COURSE NOTESFOR

Bachelor Computer ApplicationsFirst Semester

Principal Of Managementas per syllabus of

Mahatma Gandhi Kashi Vidyapith, VaranasiPrepared By: MILAN GUPTA

Department of Computer ScienceMicrotek College of Management &

TechnologyVaranasi.

BCA-S103 Principles of Management UNIT-I

Nature of Management: Meaning, Definition, nature & purpose, importance & Functions,

Management as Art, Science & Profession- Management as social System Concepts of management-Administration-

Organization, Management Skills, Levels of Management.

UNIT-II Evolution of Management Thought: Contribution of F.W.Taylor, Henri Fayol, Elton Mayo, Chester Barhard &

Peter Drucker to the management thought. Business Ethics & Social Responsibility: Concept, Shift to Ethics,

Tools of Ethics.UNIT-III

Functions of Management: Part-I Planning – Meaning- Need & Importance, types, Process of Planning,

Barriers to Effective Planning, levels – advantages & limitations. Forecasting- Need & Techniques Decision

making-Types - Process of rational decision making & techniques of decision making, Organizing – Elements

of organizing & processes: Types of organizations, Delegation of authority – Need, difficulties , Delegation –

Decentralization Staffing – Meaning & Importance Direction – Nature – Principles Communication – Types & Importance

UNIT-IV Functions of Management: Part-II Motivation – Importance – theories Leadership – Meaning –styles, qualities & function of leader Controlling - Need, Nature, importance, Process & Techniques, Total

Quality Management Coordination – Need – Importance

UNIT – V Management of Change: Models for Change, Force for Change, Need for

Change, Alternative Change Techniques, New Trends in Organization Change, Stress Management.

UNIT-VI Strategic Management Definition, Classes of Decisions, Levels of Decision, Strategy, Role of

different Strategist, Relevance of Strategic Management and its Benefits, Strategic Management in India

Reference Books: Essential of Management – Horold Koontz and Iteinz Weibrich- McGraw-

Hill’s International Management Theory & Practice – J.N.Chandan

UNIT-1

MEANING OF MANAGEMENT

ACCORDING TO THEO HEIMANN, MANAGEMENT HAS THREE DIFFERENT MEANINGS, VIZ.,1.MANAGEMENT AS A NOUN : REFERS TO A GROUP OF MANAGERS.2.MANAGEMENT AS A PROCESS : REFERS TO THE FUNCTIONS OF MANAGEMENT I.E. PLANNING, ORGANISING, DIRECTING, CONTROLLING, ETC.3.MANAGEMENT AS A DISCIPLINE : REFERS TO THE SUBJECT OF MANAGEMENT

MANAGEMENT BRINGS TOGETHER ALL SIX MS I.E. MEN AND WOMEN, MONEY, MACHINES, MATERIALS, METHODS AND MARKETS. THEY USE THESE RESOURCES FOR ACHIEVING THE OBJECTIVES OF THE ORGANISATION SUCH AS HIGH SALES, MAXIMUM PROFITS, BUSINESS EXPANSION, ETC.

DEFINITION OF MANAGEMENT

MANY MANAGEMENT EXPERTS HAVE TRIED TO DEFINE MANAGEMENT. BUT, NO DEFINITION OF MANAGEMENT HAS BEEN UNIVERSALLY ACCEPTED. LET US DISCUSS SOME OF THE LEADING DEFINITIONS OF MANAGEMENT:PETER F. DRUCKER DEFINES, "MANAGEMENT IS AN ORGAN; ORGANS CAN BE DESCRIBED AND DEFINED ONLY THROUGH THEIR FUNCTIONS".ACCORDING TO TERRY, "MANAGEMENT IS NOT PEOPLE; IT IS AN ACTIVITY LIKE WALKING, READING, SWIMMING OR RUNNING. PEOPLE WHO PERFORM MANAGEMENT CAN BE DESIGNATED AS MEMBERS, MEMBERS OF MANAGEMENT OR EXECUTIVE LEADERS."RALPH C. DAVIS HAS DEFINED MANAGEMENT AS, "MANAGEMENT IS THE FUNCTION OF EXECUTIVE LEADERSHIP ANYWHERE." ACCORDING TO MC FARLAND, "MANAGEMENT IS DEFINED FOR CONCEPTUAL, THEORETICAL AND ANALYTICAL PURPOSES AS THAT PROCESS BY WHICH MANAGERS CREATE, DIRECT, MAINTAIN AND OPERATE PURPOSIVE ORGANIZATION THROUGH SYSTEMATIC, CO-ORDINATED CO-OPERATIVE HUMAN EFFORT."HENRY FAYOL, "TO MANGE IS TO FORECAST AND PLAN, TO ORGANIZE, TO COMPOUND, TO CO-ORDINATE AND TO CONTROL."HAROLD KOONTZ SAYS, "MANAGEMENT IS THE ART OF GETTING THINGS DONE THROUGH AND WITHIN FORMALLY ORGANIZED GROUP."KIMBALL AND KIMBALL, "MANAGEMENT EMBRACES ALL DUTIES AND FUNCTIONS THAT PERTAIN TO THE INITIATION OF AN ENTERPRISE, ITS FINANCING, THE ESTABLISHMENT OF

ALL MAJOR POLICIES, THE PROVISION OF ALL NECESSARY EQUIPMENT, THE OUTLINING OF THE GENERAL FORM OF ORGANIZATION UNDER WHICH THE ENTERPRISE IS TO OPERATE AND THE SELECTION OF THE PRINCIPAL OFFICERS.".

NATURE OF MANAGEMENT MANAGEMENT IS A MULTI-DISCIPLINARY IN NATURE AND IS DISTINCT ACTIVITY. MANAGEMENT HAS BEEN REGARDED AS SCIENCE AND AN ART AND A PROFESSION. THE TRUE NATURE OF MANAGEMENT CAN BE KNOWN ONLY AFTER STUDYING THESE ASPECT OF MANAGEMENT. THE FOLLOWING ARE THE SALIENT NATURE OF MANAGEMENT:

1.MANAGEMENT IS A SCIENCE AND AN ART

2.MANAGEMENT IS UNIVERSAL

3.MANAGEMENT IS GOAL ORIENTED

4.MANAGEMENT IS ECONOMIC RESOURCE

5.MANAGEMENT IS DISTINCT PROCESS

6.MANAGEMENT IS A GROUP ACTIVITY

7.MANAGEMENT IS AN INTANGIBLE FORCE

8.MANAGEMENT IS A MULTI-DISCIPLINARY SUBJECT

9.MANAGEMENT IS DYNAMIC

10.SYSTEMS OF AUTHORITY

PURPOSE OF MANAGEMENT IT IS THE PROCESS OF BRINGING TOGETHER PHYSICAL, FINANCIAL AND HUMAN RESOURCES AND DEVELOPING PRODUCTIVE RELATIONSHIP AMONGST THEM FOR ACHIEVEMENT OF ORGANIZATIONAL GOALS.

•TO ORGANIZE A BUSINESS INVOLVES DETERMINING & PROVIDING HUMAN AND NON-HUMAN RESOURCES TO THE ORGANIZATIONAL STRUCTURE. ORGANIZING AS A PROCESS INVOLVES: •IDENTIFICATION OF ACTIVITIES.•CLASSIFICATION OF GROUPING OF ACTIVITIES.•ASSIGNMENT OF DUTIES.•DELEGATION OF AUTHORITY AND CREATION OF RESPONSIBILITY.

•COORDINATING AUTHORITY AND RESPONSIBILITY RELATIONSHIPS

THE MAIN PURPOSE OF STAFFING IS TO PUT RIGHT MAN ON RIGHT JOB I.E. SQUARE PEGS IN SQUARE HOLES AND ROUND PEGS IN ROUND HOLES.•ESTABLISHMENT OF STANDARD PERFORMANCE.•MEASUREMENT OF ACTUAL PERFORMANCE.•COMPARISON OF ACTUAL PERFORMANCE WITH THE STANDARDS AND FINDING OUT DEVIATION IF ANY.•CORRECTIVE ACTION

MANAGEMENT FUNCTIONS

HENRY FAYOL FIRST REAL THINKER OF MANAGEMENT PHILOSOPHY HAS CLASSIFIED THE FUNCTIONS AS

1.PLANNING

2.ORGANIZING

3.COMMANDING (DIRECTING)4.STAFFING

5.CONTROLLING

PLANNING:

PLANNING IS DECIDING IN ADVANCE - WHAT TO DO, WHEN TO DO & HOW TO DO. IT BRIDGES THE GAP FROM WHERE WE ARE & WHERE WE WANT TO BE”. A PLAN IS A FUTURE COURSE OF ACTIONS. IT IS AN EXERCISE IN PROBLEM SOLVING & DECISION MAKING. PLANNING IS DETERMINATION OF COURSES OF ACTION TO ACHIEVE DESIRED GOALS.

ORGANIZING IT IS THE PROCESS OF BRINGING TOGETHER PHYSICAL, FINANCIAL AND HUMAN RESOURCES AND DEVELOPING PRODUCTIVE RELATIONSHIP AMONGST THEM FOR ACHIEVEMENT OF ORGANIZATIONAL GOALS.

•TO ORGANIZE A BUSINESS INVOLVES DETERMINING & PROVIDING HUMAN AND NON-HUMAN RESOURCES TO THE ORGANIZATIONAL STRUCTURE. ORGANIZING AS A PROCESS INVOLVES: •IDENTIFICATION OF ACTIVITIES.•CLASSIFICATION OF GROUPING OF ACTIVITIES.•ASSIGNMENT OF DUTIES.•DELEGATION OF AUTHORITY AND CREATION OF RESPONSIBILITY.•COORDINATING AUTHORITY AND RESPONSIBILITY RELATIONSHIPS

STAFFING:

THE MAIN PURPOSE OF STAFFING IS TO PUT RIGHT MAN ON RIGHT JOB I.E. SQUARE PEGS IN SQUARE HOLES AND ROUND PEGS IN ROUND HOLES.ACCORDING TO KOOTZ & O’DONELL, “MANAGERIAL FUNCTION OF STAFFING INVOLVES MANNING THE ORGANIZATION STRUCTURE THROUGH PROPER AND EFFECTIVE SELECTION, APPRAISAL & DEVELOPMENT OF PERSONNEL TO FILL THE ROLES DESIGNED ON THE STRUCTURE”.

DIRECTING IT IS THAT PART OF MANAGERIAL FUNCTION WHICH ACTUATES THE ORGANIZATIONAL METHODS TO WORK EFFICIENTLY FOR ACHIEVEMENT OF ORGANIZATIONAL PURPOSES.IT IS CONSIDERED LIFE-SPARK OF THE ENTERPRISE WHICH SETS IT IN MOTION THE ACTION OF PEOPLE BECAUSE PLANNING, ORGANIZING AND STAFFING ARE THE MERE PREPARATIONS FOR DOING THE WORK. DIRECTION IS THAT INERT-PERSONNEL ASPECT OF MANAGEMENT WHICH DEALS DIRECTLY WITH INFLUENCING, GUIDING, SUPERVISING, MOTIVATING SUB-ORDINATE FOR THE ACHIEVEMENT OF ORGANIZATIONAL GOALS.

DIRECTION HAS FOLLOWING ELEMENTS: •SUPERVISION

•MOTIVATION

•LEADERSHIP

•COMMUNICATION

CONTROLLING CONTROLLING IS THE MEASUREMENT & CORRECTION OF PERFORMANCE ACTIVITIES OF SUBORDINATES IN ORDER TO MAKE SURE THAT THE ENTERPRISE OBJECTIVES AND PLANS DESIRED TO OBTAIN THEM AS BEING ACCOMPLISHED”. THEREFORE CONTROLLING HAS FOLLOWING STEPS:•ESTABLISHMENT OF STANDARD PERFORMANCE.•MEASUREMENT OF ACTUAL PERFORMANCE.

•COMPARISON OF ACTUAL PERFORMANCE WITH THE STANDARDS AND FINDING OUT DEVIATION IF ANY.•CORRECTIVE ACTION

MANAGEMENT AS A SCIENCE : DEVELOPMENT OF MANAGEMENT AS A SCIENCE IS OF RECENT ORIGIN, EVEN THOUGH ITS PRACTICE IS AGES OLD. FREDRICK W. TAYLOR WAS THE FIRST MANAGER-THEORIST WHO MADE SIGNIFICANT CONTRIBUTIONS TO THE DEVELOPMENT OF MANAGEMENT AS A SCIENCE. HE USED THE SCIENTIFIC METHODS OF ANALYSIS, OBSERVATION AND EXPERIMENTATION IN THE MANAGEMENT OF PRODUCTION FUNCTION. A PERCEPTIVE MANAGER, AS HE WAS, HE DISTILLED CERTAIN FUNDAMENTAL PRINCIPLES AND PROPOUNDED THE THEORY AND PRINCIPLES OF SCIENTIFIC MANAGEMENT. HIS WORK WAS FOLLOWED BY MANY OTHERS INCLUDING GANTT, EMERSON, FAYOL, BARNARD, ETC. DURING THE LAST FEW DECADES, GREAT STRIDES HAVE BEEN MADE IN THE DEVELOPMENT OF MANAGEMENT AS A SYSTEMATIZED BODY OF KNOWLEDGE WHICH CAN BE LEARNT, TAUGHT AND RESEARCHED. IT HAS ALSO PROVIDED POWERFUL TOOLS OF ANALYSIS, PREDICTION AND CONTROL TO PRACTICING MANAGERS. THE SCIENTIFIC CHARACTER OF MANAGEMENT HAS BEEN PARTICULARLY STRENGTHENED BY MANAGEMENT SCIENTISTS WHO HAVE DEVELOPED MATHEMATICAL MODELS OF DECISION MAKING.

MANAGEMENT AS AN ART : PRINCIPLES OF MANAGEMENT LIKE THE PRINCIPLES OF MEDICINE ARE USED BY THE PRACTITIONER NOT AS RULES OF THUMB BUT AS GUIDES IN SOLVING PRACTICAL PROBLEMS. IT IS OFTEN SAID THAT MANAGERIAL DECISION MAKING INVOLVES A LARGE ELEMENT OF JUDGEMENT. THIS IS TRUE TOO. THE RAGING CONTROVERSY WHETHER MANAGEMENT IS A SCIENCE OR AN ART IS FRUITLESS. IT IS A SCIENCE AS WELL AS AN ART. DEVELOPMENTS IN THE FIELD OF THE KNOWLEDGE OF MANAGEMENT HELP IN THE IMPROVEMENT OF ITS PRACTICE; AND IMPROVEMENTS IN THE PRACTICE OF MANAGEMENT SPUR FURTHER RESEARCH AND STUDY RESULTING IN FURTHER DEVELOPMENT OF MANAGEMENT SCIENCE.

MANAGEMENT AS A PROFESSION : WE OFTEN HEAR OF PROFESSIONALISATION OF MANAGEMENT IN OUR COUNTRY. BY A PROFESSIONAL MANAGER, WE GENERALLY MEAN A MANAGER WHO UNDERTAKES MANAGEMENT AS A CAREER AND I NOT INTERESTED IN ACQUIRING OWNERSHIP SHARE IN THE ENTERPRISE WHICH HE MANAGES. BUT, IS MANAGEMENT A PROFESSION IN THE TRUE SENSE OF THE WORD? OR, IS MANAGEMENT A PROFESSION LIKE THE PROFESSIONS OF LAW AND MEDICINE? ACCORDING TO MCFARLAND A PROFESSION POSSESS THE FOLLOWING CHARACTERISTICS : (I) A BODY OF PRINCIPLES, TECHNIQUES, SKILLS, AND SPECIALIZED KNOWLEDGE; (II) FORMALIZED METHODS OF ACQUIRING TRAINING AND EXPERIENCE; (III) THE ESTABLISHMENT OF A REPRESENTATIVE ORGANIZATION WITH PROFESSIONALISATION AS ITS GOAL; (IV) THE FORMATION OF ETHICAL CODES FOR THE GUIDANCE OF CONDUCT; AND (V) THE CHARGING OF FEES BASED ON THE NATURE OF

SERVICES.MANAGEMENT IS A PROFESSION TO THE EXTENT IT FULFILS THE ABOVE CONDITIONS.

MANAGEMENT AS SOCIAL SYSTEM APPROACH

• UNDERSTANDING THE BEHAVIOUR OF GROUPS & INDIVIDUALS.• FEATURES

1. SOCIAL SYSTEM, A SYSTEM OF CULTURAL RELATIONSHIP

2. RELATIONSHIP EXIST BETWEEN EXTERNAL AND INTERNAL ENVIRONMENT

OF THE ORGANISATION.3. FORMAL ORGANISATION - CULTURAL RELATIONSHIPS OF SOCIAL

GROUPS

WORKING WITHIN THE ORGANISATION.4. CO-OPERATION NECESSARY

5. EFFORTS DIRECTED - HARMONY BETWEEN GOALS OF ORGANISATION &GOALS OF GROUPS.

SYSTEMS APPROACH • AN ENTERPRISE

• MAN-MADE SYSTEM

• INTERNAL PARTS

• ACHIEVE ESTABLISHED GOALS

• EXTERNAL PARTS

• ACHIEVE INTERPLAY WITH ITS ENVIRONMENT

• MANAGER INTEGRATES HIS AVAILABLE FACILITIES WITH GOAL

ACHIEVEMENT.

LEVELS OF MANAGEMENT

AN ENTERPRISE MAY HAVE DIFFERENT LEVELS OF MANAGEMENT. LEVELS OF MANAGEMENT REFER TO A LINE OF DEMARCATION BETWEEN VARIOUS MANAGERIAL POSITIONS IN AN ENTERPRISE. THE LEVELS OF MANAGEMENT DEPEND UPON ITS SIZE, TECHNICAL FACILITIES, AND THE RANGE OF PRODUCTION. WE GENERALLY COME ACROSS TWO BROAD LEVELS OF MANAGEMENT, VIZ. (I) ADMINISTRATIVE MANAGEMENT (I.E., THE UPPER LEVEL OF MANAGEMENT) AND (II) OPERATING MANAGEMENT (I.E., THE LOWER

LEVEL OF MANAGEMENT).

HREE LEVELS OF MANAGEMENT NAMELY :TOP MANAGEMENT OF A COMPANY CONSISTS OF OWNERS/SHAREHOLDERS, BOARD OF DIRECTORS, ITS CHAIRMAN, MANAGING DIRECTOR, OR THE CHIEF EXECUTIVE, OR THE GENERAL MANAGER OR EXECUTIVE COMMITTEE HAVING KEY OFFICERS.

MIDDLE MANAGEMENT OF A COMPANY CONSISTS OF HEADS OF FUNCTIONAL DEPARTMENTS VIZ. PURCHASE MANAGER, PRODUCTION MANAGER, MARKETING MANAGER, FINANCIAL CONTROLLER, ETC. AND DIVISIONAL AND SECTIONAL OFFICERS WORKING UNDER THESE FUNCTIONAL HEADS.LOWER LEVEL OR OPERATIVE MANAGEMENT OF A COMPANY CONSISTS OF SUPERINTENDENTS, FOREMEN, SUPERVISORS, ETC.

TOP MANAGEMENT : TOP MANAGEMENT IS THE ULTIMATE SOURCE OF AUTHORITY AND IT LAYS DOWN GOALS, POLICIES AND PLANS FOR THE ENTERPRISE. IT DEVOTES MORE TIME ON PLANNING AND COORDINATING FUNCTIONS TOP MANAGEMENT INCLUDE :

TO ESTABLISH THE OBJECTIVES OR GOALS OF THE ENTERPRISE. TO MAKE POLICIES AND FRAME PLANS TO ATTAIN THE OBJECTIVES LAID. TO SET UP AN ORGANIZATIONAL FRAME WORK TO CONDUCT THE OPERATIONS AS

PER PLANS. TO ASSEMBLE THE RESOURCES OF MONEY, MEN, MATERIALS, MACHINES AND

METHODS TO PUT THE PLANS INTO ACTION. TO EXERCISE EFFECTIVE CONTROL OF THE OPERATIONS. TO PROVIDE OVERALL LEADERSHIP TO THE ENTERPRISE.

MIDDLE MANAGEMENT : THE JOB OF MIDDLE MANAGEMENT IS TO IMPLEMENT THE POLICIES AND PLANS FRAMED BY THE TOP MANAGEMENT. IT SERVES AS AN ESSENTIAL LINK BETWEEN THE TOP MANAGEMENT AND THE LOWER LEVEL OR OPERATIVE MANAGEMENT. THE MAIN FUNCTIONS OF MIDDLE MANAGEMENT :

TO INTERPRET THE POLICIES CHALKED OUT BY TOP MANAGEMENT. TO PREPARE THE ORGANIZATIONAL SET UP IN THEIR OWN DEPARTMENTS FOR

FULFILLING THE OBJECTIVES IMPLIED IN VARIOUS BUSINESS POLICIES. TO RECRUIT AND SELECT SUITABLE OPERATIVE AND SUPERVISORY STAFF. TO ASSIGN ACTIVITIES, DUTIES AND RESPONSIBILITIES FOR TIMELY

IMPLEMENTATION OF THE PLANS. TO COMPILE ALL THE INSTRUCTIONS AND ISSUE THEM TO SUPERVISOR UNDER

THEIR CONTROL. TO MOTIVATE PERSONNEL TO ATTAIN HIGHER PRODUCTIVITY AND TO REWARD

THEM PROPERLY. TO COOPERATE WITH THE OTHER DEPARTMENTS FOR ENSURING A SMOOTH

FUNCTIONING OF THE ENTIRE ORGANIZATION. TO COLLECT REPORTS AND INFORMATION ON PERFORMANCE IN THEIR

DEPARTMENTS. TO REPORT TO TOP MANAGEMENT TO MAKE SUITABLE RECOMMENDATIONS TO THE TOP MANAGEMENT FOR THE

BETTER EXECUTION OF PLANS AND POLICIES.

LOWER OR OPERATIVE MANAGEMENT : IT IS PLACED AT THE BOTTOM OF THE HIERARCHY OF MANAGEMENT, AND ACTUAL OPERATIONS ARE THE RESPONSIBILITY OF THIS LEVEL OF MANAGEMENT. IT CONSISTS OF FOREMAN, SUPERVISORS, SALES

OFFICERS, ACCOUNTS OFFICERS AND SO ON. THEY ARE IN DIRECT TOUCH WITH THE RANK AND FILE OR WORKERS. THEIR AUTHORITY AND RESPONSIBILITY IS LIMITED.

MANAGERIAL SKILLS A SKILL IS AN INDIVIDUAL'S ABILITY TO TRANSLATE KNOWLEDGE INTO ACTION. HENCE, IT IS MANIFESTED IN AN INDIVIDUAL'S PERFORMANCE. SKILL IS NOT NECESSARILY INBORN. IT CAN BE DEVELOPED THROUGH PRACTICE AND THROUGH RELATING LEARNING TO ONE'S OWN PERSONAL EXPERIENCE AND BACKGROUND. THESE ARE CONCEPTUAL SKILL, HUMAN RELATIONS SKILL AND TECHNICAL SKILL. CONCEPTUAL SKILL DEALS WITH IDEAS, TECHNICAL SKILL WITH THINGS AND HUMAN SKILL WITH PEOPLE. WHILE BOTH CONCEPTUAL AND TECHNICAL SKILLS ARE NEEDED FOR GOOD DECISION-MAKING, HUMAN

SKILL IN NECESSARY FOR A GOOD LEADER.

THE CONCEPTUAL SKILL REFERS TO THE ABILITY OF A MANAGER TO TAKE A BROAD AND FARSIGHTED VIEW OF THE ORGANIZATION AND ITS FUTURE, HIS ABILITY TO THINK IN ABSTRACT, HIS ABILITY TO ANALYZE THE FORCES WORKING IN A SITUATION, HIS CREATIVE AND INNOVATIVE ABILITY AND HIS ABILITY TO ASSESS THE ENVIRONMENT AND THE CHANGES TAKING PLACE IN IT. THE TECHNICAL SKILL IS THE MANAGER'S UNDERSTANDING OF THE NATURE OF JOB THAT PEOPLE UNDER HIM HAVE TO PERFORM. IT REFERS TO A PERSON'S KNOWLEDGE AND PROFICIENCY IN ANY TYPE OF PROCESS OR TECHNIQUE. IN A PRODUCTION DEPARTMENT THIS WOULD MEAN AN UNDERSTANDING OF THE TECHNICALITIES OF THE PROCESS OF PRODUCTION. HUMAN RELATIONS SKILL IS THE ABILITY TO INTERACT EFFECTIVELY WITH PEOPLE AT ALL LEVELS. THIS SKILL DEVELOPS IN THE MANAGER SUFFICIENT ABILITY (A) TO RECOGNIZE THE FEELINGS AND SENTIMENTS OF OTHERS; (B) TO JUDGE THE POSSIBLE ACTIONS TO, AND OUTCOMES OF VARIOUS COURSES OF ACTION HE MAY UNDERTAKE; AND (C) TO EXAMINE HIS OWN CONCEPTS AND VALUES WHICH MAY ENABLE HIM TO DEVELOP MORE USEFUL ATTITUDES ABOUT HIMSELF.

UNIT 2 FAYOL HELD THAT THERE IS A SINGLE "ADMINISTRATIVE SCIENCE", WHOSE PRINCIPLES CAN BE USED IN ALL MANAGEMENT SITUATIONS NO MATTER WHAT KIND OF

ORGANIZATION WAS BEING MANAGED.

FAYOL HELD THAT ACTIVITIES OF AN INDUSTRIAL ENTERPRISE CAN BE GROUPED IN SIX CATEGORIES : (I) TECHNICAL (PRODUCTION), (II) COMMERCIAL (BUYING, SELLING AND EXCHANGE), (III) FINANCIAL (SEARCH FOR AND OPTIMUM USE OF CAPITAL), (IV) SECURITY (PROTECTION OF PROPERTY AND PERSONS), (V) ACCOUNTING (INCLUDING STATISTICS); AND (VI) MANAGERIAL. HOWEVER, HE DEVOTED MOST OF HIS ATTENTION TO MANAGERIAL ACTIVITY. HE DEVELOPED THE FOLLOWING PRINCIPLES UNDERLYING MANAGEMENT OF ALL KINDS OF ORGANIZATIONS :THIS ASPECT OF RELATIONSHIP BETWEEN RESPONSIBILITY AND AUTHORITY IS PARTICULARLY RELEVANT IN INDIA WHERE AUTHORITY TENDS TO BE CONCENTRATED IN HIGHER ECHELONS OF MANAGEMENT.

UNITY OF COMMAND : THIS PRINCIPLE HOLDS THAT ONE EMPLOYEE SHOULD HAVE ONLY ONE BOSS AND RECEIVE INSTRUCTIONS FROM HIM ONLY. FAYOL OBSERVED THAT IF THIS PRINCIPLE IS VIOLATED AUTHORITY WILL BE UNDERMINED, DISCIPLINE WILL BE JEOPARDY, ORDER WILL BE DISTURBED AND STABILITY WILL BE THREATENED. DUAL COMMAND IS A PERMANENT SOURCE OF CONFLICT. THEREFORE, IN EVERY ORGANIZATION, EACH SUBORDINATE SHOULD HAVE ONE SUPERIOR WHOSE COMMAND HE HAS TO OBEY.

UNITY OF DIRECTION : THIS MEANS THAT ALL MANAGERIAL AND OPERATIONAL ACTIVITIES WHICH RELATE A DISTINCT GROUP WITH THE SAME OBJECTIVE SHOULD BE DIRECTED BY "ONE HEAD AND ONE PLAN. ACCORDING TO FAYOL, THERE SHOULD BE, "ONE HEAD AND ONE PLAN FOR A GROUP OF ACTIVITIES HAVING THE SAME OBJECTIVE". IT, HOWEVER, DOES NOT MEAN THAT ALL DECISIONS SHOULD BE MADE AT THE TOP.

SCALAR CHAIN OF COMMAND : ACCORDING TO FAYOL SCALAR CHAIN IS THE CHAIN OF SUPERIORS RANGING FROM THE ULTIMATE AUTHORITY TO THE LOWEST RANKS. THE LINE OF AUTHORITY IS THE ROUTE FOLLOWED VIA EVERY LINK IN THE CHAIN BY ALL COMMUNICATION WHICH START FROM OR GO TO THE ULTIMATE AUTHORITY.

DIVISION OF WORK : THIS IS THE PRINCIPLE OF SPECIALIZATION WHICH, ACCORDING TO FAYOL, APPLIES TO ALL KINDS OF WORK, MANAGERIAL AS WELL AS TECHNICAL. IT HELPS A PERSON TO ACQUIRE AN ABILITY AND ACCURACY WITH WHICH HE CAN DO MORE AND BETTER WORK WITH THE SAME EFFORT.

DISCIPLINE : DISCIPLINE IS A SINE QUA NON FOR THE PROPER FUNCTIONING OF AN ORGANIZATION. MEMBERS OF AN ORGANIZATION ARE REQUIRED TO PERFORM THEIR FUNCTIONS AND CONDUCT THEMSELVES IN RELATION TO OTHERS ACCORDING TO RULES, NORMS AND CUSTOMS.

SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST : THE INTEREST OF THE ORGANIZATION IS ABOVE THE INTERESTS OF THE INDIVIDUAL AND THE GROUP. IT CAN BE ACHIEVED ONLY WHEN MANAGERS IN HIGH POSITIONS IN THE ORGANIZATION SET AN EXAMPLE OF HONESTY, INTEGRITY, FAIRNESS AND JUSTICE.

REMUNERATION : EMPLOYEES SHOULD BE PAID FAIRLY AND EQUITABLY. DIFFERENTIALS IN REMUNERATION SHOULD BE BASED ON JOB DIFFERENTIALS, IN TERMS OF QUALITIES OF THE EMPLOYEE, APPLICATION, RESPONSIBILITY, WORKING CONDITIONS AND DIFFICULTY OF THE JOB..

CENTRALISATION : FAYOL BELIEVED IN CENTRALISATION. HE, HOWEVER, DID NOT CONTEMPLATE CONCENTRATION OF ALL DECISION MAKING AUTHORITY IN THE TOP MANAGEMENT. HE, HOWEVER, HELD THAT CENTRALISATION AND DECENTRALISATION IS A QUESTION OF PROPORTION. THE DEGREE OF CENTRALISATION AND DECENTRALISATION ALSO DEPENDS ON THE QUALITY OF MANAGERS.

ORDER : ORDER, IN THE CONCEPTION OF FAYOL, MEANS RIGHT PERSON ON THE RIGHT JOB AND EVERYTHING IN ITS PROPER PLACE. THIS KIND OF ORDER, DEPENDS ON PRECISE KNOWLEDGE OF HUMAN REQUIREMENTS AND RESOURCES OF THE CONCERN AND A CONSTANT BALANCE BETWEEN THESE REQUIREMENTS AND RESOURCES.

EQUITY : IT MEANS THAT SUBORDINATES SHOULD BE TREATED WITH JUSTICE AND KINDLINESS. THIS IS ESSENTIAL FOR ELICITING THEIR DEVOTION AND LOYALTY TO THE ENTERPRISE. IT IS, THEREFORE THE DUTY OF THE CHIEF EXECUTIVE TO INSTILL A SENSE OF EQUITY THROUGHOUT ALL LEVELS OF SCALAR CHAIN.

STABILITY OF TENURE OF PERSONNEL : THE MANAGERIAL POLICIES SHOULD PROVIDE A SENSE OF REASONABLE JOB SECURITY. THE HIRING AND FIRING OF PERSONNEL SHOULD DEPEND NOT ON THE WHIMS OF THE SUPERIORS BUT ON THE WELL-CONCEIVED PERSONNEL POLICIES. HOWEVER, "A MEDIORCE MANAGER WHO STAYS IS INFINITELY PREFERABLE TO OUTSTANDING MANAGERS WHO COME AND GO".

INITIATIVE : IT FOCUSES ON THE ABILITY, ATTITUDE AND RESOURCEFULNESS TO ACT WITHOUT PROMPTING FROM OTHERS. MANAGERS MUST CREATE AN ENVIRONMENT WHICH ENCOURAGES THEIR SUBORDINATES TO TAKE INITIATIVE AND RESPONSIBILITY.

ESPRIT DE CORPS : COHESIVENESS AND TEAM SPIRIT SHOULD BE ENCOURAGED AMONG EMPLOYEES. IT IS ONE OF THE CHIEF CHARACTERISTICS OF ORGANIZED ACTIVITY THAT A NUMBER OF PEOPLE WORK TOGETHER IN CLOSE COOPEARATION FOR THE ACHIEVEMENT OF COMMON GOALS.. WHERE NECESSARY, SHOULD ALWAYS BE

SUPPLEMENTED BY ORAL COMMUNICATION BECAUSE FACE-TO-FACE CONTACTS TEND TO PROMOTE SPEED, CLARITY AND HARMONY.

CHESTER BARNARD'S SOCIAL SYSTEMS APPROACH AND CONTRIBUTION TO MANAGEMENT!

BARNARD'S CONTRIBUTIONS TO MANAGEMENT THOUGHT:

BARNARD SUGGESTED SOCIAL SYSTEMS APPROACH TO MANAGEMENT. HIS MAIN CONTRIBUTIONS TO MANAGEMENT THOUGHT CAN BE DESCRIBED AS FOLLOWS:

1. THEORY OF FORMAL ORGANISATION: BARNARD GAVE A THEORY OF FORMAL ORGANISATION. HE DEFINED IT AS "A SYSTEM OF CONSCIOUSLY CO-ORDINATED ACTIVITIES OF FORCES OF TWO OR MORE PERSONS." ACCORDING TO HIM, ORGANISATION CONSISTED OF HUMAN BEINGS WHOSE ACTIVITIES WERE CO-ORDINATED AND THEREFORE BECOMES A SYSTEM : ACCORDING TO BARNARD INITIAL EXISTENCE OF ORGANISATION DEPENDS UPON THREE ELEMENTS : (I) THE WILLINGNESS OF PERSONS TO CONTRIBUTE EFFORTS TO THE CO-OPERATIVE SYSTEM (II) THERE SHOULD BE AN OBJECTIVE OF CO-OPERATION AND (III) PROPER COMMUNICATION SYSTEM IS NECESSARY.

2. ORGANISATIONAL EQUILIBRIUM: BARNARD SUGGESTED AN EQUILIBRIUM MODEL TO DESCRIBE THE BALANCE ACHIEVED BETWEEN THE CONTRIBUTIONS OF THE MEMBERS OF AN ORGANISATION AND RETURN CONTRIBUTION MADE BY THE ORGANISATION TO THE FULFILMENT OF PRIVATE GOALS OF THE MEMBERS. BARNARD TREATED ORGANISATION AS SEPARATE FROM THE ENVIRONMENT WHERE IT WORKS.

THE PERSONS WORKING IN THE ORGANISATION HAVE TWO ROLES—A PERSONAL ROLE AND AN ORGANISATIONAL ROLE. THERE SHOULD BE A BALANCE BETWEEN WHAT

EMPLOYEES GET OUT OF THE ORGANISATION (MONEY, STATUS, RECOGNITION, ETC.) AND WHAT THEY CONTRIBUTE IN FORM OF TIME, KNOWLEDGE, DISCOMFORT, PRODUCTION, ETC.

3. ACCEPTANCE THEORY OF AUTHORITY: ACCORDING, TO BARNARD THE DECISION AS TO WHETHER AN ORDER HAS AUTHORITY OR NOT LIES WITH THE PERSON TO WHOM IT IS ADDRESSED, AND DOES NOT RESIDE IN PERSONS OF AUTHORITY OR THOSE WHO ISSUE THESE ORDERS. THUS IN BARNARD'S VIEW, IF A SUBORDINATE DOES NOT ACCEPT HIS MANAGER'S AUTHORITY, IT DOES NOT EXIST.

A PERSON WILL ACCEPT AUTHORITY UNDER FOLLOWING CONDITIONS':

(A) HE CAN AND DOES UNDERSTAND THE COMMUNICATION;

(B) AT THE TIME OF HIS DECISION HE BELIEVES THAT IT IS NOT INCONSISTENT WITH THE PURPOSE OF THE ORGANISATION.

(C) AT THE TIME OF HIS DECISION, HE BELIEVES IT TO BE COMPATIBLE WITH HIS PERSONAL INTEREST AS A WHOLE; AND

(D) HE IS ABLE (MENTALLY AND PHYSICALLY) TO COMPLY WITH IT.

4. FUNCTIONS OF THE EXECUTIVE:

BARNARD POSTULATED THREE TYPES OF FUNCTIONS FOR THE EXECUTIVES IN FORMA! ORGANISATIONAL SET UP. THESE FUNCTIONS ARE:(A) MAINTAINING PROPER COMMUNICATION IN THE ORGANISATION

(B) OBTAINING ESSENTIAL SERVICES FROM INDIVIDUALS FOR ACHIEVING ORGANISATIONAL GOALS

(C) FORMULATING PURPOSES AND OBJECTIVES AT ALL LEVELS.

5. INFORMAL ORGANISATION:

BARNARD WAS OF THE OPINION THAT BOTH FORMAL AND INFORMAL ORGANISATIONS CO-EXIST IN EVERY ENTERPRISE. INFORMAL ORGANISATION REFERS TO THOSE SOCIAL INTERACTIONS WHICH DO NOT HAVE CONSCIOUSLY CO-ORDINATED JOINT PURPOSE.

THIS ORGANISATION EXISTS TO OVERCOME THE PROBLEMS OF FORMAL ORGANISATION. BARNARD SUGGESTED THAT EXECUTIVES SHOULD ENCOURAGE THE DEVELOPMENT OF INFORMAL ORGANISATION TO BRING COHESIVENESS IN THE ORGANISATION AND ALSO TO SERVE AS A MEANS OF COMMUNICATION.

F.W.TYLOR MANAGEMET

TAYLOR'S METHOD CONSISTED OF TESTING THE COMPLETION OF VARIOUS TASKS TO DETERMINE THE OPTIMAL AMOUNT OF WORK THAT COULD BE ACCOMPLISHED WITHIN A

CERTAIN TIME PERIOD. TAYLOR'S MANAGEMENT THEORY ASSERTS THAT ORGANIZATIONS SHOULD IDENTIFY THE BEST WAY TO DO A JOB, TRAIN WORKERS TO. SOME DEVELOPMENTS THAT RESULTED FROM THE TAYLOR THEORY OF MANAGEMENT ARE THESE:

1. SIGNIFICANTLY IMPROVED PRODUCTIVITY;2. INCREASED EMPLOYEE INCENTIVE;3. WIDESPREAD IMPROVEMENTS IN QUALITY CONTROL;4. BETTER PERSONNEL PRACTICES; AND

5. GREATER COOPERATION BETWEEN MANAGEMENT AND WORKERS WITH A CONSISTENT APPLICATION OF TAYLOR S THEORY OF MANAGEMENT.

ACCORDING TO TAYLOR, “SCIENTIFIC MANAGEMENT MEANS KNOWING EXACTLY WHAT YOU WANT MEN TO DO AND SEEING THAT THEY DO IT IN THE BEST AND CHEAPEST WAY.”SCIENTIFIC MANAGEMENT IS BASED ON THE ANALYSIS, PLANNING AND CONTROL FUNCTIONS. AND JOB ACCOMPLISHED BY ANALYZING, AND WORKS CAN SELECTED AND TRAINED SCIENTIFICALLY. IN THIS, MANAGEMENT ROLE IS TO DETERMINE THE KIND OF WORK FOR WHICH AN EMPLOYEE SUITED AND HIRE AND ASSIGN WORKERS ACCORDINGLY. MANAGEMENT IS NOT RESPONSIBLE FOR EXECUTION OF WORK BUT THEY ARE RESPONSIBLE FOR HOW THE WORK IS DONE. CO-OPERATION BETWEEN MANAGEMENT AND WORKERS CAN ENHANCE THE WORK AND ACHIEVE THE MAXIMUM OUTPUT.

TAYLOR CALLED IT AS “MENTAL REVOLUTION”, BECAUSE IT CREATES THE MUTUAL UNDERSTANDING, TRUST AND CONFIDENCE BETWEEN THE MANAGEMENT AND WORKERS FOR ACHIEVING GOAL (HIGHER PRODUCTION).

PRINCIPLES OF SCIENTIFIC MANAGEMENT

UNDER SCIENTIFIC MANAGEMENT, TAYLOR DEVELOPED THE FOLLOWING PARAMETERS FOR ORGANIZATION.Ø SCIENTIFIC WORK STUDY

Ø TASK PLANNING

Ø TOOLS AND MATERIALS

Ø SELECTION AND TRAINING

Ø STANDARDIZATION

Ø WORKER MANAGEMENT INTERRELATIONSHIPS

Ø DIFFERENTIAL PIECE WAGE SYSTEM

OBJECTIVE OF SCIENTIFIC MANAGEMENT

Ø SCIENTIFIC UTILIZATION OF VARIOUS RESOURCES LIKE HUMAN POWER, MATERIAL ETC.Ø TO PROVIDE TRAINED AND EFFICIENT WORK FORCE.Ø TO PROVIDE STANDARDIZE METHODS OF WORK.Ø TO PROVIDE A SCIENTIFIC BASE FOR SELECTING MATERIAL, AND EQUIPMENT.Ø TO PROVIDE EXTRA WAGES TO THE WORKER FOR HIGHER PRODUCTION.Ø REPLACE OLD RULE OF THUMBS TO NEW SCIENTIFIC METHODS.Ø TO DEVELOP A GOOD RAPPORT BETWEEN MANAGEMENT AND WORKERS.Ø TO ACHIEVE HIGHER PRODUCTION, WITH REDUCE COSTS AND MAXIMUM EFFICIENCY.Ø LESS WASTAGE.

MANAGEMENT THEORY OF PETER DRUCKER

MBO MBO STANDS FOR MANAGEMENT BY OBJECTIVES, A PHRASE COINED BY PETER DRUCKER IN HIS BOOK "THE PRACTICE OF MANAGEMENT," PUBLISHED IN 1954. MBO MEASURES THE PERFORMANCE OF EMPLOYEES AS COMPARED TO TYPICAL STANDARDS FOR THE JOB. THE BELIEF IS THAT, IF EMPLOYEES HELP DETERMINE THOSE STANDARDS, THEY WILL BE MORE LIKELY TO FULFILL THEM.

SMART METHOD DRUCKER'S SMART METHOD IS A MEANS OF CHECKING TO MAKE SURE AN OBJECTIVE IS VALID. MANAGERS CARRIED OUT THIS VERIFICATION BY USING THE SMART ACRONYM TO MAKE SURE THE OBJECTIVE IS SPECIFIC, MEASURABLE, ACHIEVABLE, REALISTIC AND TIME-RELATED.

KNOWLEDGE WORKER "KNOWLEDGE WORKER" IS ONE OF THE MANY TERMS COINED BY DRUCKER WITHIN HIS MANAGEMENT THEORIES. BY THE MEASURE OF TODAY'S SOCIETY, A KNOWLEDGE WORKER IS EQUIVALENT TO THE EXECUTIVE OF A COMPANY.

DECENTRALIZATION DRUCKER WAS A BELIEVER IN DECENTRALIZATION OF MANAGEMENT. HE SAW THAT MANY LEADERS TRY TO TAKE ON EVERYTHING IN A DEMONSTRATION OF POWER OR A MEANS OF MAINTAINING CONTROL, UNDER THE ASSUMPTION THAT ONLY THEY CAN ACCOMPLISH A TASK CORRECTLY. DRUCKER BELIEVED THAT MANAGERS SHOULD DELEGATE TASKS IN ORDER TO EMPOWER EMPLOYEES.

SOCIAL AND BUSINESS ETHICS

COMPLIANCE THE MANAGEMENT COMMITTEE/BOARD MUST ENSURE THAT THE ORGANISATION UNDERSTANDS AND COMPLIES WITH ITS OWN GOVERNING DOCUMENT, RELEVANT LAWS, CONTRACTUAL OBLIGATIONS AND THE REQUIREMENTS OF ANY REGULATORY BODIES.

INTERNAL CONTROLS THE MANAGEMENT COMMITTEE/BOARD SHOULD MAINTAIN AND REGULARLY REVIEW THE ORGANISATION’S SYSTEM OF INTERNAL CONTROLS, PERFORMANCE REPORTING, POLICIES AND PROCEDURES.

EQUALITY AND DIVERSITY THE MANAGEMENT COMMITTEE/BOARD MUST ENSURE THAT IT UPHOLDS AND APPLIES THE PRINCIPLES OF EQUALITY AND DIVERSITY AND THAT THE ORGANISATION IS FAIR AND OPEN TO ALL SECTIONS OF THE COMMUNITY IN ALL OF ITS ACTIVITIES.

PRUDENCE THE MANAGEMENT COMMITTEE/BOARD MUST ACT PRUDENTLY TO PROTECT THE ASSETS AND PROPERTY OF THE ORGANISATION AND ENSURE THAT THEY ARE USED TO DELIVER THE ORGANISATION’S OBJECTIVES.

MANAGING RISK

THE MANAGEMENT COMMITTEE/BOARD SHOULD UNDERSTAND AND REGULARLY REVIEW THE RISKS TO WHICH THE ORGANISATION IS SUBJECT AND TAKE ACTION TO MANAGE THE RISKS IDENTIFIED.

MANAGING STAFF AND VOLUNTEERS THE MANAGEMENT COMMITTEE/BOARD NEEDS TO UNDERSTAND THE DISTINCTION BETWEEN EMPLOYEES AND VOLUNTEERS AND ENSURE THAT GOOD PRACTICE IN THE RECRUITMENT AND MANAGEMENT OF BOTH STAFF AND VOLUNTEERS IS IN PLACE.

IN PARTICULAR THE RESPONSIBILITIES OF THE GOVERNMENT TOWARDS BUSINESS CAN BE DESCRIBED AS FOLLOWS: 

TO PASS AND EXECUTE PROPER LAWS THE BEHAVIOUR OF THE PEOPLE IN SOCIETY CAN BE EFFECTIVELY CONTROLLED WITH THE HELP OF LAWS. THE GOVERNMENT HAS TO PASS LAWS WHICH WOULD CREATE A FRIENDLY AND HELPFUL ATMOSPHERE FOR THE BUSINESS TO GROW..IN INDIA THE GOVERNMENT HAS PASSED SEVERAL LAWS SUCH AS COMPANIES REGULATION ACT, THE FACTORY ACT, THE LABOUR LAWS, THE SOCIAL SECURITY LAWS, THE FOREIGN EXCHANGE MANAGEMENT ACT ETC. THOUGH PASSING OF PROPER LAWS IS IMPORTANT, AN EFFICIENT IMPLEMENTATION OF THE LAW IS MORE IMPORTANT. IF A GOOD LAW IS IMPLEMENTED IN A BAD WAY IT PRODUCES HARMFUL EFFECTS. IT ENCOURAGES DISHONESTY ON THE PART OF THE PEOPLE.

MAINTENANCE OF LAW AND ORDER  IT IS THE RESPONSIBILITY OF THE GOVERNMENT TO MAINTAIN LAW AND ORDER AND PEACE IN THE COMMUNITY. ANY BUSINESS CAN EXIST AND PROSPER IF THERE IS LAW AND ORDER IN THE COUNTRY. PERIODS OF DISTURBANCE ARE HARMFUL TO THE EXISTENCE OF BUSINESS AND MUCH MORE TO THE PROGRESS OF THE BUSINESS. THE GOVERNMENT HAS TO MAINTAIN LAW AND ORDER FOR ATTRACTING FOREIGN INVESTMENT.

PROVIDING MONEY AND CREDIT  EVERY BUSINESS REQUIRES CREDIT. IT IS LIKE BLOOD CIRCULATION IN THE BODY OF THE ECONOMY. FINANCE IS PROVIDED TO BUSINESS BY THE MONEY MARKET AND THE CAPITAL MARKET. THE GOVERNMENT HAS TO REGULATE THEM IN SUCH A WAY THAT THEY ARE ABLE TO ATTRACT MORE CAPITAL AND DIRECT IT TO THE BUSINESS. IT IS THE RESPONSIBILITY OF THE GOVERNMENT TO MAINTAIN THE FINANCIAL INSTITUTIONS IN SOUND HEALTH SO THAT THEY CAN MOBILIZE MORE FINANCES.

 THE GOVERNMENT, THROUGH THE CENTRAL BANK OF THE COUNTRY HAS TO MAINTAIN A STABLE AND APPROPRIATE RATE OF EXCHANGE WHICH IS HELPFUL IN ATTRACTING MORE FOREIGN INVESTMENT

BUILDING INFRASTRUCTURE ALL PRODUCTIVE ACTIVITIES REQUIRE INFRASTRUCTURE BY WAY OF MEANS OF TRANSPORT AND COMMUNICATIONS, SUPPLY OF ENERGY AND CREDIT, PROVIDING APPROPRIATE INFORMATION ABOUT THE OPENINGS FOR DIFFERENT BUSINESSES ETC. IF THE GOVERNMENT IS SUCCESSFUL IN BUILDING EFFICIENT INFRASTRUCTURE, BUSINESS CAN EXPAND AT A FAST RATE.

 bms team

UNIT -3

FUNCTIONS OF MANAGEMENT

MANAGEMENT HAS BEEN DESCRIBED AS A SOCIAL PROCESS INVOLVING RESPONSIBILITY FOR ECONOMICAL AND EFFECTIVE PLANNING & REGULATION OF OPERATION OF AN ENTERPRISE IN THE FULFILLMENT OF GIVEN PURPOSES. IT IS A DYNAMIC PROCESS CONSISTING OF VARIOUS ELEMENTS AND ACTIVITIES. THESE ACTIVITIES ARE DIFFERENT FROM OPERATIVE FUNCTIONS LIKE MARKETING, FINANCE, PURCHASE ETC. RATHER THESE ACTIVITIES ARE COMMON TO EACH AND EVERY MANGER IRRESPECTIVE OF HIS LEVEL OR STATUS.

DIFFERENT EXPERTS HAVE CLASSIFIED FUNCTIONS OF MANAGEMENT. ACCORDING TO GEORGE & JERRY, “THERE ARE FOUR FUNDAMENTAL FUNCTIONS OF MANAGEMENT I.E. PLANNING, ORGANIZING, ACTUATING AND CONTROLLING”.

ACCORDING TO HENRY FAYOL, “TO MANAGE IS TO FORECAST AND PLAN, TO ORGANIZE, TO COMMAND, & TO CONTROL”. WHEREAS LUTHER GULLICK HAS GIVEN A KEYWORD ’POSDCORB’ WHERE P STANDS FOR PLANNING, O FOR ORGANIZING, S FOR STAFFING, D FOR DIRECTING, CO FOR CO-ORDINATION, R FOR REPORTING & B FOR BUDGETING. BUT THE MOST WIDELY ACCEPTED ARE FUNCTIONS OF MANAGEMENT GIVEN BY KOONTZ AND O’DONNEL I.E. PLANNING, ORGANIZING, STAFFING, DIRECTING AND CONTROLLING.

FUNCTIONS OF MANAGEMENT

PLANNING IT IS THE BASIC FUNCTION OF MANAGEMENT. IT DEALS WITH CHALKING OUT A FUTURE COURSE OF ACTION & DECIDING IN ADVANCE THE MOST APPROPRIATE COURSE OF ACTIONS FOR ACHIEVEMENT OF PRE-DETERMINED GOALS. ACCORDING TO KOONTZ, “PLANNING IS DECIDING IN ADVANCE - WHAT TO DO, WHEN TO DO & HOW TO DO. IT BRIDGES THE GAP FROM WHERE WE ARE & WHERE WE WANT TO BE”. A PLAN IS A FUTURE COURSE OF ACTIONS. IT IS AN EXERCISE IN PROBLEM SOLVING & DECISION MAKING. PLANNING IS DETERMINATION OF COURSES OF ACTION TO ACHIEVE DESIRED GOALS.

ORGANIZING IT IS THE PROCESS OF BRINGING TOGETHER PHYSICAL, FINANCIAL AND HUMAN RESOURCES AND DEVELOPING PRODUCTIVE RELATIONSHIP AMONGST THEM FOR ACHIEVEMENT OF ORGANIZATIONAL GOALS. ACCORDING TO HENRY FAYOL, “TO ORGANIZE A BUSINESS IS TO PROVIDE IT WITH EVERYTHING USEFUL OR ITS FUNCTIONING I.E. RAW MATERIAL, TOOLS, CAPITAL AND PERSONNEL’S”. ORGANIZING AS A PROCESS INVOLVES:

IDENTIFICATION OF ACTIVITIES. CLASSIFICATION OF GROUPING OF ACTIVITIES. ASSIGNMENT OF DUTIES. DELEGATION OF AUTHORITY AND CREATION OF RESPONSIBILITY. COORDINATING AUTHORITY AND RESPONSIBILITY RELATIONSHIPS.

STAFFING

IT IS THE FUNCTION OF MANNING THE ORGANIZATION STRUCTURE AND KEEPING IT MANNED. STAFFING HAS ASSUMED GREATER IMPORTANCE IN THE RECENT YEARS DUE TO ADVANCEMENT OF TECHNOLOGY, INCREASE IN SIZE OF BUSINESS, COMPLEXITY OF HUMAN BEHAVIOR ETC. THE MAIN PURPOSE O STAFFING IS TO PUT RIGHT MAN ON RIGHT JOB I.E. SQUARE PEGS IN SQUARE HOLES AND ROUND PEGS IN ROUND HOLES. ACCORDING TO KOOTZ & O’DONELL, “MANAGERIAL FUNCTION OF STAFFING INVOLVES MANNING THE ORGANIZATION STRUCTURE THROUGH PROPER AND EFFECTIVE SELECTION, APPRAISAL & DEVELOPMENT OF PERSONNEL TO FILL THE ROLES DESIGNED UN THE STRUCTURE”. STAFFING INVOLVES:

MANPOWER PLANNING (ESTIMATING MAN POWER IN TERMS OF SEARCHING, CHOOSE THE PERSON AND GIVING THE RIGHT PLACE). RECRUITMENT, SELECTION & PLACEMENT. TRAINING & DEVELOPMENT. REMUNERATION. PERFORMANCE APPRAISAL. PROMOTIONS & TRANSFER.

DIRECTING IT IS THAT PART OF MANAGERIAL FUNCTION WHICH ACTUATES THE ORGANIZATIONAL METHODS TO WORK EFFICIENTLY FOR ACHIEVEMENT OF ORGANIZATIONAL PURPOSES. IT IS CONSIDERED LIFE-SPARK OF THE ENTERPRISE WHICH SETS IT IN MOTION THE ACTION OF PEOPLE BECAUSE PLANNING, ORGANIZING AND STAFFING ARE THE MERE PREPARATIONS FOR DOING THE WORK. DIRECTION HAS FOLLOWING ELEMENTS:

SUPERVISION MOTIVATION LEADERSHIP COMMUNICATION

SUPERVISION- IMPLIES OVERSEEING THE WORK OF SUBORDINATES BY THEIR SUPERIORS. IT IS THE ACT OF WATCHING & DIRECTING WORK & WORKERS.

MOTIVATION- MEANS INSPIRING, STIMULATING OR ENCOURAGING THE SUB-ORDINATES WITH ZEAL TO WORK. POSITIVE, NEGATIVE, MONETARY, NON-MONETARY INCENTIVES MAY BE USED FOR THIS PURPOSE.

LEADERSHIP- MAY BE DEFINED AS A PROCESS BY WHICH MANAGER GUIDES AND INFLUENCES THE WORK OF SUBORDINATES IN DESIRED DIRECTION.

COMMUNICATIONS- IS THE PROCESS OF PASSING INFORMATION, EXPERIENCE, OPINION ETC FROM ONE PERSON TO ANOTHER. IT IS A BRIDGE OF UNDERSTANDING.

CONTROLLING

IT IMPLIES MEASUREMENT OF ACCOMPLISHMENT AGAINST THE STANDARDS AND CORRECTION OF DEVIATION IF ANY TO ENSURE ACHIEVEMENT OF ORGANIZATIONAL GOALS. THE PURPOSE OF CONTROLLING IS TO ENSURE THAT EVERYTHING OCCURS IN CONFORMITIES WITH THE STANDARDS. AN EFFICIENT SYSTEM OF CONTROL HELPS TO PREDICT DEVIATIONS BEFORE THEY ACTUALLY OCCUR. ACCORDING TO THEO HAIMANN, “CONTROLLING IS THE PROCESS OF CHECKING WHETHER OR NOT PROPER PROGRESS IS BEING MADE TOWARDS THE OBJECTIVES AND GOALS AND ACTING IF NECESSARY, TO CORRECT ANY DEVIATION”. ACCORDING TO KOONTZ & O’DONELL “CONTROLLING IS THE MEASUREMENT & CORRECTION OF PERFORMANCE ACTIVITIES OF SUBORDINATES IN ORDER TO MAKE SURE THAT THE ENTERPRISE OBJECTIVES AND PLANS DESIRED TO OBTAIN THEM AS BEING ACCOMPLISHED”. THEREFORE CONTROLLING HAS FOLLOWING STEPS:

ESTABLISHMENT OF STANDARD PERFORMANCE. MEASUREMENT OF ACTUAL PERFORMANCE. COMPARISON OF ACTUAL PERFORMANCE WITH THE STANDARDS AND FINDING OUT

DEVIATION IF ANY. CORRECTIVE ACTION.

TOOLS AND TECHNIQUE

SWOT ANALYSIS IS A USEFUL TECHNIQUE FOR UNDERSTANDING YOUR STRENGTHS AND WEAKNESSES, AND FOR IDENTIFYING BOTH THE OPPORTUNITIES OPEN TO YOU AND THE THREATS YOU FACE.USED IN A BUSINESS CONTEXT, IT HELPS YOU CARVE A SUSTAINABLE NICHE IN YOUR MARKET. USED IN A PERSONAL CONTEXT  , IT HELPS YOU DEVELOP YOUR CAREER IN A WAY THAT TAKES BEST ADVANTAGE OF YOUR TALENTS, ABILITIES AND OPPORTUNITIES.

BUSINESS SWOT ANALYSIS

STRENGTHS WHAT ADVANTAGES DOES YOUR ORGANIZATION HAVE?WHAT DO YOU DO BETTER THAN ANYONE ELSE?WHAT UNIQUE OR LOWEST-COST RESOURCES CAN YOU DRAW UPON THAT OTHERS CAN'T?WHAT DO PEOPLE IN YOUR MARKET SEE AS YOUR STRENGTHS?WHAT FACTORS MEAN THAT YOU "GET THE SALE"?WHAT IS YOUR ORGANIZATION'S UNIQUE SELLING PROPOSITION   (USP)?WEAKNESSES

WHAT COULD YOU IMPROVE?WHAT SHOULD YOU AVOID?WHAT ARE PEOPLE IN YOUR MARKET LIKELY TO SEE AS WEAKNESSES?WHAT FACTORS LOSE YOU SALES?

OPPORTUNITIES WHAT GOOD OPPORTUNITIES CAN YOU SPOT?WHAT INTERESTING TRENDS ARE YOU AWARE OF?USEFUL OPPORTUNITIES CAN COME FROM SUCH THINGS AS:CHANGES IN TECHNOLOGY AND MARKETS ON BOTH A BROAD AND NARROW SCALE.CHANGES IN GOVERNMENT POLICY RELATED TO YOUR FIELD.CHANGES IN SOCIAL PATTERNS, POPULATION PROFILES, LIFESTYLE CHANGES, AND SO ON.LOCAL EVENTS.

THREATS WHAT OBSTACLES DO YOU FACE?

WHAT ARE YOUR COMPETITORS DOING?ARE QUALITY STANDARDS OR SPECIFICATIONS FOR YOUR JOB, PRODUCTS OR SERVICES CHANGING?IS CHANGING TECHNOLOGY THREATENING YOUR POSITION?DO YOU HAVE BAD DEBT OR CASH-FLOW PROBLEMS?COULD ANY OF YOUR WEAKNESSES SERIOUSLY THREATEN YOUR BUSINESS?

STRENGTHS WE ARE ABLE TO RESPOND VERY QUICKLY AS WE HAVE NO RED TAPE, AND NO NEED FOR HIGHER MANAGEMENT APPROVAL.WE ARE ABLE TO GIVE REALLY GOOD CUSTOMER CARE, AS THE CURRENT SMALL AMOUNT OF WORK MEANS WE HAVE PLENTY OF TIME TO DEVOTE TO CUSTOMERS.OUR LEAD CONSULTANT HAS STRONG REPUTATION IN THE MARKET.WE CAN CHANGE DIRECTION QUICKLY IF WE FIND THAT OUR MARKETING IS NOT WORKING.WE HAVE LOW OVERHEADS, SO WE CAN OFFER GOOD VALUE TO CUSTOMERS.

WEAKNESSES OUR COMPANY HAS LITTLE MARKET PRESENCE OR REPUTATION.WE HAVE A SMALL STAFF, WITH A SHALLOW SKILLS BASE IN MANY AREAS.WE ARE VULNERABLE TO VITAL STAFF BEING SICK, AND LEAVING.OUR CASH FLOW WILL BE UNRELIABLE IN THE EARLY STAGES.

OPPORTUNITIES OUR BUSINESS SECTOR IS EXPANDING, WITH MANY FUTURE OPPORTUNITIES FOR SUCCESS.LOCAL GOVERNMENT WANTS TO ENCOURAGE LOCAL BUSINESSES.OUR COMPETITORS MAY BE SLOW TO ADOPT NEW TECHNOLOGIES.

THREATS DEVELOPMENTS IN TECHNOLOGY MAY CHANGE THIS MARKET BEYOND OUR ABILITY TO ADAPT.A SMALL CHANGE IN THE FOCUS OF A LARGE COMPETITOR MIGHT WIPE OUT ANY MARKET POSITION WE ACHIEVE.

DELEGATION OF AUTHORITY

. AUTHORITY SHOULD BE PROVIDED TO THE SUBORDINATES TOO. PROCESS OF TRANSFERRING AUTHORITY AND CREATION OF RESPONSIBILITY BETWEEN SUPERIOR AND SUBORDINATES TO ACCOMPLISH A CERTAIN TASK IS CALLED DELEGATION OF AUTHORITY. IT CAN TAKE PLACE WITHOUT DECENTRALIZATION. IT CAN BE WITHDRAWN BY DELEGATOR AT ANY TIME. IT MINIMIZES THE BURDEN OF MANAGERS OF UNIT, DEPARTMENTS OR PLANT. RELATIONSHIP IS BETWEEN SUPERIOR AND IMMEDIATE SUBORDINATES ARE INDICATED. IT IS TECHNIQUE OF MANAGEMENT USED TO GET THE THINGS DONE THROUGH OTHERS. IT IS CONFINED TO MANAGER AND SUBORDINATES. AUTHORITY IS ONLY DELEGATED, NOT RESPONSIBILITIES. VERY IMPORTANT TO MANAGEMENT PROCESS CONTROL REMAINS IN HAND OF SUPERIOR WHO SUPERVISE THE ACTIVITIES OF SUBORDINATES. IT IS AN ART OF MANAGEMENT SCIENCE. WHEN AUTHORITY IS NOT GIVEN TO SUBORDINATES THERE IS NO PERFORMANCE. DELEGATION IS THE PROCESS OF SHARING POWER AND WORK (DELIVER THE POWER FROM ONE TO ANOTHER).

PRINCIPLES OF DELEGATION OF AUTHORITY

1. PRINCIPLE OF PARITY OF AUTHORITY AND RESPONSIBILITY– PARITY OF AUTHORITY AND RESPONSIBILITY IS ONE OF THE IMPORTANT PRINCIPLES OF DELEGATION OF AUTHORITY. THERE IS EQUALITY IN ASSIGNED TASK AND POWER TO DO THE WORK. AUTHORITY TO THE SUBORDINATES IS GIVEN BY THE SUPERIOR ON THE BASIS OF ASSIGNED TASK. SO AUTHORITY TO THE SUBORDINATES IS GIVEN NETHER MORE OR LESS THAN THE TASK OTHERWISE THEIR CAN BE IMPROPER UTILIZATION OF AUTHORITY AND MISMANAGEMENT OF TASK.

2. PRINCIPLE OF ABSOLUTENESS OF RESPONSIBILITY– ACCORDING TO IT, RESPONSIBILITY CAN’T BE DELEGATED. ONLY AUTHORITY CAN BE DELEGATED. THE PERSON WHO DELEGATES AUTHORITY IS HIMSELF RESPONSIBLE FOR HIS SENIORS.

3 . PRINCIPLE OF UNITY OF COMMAND– ACCORDING TO IT, SUBORDINATES MUST BE COMMANDED BY ONE SUPERIOR, THEY SHOULD TAKE THEIR TASK FROM ONE SUPERIOR AND SHOULD BE ACCOUNTABLE FRO THEIR RESPONSIBILITY TOWARD THE SUPERIOR LEVEL OF OPERATION

4 . PRINCIPLE OF FUNCTIONAL DEFINITION OF AUTHORITY AND RESPONSIBILITY – AS PER THIS PRINCIPLE. DUTIES AND TASK ASSIGNED BY THE SUPERIOR AND THE AUTHORITY GIVEN TO FULFILL THE TASK SHOULD BE CLEARLY EXPLAINED AND DECIDED. BT THIS SUBORDINATES CAN KNOW ABOUT THE LIMIT OF ONE’S RIGHT, DUTIES AND RESPONSIBILITY.

5. THE SCALAR CHAIN – ACCORDING TO IT, AUTHORITY FLOWS FROM TOP TO BOTTOM. SO THAT SCALAR CHAIN IS THE BASIS OF RELATIONSHIP BETWEEN THE

SUPERIOR AND SUBORDINATES. IT EMPHASIZES THE RELATION BETWEEN SUPERIOR AND SUBORDINATES BY WHICH DELEGATION WILL BE EASIER.

CENTRALIZATION AND DECENTRALIZATION

CENTRALIZATION: THE EXTENT TO WHICH AUTHORITY IS CONCENTRATED AT THE TOP MANAGEMENT LEVELS.THE ACT OR PROCESS OF CENTRALIZING, OR THE STATE OF BEING CENTRALIZED; THE ACT OR PROCESS OF COMBINING OR REDUCING SEVERAL PARTS INTO A WHOLE; AS, THE CENTRALIZATION OF POWER IN THE GENERAL GOVERNMENT; THE CENTRALIZATION OF COMMERCE IN A CITY.CENTRALISATION, OR CENTRALIZATION, IS THE PROCESS BY WHICH THE ACTIVITIES OF AN ORGANISATION, PARTICULARLY THOSE REGARDING PLANING DECISION-MAKING, BECOME CONCENTRATED WITHIN A PARTICULAR LOCATION AND/OR GROUP.

DECENTRALIZATION: THE EXTENT TO WHICH AUTHORITY IS DELEGATED TO LOWER MANAGEMENT LEVELS. DELEGATION OF DECISION-MAKING TO THE SUBUNITS OF AN ORGANIZATION. IT IS A MATTER OF DEGREE. THE LOWER THE LEVEL WHERE DECISIONS ARE MADE, THE GREATER IS THE DECENTRALIZATION. DECENTRALIZATION IS MOST EFFECTIVE IN ORGANIZATIONS WHERE SUBUNITS ARE AUTONOMOUS AND COSTS AND PROFITS CAN BE INDEPENDENTLY MEASURED. THE BENEFITS OF DECENTRALIZATION INCLUDE: (1) DECISIONS ARE MADE BY THOSE WHO HAVE THE MOST KNOWLEDGE ABOUT LOCAL CONDITIONS; (2) GREATER MANAGERIAL INPUT IN DECISION-MAKING HAS A DESIRABLE

MOTIVATIONAL EFFECT; AND (3) MANAGERS HAVE MORE CONTROL OVER RESULTS. THE COSTS OF DECENTRALIZATION INCLUDE: (1) MANAGERS HAVE A TENDENCY TO LOOK AT THEIR DIVISION AND LOSE SIGHT OF OVERALL COMPANY GOALS; (2) THERE CAN BE COSTLY DUPLICATION OF SERVICES; AND (3) COSTS OF OBTAINING SUFFICIENT INFORMATION INCREASE.

COMMUNICATION TWO-WAY PROCESS OF REACHING MUTUAL UNDERSTANDING, IN WHICH PARTICIPANTS NOT ONLY EXCHANGE (ENCODE-DECODE) INFORMATION, NEWS, IDEAS AND FEELINGS

BUT ALSO CREATE AND SHARE MEANING. IN GENERAL, COMMUNICATION IS A MEANS OF CONNECTING PEOPLE OR PLACES. IN BUSINESS, IT IS A KEY FUNCTION OF MANAGEMENT--

AN ORGANIZATION CANNOT OPERATE WITHOUT COMMUNICATION BETWEEN LEVELS, DEPARTMENTS AND EMPLOYEES. SEE ALSO COMMUNICATIONS

PROCESS OF COMMUNICATION

7 MAJOR ELEMENTS OF COMMUNICATION PROCESS

SEVEN MAJOR ELEMENTS OF COMMUNICATION PROCESS ARE: (1) SENDER (2) IDEAS (3) ENCODING (4) COMMUNICATION CHANNEL (5) RECEIVER (6) DECODING AND (7) FEEDBACK.COMMUNICATION PROCESS AS SUCH MUST BE CONSIDERED A CONTINUOUS AND DYNAMIC INTER-ACTION, BOTH AFFECTING AND BEING AFFECTED BY MANY VARIABLES

(1) SENDER: THE PERSON WHO INTENDS TO CONVEY THE MESSAGE WITH THE INTENTION OF PASSING INFORMATION AND IDEAS TO OTHERS IS KNOWN AS SENDER OR COMMUNICATOR.

(2) IDEAS: THIS IS THE SUBJECT MATTER OF THE COMMUNICATION. THIS MAY BE AN OPINION, ATTITUDE, FEELINGS, VIEWS, ORDERS, OR SUGGESTIONS.

(3) ENCODING: SINCE THE SUBJECT MATTER OF COMMUNICATION IS THEORETICAL AND INTANGIBLE, ITS FURTHER PASSING REQUIRES USE OF CERTAIN SYMBOLS SUCH AS WORDS, ACTIONS OR PICTURES ETC. CONVERSION OF SUBJECT MATTER INTO THESE SYMBOLS IS THE PROCESS OF ENCODING.

(4) COMMUNICATION CHANNEL: THE PERSON WHO IS INTERESTED IN COMMUNICATING HAS TO CHOOSE THE CHANNEL FOR SENDING THE REQUIRED INFORMATION, IDEAS ETC. THIS INFORMATION IS TRANSMITTED TO THE RECEIVER THROUGH CERTAIN CHANNELS WHICH MAY BE EITHER FORMAL OR INFORMAL.

( 5) RECEIVER: RECEIVER IS THE PERSON WHO RECEIVES THE MESSAGE OR FOR WHOM THE MESSAGE IS MEANT FOR. IT IS THE RECEIVER WHO TRIES TO UNDERSTAND THE MESSAGE IN THE BEST POSSIBLE MANNER IN ACHIEVING THE DESIRED OBJECTIVES.

( 6) DECODING: THE PERSON WHO RECEIVES THE MESSAGE OR SYMBOL FROM THE COMMUNICATOR TRIES TO CONVERT THE SAME IN SUCH A WAY SO THAT HE MAY EXTRACT ITS MEANING TO HIS COMPLETE UNDERSTANDING.

( 7) FEEDBACK: FEEDBACK IS THE PROCESS OF ENSURING THAT THE RECEIVER HAS RECEIVED THE MESSAGE AND UNDERSTOOD IN THE SAME SENSE AS SENDER MEANT IT.

HOW TO MAKE AN EFFECTIVE COMMUNICATION A TWO WAY INFORMATION SHARING PROCESS WHICH INVOLVES ONE PARTY SENDING A MESSAGE THAT IS EASILY UNDERSTOOD BY THE RECEIVING PARTY. EFFECTIVE COMMUNICATION BY BUSINESS MANAGERS FACILITATES INFORMATION SHARING BETWEEN COMPANY EMPLOYEES AND CAN SUBSTANTIALLY CONTRIBUTE TO ITS COMMERCIAL SUCCESS.

BARRIER OF COMMUNICATION

4 DIFFERENT TYPES OF BARRIERS TO EFFECTIVE COMMUNICATION

FOR THE CONVENIENCE OF STUDY THE DIFFERENT BARRIERS CAN BE DIVIDED INTO FOUR PARTS:

(1) SEMANTIC BARRIERS

THERE IS ALWAYS A POSSIBILITY OF MISUNDERSTANDING THE FEELINGS OF THE SENDER OF THE MESSAGE OR GETTING A WRONG MEANING OF IT. THE WORDS, SIGNS, AND FIGURES USED IN THE COMMUNICATION ARE EXPLAINED BY THE RECEIVER IN THE LIGHT OF HIS EXPERIENCE WHICH CREATES DOUBTFUL SITUATIONS. THIS HAPPENS BECAUSE THE INFORMATION IS NOT SENT IN SIMPLE LANGUAGE.

THE CHIEF LANGUAGE-RELATED BARRIERS ARE AS UNDER:

(I) BADLY EXPRESSED MESSAGE:

BECAUSE OF THE OBSCURITY OF LANGUAGE THERE IS ALWAYS A POSSIBILITY OF WRONG INTERPRETATION OF THE MESSAGES. THIS BARRIER IS CREATED BECAUSE OF THE WRONG CHOICE OF WORDS, IN CIVIL WORDS, THE WRONG SEQUENCE OF SENTENCES AND FREQUENT REPETITIONS. THIS MAY BE CALLED LINGUISTIC CHAOS.EFFECTIVE COMMUNICATION

(II) SYMBOLS OR WORDS WITH DIFFERENT MEANINGS: A SYMBOL OR A WORD CAN HAVE DIFFERENT MEANINGS. IF THE RECEIVER MISUNDERSTANDS THE COMMUNICATION, IT BECOMES MEANINGLESS. FOR EXAMPLE, THE WORD ‘VALUE’ CAN HAVE DIFFERENT MEANINGS IN THE FOLLOWING SENTENCES:(A) WHAT IS THE VALUE OF COMPUTER EDUCATION THESE DAYS

(B) WHAT IS THE VALUE OF THIS MOBILE SET?(C) VALUE OUR FRIENDSHIP.

(III) FAULTY TRANSLATION :A MANAGER RECEIVES MUCH INFORMATION FROM HIS SUPERIORS AND SUBORDINATES AND HE TRANSLATES IT FOR ALL THE EMPLOYEES ACCORDING TO THEIR LEVEL OF UNDERSTANDING. HENCE, THE INFORMATION HAS TO BE MOULDED ACCORDING TO THE UNDERSTANDING OR ENVIRONMENT OF THE RECEIVER. IF THERE IS A LITTLE CARELESSNESS IN THIS PROCESS, THE FAULTY TRANSLATION CAN BE A BARRIER IN THE COMMUNICATION.

(IV) UNCLARIFIED ASSUMPTIONS: IT HAS BEEN OBSERVED THAT SOMETIMES A SENDER TAKES IT FOR GRANTED THAT THE RECEIVER KNOWS SOME BASIC THINGS AND, THEREFORE, IT IS ENOUGH TO TELL HIM ABOUT THE MAJOR SUBJECT MATTER. THIS POINT OF VIEW OF THE SENDER IS CORRECT TO SOME EXTENT WITH REFERENCE TO THE DAILY COMMUNICATION, BUT IT IS ABSOLUTELY WRONG IN CASE OF SOME SPECIAL MESSAGE,

(V) TECHNICAL JARGON: GENERALLY, IT HAS BEEN SEEN THAT THE PEOPLE WORKING IN AN ENTERPRISE ARE CONNECTED WITH SOME SPECIAL TECHNICAL GROUP WHO HAVE THEIR SEPARATE TECHNICAL LANGUAGE.THEIR COMMUNICATION IS NOT SO SIMPLE AS TO BE UNDERSTOOD BY EVERYBODY. HENCE, TECHNICAL LANGUAGE CAN BE A BARRIER IN COMMUNICATION. THIS TECHNICAL GROUP INCLUDES INDUSTRIAL ENGINEERS, PRODUCTION DEVELOPMENT MANAGER, QUALITY CONTROLLER, ETC.

(VI) BODY LANGUAGE AND GESTURE DECODING:

WHEN THE COMMUNICATION IS PASSED ON WITH THE HELP OF BODY LANGUAGE AND GESTURES, ITS MISUNDERSTANDING HINDERS THE PROPER UNDERSTANDING OF THE MESSAGE. FOR EXAMPLE, MOVING ONE’S NECK TO REPLY TO A QUESTION DOES NOT INDICATE PROPERLY WHETHER THE MEANING IS ‘YES’ OR ‘NO’.

(2) PSYCHOLOGICAL OR EMOTIONAL BARRIERS THE IMPORTANCE OF COMMUNICATION DEPENDS ON THE MENTAL CONDITION OF BOTH THE PARTIES. A MENTALLY DISTURBED PARTY CAN BE A HINDRANCE IN COMMUNICATION. FOLLOWING ARE THE EMOTIONAL BARRIERS IN THE WAY OF COMMUNICATION:

(I) PREMATURE EVALUATION: SOMETIMES THE RECEIVER OF INFORMATION TRIES TO DIG OUT MEANING WITHOUT MUCH THINKING AT THE TIME OF RECEIVING OR EVEN BEFORE RECEIVING INFORMATION, WHICH CAN BE WRONG. THIS TYPE OF EVALUATION IS A HINDRANCE IN THE EXCHANGE OF INFORMATION AND THE ENTHUSIASM OF THE SENDER GETS DAMPENED.

(II) LACK OF ATTENTION: WHEN THE RECEIVER IS PREOCCUPIED WITH SOME IMPORTANT WORK HE/SHE DOES NOT LISTEN TO THE MESSAGE ATTENTIVELY. FOR EXAMPLE, AN EMPLOYEE IS TALKING TO HIS BOSS WHEN THE LATTER IS BUSY IN SOME IMPORTANT CONVERSATION. IN SUCH A SITUATION THE BOSS MAY NOT PAY ANY ATTENTION TO WHAT SUBORDINATE IS SAYING. THUS, THERE ARISES PSYCHOLOGICAL HURDLE IN THE COMMUNICATION.

(III) LOSS BY TRANSMISSION AND POOR RETENTION :WHEN A MESSAGE IS RECEIVED BY A PERSON AFTER IT HAS PASSED THROUGH MANY PEOPLE, GENERALLY IT LOSES SOME OF ITS TRUTH. THIS IS CALLED LOSS BY TRANSMISSION. THIS HAPPENS NORMALLY IN CASE OF ORAL COMMUNICATION. POOR RETENTION OF INFORMATION MEANS THAT WITH EVERY NEXT TRANSFER OF INFORMATION THE ACTUAL FORM OR TRUTH OF THE INFORMATION CHANGES.ACCORDING TO ONE ESTIMATE, WITH EACH TRANSFER OF ORAL COMMUNICATION THE LOSS OF THE INFORMATION AMOUNTS TO NEARLY 30%. THIS HAPPENS BECAUSE OF THE CARELESSNESS OF PEOPLE. THEREFORE, LACK OF TRANSMISSION OF INFORMATION IN ITS TRUE OR EXACT FORM BECOMES A HINDRANCE IN COMMUNICATION.

(IV) DISTRUST: FOR SUCCESSFUL COMMUNICATION THE TRANSMITTER AND THE RECEIVER MUST TRUST EACH OTHER. IF THERE IS A LACK OF TRUST BETWEEN THEM, THE RECEIVER WILL ALWAYS DERIVE AN OPPOSITE MEANING FROM THE MESSAGE. BECAUSE OF THIS, COMMUNICATION WILL BECOME MEANINGLESS.

(3) ORGANISATIONAL BARRIERS ORGANISATIONAL STRUCTURE GREATLY AFFECTS THE CAPABILITY OF THE EMPLOYEES AS FAR AS THE COMMUNICATION IS CONCERNED. SOME MAJOR ORGANISATIONAL HINDRANCES IN THE WAY OF COMMUNICATION ARE THE FOLLOWING:

(I) ORGANISATIONAL POLICIES: ORGANISATIONAL POLICIES DETERMINE THE RELATIONSHIP AMONG ALL THE PERSONS WORKING IN THE ENTERPRISE. FOR EXAMPLE, IT CAN BE THE POLICY OF THE ORGANISATION THAT COMMUNICATION WILL BE IN THE WRITTEN FORM. IN SUCH A SITUATION ANYTHING THAT COULD BE CONVEYED IN A FEW WORDS SHALL HAVE TO BE COMMUNICATED IN THE WRITTEN FORM. CONSEQUENTLY, WORK GETS DELAYED.

(II) RULES AND REGULATIONS: ORGANISATIONAL RULES BECOME BARRIERS IN COMMUNICATION BY DETERMINING THE SUBJECT-MATTER, MEDIUM, ETC. OF COMMUNICATION. TROUBLED BY THE DEFINITE RULES, THE SENDERS DO NOT SEND SOME OF THE MESSAGES.

(III) STATUS: UNDER ORGANISING ALL THE EMPLOYEES ARE DIVIDED INTO MANY CATEGORIES ON THE BASIS OF THEIR LEVEL. THIS FORMAL DIVISION ACTS AS A BARRIER IN COMMUNICATION ESPECIALLY WHEN THE COMMUNICATION MOVES FROM THE BOTTOM TO THE TOP.

FOR EXAMPLE, WHEN A LOWER-LEVEL EMPLOYEE HAS TO SEND HIS MESSAGE TO A SUPERIOR AT THE TOP LEVEL THERE IS A LURKING FEAR IN HIS MIND THAT THE COMMUNICATION MAY BE FAULTY, AND BECAUSE OF THIS FEAR, HE CANNOT CONVEY HIMSELF CLEARLY AND IN TIME. IT DELAYS THE DECISION MAKING.

(IV) COMPLEXITY IN ORGANISATIONAL STRUCTURE:

THE GREATER NUMBER OF MANAGERIAL LEVELS IN AN ORGANISATION MAKES IT MORE COMPLEX. IT RESULTS IN DELAY IN COMMUNICATION AND INFORMATION GETS CHANGED BEFORE IT REACHES THE RECEIVER. IN OTHER WORDS, NEGATIVE THINGS OR CRITICISM ARE CONCEALED. THUS, THE MORE THE NUMBER OF MANAGERIAL LEVELS IN THE ORGANISATION, THE MORE INEFFECTIVE THE COMMUNICATION BECOMES.

(V) ORGANISATIONAL FACILITIES:

ORGANISATIONAL FACILITIES MEAN MAKING AVAILABLE SUFFICIENT STATIONERY, TELEPHONE, TRANSLATOR, ETC. WHEN THESE FACILITIES ARE SUFFICIENT IN AN ORGANISATION, THE COMMUNICATION WILL BE TIMELY, CLEAR AND IN ACCORDANCE WITH NECESSITY. IN THE ABSENCE OF THESE FACILITIES COMMUNICATION BECOMES MEANINGLESS.

(4) PERSONAL BARRIERS

THE ABOVE-MENTIONED ORGANISATIONAL BARRIERS ARE IMPORTANT IN THEMSELVES BUT THERE ARE SOME BARRIERS WHICH ARE DIRECTLY CONNECTED WITH THE SENDER AND THE RECEIVER. THEY ARE CALLED PERSONAL BARRIERS. FROM THE POINT OF VIEW OF CONVENIENCE, THEY HAVE BEEN DIVIDED INTO TWO PARTS:

(A) BARRIERS RELATED TO SUPERIORS: THESE BARRIERS ARE AS FOLLOWS: (I) FEAR OF CHALLENGE OF AUTHORITY: EVERYBODY DESIRES TO OCCUPY A HIGH OFFICE IN THE ORGANISATION. IN THIS HOPE THE OFFICERS TRY TO CONCEAL THEIR WEAKNESSES BY NOT COMMUNICATING THEIR IDEAS. THERE IS A FEAR IN THEIR MIND THAT IN CASE THE REALITY COMES TO LIGHT THEY MAY HAVE TO MOVE TO THE LOWER LEVEL,

(II) LACK OF CONFIDENCE IN SUBORDINATES: TOP-LEVEL SUPERIORS THINK THAT THE LOWER- LEVEL EMPLOYEES ARE LESS CAPABLE AND, THEREFORE, THEY IGNORE THE INFORMATION OR SUGGESTIONS SENT BY THEM. THEY DELIBERATELY IGNORE THE COMMUNICATION FROM THEIR SUBORDINATES IN ORDER TO INCREASE THEIR OWN IMPORTANCE. CONSEQUENTLY, THE SELF-CONFIDENCE OF THE EMPLOYEES IS LOWERED.(B) BARRIERS RELATED TO SUBORDINATES: SUBORDINATES-RELATED BARRIERS ARE THE FOLLOWING:

(I) UNWILLINGNESS TO COMMUNICATE: SOMETIMES THE SUBORDINATES DO NOT WANT TO SEND ANY INFORMATION TO THEIR SUPERIORS. WHEN THE SUBORDINATES FEEL THAT THE INFORMATION IS OF NEGATIVE NATURE AND WILL ADVERSELY AFFECT THEM, AN EFFORT IS MADE TO CONCEAL THAT INFORMATION.

IF IT BECOMES IMPERATIVE TO SEND THIS INFORMATION, IT IS SENT IN A MODIFIED OR AMENDED FORM. THUS, THE SUBORDINATES, BY NOT CLARIFYING THE FACTS, BECOME A HINDRANCE IN COMMUNICATION,

(II) LACK OF PROPER INCENTIVE: LACK OF INCENTIVE TO THE SUBORDINATES CREATES A HINDRANCE IN COMMUNICATION. THE LACK OF INCENTIVE TO THE SUBORDINATES IS BECAUSE OF THE FACT THAT THEIR SUGGESTIONS OR IDEAS ARE NOT GIVEN ANY IMPORTANCE. IF THE SUPERIORS IGNORE THE SUBORDINATES, THEY BECOME INDIFFERENT TOWARDS ANY EXCHANGE OF IDEAS IN FUTURE.

UNIT-4 MOTIVATIONAL THEORIES:

MOTIVATION IS THE PROCESS OF AROUSING AND SUSTAINING GOAL-DIRECTED BEHAVIOR. MOTIVATION THEORIES ATTEMPT TO EXPLAIN AND PREDICT OBSERVABLE BEHAVIOR. MOTIVATION THEORIES MAY BE CLASSIFIED AS INTERNAL, PROCESS, OR EXTERNAL THEORIES. THIS IS ONE OF THE MOST COMPLEX TOPICS IN ORGANIZATIONAL BEHAVIOR BECAUSE OF THE LARGE NUMBER OF VARIABLES THAT AFFECT MOTIVATION.

A. INTERNAL NEEDS

B. EXTERNAL INCENTIVES

.

MASLOW’S NEED HIERARCHY

A. THE HIERARCHY OF NEEDS MASLOW’S-HIERARCHY OF NEEDS THEORY: THIS THEORY WAS PROPOSED BY ABRAHAM MASLOW

AND IS BASED ON THE ASSUMPTION THAT PEOPLE ARE MOTIVATED BY A SERIES OF FIVE UNIVERSAL

NEEDS. THESE NEEDS ARE RANKED, ACCORDING TO THE ORDER IN WHICH THEY INFLUENCE HUMAN

BEHAVIOR, IN HIERARCHICAL FASHION

• PHYSIOLOGICAL NEEDS ARE DEEMED TO BE THE LOWEST- LEVEL NEEDS. THESE NEEDS

INCLUDE THE NEEDS SUCH AS FOOD & WATER .O SO LONG AS PHYSIOLOGICAL NEEDS ARE UNSATISFIED, THEY EXIST AS A DRIVING OR

MOTIVATING FORCE IN A PERSON'S LIFE. A HUNGRY PERSON HAS A FELT NEED. THIS

FELT NEED SETS UP BOTH PSYCHOLOGICAL AND PHYSICAL TENSIONS THAT MANIFEST

THEMSELVES IN OVERT BEHAVIORS DIRECTED AT REDUCING THOSE TENSIONS (GETTING

SOMETHING TO EAT). ONCE THE HUNGER IS SATED, THE TENSION IS REDUCED, AND

THE NEED FOR FOOD CEASES TO MOTIVATE. AT THIS POINT (ASSUMING THAT OTHER

PHYSIOLOGICAL REQUIREMENTS ARE ALSO SATISFIED) THE NEXT HIGHER ORDER NEED

BECOMES THE MOTIVATING NEED.

• THUS, SAFETY NEEDS -- THE NEEDS FOR SHELTER AND SECURITY -- BECOME THE MOTIVATORS

OF HUMAN BEHAVIOR.O SAFETY NEEDS INCLUDE A DESIRE FOR SECURITY, STABILITY, DEPENDENCY,PROTECTION, FREEDOM FROM FEAR AND ANXIETY, AND A NEED FOR STRUCTURE, ORDER,AND LAW.. IN THE WORKPLACE THIS NEEDS TRANSLATES INTO A NEED FOR AT LEAST AMINIMAL DEGREE OF EMPLOYMENT SECURITY; THE KNOWLEDGE THAT WE CANNOT BE

FIRED ON A WHIM AND THAT APPROPRIATE LEVELS OF EFFORT AND PRODUCTIVITY WILL

ENSURE CONTINUED EMPLOYMENT.

• SOCIAL NEEDS INCLUDE THE NEED FOR BELONGINGNESS AND LOVE.O GENERALLY, AS GREGARIOUS CREATURES, HUMAN HAVE A NEED TO BELONG. IN THE

WORKPLACE, THIS NEED MAY BE SATISFIED BY AN ABILITY TO INTERACT WITH ONE'SCOWORKERS AND PERHAPS TO BE ABLE TO WORK COLLABORATIVELY WITH THESE

COLLEAGUES.• AFTER SOCIAL NEEDS HAVE BEEN SATISFIED, EGO AND ESTEEM NEEDS BECOME THE

MOTIVATING NEEDS.

ESTEEM NEEDS INCLUDE THE DESIRE FOR SELF-RESPECT, SELF-ESTEEM, AND THE

ESTEEM OF OTHERS. WHEN FOCUSED EXTERNALLY, THESE NEEDS ALSO INCLUDE THE

DESIRE FOR REPUTATION, PRESTIGE, STATUS, FAME, GLORY, DOMINANCE,RECOGNITION, ATTENTION, IMPORTANCE, AND APPRECIATION.

• THE HIGHEST NEED IN MASLOW'S HIERARCHY IS THAT OF SELF-ACTUALIZATION; THE NEED FOR

SELF-REALIZATION, CONTINUOUS SELF-DEVELOPMENT, AND THE PROCESS OF BECOMING ALL

.

THEORY X AND THEORY Y

THEORY X

THIS ASSUMES THAT EMPLOYEES ARE NATURALLY UNMOTIVATED AND DISLIKE WORKING, AND THIS ENCOURAGES AN AUTHORITARIAN STYLE OF MANAGEMENT. ACCORDING TO THIS VIEW, MANAGEMENT MUST ACTIVELY INTERVENE TO GET THINGS DONE. THIS STYLE OF MANAGEMENT ASSUMES THAT WORKERS:

DISLIKE WORKING. AVOID RESPONSIBILITY AND NEED TO BE DIRECTED. HAVE TO BE CONTROLLED, FORCED, AND THREATENED TO DELIVER WHAT'S

NEEDED. NEED TO BE SUPERVISED AT EVERY STEP, WITH CONTROLS PUT IN PLACE. NEED TO BE ENTICED TO PRODUCE RESULTS; OTHERWISE THEY HAVE NO

AMBITION OR INCENTIVE TO WORK.X-TYPE ORGANIZATIONS TEND TO BE TOP HEAVY, WITH MANAGERS AND SUPERVISORS REQUIRED AT EVERY STEP TO CONTROL WORKERS. THERE IS LITTLE DELEGATION OF AUTHORITY AND CONTROL REMAINS FIRMLY CENTRALIZED.

MCGREGOR RECOGNIZED THAT X-TYPE WORKERS ARE IN FACT USUALLY THE MINORITY, AND YET IN MASS ORGANIZATIONS, SUCH AS LARGE SCALE PRODUCTION ENVIRONMENT, X THEORY MANAGEMENT MAY BE REQUIRED AND CAN BE UNAVOIDABLE.

THEORY Y THIS EXPOUNDS A PARTICIPATIVE STYLE OF MANAGEMENT THAT IS DE-CENTRALIZED. IT ASSUMES THAT EMPLOYEES ARE HAPPY TO WORK, ARE SELF-MOTIVATED AND CREATIVE, AND ENJOY WORKING WITH GREATER RESPONSIBILITY. IT ASSUMES THAT WORKERS:

TAKE RESPONSIBILITY AND ARE MOTIVATED TO FULFILL THE GOALS THEY ARE GIVEN.

SEEK AND ACCEPT RESPONSIBILITY AND DO NOT NEED MUCH DIRECTION. CONSIDER WORK AS A NATURAL PART OF LIFE AND SOLVE WORK PROBLEMS

IMAGINATIVELY.

COMPARING THEORY X AND THEORY Y

MOTIVATION

THEORY X ASSUMES THAT PEOPLE DISLIKE WORK; THEY WANT TO AVOID IT AND DO NOT WANT TO TAKE RESPONSIBILITY. THEORY Y ASSUMES THAT PEOPLE ARE SELF-MOTIVATED, AND THRIVE ON RESPONSIBILITY.

MANAGEMENT STYLE AND CONTROL IN A THEORY X ORGANIZATION, MANAGEMENT IS AUTHORITARIAN, AND CENTRALIZED CONTROL IS RETAINED, WHILST IN THEORY Y, THE MANAGEMENT STYLE IS PARTICIPATIVE: MANAGEMENT INVOLVES EMPLOYEES IN DECISION MAKING, BUT RETAINS POWER TO IMPLEMENT DECISIONS.

WORK ORGANIZATION THEORY X EMPLOYEES TEND TO HAVE SPECIALIZED AND OFTEN REPETITIVE WORK. IN THEORY Y, THE WORK TENDS TO BE ORGANIZED AROUND WIDER AREAS OF SKILL OR KNOWLEDGE; EMPLOYEES ARE ALSO ENCOURAGED TO DEVELOP EXPERTISE AND MAKE SUGGESTIONS AND IMPROVEMENTS.

REWARDS AND APPRAISALS THEORY X ORGANIZATIONS WORK ON A ‘CARROT AND STICK’ BASIS, AND PERFORMANCE APPRAISAL IS PART OF THE OVERALL MECHANISMS OF CONTROL AND REMUNERATION. IN THEORY Y ORGANIZATIONS, APPRAISAL IS ALSO REGULAR AND IMPORTANT, BUT IS USUALLY A SEPARATE MECHANISM FROM ORGANIZATIONAL CONTROLS

APPLICATION ALTHOUGH THE THEORY X MANAGEMENT STYLE IS WIDELY ACCEPTED AS INFERIOR TO OTHERS, IT HAS ITS PLACE IN LARGE-SCALE PRODUCTION OPERATION AND UNSKILLED PRODUCTION LINE WORK. MANY OF THE PRINCIPLES OF THEORY Y ARE WIDELY ADOPTED BY TYPES OF ORGANIZATION THAT VALUE AND ENCOURAGE PARTICIPATION. THEORY Y-STYLE MANAGEMENT IS SUITED TO KNOWLEDGE WORK AND PROFESSIONAL SERVICES. ERG THEORY : ERG MOTIVATION THEORY ALDERFER

CLAYTON P. ALDERFER'S ERG THEORY FROM 1969 CONDENSES MASLOW'S FIVE HUMAN NEEDS INTO THREE CATEGORIES: EXISTENCE, RELATEDNESS AND GROWTH.

EXISTENCE NEEDS INCLUDE ALL MATERIAL AND PHYSIOLOGICAL DESIRES (E.G., FOOD, WATER, AIR, CLOTHING, SAFETY, PHYSICAL LOVE AND AFFECTION). MASLOW'S FIRST TWO LEVELS.

RELATEDNESS NEEDS ENCOMPASS SOCIAL AND EXTERNAL ESTEEM; RELATIONSHIPS WITH SIGNIFICANT OTHERS LIKE FAMILY, FRIENDS, CO-WORKERS AND EMPLOYERS . THIS ALSO MEANS TO BE RECOGNIZED AND FEEL SECURE AS PART OF A GROUP OR FAMILY. MASLOW'S THIRD AND FOURTH LEVELS.

GROWTH NEEDS INTERNAL ESTEEM AND SELF ACTUALIZATION; THESE IMPEL A PERSON TO MAKE CREATIVE OR PRODUCTIVE EFFECTS ON HIMSELF AND THE ENVIRONMENT (E.G., TO PROGRESS TOWARD ONE'S IDEAL SELF). MASLOW'S FOURTH AND FIFTH LEVELS. THIS INCLUDES DESIRES TO BE CREATIVE AND PRODUCTIVE, AND TO COMPLETE MEANINGFUL TASKS.

RELATIONSHIPS BETWEEN ALDERFER'S ERG THEORY CONCEPTS

THERE ARE THREE RELATIONSHIPS AMONG THE DIFFERENT CATEGORIES IN ALDERFER'S ERG THEORY:

SATISFACTION-PROGRESSION MOVING UP TO HIGHER-LEVEL NEEDS BASED ON SATISFIED NEEDS.

WITH MASLOW, SATISFACTION-PROGRESSION PLAYS AN IMPORTANT PART. INDIVIDUALS MOVE UP THE NEED HIERARCHY AS A RESULT OF SATISFYING LOWER ORDER NEEDS. IN ALDERFER'S ERG THEORY, THIS ISN'T NECESSARILY SO. THE PROGRESSION UPWARD FROM RELATEDNESS SATISFACTION TO GROWTH DESIRES DOES NOT PRESUME THE SATISFACTION OF A PERSON'S EXISTENCE NEEDS.

FRUSTRATION-REGRESSION IF A HIGHER LEVEL NEED REMAINS UNFULFILLED, A PERSON MAY REGRESS TO LOWER LEVEL NEEDS THAT APPEAR EASIER TO SATISFY.

FRUSTRATION-REGRESSION SUGGESTS THAT AN ALREADY SATISFIED NEED CAN BECOME ACTIVE WHEN A HIGHER NEED CANNOT BE SATISFIED. THUS, IF A PERSON IS CONTINUALLY FRUSTRATED IN HIS/HER ATTEMPTS TO SATISFY GROWTH, RELATEDNESS NEEDS CAN RESURFACE AS KEY MOTIVATORS.

SATISFACTION-STRENGTHENING ITERATIVELY STRENGTHENING A CURRENT LEVEL OF SATISFIED NEEDS. SATISFACTION-STRENGTHENING INDICATES THAT AN ALREADY SATISFIED NEED CAN MAINTAIN SATISFACTION OR STRENGTHEN LOWER LEVEL NEEDS ITERATIVELY WHEN IT FAILS TO GRATIFY HIGH-LEVEL NEEDS.

MCCLELLAND'S NEED THEORY

MCCLELLAND'S NEED THEORY FOCUSES ON PERSONALITY AND LEARNED NEEDS. HE CATEGORIZED MOTIVES INTO THREE MANIFEST NEEDS: NEED FOR ACHIEVEMENT, NEED FOR AFFILIATION, AND NEED FOR POWER.

NEED FOR ACHIEVEMENT THE NEED FOR ACHIEVEMENT REFERS TO SEEKING EXCELLENCE IN PERFORMANCE AND DIFFICULT, CHALLENGING GOALS. RESEARCH INDICATES THAT PEOPLE WITH A HIGH NEED FOR ACHIEVEMENT OUTPERFORM THOSE WITH A MODERATE OR LOW NEED FOR ACHIEVEMENT.

NEED FOR POWER

THE NEED FOR POWER IS CONCERNED WITH MAKING AN IMPACT ON OTHERS, INFLUENCING OTHERS, CHANGING PEOPLE OR EVENTS, AND MAKING A DIFFERENCE IN LIFE. MCCLELLAND FURTHER DISTINGUISHED BETWEEN SOCIALIZED POWER (USED FOR THE BENEFIT OF MANY) AND PERSONALIZED POWER (USED FOR PERSONAL GAIN).

NEED FOR AFFILIATION

THE NEED FOR AFFILIATION EMPHASIZES THE ESTABLISHMENT AND NURTURING OF INTIMATE RELATIONSHIPS WITH OTHER PEOPLE. IN CONTRAST, INDIVIDUALS with A HIGH NEED FOR AUTONOMY, AS OUTLINED IN MURRAY’S MANIFEST NEEDS THEORY, VALUE INDEPENDENCE AND FREEDOM FROM CONSTRAINTS.

HERZBERG'S TWO-FACTOR THEORY

THE TWO-FACTOR THEORY EXAMINES THE DEGREE TO WHICH INDIVIDUALS ARE SATISFIED OR DISSATISFIED AT WORK. HERZBERG'S THEORY PROVIDED TWO LISTS OF NEEDS. FOR EXAMPLE, WORK CONDITIONS RELATED TO SATISFYING PSYCHOLOGICAL NEEDS WERE DETERMINED TO BE MOTIVATION FACTORS. ON THE OTHER HAND, HYGIENE FACTORS WERE RELATED TO DISSATISFACTION AND WERE CAUSED BY DISCOMFORT OR PAIN.

MOTIVATION FACTORS

MOTIVATION FACTORS LEAD TO POSITIVE MENTAL HEALTH AND CHALLENGE PEOPLE TO GROW; YET THE ABSENCE OF THESE FACTORS DOES NOT LEAD TO DISSATISFACTION.

HYGIENE FACTORS JOB DISSATISFACTION OCCURS WHEN THE HYGIENE FACTORS ARE EITHER NOT PRESENT OR NOT SUFFICIENT. HOWEVER, BECAUSE THEY CANNOT STIMULATE PSYCHOLOGICAL GROWTH, THEY DO NOT LEAD TO SATISFACTION.

LEADERSHIP

LEADERS ARE PEOPLE WHO DO THE RIGHT THING; MANAGERS ARE PEOPLE WHO DO THINGS RIGHT.

– PROFESSOR WARREN G. BENNIS

LEADERSHIP IS THE ART OF GETTING SOMEONE ELSE TO DO SOMETHING YOU WANT DONE BECAUSE HE WANTS TO DO IT.

– DWIGHT D. EISENHOWER

TYPES LEADERSHIP

LEADERSHIP THEORY OVER TIME, A NUMBER OF THEORIES OF LEADERSHIP HAVE BEEN PROPOSED. HERE ARE SOME OF THE MAIN IDEAS.

GREAT MAN THEORY TRAIT THEORY BEHAVIORAL THEORIES ROLE THEORY THE MANAGERIAL GRID PARTICIPATIVE LEADERSHIP LEWIN'S LEADERSHIP STYLES LIKERT'S LEADERSHIP STYLES SITUATIONAL LEADERSHIP HERSEY AND BLANCHARD'S SITUATIONAL LEADERSHIP VROOM AND YETTON'S NORMATIVE MODEL HOUSE'S PATH-GOAL THEORY OF LEADERSHIP CONTINGENCY THEORIES FIEDLER'S LEAST PREFERRED CO-WORKER (LPC) THEORY COGNITIVE RESOURCE THEORY STRATEGIC CONTINGENCIES THEORY TRANSACTIONAL LEADERSHIP LEADER-MEMBER EXCHANGE (LMX) THEORY TRANSFORMATIONAL LEADERSHIP BASS' TRANSFORMATIONAL LEADERSHIP THEORY BURNS' TRANSFORMATIONAL LEADERSHIP THEORY

KOUZES AND POSNER'S LEADERSHIP PARTICIPATION INVENTORY

GREAT MAN THEORY

DESCRIPTION EARLY RESEARCH ON LEADERSHIP WAS BASED ON THE THE STUDY OF PEOPLE WHO WERE ALREADY GREAT LEADERS. THESE PEOPLE WERE OFTEN FROM THE ARISTOCRACY, AS FEW FROM LOWER CLASSES HAD THE OPPORTUNITY TO LEAD. THIS CONTRIBUTED TO THE NOTION THAT LEADERSHIP HAD SOMETHING TO DO WITH BREEDING.THE IDEA OF THE GREAT MAN ALSO STRAYED INTO THE MYTHIC DOMAIN, WITH NOTIONS THAT IN TIMES OF NEED, A GREAT MAN WOULD ARISE, ALMOST BY MAGIC. THIS WAS EASY TO VERIFY, BY POINTING TO PEOPLE SUCH AS EISENHOWER AND CHURCHILL, LET ALONE THOSE FURTHER BACK ALONG THE TIMELINE, EVEN TO JESUS, MOSES, MOHAMMED AND THE BUDDAH.

BEHAVIORAL THEORY OF LEADERSHIP

ASSUMPTIONS LEADERS CAN BE MADE, RATHER THAN ARE BORN.SUCCESSFUL LEADERSHIP IS BASED IN DEFINABLE, LEARNABLE BEHAVIOR.

DESCRIPTION BEHAVIORAL THEORIES OF LEADERSHIP DO NOT SEEK INBORN TRAITS OR CAPABILITIES. RATHER, THEY LOOK AT WHAT LEADERS ACTUALLY DO.IF SUCCESS CAN BE DEFINED IN TERMS OF DESCRIBABLE ACTIONS, THEN IT SHOULD BE RELATIVELY EASY FOR OTHER PEOPLE TO ACT IN THE SAME WAY. THIS IS EASIER TO TEACH AND LEARN THEN TO ADOPT THE MORE EPHEMERAL 'TRAITS' OR 'CAPABILITIES'.

TRAIT THEORY

ASSUMPTIONS PEOPLE ARE BORN WITH INHERITED TRAITS.SOME TRAITS ARE PARTICULARLY SUITED TO LEADERSHIP.PEOPLE WHO MAKE GOOD LEADERS HAVE THE RIGHT (OR SUFFICIENT) COMBINATION OF TRAITS.

MCCALL AND LOMBARDO (1983) RESEARCHED BOTH SUCCESS AND FAILURE IDENTIFIED FOUR PRIMARY TRAITS BY WHICH LEADERS COULD SUCCEED OR 'DERAIL':

EMOTIONAL STABILITY AND COMPOSURE: CALM, CONFIDENT AND PREDICTABLE, PARTICULARLY WHEN UNDER STRESS.

ADMITTING ERROR: OWNING UP TO MISTAKES, RATHER THAN PUTTING ENERGY INTO COVERING UP.

GOOD INTERPERSONAL SKILLS: ABLE TO COMMUNICATE AND PERSUADE OTHERS WITHOUT RESORT TO NEGATIVE OR COERCIVE TACTICS.

INTELLECTUAL BREADTH: ABLE TO UNDERSTAND A WIDE RANGE OF AREAS, RATHER THAN HAVING A NARROW (AND NARROW-MINDED) AREA OF EXPERTISE.

THE MANAGERIAL GRID LEADERS MAY BE CONCERNED FOR THEIR PEOPLE AND THEY ALSO MUST ALSO HAVE SOME CONCERN FOR THE WORK TO BE DONE. THE QUESTION IS, HOW MUCH ATTENTION TO THEY PAY TO ONE OR THE OTHER? THIS IS A MODEL DEFINED BY BLAKE AND MOUTON IN THE EARLY 1960S.

IMPOVERISHED MANAGEMENT MINIMUM EFFORT TO GET THE WORK DONE. A BASICALLY LAZY APPROACH THAT AVOIDS AS MUCH WORK AS POSSIBLE.

AUTHORITY-COMPLIANCE STRONG FOCUS ON TASK, BUT WITH LITTLE CONCERN FOR PEOPLE. FOCUS ON EFFICIENCY, INCLUDING THE ELIMINATION OF PEOPLE WHEREVER POSSIBLE.

COUNTRY CLUB MANAGEMENT CARE AND CONCERN FOR THE PEOPLE, WITH A COMFORTABLE AND FRIENDLY ENVIRONMENT AND COLLEGIAL STYLE. BUT A LOW FOCUS ON TASK MAY GIVE QUESTIONABLE RESULTS.

MIDDLE OF THE ROAD MANAGEMENT A WEAK BALANCE OF FOCUS ON BOTH PEOPLE AND THE WORK. DOING ENOUGH TO GET THINGS DONE, BUT NOT PUSHING THE BOUNDARIES OF WHAT MAY BE POSSIBLE.

TEAM MANAGEMENT FIRING ON ALL CYLINDERS: PEOPLE ARE COMMITTED TO TASK AND LEADER IS COMMITTED TO PEOPLE (AS WELL AS TASK).

LIKERTS MANAGEMENT

LIKERT'S LEADERSHIP STYLES DESCRIPTION

RENSIS LIKERT IDENTIFIED FOUR MAIN STYLES OF LEADERSHIP, IN PARTICULAR AROUND DECISION-MAKING AND THE DEGREE TO WHICH PEOPLE ARE INVOLVED IN THE DECISION.EXPLOITIVE AUTHORITATIVE

IN THIS STYLE, THE LEADER HAS A LOW CONCERN FOR PEOPLE AND USES SUCH METHODS AS THREATS AND OTHER FEAR-BASED METHODS TO ACHIEVE CONFORMANCE. COMMUNICATION IS ALMOST ENTIRELY DOWNWARDS AND THE PSYCHOLOGICALLY DISTANT CONCERNS OF PEOPLE ARE IGNORED.BENEVOLENT AUTHORITATIVE

WHEN THE LEADER ADDS CONCERN FOR PEOPLE TO AN AUTHORITATIVE POSITION, A 'BENEVOLENT DICTATORSHIP' IS FORMED. THE LEADER NOW USES REWARDS TO ENCOURAGE APPROPRIATE PERFORMANCE AND LISTENS MORE TO CONCERNS LOWER DOWN THE ORGANIZATION, ALTHOUGH WHAT THEY HEAR IS OFTEN ROSE-TINTED, BEING LIMITED TO WHAT THEIR SUBORDINATES THINK THAT THE BOSS WANTS TO HEAR. ALTHOUGH THERE MAY BE SOME DELEGATION OF DECISIONS, ALMOST ALL MAJOR DECISIONS ARE STILL MADE CENTRALLY.CONSULTATIVE

THE UPWARD FLOW OF INFORMATION HERE IS STILL CAUTIOUS AND ROSE-TINTED TO SOME DEGREE, ALTHOUGH THE LEADER IS MAKING GENUINE EFFORTS TO LISTEN CAREFULLY TO IDEAS. NEVERTHELESS, MAJOR DECISIONS ARE STILL LARGELY CENTRALLY MADE.PARTICIPATIVE

AT THIS LEVEL, THE LEADER MAKES MAXIMUM USE OF PARTICIPATIVE METHODS, ENGAGING PEOPLE LOWER DOWN THE ORGANIZATION IN DECISION-MAKING. PEOPLE ACROSS THE ORGANIZATION ARE PSYCHOLOGICALLY CLOSER TOGETHER AND WORK WELL TOGETHER AT ALL LEVELS.

UNIT-4 MANAGEMENT CHANGE

CHANGE MANAGEMENT (CM) REFERS TO ANY APPROACH TO TRANSITIONING INDIVIDUALS, TEAMS, AND ORGANIZATIONS USING METHODS INTENDED TO RE-DIRECT THE USE OF RESOURCES, BUSINESS PROCESS, BUDGET ALLOCATIONS, OR OTHER MODES OF OPERATION THAT SIGNIFICANTLY RESHAPE A COMPANY OR ORGANIZATION.

THE FOUR CHANGE CONTROL SYSTEMS ARE: SCOPE CHANGE CONTROL SYSTEM – THE PROPOSED CHANGE DIRECTLY AFFECTS THE PROJECT SCOPE (THIS IS THE MOST COMMON PROPOSED CHANGE). A TYPICAL TYPE OF SCOPE CHANGE COULD BE THE PROJECT CUSTOMER ASKS FOR ADDITIONAL ITEMS TO BE INCLUDED IN THE PROJECT SCOPE THAT WERE NOT ALREADY APPROVED AS PART OF THE PROJECT SCOPE.

COST CHANGE CONTROL SYSTEM – THE SCOPE CONTENTS HAVE NOT CHANGE, BUT THE PRICE FOR THE ITEMS IN THE SCOPE HAVE INCREASED OR DECREASED. FOR EXAMPLE, IN A CONSTRUCTION PROJECT THE SPECIFIC MARBLE TILE HAS INCREASED IN COST.

SCHEDULE CHANGE CONTROL SYSTEM – THE PROJECT SCHEDULE HAS BEEN AFFECTED SOMEHOW AND EVENTS IN THE PROJECT ARE BEING DELAYED. FOR EXAMPLE, THE MATERIALS NEEDED FOR THE PROJECT ARE BACKORDERED FROM THE VENDOR. CONTROL CHANGE CONTROL SYSTEM – FOR PROJECTS WHERE A CONTRACT IS BEING UTILIZED WITH A VENDOR ANY CHANGES TO THE PROJECT THAT AFFECT THE VENDOR WILL FLOW THROUGH THE CONTRACT CHANGE CONTROL SYSTEM.

LEWIN'S CHANGE MANAGEMENT MODEL UNDERSTANDING THE THREE STAGES OF CHANGE

CHANGE IS A COMMON THREAD THAT RUNS THROUGH ALL BUSINESSES REGARDLESS OF SIZE, INDUSTRY AND AGE. OUR WORLD IS CHANGING FAST AND, AS SUCH, ORGANIZATIONS MUST CHANGE QUICKLY TOO. ORGANIZATIONS THAT HANDLE CHANGE WELL THRIVE, WHILST THOSE THAT DO NOT MAY STRUGGLE TO SURVIVE.

THE CONCEPT OF "CHANGE MANAGEMENT" IS A FAMILIAR ONE IN MOST BUSINESSES TODAY. BUT HOW BUSINESSES MANAGE CHANGE (AND HOW SUCCESSFUL THEY ARE AT IT) VARIES ENORMOUSLY DEPENDING ON THE NATURE OF THE BUSINESS, THE CHANGE AND THE PEOPLE INVOLVED. AND A KEY PART OF THIS DEPENDS ON HOW FAR PEOPLE WITHIN IT UNDERSTAND THE CHANGE PROCESS.ONE OF THE CORNERSTONE MODELS FOR UNDERSTANDING ORGANIZATIONAL CHANGE WAS DEVELOPED BY KURT LEWIN BACK IN THE 1940S, AND STILL HOLDS TRUE TODAY. HIS MODEL IS KNOWN AS UNFREEZE – CHANGE – REFREEZE, REFERS TO THE THREE-STAGE PROCESS OF CHANGE HE DESCRIBES. LEWIN, A PHYSICIST AS WELL AS SOCIAL SCIENTIST, EXPLAINED ORGANIZATIONAL CHANGE USING THE ANALOGY OF CHANGING THE SHAPE OF A BLOCK OF ICE.

UNDERSTANDING LEWIN'S CHANGE MANAGEMENT MODEL IF YOU HAVE A LARGE CUBE OF ICE, BUT REALIZE THAT WHAT YOU WANT IS A CONE OF ICE, WHAT DO YOU DO? FIRST YOU MUST MELT THE ICE TO MAKE IT AMENABLE TO CHANGE (UNFREEZE). THEN YOU MUST MOLD THE ICED WATER INTO THE SHAPE YOU WANT (CHANGE). FINALLY, YOU MUST SOLIDIFY THE NEW SHAPE (REFREEZE).

LEWIN'S CHANGE MODEL: UNFREEZE, CHANGE, REFREEZE UNFREEZE

THIS FIRST STAGE OF CHANGE INVOLVES PREPARING THE ORGANIZATION TO ACCEPT THAT CHANGE IS NECESSARY, WHICH INVOLVES BREAK DOWN THE EXISTING STATUS QUO BEFORE YOU CAN BUILD UP A NEW WAY OF OPERATING.KEY TO THIS IS DEVELOPING A COMPELLING MESSAGE SHOWING WHY THE EXISTING WAY OF DOING THINGS CANNOT CONTINUE. THIS IS EASIEST TO FRAME WHEN YOU CAN POINT TO DECLINING SALES FIGURES, POOR FINANCIAL RESULTS, WORRYING CUSTOMER SATISFACTION SURVEYS, OR SUCHLIKE: THESE SHOW THAT THINGS HAVE TO CHANGE IN A WAY THAT EVERYONE CAN UNDERSTAND.THIS FIRST PART OF THE CHANGE PROCESS IS USUALLY THE MOST DIFFICULT AND STRESSFUL. WHEN YOU START CUTTING DOWN THE "WAY THINGS ARE DONE", YOU PUT EVERYONE AND EVERYTHING OFF BALANCE. YOU MAY EVOKE STRONG REACTIONS IN PEOPLE, AND THAT'S EXACTLY WHAT NEEDS TO DONE.BY FORCING THE ORGANIZATION TO RE-EXAMINE ITS CORE, YOU EFFECTIVELY CREATE A (CONTROLLED) CRISIS, WHICH IN TURN CAN BUILD A STRONG MOTIVATION TO SEEK OUT A NEW EQUILIBRIUM. WITHOUT THIS MOTIVATION, YOU WON'T GET THE BUY-IN AND PARTICIPATION NECESSARY TO EFFECT ANY MEANINGFUL CHANGE.

CHANGE AFTER THE UNCERTAINTY CREATED IN THE UNFREEZE STAGE, THE CHANGE STAGE IS WHERE PEOPLE BEGIN TO RESOLVE THEIR UNCERTAINTY AND LOOK FOR NEW WAYS TO DO THINGS. PEOPLE START TO BELIEVE AND ACT IN WAYS THAT SUPPORT THE NEW DIRECTION.THE TRANSITION FROM UNFREEZE TO CHANGE DOES NOT HAPPEN OVERNIGHT: PEOPLE TAKE TIME TO EMBRACE THE NEW DIRECTION AND PARTICIPATE PROACTIVELY IN THE CHANGE. A RELATED CHANGE MODEL, THE CHANGE CURVE ADD TO MY PERSONAL LEARNING PLAN, FOCUSES ON THE SPECIFIC ISSUE OF PERSONAL TRANSITIONS IN A CHANGING ENVIRONMENT AND IS USEFUL FOR UNDERSTANDING THIS SPECIFIC ASPECT IN MORE DETAIL.

IN ORDER TO ACCEPT THE CHANGE AND CONTRIBUTE TO MAKING THE CHANGE SUCCESSFUL, PEOPLE NEED TO UNDERSTAND HOW THE CHANGES WILL BENEFIT THEM. NOT EVERYONE WILL FALL IN LINE JUST BECAUSE THE CHANGE IS NECESSARY AND WILL BENEFIT THE COMPANY. THIS IS A COMMON ASSUMPTION AND PITFALL THAT SHOULD BE AVOIDED.

REFREEZE WHEN THE CHANGES ARE TAKING SHAPE AND PEOPLE HAVE EMBRACED THE NEW WAYS OF WORKING, THE ORGANIZATION IS READY TO REFREEZE. THE OUTWARD SIGNS OF THE REFREEZE ARE A STABLE ORGANIZATION CHART, CONSISTENT JOB DESCRIPTIONS, AND SO ON. THE REFREEZE STAGE ALSO NEEDS TO HELP PEOPLE AND THE ORGANIZATION INTERNALIZE OR INSTITUTIONALIZE THE CHANGES. THIS MEANS MAKING SURE THAT THE CHANGES ARE USED ALL THE TIME; AND THAT THEY ARE INCORPORATED INTO EVERYDAY

BUSINESS. WITH A NEW SENSE OF STABILITY, EMPLOYEES FEEL CONFIDENT AND COMFORTABLE WITH THE NEW WAYS OF WORKING.YOU CAN LEARN ANOTHER 63 PROJECT MANAGEMENT SKILLS, LIKE THIS, BY JOINING THE MIND TOOLS CLUB.

UNFREEZE 1. DETERMINE WHAT NEEDS TO CHANGE. SURVEY THE ORGANIZATION TO UNDERSTAND THE CURRENT STATE.UNDERSTAND WHY CHANGE HAS TO TAKE PLACE.

2. ENSURE THERE IS STRONG SUPPORT FROM UPPER MANAGEMENT. USE STAKEHOLDER ANALYSIS ADD TO MY PERSONAL LEARNING PLAN AND STAKEHOLDER MANAGEMENT ADD TO MY PERSONAL LEARNING PLAN TO IDENTIFY AND WIN THE SUPPORT OF KEY PEOPLE WITHIN THE ORGANIZATION.FRAME THE ISSUE AS ONE OF ORGANIZATION-WIDE IMPORTANCE.

3. CREATE THE NEED FOR CHANGE.

CREATE A COMPELLING MESSAGE AS TO WHY CHANGE HAS TO OCCUR.USE YOUR VISION AND STRATEGY AS SUPPORTING EVIDENCE.COMMUNICATE THE VISION IN TERMS OF THE CHANGE REQUIRED.EMPHASIZE THE "WHY".

4. MANAGE AND UNDERSTAND THE DOUBTS AND CONCERNS. REMAIN OPEN TO EMPLOYEE CONCERNS AND ADDRESS IN TERMS OF THE NEED TO CHANGE.CHANGE

1. COMMUNICATE OFTEN. DO SO THROUGHOUT THE PLANNING AND IMPLEMENTATION OF THE CHANGES.DESCRIBE THE BENEFITS.EXPLAIN EXACTLY THE HOW THE CHANGES WILL EFFECT EVERYONE.PREPARE EVERYONE FOR WHAT IS COMING.

2. DISPEL RUMORS. ANSWER QUESTIONS OPENLY AND HONESTLY.

DEAL WITH PROBLEMS IMMEDIATELY.RELATE THE NEED FOR CHANGE BACK TO OPERATIONAL NECESSITIES.

3. EMPOWER ACTION.

PROVIDE LOTS OF OPPORTUNITY FOR EMPLOYEE INVOLVEMENT.HAVE LINE MANAGERS PROVIDE DAY-TO-DAY DIRECTION.

4. INVOLVE PEOPLE IN THE PROCESS. GENERATE SHORT-TERM WINS TO REINFORCE THE CHANGE.NEGOTIATE WITH EXTERNAL STAKEHOLDERS AS NECESSARY (SUCH AS EMPLOYEE ORGANIZATIONS).REFREEZE

1. ANCHOR THE CHANGES INTO THE CULTURE.IDENTITY WHAT SUPPORTS THE CHANGE.IDENTIFY BARRIERS TO SUSTAINING CHANGE.2. DEVELOP WAYS TO SUSTAIN THE CHANGE.ENSURE LEADERSHIP SUPPORT.CREATE A REWARD SYSTEM.ESTABLISH FEEDBACK SYSTEMS.ADAPT THE ORGANIZATIONAL STRUCTURE AS NECESSARY.3. PROVIDE SUPPORT AND TRAINING.KEEP EVERYONE INFORMED AND SUPPORTED.4. CELEBRATE SUCCESS!

TOOLS FOR CHANGE MANAGEMENT ALL ORGANIZATIONS ARE DESTINED TO EITHER PERISH THROUGH BUSINESS FAILURE FROM BEING LEFT BEHIND BY THE COMPETITION OR HAVE TO ACCEPT THAT UNDERTAKING CHANGE IS A NATURAL PART OF BUSINESS LIFE IN ORDER TO KEEP IN LINE WITH CUSTOMER REQUIREMENTS, THE NEED FOR IMPROVEMENTS OR CUSTOMER OR FASHION DEMANDS. HOWEVER BEFORE CONSIDERING CHANGE - WHAT TYPE OF CHANGE, HOW TO DO IT, IDENTIFYING WHO IS TO BE INVOLVED OR WHO IS AFFECTED BY ANY CHANGE TWO POINTS NEED TO BE MADE. FIRSTLY IT IS ABSOLUTELY CRUCIAL TO GAIN THE MOST SENIOR LEVEL SUPPORT AND COMMITMENT AS ANY CHANGE MANAGEMENT PLAN IS DESTINED TO FAIL UNLESS SUPPORTED BY A MAIN SPONSOR, OFTEN THE SENIOR

MANAGEMENT OF THE ORGANIZATION, THE ORGANIZATION’S STAKEHOLDERS AND IN SOME CASES ITS CUSTOMER BASE TOO. SECONDLY, ACCEPTANCE IS NEEDED WITHIN THE ORGANIZATION THAT SUCH RECOMMENDED CHANGE IS SEEN AS BEING APPROPRIATE FOR THE SPECIFIC ORGANIZATION.

THE FIRST PHASE COVERS ORGANIZATIONAL PRE-POSITIONING WITH A FOCUS ON THE PREPARATIONS FOR CHANGE THROUGH COMMUNICATIONS WITH STAFF AND STAKEHOLDERS, IT CONCENTRATES ON PREPARATION FOR THE INTRODUCTION OF A CHANGES TO THE ORGANIZATIONAL STRUCTURE AND THE DELIVERY OF GENERAL CHANGE MANAGEMENT AWARENESS TRAINING TO STAFF. THIS IS AN IMPORTANT PHASE AIMED AT PREPARING THE ORGANIZATION FOR CHANGE, GAINING COMMITMENT FROM THOSE INVOLVED AND MANAGING THE ASSOCIATED RISKS. THIS PRE-POSITIONING PHASE TYPICALLY TAKES AROUND SIX MONTHS ON ANY MEANINGFUL SIZE PROGRAM.THE SECOND PHASE IS THAT OF THE IMPLEMENTATION OF THE CHANGE MANAGEMENT PLAN. THIS PHASE CONCENTRATES ON BRINGING INTO THE REALITY THE CHANGES IN ACCORDANCE WITH THE AGREED PLANS AND THE BUSINESS OBJECTIVES. OFTEN THIS PHASE DOES NOT JUST ABOUT INCLUDE THE INTRODUCTION OF NEW WORKING METHODS AND PROCESSES BUT COVERS ANY NEW SENIOR MANAGEMENT APPOINTMENTS WHICH NEED TO BE INITIATED AS PART OF A NEW ORGANIZATIONAL STRUCTURE. THIS SECOND PHASE CAN BE UP TO A YEAR IN DURATION. THE THIRD AND FINAL PHASE HAS A FOCUS ON CONTINUAL SUPPORT AND IMPROVEMENTS AS THE CHANGES BECOME EMBEDDED WITHIN THE ORGANIZATION AND REGARDED AS THE “WAY TO DO BUSINESS”. THIS LONGER-TERM THIRD PHASE LEADS TO THE LONGER TERM AND MORE DIFFICULT CULTURAL CHANGE AND IN PROGRAMME TERMS IS TYPICALLY OF THE OVER OF 18 MONTHS. THIS PHASE IS IMPORTANT FOR THE CHANGES TO BE SUCCESSFUL WITHIN THE TRANSFORMED ORGANIZATION AND FOR EMPLOYEES TO UNDERSTAND THEIR NEW ROLES AND THEIR CONTRIBUTION TO SUCCESS OF THE ORGANIZATION. THERE ARE A NUMBER OF FACTORS THAT SHOULD BE CONSIDERED BY MANAGEMENT IN CHOOSING HOW TO IMPLEMENT THE NECESSARY CHANGES, AS EACH APPROACH WILL BE APPROPRIATE IN DIFFERENT CIRCUMSTANCES. IN AGREEING AN APPROPRIATE STRATEGY OR COMBINATION OF STRATEGIES FOR CHANGE, THE ORGANIZATION’S MANAGEMENT WILL NEED TO TAKE INTO ACCOUNT THE FOLLOWING FACTORS:THE DEGREE OF THE OPPOSITION EXPECTED;THE POWER BASE OF THE CHANGE INITIATOR;THE NEED FOR INFORMATION, COMMUNICATION AND COMMITMENT WHEN PLANNING AND CARRYING OUT THE CHANGE.THE NATURE OF THE CURRENT ORGANIZATION’S CULTURE AND ITS LIKELY RESPONSE TO CHANGE.

AFTER CONSIDERING THE ABOVE FACTORS THERE ARE FIVE BROAD OPTIONAL APPROACHES WHICH CAN BE DEPLOYED IN CHANGE IMPLEMENTATION.

DIRECTIVE STRATEGY : HERE THE MANAGEMENT CAN USE ITS AUTHORITY TO IMPOSE THE CHANGES REQUIRED AND WILL BE ABLE TO CARRY THEM OUT SPEEDILY. HOWEVER, THE DISADVANTAGE OF THIS APPROACH IS THAT IT IS LIKELY TO INCREASE RESISTANCE OR EVEN UNDERMINE CHANGE IMPLEMENTATION.

EXPERT STRATEGY:  THIS APPROACH IS USUALLY APPLIED WHEN A ‘TECHNICAL’ PROBLEM REQUIRES SOLVING, SUCH AS THE INTRODUCTION OF A NEW IT SYSTEM. NEGOTIATING STRATEGY: THIS APPROACH INVOLVES A WILLINGNESS TO NEGOTIATE WITH INDIVIDUALS AND TEAMS AFFECTED BY THE CHANGE AND TO ACCEPT THAT ADJUSTMENTS AND CONCESSIONS MAY HAVE TO BE MADE. CHANGING WORK PRACTICES IN RETURN FOR INCREASED PAY AND/OR OTHER BENEFITS IS A CLASSIC EXAMPLE OF THE NEGOTIATING STRATEGY. 

EDUCATIVE STRATEGY:  THIS APPROACH INVOLVES CHANGING PEOPLE’S VALUES AND BELIEFS SO THAT THEY SUPPORT THE CHANGE AND ARE COMMITTED TO A SHARED SET OF ORGANISATIONAL VALUES. WINNING HEARTS AND MINDS IS A COMPLEX PROCESS THAT INVOLVES A MIXTURE OF ACTIVITIES, SUCH AS: COMMUNICATION, PERSUASION, EDUCATION, TRAINING AND SELECTION. THE ADVANTAGE OF SUCH AN APPROACH, IF SUCCESSFUL, IS THAT PEOPLE WILL BE POSITIVELY COMMITTED TO THE CHANGE. IN GENERAL THIS APPROACH TYPICALLY TAKES MUCH LONGER AND REQUIRES MORE RESOURCES THAN THE PREVIOUS THREE STRATEGIES.

PARTICIPATIVE STRATEGY:  THIS STRATEGY HAS A NUMBER OF ADVANTAGES: CHANGES ARE MORE LIKELY TO BE WIDELY ACCEPTABLE OVER THE OTHERS, IT PROMOTES THE ACTIVE INVOLVEMENT OF PEOPLE AND IS LIKELY TO INCREASE THEIR COMMITMENT TO AND ENTHUSIASM FOR THE CHANGE PROCESS. ADDITIONALLY THERE WILL BE OPPORTUNITIES FOR BOTH MANAGERS AND EMPLOYEES TO LEARN FROM THE EXPERIENCES AND SKILLS OF THIS WIDE PARTICIPATION. WHILST THIS HAS A NUMBER OF ADVANTAGES DUE TO THE PARTICIPATION OF STAFF, THE IDENTIFIED CHANGES ARE LIKELY TO TAKE LONGER AND REQUIRE ADDITIONAL RESOURCES TO SUPPORT THE CHANGE.

STRESS MANAGEMENT

STRESS MANAGEMENT REFERS TO THE WIDE SPECTRUM OF TECHNIQUES AND PSYCHOTHERAPIES AIMED AT CONTROLLING A PERSON'S LEVELS OF STRESS, ESPECIALLY CHRONIC STRESS, USUALLY FOR THE PURPOSE OF IMPROVING EVERYDAY FUNCTIONING.

UNHEALTHY WAYS OF COPING WITH STRESS

THESE COPING STRATEGIES MAY TEMPORARILY REDUCE STRESS, BUT THEY CAUSE MORE DAMAGE IN THE LONG RUN:

SMOKING DRINKING TOO MUCH BINGEING ON JUNK OR COMFORT FOOD ZONING OUT FOR HOURS IN FRONT OF THE TV OR COMPUTER WITHDRAWING FROM FRIENDS, FAMILY, AND ACTIVITIES USING PILLS OR DRUGS TO RELAX SLEEPING TOO MUCH PROCRASTINATING FILLING UP EVERY MINUTE OF THE DAY TO AVOID FACING PROBLEMS TAKING OUT YOUR STRESS ON OTHERS (LASHING OUT, ANGRY OUTBURSTS,

PHYSICAL VIOLENCE)

UNIT-6

STRATEGIC MANAGEMENT STRATEGIC MANAGEMENT INVOLVES THE FORMULATION AND IMPLEMENTATION OF THE MAJOR GOALS AND INITIATIVES TAKEN BY A COMPANY'S TOP MANAGEMENT ON BEHALF OF OWNERS, BASED ON CONSIDERATION OF RESOURCES AND AN ASSESSMENT OF THE INTERNAL AND EXTERNAL ENVIRONMENTS IN WHICH THE ORGANIZATION COMPETES.

STRATEGY - DEFINITION AND FEATURES THE WORD “STRATEGY” IS DERIVED FROM THE GREEK WORD “STRATÇGOS”; STRATUS (MEANING ARMY) AND “AGO” (MEANING LEADING/MOVING).STRATEGY IS AN ACTION THAT MANAGERS TAKE TO ATTAIN ONE OR MORE OF THE ORGANIZATION’S GOALS. STRATEGY CAN ALSO BE DEFINED AS “A GENERAL DIRECTION SET FOR THE COMPANY AND ITS VARIOUS COMPONENTS TO ACHIEVE A DESIRED STATE IN THE FUTURE. STRATEGY RESULTS FROM THE DETAILED STRATEGIC PLANNING PROCESS”.

A STRATEGY IS ALL ABOUT INTEGRATING ORGANIZATIONAL ACTIVITIES AND UTILIZING AND ALLOCATING THE SCARCE RESOURCES WITHIN THE ORGANIZATIONAL ENVIRONMENT SO AS TO MEET THE PRESENT OBJECTIVES. WHILE PLANNING A STRATEGY IT IS ESSENTIAL TO CONSIDER THAT DECISIONS ARE NOT TAKEN IN A VACCUM AND THAT ANY ACT TAKEN BY A FIRM IS LIKELY TO BE MET BY A REACTION FROM THOSE AFFECTED, COMPETITORS, CUSTOMERS, EMPLOYEES OR SUPPLIERS.

FEATURES OF STRATEGY STRATEGY IS SIGNIFICANT BECAUSE IT IS NOT POSSIBLE TO FORESEE THE FUTURE. WITHOUT A PERFECT FORESIGHT, THE FIRMS MUST BE READY TO DEAL WITH THE UNCERTAIN EVENTS WHICH CONSTITUTE THE BUSINESS ENVIRONMENT.STRATEGY DEALS WITH LONG TERM DEVELOPMENTS RATHER THAN ROUTINE OPERATIONS, I.E. IT DEALS WITH PROBABILITY OF INNOVATIONS OR NEW PRODUCTS, NEW METHODS OF PRODUCTIONS, OR NEW MARKETS TO BE DEVELOPED IN FUTURE.STRATEGY IS CREATED TO TAKE INTO ACCOUNT THE PROBABLE BEHAVIOR OF CUSTOMERS AND COMPETITORS. STRATEGIES DEALING WITH EMPLOYEES WILL PREDICT THE EMPLOYEE BEHAVIOR.

STRATEGY IS A WELL DEFINED ROADMAP OF AN ORGANIZATION. IT DEFINES THE OVERALL MISSION, VISION AND DIRECTION OF AN ORGANIZATION. THE OBJECTIVE OF A STRATEGY IS TO MAXIMIZE AN ORGANIZATION’S STRENGTHS AND TO MINIMIZE THE STRENGTHS OF THE COMPETITORS.

PROCESS OF STRATEGY MANAGEMENT

STRATEGIC ANALYSIS TOOLS DEFINITION AND CONCEPT

STRATEGIC ANALYSIS IS:

‘… THE PROCESS OF CONDUCTING RESEARCH ON THE BUSINESS ENVIRONMENT WITHIN WHICH

AN ORGANISATION OPERATES AND ON THE ORGANISATION ITSELF, IN ORDER TO FORMULATE

STRATEGY.’BNET BUSINESS DICTIONARY

‘… A THEORETICALLY INFORMED UNDERSTANDING OF THE ENVIRONMENT IN WHICH AN

ORGANISATION IS OPERATING, TOGETHER WITH AN UNDERSTANDING OF THE ORGANISATION’SINTERACTION WITH ITS ENVIRONMENT IN ORDER TO IMPROVE ORGANISATIONAL EFFICIENCY AND

EFFECTIVENESS BY INCREASING THE ORGANISATION’S CAPACITY TO DEPLOY AND REDEPLOY ITS

RESOURCES INTELLIGENTLY.’

1. IDENTIFICATION AND EVALUATION OF DATA RELEVANT TO STRATEGY FORMULATION.2. DEFINITION OF THE EXTERNAL AND INTERNAL ENVIRONMENT TO BE ANALYSED.3. A RANGE OF ANALYTICAL METHODS THAT CAN BE EMPLOYED IN THE ANALYSIS.EXAMPLES OF ANALYTICAL METHODS USED IN STRATEGIC ANALYSIS INCLUDE:• SWOT ANALYSIS

• PEST ANALYSIS

• PORTER’S FIVE FORCES ANALYSIS

• FOUR CORNER’S ANALYSIS

• VALUE CHAIN ANALYSIS

• EARLY WARNING SCANS

• WAR GAMING.

SWOT ANALYSIS A SWOT ANALYSIS IS A SIMPLE BUT WIDELY USED TOOL THAT HELPS IN UNDERSTANDING THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS INVOLVED IN A PROJECT OR BUSINESS ACTIVITY. IT STARTS BY DEFINING THE OBJECTIVE OF THE PROJECT OR BUSINESS ACTIVITY AND IDENTIFIES THE INTERNAL AND EXTERNAL FACTORS THAT ARE IMPORTANT TO ACHIEVING THAT OBJECTIVE. STRENGTHS AND WEAKNESSES ARE USUALLY INTERNAL TO THE ORGANISATION, WHILE OPPORTUNITIES AND THREATS ARE USUALLY EXTERNAL. OFTEN THESE ARE PLOTTED ON A SIMPLE 2X2 MATRIX. SWOT ANALYSIS DIAGRAM

PEST ANALYSIS PEST ANALYSIS IS A SCAN OF THE EXTERNAL MACRO-ENVIRONMENT IN WHICH AN

ORGANISATION EXISTS. IT IS A USEFUL TOOL FOR UNDERSTANDING THE POLITICAL, ECONOMIC, SOCIO-CULTURAL AND TECHNOLOGICAL ENVIRONMENT THAT AN ORGANISATION OPERATES IN. IT CAN BE USED FOR EVALUATING MARKET GROWTH OR DECLINE, AND AS SUCH THE POSITION, POTENTIAL AND DIRECTION FOR A BUSINESS.

POLITICAL FACTORS. THESE INCLUDE GOVERNMENT REGULATIONS SUCH AS EMPLOYMENT

LAWS, ENVIRONMENTAL REGULATIONS AND TAX POLICY. OTHER POLITICAL FACTORS ARE TRADE RESTRICTIONS AND POLITICAL STABILITY.ECONOMIC FACTORS. THESE AFFECT THE COST OF CAPITAL AND PURCHASING POWER OF AN ORGANISATION. ECONOMIC FACTORS INCLUDE ECONOMIC GROWTH, INTEREST RATES, INFLATION AND CURRENCY EXCHANGE RATES.SOCIAL FACTORS. THESE IMPACT ON THE CONSUMER’S NEED AND THE POTENTIAL MARKET

SIZE FOR AN ORGANISATION’S GOODS AND SERVICES. SOCIAL FACTORS INCLUDE POPULATION GROWTH, AGE DEMOGRAPHICS AND ATTITUDES TOWARDS HEALTH.TECHNOLOGICAL FACTORS. THESE INFLUENCE BARRIERS TO ENTRY, MAKE OR BUY DECISIONS AND INVESTMENT IN INNOVATION, SUCH AS AUTOMATION, INVESTMENT INCENTIVES AND THE RATE OF TECHNOLOGICAL CHANGE.

PORTER’S FIVE FORCES PORTER'S FIVE FORCES OF COMPETITIVE POSITION ANALYSIS WAS DEVELOPED IN 1979 BY

MICHAEL E. PORTER OF HARVARD BUSINESS SCHOOL AS A SIMPLE FRAMEWORK FOR ASSESSING AND EVALUATING THE COMPETITIVE STRENGTH AND POSITION OF A BUSINESS ORGANISATION.

THIS THEORY IS BASED ON THE CONCEPT THAT THERE ARE FIVE FORCES WHICH DETERMINE

THE COMPETITIVE INTENSITY AND ATTRACTIVENESS OF A MARKET. PORTER’S FIVE FORCES HELPS TO IDENTIFY WHERE POWER LIES IN A BUSINESS SITUATION. THIS IS USEFUL BOTH INUNDERSTANDING THE STRENGTH OF AN ORGANISATION’S CURRENT COMPETITIVE POSITION, AND THE STRENGTH OF A POSITION THAT AN ORGANISATION MAY LOOK TO MOVE INTO.

STRATEGIC ANALYSTS OFTEN USE PORTER’S FIVE FORCES TO UNDERSTAND WHETHER NEW

PRODUCTS OR SERVICES ARE POTENTIALLY PROFITABLE. BY UNDERSTANDING WHERE POWER LIES, THE THEORY CAN ALSO BE USED TO IDENTIFY AREAS OF STRENGTH, TO IMPROVE WEAKNESSES AND TO AVOID MISTAKES.THE FIVE FORCES ARE:

1. SUPPLIER POWER. AN ASSESSMENT OF HOW EASY IT IS FOR SUPPLIERS TO DRIVE UP

PRICES. THIS IS DRIVEN BY:• THE NUMBER OF SUPPLIERS OF EACH ESSENTIAL INPUT

• THE UNIQUENESS OF THEIR PRODUCT OR SERVICE

• THE RELATIVE SIZE AND STRENGTH OF THE SUPPLIER

• THE COST OF SWITCHING FROM ONE SUPPLIER TO ANOTHER.2. BUYER POWER. AN ASSESSMENT OF HOW EASY IT IS FOR BUYERS TO DRIVE PRICES

DOWN. THIS IS DRIVEN BY:• THE NUMBER OF BUYERS IN THE MARKET

• THE IMPORTANCE OF EACH INDIVIDUAL BUYER TO THE ORGANISATION

• THE COST TO THE BUYER OF SWITCHING FROM ONE SUPPLIER TO ANOTHER. STRATEGIC ANALYSIS TOOLS TOPIC GATEWAY SERIES

IF A BUSINESS HAS JUST A FEW POWERFUL BUYERS, THEY ARE OFTEN ABLE TO DICTATE TERMS.3. COMPETITIVE RIVALRY. THE KEY DRIVER IS THE NUMBER AND CAPABILITY OF

COMPETITORS IN THE MARKET. MANY COMPETITORS, OFFERING UNDIFFERENTIATED

PRODUCTS AND SERVICES, WILL REDUCE MARKET ATTRACTIVENESS.4. THREAT OF SUBSTITUTION. WHERE CLOSE SUBSTITUTE PRODUCTS EXIST IN A MARKET, ITINCREASES THE LIKELIHOOD OF CUSTOMERS SWITCHING TO ALTERNATIVES IN RESPONSE TO

PRICE INCREASES. THIS REDUCES BOTH THE POWER OF SUPPLIERS AND THE

ATTRACTIVENESS OF THE MARKET.5. THREAT OF NEW ENTRY. PROFITABLE MARKETS ATTRACT NEW ENTRANTS, WHICH ERODES

PROFITABILITY. UNLESS INCUMBENTS HAVE STRONG AND DURABLE BARRIERS TO ENTRY, FOR EXAMPLE, PATENTS, ECONOMIES OF SCALE, CAPITAL REQUIREMENTS OR GOVERNMENT

POLICIES, THEN PROFITABILITY WILL DECLINE TO A COMPETITIVE RATE.