are
absent or inadequate, they will create dissatisfaction.

1) Hygiene Factors: Hygiene factors represent the need to avoid pain in the
environment. They are not an intrinsic part of a job, but they are related to the
conditions under which a job is performed. They are associated with negative
feelings. They must be viewed as preventive measures that remove sources of
dissatisfaction from environment. Hertzberg believed that hygiene factors created a
zero level of motivation and if maintained at proper level prevents negative type of
motivation from occurring. Thus, hygiene factors, when absent, increase
dissatisfaction with the job. When present, help in preventing dissatisfaction but do
not increase satisfaction or motivation.

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2) Motivators: Motivators are associated with positive feelings of employees about the
job. They make people satisfied with their job. Motivators are necessary to keep job
satisfaction and job performance high. On the other hand, if they are not present they
do not prove highly satisfying. Motivational factors or satisfiers are directly related to
job content itself, the individual’s performance of it, its responsibilities and the
growth and recognition obtained from it. Motivators are intrinsic to the job. Thus,
when motivators are absent, prevent both satisfaction and motivation. When,
motivators are present, they lead to satisfaction and motivation. To apply the two-
factor theory to the workplace, Hertzberg suggests a two-step process.

a. The supervisor should attempt to eliminate the hygiene factors that are found
to be more basic than factors that lead to satisfaction.

b. Once the dissatisfies have been somewhat neutralized, the supervisor may be
able to motivate workers through the introduction of motivational factors.

Victor Vroom's Expectancy Theory

Expectancy Theory was developed by Victor H Vroom. It is based on the notion that
human behaviour depends on people's expectations concerning their ability to perform tasks
and to receive desired rewards. The expectancy theory argues that the strength of a tendency
to act in a certain way depends in the strength of an expectation that the act will be followed
by a given outcome and on the attractiveness of the outcome to the individual. It includes
three variables which Vroom refers to as –

a) Valance: Valence means the strength of an individual's preference for a particular


outcome. A valence of zero occurs when the individual is indifferent towards the
outcome. The valance is negative when the individual prefers not attaining the outcome
to attaining it.

b) Instrumentality: Instrumentality refers to the relationship between performance and


reward. It refers to a degree to which a first level outcome (e.g.:-superior performance)
will lead to a desired second level outcome (e.g.:- promotion). If people perceive that
their performance is adequately rewarded the perceived instrumentality will be positive.
On the other hand, if they perceive that performance does not make any difference to
their rewards, the instrumentality will be low.

c) Expectancy: People have expectancies about the likelihood that an action or effort on
their part will lead to the intended performance. Workers will be motivated by the belief
that their performance will ultimately lead to payoffs for them. Expectancy is the
probability that a particular action will lead to a particular first level outcome. In sum,
Vroom emphasizes the importance of individual perceptions and assessments of
organizational behaviour. The key to "expectancy" theory is the "understanding of an
individual's goals" - and the linkage between "effort" and "performance" between
"performance" and "rewards" and between "rewards" and "individual-goal satisfaction".
It is a contingency model, which recognizes that there is no universal method of
motivating people. Because we understand what needs an employee seeks to satisfy
does not ensure that the employee himself perceives high job performance as
necessarily leading to the satisfaction of these needs.

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McClelland's Need for Achievement Theory

David C McClelland, a Harvard Psychologist, has proposed that there are three major
relevant motives most needs in work-place situations. According to him, the motives are:-

1. The need for achievement i.e., strives to succeed.


2. The need for affiliation i.e., warm relationship with others.
3. The need for power i.e., controls other people.

According to McClelland, every motive is acquired except striving for pleasure and
avoiding pain. He proposed that people acquire these needs for achievement, power and
affiliation through experiences over the time. On the job, people are motivated by these
needs, and the manager can learn to recognize these needs in workers and use them to
motivate behavior. McClelland used the Thematic Apperception Test (TAT) to study human
needs. The TAT process involves asking respondents to look at pictures and write stories
about what they see in the pictures. The stories are then analyzed to find certain themes that
represent various human needs. From his research, McClelland found that, achievement
motive is a "desire to perform in terms of a standard of excellence or to be successful in
competitive situations". They (employees) seek situations where:

i. They can attain personal responsibility for finding solutions to problems.

ii. They can receive immediate feedback information on how they are progressive towards
a goal.

iii. They can set moderately challenging goals.

iv. They find accomplishing a task intrinsically satisfying.

"High achievers" differentiate themselves from others by their desire to do things better.

Evaluation: Achievement motivated people is the backbone of any organization. As such


considerable time and attention must be devoted to constructing ways of developing the
achievement motive at the managerial level. Organizational climate must be conducive to
high achievement. Managers must try to raise the achievement need level of subordinates by
creating the proper work environment, increasing responsibility and autonomy and rewarding
excellence in performance.

9.8. LEADERSHIP:

A simple definition of leadership is that leadership is the art of motivating a group of


people to act towards achieving a common goal. Put even more simply, the leader is the
inspiration and director of the action. He or she is the person in the group that possesses the
combination of personality and skills that makes others want to follow his or her direction.

In business, leadership is welded to performance. Effective leaders are those who


increase their companies' bottom lines. To further confuse the issue, we tend to use the terms

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"leadership" and "management" interchangeably, referring to a company's management
structure as its leadership, or to individuals who are actually managers as the "leaders" of
various management teams.

“Leadership is the art of influencing and inspiring subordinates to perform their duties
willingly, competently and enthusiastically for achievement of group objectives.”

Tennenbaum et al defines leadership as “interpersonal influence exercised in a


situation and directed through communication process, towards the attainment of a specified
goal or goals”. This definition emphasizes that influencing behavior is through
communication but does not speak about enthusiasm.

Terry says therefore “Leadership is essentially a continuous process of influencing


behaviour. A leader breathes life into the group and motivates it towards goals. The
lukewarm desires for achievement are transformed into a burning passion for
accomplishment”—this establishes that the will to do is triggered by leadership.

Another behaviour scientist defines it “Leadership is the process of influencing and


supporting others to work enthusiastically toward achieving objectives”

However Peter Drucker defines leadership as follows. “Leadership is the lifting of


man’s vision to higher sights, the raising of a man’s performance to a higher standard, the
building of a man’s personality beyond its normal limitations”.

Formal and informal leadership

When a person is appointed as an authority figure or elected ,then it is formal


leadership. Thus a person is appointed as production manager and authority is given to
exercise formal leadership over the subordinates – an example of formal leadership. The
ambassador to a country is appointed and he acquires the authority of leadership in giving
directions to the people concerned.

But when a person uses interpersonal influence in a group without designated


authority or power – using only their charm, intelligence, skills, and other traits so that people
turn to them for advice, direction and guidance—informal leadership is emerging out in him.
Religious leaders, civic leaders, opinion leaders are examples.

Successful formal managers having charismatic personality are also becoming


informal leaders in situations.

However there are some common traits and qualities for a leader that enables him to
exercise his influence on others and wield command over others. These qualities assist him in
directing roles. They are,

• Energy, drive
• Present ability, appearance
• Enthusiasm
• A sense of cooperativeness.
• Personality- height and weight
• Initiative, intelligence and judgment

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• Sociability
• Tact and diplomacy
• Self confidence
• Moral courage
• Integrity
• Will power
• Emotional stability
• Excellent human relations.

A person having special personal characteristics along with some of these traits only
can become good leader, as all leaders cannot possess all these qualities.

9.9. LEADERSHIP STYLES

In 1939, a group of researchers led by psychologist Kurt Lewin set out to identify
different styles of leadership. While further research has identified more specific types of
leadership, this early study was very influential and established three major leadership styles.
In the study, groups of school children were assigned to one of three groups with an

1. Authoritarian
2. Democratic
3. Free –rein Leadership

Explanation for different types of leadership

Authoritarian leadership:

These leaders keep the decision-making authority and control in their hands and take
full responsibility for all actions. They will never make anybody a scapegoat for any of their
faults. They structure the situations in their own way and expect the workers to follow their
orders. They will not allow any deviation from their orders. The subordinates are instructed to
carry out their orders without any question. Also the subordinates entirely depend on their
leader and normally they suffer in the absence of their leaders.

Some autocratic leaders are tough and highly dictatorial and are a source of fear or
intimidation. Some leaders are paternalistic depending on the approach of the leader. The
motivational approach of the leader can be threat and punishment or appreciation and
rewards. When highly dictatorial, the subordinates develop a kind of fear, sense of insecurity,
frustration, low morale, and will avoid responsibility. The drive and initiative in them is
killed and they do not display their innovative behaviour. The autocratic leader believes that
his leadership is unquestionable as it is conferred upon him because of the position he enjoys.
He also believes that his knowledge is superior, power to punish or reward is his privilege
they even impose penalty on subordinates or use abusive language in front of others and
criticize. But autocratic leaders who positively motivate are a class you enjoy to work with.
But the biggest nuisance is from those autocratic leaders who hide their incompetence for fear
of being exposed.

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This style permits quick decisions, as there is only a single person to take decisions.
There are also many members who prefer working under strict discipline and under central
authority. The style provides motivation and rewards to a manager who gives results.

However a majority of members do not like strictness and discipline especially


because motivation is negative. Single leadership creates frustration and lacks motivation.
Morale is lost and unbalanced rewards create conflicts jeopardizing the organizational
efficiency since communication is also one-way.

Characteristics of Autocratic Leadership

Some of the primary characteristics of autocratic leadership include:

Little or no input from group members


Leaders make the decisions
Group leaders dictate all the work methods and processes
Group members are rarely trusted with decisions or important tasks

Benefits of Autocratic Leadership

Autocratic leadership can be beneficial in some instances, such as when decisions


need to be made quickly without consulting with a large group of people. Some projects
require strong leadership in order to get things accomplished quickly and efficiently.

Have you ever worked with a group of students or co-workers on a project that got
derailed by poor organization, a lack of leadership and an inability to set deadlines? If so,
chances are that your grade or job performance suffered as a result. In such situations, a
strong leader who utilizes an autocratic style can take charge of the group, assign tasks to
different members and establish solid deadlines for projects to be finished.

In situations that are particularly stressful, such as during military conflicts, group
members may actually prefer an autocratic style. It allows members of the group to focus on
performing specific tasks without worrying about making complex decisions. This also
allows group members to become highly skilled at performing certain duties, which can be
beneficial to the group.

Democratic leadership styles

This is also known as democratic leadership. Here the subordinates are consulted and
their feedback is taken into decision-making process. Though the leader makes the final
decision, he acts more as a moderator and of course he takes responsibility for the results.
The management in this type recognizes the fact that there are employees who are capable to
give innovative ideas, intelligent, skillful, competent, suggestive etc Obviously the group
members get an opportunity to display their talents and are encouraged to demonstrate
initiative and creativity. The members thus get a chance to participate in decision-making.
This incidentally leads to a good management-labour understanding or relations, higher
morale and greater job satisfaction.

This style is very useful when you have educated lobour , experienced, dedicated and
ready to work independently with nil or least directives. By this you are developing a set-up

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conducive to growth and development. Good climate is generated for growth and individual
personality development too. “This style is also consultative and ideographic. When
participation is there, it means mental and emotional involvement of a person in a group
situation is assured. It ends up in sharing of responsibilities and contribution to group goal
achievement. Moreover a participative manager decentralizes the decision making process
which increases positive motivation. The leader does not take any unilateral decision and
believes in consultation and participation of members. The superior even rewards the
subordinates for the best suggestions during consultation. The benefits of this style of
leadership are

a. The productivity is high as participants are the decision makers.

b. They share the responsibility with the superior thereby ensuring not only his safety but also
for themselves. You will not drill a hole in the boat in which you are traveling with your
friend.

c. High morale and favorable attitude of employees result in organizational stability

d. It is a motivating technique as the employees feel highly elevated as their ideas and
suggestions are given weight age in decision making.

Characteristics of Democratic Leadership

Some of the primary characteristics of democratic leadership include:

i. Group members are encouraged to share ideas and opinions, even


though the leader retains the final say over decisions.

ii. Members of the group feel more engaged in the process.

iii. Creativity is encouraged and rewarded.

Benefits of Democratic Leadership

Because group members are encouraged to share their thoughts, democratic


leadership can leader to better ideas and more creative solutions to problems. Group members
also feel more involved and committed to projects, making them more likely to care about the
end results. Research on leadership styles has also show that democratic leadership leads to
higher productivity among group members.

Democratic leadership, also known as participative leadership, is a type of leadership


style in which members of the group take a more participative role in the decision-making
process. Researchers have found that this learning style is usually one of the most effective
and leaders to higher productivity, better contributions from group members and increased
group morale.

Characteristics of Democratic Leadership

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Some of the primary characteristics of democratic leadership include:

a) Group members are encouraged to share ideas and opinions, even though the
leader retains the final say over decisions.

b) Members of the group feel more engaged in the process.

c) Creativity is encouraged and rewarded.

Benefits of Democratic Leadership

Because group members are encouraged to share their thoughts, democratic


leadership can leader to better ideas and more creative solutions to problems. Group members
also feel more involved and committed to projects, making them more likely to care about the
end results. Research on leadership styles has also show that democratic leadership leads to
higher productivity among group members.

Free rein

Also known as laissez-faire, literally means giving complete freedom to subordinates.


To start with the manager decides the policy, programme and limitations for actions. Then the
entire process is left to the subordinates Here the group members perform everything and the
manager keeps liaison with outside only to get materials for the group to perform.
This style leaves everything to subordinates, who make their own decisions and it helps
subordinates to develop independent personality. But the contribution of the manager is nil
and it can create chaos. It may be creative with a free and informal work environment but can
lead to inefficiency if members are not capable of decision making or wrong decision makers.
All members are not leaders and hence can create frustration and non cooperation. With so
much of freedom there is a possibility that a member may put his individual interest above
the group interest.

9.10. THEORIES OF LEADERSHIP

Interest in leadership increased during the early part of the twentieth century. Early
leadership theories focused on what qualities distinguished between leaders and followers,
while subsequent theories looked at other variables such as situational factors and skill levels.
While many different leadership theories have emerged, most can be classified as one of
eight major types:

1. "Great Man" Theories:

Great Man theories assume that the capacity for leadership is inherent – that great
leaders are born, not made. These theories often portray great leaders as heroic, mythic and
destined to rise to leadership when needed. The term "Great Man" was used because, at the
time, leadership was thought of primarily as a male quality, especially in terms of military
leadership.

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2. Trait Theories:

Similar in some ways to "Great Man" theories, trait theories assume that people
inherit certain qualities and traits that make them better suited to leadership. Trait theories
often identify particular personality or behavioral characteristics shared by leaders. If
particular traits are key features of leadership, then how do we explain people who possess
those qualities but are not leaders? This question is one of the difficulties in using trait
theories to explain leadership.

3. Contingency Theories:

Contingency theories of leadership focus on particular variables related to the


environment that might determine which particular style of leadership is best suited for the
situation. According to this theory, no leadership style is best in all situations. Success
depends upon a number of variables, including the leadership style, qualities of the followers
and aspects of the situation.

4. Situational Theories:

Situational theories propose that leaders choose the best course of action based upon
situational variables. Different styles of leadership may be more appropriate for certain types
of decision-making.

5. Behavioral Theories:

Behavioral theories of leadership are based upon the belief that great leaders are
made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of
leaders not on mental qualities or internal states. According to this theory, people can learn to
become leaders through teaching and observation.

6. Participative Theories:

Participative leadership theories suggest that the ideal leadership style is one that
takes the input of others into account. These leaders encourage participation and
contributions from group members and help group members feel more relevant and
committed to the decision-making process. In participative theories, however, the leader
retains the right to allow the input of others.

7. Management Theories:

Management theories (also known as "Transactional theories") focus on the role of


supervision, organization and group performance. These theories base leadership on a system
of rewards and punishments. Managerial theories are often used in business; when employees
are successful, they are rewarded; when they fail, they are reprimanded or punished.

8. Relationship Theories:

Relationship theories (also known as "Transformational theories") focus upon the


connections formed between leaders and followers. Transformational leaders motivate and
inspire people by helping group members see the importance and higher good of the task.

73
These leaders are focused on the performance of group members, but also want each person
to fulfill his or her potential. Leaders with this style often have high ethical and moral
standards.

Qualities of leader

A leader with vision has a clear, vivid picture of where to go, as well as a firm grasp
on what success looks like and how to achieve it. But it’s not enough to have a vision; leaders
must also share it and act upon it. Jack Welch, former chairman and CEO of General Electric
Co., said, "Good business leaders create a vision, articulate the vision, passionately own the
vision and relentlessly drive it to completion."

A leader must be able to communicate his or her vision in terms that cause followers
to buy into it. He or she must communicate clearly and passionately, as passion is contagious.

A good leader must have the discipline to work toward his or her vision single-
mindedly, as well as to direct his or her actions and those of the team toward the goal. Action
is the mark of a leader. A leader does not suffer “analysis paralysis” but is always doing
something in pursuit of the vision, inspiring others to do the same.

Integrity is the integration of outward actions and inner values. A person of integrity
is the same on the outside and on the inside. Such an individual can be trusted because he or
she never veers from inner values, even when it might be expeditious to do so. A leader must
have the trust of followers and therefore must display integrity.

Honest dealings, predictable reactions, well-controlled emotions, and an absence of


tantrums and harsh outbursts are all signs of integrity. A leader who is centered in integrity
will be more approachable by followers.

Dedication means spending whatever time or energy is necessary to accomplish the


task at hand. A leader inspires dedication by example, doing whatever it takes to complete the
next step toward the vision. By setting an excellent example, leaders can show followers that
there are no nine-to-five jobs on the team, only opportunities to achieve something great.

Magnanimity means giving credit where it is due. A magnanimous leader ensures


that credit for successes is spread as widely as possible throughout the company. Conversely,
a good leader takes personal responsibility for failures. This sort of reverse magnanimity
helps other people feel good about themselves and draws the team closer together. To spread
the fame and take the blame is a hallmark of effective leadership.

Leaders with humility recognize that they are no better or worse than other members
of the team. A humble leader is not self-effacing but rather tries to elevate everyone. Leaders
with humility also understand that their status does not make them a god. Mahatma Gandhi is
a role model for Indian leaders, and he pursued a “follower-centric” leadership role.

Openness means being able to listen to new ideas, even if they do not conform to the
usual way of thinking. Good leaders are able to suspend judgment while listening to others’
ideas, as well as accept new ways of doing things that someone else thought of. Openness

74
builds mutual respect and trust between leaders and followers, and it also keeps the team well
supplied with new ideas that can further its vision.

Creativity is the ability to think differently, to get outside of the box that constrains
solutions. Creativity gives leaders the ability to see things that others have not seen and thus
lead followers in new directions. The most important question that a leader can ask is, “What
if …?” Possibly the worst thing a leader can say is, “I know this is a dumb question ... ”

Fairness means dealing with others consistently and justly. A leader must check all
the facts and hear everyone out before passing judgment. He or she must avoid leaping to
conclusions based on incomplete evidence. When people feel they that are being treated
fairly, they reward a leader with loyalty and dedication.

Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearly


state what one expects so that there will be no misunderstandings. A leader must be assertive
to get the desired results. Along with assertiveness comes the responsibility to clearly
understand what followers expect from their leader.

A sense of humor is vital to relieve tension and boredom, as well as to defuse


hostility. Effective leaders know how to use humor to energize followers. Humor is a form of
power that provides some control over the work environment. And simply put, humor fosters
good camaraderie. Intrinsic traits such as intelligence, good looks, height and so on are not
necessary to become a leader. Anyone can cultivate the proper leadership traits.

9.11. LET US SUM UP

The importance of direction, motivation and leader is very important in an


organisation It is the human element which handles the other resources of the organisation.
Each individual in the organisation is related with others and his functioning affects others
and, in turn, is affected by others.

9.12. KEY WORDS

a) Controlling
b) Leadership
c) Motivation
d) Autocratic
e) Free rein
f) Humors

9.13. SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York

2. Stephen P.Robbins, fundamental of management, Pearson 2003

75
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

9.14. ANSWER TO CHECK YOUR PROGRESS EXERCISE

a) Explain the process of directing

b) What is the characteristics of directing

c) What is motivation and explain the theories of motivation.

d) What is leadership and its importance.

e) Explain the types of leadership.

f) What are the qualities of a leader?

76
UNIT: 10 CONTROLLING NATURE AND TECHNIQUES
Structure
10.0 Aims and objectives
10.1 Introduction
10.2 View of control
10.3 Characteristics of control
10.4 Steps in controlling process
10.5 Effectiveness of control system
10.6 Let us sums up
10.7 Key words
10.8 Some Useful Books
10.9 Answer To Check Your Progress Exercise

10.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the views of control,


characteristics and the steps in control process

10.1 INTRODUCTION

This lesson gives us a detail idea about the views of control, controlling meaning,
characteristics of control and also the steps in controlling methods and the essentials of
control system

10.2. VIEWS OF CONTROL

Control is the process through which managers assure that actual activities conform to
planned activities. According to Breach - "Control is checking current performance against
predetermined standards contained in the plans, with a view to ensuring adequate progress
and satisfactory performance."

According to George R Terry - "Controlling is determining what is being


accomplished i.e., evaluating the performance and if necessary, applying corrective measures
so that the performance takes place according to plans."

According to Robert N Anthony - "Management control is the process by which


managers assure that resources are obtained and used effectively and efficiently."
In the words of Koontz and O'Donnell - "Managerial control implies measurement of
accomplishment against the standard and the correction of deviations to assure attainment
of objectives according to plans."

In the words of Haynes and Massie - "Fundamentally, control is any process that
guides activity towards some predetermined goal. The essence of the concept is in
determining whether the activity is achieving the desired results”.
Controlling:

Controlling is an important function of management. It is the process that measures


current performance and guides it towards some predetermined objectives. Under primitive

77
management, control was undertaken only when something went wrong and the objectives of
control was to reprimand the person responsible for these events and take action against him.
The modern concept of control envisages a system that not only provides a historical record
of what has happened to the business as a whole but also pinpoints the reasons why it has
happened and provides data that enable the manager to take corrective steps, if he finds he is
on the wrong track. Therefore, there is no intention to punish the person for wrongdoing, but
to find out the deviations between the actual performance and the standard performance and
to take steps to prevent such variances in future. The concept of control is often confused
with lack of freedom. The opposite of control is not freedom but chaos or anarchy. Control is
fully consistent with freedom. In fact, they are inter-dependent. Without control, freedom
cannot be sustained for long. Without freedom, control becomes ineffective. Both freedom
and accountability are embedded in the concept of control.

Planning

The planning lays the foundation for control as it sets the behavioural norms and
activities in the organization. Control measures these activities and behaviour in the
organization. Control is applied in order to remove any deviation in behaviour or norms.
Control shows that there are some goals and policies and standards. Planning process sets the
goals. The result of planning, policy and goal is control. Many information provideed by
control is used for planning and replanning. Thus planning precedes control and control
succeeds planning. Both are linked by actions only. You may refer the figure below.

Planning----------------------Actions------------------------- Controlling

Thus various elements of planning provide what is intended and expected and the
means by which the goals are achieved . These elements also provide a means for reporting
back the progress made against the goals and a general framework for new decisions and
actions in an integrated pattern. A very well conceived plan itself provides means for
effective control.

10.3 CHARACTERISTICS OF CONTROL

Managerial control has certain characteristic feature. They are:

 Control is the function of every manager. Managers at all levels have to perform this
function to contribute to the achievement of organisational objectives.

 Control leads to appraisal of past activities. The deviations in the past are revealed by
the control process. Corrective actions can be initiated accordingly.

 Control is linked with future, as past cannot be controlled. It should anticipate


possible deviations and to think of corrective action for the control of such deviations
in the future. It is usually preventive as presence of control system tends to minimize
wastages, losses and deviations from standards.

78
 Control is concerned with setting standards, measurement of actual performance,
comparison of actual performance with predetermined standards and bringing to light
the variations between the actual performance and the standard performance.

 Control implies taking corrective measures. The object in checking the variations or
deviations is to rectify them and prevent their recurrence. It is only action which
adjusts performance to predetermined standards whenever deviations occur.

 Control can be exercised only with reference to and or the basis of plans. To quote
Mary Cushing Niles - "Whereas planning sets the course, control observes deviations
from the course or to an appropriately changed one".

 To some people, control is opposite of freedom. This is not true. Control is based on
facts and figures. Its purpose is to achieve and maintain acceptable productivity from
all resources of an enterprise. Therefore, control aims at results and not at persons. It
is for correcting a situation, and not for reprimanding persons.

 Information or feedback is the guide to control. The feedback is helpful to the


manager to determine how far the operations are proceeding in conformity with plans
and standards, and where remedial action is called for.

 Control involves continuous review of standards of performance and results in


corrective action which may lead to change in the performance of other functions of
management. This makes control a dynamic and flexible process.

 Control is a continuous activity. It involves constant analysis of validity of standards,


policies, procedures etc.

10.4. STEPS IN CONTROL PROCESS

There are three basic steps in a control process:

1. Establishing standards.
2. Measuring and comparing actual results against standards.
3. Taking corrective action.

Establishing Standards

The first step in the control process is to establish standards against which results can
be measured. The standards the managers desire to obtain in each key area should be defined
as far as possible in quantitative terms. Standards expressed in general terms should be
avoided. Standards need to be flexible in order to adapt to changing conditions. The standard
should emphasis the achievement of results more than the conformity to rules and methods. If
they do not do so, then people will start giving more importance to rules and methods than to
the final results.
While setting the standards, the following points have to be borne in mind:

79
1) The standards must be clear and intelligible. If the standards are clear and are
understood by the persons concerned, they themselves will be able to check their
performance.

2) Standards should be accurate, precise, acceptable and workable.

3) Standards are used as the criteria or benchmarks by which performance is measured in


the control process. It should not be either too high or too low. They should be
realistic and attainable.

4) Standards should be flexible i.e., capable of being changed when the circumstances
require so.

Measuring and comparing actual Results against Standards

The second step in the control process is to measure the performance and compare it
with the predetermined standards. Measurement of performance can be done by personal
observation, by reports, charts and statements. If the control system is well organised, quick
comparison of these with the standard figure is quite possible. This will reveal variations.

After the measurement of the actual performance, the actual performance should be
compared with the standards fixed quickly. A quick comparison of actual performance with
the standard performance is possible, if the control system is well organised. While
comparing the actual performance with the standards fixed, the manager has to find out not
only the extent of variations but also the causes of variations. This is necessary, because some
of the variations may be unimportant, while others may be important and need immediate
corrective action by the manager.

Taking Corrective Action

After comparing the actual performance with the prescribed standards and finding the
deviations, the next step that should be taken by the manager is to correct these deviations.
Corrective action should be taken without wasting of time so that the normal position can be
restored quickly. The manager should also determine the correct cause for deviation. Taking
corrective action can be achieved in the following way:

1) The manager should try to influence environmental conditions and external situations
in such a way as to facilitate the achievement of goals.

2) He should review with his subordinates the instructions given earlier so that he may
be able to give clear, complete and reasonable instructions in future.

3) There are many external forces which cannot be adjusted by the manager. They have
to be accepted as the facts of the situation, and the executives should revise their plans
in the light of these changing forces.

10.5 ESSENTIALS OF EFFECTIVE CONTROL SYSTEMS

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1) Suitable: The control system should be appropriate to the nature and needs of the
activity. A large firm calls for controls different from those needed for a small firm. In
other words, control should be tailored to fit the needs of the organisation. The flow
of information concerning current performance should correspond with the
organizational structure employed. If a superior is to be able to control overall
operations, he must find a pattern that will provide control for individual parts.
Budgets, quotas and other techniques may be useful in controlling separate
departments.

2) Timely and Forward Looking: The control system should be such as to enable the
subordinates to inform their superiors expeditiously about the threatened deviations
and failures. The feedback system should be as short and quick as possible. If the
control reports are not directed at future, they are of no use as they will not be able to
suggest the types of measures to be taken to rectify the past deviations. A proper
system of control should enable the manager concerned to think of and plan for future
also.

3) Objective and Comprehensive: The control system should be both, objective and
understandable. Objective controls specify the expected results in clear and definite
terms and leave little room for argument by the employees. This is necessary both for
the smooth working and the effectiveness of the system.

4) Flexible: The control system should be flexible so that it can be adjusted to suit the
needs of any change in the environment. A sound control system will remain
workable even when the plans change or fail outright. It must be responsive to
changing conditions. It should be adaptable to new developments including the failure
of the control system itself. Plans may call for an automatic system to be backed up
by a human system that would operate in an emergency.

5) Economical: Economy is another requirement of every control. The benefit derived


from a control system should be more than the cost involved in implementing it. A
small company cannot afford the elaborate control system used by a large company. A
control system is justifiable if the savings anticipated from it exceed the expected
costs in its working.

6) Acceptable to Organisation Members: The system should be acceptable to


organisation members. When standards are set unilaterally by upper level managers,
there is a danger that employees will regard those standards as unreasonable or
unrealistic.

7) Motivate People to High Performance: A control system is most effective when it


motivates people to high performance. Since most people respond to a challenge,
successfully meeting to tough standard may well provide a greater sense of
accomplishment than meeting an easy standard. However, if a target is so tough that it
seems impossible to meet, it will be more likely to discourage than to motivate effort.

8) Corrective Action: Merely pointing of deviations is not sufficient in a good control


system. It must lead to corrective action to be taken to check deviations from standard
through appropriate planning, organizing and directing. In the words of Koontz and

81
O'Donnell, "An adequate control system should disclose where failure is occurring,
who is responsible for them and what should be done about them." A control system
will be of little use unless it can generate the solution to the problem responsible for
deviation from standards.

9) Reflection of Organisation Pattern: Organization is not merely a structure of duties


and function, it is also an important vehicle of control. In enforcing control the
efficiency and the effectiveness of the organisation must be clearly brought out.

10) Human Factor: A good system of control should find the persons accountable for
results, whenever large deviations take place. They must be guided and directed if
necessary.

11) Direct Control: Any control system should be designed to maintain direct contact
between the controller and controlled. Even when there are a number of control1
systems provided by staff specialists, the foreman at the first level is still important
because he has direct knowledge of performance.

12) Focus on Strategic Points: A good system of control not only points out the
deviations or exceptions but also pinpoints them where they are important or strategic
to his operations.

7. LET US SUM UP

Controlling is an important function of management. It is the process that measures


current performance and guides it towards some predetermined objectives. Under primitive
management, control was undertaken only when something went wrong and the objectives of
control was to reprimand the person responsible for these events and take action against him.

10.6 KEY WORDS

1) Controlling
2) Strategic points
3) Comprehensive
4) Organization members

10.7 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

10.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Explain about the characteristics of controlling


2. What are the steps in controlling
3. Write about the essential of effective control system.
4. Do you think it is so important to have a control system in the organization.?

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UNIT : 11 CO-ORDINATION THE ESSENCE OF MANAGEMENT
Structure
11.0 Aims and objectives
1I.1 Introduction
11.2 Definitions
11.3 Need for co-ordination
11.4 Techniques of co-ordination
11.5 Let us sum up
11.6 Key words
11.7 Some Useful Books
11.8 Answer To Check Your Progress Exercise

11.0. AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the basics of need of co-ordination,
techniques and also the importance.

11.1. INTRODUCTION

Co-ordination is the effort to ensure smooth interplay of functions and forces of all the
different parts of an organization so that its purpose will be realized with minimum of friction
and a maximum of collaborative effectiveness. Co-ordination is the process whereby an
executive develops an orderly pattern of group effort among his subordinates and secures
unity of action in the pursuit of common purpose- Co-ordination is a conscious and rational
process of pulling together the different parts of an organization and unifying them into a
team to achieve predetermined goals in an effective manner.

11.2. DEFINITIONS

Mooney and Reily,"co-ordination is the orderly arrangement of group effort to


provide unity of action in pursuit of a common purpose."

According to George Terry," the orderly syschromsation of efforts to provide the


proper amount, timing and direction of execution, resulting in harmonious and unified
actions to a stated objective."

Co-ordination as,"it makes diverse elements and sub-systems of an organisation to


work harmoniously towards the realisation of common objectives."

- Ordway Tead
According to Lundy, "co-ordination involves the development of unity of purpose and
the harmonious implementation of plans for the achievement of desired results."

Co-ordination consists of three elements viz., balancing, timing and integrating.

Nature/characteristics of co-ordination

83
 Co-ordination is not distinct function, but the very essence of management
 Co-ordination is the basic responsibility of management and it can be achieved
through managerial functions.
 Co-ordination does not arise spontaneously or by force. It is the result of conscious
and concerted action of management
 Co-ordination is a continuous and on-going process.

 Co-ordination is required in group efforts, not in individual efforts.

11.3 NEED FOR CO-ORDINATION

1. Reconciliation of goals

Co-ordination is aimed at reconciling or integrating the goals so as to bring unity of


action in the organization.

2. Total accomplishment

Co-ordination avoids duplication of efforts. Time and energy saved is used for
creative tasks to achieve better results. This is called synergy

3. Economy and efficiency

Co-ordination helps to improve the economy and efficiency of operations. Economy


occurs due to saving of time; and labor. Optimum use of scarce resources results in
efficiency.

4. Good human relations

Management can improve job satisfaction and morale of employees by co-ordinating


their interests with organisational goals. It avoids conflicts and encourages co-operation.

5. Retention of managerial and other personnel

Through co-ordination survival, growth and image of an organisation are ensured. It


can attract and retain competent and talented employees. Labour turnover and absenteeism
are minimized.

11.4. TECHNIQUES OF CO-ORDINATION

The important techniques of co-ordination are as follows,


a) Clearly defined goals
The goals of the organisation should be known to all the members. Everyone has to
contribute their best towards the attainment of the common goals.
b) Hierarchy

84
Hierarchy or chain of command is the simplest design for achieving co-ordination,
interdependent units are placed under one boss and by this coordination can be achieved. The
vertical authority structure is the supreme mechanism of co-ordination.

c) Harmonized policies, procedures, rules etc

Standard policies, procedures and rules are laid down by the management and these
help in achieving co-ordination in repetitive activities of sub-units. Clear-cut authority
relationships helps in reducing conflicts among different positions. The lines of authority and
responsibility should be clearly defined.

d) Co-operation

This is secured by encouraging informal contacts among people and by providing


interpersonal and interdepartmental contacts. Co-ordination becomes very easy when
individuals in the organisation are willing to help each other voluntarily. Ideal coordination is
self co-ordination by imparting friendly .atmosphere in the enterprise.

e) Sound organization structure

A good organisational setup with clearly defined authorities and responsibilities is an


effective means of integrating the activities of different units and sub-units in the enterprise.
Social and unofficial interactions and relationships are often more effective than formal
ones.

f) Committees

By forming committees, it is easy for the chief executives to co-ordinate the various
activities in the enterprise. This device removes the rigidity of the hierarchical structure,
promotes effective communication and understanding of ideas among the members of the
organization.

g) Climate of mutual trust and collaboration

Fostering of a climate of mutual trust and collaboration is also a co-ordinating


mechanism. One person should not give order to another but both should agree to take their
orders from the situation.

h) Co-ordination through liaison men

Liaison men helps in securing particularly external co-ordination. They provide


liaison among different branches or units of an organization.

i) Communication system

85
A good communication system contributes to effective co-ordination by promoting
mutual understanding and co-operation among different groups and individuals in the
organization.

j) Incentives

By providing incentives to the interdependent units also help in securing co-


ordination among those units-

I) Planning

Planning is a way of anticipating, interdependencies and thus forestalling or


mitigating the co-coordinating difficulties.
11.5 LET US SUM UP
Co-ordination is the effort to ensure smooth interplay of functions and forces of all the
different parts of an organization so that its purpose will be realized with minimum of friction
and a maximum of collaborative effectiveness.

11.6 KEY WORDS

Goals
Economy and efficiency
Human r relations
Techniques

11.7. SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

11.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE


1. Define the Co-ordination and the meaning of it.
2. Explain the need for co-ordination
3. Explain the techniques of co-ordination

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UNIT: 12 NEW TRENDS IN MANAGEMENT

Structure

12.0 Aims And Objectives

12.1 Introduction
12.2 Meaning
12.3 New Trends In International HRM
12.4 HR Managers Attention
12.5 HR Policies
12.6 Let Us Sum Up
12.7 Key Words
12.8 Some Useful Books
12.9 Answer To Check Your Progress Exercise

12.0. AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the new trends in HRM, HRM
manager attention, their policies.

12.1. INTRODUCTION

To understand the present trends in the HRM is so important. Indian organizations


are also witnessing a change in systems, management cultures and philosophy due to the
global alignment of Indian organizations. There is a need for multi skill development. Role of
HRM is becoming all the more important.

12.2. MEANING

Human resource management is a process of bringing people and organizations


together so that the goals of each other are met. The role of HR manager is shifting from that
of a protector and screener to the role of a planner and change agent. Personnel directors are
the new corporate heroes. The name of the game today in business is personnel. Nowadays it
is not possible to show a good financial or operating report unless your personnel relations
are in order.

Some of the recent trends that are being observed are as follows:

1) The recent quality management standards ISO 9001 and ISO 9004 of 2000 focus
more on people centric organizations. Organizations now need to prepare themselves
in order to address people centered issues with commitment from the top
management, with renewed thrust on HR issues, more particularly on training.

87
2) Charles Handy also advocated future organizational models like Shamrock, Federal
and Triple I. Such organizational models also refocus on people centric issues and call
for redefining the future role of HR professionals.

3) To leapfrog ahead of competition in this world of uncertainty, organizations have


introduced six- sigma practices. Six- sigma uses rigorous analytical tools with
leadership from the top and develops a method for sustainable improvement. These
practices improve organizational values and helps in creating defect free product or
services at minimum cost.

4) Human resource outsourcing is a new accession that makes a traditional HR


department redundant in an organization. Exult, the international pioneer in HR BPO
already roped in Bank of America, international players BP Amoco & over the years
plan to spread their business to most of the Fortune 500 companies.

5) With the increase of global job mobility, recruiting competent people is also
increasingly becoming difficult, especially in India. Therefore by creating an enabling
culture, organizations are also required to work out a retention strategy for the
existing skilled manpower.

12.3. NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and


functions such as relocation, orientation and translation services to help employees adapt to a
new and different environment outside their own country.

1. Selection of employees requires careful evaluation of the personal


characteristics of the candidate and his/her spouse.

2. Training and development extends beyond information and orientation


training to include sensitivity training and field experiences that will enable
the manager to understand cultural differences better. Managers need to be
protected from career development risks, re-entry problems and culture shock.

3. To balance the pros and cons of home country and host country evaluations,
performance evaluations should combine the two sources of appraisal
information.

4. Compensation systems should support the overall strategic intent of the


organization but should be customized for local conditions.

5. In many European countries - Germany for one, law establishes


representation. Organizations typically negotiate the agreement with the
unions at a national level. In Europe it is more likely for salaried employees
and managers to be unionized.

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HR Managers should do the following things to ensure success-

• Use workforce skills and abilities in order to exploit environmental opportunities and
neutralize threats.

• Employ innovative reward plans that recognize employee contributions and grant
enhancements.

• Indulge in continuous quality improvement through TQM and HR contributions like


training, development, counseling, etc

• Utilize people with distinctive capabilities to create unsurpassed competence in an


area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc.

• Decentralize operations and rely on self-managed teams to deliver goods in difficult


times e.g. Motorola is famous for short product development cycles. It has quickly
commercialized ideas from its research labs.

• Lay off workers in a smooth way explaining facts to unions, workers and other
affected groups e.g. IBM, Kodak, Xerox, etc.

12.4. HR MANAGERS TODAY ARE FOCUSING ATTENTION ON THE


FOLLOWING-

a) Policies- HR policies based on trust, openness, equity and consensus.

b) Motivation- Create conditions in which people are willing to work with zeal,
initiative and enthusiasm; make people feel like winners.

c) Relations- Fair treatment of people and prompt redress of grievances would pave the
way for healthy work-place relations.

d) Change agent- Prepare workers to accept technological changes by clarifying doubts.

e) Quality Consciousness- Commitment to quality in all aspects of personnel


administration will ensure success.

12.5 HR POLICIES

Due to the new trends in HR, in a nutshell the HR manager should treat people as
resources, reward them equitably, and integrate their aspirations with corporate goals through
suitable HR policies.

The HR profession as a result, is gaining both respect and attention—the kind that
comes from being in the hot seat. As such, there are some trends one must be aware of:

Changing role

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Talent shortage is the highest risk for Indian business. Recognizing this, Chief
executives have taken on the roles for strategic HR management. HR executives are
themselves becoming C - level executives. How HR managers will contribute and how
seriously they will be taken depends on the big leap that the majority of HR managers today
will take. Increasingly, more is being expected from HR practitioners and they need to
broaden their skill-sets so that they can sit at the board table and understand as much about
the businesses as the other leaders.

Accountability

If HR professionals want to be enabler of business strategies, they need to make


significant contributions to the bottom line through expense reduction, or revenue generation,
talent management and risk mitigation. CEOs are demanding that HR stop giving lip service
to strategic performance and find metrics that prove that they are contributing to the growth
and performance of the company through effective people management.

War for talent

The most important corporate resource over the next 20 years will be talent, smart,
technologically literate, globally astute and operationally agile workforce. Today’s HR
departments will have to become talent departments. Traditional workforce planning is being
replaced by talent strategies and skills gap analysis. The key to attracting and retaining scarce
skills is for companies to be, and be seen to be, a first-tier employer that can meet the needs
of high potential / performance employees.

Marketing practices will need to be applied to recruitment. Employer branding with a


strong differentiator are imperative. Rather than positioning as “we are a big successful
company,” positioning as delivering on the promise of continuous learning, work-life
balance, fulfilling roles and innovative rewards and recognition is important.

Outsourcing

HR outsourcing is a growing trend. Today HR professionals are hardly hired for their
ability to process employee information, sort resumes or process payroll on time. Instead, HR
is expected to deliver value in areas like organisational effectiveness, talent management,
change management, leadership development, succession planning, merger integration,
strategic compensation, etc. The primary benefit of HR outsourcing is that it will allow the
leaders to tackle these more strategic issues. HR needs to embrace outsourcing to reduce
costs and get access to higher levels of service.

Healthy workplace

There is a definite link between work environment and the well being of its
employees and between employee health and the bottom line. Long working hours, travel,
competition, deadlines are the key causes of stress and burnout. Environment and lifestyle are
creating a new health crisis amongst urban professionals, increasing the risk of infections,
heart and back problems or mental stress. “Presenteeism” where employees come into work
but cannot work at optimal levels is a growing concern. Companies must consider the full
humanity of their people, looking at them not just as people with jobs and career, but as
people with families, friends, beliefs, interests, passions, worries and futures.

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Diversity

For the Indian private sector, diversity as a business strategy has preceded the
employment equity criteria, which has only now begun to be adopted by a few companies on
a voluntary basis. Diversity goes beyond nationalities, gender, colour, race or religion. It is
also about managing the demographic and psychographic characteristics of an evolving
workforce. It will take a whole new level of education of tolerance. HR will need to provide
cross-cultural support and training to virtual global teams.

Impact of technology

Eventually technology is going to eliminate most HR jobs as they exist nowadays.


Technology with 24X7 communication capabilities, coupled with outsourcing, guarantees
there will be smaller HR departments in companies. Today CRM has given way to ERM -
Employee Relationship Management. Employees can self manage activities previously
handled by HR departments. Technology will also help people connect within the work
environment regardless of time and place as organisations are becoming physically local, yet
virtually global.

Talent management

Talent management with a focus on soft skills, leadership development and


succession planning is the defining trend in HR. In India, technically qualified people are
easier to find. But what companies require is a domain expert with managerial skills to
leverage that expertise in the interest of the company. Selections are increasingly based on
soft skills such as attitude, ethics, or people skills.

Today one’s educational qualification is just not enough to get a job. This becomes
even more important as we go up the pyramid to middle, senior and top level managers. One
of the scarcest capabilities is leadership.

As organisations, their customers, employees and their environment become more


global and competitive, the competency requirements for successful leadership are increasing
exponentially. Leadership comes with empowerment and changing work-cultures across the
levels through continuous learning, skill development and change management.

We now live in a world where the job and job requirements are constantly changing.
Many of us are in jobs that didn’t exist three years back and three years from now many of us
will be in jobs that don’t exist now. In this context, succession planning needs to be re-
engineered, to focus on competencies rather than positions. Thus succession planning will
evolve into something broader talent management, regardless of organisation structure.

12.6. LET US SUM UP

Human resource management is a process of bringing people and organizations


together so that the goals of each other are met. The role of HR manager is shifting from that
of a protector and screener to the role of a planner and change agent. Personnel directors are
the new corporate heroes.

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12.7. KEY WORDS

1. New trends
2. Planning
3. Technology
4. Talent management
5. Diversity

12.8 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

12.9 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Explain the importance of having a updated role of the HR policies.


2. Write about HR policies.
3. Suggest a few ways in which HR policies can be made more effectives.
4. Write about the new trends in HRM.

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UNIT-13 : EVOLUTION, CHALLENGES AND OPPORTUNITIES OF
ORGANIZATIONAL BEHAVIOR
Structure
13.0 Aims and objectives
13.1 Introduction
13.2 Concepts
13.3 Nature Of Organizational Behavior
13.4 Disciplines related to OB
13.5 Let us sum up
13.6 Key words
13.7 Some Useful Books
13.8 Answer To Check Your Progress Exercise
13.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the concepts relating to OB, nature,
and disciplines.

13.1 INTRODUCTION

This lesson gives us a clear picture about the evolution, challenges and the
opportunities of the organization behavior. We can define the term organization as two or
more individuals who are interacting with each other within a deliberately structured set up
and working in an interdependent way to achieve some common objectives.. Organizations
play a major role in our lives.

13.2 CONCEPTS

Before attempting to define organizational behavior, let us understand what


organizational behavior is. In our daily life we come across a lot of organizations that consists
of business, schools, hospitals, transport, banking, government and such service
organizations. We also know that different category of people in different cadre are working
and interacting in these organizations. The temperaments, responses and behavior of these
people in different cadres are also different. Thus for example, the services rendered by
Citibank are considered to be better than that rendered by any equivalent Indian bank. Why?
The services of Tata group are far different from the services of Birla group. What makes this
difference?

Obviously the way in which people in these organizations act, react and behave are
different resulting in different performance and productive output of these organizations.
Hence a study in detail about the behaviour of people in organizations, accumulating
knowledge about the behaviour for further research has become extremely important . From
the accumulated knowledge you can develop some tools so as to apply the same to find out
how people act within organizations. In a nutshell you can conclude that wherever there is
organization, there is a definitely a need to study and understand the organizational
behaviour.

We can define the term organization as two or more individuals who are interacting
with each other within a deliberately structured set up and working in an interdependent way

93
to achieve some common objectives.. Organizations play a major role in our lives. We
possibly cannot think of a single moment in our lives when we are not depending on
organizations in some form or the other. Right From the public transport that you use to come
to your institute, the Institute itself, the class you are attending at this moment, are all
examples of organizations.

The behavior of the people working in an organization to achieve common goals or


objectives. Organization comprises of people with different attitudes, cultures, beliefs, norms
and values.

So now, lets understand organizational behavior and what it exactly it means

‘Organizational Behaviour’ can be defined as the study of what people think, feel, and
do in and around organizations. The study of Organizational Behavior facilitates the process
of explaining, understanding, predicting, maintaining, and changing employee behavior in an
organizational setting. The value of organizational behavior is that it isolates important
aspects of the manager’s job and offers specific perspective on the human side of
management :

-people as organizations
- people as resources
-people as people

In other words, it involves the understanding, prediction and control of human


behaviour and factors affecting their performance and interaction among the organizational
members. And because organizational behavior is concerned specifically with employment –
related situations, you should not be surprised to find that it emphasizes behavior as related to
concerns such as jobs, work, absenteeism, employment turnover , productivity, human
performance and management

13.3 Nature of Organizational Behavior (OB)

Organizational behavior is an applied behavioral science that is built on contributions


from a number of behavioral disciplines such as psychology, sociology, social psychology,
anthropology and economics.

13.4 . DISCIPLINES RELATED TO OB

1. Psychology. Psychology is the study of human behavior which tries to identify the
characteristics of individuals and provides an understanding why an individual
behaves in a particular way. This thus provides us with useful insight into areas such
as human motivation, perceptual processes or personality characteristics.

2. Sociology. Sociology is the study of social behavior, relationships among social


groups and societies, and the maintenance of social order. The main focus of attention
is on the social system. This helps us to appreciate the functioning of individuals
within the organization which is essentially a socio-technical entity.

3. Social psychology. Social psychology is the study of human behaviour in the context
of social situations. This essentially addresses the problem of understanding the

94
typical behavioural patterns to be expected from an individual when he takes part in a
group.

4. Anthropology. Anthropology is the science of mankind and the study of human


behaviour as a whole. The main focus of attention is on the cultural system, beliefs,
customs, ideas and values within a group or society and the comparison of behaviour
among different cultures. In the context of today’s organizational scenario. It is very
important to appreciate the differences that exist among people coming from different
cultural backgrounds as people are often found to work with others from the other
side of the globe.

5. Economics. Any organization to survive and sustain must be aware of the economic
viability of their effort. This applies even to the non-profit and voluntary
organizations as well.

6. Political Science. Although frequently overlooked, the contributions of political


scientists are significant to the understand arrangement in organizations. It studies
individuals and groups within specific conditions concerning the power dynamics.
Important topics under here include structuring Of Conflict, allocation of power and
how people manipulate power for individual self-interest etc.

Organizational behavior as a discipline

By now you have understood that man is a social animal and that he is successful
more as an organizational member than as an individual. And modern society is full of large
organizations which are complex in nature. These organizations increasingly control every
sphere of human activity. The importance of organizations gets a shot in the arm when a
separate discipline ‘organizational behaviour’ itself has been established. There are of course
other fields of study like Behaviourial science, Organization Theory etc but they all treat
organization as a common entity.

In fact organizational behaviour is not a discipline by itself but rather an integration of


concepts on sociology, psychology, anthropology etc. into the study of people’s behaviour
within the organizations.

Aldag and Brief define OB as “A branch of the social sciences that seeks to build
theories that can be applied to predicting, understanding and controlling behaviour in work
organizations”. Callahan et al defined OB as a subset of management activities concerned
with understanding, predicting and influencing individual behaviour in organizational
settings.

In other words OB applies knowledge about individuals, groups and the effect of
organizational structure on behaviour towards the end of making the organization work more
efficiently. It is difficult to fix a particular nature for OB,.as this field is undergoing changes
over time. However you can identify its today’s nature through a study of the characteristics
of O.B.

Important elements of OB

95
The key elements in OB are people, structure, technology and the external
environment in which the organization operates. People are recruited by the organization so
as to achieve the objective. This calls for a definite structure of the organization. The
organization also needs technology to help in getting the job done. Thus there is an
interaction of people, the external environmental influences, structure and technology..

People

Organization External Environment

Structure Technology

Key Elements in organization behavior

The employees constitute the social system of an organization, consisting of


individuals, groups and large groups and small groups. Some may be formal while others
may be informal. It must be noted that the groups are ever changing and hence are dynamic.
They may also disband. The individuals in organizations are thinkers, feelers and living
emotional beings. The organizations hence exist to serve these members and people do not
exist to serve organizations.

13.5. LET US SUM UP

We can define the term organization as two or more individuals who are interacting
with each other within a deliberately structured set up and working in an interdependent way
to achieve some common objectives.. Organizations play a major role in our lives. We
possibly cannot think of a single moment in our lives when we are not depending on
organizations in some form or the other

13.6. KEY WORDS

 Psychology
 Sociology
 Anthropology
 Political science

13.7. SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York

2. Stephen P.Robbins, fundamental of management, Pearson 2003

3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

96
13.8. ANSWER TO CHECK YOUR PROGRESS EXERCISE
1. Discuss the concepts of organization behavior.
2. Explain the nature of organization behavior.
3. What are the disciplines related to organization behavior.
4. What are the important elements of organization behavior.

97
UNIT: 14 PERSONALITY AND BEHAVIORAL ASSESSMENT
Structure
14.0 Aims and objectives
14.1Introduction
14.2 Definition
14.3 Major determinants of personality
14.4 Personality characteristics in organizations
14.5 Let us sum up
14.6 Key words
14.7 Some Useful Books
14.8 Answer To Check Your Progress Exercise

14.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the determinants of personality,


characteristics.

14.1 INTRODUCTION

This lesson gives us a clear idea about personality which have a great influence on
the organization and also on the person. The major determinants of the personality is
determined by various factors and also the characteristics is explained in detail in this lesson.

14.2 DEFINITION

Though psychologists and social scientists unanimously agree to the importance of


personality, they are unable to come out with a unanimous definition. Many authorities on the
subject have defined personality in different ways. Some of the definitions are reproduced
below:

Probably the most meaningful approach would be to include both the person and the
role as Floyd L Ruch does in his definition. He states that: "the human personality includes:

i. External appearance and behaviour or social stimulus value


ii. Inner awareness of self as a permanent organizing force
iii. The particular pattern or organization of measurable traits, both "inner and
"outer"."

Gordon Allport gave the most frequently used definition of personality nearly 70
years ago. He said personality is "the dynamic organization within the individual of those
psychophysical systems that determine his unique adjustments to his environment".

James D Thompson and Donald Van Houten define personality as - "a very diverse
and complex psychological concept. The word "personality" may mean something like
outgoing, invigorating interpersonal abilities … but we must also recognize and explain the
fact that development results in man acquiring a distinctiveness or uniqueness which gives
him identity which enables him and us to recognize him as apart from others. These
distinguishing characteristics are summarized by the term personality".

98
14.3 MAJOR DETERMINANTS OF PERSONALITY

Personality appears to be a result of both influences. Additionally, today we recognize


another factor - the situation. The problem lies in the fact the cognitive and psychological
processes, plus many other variables, all contribute to personality. The determinants of
personality can perhaps best be grouped in five broad categories:

1. Biological,
2. Cultural,
3. Family
4. Social
5. Situational.

Biological Factors

The study of the biological contributions to personality may be studied under three heads:

1) Heredity: Heredity refers to those factors that were determined at conception.


Physical stature, facial attractiveness, sex, temperament, muscle composition and
reflexes, energy level, and biological rhythms are characteristics that are considered to
be inherent from one’s parents. The heredity approach argues that the ultimate
explanation of an individual's personality is the molecular structure of the genes,
located in the chromosomes. Research on animals has showed that both physical and
psychological characteristics can be transmitted through heredity. But research on
human beings is inadequate to support this viewpoint. However, psychologists and
geneticists have accepted the fact that heredity plays an important role in one's
personality.

2) Brain: The second biological approach is to concentrate on the role that the brain
plays in personality. The most recent and exciting possibilities come from the work
done with electrical stimulation of the brain (ESB) and split-brain psychology.
Preliminary results from the electrical stimulation of the brain (ESB) research give
indication that better understanding of human personality and behaviour might come
from the study of the brain. Work with ESB on human subjects is just beginning.
There seem to be definite pleasurable and painful areas in the human brain. This being
true, it may be possible physically to manipulate personality through ESB.

3) Biofeedback:. In BFT the individual learns the internal rhythm of a particular body
process through electronic signals feedback from equipment that is wired to the body
area. From this biofeedback the person can learn to control the body process in
question. More research is needed on biofeedback before any definitive conclusions
can be drawn. But its potential impact could be extremely interesting for the future.

4) Physical features: A vital ingredient of the personality, an individual's external


appearance, is biologically determined. The fact that a person is tall or short, fat or
skinny, black or white will influence the person's effect on others and this in turn, will
affect the self-concept. Practically all would agree that physical characteristics have at
least some influence on the personality. If personality characteristics were completely
dictated by heredity, they would be fixed at birth and no amount of experience could

99
alter them. But personality characteristics are not completely dictated by heredity.
There are other factors, which also influence personality.

Cultural Factors

Among the factors that exert pressures on our personality formation are the culture in
which we are raised, our early conditioning, the norms among our family, friends and social
groups and other influences we experience. Traditionally, cultural factors are usually
considered to make a more significant contribution to personality than biological factors. The
culture largely determines attributes toward independence, aggression, competition, and
cooperation. Culture requires both conformity and acceptance from its members. There are
several ways of ensuring that members comply with the dictates of the culture. The
personality of an individual to a marked extent is determined by the culture in which he or
she is brought up. It follows that a person reared in a western culture has a different
personality from a person reared in our Indian culture.

Family Factors

Whereas the culture gene rally prescribes and limits what a person can be taught, it is
the family, and later the social group, which selects, interprets and dispenses the culture.
Thus, the family probably has the most significant impact on early personality development.
A substantial amount of empirical evidence indicates that the overall home environment
created by the parents, in addition to their direct influence, is critical to personality
development. The parents play an especially important part in the identification process,
which is important to the person's early development. According to Mischel, the process can
be examined from three different perspectives.

 Identification can be viewed as the similarity of behaviour including feelings and


attitudes between child and model.

 Identification can be looked at as the child's motives or desires to be like the model.

 It can be viewed as the process through which the child actually takes on the attributes
of the model.

From all three perspectives, the identification process is fundamental to the


understanding of personality development. The home environment also influences the
personality of an individual. Siblings (brothers and sisters) also contribute to personality.

Social Factors

There is increasing recognition given to the role of other relevant persons, groups and
especially organizations, which greatly influence an individual's personality. This is
commonly called the socialization process. Socialization involves the process by which a
person acquires, from the enormously wide range of behavioural potentialities that are open
to him or her. Socialization starts with the initial contact between a mother and her new
infant. After infancy, other members of the immediate family – father, brothers, sisters and
close relatives or friends, then the social group – peers, school friends and members of the
work group, play influential roles. Socialization process is especially relevant to
organizational behaviour because the process is not confined to early childhood, taking place

100
rather throughout one's life. In particular, evidence is accumulating that socialization may be
one of the best explanations for why employees behave the way they do in today's
organizations.

Situational Factors

Human personality is also influenced by situational factors. The effect of environment


is quite strong. Knowledge, skill and language are obviously acquired and represent
important modifications of behaviour. An individual's personality, while generally stable and
consistent, does change in different situations. The different demands of different situations
call forth different aspects of one's personality.

14.4. PERSONALITY CHARACTERISTICS IN ORGANIZATIONS

Managers should learn as much as possible about personality in order to understand


their employees. Hundreds of personality characteristics have been identified. We have
selected eight characteristics because of their particular influences on individual behaviour in
organizations. They are:

1. Locus of Control
2. Machiavellianism
3. Self-esteem
4. Self-efficacy
5. Self-monitoring
6. Positive/Negative affect
7. Risk Taking
8. Type A Personality,

Locus of Control

Some people believe they are masters of their own fate. Other people see themselves
as pawns of fate, believing that what happens to them in their lives is due to luck or chance.
An individual's generalized belief about internal (self) versus external (situation or others)
control is called locus of control.

 Internals: Those who believe they control their destinies have been labeled internals.
Internals (those with an internal locus of control) have been found to have higher job
satisfaction, to be more likely to assume managerial positions, and to prefer
participative management styles. In addition, internal's have been shown to display
higher work motivation, hold stronger beliefs that effort leads to performance, receive
higher salaries and display less anxiety than externals (those with an external locus of
control).

 Externals: Externals are those individuals who believe that what happens to them is
controlled by outside forces such as luck or chance. Externals prefer a more structured
work setting and they may be more reluctant to participate in decision making. They
are more compliant and willing to follow directions. Research on locus of control has
strong implications for organizations. A large amount of research comparing internals
with externals has consistently shown that individuals who rate high in externality are
less satisfied with their jobs, have higher absenteeism rates, are more alienated from

101
the work setting, and are less involved on their jobs than internals. Because internals
believe they control what happens to them, they will want to exercise control in their
work environment. Allowing internals considerable voice is how work is performed is
important. Internals will not react well to being closely supervised. Externals, in
contrast, may prefer a more structured work setting, and they may be more reluctant
to participate in decision-making. Therefore, internals do well on sophisticated tasks –
which includes most managerial and professional jobs – that require complex
information processing and learning. Additionally, internals are more suited to jobs
that require initiative and independence of action. In contrast, externals should do well
on jobs that are well structured and routine and where success depends heavily on
complying with the directions of others.

Machiavellianism

The primary method for achieving power that he suggested was manipulation of
others. Machiavellianism then is a personality characteristic indicating one's willingness to do
whatever it takes to get one's way. An individual high in Machiavellianism is pragmatic,
maintains emotional distance and believes that ends can justify means. "If it works use it", is
consistent with a high-Mach perspective.

a) When they interact face to face with others rather than indirectly;

b) When the situation has a minimum number of rules and regulations thus allowing
latitude for improvisation; and

c) When emotional involvement with details irrelevant to winning distracts low-Mach's.

A high-Mach individual behaves in accordance with Machiavelli's ideas, which


include the notion that it is better to be feared than lived. High-Machs tend to use deceit in
relationships have a cynical view of human nature and have little concern for conventional
notions of right and wrong. They are skilled manipulators of other people, relying on their
persuasive abilities. High-Machs are suitable in jobs that require bargaining skills or where
there are substantial rewards for winning (example commissioned sales).

Self-Esteem

Self-esteem is an individual's general feeling of self-worth. Individuals with high self-


esteem have positive feelings about themselves, perceive themselves to have strength as well
as weaknesses, and believe their strengths are more important than their weaknesses.
Individuals with low self-esteem view themselves negatively. They are more strongly
affected by what other people think of them, and they compliment individuals who give them
positive feedback while cutting down people who give them negative feedback. Research on
self-esteem (SE) offers some interesting insights into organisational behavior.

i) High-SEs: People with High Ses

 Believe they possess more of the ability they need in order to succeed at work, will
take more risks in job selection and are more likely to choose unconventional jobs,
are more satisfied with their jobs.

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ii) Low-SEs: - People with low Ses

 Are more susceptible to external influence, depend on the receipt of positive


evaluations from others, l tend to be concerned with pleasing others and therefore, are
less likely to take unpopular stands, and l are less satisfied with their jobs.

 Self-esteem may be strongly affected by situations. Success tends to raise self-esteem,


whereas failure tends to lower it. Given that high self-esteem is generally a positive
characteristic; managers should encourage employees to raise their self-esteem by
giving them appropriate challenges and opportunities for success.

Self-Efficacy

Self-efficacy refers to an individual's belief that he or she is capable of performing a


task. The higher your self-efficacy, the more confidence you have in your ability to succeed
in a task. So, in difficult situations, we find that people with low self-efficacy are more likely
to lessen their effort or give up altogether whereas those with high self-efficacy will try
harder to master the challenge. In addition, individuals high in self- efficacy seem to respond
to negative feedback with increased effort and motivation; those low in self-efficacy are
likely to lessen their effort when given negative feedback. Individuals with high self-efficacy
believes that they have the ability to get things done, that they are capable of putting forth the
effort to accomplish the task, and that they can overcome any obstacles to their success.

Self-Monitoring

A characteristic with great potential for affecting behaviour in organisations is self


monitoring. Self-monitoring refers to an individual's ability to adjust his or her behaviour to
external situational factors. High self-monitors pay attention to what is appropriate in
particular situations and to the behaviour of other people, and they behave accordingly. Low
self-monitors, in contrast, are not as vigilant to situational cues and act from internal states
rather than paying attention to the situation. As a result, the behaviour of low self-monitors,
because their behaviour varies with the situation appear to be more unpredictable and less
consistent. High self-monitors are capable of presenting striking contradictions between their
public persona and their private self. Low self-monitors can't disguise themselves this way.

Positive/Negative Effect

Individuals who focus on the positive aspects of themselves, other people, and the
world in general are said to have positive effect. In contrast, those who accentuate the
negative in themselves, others, and the world are said to possess negative affect. Employees
with positive effect are absent from work less often. Individuals with negative effect report
more work stress. Negative individual effect produces negative group effect and this leads to
less cooperative behaviour in the work group. Managers can do several things to promote
positive effect, including allowing participative decision making and providing pleasant
working conditions.

14.5 . LET US SUM UP

This lesson gives us a clear idea about personality which have a great influence on
the organization and also on the person. The major determinants of the personality are

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determined by various factors and also the characteristics are explained in detail in this
lesson. Though psychologists and social scientists unanimously agree to the importance of
personality, they are unable to come out with a unanimous definition. Many authorities on the
subject have defined personality in different ways.

14.6 . KEY WORDS

o Biological,
o Cultural,
o Family
o Social
o Situational

14.7 SOME USEFUL BOOKS


1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

14.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE


1. List few definitions of Personality.
2. What are the major determinant of personality
3. Explain the different personality characteristics in organizations.
4. Explain the importance of personality.

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UNIT – 15 EMOTIONS AND LEARNING
Structure
15.0 Aims and objectives
15.1 Introduction
15.2 Components
15.3 Purpose of emotions
15.4 Types of emotions
15.5 Learning
15.6 Types of learning
15.7 Learning theories
15.8 Let us sum up
15.9 Key words
15.10 Some Useful Books
15.11 Answer To Check Your Progress Exercise

15.0 AIMS AND OBJECTIVES

The main objective of the lesson is to understand about purpose, types and learning
and the theories.

15.1 INTRODUCTION

A mental state that arises spontaneously rather than through conscious effort and is
often accompanied by physiological changes; a feeling: the emotions of joy, sorrow,
reverence, hate, and love.

15.2. COMPONENTS OF EMOTIONS:

Emotion has two components

1. Facial expression of emotion


2. Feeling of emotion

Facial expression of emotions is due to isometric contraction (shortening) of muscles


of facial expression around the mouth.

Feeling of emotions is due to isotonic contraction (increase or decrease) in the


hardness) of the muscles of facial expression.

Emotion is the exchange rate of a sensation or a movement.

Thus there is a sensory emotion and a motor emotion.

There is simultaneous change in tone of Unified Skeletal Muscle (USM) and therefore
we feel an emotion in the entire body. Unified Skeletal Muscle is a physiological state of the
skeletal muscular system in which all the skeletal muscles of the body isometrically contract
or relax as though they were a single skeletal muscle. At rest the tone of the USM is 50%.

15.3. PURPOSE OF EMOTIONS:

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There are various sensations in the body like heat, light, pressure, taste, etc. The
movements are infinite. How is it possible to compare them? How to compare a song with the
taste of coffee? This comparison of the incomparable is made possible by emotions.

Whenever there is a sensation or movement the tone of the USM changes indicating
the exchange value of the sensation or movement. By comparing the change in tone induced
by every sensation and movement we can compare them.

Positive and Negative emotions:

Since at rest the tone of the USM is 50% a sensation can increase it or decrease it.
Positive emotion increases the tone of the USM and Negative emotions decrease it.

Sensory emotions:

Sensory emotion is the change in tone of the USM induced by sensations.


There are two basic sensory emotions. They are,

1. Pleasure - Positive sensory emotion


2. Displeasure - Negative sensory emotion

Motor emotions:

Motor emotion is the change in tone of the USM induced by movements.


There are two basic motor emotions. They are,

1. Anger - Positive motor emotion


2. Fear - Negative motor emotion

Components of emotions

Emotions have two components.

They are;

1. Feeling of Emotions
2. Facial expression of emotions.

Feeling of an emotion is due to isometric contraction or hardening of a pair of


muscles of facial expression and facial expression is due to isotonic contraction or shortening
of the same muscle. We have many sensations like touch, pressure, vision, hearing, taste,
heat, etc. How is it possible for us to compare these with one another?

Emotions enable us to compare sensations. Every sensation produces a sensory


emotion. By comparing the sensory emotions produced we can indirectly compare the
sensations.

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Usually sensations occur in combination. Thus, taste may be associated with smell
and heat. Emotions enable us to compare two groups of sensations also. Thus, it can enable
us to compare a pizza with a movie! Thus, feeling of emotions enables us to determine our
preferences and priorities.

Sensory and motor emotions:

There are two basic emotions that we can feel and express.

1. Sensory emotions - pleasure and displeasure


2. Motor emotions - anger and fear.

Sensory emotions enable us to know whether a sensation is good or bad. Motor


emotions inform us whether something has to be done or not and also whether something can
be done or not.

Facial expression of emotions:

While we can feel sensations we can't convey their magnitude to others. Facial
expression of emotions enables us to convey to others the magnitude of the sensation we feel
to others.

1. Purposes of feeling of emotions:

1. Feeling of Sensory and motor emotions act as compasses and guide us to take the
right path while taking care of our sensations.

2. Feeling of emotions also plays a vital role in thinking and dreaming.

2. Purposes of facial expression of emotions:

1. Facial expression of emotions enable us to convey the magnitude of our sensations


to others and also to what extent we are ready to go to rectify them.

2. Since these muscles are under our control they enable us to create an illusion in
others that we are greater or simpler than what we actually are.

15.4. TYPES OF EMOTIONS

At one time or another we all experience strong feelings that accompany positive or
negative emotions. A day without feeling emotions would be impossible to imagine. Each
day we feel dozens of emotions; the excitement of going on holidays, the fear of flying, or the
grief of losing a family member.

If we tried to list all of the words in the English language to describe emotions, we
would end up with hundreds of them. One thing for sure, we do feel many of them in our
everyday life. We usually have no problem identifying the emotion that we are experiencing
at a given time. We will take you on an interactive journey through your body to learn more
about your emotions.

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15.5 LEARNING

The behavioural scientists say, “learning can be defined as relatively permanent


change in the present or potential behaviour that occurs as a result of experience or reinforced
practice”. So the definition confirms that there must be change in the behaviour after
learning. This change can be for better or worse than the previous behaviour. You learn to
drive a car and you did not know this before.. You use the driving skills as long as you want
and this is a permanent change in you. The other word in the definition says that the change
occurs due to experience and not due to change in biological growth like a child growth. You
do not learn to drink or eat, it is natural pick. But learning must result from interaction with
environment and that is how you learn word-processing, software design etc.The experience
can be direct like a typing instructor teaching you or indirect by observing others doing a job.
For example when you observe the quality performance of coworkers end up in rewards for
them, you also begin to emulate them. Some incidents do not change your present behaviour
but can change your potential behaviour. Thus when you hear that driving through a
particular area is dangerous after 10 P.M. and if you come across the news of a passer-by
having been beaten up by dacoits, you will resist such attempts. All said and done the four
important aspects of learning are

1) Learning is possible only through experience.

2) Learning does not necessarily mean improvement in behaviour as it can worsen the
behaviour also. Hence learning can at the most bring about a change in behaviour.
Learning may be good or bad from the organizational point of view. Thus people
learn bad habits, false prestige, stereotype, restriction on work etc

3) The effectiveness of learning process is directly proportional to the degree of


permanent change.

4) Learning should always be followed by practice or reinforcement as otherwise the


new behaviour disappears.

15.6 TYPES OF LEARNERS

There are active learners and passive learners in general. As the name indicates active
learners are those who take special interest and put sincere effort to learn. They feel they lack
something very useful to life if they do not learn, be it a skill, a way of life, knowledge etc.
Such people can be trained and upgraded in an organization more productively. On the
contrary you also have passive learners in the sense that they will not take any special interest
or put effort to learn things .It is all right for them if things come in the normal way and even
if they miss to learn they casually look for further opportunity at leisure. In an organization
this becomes a problem, as you cannot train people to absorb better skills. It will be difficult
to bring a change in the behaviour of such people in an organization. As you will be seeing in
the coming chapters, there are people who will learn under classical conditioning and operand
conditioning. These are separate type of learners.
Perceptual learning: ability to learn to recognize stimuli that have been seen before

 Primary function is to identify and categorize objects and situations

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 Changes within the sensory systems of the brain

2. Stimulus-response learning: ability to learn to perform a particular behavior when a


certain stimulus is present:

1. Establishment of connections between sensory systems and motor systems

2. Classical conditioning: association between two stimuli:

3. Unconditioned Stimulus (US), Unconditioned Response (UR), Conditioned


Stimulus (CS), Conditioned Response (CR)

4. Hebb rule - if a synapse repeatedly becomes active at about the same time that the
postsynaptic neuron fires, changes will take place in the structure or chemistry of
the synapse that will strengthen it

5. Rabbit experiment - tone paired with puff of air

6. Instrumental conditioning: association between a response and a stimulus; allows


an organism to adjust its behavior according to the consequences of that behavior:

7. Reinforcement: positive and negative

8. Punishment

3. Motor learning: establishment of changes within the motor system

4. Relational learning: involves connections between different areas of the association cortex

5. Spatial learning: involves learning about the relations among many stimuli

6. Episodic learning: remembering sequences of events that we witness

7. Observational learning: learning by watching and imitation other people

15.7. LEARNING THEORIES

A learning theory is an attempt to describe how people and animals learn, thereby
helping us understand the inherently complex process of learning.

There are three main categories or philosophical frameworks under which learning
theories are called as

1. Behaviorism,
2. Cognitive,
3. Constructivism.
 Behaviorism focuses only on the objectively observable aspects of learning.

 Cognitive theories look beyond behavior to explain brain-based learning.

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 Constructivism views learning as a process in which the learner actively constructs or
builds new ideas or concepts. It is also important to take account of informal learning
theories, and to consider the philosophical anthropology implied by any theory.

Classical Conditioning

Classical conditioning is one of the simplest forms of learning, yet it has a powerful
effect on our attitudes, likes and dislikes, and emotional responses. We have all learned to
respond in specific ways to a variety of words and symbols. Our lives are profoundly
influenced by associations we learn through classical conditioning. Ivan Pavlov's research on
the conditioned reflex in dogs revealed much of what we know about the principles of
classical conditioning.

Classical Conditioning of Pavlov: Ivan Pavlov (1849 - 1936) organized and directed
research in physiology at the Institute of Experimental Medicine in St. Petersburg, Russia
from 1891 until his death in 1936. His book "Conditioned Reflexes" is one of the classic
works in psychology. Classical conditioning is modifying behaviour so that a conditioned
stimulus is paired with an unconditioned stimulus and elicits an unconditioned behaviour.
Ivan Pavlov, a Russian psychologist developed classical conditioning theory based on his
experiments to teach a dog to salivate in response to the ringing of a bell. When Pavlov
presented meat (unconditioned stimulus) to the dog, he noticed a great deal of salivation
(conditioned response). But, when merely bell was rung, no salivation was noticed in the dog.
What Pavlov did next was to link the meat and the ringing of the bell. He did this several
times. Afterwards, he merely rang the bell without presenting the meat. Now, the dog began
to salivate as soon as the bell rang. After a while, the dog would salivate merely at the sound
of the bell, even if no meat were presented. In effect, the dog had learned to respond, i.e., to
salivate at the sound of bell, since it was conditioned to link the sound of the bell with the
offering of meat. Classical conditioning introduces a simple cause-and-effect relationship
between one stimulus and response. It also makes the response reflective or involuntary after
the stimulus-response relationship has been established. This leaves no ground for making
choices, which factor differentiates human beings from dogs. Under certain situations,
classical conditioning does explain human behaviour. For example, if a student is always
reprimanded by his Principal when he is summoned to the principal's office, he may become
nervous whenever asked to come to the principal's office because of this association.

The basic elements and Processes in Classical Conditioning:

 Reflex: A reflex is an involuntary response to a particular stimulus. There are two


kinds of reflexes:

 Conditioned Reflex: This is a "learned" reflex rather than a naturally occurring one.

 Unconditioned Reflex: This is a "unlearned" reflex. Example, salivation in response


to food. Unconditioned reflexes are built into the nervous systems of most vertebrates.

The Conditioned and Unconditioned Stimulus and Response: Pavlov continued to


investigate the circumstances under which a conditioned reflex is formed. Dogs do not need
to be conditioned to salivate to food, so salivation of food is an unlearned or unconditioned
response (UR). Any stimulus (such as food) that without learning will automatically elicit
(bring forth) an unconditioned response is called an unconditioned stimulus (US).

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Operant Conditioning

Operant conditioning argues that behaviour is a function of its consequences. People


learn to behave to get something they want or avoid something they don't want. Operant
behaviour means voluntary or learned behaviour in contrast to reflexive or unlearned
behaviour. The tendency to repeat such behaviour is influenced by the reinforcement or lack
of reinforcement brought about by the consequences of the behaviour. Reinforcement
therefore strengthens behaviour and increases the likelihood that it will be repeated. What
Pavlov did for classical conditioning, the Harvard psychologist B.F Skinner did for operant
conditioning.

Operant conditioning induces a voluntary change in behaviour and learning occurs as


a "consequence" of such change. It is also known as reinforcement theory and it suggests
that behaviour is a function of its consequences. It is based upon the premise that behaviour
or job performance is not a function of inner thoughts, feelings, emotions or perceptions but
is keyed to the nature of the outcome of such behaviour. The consequences of a given
behaviour would determine whether the same behaviour is likely to occur in future or not.
Based upon this direct relationship between the consequences and behaviour, the
management can study and identify this relationship and try to modify and control behaviour.

Thus, the behaviour can be controlled by manipulating its consequences. This


relationship is built around two principles:

 The behaviour that results in positive rewards tends to be repeated and behaviour
with negative consequences tends not to be repeated.

 Based upon such consequences, the behaviour can be predicted and controlled.

Hence, certain types of consequences can be used to increase the occurrence of a


desired behaviour and other types of consequences can be used to decrease the occurrence of
undesired behaviour. The consequences of behaviour are used to influence, or shape
behaviour through three strategies: reinforcement, punishment and extinction. Thus, operant
conditioning is the process of modifying behaviour through the use of positive or negative
consequences following specific behaviours. From an organizational point of view, any
stimulus from the work environment will elicit a response. The consequence of such a
response will determine the nature of the future response. For example, working hard and
getting the promotion will probably cause the person to keep working hard in the future

Cognitive Learning Theory


Behaviourists such as Skinner and Watson believed that learning through operant and
classical conditioning would be explained without reference to internal mental processes.
Today, however, a growing number of psychologists stress the role of mental processes. They
choose to broaden the study of learning to include such cognitive processes as thinking,
knowing, problem solving, remembering and forming mental representations. According to
cognitive theorists, these processes are critically important in a more complete, more
comprehensive view of learning.

1. Wolfang Kohler (1887-1967): Learning by insight: A German Psychologist studied


anthropoid apes and became convinced that they behave intelligently and were capable of

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problem solving. In his book 'The Mentality of Apes' (1925), Kohler describes experiments
he conducted on chimpanzees confined in caged areas. In one experiment, Kohler hung a
bunch of bananas inside the caged area but overhead, out of reach of the apes, boxes and
sticks were left around the cage. Kohler observed the chimp's unsuccessful attempts to reach
the bananas by jumping or swinging sticks at them. Eventually, the chimps solved the
problem by piling the boxes one on top of the other until they could reach the bananas. In
another experiment, Sultan, the brightest of the chimps, was given one short stick; beyond
reach outside the cage were a longer stick and a bunch of bananas. After failing to reach the
bananas with the short stick, Sultan used it to drag the longer stick within reach. Then,
finding that the long stick did not reach the bananas, Sultan finally solved the problem by
fitting the two sticks together to form one long stick. With this stick, he successfully retrieved
the bananas. Kohler observed that the chimps sometimes appeared to give up in their attempts
to get the bananas. However, after an interval they returned and came up with the solution to
the problem as if it had come to them in a flash of insight. Kohler insisted that insight, rather
than trial-and-error learning, accounted for the chimps successes because they could easily
repeat the solution and transfer this learning to similar problems.

Social Learning
Albert Bandura contends that many behaviours or responses are acquired through
observational learning. Observational learning, sometimes called modelling results when we
observe the behaviours of others and note the consequences of that behaviour. The person
who demonstrates the behaviour or whose behaviour is imitated is called a role model.
Parents, movie stars and sports personalities are often powerful models. The effectiveness of
a model is related to his or her status, competence and power. Other important factors are the
age, sex, attractiveness, and ethnicity of the model. Whether learned behaviours are actually
performed depends largely on whether the person expects to be rewarded for the behaviour.
Social learning integrates the cognitive and operant approaches to learning. It recognizes that
learning does not take place only because of environmental stimuli (classical and operant
conditioning) or of individual determinism (cognitive approach) but is a blend of both views.
It also emphasizes that people acquire new behaviours by observing or imitating others in a
social setting. In addition, learning can also be gained by discipline and self-control and an
inner desire to acquire knowledge or skills irrespective of the external rewards or
consequences. This process of self-control is also partially a reflection of societal and cultural
influences on the development and growth of human beings.

15.8 LET US SUM UP


A mental state that arises spontaneously rather than through conscious effort and is
often accompanied by physiological changes; a feeling: the emotions of joy, sorrow,
reverence, hate, and love. Emotion has two components 1. Facial expression of emotion 2.
Feeling of emotion. Facial expression of emotions is due to isometric contraction (shortening)
of muscles of facial expression around the mouth.

15.9. KEY WORDS

 Facial expressions
 Theories of Learning

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 Emotion types
 Learners types

15.10 SOME USEFUL BOOKS

1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York
2. Stephen P.Robbins, fundamental of management, Pearson 2003
3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

15.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Explain the purpose of emotions


2. What are the different types of emotions
3. Write about learning.
4. Discuss in details about the learning theories.

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UNIT – 16 : PERCEPTION AND STRESS MANAGEMENT

Structure
16.0 Aims And Objectives
16.1 Introduction
16.2 Perception And Process
16.3 Factors Influencing Perception
16.4 Types Of Perception
16.5 Stress Management
16.6 Role Of Stress Management
16.7 Identification Of Stress At Various Levels
16.8 To Reduce The Stress Level
16.9 Let Us Sum Up
16.9 Key Words
16.10 Some Useful Books
16.11Answer To Check your Progress Exercise

16.0 AIMS AND OBJECTIVES

The main objective of the lesson is to understand the basics concepts realating to
perception and its process, types and the stress mangement and its role and the various levels
of identification of stress and steps to reduce it.

16.1 INTRODUCTION

Perception is the process by which organisms interpret and organize sensation to


produce a meaningful experience of the world. Sensation usually refers to the immediate,
relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose,
tongue, or skin. Perception, on the other hand, better describes one's ultimate experience of
the world and typically involves further processing of sensory input. In practice, sensation
and perception are virtually impossible to separate, because they are part of one continuous
process. Perception is the process through which the information from outside environment is
selected, received, organized and interpreted to make it meaningful to you. In fact you are
forming a meaningful picture of the world within yourself based on the information input
from the environment.

It has to be noted that perception is more a cognitive than a sensory process. Perception is
defined as a process by which individuals organize and interpret their sensory impression in
order to give meaning to their environment. It of course is a psychological process. It is the
most important cognitive factor of human behaviour. There is no behaviour without
perception. In other words perception lies at the root of every individual behaviour.

16.2 PERCEPTION AND PROCESS


The process of perception consists of a number of sub processes. Perceptual inputs are
received first, these are then processed by the perceiver. The resulting output becomes the
basis for behaviour. To interpret it technically, you can take an input-throughput-output

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approach to understand the dynamics of perception. The perceptual inputs are from the
environment like the stimuli from the environment such as events, subjects or even people.
These inputs are undergoing transformation through perceptual mechanism of selection,
organization and interpretation and hence are the throughputs. The resultant are opinions,
feelings, attitudes etc that get reflected in behaviour that can be viewed as perceptual outputs.

COMPLEX PROCESS OF PERCEPTION

The main perception process has three components. They are

1) Existence of stimuli
2) Perception mechanism
3) Perceptual outputs.

Human behaviour is shaped and affected by perceptual outputs. Perceptual inputs are
nothing but the stimuli in the form of objects, events or people. Any event is a perceptual
input. The characteristics of stimuli are important as based on those only the perceiver gets
attracted to the stimuli that will be responsible for perception. Of course the situational
variables and perceiver’s characteristics also affect the selection of stimuli. The interaction
between the perceiver and stimulus starts the perception process.

Of the many stimuli from the environment, only some are selected while others are
screened out or rejected by what is known as perceptual selectivity mechanism. These stimuli
are then organized in a particular order so as to make sense out that. Finally the perceiver
interprets these organized stimuli. that will give him a meaning for the situation People
interpret the meaning of what they have selectively perceived and organized in terms of their
own assumptions of people, things and situations. They begin to interpret things as good, bad,
ugly, beautiful etc. In the process there can be misinterpretation also. There are many factors
like the characteristics of the stimuli, that of the perceiver that of the situation etc that end-up
in interpretation or misinterpretation of events and objects. Hence interpretation of stimuli
play a major role in the formation of human behaviour and this is critical in the case of an
organization.

16.3 FACTORS INFLUENCING PERCEPTION

The three most important factors affecting perception are

Characteristics of the perceiver


Characteristics of the perceived
Characteristics of the situation

Characteristics of the perceiver

An individual’s habits, past experience, ethics, needs, values, attitudes and personality
can very well affect the perception process. If there is a person with strong ego, he perceives
others and situations with ego satisfying or ego threatening. Perhaps the perceptions are

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inaccurate. Similarly people who are less secured find fault with others. On the contrary
secured men see others warm and friendly.

Our cultural upbringing, values and ethics play an important role in our perception
about others. Normally it is not possible to judge the personality of another person brought up
in a different culture, because our judgment is based on our culture and values. An alcohol-
addict can prejudge another alcohol- addict. You can take the example of a personnel
manager. If his perception about women, minorities, less educated or handicapped etc are
biased ones, then he will be very sensitive to them during an employment interview. Once
you do not like a person then you always look for the negative aspects of the person. Some
times our attitude creates a wrong perception in the minds of people who are daily associated
with us. You thus promise a promotion to your subordinate within three months in
appreciation of his performance, later you are not able to do that – the employee will have a
totally different perception about you. The employee may even perceive you with distrust.

The factors like needs, desires and personality are internal factors that affect a
person’s perception. For example persons who accept themselves may easily accept others
and have faith in others and perceive everything favorably only. Also these self accepted
individuals perceive themselves as being accepted by others, wanted by others and liked by
others.

Similarly your perceptive ability is increased side by side with your experience and
knowledge thereby giving a tremendous impact on perception. Also the size and intensity of
the stimulus increases the selective perception. Tall or very fat man(size) attracts attention
and the resulting dominance enhances the perceptual selection. Repetitive stimulus is superior
to single stimulus for enhancing perceptual ability of a person.

Characteristics of the perceived

The physical characteristics of others influence our perception about others. Thus age,
appearance, facial expressions, gender, mannerism, communication style, personality are all
physical characteristics and each one of them has its impact on our perception about the
others. Are you not concluding that an assertive and confident man is an executive and later
you may find that your assumption is wrong? Just because some are dressed in suits, they
cannot become professionals although you perceive them to be so, really they may be lower
level employees.

The communication of others, verbal as well as non-verbal affect our perception about
others. Perhaps the vocabulary and the language used can create an impression about them,
about their education, about their sophistication and precision The body language, tone of
expression and the choice of vocabulary can affect our perception about their intelligence and
mood. The sitting posture, movement of their eyes and the depth of the smile can reflect the
confidence and outgoing nature of the individuals.

The perception you have about an assistant manager of an organization is totally


different from the one that you have about a senior manager, owning to the difference in the
status. This confirms that status of occupation can affect your perception. Thus you are
startled to come across a wealthy man or top class professional or people of fame etc Your
behaviour when in contact with a supreme court judge is different from that of your being
with an school teacher. Both you are respectful but with that difference due to different

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perceptions you have about them. See how you behave when introduced to a film celebrity!
Similarly your approach to a warm and friendly man is different from that you have with a
cold and short-tempered man.

Characteristics of the situation

You come across different situations or events either in society or in an organization.


These can influence your perceptions. Thus if you meet some unknown person along with
your managing director about whom you have a very good impression, then you will perceive
the stranger also to a man of high regards. In such a situation you will form a nice image of
the stranger person. in your mind. This favorable image will be erased when on the contrary
you see a stranger with a notorious person and in that situation you will have a bad perception
about the stranger, Even the location od an event can change the perception. Thus your
behaviour with your professor at classroom is different from your behaviour with the same
professor at a marriage party. as the situation is different now. In an office set-up if
employees are given opportunities to interact in a friendly and sociable work situations then
the employees will become trustworthy and less defensive—the situation plays its role.

16.4 TYPES OF PERCEPTION

There are many different ways of perceiving the world. One of these ways is by
perceptual organization. Perceptual organizations are processes used to group basic sensory
elements together into perceivable objects. The two basic principles of perceptual
organization involves perceiving figures embedded in a perceptual background and
organizing what you see, or what you perceive, in the simplest form possible. Another type
of perception is depth perception, which is primarily utilized by visual or auditory senses.

Figure ground perception is the tendency to discriminate between target and


background stimuli. The stimulus we perceive as being the target is referred to as the figure.
The other stimuli that we do not perceive as the target make up the background, or ground.

The vase seen at right can be perceived in two different ways. If the black is
perceived as the background, you will see a vase. However, if you perceive the vase as the
background, you will see two faces.

An interesting phenomenon occurs when looking at a square centered over top of


several, closely spaced concentric circles. In the figure at left, all of the sides of the square
are perfectly straight. Go ahead and check with a straight edge. However, the sides of the
square will appear to bend inward toward the center of the circles. This is known as
background mediated illusion. The background is responsible for the distortion seen in the
figure.

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Image consistency

Imagine yourself outside looking up at an airplane high in the sky. You lift up your
hand and see that the plane is smaller than your finger, yet you still know that the plane is
large enough to hold hundreds of people. Due to the information in your memory stores, you
are still able to perceive the actual size of the airplane despite a change in the size of the
retinal image. This concept is known as size constancy.

Despite the fact that you know images that are far away are actually the same size as if
they were closer, your brain can be fooled. An example of this is the moon illusion, in which
the moon on the horizon appears larger than one higher in the sky. The moon doesn't actually
changes size, but it's relationship to the horizon can make it seem larger lower in the sky.
This phenomenon can also be explained using the figure below. The center circles are
actually both the same size, yet they appear to different because of their relationship to the
surrounding circles. Our brain perceives the circle surrounded by larger circles as smaller,
because it is smaller in relation to the surrounding circles. The opposite is true for the circle
surrounded by smaller circles.

16.5 STRESS MANAGEMENT

Definition

Stress may be understood as a state of tension experienced by individuals facing


extraordinary demands, constraints or opportunities. The pressures of modern life, coupled
with the demands of a job, can lead to emotional imbalances that are collectively labeled
'stress'. The term 'stress' normally refers to excessive stress caused by extraordinary demands
(which cause us to lose something we desire), constraints (things that keep us from doing
what we desire) or opportunities.

Stress is something which impairs brain to think or act on something. Lazarus has
defined stress as a whole spectrum of factors stimulus, response, cognitive appraisal of threat,
coping styles and psychological defenses. Defining stress becomes a problem, even for the
experts. Stress tough people usually thrive on stress and cope with pressure that would put the
average person into tailspin. Stress toughness is caused by commitment, control and
challenge. Hans Selye defined stress as “the non specific response of the body to any demand

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made upon it. Stress is caused by internal or external demand that upset the balance of an
individual and affect physical and psychological well being. Stress can arise from an
opportunity, demand, constraint, threat or challenge when the outcome of the event is both
important and uncertain. Stress is the result of mismatch between a person and environment
and the perceived inability to cope with the constraints or demands encountered.

Stress has become increasingly common in organizations, largely because individuals


experience increased job complexity and increased economic pressures. Stressor refers to the
source of stress. It can be found within the environment, the individual, and the interaction
between the two. Environmental and internal conditions that lie beyond an individual's
control are called environmental stressors. A strong social support system provides a place to
share problems and put them in perspective. To make the social support system effective, the
person must perceive that the support system enhances self-esteem, is available when needed
and provides relationships that are satisfying.

16.6 ROLE STRESS AMONG THE PROFESSIONALS

Stress due to occupation of a role is known as role stresses which are the following
types:

1. Inter – Role distance (IRD) is experience due to conflict experienced between


different Roles played by the bank officers.

2. Role stagnation arises when the bank officers experience lack of development and
growth in their role. When they are given a newer and higher role, they feel
uncomfortable due to lack of preparedness and keep on clinging on the older and
lower role.

3. Role expectation conflict arises when the bank officers faces conflicting
expectations from different role senders.

4. Role erosion is experienced by the bank officers when some of the important
functions belong to them are performed by other roles or when the credit for their
contributions is given to others.

5. Role overload is experience by the bank officers when there are too many or too
high expectations from their role

6. Role Isolation arises when the bank officers feel cut off from the channels of
communication

7. Personal inadequacy arises from lack of knowledge, skill or expertise experienced


by the role occupant

8. Self – role distance is experienced when a role occupant has to do when they
disliked, when their special knowledge and skills remain unutilized or when there
is a conflict between the image, needs and values of the role and the role
occupant.

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9. Role ambiguity is experienced when the officers is not clear about expectations
from their role

10. “Resource inadequacy is experience by the role occupant when the external
resources like human resource, buildings, infrastructure, materials, machines,
tools, equipments, books, documents and information required for performing the
role are inadequately provided1”.

1. Lack of Participation

One of the factors of the workplace and the organization’s modus operandi that is
related to stress is the degree of participation. Officer’s perceptions of the degree of
participation in the decision-making process, the degree to which they are consulted on issues
affecting the organization, and their involvement in establishing rules of behavior at work
have proven to be related to job satisfaction, job-related feelings of threat, and feelings of
self-esteem. Others have found that non participation is related to overall poor physical
health, escapist drinking, depression, dissatisfaction with life, low motivation to work,
intention to leave the job and absenteeism.

2. Role Problems

A clear sense of role in an organization and sense that “play the part” are important in
keeping stress at a minimum. A variety of role-related problems may arise for officers who
lack these feelings are discussed below:

a) Role Ambiguity

When aspects of the job are unclear, frustration and stress are likely to develop among
banking professionals. Bank officers should know the criteria for career advancement, the
priorities of the organization and generally what is expected from them.

b) Role Conflict

Sometimes staff get caught in a bind when two officers each expect something
different. The officers may be faced with conflicting demands. This is the “damned if you
do, damned if you don’t” dilemma. Such a situation is a factor in occupational stress.

3. Job Dissatisfaction

The factors that are typically thought related to dissatisfaction on the job are salary
and conditions of the workplace like noise, poor lighting, poor ventilation and over
crowded. However, even if officers were paid well and worked in hygienic conditions, they
might still be dissatisfied. A class of work-related factors, called motivational factors can
affect job satisfaction. These factors include the degree of stimulating tasks involved, the
amount of recognition for jobs done well, relationships with fellow officers, and the amount
of encouragement to take responsibility.

4. The Work Environment


1

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Some places of work include hazards that can create stress. Dangerous tasks or work
settings, toxic chemicals, high noise levels, dust noise levels, dust, overcooling, unpleasant
odors and other stressful factors can lead to illness or disease. An interesting source that
might want to consult if interested in their aspect of occupational stress is a book entitled
“Office Work Can Be Dangerous to Your Health”.

5. Burnout

It is a syndrome of physical and emotional exhaustion. It is an adverse work stress


reaction with psychological, psycho physiological and behavioral components. Symptoms
include diminished sense of humor, skipping rest and food breaks, increased overtime and no
vacations, increased physical complaints, social withdrawal, diminishing job performance,
self-medication and psychological changes such as depression or a “trapped” feeling.

Stress on the job cost includes salaries for sick days, cost of hospitalization and
outpatient care, and costs related to decreased productivity. Other stress related factors are
catching the eyes of management of banks. Officers trained over a long period of time, at
great cost, may break down when stressed on the job. They may make poor decisions, miss
days of work, begin abusing alcohol and other drugs, or die and have to be replaced by other
workers who need training. The effects of occupational stress have attracted the attention of
business. For example, companies are now offering flextime allowing workers to schedule
themselves more consistent with their lifestyles and priorities. That will help recruiting, in
particular since more than 80 percent of the young men between the ages of twenty and
thirty-nine having a work schedule that allows them to spend time with families is more
important than doing challenging work or earning a high salary.

16.7 Identification of stress at various levels

1. Individual level: In general, individual distress usually takes one of the three basic forms:

a. Physiological symptoms.
b. Psychological symptoms and
c. Behavioural symptoms.

a. Physiological Symptoms: A number of medical illnesses have a stress-related component.


The most significant medical illnesses of this form are heart disease and strokes, backaches,
peptic ulcers, and headaches. Most of the early concern with stress was directed at
physiological symptoms. This was primarily because specialists in the health and medical
sciences researched the topic. The link between stress and particular physiological symptoms
is not clear. There is no clear evidence that stress is a direct causal agent. However, stress
may play an indirect role in the progression of disease. For example, an extreme
preoccupation with work may result in acute individual distress, such as the unique Japanese
phenomenon of "Karoshi" (death by overwork).

b. Psychological Symptoms: The most common types of psychological distress are


depression, burnout, and psychogenesis disorders. In the early stages, depression and burnout
result in decline in efficiency; diminished interest in work; fatigue; and an exhausted run-
down feeling. Psychogenesis disorders are physical disorders with a genesis (beginning) in
the psyche (mind). For example, the intense stress of public speaking may result in a

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psychogenesis speech disorder; that is, the person is under so much stress that the mind
literally will not allow speech to occur.

c. Behavioral Symptoms: Behavioral problems are the third form of individual distress.
These problems include violence, substance abuse of various kinds, and accidents.
Behaviorally related stress symptoms include changes in productivity, absence and turnover
as well as changes in eating habits, increased smoking or consumption of alcohol, rapid
speech, fidgeting and sleep disorders. Accidents, both on and off the job, are another
behavioural form of distress that can sometimes be traced to work-related stressors. For
example, an unresolved problem at work may continue to preoccupy or distract an employee
driving home and result in the employee having an automobile accident.

These three forms of individual distress cause a burden of personal suffering.

Organizational level: The University of Michigan studies on organizational stress identified


a variety of indirect costs of mismanaged stress for the organization, such as low morale,
dissatisfaction, breakdowns in communication and disruption of working relationships. The
problems caused by organizational distress are:

a. Participation problems: Participation problems are the costs associated with absenteeism,
tardiness, strikes and work stoppages and turnover.

b. Performance decrements: Performance decrements are the costs resulting from poor
quality or low quality of production, grievances and unscheduled machine downtime and
repair.

c. Compensation awards: Compensation awards are a third organizational cost resulting


from court awards for job distress.

9. Ways to reduce the stress level in the working environment

i. Adopt a positive attitude - Learning to become a more positive, optimistic person


can have a huge impact on how stress impacts a person. When you view the world
around you in a positive light and learn to become more optimistic, minor setbacks
and stressors won't bother you so much.

ii. Learn how to meditate - Even if you are unable to learn how to practice deep
meditation, moments of quiet reflection throughout the day can ground you and help
reduce stress. Just go to a relaxing place, turn down the lights and clear your mind.
Visualize yourself achieving a goal, enjoying a vacation or doing something you
really enjoy.

iii. Use positive affirmations - Of all the ways to reduce your stress levels, this might
be the easiest to employ. Just pick areas of your life you'd like to improve upon and
use affirmations to help "program" your mind for success. Repeating the same
positive mantra can have an impact by helping you see the possibilities.
Affirmations simply give you the power to see beyond negatives, visualize success
and make it happen.

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iv. Exercise - Physical activity is one of the best ways to combat stress in your life
effectively. Find something you enjoy doing and do it. Whether it's swimming,
running, gardening, walking, playing ball, boxing or something entirely different,
regular activity can reduce stress levels and help ground your mind in the positives.

v. Get rest - A lack of sleep can do terrible things to stress levels. Shooting for a good
seven to eight hours a night can impact your reaction to stress and help you deal
with negative issues better. Even consider taking little cat naps during the day to
reduce stress and recharge batteries. Ten to 20 minutes of shut eye can make a big
difference and refocus your mind on positive pursuits.

vi. Eat right - Diet can play a very big role in how stress impacts the body. To reduce
its effects, try to eat right most of the time. This doesn't mean you have to become a
health food fun, but a basic well balanced diet can make a different. It is an easy
way to employ one of the ways to reduce your stress levels.

vii. Do things you love - Pursing hobbies and enjoyable interests is a great way to
reduce stress and increase enjoyment in life. If you don't have a hobby already,
consider picking up one that is of interest to you.

Should you have no interest in a hobby at all, consider doing something else you love.
Perhaps it's just relaxing in your backyard or playing games with family. Just make a little bit
of time for the things that really matter to you. This can refocus your mind and provide you
with a positive boost against stress.

16.8. LET US SUM UP

Perception, on the other hand, better describes one's ultimate experience of the world
and typically involves further processing of sensory input. In practice, sensation and
perception are virtually impossible to separate, because they are part of one continuous
process. Perception is the process through which the information from outside environment is
selected, received, organized and interpreted to make it meaningful to you. In fact you are
forming a meaningful picture of the world within yourself based on the information input
from the environment.

16.9 KEY WORDS

Perceptual process
Perception
Image
Figure ground principle
Conflict
Stress management

16.10 SOME USEFUL BOOKS

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1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York

2. Stephen P.Robbins, fundamental of management, Pearson 2003

3. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

16.11 ANSWER TO CHECK YOUR PROGRESS EXERCISE

1. Define perception and explain the perceptual process.


2. Explain the factors that influence the perception
3. Explain the types of perception.
4. Explain stress management and its role in human life.
5. Discuss about the various ways of reducing the stress in life style.

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6. Unit- 1

Change Management

Content

1. Aims and objectives


2. Introduction
3. Organizational change
4. Sources of resistance to changes
5. Let us sum up
6. Key words
7. Answer the following
8. Suggested readings

 Aims and objectives

The main objectives of the lesson is to understand the basic concepts like
organizational change, sources of resistance to change.

 Introduction

There is nothing permanent except change. It has become an inescapable fact of life; a
fundamental aspect of historical evolution. Change is inevitable in a progressive culture.
Change in fact, is accelerating in our society. Revolutions are taking place in political,
scientific, technological and institutional areas. Organizations cannot completely buffer
themselves from this environmental instability. Change is induced by the internal and
external forces. Meeting this challenge of change is the primary responsibility of
management. An organization lacking adaptability to change has no future. Adaptability to
change is a necessary quality of good management. Modern managers have the responsibility
to device the management practices to meet the new challenges and make use of the
opportunities for the growth of the organization.

 Why is organizational change so important?

From outside and inside the organization a variety of forces press for change. "We
live in the midst of constant change" has become a well-worn but relevant cliché. Pressures
for change are created from both inside and outside the organization. Organization must forge
ahead on these forces to survive. Some of these are external, arising from outside the
company, whereas others are internal arising from sources within the organization. 1.
External Forces: When the organization's general or task environment changes, the
organization's success often rides on its ability and willingness to change as well. Modern
manager is change-conscious and operating in the constantly changing environment. Many
external changes bombard the modern organizations and make change inevitable. The general
environment has social, economic, legal and political and technological dimensions. Any of
these can introduce the need for change. In recent years, far-reaching forces for change have
included developments in information technology, the globalization of competition, and
demands that organizations take greater responsibility for their impact on the environment.
These forces are discussed below:

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a) Technological Change: Rapid technological innovation is a major force for change in
organizations, and those who fail to keep pace can quickly fall behind. It is perhaps the
greatest factor that organizations reckon with. According to C. Handy "the rate of
technological changes is greater today than any time in the past and technological
changes are responsible for changing the nature of jobs performed at all levels in the
organization". For example, the substitution of computer control for direct supervision is
resulting in wider spans of control for managers and flatter organizations. Technological
innovations bring about profound change because they are not just changes in the way
work is performed. Instead, the innovation process promotes associated changes in work
relationships and organizational structures. Sophisticated information technology is also
making organizations more responsive. The team approach adopted by many
organizations, leads to flatter structures, decentralized decision making and more open
communication between leaders and team members.

b) Globalization: The global economy means competitors are likely to come from across the
ocean. The power players in the global market are the multinational and trans-national
organizations. This has led companies to think globally. There are no mental distinctions
between domestic and foreign operations. Globalization, for an organization, means
rethinking the most efficient ways to use resources, disseminate and gather information
and develop people. It requires not only structural changes but also changes in the minds
of employees. Successful organizations will be the ones that can change in response to the
competition. They will be fast on their feet, capable of developing new products rapidly
and getting them to market quickly.

c) Social and Political Changes: A firm's fate is also influenced by such environmental
pressures as social and political changes. Many new legal provisions in the corporate
sector get introduced every time that affects the organizations.

d) Workforce Diversity: Related to globalization is the challenge of workforce diversity.


Workforce diversity is a powerful force for change in organization. The demographic
trends contributing to workforce diversity are l The workforce will see increased
participation form females, as the majority of new workers will be female. l The
workforce will be more culturally diverse than ever (part of this is attributable to
globalization).

e) Managing Ethical Behaviour: Employees face ethical dilemmas in their daily work
lives. The need to manage ethical behaviour has brought about several changes in
organizations. Most centre on the idea that an organization must create a culture that
encourages ethical behaviour. Society expects organizations to maintain ethical behaviour
both internally and in relationships with other organizations. Ethical behaviour is
expected in relationships with customers, environment and society. These expectations
may be informal or they may come in the form of increased legal requirements. These
challenges are forces that place pressures to change on organizations. Organizations
cannot afford to be rigid and inflexible in the wake of environmental pressures, they must
be rather dynamic and viable so that they survive.

f) Internal Forces: Besides reacting to or anticipating changes on the outside, an


organization may change because someone on the inside thinks a new way of doing
things will be beneficial or even necessary. Pressures for change that originate inside the

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organization are generally recognizable in the form of signals indicating that something
needs to be altered. These internal forces are discussed below:

g) Changes in Managerial Personnel: One of the most frequent reasons for major changes
in an organization is the change of executives at the top. No two managers have the same
styles, skills or managerial philosophies. Managerial behaviour is always selective so that
a newly appointed manager might favour different organizational design, objectives
procedures and policies than a predecessor. Changes in the managerial personnel are thus
a constant pressure for change.

h) Declining Effectiveness: Declining effectiveness is a pressure to change. A company that


experiences losses is undoubtedly motivated to do something about it. Some companies
react by instituting layoffs and massive cost cutting programmes, whereas others view the
loss as symptomatic of an underlying problem, and seek out the cause of the problem.

i) Changes in Work Climate: Changes in the work climate at an organization can also
stimulate change. A workforce that seems lethargic, unmotivated, and dissatisfied is a
symptom that must be addressed. This symptom is common in organizations that have
experienced layoffs. Workers who have escaped a layoff may find it hard to continue to
be productive. They may fear that they will be laid off as well and may feel insecure in
their jobs.

j) Deficiencies in the Existing System: Another internal pressure for organizational change
is he loopholes in the system. These loopholes may be unmanageable spans of control,
lack of coordination between departments, lack of uniformity in politics, non-cooperation
between line and staff etc.

k) Crisis: A crisis may also stimulate change in an organization. Strikes or walkouts may
lead management to change the wage structure. The resignation of a key decision maker
is one crisis that causes the company to rethink the composition of its management team
and its role in the organization.

Employees, Expectations: Changes in employees expectations can also trigger change in


organizations. These forces may be:-

 Employees' desire to share in decision-making.


 Employees' demand for effective organizational mechanism.
 Higher employees’ expectation for satisfying jobs and work environment.
 Employees' desire for higher wage payment.

Change has become the norm in most organizations. Adaptiveness, flexibility and
responsiveness are terms used to describe the organizations that will succeed in two basic
forms of change in organizations that will succeed in meeting the competitive challenges that
businesses face. There are two basic forms of change in organizations:
Planned change and unplanned change.

(a) Planned Change: Planned change is a change resulting from a deliberate decision to alter
the organization. It is an intentional, goal-oriented activity. The goals of planned change are:
First it seeks to improve the ability of the organization to adapt to changes in its
environment.

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Second, it seeks to change the behaviour of its employees.

(b) Unplanned Change: Not all change is planned. Unplanned change is imposed on the
organization and is often unforeseen. Responsiveness to unplanned change requires
tremendous flexibility and adaptability on the part of organizations. Examples of unplanned
changes are changes in government regulations and changes in the economy.

As the manager contemplates and initiates change in the organization one


phenomenon that is quite likely to emerge anytime in the change process is the resistance to
change. People often resist change in a rational response based on self-interest. Resistance to
change doesn’t necessarily surface in standardized ways. Resistance can be overt, implicit,
immediate, or deferred. It is easiest for management to deal with resistance when it is overt
and immediate. The greater challenge is managing resistance that is implicit or deferred.

4. The sources of resistance to change can be categorized into two sources: individual and
organizational.

1. Individual Resistance: One aspect of mankind that has remained more or less constant is
his innate resistance to change. Individuals resist change because they attach great preference
to maintain status quo. Individual sources of resistance to change reside in basic human
characteristics such as perceptions, personalities and needs. The following are the reasons:-

(a) Economic Reasons: The economic reasons to fear change usually focus on one or more
of the following:

ear of technological unemployment.


Fear of reduced work hours and consequently less pay.
Fear of demotion and thus reduced wages.
Fear of speed-up and reduced incentive wages.

Changes in job tasks or established work routines can also arouse economic fears if
people are concerned they won't be able to perform the new tasks or routines to their previous
standards, especially when pay is closely tied to productivity.

(b) Fear of the Unknown: Change often bring with it substantial uncertainty. Employees
facing a technological change, such as the introduction of a new computer system, may resist
the change simply because it introduces ambiguity into what was once a comfortable
situation for them. This is especially a problem when there has been a lack of communication
about the change.

(c) Fear of Loss: When a change is impending, some employees may fear losing their jobs,
particularly when an advanced technology is introduced. Employees may also fear losing
their status because of a change. Another common fear is that changes may diminish the
positive qualities the individual enjoys in the job. For example, computerizing the customer
service positions, threaten the autonomy that sales representatives previously enjoyed.

(d) Security: People with a high need for security are likely to resist change because it
threatens their feeling of safety.

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(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the
status quo. As human beings, we are creatures of habit. Change may pose disturbance to the
existing comforts of status quo. When confronted with change, this tendency to respond in
our accustomed ways becomes a source of resistance. Change means they will have to find
new ways of managing them and their environment – the ways that might not be successful as
those currently used.

(f) Peer Pressure: Individual employees may be prepared to accept change but refuse to
accept it for the sake of the group. Whenever change is unwilling to the peers, they force the
individuals who want to accept change to resist change.

(g) Disruption of Interpersonal Relationships: Employees may resist change that threatens
to limit meaningful interpersonal relationships on the job.

(h) Social Displacement: Introduction of change often results in disturbance of the existing
social relationships. Change may also result in breaking up of work groups. Thus when social
relationships develop, people try to maintain them and fight social displacement by resisting
change.

2. Organizational Resistance: Organizations, by their very nature are conservative. They


actively resist change. Some of the organizational resistances are explained below:

1) Resource Constraints: Resources are major constraints for many organizations. The
necessary financial, material and human resources may not be available to the
organization to make the needed changes. Further, those groups in organization that
control sizable resources often see change as a threat. They tend to be content with the
way things are.

2) Structural Inertia: Some organizational structures have in-built mechanism for


resistance to change. For example, in a bureaucratic structure where jobs are narrowly
defined, lines of authority are clearly spelled out change would be difficult. This is so
because formalization provides job descriptions, rules, and procedures for employees
to follow. The people who are hired into an organization are chose for fit; they are
then shaped and directed to behave in certain ways. When an organization is
confronted with change, this structural inertia acts as a counterbalance to sustain
stability.

3) Sunk Costs: Some organizations invest a huge amount of capital in fixed assets. If an
organization wishes to introduce change then difficulty arises because of these sunk
costs.

4) Politics: Organizational change may also shift the existing balance of power in
organization. Individuals or groups who hold power under the current arrangement
may be threatened with losing these political advantages in the advent of change.

5) Threat to established power relationships: Any redistribution of decision-making


authority can threaten long established power relationships within the organization.
Managers may therefore resist change that introduces participative decision making
because they feel threatened.

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6) Threat to expertise: Change in organizational pattern may threaten the expertise of
specialized groups. Therefore specialist usually resists change.

7) Group Inertia: Even if individuals want to change their behaviour, group norms may
act as a constraint. For example, if union norms dictate resistance any unilateral
change made by management, an individual member of the union who may otherwise
be willing to accept the changes may resist it.

Although resistance to change is a common phenomenon in organizations, it must be


noted that not all changes are resisted. In fact, if we look at any organization closely we
would probably find that far more changes are accepted than resisted. The traditional view of
resistance to change treated it as something to be overcome, and many organizational
attempts to reduce the resistance have only served to intensify it. The contemporary view
holds that resistance is simply a form of feedback and that this feedback can be sued very
productively to manage the change process. One key to managing resistance is to plan for it
and to be ready with a variety of strategies for using the resistance as feedback and helping
employees negotiate the transition. Some tactics have been suggested for sue in dealing with
resistance to change.

a) Education and Communication: Communication about impending change is


essential if employees are to adjust effectively. The details of the change should be
provided, but equally important is the rationale behind the change. Employees A B C
want to know why change is needed. If there is no good reason for it, why should they
favour the change? Providing accurate and timely information about the change can
help prevent unfounded fears and potentially damaging rumors from developing. It is
also beneficial to inform people about the potential consequences of the change.
Educating employees on new work procedures is often helpful.

b) Participation: It is difficult for individuals to resist a change decision in which they


participated. Prior to making a change, those opposed can be brought into the decision
process. When employees are allowed to participate, they are more committed to the
change.

c) Empathy and Support: Another strategy for managing resistance is providing


empathy and support to employees who have trouble dealing with the change. Active
listening is an excellent tool for identifying the reasons behind resistance and for
uncovering fears. An expression of concerns about the change can provide important
feedback that managers can use to improve the change process.

d) Negotiation: Another way to deal with potential resistance to change is to exchange


something of value for a lessening of the resistance. Where some persons in a group
clearly lose out in a change, and where groups have considerable power to resist,
negotiation and agreements are helpful. It becomes relatively easy to avoid major
resistance through negotiation. Negotiation as a tactic may be necessary when
resistance comes from a powerful source.

e) Manipulation and cooperation: Manipulation refers to covert influence attempts.


Twisting and distorting facts to make them appear more attractive, withholding
undesirable information and creating false rumours to get employees to accept a

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change are all examples of manipulation. It involves giving individuals a desirable
role in design or implementation of change.

5. Let us sum up

Change in fact, is accelerating in our society. Meeting this challenge of change is the
primary responsibility of management. An organization lacking adaptability to change has no
future. Adaptability to change is a necessary quality of good management. Practically
everything a manager does is in some way concerned with implementing change. Although
organizational changes are important, managers should try to institute changes only when
they make strategic sense. Adaptability to change is a necessary quality of good management
practice.

6. Key words

a) Managing Change
b) Change Agents
c) Resistance to Change

7. Answer the following

 What are the major reasons individuals resist change? How can organizations deal
with resistance?

 What are the major external and internal forces for change in organizations?

 What is a change agent? Who plays this role?

 What can change agents affect?

 Why is participation considered such an effective technique for lessening resistance


to change?

8. Suggested readings

7. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York

8. Stephen P.Robbins, fundamental of management, Pearson 2003

9. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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Unit: 2

ORGANISATIONAL CLIMATE

Content

1. Aims and objectives


2. Introduction
3. Concepts of organizational climate
4. Actors organizational climate
5. Effects of climate
6. Measurement of Organizational Climate
7. Let us sum up
8. Key words
9. Answer the following
10. Suggested readings

1. Aims and objectives

The main objectives of the lesson are to understand the basic concepts of
organizational climate, actors of organization, effects of climate and the measurement of O.C.

2. Introduction:

After discussing the various aspects of human beings, you should learn the basic
features of organizational climate. A concept that management can ill afford to ignore is
"organizational climate". All organizational theoreticians and researchers unanimously agree
that a sound climate is extremely important for the ultimate achievement of organizational
goals. Various interactive behaviors discussed in different lessons of this "organizational
behavior".

3. Concepts of organizational climate:

Subject, viz. interpersonal behavior, group behavior, use of power and authority,
lea7dership, communication, conflict and control occur in organizational context. Therefore,
overall organizational situations and characteristics would affect the effectiveness of these
behaviors. Such situations and characteristics are contained in organizational climate and
culture. Therefore, understanding of organizational climate and culture helps in better
management of people in the organization.

Individuals in organization are faced with several questions as he or she perceives the
setting in which one is working. What is the optimal environment for the individual, conflicts
between individuals and organization are inevitable. People with a strong need to be
independent find that most organizations do not provide them with a suitable organizational
climate. Even the rewards from the organization • may induce conflict within the individual if
he feels that someone else got more than he did. There is no simple relationship between job
satisfaction and job performance. To lessen conflict, the organization must provide the person
with a climate in which one can unfold and develop. Individual personalities and job

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requirements interact to produce a climate that can be significant to both the individual and
the organization.

Climate can be defined as "Those characteristics that distinguish the organization


from other organizations, that influence the behaviors of people in the organization and are
relatively enduring overtime. Organizational climate is situational determined process, where
the climate variables are causative factors for performance and attitudes." The "Psychological
Climate" is the individual perception of a situation.
The psychological climate includes, the following five aspects: -

1) Ppsychological climate is basically perceptual.

2) Psychological climate is based upon interaction between situational and individual


characteristics.

3) There is an intervening psychological process in an organizational model, where the


point of intervention is between the situation and individual.

4) Psychological climate is not completely a situational specific construct.

5) Psychological climate represents a set of higher order abstractions, which reflect; inter
relationships among more specific perceptions of the work environment-

Q.A. Forehand and B.V.H. Gilmer feel that climate consists of a set of characteristics
that describe an organizations, distinguish it from other organizations, are relatively enduring
over time, and influence the behavior of people in it. Based on these characteristics John-
p.compbell define organizational climate as:
"A set of attributes specific to a particular organization that may be induced from the
way that organization deals with its members and its environment. For the individual
members with in the organization, climate takes the form of a set of attitudes and
expectancies which describe the organization in terms if both static characteristics (such as
degree of autonomy) and behavior outcome and outcome contingencies".

When organizational climate is defined in this way, many kind of organizational factors
are relevant contributors to it. The crucial elements are the individual's perceptions of the
relevant stimuli constraints and reinforcement contingencies that govern human behavior.
Thus, the perception of people regarding the functioning of that factor is important. From this
point of view, let us discuss the important actors to be considered in organizational climate.

4.. Actors organizational climate

This includes the following six factors, which affect organizational climate

1. Organization structure - perception of the extent of organizational constraints, rules,


regulations, red-tape

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2. Individual responsibility - feelings or autonomy of being one's own boss

3. Rewards - feeling related to being conflict of adequate and appropriate rewards;

4. Risk and risk taking - perceptions of the degree of challenge and risk in the work
situation

5. Warmth and support - feelings of general good fellowship and helpfulness in the work
settings and

6. Tolerance and conflict - degree of confidence that the climate can tolerate differing
opinions.

1. Managerial support
2. Managerial structure
3. Concern for new employees
4. Inter-agency conflict
5. Agent dependence and
6. General satisfaction

R. Taguiri has also identified the following five factors in organizational climate on the
basis of information provided by managers.

1. Practices relating to providing a sense of direction/ purpose to their jobs - setting of


objectives, planning and feedback Opportunities for exercising individual initiative

2. Working with a superior who is highly competitive and competence.

3. Working with co-operative and pleasant people and

4. Being with a profit minded and sales oriented company.

SIZE, SHAPE AND CONTROL

The chief merit of a large organization be it an industrial governmental or research


beurocracy is its technical efficiency, with premium-on precisions, speed and cotrol. As the
business grows the old face to face techniques are no longer adequate, new and different
things are required. Such things as the kinds of skill and the location of pools of skill within
the organization, the decentralization of authorities and the development of new kinds of
communication networks may change radically as the company grows. The size may lead to
the belief that the organization is strong and powerful just because it is big where as the
smaller organizations are flexible in adapting to changed conditions. Psychologically the size
of the organization may be one of the factors affecting the organizational climate. The
individual is treated impersonally in the larger organizations. However size alone cannot
determine the job satisfaction.
5. Effects of climate

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People react to climate and climatic changes, organizations sometimes change
because individual's change. A modification of the climate also offers good way to observe
the effects, climate has on the people in organization- The psychological climates of
organization's change sometimes for good and sometimes for bad. Conflicts between
individual and organization is inevitable. People with strong needs to be independent find that
most organizations do not provide a proper setting. To kinds of influence of climate ' on
individuals may be distinguished.

First, there is a direct influence that affect all or almost all members of the company
or some submit. The second kind of effect is termed interactive influence, which exists when
a climate has a certain effect on behaviour of some people, a different effect on others, and
possibly no effect at all on still others. Some behaviours never occur because the stimuli that
would elicit them are never presented. Organizations themselves place constraints on people
through rules and regulations, routine practical traits. It is not uncommon for the ambitious
person to find himself in a climate that puts restraints upon freedom, narrowing his
alternatives of action.

Organizational goals, the personal goals of leaders, and the goals of members of the
organization sometimes are in conflict. This perception to a large extent is governed by
personality factors and how they are related to satisfaction of one's needs, and by the things
that motivate us both from within and from without. The importance of motivating and
supervising people is paramount in understanding organization climate.

6. Measurement of Organizational Climate

Trying to measure organizational climate is an attempt to capture the essence,


environment, order and pattern of an organization or submit. There are many questionnaire/
containing usually fewer the twenty five items (questions), are given to employees to
respond. Usually the questions are answered on some form of a scale which may vary from
one point to six points or from one to ten point scale. The numerical scale is normally
accompanied by certain descriptive terms for each point on the scale. An example of the type
of questions and the scale that might be used is presented as under :

Example of two questionnaire items designed to measure the "risk" property of organizational
climate.

1. Decision making in their organization is too cautious for maximum effectiveness:

2. You won't get ahead in this organization unless you stick your neck out and take a
change now and then :
Almost all questionnaires use slightly different terminology but all are very closely
related in terms of "concept" and "dimensions". Generally, the dimensions studied will be the
conformity, responsibility standards, rewards, organizational clarity, warmth and support and
leadership. It is possible that the organization may have more than one climate. For instance,
if perceptions are measured, then different groups may have different perceptions. H.Russel
Johnston in his research -found two climates in a study of professionals in a small consulting
firm. He noticed that long term employees deemed the climate flexible, supportive, non-

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authoritarians, concerned with integrating individual with organizational goals and generally
organize, adaptive in its environment. Whereas newer employees saw as rigid, procedural,
strongly based on hierarchy and authority more impersonal and emphasizing organizational
goals- In some other studies, it has been found that climates also can differ with respect to
hierarchy and to the degree of environmental uncertainty.

Through the rigor of research varies significantly among different studies of


organizational climate, there is enough evidence to warrant practical interrupt in the
application of the concept to organizations.

Elements of a Favorable Climate


Climate can range along a continuous line from favorable to neutral to unfavorable.
Both employers and employees want a more favorable climate because of its benefits, such as
better performance and satisfaction-Typical elements that create favorable climate are quality
of leadership, amount of trust, communication upward and downward feeling of useful work,
responsibility, fair rewards, opportunity reasonable controls, structure and bureaucracy,
employee involvement and participation. Employees feel that the climate is favorable where
they are doing something useful that provides a sense of personal worth. They frequently
want a challenging work that is intrinsically satisfying. Employees want to be listened to and
treated as if they have value as individuals; They want to fell that the organization really
cares about their needs and problems.

Climate is a system's concept that reflects the entire life style of an organization.
When the life style can be improved, measurable gains in performance are likely to occur.

Developing a Sound Organizational Climate

A sound organizational climate is a long term proposition. The; climate of each


organization is set through an organizational behaviour system.

The Total Man concept

The organizational climate is contingent on the assumptions of the nature of people in


general. In dealing with people the total man concept should be take which is essentially a
combination of three different concepts about the nature of human beings-economic, social
and self-fulfilling. Such a classification is different from an earlier classification of man in
the context of decision - making process. The basis of classification of man in to three
categories derives from the fact each class of men has different set of thinking, motivation
and hence requires different organizational climate.

The economic man is basically motivated by money and long-range economic


security and hence the reliance on economic factors to attract, keep and motivate them. For
social man positive social relations and interactions are a must; within his work environment,
man seeks an affinity with fellow employees. The creation of a climate where happy family
atmosphere prevails is appropriate for him. The self-fulfilling man seeks achievement,
accomplishment and meaning in what he does. The organizational climate with premium on
certain degree of freedom is appropriate for him. Thus, each type of man requires a particular

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climate. In order to build up a sound organizational climate, managers must understand their
people in the organization.

Features of a sound organizational Climate

The importance must be given to what motivates job performance in general and
building an overall climate conductive to motivation, a keen insight into the individual in
particular and tailoring a personnel approach to leadership and job design to which the man
will respond with commitment. The individual differences suggests that there cannot be any
all -purpose organisational climate. Though there are variations in practices, following
prescriptions can be taken as features of a sound organizational climate :

1. Absence of political maneuvering for organizational positions and other personal


gains;

2. 'Linking rewards with performance rather than linking with other considerations
such as blood relationship, friendship and society background ;

3. High standards’ of excellence in every area of operation and evaluation;

4. Encouragement for participation and group decision and its implementation;

5. Encouragement for innovation and freedom to act up on ideas;

6. High value assigned to interpersonal ability and tolerance of individual differences

7. High standards of moral integrity in dealing with both internal and external
matters.

7. Let us sum up

Individuals in organization are faced with several questions as he or she perceives the
setting in which one is working. What is the optimal environment for the individual, conflicts
between individuals and organization are inevitable. People with a strong need to be
independent find that most organizations do not provide them with a suitable organizational
climate.

8. Key words

 Managerial support
 Managerial structure
 Concern for new employees
 Inter-agency conflict

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9. Questions and answer

1) What do you mean by "Organizational Climate"? What are the factors affecting
climate of work in an organization?

2) How does organizational climate influence the behavior of its member? Discuss the
ways in which a sound organizational climate may be created.

3) Is the climate subject to measurement? If so, how? If not why?

4) Explain how to change climate whenever necessary?

10. Suggested Readings

55. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New
York

56. Stephen P.Robbins, fundamental of management, Pearson 2003

57. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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Unit-3

Management of conflict

Content

a) Aims and objectives


b) Introduction
c) Conflict
d) Types and level of conflict
e) Behavioral aspects and conflict
Conflict between individual and groups
Types of conflict situations
f) Let us sum up
g) Key words
h) Answer the following
i) Suggested readings

1. Aims and objectives

The main objective of the lesson is to understand the basic concepts relating to types
and level of conflict, conflict between individuals, and types of conflict.

2. Introduction

Conflict is the process in which one party perceives that its interests are being
opposed or negatively affected by another party. Conflict is a process in which people
disagree over significant issues, thereby creating friction between parties. Conflict can exist
when people have opposing interests, perceptions, and feelings; when those involved
recognize the existence of differing points of view; when the disagreement is ongoing; and
when opponents try to prevent each other from accomplishing their goals.

3. Conflict

Although conflict can be destructive, it can also be beneficial when used as a source
of renewal and creativity. Competition, rivalry between individuals or groups over an
outcome that both seek, is not the same as conflict. In competition, there must be a winner
and a loser; with conflict, people can cooperate so that no one wins or loses. Organizational
conflict occurs when a stakeholder group pursues its interests at the expense of other
stakeholders. Given the different goals of stakeholders, organizational conflict is inevitable.
Conflict is associated with negative images, such as unions getting angry and violent, but
some conflict can improve effectiveness. When conflict passes a certain point, it hurts an
organization.

4. Types and levels of Conflict

There are four types of conflict. Inter-group conflict occurs when groups within and
outside the organization disagree on various issues. Interpersonal conflict is due to
differences in goals, values, and styles between two or more people who are required to

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interact. Intra group conflict occurs within a work group over goals and work procedures.
Interpersonal conflict is a person's internal conflict over divergent goals, values, or roles.
Inter group conflict can occur at two levels which are horizontal and vertical. Horizontal
conflict takes place between departments or groups at the same level of the organization. In
contrast, vertical conflict occurs between groups at different levels of the organization.

Types of Conflict

1. Task conflict: Conflicts over content and goals of the work


2. Relationship conflict: Conflict based on interpersonal relationships
3. Process conflict: Conflict over how work get done

Manager’s ways to manage conflict.

Managers can manage conflict by either preventing or reducing high levels of conflict
or stimulating low levels of conflict. To do this, managers can apply a behavioral approach or
an attitudinal approach. The behavioral approach targets the behavior causing the conflict,
while the attitudinal approach targets the roots of the conflict, including people's emotions,
beliefs, and behaviors. Behavioral methods include enforcing rules, separating the parties,
clarifying tasks, having a common enemy or outside competition, and increasing resources
and rewarding cooperation. Attitudinal methods include having a common enemy, rotating
members, increasing resources, and team-building and organizational development (OD). To
stimulate conflict, managers can introduce change, increase task ambiguity, or create
interdependency.

Conflict and Negotiation

Stakeholders compete for the resources that an organization produces. Shareholders


want dividends, employees want raises. An organization must manage both cooperation and
competition among stakeholders to grow and survive. All stakeholders have a common goal
of organizational survival, but not all goals are identical.

Negotiation

It is the process used by two or more parties to reach a mutually agreeable


arrangement to exchange goods and services. Managers need negotiating skills to be effective
in today's global, diverse, dynamic, team oriented business environment. Culture significantly
affects the negotiation process. Negotiators from masculine cultures emphasize assertiveness
and independence, which can cause them to see negotiation as a competition and spur them to
win at all costs. Negotiators from cultures comfortable with uncertainty will take a creative,
problem-solving approach, while those from high uncertainty-avoidance cultures will
emphasize bureaucratic rules and procedures. Power-distance, individuality-collectivism,
high or low context, emotion, and time-orientation dimensions also affect negotiation.
Beyond a certain point, conflict hurts the organization and causes decline. Managers spend
time bargaining, rather than making decisions. An organization in decline cannot afford to
spend time on decision-making, because it needs a quick response to recover its position.
Group’s battle for their interests, no agreement is reached, and the organization floats along,
falling prey to inertia. Bargaining issues in negotiation process can be divided into three
categories: mandatory, permissive, and prohibited.

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Mandatory Bargaining Issues—Fall within the definition of wages, hours, and other terms
and conditions of employment.

Permissive Bargaining Issues—May be raised, but neither side may insist that they be
bargained over.

Prohibited Bargaining Issues—Are statutorily outlawed.

Negotiation Strategies

Shows four negotiating strategies based on the importance of the substantive outcome
and the importance of the relationship outcome. These four strategies are trusting
collaboration, firm competition, open subordination, and active avoidance. Trusting
collaboration is a win-win strategy most appropriate when both the substantive task outcome
and the relationship outcome are important. Firm competition is used when the substantive
task outcome is important but the relationship outcome is not. Open subordination is applied
when the task outcome is not important but the relationship outcome is. Active avoidance is
useful when neither the task outcome nor the relationship outcome is important. When two
parties are unable to come to agreement during negotiations, they may bring in a third party
to help resolve the differences. Conciliation and consultation focus on improving
interpersonal relations to foster constructive discussion of issues. Mediation considers both
interpersonal and substantive issues and relies on formal evaluation of positions plus
persuasion to bring about a non-binding solution. Arbitration, a legally binding process in
which the arbitrator imposes a solution, can be used when all other methods have failed and
the conflict must be urgently resolved.

Common mistakes made when negotiating include:

Irrational escalation of commitment; thinking the pie is fixed; winner's curse; and
overconfidence. Avoiding these common mistakes requires managers to be aware of the
issues, be thoroughly prepared, and be willing to rely on expert opinion to reduce the
possibility of making mistakes.

5. Behavioral aspects and conflict

This conflict can arise by a simple misunderstanding or an error in communication. A


misunderstood message can create a lot of problems. This conflict can also arise due to
differing viewpoints about various issues. For example, two Vice-presidents may differ about
their viewpoint about which strategic plans to implement. Another aspect of the conflict can
be based of emotions, feelings perceptions and values. These feelings may be the feelings of
anger, distrust, fear or simply dislike due to personality differences. This may also be based
upon religion, race or sex. Some families carry on enmity for generations.

The value based conflicts arise due to different values which may be culturally based.
For example, a Vice-President may want to fire some workers to save costs while another
Vice-President may have human sensitivity and support other methods of cutting costs. As
another example, a professor may value freedom of teaching methods and close supervision
of his techniques may cause conflicts.

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The personality of an individual may in itself be a cause of conflict. For example,
some people by nature are consistently aggressive an hostile and hence are highly likely to
induce conflict. Studied conducted by Walton and Dutton showed that people with highly
authoritarian nature, highly dogmatic people and people with low self-esteem are more likely
to induce conflict.

6. Conflict between individual and groups

The individual may want to remain within the group for social needs but may disagree
with the group methods. For example, in home restaurants all tips are shared by all waiters
and waitresses. Some waitress who may be overlay polite and efficient may feel she deserves
more, thus causing a conflict with the group. Similarly, if a group is going on strike for some
reason, some members may not agree with these reasons or may not be able to afford to go on
strike, thus causing conflict with the group.

This conflict may also be between the manager and his subordinates as a group or
between the leader and the led. A manager may take disciplinary action against a member of
the group causing conflict which may result in reduced productivity. “Mutiny on the Bounty”
is a classic example of rebellion of crew against the leader, based upon their treatment. The
conflict among the armed forces is taken so seriously that the army must obey their
commander, even if the command is wrong an in conflict with what others believe in.

7. Types of conflict situations

The management must survey the situation to decide whether to stimulate conflict or
to resolve it. Thomas and Schmidt have reported that managers spend up to 20% of their time
in dealing with conflict situations. Hence, it is very important that managers understand the
type of conflict that they have to deal with so that they can device some standardized
techniques in dealing with common characteristics of conflicts in each type or category.
There are five basic types of conflicts.

These are

1. Conflict within the individual


2. Interpersonal Conflict
3. Conflict between the individual and the group
4. Inter-group conflict
5. Inter-organizational conflict

Structural aspects and causes of conflict

1) Role ambiguity. A role is a set of activities associated with a certain position in the
organization or in the society. According to Kahn, if these work activities are ill
defined, then the person who is carrying out these activities will not behave as others
expect him to because his role is not clearly defined. This will create conflict,
specially between this individual and those people who depend upon his activities. A
hospital or a medical clinic employing a number of physicians with overlapping
specialties might cause conflict due to role ambiguity. Such conflicts can be reduced

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by redefining an clarifying roles and their interdependencies. In addition to role
ambiguity, there may be a role conflict. The role conflict occurs when two or more
persons have different and sometimes opposing expectations of a given individual.
For example, an architect may be expected to produce creative designs while on the
other hand, there may be time constraints put upon him, both roles being in conflict
with each other. Similarly, building codes prescribe. Another type of role conflict is
the interrole conflict where an individual plays more than one role simultaneously in
his life an the demands of these roles conflict with each other. For example a father
may know that his son has committed a crime, but does not inform the police, or a
police officer may be invited to his brother's wedding party where the guests use
drugs which is against the law etc.

2) Design of work-flow. These are primarily intergroup problems and conflicts which
are the outcomes of poorly designed work-flow structure and poorly planned
coordination retirements, specially where the tasks are interdependent. According to
Sashkin and Morris, “organizations are made up of many different groups that must
work together towards the accomplishment of common objectives.” For example, in a
hospital, the doctors and nurses must work together and their tasks are highly
interdependent. If they do not coordinate their activities well, there be confusion and
conflict. Similarly, in a restaurant, the cook and the waiter depend upon each other for
critical information and services. A poorly designed workflow and uncoordinated
activities between the cook and the waiter would create conflict and problems.

8. Let us sum up

Organizational conflict occurs when a stakeholder group pursues its interests at the
expense of other stakeholders. Given the different goals of stakeholders, organizational
conflict is inevitable. Conflict is associated with negative images, such as unions getting
angry and violent, but some conflict can improve effectiveness. When conflict passes a
certain point, it hurts an organization.

1. Key words

a. Conflict within the individual


b. Interpersonal Conflict
c. Conflict between the individual and the group
d. Inter-group conflict

2. Answer the following

9. What is meant by conflict?


10. Explain the different types of conflict.
11. What do you understand by Behavioral aspects and conflict?
Difference between individual and groups conflict

11. Suggested readings


10. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York
11. Stephen P.Robbins, fundamental of management, Pearson 2003
12. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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Unit-4

Organizational Developments and interventions

Content

a) Aims and objectives


b) Introduction
c) OD in India
d) OD interventions and techniques
e) Role of Organisation Development :
f) Advantages of OD
g) Limitations of OD
h) Let us sum up
i) Key words
j) Answer the following
k) Suggested readings

1. Aims and objectives

The main objectives of the lesson is to understand the OD approaches in India, role
of OD, and the advantages of OD.

2. Introduction

OD program has been successfully implements recently in number of companies in


India. Some notable examples are Tata iron and Steel co.ltd, Hindustan Machine Toole Ltd,
Hindustan Aeronautics ltd. State Bank of India, Bokaro steel and orient paper mills. The OD
work has been done in diverse type of organizations, such as industrial organizations of both
public and private sectors, and non-industrial organizations like banks, hospitals, government
department etc. such organizations have applied OD techniques with varying Degrees of
success. Many of the organization have not published their results of OD efforts. This is
because most of the OD work has been taken on consultancy basis and it was thought proper
not to disclose the identity of the organizations involved. Some detailed accounts of OD
efforts are available in published forms. Such detailed accounts of OD efforts are available in
published forms. Such efforts are in the context of Hindustan Machine Tools, a public sector
organizations, banks and other organizations. Though the results which have been reported
have been encouraging there are various problems in the way of OD implementation in
Indian organizations.

3. OD in India
The general environment -socio-cultural as well as economic in which most of the
Indian organizations are working is not very conductive to adopt modern management
techniques, such as OD or similar ones. For the adoption of such techniques essentially
requires sharing of authority, participative management, free flow of two-way
communication change in attitude of managers and owners of the organizations towards latest
management techniques and availability of external consultants who can devote considerable
time to the organizations under going through the OD programs Some of these problems have
been identified in the case of adoption of MBO by Indian organizations. What is more

144
relevant in the case of OD is the relationship between management and external consultants.
Indian organization by and large do not want to share their problems with the external
consultants simply because they do not have trust and confidence in consultants either
because of their fear of confrontation with such consultants or because of the decline of their
power. Such fears are however not based on any concrete proof. In face the OD program have
shown that the power enhances and is shared widely among participants and a self-imposed
discipline emerges in healthy work setting.

The difficulty if further enhanced by the role of external consultants who have a
traditional view of looking at consultants role. They believe that the consultants role is to
diagnose all problems, suggest solution put these in reports and hand over these to
management to do what it wants. Though this approach may be quite relevant in the case of
the technical problems, this is unlikely to work in the case of OD or similar techniques where
behavioral change is much more important- In fact the role of external consultants should be
extended to the implementation aspect of a particular technique. This is more closely related
with management's expectation from a consultant. Management wants concrete results and
not the reports on a particular problems- Moreover the application of any techniques may be
facilitated when managers as well as external consultants put efforts together. This is because
the theoretical background which a consultant has backed by the working experience in a
particular environment which a manager has. OD program particularly requires such long
associations between managers and consultants.

These are some of the problems which Indians organizations are currently facing in
applying OD. Since OD technique is being followed by several organizations, there is a
possibility that with the experience gained there, it may fruitfully be applied in other
organizations. From this point of view the future of OD in India is bright. Udai Pareek feels
that OD work is currently going on in several industries and non-industrial organizations and
non-industrial organizations and as these experiences are shared we shall have a better
understanding of the effective use of OD in traditional organizations, public sector industries,
industries employing various technologies and a variety of non-industrial organizations.

4. OD IMTERVENTIONS / TECHNIQUES :

Organization development intervention techniques are the methods created by OD


professionals and others. Single organization or consultants cannot use all the interventions.
They use these interventions depending up on the need or requirements. The most important
interventions are : survey feedback, process consultation, sensitivity training, the managerial
grid, goal setting and planning, team building and management by objectives. Other
interventions are job enrichment, changes in organizational structure and participative
management and quality circles.

1. Survey Feedback:

This intervention provides data and information to the managers. Attitudes of


employees about wage - level, and structure, hours of work, worming conditions and relations
are collected and results are supplied to top executive teams. These teams analyze the data
find out the problem, evaluate the results and develop the means to correct the problems

145
identified. The teams are formed with the employees at all level in the organizational
hierarchy, ie. From rank and file to the top level.

2. Process Consultation :

Under this method the process consultant meets the members of department in work
teams, observes their interactions, problems identification skills, problem solving procedures
etc. He feels bad the team with the information collected through observation, coaches and
counsels, individuals and groups in molding their behavior.

3. Goal setting and Planning:

Each divisions in an organization or branch / zonal office sets the goals or formulates
the plans relating to - puritability - market share, human resources, productivity etc. these
goals are sent to the top management, which in turn sends them back to the
divisions/zones/branches after modifications. ,A set of organization-wide goals emerge
thereafter.

4. Managerial Grid:

Industrial psychologist Blake and Mouton developed the. management grid basing on
the Ohio state study. The managerial grid identifies range of management behavior based on
the different ways that how production/service oriented stages interact with each other.
Managerial grid is also called as instrumental laboratory training as it it a structured version
of laboratory training. It consists of individual and group exercises with a view to developing
awareness of individual managerial style, interpersonal competence and group effectiveness.
Thus grid training is directly related to the leadership styles.

5. Sensitivity Training:

The most commonly used OD intervention is "sensitivity training". It is also called


"LABORATORY TRAINING". It is called Laboratory Training and it is conducted by
creating an experimental laboratory situation in which employees are brought together in
groups, to interact in an unstructured environment. The members are encouraged to interact
with new members and new individual behaviors.

The objectives of laboratory training are to (i) Help people understand themselves
better (ii) to create better understanding to others (iii) to gain insight in to the group process
and (iv) to develop specific behavioral skills.

Some people never understand why they feel and act as they do and how others feel
about them. Some people are insensitive to effects or their behavior upon others and their
orders up to subordinates. Laboratory training helps such people to understand the impact of
their behavior on others. Most of the people concentrate on what they are going to say rather
than what others are saying. This training develops them as good listeners. It also helps the
participants to form into informal groups and teams and work more effectively.

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Modus - Operand - of Sensitivity Training:

Sensitivity training provides face to face interaction. This training is carried out by
largely unstructured groups without an agenda, leader and predetermined goat. The group is
given complete freedom in developing their own devices, interactions and on-going process
for interaction. Laboratory training may include role playing, inter group competitive
exercises, self insight questionnaries, theory session with lectures, background readings,
panel discussions and audio-visual aids in addition to T' groups.

6. Team Building:

Most of the laboratory training takes place among the ^employees of the same
department. These employees work together as a team. Team building is nothing but
application of various techniques of sensitivity training to the actual work groups in various
departments. These work groups consist of peers and a supervisor. Laboratory techniques are
also applied to short term work teams. This technique, like laboratory training, aims at
improving inter group relations. This technique is designed to improve the ability of the
employees to work together as teams.

7. Job Enrichment:

Job enrichment is initiated generally to motivate the employees, improve their job
satisfaction morale and productivity.

8. Change in organizational structure:

Various models or organizational structure, particularly matrix organization


improves inter group Interaction and relation and relations. Further changes may be
introduced in organizational structure to provide the scope for team work, group interactions
and increased interpersonal relations.

9. Participative Management and Quality Circles :

Participative management and quality circles are extensions to teamwork. They


provide for voluntary formation of groups/teams, association, interaction etc. they encourage
open discussion on various problems and are arriving at a commonly agreed solutions and
executions of the agreement by the members themselves.

5. Role of Organization Development:

Organisation development, as a long term strategy for organizational change, plays


key role in organizational improvement. The basic problem in a change effort which is not
comprehensive is that it does not work properly unless there is proper change in the internal
environment of the organization in which people work. Since OD attempts to bring
comprehensive change in the organization, it is quite suitable for improving organizational

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performance as long term basis. Thus OD can be utilized for the following results in the
organization:

1. To place emphasis on humanistic values and goals consist with these values ;
2. To treat each human being as a complex person with a complex set of needs
importance in his work and his life.
3. To increase the level of enthusiasm and personal satisfaction at all organizational
members and levels of the organization.
4. To increase the level of self and group responsibility in planning and its
implementation.
5. To increase the openness of communications in all directions - vertically,
horizontally and laterally.
6. To create an environment in which authority of assigned role is augmented by
authority based knowledge and skills.

6. Advantages of OD:

1. OD improves the organizational effectiveness. To be more specific OD increases


productivity boosts morale through improved utilization of human resources.

2. OD provides better management from top to bottom.

3. OD improves commitment and involvement from the members of the organization


making the organization successful.

4. OD improves coordination and teamwork among the members of the group and
among the groups.

5. OD helps to understand the strength and weakness of the organization.

6. OD improves communication, problem solving and conflict resolution skills.

7. OD efforts to develop a work environment that encourages creativity and


openness.

8. OD provides opportunities for personal growth and development.

9. OD reduces the negative attitude of the people towards the organization

10. OD makes the organization competitive and to grow by adapting itself


continuously to the changing environment.

11. OD keeps the organization healthy and attracts good people.

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7. Limitations of OD:

As a method of inducing change, organizations development has certain limitations.


These are as follows:

1. Organization development can be no more powerful than the behavioral science


concepts on which it resets. Behavioral science itself has various limitations and
these are applicable to OD also.

2. There are some persons, specially complacent ones who are not prepared to apply
diligence of effort for improvement and the method of work involved in OD are
sometimes not of sufficient strength to challenge the motivation of highly
complacent People-3, Task of the organization and the characteristics of its
membership also put limitations on the effectiveness of OD. Thus OD cannot be
applied without giving due regard for the local circumstances existing within any
given organization. For example research and development organizations are less
responsive to change potential of OD.

It might be emphasized here that,, as with any new strategy some criticisms are
justified because of mistakes. However OD can be treated as a move in the correct direction.

8. Let us sum up

Organization development intervention techniques are the methods created by OD


professionals and others. Single organization or consultants cannot use all the interventions.
They use these interventions depending up on the need or requirements. The most important
interventions are : survey feedback, process consultation, sensitivity training, the managerial
grid, goal setting and planning, team building and management by objectives. Other
interventions are job enrichment, changes in organizational structure and participative
management and quality circles.

9. Key words
a. OD interventions
b. Survey
c. Feed back
d. Sensitivity

10. Answer the following


1. Explain the OD in India.
2. Write in detail about the OD interventions and techniques
3. Explain the role of organization development.
4. What are the advantage and disadvantages in OD

11. Suggested readings


58. Peter F.Drucker, management tasks and responsibilities Truman Talley books ,
New York
59. Stephen P.Robbins, fundamental of management, Pearson 2003
60. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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