principles & practices of management (ssbm)-course material

7/27/2019 Principles & Practices of Management (SSBM)-Course Material

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Principles & Practices of Management

Course Material Prepared by

Dr. Vivek SaneDirector, SIBM Pune


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INDE

XSr. No. Topics Pg. No.

1. Definitions 3

2. Forecasting, Planning and Decision-making 5

3. Organisation and Staffing 12

4. Direction 19

5. Controlling 23

6. Co-ordination 27

7. Leadership 32

8. Communication 34

9. Motivation 38

10. Morale 42


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(I)

DEFINITIONS OF MANAGEMENT

1. Management i s Planning, Organizing, Controlli ng, Di recting, and Co-ordinatingsupported by Leadership, Communication, Motivation, and Morale.

2. Management i s getting thi ngs done through and with other people.

3. Koontz and ODonell have defined Management as the creation and maintenance ofin ternal environment in an enterpr ise, where individuals worki ng together in groups can

perform efficiently and effectively towards the attainment of group goals.

4. By Peter Drucker, Management is a multipurpose organ that manages a business,manages a manager and manages workers and work.

5. By Appley L, Management is the attainment of pre-establ ished goals by the dir ection ofhuman performance along pre-established lines. I t i s management of people and not the

direction of things.

6. Management is Management of Men, Money, Machinery, Materials and Information.

Features of Management

1. Management is purposeful and goal oriented (It has definite economic and socialobjectives).

2. Management is universal (Applied everywhere).3. Management is situational (Differs from situation to situation).4. Management is continuous process.5. Management is creative.6. Management is multidisciplinary (It includes knowledge/ information from other

disciplines like Economics, Maths, Statistics, Psychology, Sociology etc.).

7. Management is dynamic (Changes as per time).


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8. Management is what management does (Management is understood by performance).9. Management is influenced by internal and external environmental factors.

Internal External

a. Place a. Economic factorsb. Labour b. Politicalc. Machines c. Legald. Money d. Social

e. Cultural

f. Climatic

g. Technological

h. Globali. Ethical

j. Moral

10.Management exists at all levels in the organisation.11.Management is a combination of Arts, Science, Profession.12.Origin of Management is in the basic Economic problem.

- Resources are limited.- Resources can be put to multiple uses.- Wants are unlimited.- Wants are satisfied at the point of time they reoccur.- Wants need to be prioritized.So we need to MANAGE Resources.

To conclude it can be said that

- Management is not just a function.- Management is not just a discipline.- Management is not just a process.It is and should beWAY OF LIFE.


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(II)

FORECASTING, PLANNING ANDDECISION-MAKING

FORECASTING

Forecasting is considered as the primary function of Management and even precedes planning.

Forecasting is defined as-

Visualizing, anticipating the future based on current analysis and future trends.

Forecasting is a scientific process of predicting the future of the business. It can befunction-specific such as marketing forecasts, manpower forecasts etc.

Analysis of various environmental factors is helpful to predict the future of the organisation.These factors are economic political, social political etc.

Benefits of forecasting:

1) Compels thinking ahead, provides for future.2) Discloses areas where control may be required in the future.3) Helps to unify and formulates plans.4) Brings singleness of purpose to planning.

Helps in SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis.

PLANNING

Introduction:

Planning is a primary function of management.

Plann ing is deciding in advance -

What is to be done? (Nature of Business)

When to do it? (Time Factor)

How to do it? (Technology & Strategy)

Who to do it? (People Factor)

Why to do it? (Objectives)


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Where to do it? (Location Factor)

If we get answers to the above questions, planning process is complete.

Please remember

Planning is a thinking process.Planning is based on forecasting.

Planning is forward looking.

Planning is -

Long look ahead

Broad look around

& Searching look within.

Unique Features Of Planning:

It is the most basic of all management functions.

Provides a rational approach to achieve preselected objectives.

Involves selecting missions and objectives and the required actions.

Requires decision-making.

Bridges the gap from where we are and where we want to go.

An intellectually demanding process.

Planning Is The Foundation Of Management

What kind of

organisation

structure to

Which

helps us

knowWhat kind of

people we need

andwhenWhich affects the

kind of

leadership we

have anddirection

How most

effectively to

lead people

By furnishing

standards of

control

In order to

ensure success of

plans

PLANS

Objectives

and how toachieve

them


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Nature Of Planning

Contribution of Planning to Purpose and objectives

Every plan and all its supporting plans should contribute to the accomplishment of the

purpose and objectives of the enterprise.

Primacy of Planning

Since managerial operations in organizing, staffing, leading and controlling are designed to

support the accomplishment of enterprise objectives, planning logically precedes theexecution of all the other managerial functions. Although in practice, all the functions

mesh as a system of action, planning is unique, as it involves establishing the objectives

necessary for all group efforts.

Pervasiveness of Planning

Planning is an integral part of all managers, although the character and breadth of planningwill vary with each managers authority and with the nature of the policies and plans

outlined by superiors.

Efficiency of Plans

Plans are efficient if they achieve their purpose at a reasonable cost, where cost is measured

not only in terms of money or time or production but also in the degree of individual and

group satisfaction.

Components Of Planning

1) Purposes Or M issions It identifies the basic function or task of an enterprise oragency or any part of it. For example purpose of courts is the correct interpretation oflaws and their application.

2) Objectives- It is the end towards which activity is aimed, represents not only the endpoints of planning but also the end towards which organizing, staffing, leading and

controlling are aimed. While enterprise objectives are the basic plan of the firm, adepartment may also have its own objectives. The objectives are consistent yet differ insome ways.

3) Strategies- It is the determination of basic long-term objectives of an enterprise and theadoption of courses of action and allocation of resources necessary to achieve thesegoals. Strategies do not attempt to outline exactly how the enterprise is to accomplish

its objectives but furnishes a framework for guiding, thinking and action.


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4) Policies-It is general statements or understandings that guide or channel thinking indecision-making. Policies define an area within which a decision is to be made andensure that the decision will be consistent with and contribute to an objective. It makes

it unnecessary to analyze the same situation every time it comes up by deciding on

issues before they become a problem.5) Procedures-Plans that establish a required method of handling future activities. They

are chronological sequences of required actions. They are guides to action rather than

thinking and they detail the exact manner in which certain activities must be

accomplished.

6) Rules-Spell specified required actions or non-actions allowing no discretion. There is acertain distinction between rules and policies.

Purpose of policies is to guide decision-making by marking off the areas in which

managers can use their discretion. Although rules also serve as guides, they allow no

discretion in their application.7) Programs-It is a complex of goals, policies, procedures, rules, task assignments, steps

to be taken and other elements necessary to carry out a given course of action. A

primary major program may call for many supporting programs.

8) Budgets-Statement of expected results expressed in numerical form. As budget is inthe form of numbers it forces precision in planning. Budget forces a company to makein advance numerical compilation of expected cash flow, expenses and revenues and

capital outlays.

Steps In Planning

Being aware of

opportunity

Setting

objectives or

goals

Considering

Planning

Premises

Identifying

Alternatives

Comparing

Alternatives in

light of goal

sought

Choosing an

alternative

Formulating

supporting

plans

Numberizing

plans by

making budgets


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DECISION-MAKING

Planning and decision-making are closely interlinked. Decision-making is an integral part of

planning. Decision-making as a process and function of management is very vital as many

critical aspects of management depend upon the right decision at the right time. The followinggeneral observations will tell us how complicated, at the same time how challenging decision-

making is.

Every decision is right when it is taken.

Not to take a decision is also a decision.

The manager is as good as the decision he takes.

Decision-making is the most creative activity in the life of a manager.

Rationality in decision-making is subjective.

Decision-making is conflict-resolving process.

Decision-making exists at all levels, but it is so perceptive that people in the middle

and lower levels never get an opportunity to take the decisions.

Right decision at wrong timing is disastrous.

Decision-making is also influenced by gut feeling or intuition (Very difficult to

define these words, but it is said that no explanation is necessary if you believe inthem and no explanation is possible if you dont)

So decision-making is often a function of sixth sense

What is Decision-making?

Decision-making is a process of making a choice out of the best alternatives. It is an

intellectual process involving the following steps:

Identify the problem (Need for action is felt).

Collect information from all possible sources.

Develop alternatives.

Compare and evaluate these alternatives.

Decision-making stage of making a choice among alternatives.

Implementation and communication of decisions.


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Follow-up and review.

Factors affecting the Decision-making Process:

Information:(It must be available, authentic, adequate, reliable. It must be available at

the right time. It must be analyzed and presented in the right manner.)

Time Factor: Decision must be taken at the right time. Some products are introduced

ahead of time. For e.g. Dish washers introduced in India. Decisions are also timebound. In business context, introduction of air conditioners, coolers and refrigerators in

summers and woolen clothing in winter also suggests the influence of time in decision-

making.

External Environmental Factors: As decision-making is always interactive with the

environment, various environmental factors influence decision-making such as

economic, political, social, cultural, technical, ethical, legal, global factors.

I nternal Factors: Rules, regulations, procedures within the organisation oradministrative restrictions also affect decision-making.

Personali ty of the Decision Maker or Subjectivity:The decision-making process has a

lot to do with who is the decision maker, his attitudes, perceptions, values, style of

functioning, the nature of personality and overall way of thinking.

Parti cipation, Acceptance and Implementation: Elements of how decisions are taken,

how far they are accepted and how they are to be implemented also contribute in the

decision-making process.

Precedent: In a bureaucratic set up this becomes a ruling factor as questions like Havewe done this before?, Is there a precedent of taking such decisions? are often askedbefore taking a decision.

Experi ence of a Decision Maker: As it is said that experience is the best teacher,

maturity in business experience of a manager go a long way in taking effectivedecisions.

Power to Decide:Many times, people know what is wrong in the organisation, but oftenthey do not have the power to decide and act. That is how the concept of empowerment

is evolved which talks about decision-making to the lowest possible level.

Escalation of Commitment (Point of No-return):After a decision has been taken, it isoften felt that the decision is going in a wrong way, but more than half of the work is

completed. Therefore, there comes a point of no return and the decision has to be

completed in spite of negative feedback.

Bounded Rationality:Constructing simplified models that extract the essential features

from the problems without capturing all their complexities. The decision maker settles


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for the early solution that is good enough. In Laymans language, decision maker finds

out the earliest available alternatives, takes certain things for granted and acts on it.

The decision maker takes generalized judgmental shortcuts which are also calledHeuristics. For e.g. if two students from a particular management institute show

exemplary performance in the job, the judgmental shortcut is every student from this

institute is good, and vise versa.

Problem Perception: Problems that are visible catch a decision makers decision.

These problems become the first to be acted upon, or a priority. For e.g. if at the time

of the Chief Executive Officers (CEO) visit, workers start agitating, then this agitationbecomes the main problem for the CEO because it is visible for him.


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(III)

ORGANISATION AND STAFFING

ORGANISATION

Introduction

Function of organising follows that of planning. It is a complex process that involves authority,

responsibility, and accountability of structure so as to understand all aspect of organisation.

We need to understand the following definition of organisation

1. Organisation as a process2. Organisation as a structure of authority3. Organisation as a relationship4. Organisation as a corporate citizen5. Organisation as an establishment

Brief explanation of these different words and concepts associated with organisation.

1. Organising as a processIt consists of:

Preparing the list of activities to be performed

Growing of those activities

Marketing HR

Appointing people & staffing process

Giving them authority and assigning responsibility

Completion and fulfillment of task and follow up

[Narayan MurthyInfosysYum International- Company that governs Pizza hut in India]

2. Organisation as a structure of authority

No organisation is built in a day. It is an evolving process, where over a period of time,structures that bind people by authority, responsibility, accountability and power is created.

3. Organisation as a relationshipPeople are not only formally bound but they interact with each other within the

organisation and outside the organisation. This is called informal relationship bound by

feelings, togetherness, affection, interaction, informal communication.


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DELEGATION OF AUTHORITY

Introduction

To delegate is to confer off er, give, allot, assign, part of author ity to the next subordinate.

Delegation to the lowest possible level is called decentralization. Normally a person may notbe inclined to part with authority but because of limited time, energy, under creation of

structure, delegation becomes inevitable.

Degrees Of Delegation:From the lowest degree called delegation on paper to another extreme called delegate anddisappear, there are variations regarding how much authority is to be delegated. Ideally, the

system should be monitored so that the person to whom authority is delegated will keep his

superiors informed. In other words, ask subordinate to take decision in exceptional situations,consult and keep authorities informed from time to time regarding implication of decisions

being taken.

Process Of Delegation (Steps In Delegation)1. Decide on Quantum of Authority to be delegated (how much to delegate).2. Select appropriate subordinate.3. Ask task and delegate.4. Communicate and develop accountability system (Reporting system).5. Monitor the process of delegation.6.

Take appropriate steps if work assigned is not completed.

The most important aspect of delegation process is authority is delegated but responsibility isnot.

Problems In Delegation

A. From the Superiors View point

1. Tendency to expect that subordinate will refer all matters to him. (Factor ofindispensability and reluctance to delegate)

2. Lack of Trust and confidence in subordinate3. Unwillingness to create second line of authority4. Fear of loss of control over subordinate5. Disbelieving benefits of delegation


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B. From Subordinates View point

1. Fear of criticism2. More delegation is associated with more work, so there is a reluctance on the part of the

subordinates

3.

Subordinates prefer to refer the matter to superior so that he will not be heldaccountable for consequence (play safe)4. Disappointment with paper delegation5. Subordinate also perceives more work with no reward6. Overall meritocracy in the organisation, which results in to crippling of decisions

making process.

Note: As it can be observed from the above, most of these problems are attitudinal

problems and interpersonal relationship problems.

Principles Of Effective Delegation OrHow To Delegate Effectively

1. Select the right subordinate for delegation (clarify delegation process)2. Train them3. Reward them (if delegation is perceived as additional work then incentive system is to

be introduced in the delegation process)

4. Motivate and encourage employees5. Set-up a proper control mechanism (ideal reporting system)6. Communicate delegation to the lowest possible level7. Management is an ability to multiply through others so believe in competence and not

favouritism (believe in system while delegation)

8. As most of the problems are attitudinal, consult council and understand subordinatesproblems

9. Principle of exception: This principle says that exceptional matters (sensitive crucialcrisis management must be referred to the top authorities)

10.Decide how much to delegate11.Do not delegate on paper (avoid delegation on paper)12.Do not delegate and disappear, you being in charge. Please remember that authority can

be delegated but responsibility cannot.


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Difference Between

Formal Organisation Informal Organisation

1. Created for the completion of Job or

work

1. Created because of Satisfying

social needs of people at work

place.

2. Authority, Power are binding forces. 2. Relationship, interaction arebinding forces.

3. There exists a formal communication

such as business letters, meetings,

conferences, reports including toning of

such communication which is formal

3. Communication is informal. May

take a form of get-together and

discussions, sit-outs with no

formal agenda.

4. Membership is deliberately applied for.

Names are finalized with a scientificselection process.

4. Membership is a result of

common interest, likesdislikes,acceptance etc. It evolves over a

period of time.5. Membership is bound by contract of

employment and is permanent.

5. Tenure of membership is fluid

and flexible. It is uncertain.

6. Restricted to working hours, bound by

time and nature of Job.

6. It extends beyond working hours

and can last longer.

7. Stronger relationship at workplace

depends upon clarity of structure and

definition of Job profile.

7. Intensity of relationship is defined

by bonds of relationship and

sharing of concern for each other.

8. There is a hierarchy in relationship. 8. There is no hierarchy. Relations

are based on equality.

9. Leader is imposed along with the task

and there is no choice to member

9. Leader merges and acceptance is

the only criteria. May be differentroles at different times are

assigned to people in the group.

Conclusion:Intensity and roles are complimentary and supportive. Both organisations are different but

interdependent. People involved are the same. And they offer strength to each other in terms of

bonding and togetherness.


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STAFFING

Introduction:Staffing has become an integral part of organizing. From right person for right job concept has

moved on to right job for right person. Initially job was center point at the time of selectionnow it is an individual who is the center point at the time of staffing process.

Scope of Staffing function can be ascertained with the help of following topics:

1. Manpower Planning: Forecasting manpower requirement, skill sets, qualities, growthprospects of company, and intake trends in the industry.

2. Recruitment: Positive process of inviting candidates to apply for the jobs.Recruitment sources like Newspapers, Internet, Campus placement, Referrals, Internal

promotions are to be explored).

3. Selection: It is the process of making right choice of candidates. Process differs fromlevels to levels in the organization. Standard process constitutes steps like written test,

group discussion and interviews. These days process differs from sector to sector

selection process.

4. Induction: Introduction of newcomer to the company and introduction of company tothe newcomer.

5. Placement: It is all about designation, deciding on reporting authorities, span ofmanagement.

6. Compensation management: pay and salary details, various allowances, incentives,and facilities.

7. Performance Appraisals: Evaluating performance of the candidate. It has changedinto performance plus potential appraisal and 360 degree appraisal system in which

superior, peer, subordinate, business associate and candidate himself conducts

evaluation process.

8. Transfer, Promotion, Career Planning (Regular staffing activities, criteria are to bedecided, objectivity to be ensured, principle of equity and justice to be followed.

9. Training and Development: Improving skill enhancement techniques, personalityimprovement skills. It has an element of updating and moving with time.

10.Welfare: It is considered as positive HR initiative to enhance employee welfare. Thesedays holistic view is taken and includes employees family.


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11.Employer-Employee Relations: It is all about negotiations for salary, perks, benefitsunderstanding of each others roles.

12.Retirement: Staffing is a process of recruitment, retainment and retirement. Companyneeds to look at retirement age, compensation after retirement medical care.

Staffing process believes in the principle ofunless people in the organization grow,

organization will not grow.


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(IV)

DIRECTIONIntroduction

Direction is telling people what to do and seeing that they do it to the best of theirability. It includes making assignments, explaining procedures, seeing that mistakes are

corrected, provided on the job instructions, and, of course issuing orders.

Direction is that part of management, which actuates the people to work efficiently and

effectively. It constitutes the life-spark to the enterprise, which like electric power sets it into

motion.

Direction has a major concern with the, human element of the organisation. People are

actuated through direction. Planning and organizing are only preparations for doing the work

and the work actually starts when the direction function of the management is performed. It is

the direction function of the management, which is related with the activities that deal directlywith influencing, guiding, supervising and motivating the people in the organisation for the

attainment of certain objectives.

Direction involves communicating and providing leadership and motivation to the people to

contribute to the best of the capabilities for the achievements of objectives of the enterprise.

Planning and organizing as effectively as they might be, must be supplemented by effectivecommunication and motivation by an able leadership.

Who is to Direct?

Direction is concerned primarily with the people who put the plan into action.

It is the duty of the managers at each level to achieve co-operation of the subordinates for the

achievements of organisational objectives. It should not be thought that only the managers at

the lower levels, who deal directly with the operative employees, perform the direction

function. Direction is also done by the top-level managers and middle level managers.

Elements of Direction:It consists of four elements:

1. Issuing of orders that are clear, complete and within the capabilities of subordinates toaccomplish;

2. Continuous training activity in which subordinates are instructed to carry out theparticular assignment in the existing situation;

3. Motivation of subordinates to try to meet the expectations of the manager and;4. Maintaining discipline and rewarding those who perform properly.


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Features of Direction:

Nature of Direction function is explained in the following features:

1. Managerial Function: Direction as a managerial function is the Interpersonal aspect ofmanagement process by which organisational members are led to understand andcontribute effectively and efficiently to the accomplishment of organisational

objectives.

Direction is an important function of management. A good plan may have been

chalked out, a sound organisation may have been evolved and a sound team of

personnel may be employed, but all these will be ineffective unless there is a proper

direction of the people in the use of planning and organisation.

2. Continuous activity: Direction is a continuous activity. It does not stop as long as theexecution of plan is in process. A manager, who issues an order and thinks his function

is complete, is committing a very serious error. He is supposed to continuouslysupervise the execution of his orders or instructions. He also has to lead and motivate

the subordinates.

3. Pervasive function: Like other functions of management, Direction is also performedby the managers. The managers may elicit two types of behaviors from his

subordinates when they issue orders, viz. linear and circular.

Importance of Direction:

Direction is the life-spark of an organisation. Directing is the spark of management process

because it sets the organisational machine into motion. Theo Haimannhas said, In order tomake any managerial action, which the manager accomplishes by directing, without this

managerial function, nothing or at best very little is likely to come about it.

The importance of Direction in an organisation can be described under the following headings.

1. Heart of Administration: The heart of administration is the directing function, whichinvolves determining the course, giving orders and instructions providing the dynamic

leadership.

2. I ni tiates Action: An organisation can make good plans, set up a sound organisationstructure but nothing will happen unless it is directed into operation.

3. Helps to Achieve Objectives: Through direction a manager can utilize peoples skills,time and energy to achieve organisational objectives.

4. To Execute the Decision: Policies and procedures of the organisation are executedthrough direction provided by the managers.


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5. I rr eplaceable Task:Even in the presence of robots and computers guidance to peoplein their work will always be necessary. According to John Seymour, Direction in

business is similar to strategy in war.

6. Helps Uti li ze Capabil iti es: It helps to explore the talents of individuals and getmaximum out of them.

7. Crucial to anOrganisations Success: It provides a test of managerial capability inrunning a business enterprise successfully and is very important in determining the

organisations success.

8. Other benefi ts:a) It integrates individual efforts.b) It facilitates change in the organisation.c) It ensures stability and balance in the organisation.d) It is helpful in securing employees co-operation.e)

It develops human resources and future managers.

Principles of Direction:

1. Pri nciple of Objective: This principle states that the more effective the directionprocess, the greater will be the contribution of subordinates to organisational goals.

2. Pri nciple of Harmony of Objectives:An organisation functions best when the goals ofits members are in complete harmony with the goals of the organisation. Effective

direction should facilitate integration of individual goals with organisational goals.

3.Pri nciple of Di rect Supervision:Direction succeeds when it maintains face-to-face ordirect contact with subordinates. Direct supervision improves the loyalty and morale of

employees.

4. Pri nciple of Ef fective Leadership:This principle requires that managers should adoptan appropriate style of leadership to make direction effective. It should invite the views

and opinion of employees.

5. Principle of Communication: Direction becomes effective when the manager knowsthe feelings and difficulties of his subordinates. The manager should ensure that the

policies, plans and procedures are effectively communicated to his subordinates.

6. Principle of Uni ty of Command: To avoid disorder and confusion there should beunity of command. This implies that a subordinate get orders from just only one bossi.e his immediate boss.

7. Principle of Maximum Individual Contribution: Success is achieved when everyperson in the organisation contributes to the organisational objectives in the maximum


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way. Therefore the techniques of direction should be such as to enable the subordinates

to do their best to attain enterprise goals.

8. Principle of H uman Relations: This principle states that a managers success indirecting depends on his ability to create a healthy human relations climate.

9. Principle of Participation: Effective direction can be achieved by involvingsubordinates in decision-making process. Hence the manager should invite ideas and

suggestions. It will also produce a sense of commitment towards the directions given.

10.Principle of Follow-Through:Direction cannot be fully effective without an efficientcontrol and feedback system. Mere issuing of orders is not enough; the managers

should monitor the information on behavior and performance of their subordinates.

Follow-up mechanism will help in keeping a check on deviations and wrong behavior.


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(V)

CONTROLLING

It is the managerial function of measurement and correction of performance in order to makesure that enterprise objectives and the plans devised to attain them are accomplished.

Control Process and those activities involved in

1. Setti ng standards.2. Measur ing performance against these standards and3. Correcting or adjusting for deviati ons from the standards.

Purpose of Control

Basically there are four purposes of control.

1. Adapting to environmental change- In todays complex and turbulent businessenvironment if managers could establish goals and achieve them instantaneouslycontrol would not be needed. But many things happen in the organisation and its

environment, to disrupt movement towards the goals. A properly designed controlsystem can help managers anticipate, monitor and respond to changing circumstances.

2. L imi ting the accumulation of error- Small mistakes and errors do not often seriouslydamage an organisations health. But over a time, small errors may accumulate andeventually become very serious. Controlling helps in limiting the accumulation of error.

1. Objective

2. Standards

3. Performance

6. Corrected

Performance

5.Corrective

Action (if

necessary)

4. Measurement


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3. Coping with organisational complexity. - When a firm purchases only one rawmaterial, produces one product, its managers can maintain control with a very basic andsimple system. But a business that produces many products and has a large market area

needs a sophisticated system to maintain adequate control.

4. Minimizing costs- When practiced effectively, control can also help reduce costs andboost outputs. Effective control systems can eliminate waste, lower labour costs, and

improve output per unit of input.

Characteristics of Effective Control

1. I ntegrating with planning- Control should be linked with planning. The more explicitand precise this linkage, the more effective the control system. The goals are to be set

during the planning process; attention should be paid to developing standards that will

reflect how well the plan is realized.

2. Flexibility- The control system itself must be flexible enough to accommodate change.Consider, for e.g. an organisation with diverse product line. Now when a change inproduct line changes, the number of raw materials needed, or when the required

quantities of the existing materials change, the control system should be flexible to

handle the revised requirements.

3. Accuracy- It has been found that managers make a surprisingly large number ofdecisions based on inaccurate information. Field representatives may hedge their sales

estimates to make themselves look better. Production managers may hide costs to meet

their targets. In each case the information the other manager receives is inaccurate. Byproper controlling we can keep check on all these practices.

4. Timeliness-Timeliness does not necessarily mean quickness; it rather describes acontrol system that provides information as often as is necessary.

Resistance of Control

Managers sometimes make a mistake assuming that the value of an effective control system is

self evident to employees. Many employees resist control, especially if they feel over

controlled, if they think that control is inappropriately focused or reward inefficiency, or if theyare uncomfortable with accountability.

1. Over Control- Occasionally, organisations try to control too many things. This becomesespecially problematic when the control directly affects employee behavior. Anorganisation that instructs its employees when to come to work, where to part, when to

have the morning coffee, exerts considerable control over peoples daily activities.

People feel that these efforts to control their personal behavior were excessive.


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2. I nappropriate Focus- The control system may be narrow or it may focus too much onquantifiable variable and leave no room for analysis or interpretation. Example a salesstandard that encourages high-pressure tactics to maximize short-run sales may do so at

the expense of goodwill from long-term customers. Such a standard is too narrow.

3. Rewards for I neff iciency- Imagine two operating departments in a single organisationapproaching the end fiscal year. Department 1 expects to have Rs.5000/- of its budget

left over while department 2 is already Rs.3000/- in the red. As a result, department 1 is

likely to have its budget cut for the next year and department 2 is likely to get a budgetincreased. Thus, department 1 is punished for being efficient and department 2 is

rewarded for being inefficient. As with inappropriate focus people resist the intent of

this control and behave in ways that run counter to the organisation.

4. Too much accountabili ty- Effective controls allow managers to determine whetheremployees successfully discharge their responsibility. People who do not want to be

answerable for their mistakes or who do not want to work as hard as their boss mighttherefore resist control.

Overcoming Resistance of Control

Perhaps the best way to overcome resistance to control is to create effective control to being

with. If control systems are properly integrated with organisations planning and if the controls

are flexible, accurate, timely, and objective, the organisation is less likely to over control. Twoways to overcome resistance are encouraging participation and developing verification

procedure.

1.Encourage employee participation- When employees are involved in planning andimplementing the control system, they are less likely to resist it.

2. Develop ver if ication-Multiple standards and information systems provide checks andbalances in control and allow the organisation to verify the accuracy of performance

indicators. Resistance to control declines because these verification procedures protect

both employees and management.


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TYPES OF CONTROL

Forms Of Operations Control

Preliminary ControlFocus is on inputs to the organisational system.

Screening ControlScreening Control focuses on meeting standards for product and / or service quality or

quantity during the actual transformation process itself. Screening Control relies

heavily on feedback processes. The periodic quality checks provide feedback toworkers so they know what, if any, corrective actions to take. Because they are useful

in identifying the cause of problems, screening controls tend to be used more often thanother forms of control.

Post action ControlMonitors the outputs or results of the organisation after the transformation process is

complete. Although post action control alone may not be as effective as preliminary or

screening control, it can provide management with information for future planning. For

example, if a quality check of finished good indicates an unacceptably high defect rate,the production manager knows that he or she must identity the causes and take steps to

eliminate them. Post action control also provides a basis for rewarding employees.

Recognizing that an employee has exceeded personal sales goals by a wide margin, forexample, may alert the manager that a bonus or promotion is in order.

Financial ControlFinancial Control is the control of financial resources as they flow into the organisation

(i.e., revenues, share holder investment,) as held by the organisation (i.e. working

capital, retained earnings) and flow out of the organisation (i.e. pay, expenses).Businesses must manage their finances so that revenues are sufficient to cover costs and

still return a profit to the firms owners.

Budgetary ControlBudgeting is the formulation of plans for a given future period in numerical terms. Assuch, budgets are statements of anticipated results, either in financial terms- as in

revenue and expense and capital budgets or in non-financial terms - as in budgets of

direct-labour hours, materials, physical sales volume, or units of production. It hasoften being said, for e.g. that financial budget represents the dollarizing of plants.


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(VI)

CO-ORDINATION

Co-ordination is the orderly synchronization of group efforts to provide the proper amount,timing, directing and co-operation of execution resulting in harmonious and unified actions to a

stated objective.

Co-ordination should be rightly considered as the essence management because each of the

managerial functions of planning, organisation, staffing, controlling and directing is an

exercise in co-ordination. It is the process of integrating activities of separate departments in

order to pursue organisational goals more effectively. Without proper co-ordination, peoplewould loose sight of their roles within an organisation and be tempted to pursue their own

departmental interests at the expense of the organisational goals.

Need for Co-ordination

The extent of co-ordination needed in an organisation depends on the nature of tasks anddegree of interdependence of people in various units performing them. When these tasks

require or can benefit from communication between units, then a high degree of co-ordination

is the best. When information exchange is less important, work may be completed with less

interaction between units. Also a high degree of co-ordination arises because of the followingfactors.

1. Division of Labour:When managers divide work into specialized functions ordepartments, they at the same create the need for the co-ordination of these activities.

Generally, the greater of the division of the labour, the greater the need for co-ordination. If two people in one unit do all the work of an organisation, it is clear thatthere is little need for co-ordination. But if the work has been divided into ten units

with hundred employees, the need for co-ordination is much greater. Co-ordination

ensures proper synchronization between activities of different units, avoids

interruptions in operations due to reasons such as delay to introduce co-ordination intothe plan at a later stage when the damage has already been done.

2. Direct Interpersonal Horizontal Relationship: Co-ordination can be securedeffortlessly and effectively by direct interpersonal horizontal relationship. Such a direct

personal communication brings about agreement on methods, actions and ultimate

achievements and removes misunderstandings and conflicts. This will involve a systemin formal communication embracing all ranks and status.

3. Continuity: Co-ordination must be regarded as a continuous process and must becarried out at all times. It starts from planning and runs through the functions oforganizing, directing and controlling.


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4. Ef forts of M anager: One should not be under the wrong impression that co-ordinationcan be achieved merely by giving an order. Co-ordination is something, which cannot

be ordered. On the contrary, it must be brought about by the efforts of the managers byintegrating all efforts, ideas, and interests to some common purpose.

5.Dynamism: Co-ordination should not be rigid. Its essence lies in constantexperimentation with all phases of organisation and operations. Good co-ordinationwill remove the critical points as they arise, excellent co-ordination will anticipate them

and prevent their occurrence. The maintenance and operation departments of an airline

company provide an example of this kind of relationship. Obviously, this closeinterrelationship leads to the strongest need for co-ordination.

Types of Co-ordination

Co-ordination can be broadly classified into one of the following four types:

1. I nternal co-ordination: Co-ordination among the employees of the same departmentor section, among workers and managers at different levels, among branch offices,plants and departments and sections is called internal co-ordination.

2. External co-ordination: Co-ordination with customers, suppliers, Government andoutsiders with whom the enterprise has business connections is called external co-

ordination.

3. Verti cal co-ordination: Vertical co-ordination is what exists in a department where thedepartmental head is called upon to co-ordinate the activities of all those placed below

him.

4. Horizontal co-ordination: Horizontal co-ordination takes place sideways. It existsbetween different departments such as production, sales, purchasing, finance, personneletc.

Principles of Co-ordination

1. Early I ntroduction: Co-ordination must be visualized right from the early stages ofplanning and policymaking. At the preparation of planning stage, mutual consultation,

co-operation and give-and-take become necessary. In case a plan is prepared and putinto practice without considering the required co-ordination, it is not possible to supply

the materials and allocation of duties. This may result into overlapping.

2. I ndividual interest Vs Organisation interests: The need for co-ordination is also felt tointegrate the activities and objectives of an organisation in order to effectively achieve

organisational goals. Without co-ordination, individuals and organisations would beginto pursue their own specialized interests at the expense of organisation goals. Co-

ordination reconciles differences in approach, interest or efforts of various departments


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by avoiding inconsistencies in their priorities and objectives and policies. It

harmonizes corporate and individual goals by making individuals see how their jobs

contribute to the dominant goals of the enterprise.

3. Interdependence of Units: The need of co-ordination in an organisation also arisesbecause of the interdependence of various units. The greater the interdependence ofunits the greater the need for organisation. Interdependence among units can be of thefollowing types:

a. Pooled Interdependence: Units linked by pooled interdependence makecontributions to the total organisations but are not directly related. The need for

co-ordination between them is minimal. All product based departmentalization,

where there are separate self-contained units for manufacturing and marketing

of each products are examples of pooled interdependence.

b. Sequential Interdependence: In this kind of linkage, one organisational unitmust act before the next. Greater co-ordination is needed in sequential than inpooled interdependence though here, creating buffer in inventories can reduce

the dependence of units.

c. Reciprocal I nterdependence: In this relationship the input of one unit becomethe output of other and vise versa.

Techniques of Co-ordination

The following are important techniques to achieve co-ordination

1.

Hierarchy: The oldest as well as the simplest device for achieving co-ordination ishierarchy or chain of command. By putting inter-dependent units under one boss, some

co-ordination among their activities is ensured. The system of hierarchy makesindividuals depend upon, passive towards and subordinate to the leader.

2. Effective Communication: Organisation is consistently being modified by internaland external changes. Communication through letters, procedures, reports, bulletinsand a number of modern mechanical devices ensures that people in the organisation are

well informed of the changing situation and provided with information necessary to

ensure co-ordination. Co-ordination is concerned with the inter-relationship of separate

activities and so it can be no better than the transfer of information about those

activities to some common points, where dovetailing takes place.

3. Indoctrination: Indoctrination of organisation members with the goals and mission ofthe organisationa device used commonly in the religious and military organisations is

still another co-ordination device. According to Selznick, the major task of a leader is

not only to make a policy but to build it into the organisations social structure a

situation where everybody in the organisation spontaneously protects or advances its


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official aims and methods, succeeds in the transformation by indoctrination or other

means, the neutral body of men into a committed body.

4. Induction: Inducting a new employee into the new social setting of his work is also aco-ordinating mechanism. This device familiarizes the new employee with the

organisations rules and regulations, its dominant norms of behavior, values and beliefsand integrates his personal goals with the organisational goals.

5. Rules, procedures and policies: The specification of rules, procedures and policies isanother coming policy to co-ordinate sub-units in the performance of their repetitiveactivities. Standard policies, procedures and rules are laid down to cover all possible

situations. But as some critics point out, this device leads to a vicious cycle syndrome

in which the dysfunctional consequences of this device leads to a still stronger reliance

on it.

6. Boundary Spanning: When the number of contacts between departments decreasesdramatically it may be best to create a permanent liaison between departments. Such aliaison is said to fulfill boundary-spanning roles. Effective boundary spanning

understands the needs, responsibilities and concerns of both departments and can help

the departments communicate.

7. Reducing need for co-ordination: When the need for co-ordination is so great that themethods discussed so far are ineffective, the best approach may be to reduce the need

for tight co-ordination.Jay Galbraith describes two ways to do this:

a) Creating slack resources: Providing slack (additional) resources gives unitsflexibility in meeting each others requirements. Suppose Mercedez Benz managers

anticipate that 10,000 cars will be bought in a given region of US over a period ofthree months. The managers of the company may establish a production quota of

12,000 cars, in case demand is larger than anticipated and production deadline be

set so as to give them a safety margin, should production and transportationdifficulty arise. Without this safety margin having enough cars at the right time

might require close co-ordination between production and sales.

b) Creating independent uni ts: Another way to reduce the need for co-ordination is tocreate independent units whose members can perform all the necessity aspects of a

task rather than relying on other departments.


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Difficulty of Co-ordination

Large business enterprise consists of a number of departments, such as production, purchase,sales, finance, personnel etc. These departments find it hard to collaborate with each other due

to the differences in the attitudes and working styles. Paul R. Lawrence has identified four

such differences:

1. Di ff erence in or ientation towards particular goals:Members of different departments develop their own views about how best to advance theinterest of the organisation. To sales people, product variety may take precedence over

product quality.

2. Di ff erence in time orientation:

Some members of an organisation such as production managers will be more concerned

with problems that have to be solved immediately or within a short period of time. Others

like members of research and development team may be pre-occupied with problems that

may take years to solve.

3. Di ff erence in i nterpersonal ori entation:

In some organisational activities such as production, there may be more formal ways ofcommunicating and decision-making. In other activities such as R & D, the style of

communication and decision may be informal. Everyone may be encouraged to have a say

and to discuss his ideas with others.

4. Di ff erence in formali ty of structure:

Each unit in the organisation may have different methods and stands for evaluation process

toward objectives and for rewarding employees. In a production department, for e.g. where

quantity and quality are rigidly controlled, the evaluation and reward process might bequite formal. Employees will be judged quickly on how they will meet or exceed well-

defined performance criterion.

To conclude, it can be said that Co-ordination includes

1.Co-operation

2. Balancing

3. Timing

4. Communication

5. Integration and Synchronization


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(VII)

LEADERSHIP

What is leadership?

Leadership is a process of influencing people to direct their efforts towards the attainment

of some particular goal or goals.

Leadership is

1)A process of inf luence2)Power3) Fundamental understanding of followers4)The abil ity to i nspir e foll owers to achieve common goals5) Leader and his style of l eadershi p

AsHarry Truman puts it, Leadership is the ability to get other people to do what they dont

want to do and like it.

A good leader is one who essentially possesses the following characteristics or qualities.

a) Courage.b) Clarityc) Communicationd) Charactere) Creativityf) Controllingg) Common Senseh) Credibilityi) Charismaj) Crises management

Leadership is imbibed, not inculcated, it is said. A leader should be mentally and physically

fit. Leaders need to exhibit total integritywith themselves and with those around them. A

leader should have the courage to take challenges, to make choices, focus and prioritize. Heshould be able to take initiative. He must not be reckless, and must act with prudence. A

leader should be a good listener and must have an eye for detail.


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Leadership Styles:

1) Autocratic or Authoritarian:- Where decision making is kept solely with the leader.An autocratic leader may be a hard-boiled autocrat, or a benevolent autocrat or a

manipulative autocrat.

2) Democratic or Participative:- Where the leader leads mainly through persuasion andexample, rather than through fear, status or force.

3) Laissez faire or free Rein:- Where the leader prefers to give little or no direction,and allows his subordinates a great deal of freedom.

4) Paternalistic:- Where the leader adopts the paternalistic or fatherly attitude, and helps,guides and keeps the followers happy.

5) Bureaucratic:- Where the leader sticks to rules and procedures in dealing with hisfollowers.A good leader should be able to place the right job to the right man. This may transform

the group dynamics every man sees his aspirations merging with the teams goals.

Team-building, motivation, innovation and talent spotting are the hallmarks of a leaders

plan.

Conclusion:

Leadership is not a position, but an action. From the oldest concept of leadership, it isassociated with qualities, later it was associated with styles and situations and today it is allabout transformational leadership. To sum up, I am impressed by the leader not one who

performs great deeds but one who makes me believe that I can perform great deeds.


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(VIII)

COMMUNICATION

Introduction

There are many functions in the management process. Some appear very simple, easy to

understand, some intense and complicated. Communication falls into both these categories.

Apparently simple but sometimes very complicated. Many organisational problems have their

root cause in lack of communication or misunderstanding. Many mergers, acquisitions, joint

ventures and takeovers have run through bad weather because of communication problem at

various levels. We have communication revolution in the world with information technology

and its application in business - Internet, Intra net, Internet Telephony, Fax etc. Todays

business managers, proudly state that with communication revolution, distance is dead.

Though we agree with what has been stated the most disturbing fact of our social life is that the

desire to communicate is on the decline where human nature and tendencies revolt and are

disturbed. Complications arising from lack of communication, distorted communication takes

the center stage. Entire organisation revolves around communication system.

Definitions:

Communication is meaningful interaction. Communication is information sharing. Communication is a link force. Communication is understanding. Communication is fundamental requisite of life.


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Process of Communication

To understand the process of communication, we must look at the following chart:

Communication is a two way process

It starts with the Communicator (Ideation, Encoding, Transmission)

Received by the Communicatee (Decoding, Response, Action)

Process of any communication includes:

1. Communicator2. Communicatee3. Message4. Medium

B. Encoding

(Message Formulation)

C. Transmission(Through Media)

D. Receiving

E. Decoding(Message Interpretation)

F. Response

(Action)

A. Ideation(Source)


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Barriers to Communication

Organisational communication and also communication in social life is hampered because of a

number of barriers. These barriers create distortions, misunderstandings and problems.

These barriers are:

1. Physical barriers like noise, time and distance.2. Semantic barriers (Science of words) For e.g. wrong interpretation of words or

grammatical errors.

3. Wrong medium of communication.4. Psychological barriers like closed mind, status consciousness, attitudes, ego, values etc.5. Barriers resulting from inattentiveness, faulty transmission or poor retention.6. Barriers due to information gaps or due to lack of information.7. Barriers resulting out of difference in perceptions, outlook, approach.8. Barriers resulting from illiteracy, ignorance, and superstition in a country like India.

Lack of communication leads to:

1.

Information gap

2. Alienation3. Problems in relationship4. Misunderstandings5. Crisis situations6. Deviation from performance7. Loss of trust and confidence8. Emergence of organisational conflicts.9. Birth of organisational politics or it increases10.Disintegration


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Ten Principles of Effective Communication

1. Remember that communication is a two way process.2. Be sure of what you want to communicate and why.3. Provide the right attitude.4. Be clear in the use of language.5. Listen attentively.6. Speak to the point and avoid communication garbage (irrelevant communication).7. Be sure your actions do not contradict your communication (fulfill the promises you

have made).

8. Use right medium.9. Remember the various barriers to communication. Avoid mental blocks, closed mind,

ego problems.

10.Desire to communicate is the essence of communication.


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(XI)

MOTIVATION

What is Motivation?

Simply put it, Motivation is nothing but the willingness to exert high levels of effort towards

organisational goals, conditioned by the efforts ability to satisfy some individual need. The

three key elements in this definition are effort, organisational goals, and needs.

The effort element is a measure of intensity. When some one is motivated he or she tries hard.

But high levels of effort are unlikely to lead to favourable job performance outcomes unless the

effort is channeled in a direction that benefits the organisation, therefore, we must consider thequality of the effort as well as its intensity.

Need means some internal state that makes certain outcomes appears attractive. An unsatisfiedneed creates tension that stimulates drives within the individual.

So we can say that motivated employees are in a state of tension. To relieve this tension

they exert effort. The greater the tension, the higher the effort level. If this effort

successfully leads to the satisfaction of the need, tension is reduced.

Theories of Motivation

Hierarchy of needs TheoryPerhaps this is the most well known theory of motivation. Its exponent is Abraham

Maslow. It is also known as Maslows theory of motivation. He stated that within every

human being there exists a hierarchy of five needs. These needs are:

1. PsychologicalIncludes hunger, thirst, shelter, sex and other bodily needs.2. Safety- Includes security and protection from physical and emotional harm.3. Social-Includes affection, belongingness, acceptance and friendship.4. Esteem- includes internal esteem factors such as self-respect, autonomy and

achievement and external esteem factors such as status, recognition and attention.

5. Self-actualization- The drive to become what one is capable of becoming includesgrowth achieving ones potential and self-fulfillment.


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Maslow says, as each of these needs becomes substantially satisf ied, the next need

becomes dominant.

Maslow separated the five needs into higher and lower orders. Psychological and safety

needs were descri bed as lower-order and social esteem, and self -actual isation as hi gher

order needs.

Theory X and Theory Y

Douglas McGregorproposed two distinct views of human beings. One basically negative,

labeled theory X, and other basically positive, labeled theory Y. After viewing the way inwhich managers dealt with employees, McGregorconcluded that a managers view of the

nature of human beings is based on a certain grouping of assumptions and that he or she

tends to mould his or her behaviour toward subordinates according to these assumptions.

Under Theory X, the four assumptions held by managers are:

1. Employees inherently dislike work and whenever possible, will attempt to avoid it.2. Since employees dislike work, they must be coerced, controlled, or threatened with

punishment to achieve goals.

3. Employees will avoid responsibilities and seek formal direction whenever possible.4. Most workers place security above all other factors associated with work and will

display little ambition

McGregor also listed the four positive assumptions that he called Theory Y.

1. Employees can view work as being as natural as rest or play.2.

People will exercise self-direction and self-control if they are committed to theobjectives.

3. The average person can learn to accept, even seek responsibility.4. The ability to make innovative decisions is widely dispersed throughout the population

and is not necessarily the right of managers alone.

Theory X assumes that lower-order needs dominate individuals. Theory Y assumes that

higher-orders needs dominate individuals.

Motivation- Hygiene Theory

Frederick Herzbergproposed hygiene theory. According to Herzberg, the factors leadingto job satisfaction are separate and distinct from those that lead to job dissatisfaction.

Therefore, managers who seek to eliminate factors that create job dissatisfaction can bring

about peace, but not necessarily motivation. Herzberg divided his theory mainly around

two factors - Hygiene and Motivator factors.


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Characteri stics such as company policy and admin istration, supervision, in terpersonal

relations, working conditions, and salary have been characterized by Herzberg as

hygiene factors. When they are inadequate, people wil l be dissatisf ied with their job.

Herzberg emphasizes on moti vating factors such as achi evement, recognition , the work

itself , responsibi li ty and growth.

Hygiene factors are those whose presence is a must. Its presence does not motivate butabsence creates dissatisfaction.

Motivators are those, which directly encourage, motivate people to work.

* LearningsWhy motivators become hygiene factors after sometime?

McClellands Theory of NeedsMcClellands theory of needs focuses on three needs: Achievement, Power and

Affiliation . They are defined as follows.

1. Need for achievement:The drive to excel, to achieve in relation a set of standards, tostrive to succeed.

2. Need for power. The need to make others behave in a way that they would not havebehaved otherwise.

3. Need for affi li ation: The desire for friendly and close interpersonal relationships.As described above, some people who have a compelling drive to succeed are striving for

personal achievement rather than the rewards of success per se. They have a desire to do

something better or more efficiently than it has been done before. This drive is theachievement need.

The need for power is the desire to have impact, to be influential, and to control others.Individuals high in this category enjoy being in-charge, strive for influence over others,

prefer to be placed into competitive and status oriented situations, and tend to be more

concerned with prestige and gaining influence over others than with effective performance.

The third need stated by McClelland is Affiliation. Affiliation can be viewed as the desire

to be liked and accepted by others. Individuals with a high affiliation motive strive for

friendship, prefer co-operative situations rather than competitive ones, and desirerelationships involving a high degree of mutual understanding.

Vrooms Expectancy TheoryThe expectancy theory argues that the strength of a tendency to act in a certain way

depends on the strength of an expectation that the act will be followed by a given outcome

and on the attractiveness of that outcome to the individual. It includes three variables orrelationships.


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Attractiveness: The importance that the individual places on the potential outcome or

reward that can be achieved on the job. This considers the unsatisfied needs of theindividual.

Performance-reward linkage: The degree to which the individual believes thatperforming at a particular level will lead to the attainment of a desired outcome.

Effort-performance linkage: The probability perceived by the individual that exerting a

given amount of effort would lead to performance.

* Behavior rewarded is behavior repeated. Rewarded behavior i s repeated again.

Ten Types of Motivators:

1. Financial (Related to monetary aspects)

2. Non-Financial (Related to non-monetary aspects like Recognition, Status, Respect)

3. Internal (Factors that drive you from within)

4. External (Factors that are outside what we work for or influenced by)

5. Open (What we disclose? Factors that can be easily identified)

6. Hidden (What we do not disclose? But still aim for secretively)

7. Positive (Reward, incentives, promotion, commission)

8. Negative (Fear, punishment, demotion, reprimand)

9. Ethical (virtues of ethicshonesty, integrity etc.)10. Unethical (controversial and debatable factor that questions basic assumption of Human

Behavior. Is corruption a source of motivator? If dishonesty is rewarded can it be a source

of motivator.


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(X)

MORALE

Morale is a state of mi nd and emotions aff ecting the wil li ngness and attitude to work, which,

in turn, effect the achievement of individuals and organi sational objectives.

Motivation is associated with the force within an individual. Morale is associated with a group

and its influence on organisational work.

Morale is a feeling of enthusiasm, zeal and confidence in every individual or group that they

will be able to cope up with the tasks assigned to them.

It is very difficult to quantify morale. Normally, it is associated with the concept of high or

low morale.

Indicators of low morale

Employee unrests.

Absenteeism and tardism.

Employee turnover.

Frequent complaints and grievances.

Fatigue and monotony.

Overall disinterest in the work.

Organisational politics.

Employees being critical of the organisation.

Unproductive gossip.

Lack of discipline.


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Measures to improve morale

It is said that demoralization is an effect of organisational policies, rules systems, certaininjustices meted out to employees and their reflection on others.

The following measures are steps to be initialized by management to improve morale in anorganisation.

Transparency in decisionmaking.

Grievance handling systems.

Employee participation in decision-making.

Job enrichment.

Brain storming and organisational assessment programmes (where employees get anopportunity to express their views and concerns about the organisation.)

Positive human relations initiatives such as financial and non-financial incentives andproper reward systems.

Job relation.

Delegation of authority and responsibility.

Open communication system.

Commitment of top management towards vision and mission statements of the

company.

Conclusion

It is said that individuals are very sensitive towards organisational surroundings. The acts of

courage, confidence, resolution and resilience are all a reflection of the attitudes of the top

management. Individual perception of benefits to be received and organisational objectives arethe two balancing factors, which should be considered while discussing the concept of

MORALE.

principles & practices of management (ssbm)-course material

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