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UNIT 4: LEADING

LEADERSHIP: INTRODUCTION, DEFINITIONS.

The success of every industrial enterprise is dependent upon the quality of its leadership. For example, the Tata Iron & Steel Co., Jamshedpur or the Ford Motor Co., USA, would not have attained their present success but for the able leadership of J.N. Tata and Henry Ford, respectively. In a business enterprise, several tasks, such as determining the objectives of the enterprise, designing the methods to achieve them, directing and coordinating the activities of various departments, etc. can be successfully performed only if there is able leadership.

Some definitions of leadership:

1] “The ability of a superior to influence the behavior of his subordinates and persuade them to follow a particular course of action”. (Chester Barnard)

2] “The activity of influencing people to strive willingly for mutual objectives”. (George Terry)

3] “A leader is one who guides and directs other people. He must give effective direction and purpose”.

(Allen)

4] “The ability to secure desirable actions from a group of followers voluntarily without the use of force”.

(Alford and Beatty)

5] “The ability to persuade others to seek defined objectives enthusiastically”. (Keith Davis)

An analysis of these definitions brings out certain features of leadership which are as follows:

1. Leadership is a continuous process of behavior; it is not a one-shot activity.

2. Leadership may be seen in terms of relationship between a leader and his followers (individuals and/or groups) which arises out of their functioning for common goals.

3. By exercising his leadership, the leader tries to influence the behavior of individuals or group of individuals around him to achieve common goals.

4. The followers work willingly and enthusiastically to achieve those goals. Thus, there is no coercive force which induces the followers to work.

FUNCTIONS OF A LEADER:

There is no single set of functions that are performed by all leaders. The functions a leader performs depend on a number of factors such as type of organization, nature and size of the group, personal characteristics of the leader, etc. The following is a list of major functions performed by leaders: [1] Goal-setter, [2] Planner, [3] Executive, [4] Expert, [5] Spokesman, [6] Controller of internal relationships, [7] Administrator of rewards and punishments, [8] Arbitrator and mediator, [9] Role model, [10] Symbol of the group, and

[11] Father figure.

LEADERSHIP MODELS/THEORIES:

Researchers have developed various models/theories over the years to explain the leadership process. A few major ones are: [1] Trait theory, [2] Leadership styles based on authority, [3] Managerial grid,

[4] Continuum approach, [5] Feidler’s contingency model, and[6] Path-goal theory. These are discussed below:

1. TRAIT APPROACHES TO LEADERSHIP

Trait is defined as a relatively enduring quality of an individual. The trait approach seeks to determine ‘what makes a successful leader’ from the leader’s personal characteristics.

Prior to 1950, studies of leadership were based largely on an attempt to identify the traits that leaders possess. Starting with the "great man" theory that leaders are born and not made, a belief dating back to the ancient Greeks and Romans, researchers have tried to identify the physical, mental, and personality traits of various leaders.

The major traits identified by researchers in the course of their leadership studies include the following: physical factors such as height, weight, physique, energy, health, appearance; mental qualities such as intelligence, alertness, administrative ability; personality characteristics such as self-confidence, initiative, persistence, ambition, cheerfulness, enthusiasm, decisiveness; and social characteristics such as sociability, adaptability, dominance, aggressiveness, etc.

These various traits can be classified as innate and acquired traits. Innate traits are those which are possessed by individuals since their birth. These traits are natural and God-gifted. Acquired traits are those which can be acquired or increased through learning, imitating, training, and other such processes.

The traitapproach has not been very fruitful in explaining leadership. Not all leaders possess all the traits, and many non-leaders may possess most them.

2. LEADERSHIP STYLES BASED ON USE OF AUTHORITY

Some earlier explanations of leadership styles classified them on the basis of how leaders use their authority. Leaders were seen as applying three basic styles. The autocratic leader commands and expects compliance, is dogmatic and positive, and leads by the ability to withhold or give rewards and punishment. The democratic, or participative leader consults with subordinates on proposed actions and decisions and encourages participation from them. This type of leader ranges from the person who does not take

action without subordinates' concurrence to the one who makes decisions but consults with subordinates before doing so. The free-rein leader uses his or her power very little, if at all, giving subordinates a high degree of independence in their operations. Such leaders depend largely on subordinates to set their own goals and the means of achieving them, and they see their role as one of aiding the operation of followers by furnishing them with information and acting primarily as a contact with the group's external environment.

There are variations within this simple classification of leadership styles. Some autocratic leaders are seen as "benevolent autocrats." Although they listen considerately to their followers' opinion before making a decision, the decision is their own. They may be willing to hear and consider subordinates' ideas and concerns, but when a decision is to be made, they may be more autocratic than benevolent.

A variation of the participative leader is the person who is supportive. Leaders in this category may look upon their task as not only consulting with followers and carefully considering their opinions but also doing all they can to support subordinates in accomplishing their duties.

The use of any style will depend on the situation. A manager may be highly autocratic in an emergency; one can hardly imagine a fire chief holding a long meeting with the crew to consider the best way of fighting a fire. Managers may also be autocratic when they alone have the answers to certain questions.

A leader may gain considerable knowledge and a better commitment on the part of persons involved by consulting with subordinates. Furthermore, a manager dealing with a group of research scientists may give them free rein in developing their inquiries and experiments. But the same manager might be quite autocratic in enforcing a rule stipulating that employees wear protective covering when they are handling certain potentially dangerous chemicals.

3. MANAGERIAL GRID

A well-known approach to defining leadership styles is the managerial grid, developed some years ago by Robert Blake and Jane Mouton. Building on previous research that showed the importance of a manager's having concern both for production and for people, Blake and Mouton devised a clever device to dramatize this concern. This grid, shown in the figure, has been used throughout the world as a means of training managers and of identifying various combinations of leadership styles.

Grid Dimensions: The grid has two dimensions: concern for people and concern for production. As Blake and Mouton have emphasized, the phrase "concern for" is meant to convey "how" managers are concerned about production or "how" they are concerned about people, and not such things as "how much" production they are concerned about getting out of a group.

"Concern for production" includes the attitudes of a supervisor toward a wide variety of things, such as the quality of policy decisions, procedures and processes, creativeness of research, quality of staff services, work efficiency, and volume of output. "Concern for people" is likewise interpreted in a broad way. It includes such elements as degree of personal commitment toward goal achievement, maintenance of the self-esteem of workers, placement of responsibility on the basis of trust rather than obedience, provision of good working conditions, and maintenance of satisfying interpersonal relations.

Four Extreme Styles: Blake and Mouton recognize four extremes of style. Under the 1.1 style (referred to as "impoverished management"), managers concern themselves very little with either people or

production and have minimum involvement in their jobs; to all intents and purposes, they have abandoned their jobs and only mark time or act as messengers communicating information from superiors to subordinates. At the other extreme are the 9.9 managers, who display in their actions the highest possible dedication both to people and to production. They are real "team managers" who are able to mesh the production needs of the enterprise with the needs of individuals.

Another style is 1.9 management (called "country club management" by some), in which managers have little or no concern for production but are concerned only for people. They promote an environment in which everyone is relaxed, friendly, and happy and no one is concerned about putting forth coordinated effort to accomplish enterprise goals. At another extreme are the 9.1 managers (sometimes referred to as "autocratic task managers") who are concerned only with developing an efficient operation, who have little or no concern for people, and who are quite autocratic in their style of leadership.

By using these four extremes as points of reference, every managerial technique, approach, or style can be placed somewhere on the grid. Clearly, 5.5 managers have medium concern for production and for people. They do not set goals too high, and they are likely to have a rather benevolently autocratic attitude toward people.

The managerial grid is a useful device of identifying and classifying managerial styles, but it does not tell us why a manager falls into one part or another of the grid. To determine the reason, one has to look at underlying causes, such as the personality characteristics of the leader or the followers, the ability and training of managers, the enterprise environment, and other situational factors that influence how leaders and followers act.

4. LEADERSHIP AS A CONTINUUM

The adaptation of leadership styles to different contingencies has been well characterized by Robert Tannenbaum and Warren H. Schmidt, developers of the leadership continuum concept. They see leadership as involving a variety of styles, ranging from one that is highly boss-centered to one that is highly subordinate-centered. The styles vary with the degree of freedom a leader or manager grants to subordinates. Thus, instead of suggesting a choice between the two styles of leadership—authoritarian or democratic—this approach offers a range of styles, with no suggestion that one is always right and another is always wrong.

The continuum theory recognizes that which style of leadership is appropriate depends on the leader, the followers, and the situation. The various points along the spectrum/continuum are as follows:

1. The leader makes the decision and announces it; 2. The leader “sells” his decision, i.e. persuades his subordinates to accept it; 3. The leader presents his ideas, invites questions; 4. The leader presents tentative decisions, subject to change; 5. The leader presents the problem, gets suggestions and then makes his decision; 6. The leader defines the problem and the limits of action and lets the group make a decision; and

7. The leader permits the group to make decisions within limits defined by the situation.

5. FEIDLER’S CONTINGENCY MODEL

Although their approach to leadership theory is primarily one of analyzing leadership style, Fred E. Fiedler and his associates at the University of Illinois have suggested a contingency theory of leadership. The theory holds that people become leaders not only because of the attributes of their personalities but also because of various situational factors and the interactions between leaders and group members.

Critical dimensions of the leadership situation: On the basis of his studies, Fiedler described three critical dimensions of the leadership situation that help determine what style of leadership will be most effective:

1. Position Power This is the degree to which the power of a position, as distinguished from other sources of power (such as personality or expertise) enables a leader to get group members to comply with directions; in the case of managers, this is the power arising from organizational authority.

2. Task Structure This is the extent to which tasks can be clearly spelled out in terms of task objectives, processes, relationship with other tasks, and people held responsible for them. If tasks are clear (rather than vague and unstructured), the quality of performance can be more easily controlled and group members can be held more definitely responsible for performance.

3. Leader-Member Relations It has to do with the extent to which group members like, respect and trust a leader and are willing to follow that leader.

All these situational variables taken together may define the situation to be favorable or unfavorable. The favorableness or unfavorableness of the situation is presented in the following figure.

A very favorable situation is one [cell 1] where leader-member relations are good, task is highly structured, and the leader has enormous position power to influence his subordinates. At the other extreme, a very unfavorable situation is one [cell 8] where leader-member relations are poor, task is highly unstructured, and leader’s position power is weak. Between these two extremes, the degree of favorableness/unfavorableness varies.

1. Task-directed leadership style tends to be better in group situations that are either very favorable or very unfavorable to the leader.

2. Human relations-oriented leadership style tends to be better in group situations that are intermediate in favorableness.

6. PATH-GOAL THEORY OF LEADERSHIP

The path-goal theory suggests that the main function of the leader is to clarify and set goals with subordinates, help them find the best path for achieving the goals, and remove obstacles. Proponents of this approach have studied leadership in a variety of situations. The theory builds on various motivational and leadership theories of others.

The factors contributing to effective leadership are: (1) characteristics of subordinates, such as their needs, self-confidence, and abilities; and (2) the work environment, including such components as the task, the reward system, and the relationship with co-workers

On this basis, leader behavior is categorized into four groups:

1. Supportive leadership gives consideration to the needs of subordinates, shows a concern for their well-being, and creates a pleasant organizational climate. It has the greatest impact on subordinates' performance when they are frustrated and dissatisfied.

2. Participative leadership allows subordinates to influence the decisions of their superiors and can result in increased motivation.

3. Directive leadership gives subordinates rather specific guidance and clarifies what is expected of them; this includes aspects of planning, organizing, coordinating and controlling by the leader.

4. Achievement-oriented leadership involves setting challenging goals, seeking improvement of performance, and having confidence that subordinates will achieve high goals.

Rather than suggesting that there is one best way to lead, this theory suggests that the appropriate style depends on the situation. Ambiguous and uncertain situations can be frustrating for subordinates, and a more task-oriented style may be called for. In other words, when subordinates are confused, then the

leader may tell them what to do and show them a clear path to goals. On the other hand, for routine tasks, employees want the leader to stay out of their way because the path is already clear enough.

The key to the theory is that the leader influences the paths between behavior and goals. The leader can do this by defining positions and task roles, by removing obstacles to performance, by enlisting the assistance of group members in settings goals, by promoting group cohesiveness and team effort, by increasing opportunities for personal satisfaction in work performance, by reducing stresses and external controls, by making expectations clear, and by doing things that meet people's expectations.

MOTIVATION

Human motives are based on needs, whether consciously or subconsciously felt. Some are primary needs, such as the physiological requirements for water, air, food, sleep, and shelter. Other needs may be regarded as secondary, such as self-esteem, status, affiliation with others, affection, accomplishment, and self-assertion. Naturally, these needs vary in intensity and over time among different individuals.

Motivation is a general term applying to the entire class of drives, desires, needs, wishes, and similar forces. Managers, as a part of motivating their staff, do all such things which they hope will satisfy these drives and desires and induce the subordinates to act in a desired manner.

Need-Want-Satisfaction Chain:

Motivation involves a chain reaction: Felt needs give rise to wants or goals sought, which cause tensions (that is, unfulfilled desires), which give rise to actions toward achieving goals, which finally result in satisfaction.

MOTIVATION THEORIES:

Various theories have been developed to explain motivation in humans. Popular among these are:

[1] Maslow’s Hierarchy of Needs Theory, [2] Herzberg’s Motivation-Hygiene Theory, [3] Vroom’s Expectancy Theory, [4] Porter and Lawler Model, [5] Adams’ Equity Theory, [6] Skinner’s Behavior Modification Theory, [7] McClelland’s Needs Theory, [8] Alderfer’s ERG Theory, and [9] McGregor’s Theory X and Theory Y. These are briefly described below:

1. MASLOW’S HIERARCHY OF NEEDS THEORY

One of the most widely mentioned theories of motivation is the hierarchy of needs theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the form of a hierarchy, ascending from the lowest to the highest, and he concluded that when one set of needs is satisfied, the next higher level need gets activated.

The basic human needs placed by Maslow in an ascending order of importance are:

1. Physiological Needs These are the basic needs for sustaining human life itself, such as food, water, warmth, shelter, and sleep. Maslow felt that until these needs are satisfied to the degree necessary to maintain life, other needs will not motivate people.

2. Security or Safety Needs These are the needs to be free of physical danger and of the fear of losing a job property, food, or shelter.

3. Affiliation or Social Needs Since people are social beings, they need to belong, to be accepted by others. It includes friendship, the need to love and be loved, socializing, etc.

4. Esteem Needs Once people begin to satisfy their need to belong, they tend to want to be held in esteem both by themselves and by others. This kind of need produces such satisfactions as respect, power, prestige, status, and self-confidence.

5. Self-actualizationNeeds This as the highest need in the hierarchy. It is the desire to become what one is capable of becoming—to fully realize one's potential and to accomplish what one is capable of achieving.

Maslow suggests that the various levels are overlapping, each higher-level need emerging before the lower-level need has been completely satisfied. Since one need does not disappear when another emerges, all needs tend to be partially satisfied in each area. When the peak of a need is passed, that need ceases to be the primary motivator. The next level need then begins to dominate.

2. HERZBERG’S MOTIVATION-HYGIENE THEORY

Maslow's need approach has been considerably modified by Frederick Herzberg. His research purports to find a two-factor theory of motivation. In one group of needs are such things as company policy and administration, supervision, working conditions, interpersonal relations, salary, status, and job security. These were found by Herzberg and his associates to be only dissatisfiers and not motivators. Their existence does not motivate in the sense of yielding satisfaction; their lack of existence would, however, result in dissatisfaction. Herzberg called them maintenance, hygiene or job context factors.

In the second group, Herzberg listed certain satisfiers—and therefore motivators—all related to job content. They include achievement, recognition, challenging work, advancement, and growth in the job. Their existence will yield feelings of satisfaction but their absence will not lead to dissatisfaction. The satisfiers and dissatisfiers identified by Herzberg are similar to the factors suggested by Maslow: the dissatisfiers correspond to Maslow’s lower order needs (physiological, safety and social needs) while the satisfiers correspond to Maslow’s higher order needs (esteem and self-actualization needs).

The first group of factors (the dissatisfiers) will not motivate in an organization; yet they must be present, or dissatisfaction will arise. The second group, or the job content factors, Herzberg found to be the real motivators because they have the potential of yielding a sense of satisfaction.

3. VROOM’S EXPECTANCY THEORY

Another approach to motivation is the expectancy theory of the psychologist Victor H. Vroom. He holds that people will be motivated to do things to reach a goal if they believe in the worth of that goal and if they can see that what they do will help them in achieving it. Vroom's theory is that people's motivation toward doing anything will be determined by the value they place on the outcome of their effort (whether positive or negative), multiplied by the confidence they have that their efforts will materially aid in achieving a goal. In other words, Vroom makes the point that motivation is a product of the anticipated worth that an individual places on a goal and the chances he or she sees of achieving that goal. Using his own terms, Vroom's theory may be stated as

Force = valence x expectancy

Where force is the strength of a person motivation, valence is the strength of an individual's preference for an outcome, and expectancy is the probability that a particular action will lead to a desired outcome.

When a person is indifferent about achieving a certain goal, a valence of zero occurs; there is a negative valence when the person would rather not achieve the goal. The result of either would be, of course, no motivation. Likewise, a person would have no motivation to achieve a goal if the expectancy were zero or negative. Hence the force exerted to do something will depend on both valence and expectancy. Moreover, a motive to accomplish some action might be determined by a desire to accomplish something else. Vroom identified these as first-level and second-level outcomes. For example, a person might be willing to work hard to please his boss (first-level outcome) in order to get higher pay (second-level outcome). Or a manager might be willing to work hard to achieve company goals (first-level outcome) for the sake of getting a promotion (second-level outcome). Vroom used the term ‘instrumentality’ to indicate the extent to which the achievement of first-level outcomes lead to the achievement of second-level outcomes.

4. PORTER AND LAWLER MODEL

Lyman W. Porter and Edward E. Lawler III derived a substantially more complete model of motivation, built in large part on Vroom’s expectancy theory. In their study, they have applied this model primarily to managers.

As the model indicates, the amount of effort (the strength of motivation and energy exerted) depends on the value of a reward plus the amount of energy a person believes is required and the probability of receiving the reward. The perceived effort and probability of actually getting a reward are, in turn, also influenced by the record of actual performance. Clearly, if people know they can do a job or if they haw done it before, they have a better appreciation of the effort required and know better the probability of rewards.

Actual performance in a job (the doing of tasks or the meeting of goals) is determined principally by effort expended. But it is also greatly influenced by an individual's ability (knowledge and skills) to do the job and by his or her perception of what the required task is (the extent to which the person understands the goals, required activities, and other elements of a task). Performance, in turn, is seen as leading to intrinsic rewards (such as a sense accomplishment or self-actualization) and extrinsic rewards (such as working conditions and status). These rewards, tempered by what the individual sees as equitable, lead to satisfaction. But performance also influences sensed equitable rewards. Understanding what the individual sees as a fair reward for effort will necessarily affect the satisfaction derived. Likewise, the actual value of rewards will be influenced by satisfaction.

5. ADAMS’ EQUITY THEORY

An important factor in motivation is whether individuals perceive the reward structure as being fair. One way of addressing this issue is through equity theory, which refers to an individual's subjective judgments about the fairness of the reward she or he got, relative to the inputs (which include many factors such as effort, experience, education, and so on), in comparison with the rewards of other. J. Stacy Adams has formulated the equity theory. The essential aspects of the equity theory may be shown as follows.

Outcomes by a person = Outcomes by another person

Inputs by a person Inputs by another person

There should be a balance of the outcomes-inputs relationship for one person in comparison with that for another person.

If people feel they are inequitably rewarded, they may be dissatisfied, reduce the quantity or quality of output, or leave the organization. They also can ask for a greater reward. If people perceive the rewards as equitable, they probably will continue at the same level of output. If people think the rewards are greater than what is considered equitable, they may work harder. It is also possible that some may discount the reward.

The impact of inequity on a person is as follows:

1. Perceived inequity creates tension in the person.

2. The amount of tension is proportional to the magnitude of the inequity.

3. The tension created in the person will motivate him to reduce it.

4. The strength of the motivation to reduce inequity is proportional to the perceived inequity.

6. SKINNER’S REINFORCEMENT or BEHAVIOR MODIFICATION THEORY

This theory has developed out of researches done by B.F. Skinner. According to this theory, people behave the way they do because, in past circumstances, they have learned that certain behaviors are associated with pleasant outcomes and certain other behaviours are associated with unpleasant outcomes. Because people generally prefer pleasant outcomes, they are likely to repeat behaviour that they have learned will have pleasant consequences. For example, people in an organisation are likely to obey a manager's instruction because they have learned at home and at school that obedience to authority leads to praise and disobedience leads to punishment. Thus, the frequency of the various kinds of behaviour in the organisation can be seen as contingent on the immediate consequences of these behaviours.

The consequences that increase the frequency of a behaviour are positive reinforcement (e.g., praise or monetary reward) or negative reinforcement (i.e., escape from some aversive situation). An example of negative reinforcement might be a manager who requires all subordinates to attend an early morning staff meeting whenever performance of the organisation falls below a certain level. Subordinates would then work very hard to avoid the unpleasant early morning meetings and strive for a high level of performance.

The consequences that decrease the frequency of a behaviour are extinction (i.e., ignoring the behaviour) and punishment (e.g. reprimand, fine, frown etc.). When reward or positive reinforcement is being used to increase the frequency of a desired behaviour the important point to be considered by the manager is the frequency of reward. Rewards can be administered continuously—every desired behaviour can be reinforced—or they can be administered on an intermittent basis. Normally a manager begins by reinforcing every desired behaviour. A secretary may be complemented every time he types an error-free letter. Then as the behaviour becomes permanent, the rewards are gradually tapered off to an intermittent or random basis. Instead of praising the secretary for every error-free letter, the manager may begin skipping now and then.

7. McCLELLAND'S NEEDS THEORY

David C. McClelland has contributed to the understanding of motivation by identifying three types of basic motivating needs. He classified them as the need for power (n/PWR), need for affiliation (n/AFF), and

need for achievement (n/ACH).

Need for Power

McClelland and other researchers have found that people with a high need for power have a great concern for exercising influence and control. Such individuals generally are seeking positions of leadership; they are frequently good conversationalists, though often argumentative; they are forceful, outspoken, hard-headed, and demanding; and they enjoy teaching and public speaking.

Need for Affiliation

People with a high need for affiliation usually derive pleasure from being loved and tend to avoid the pain of being rejected by a social group. As individuals, they are likely to be concerned with maintaining pleasant social relationships, to enjoy sense of intimacy and understanding, to be ready to console and help others in trouble, and to enjoy friendly interaction with others.

Need for Achievement

People with a high need for achievement have an intense desire for success and an equally intense fear of failure. They want to be challenged, and they set moderately difficult (but not impossible) goals for themselves. They take a realistic approach to risk; they are not likely to be gamblers but, rather, prefer to analyze and assess problems, assume personal responsibility for getting a job done, and like specific and prompt feedback on how they are doing. They tend to be restless, like to work long hours, do not worry unduly about failure if it does occur, and tend to like to run their own shows.

The implication of this theory is that all three drives—power, affiliation, and achievement—are of relevance to management, since all must be recognized to make an organized enterprise work well. Because any organized enterprise and every department in it represents groups of individuals working together to achieve goals, organizations can improve the selection and placement processes if the needs of employees can be accurately assessed.

8. ALDERFER'S ERG THEORY

Alderfer has provided an extension of the Maslow's need hierarchy and Herzberg's two-factor theory of motivation, particularly the former. Like the previous theories, Alderfer believes that there is a value in categorising needs and that there is a basic distinction between lower-order needs and higher-order needs. Based on the empirical evidences, he has found that there seems to be some overlapping between physiological, security and social needs. Also the lines of demarcation between social, esteem and achievement needs are not clear. Based on these observations, Alderfer has categorised the various needs into three categories; existence needs, relatedness needs, and growth needs. The first three letters of these needs are used to call it ERG theory.

Existence Needs. Existence needs include all needs related to physiological and safety aspects of an individual. Thus, existence needs group physiological and safety needs of Maslow into one category as these have similar impact on the behavour of the individual.

Relatedness Needs. Relatedness needs include all those needs that involve relationship with other people whom the individual cares. Relatedness needs cover Maslow's social needs and that part of esteem needs which is derived from the relationship with other people.

Growth Needs. Growth needs involve the individual making creative efforts to achieve full potential in the existing environment. These include Maslow's self-actualisation need as well as that part of the esteem need which is internal to the individual like feeling of being unique, feeling of personal growth, etc.

ERG theory offers the following propositions so far as satisfaction of various needs is concerned:

1. The three need categories form a hierarchy only in the sense of decreasing concreteness. As people move from a focus on existence to relatedness to growth needs, the ways in which they can satisfy those needs become increasingly abstract.

2. The rise in the level of satisfaction of any lower-order need may result in decrease in its importance. Its place is taken by another need. Thus, the individual is able to move to become productive and creative, and as he moves to this level, he sets a higher goal for himself.

3. People are likely to try to satisfy their most concrete needs first and then, they move on to the abstract needs. In this way, progression of need satisfaction of ERG theory is similar to Maslow's need hierarchy, that is, people first satisfy their lower needs and gradually progress to the satisfaction of higher needs in that order. However, Alderfer goes one step further. He argues that alongwith satisfaction-progression, people can experience frustration-regression, that is, if people cannot satisfy their needs at a given level of abstraction, they 'drop back' and again focus on more concrete needs.

9. McGREGOR'S THEORY X AND THEORY Y

The management's action of motivating human beings in the organisation, according to Douglas McGregor, involves certain assumptions, generalizations and hypotheses relating to human behaviour and human nature. They serve the purpose of predicting human behaviour. McGregor has characterised these assumptions in two opposite views, termed Theory X and Theory Y.

Theory X. This is the traditional theory of human behaviour, In this theory, McGregor has certain assumptions about human behaviour. These assumptions are as follows:

1. Management is a process of directing employees’ efforts, motivating them, controlling their actions, modifying their behaviour to fit the needs of the organisation.

2. Without this active intervention by management, people would be passive— even resistant—to organisational needs. They must be persuaded, rewarded, punished, controlled, and their activities must be directed.

3. The average man is by nature indolent—he works as little as possible.

4. He lacks ambition, dislikes responsibility, prefers to be led.

5. He is inherently self-centered, indifferent to organisational needs.

6. He is, by nature, resistant to change.

7. He is gullible, not very bright, the ready dupe of the charlatan and the demagogue.

These assumptions about human nature are negative in their approach, however much organisational processes have developed on these assumptions. Managers subscribing to these views about human nature attempt to structure, control and closely supervise their employees. They feel that external control is most appropriate for dealing with irresponsible and immature employees.

Theory Y. The assumptions of Theory Y are described by McGregor in the following words:

1. The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work. Depending upon controllable conditions, work may be a source of satisfaction or a source of punishment.

2. External control and the threat of punishment are not the only means for bringing about effort towards organisational objectives. Man will exercise self-direction and self-control in the service of objectives to which he is committed.

3. Commitment to objectives is a function of the reward associated with their achievement. The most significant of such awards, e.g. the satisfaction of ego and self-actualisation needs, can be a direct product of effort directed towards organisational objectives.

4. The average human being learns under proper conditions not only to accept, but to seek responsibility. Avoidance of responsibility, lack of ambition, and emphasis on security are generally consequences of experience, not inherent human characteristics.

5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organisational problems is widely, not narrowly, distributed in the population.

The assumptions of Theory Y suggest a new approach in management. It emphasises on the cooperative endeavour of management and employees. The attempt is to get maximum output with minimum amount of control and direction. Generally, no conflict is visible between organisational goals and individual goals. Thus, the attempts of employees which are in their best interests are also in the interests of the organisation.

COMMUNICATION

Communication has been variously defined by a number of writers. According to Newman and Summer, it is an exchange of facts, ideas, opinions or emotions by two or more persons. Alien Louis defines it as the sum of all the things one person does when he wants to create understanding in the mind of another. Simply stated, communication means the process of passing information and understanding from one person to another. A proper understanding of information is one very important aspect of communication. If the information is not understood by the receiver in the same meaning in which its sender wants him to understand it, the purpose of communication is defeated. This may result in confusion, chaos and organisational inefficiency, leading to non-fulfillment of business goals. In short, communication is not merely transmission of information from one person to another but also correct interpretation and understanding of the information. It is not to get something off the mind of the person transmitting it, but to get something into the mind of the person receiving it.

Purpose of Communication

In its broadest sense, the purpose of communication in an enterprise is to effect change—to influence action toward the welfare of the enterprise. Communication is essential for the internal functioning of enterprises, because it integrates the managerial functions. Especially, communication is needed to (1) establish and disseminate the goals of an enterprise, (2) develop plans for their achievement, (3) organize human and other resources in the most effective and efficient way, (4) select, develop, and appraise members of the organization, (5) lead, direct, motivate, and create a climate in which people want to contribute, and (6) control performance.

Communication not only facilitates the managerial functions, but also relates an enterprise to its external environment. It is through information exchange that managers become aware of the needs of customers, the availability of suppliers, the claims of stockholders, the regulations of governments, and the concerns of a community. It is through communication that any organization becomes an open system interacting with its environment.

COMMUNICATION PROCESS

Communication has been defined as a process. The term process refers to identifiable flow of information through interrelated stages of analysis directed towards the achievement of an objective. The various elements of the communication process are sender, message, encoding, channel, receiver, decoding, understanding and feedback.

Sender. Sender of the message is the person who intends to make contact with the objective of passing the message to other persons. In organisational context, sender may be a superior, a subordinate, a peer, or any other person. The organisational position of the sender determines the direction of flow of communication in an organisation.

Message. This is the subject-matter of the communication which is intended to be passed to the receiver from the sender. The message may be in the form of thoughts, ideas, opinions, feelings, views, suggestions, orders, etc.

Encoding. Since the subject-matter of communication, viz. thought, idea, etc., is abstract and intangible, its transmission requires the use of certain symbols such as words, pictures, gestures, etc. The process of converting the message into communication symbols is known as encoding.

Channel. Message encoded into symbols is transmitted by the sender through a channel like written form, personal contact, phone call, e-mail, etc. depending on the two parties—the sender and receiver.

Receiver. Receiver is the person to whom the symbols are transmitted. Like sender, he may be a superior, subordinate, peer, or any other person in the organisation.

Decoding. Decoding is the reverse of encoding. The receiver receives the subject matter of communication in the form of communication symbols in which the sender has encoded his message. The receiver decodes these symbols into message.

Understanding. Interpreting, obtaining meaning from the message communicated.

Feedback. Feedback is necessary to ensure that the receiver has received the message and understood it in the same sense as the sender intended. The sender can never be sure whether or not his message has been effectively encoded, transmitted, received, decoded, and understood until it is confirmed by feedback.

TYPES OF COMMUNICATION

Communication can be classified into different types: [1] Formal communication, [2] Informal communication, [3] Downward communication, [4] Upward communication, [5] Horizontal communication, [6] Diagonal communication, [7] Oral communication, [8] Written communication, [9] Electronic communication, and [10] Non-verbal communication.

Formal communication:

Much of the communication in an organization is formal communication. It flows in formally established channels and is concerned with work-related matters. All orders, instructions and decisions are communicated to the subordinates through this channel. Formal communications flow in three directions: downward, upward and laterally between departments.

Downward Communication:

Communications which flow from superiors to subordinates are known as downward communications. These communications are the medium through which the superior: 1. directs the efforts of his subordinates;

2. defines the goals of the organisation and the sub-group; 3. tells the subordinates what is expected of them, what resources are available, how well they are doing, etc.; and 4. administers reward and punishment.

Examples of downward communications are job instructions, policy statements, procedures and company publications.

Upward Communication:

Communications which flow from the subordinates to superiors are called upward communications. These communications generally act as a feedback. They enable the management to know how far downward communications have been understood and carried out. They also help the management to know the grievances or suggestions of the subordinates and the way in which the management is seen by the subordinates.

Horizontal Communication:

These are also known as lateral or cross-wise communications. They refer to communications among the subordinates who are working on the same level of the organisation. Such communications help coordinate the activities of different departments. The production foreman and the maintenance foreman communicate directly without going through their managers. In this way, lateral communication avoids the much slower procedure of directing communications through a common superior.

A variation of horizontal communication is Diagonal communication in which persons in different departments and at different levels communicate. Its occurrence is less frequent.

Oral Communication:

In oral or verbal communication, information is given directly, either face to face or through a telephone or intercom system. Generally, in meetings, lectures, interviews, conferences, etc. the communication is oral. Some of the merits of oral communication are: (a) It is a time and money saving device, (b) As there is an element of personal touch, it is comparatively more effective, (c) Doubts can be clarified on the spot and the communication can be understood easily, (d) Important points may be emphasised through action, (e) The effects of communication can be easily measured. It provides for greater flexibility.

Oral communication, however, suffers from certain limitations. These are: (a) It is not useful where the parties are very far from each other, even beyond telephonic range, (b) It is not suitable for lengthy communications, (c) There is no permanent record of communication, (d) Sometimes, oral communication is not taken seriously by the receiver, (e) If the communication is poor in vocal expression, oral communications are likely to be misunderstood and misinterpreted.

Written Communication:

Written communication can take the form of a report, statement, circular, note, manual, handbook, letter, memo, etc. Some of the merits of written communication are as follows: (a) It is suitable for lengthy communications, (b) If the parties are far from each other, even beyond telephonic range, written communication is the only way out. (c) It can be kept as a permanent record and at times be referred to as evidence, (d) There are fewer chances of missing out a point, (e) Written communication serves as a solid base for taking action against a subordinate who disobeys it.

Some of the disadvantages of written communication are as follows: (a) There is a greater chance of the communication being misunderstood, (b) It is time consuming, (c) There is no scope for face to face discussion, (d) It is difficult to maintain secrecy about the matter communicated, (e) It suffers from a lack of flexibility, (f) Poorly written messages followed by numerous clarifications, both written and oral, may lead to confusion.

Electronic communication:

Due to developments in information technology and the internet, today we have numerous forms of electronic communication such as e-mail, instant messaging, SMS, chat rooms, VOIP, video-conferencing, etc. which are greatly reducing the time, distance and cost barriers of traditional forms of communication.

Non-Verbal Communication:

All of us constantly send clues about our feelings—not by what we say, but by what we do. This is called non-verbal communication. Much non-verbal communication is expressed through body language—the facial expressions, postures, gestures, etc. This is a powerful form of communication and “actions speak louder than words”.

Informal communication:

Known as the 'grapevine', this structure less network of informal communication flourishes in all organisations because communication is a natural human tendency. People who know each other in the organisation talk together informally. One thing they have in common is the organisation they work for, so they talk about the happenings in the organisation.

The grapevine carries two types of information: work-related and people-related. Employees want to know what is going on in the organisation. When they are not kept informed through formal channels, they seek information from the grapevine. Likewise, they are curious about the people they work with. The grapevine carries the type of personal information not generally communicated through formal channels.

BARRIERS TO COMMUNICATION

There is no such thing as perfect communication. There are continuous forces at work – called barriers—which tend to distort communication and promote disorganisation. We may summarise these barriers under three broad categories: A. Semantic barriers, B. Psychological barriers, and C. Organizational barriers.

A. Semantic barriers:

1. Words/symbols with different meanings. Communication symbols usually have a variety of meanings. For example, the English word ‘round’ has 110 different meanings. The 500 most common English words have an average of 28 definitions each. Moreover, a particular word may have different meanings in different languages. Similarly, non-verbal symbols may convey different meanings to different persons. In such situations, the receiver may interpret differently and communication breaks down.

2. Badly expressed messages. Poorly chosen or empty words/phrases, careless omission, lack of coherence, bad organization of ideas, awkward sentence structure, inadequate vocabulary are some common faults that may distort a message.

3. Faulty translations. The message must be put into words appropriate to the framework in which the receiver operates. This requires a high level of linguistic capability. Approximate understanding of words and their faulty translation lead to poor communication.

4. Different backgrounds. One reason for distortion of meaning is that different individuals often interpret the same communication differently; each individual uses his own frame of reference. This frame of reference is based on particular experience and knowledge. Thus, when people with different knowledge and experiences try to communicate, they often have trouble getting their meanings across.

5. In-group language (Jargon). Often, occupational or social groups develop their own terminology or in-group language. This special language, though providing a means for precise and quick communication within the group, creates severe communication breakdown when outsiders or other groups are involved.

B. Psychological barriers:

6. Premature evaluation: It is the tendency of prematurely judging communication instead of receiving it with an open mind. This may cause misunderstanding in the mind of the receiver as well as de-motivate the sender.

6. Inattention. Another common barrier is that many receivers simply do not pay attention to the message. One reason people do not pay attention is selective listening. Selective listening results from a common tendency to block out information that conflicts with what we believe. When we listen to a speech or read a newspaper, we generally pay attention only to those things that confirm our beliefs. Sometimes people do not pay attention to communication because they are victims of communication overload or because the information is unsolicited.

7. Poor retention. Studies show that employees retain only 50 per cent of communicated information.

8. Distrust, threat or fear of communicator. Distrust, threat and fear undermine communication. In a climate containing these forces, any message will be viewed with skepticism. Distrust can be due to inconsistent behavior by the superior. Faced with threats – real or imagined – people tend to tighten up, become defensive, and distort information.

C. Organizational barriers:

9. Faulty organization. In a large-scale enterprise where the chain of command is too long or the span of control too big, communication will be poor. This is because successive transmissions of the same message are decreasingly accurate. In oral communication, around 30 percent of the information is lost in each transmission.

10. Filtering: Filtering refers to intentionally withholding or deliberately manipulating information by the sender, either because the sender believes that the receiver does not need all the information or that the receiver is better off not knowing all aspects of the situation. It could also be that the receiver is simply told what he wants to hear.

11. Organizational policy: If the policy is not supportive to the flow of communication in different directions, communication flow would not be smooth and adequate.

12. Organizational rules and regulations: These affect the flow of communication by prescribing the subject-matters to be communicated and also the channel through which these are to be communicated.

13. Status relationships: The placing of people in superior/subordinate capacity in the formal organization structure blocks the flow of communication, more so in the upward direction.

PRINCIPLES OF EFFECTIVE COMMUNICATION

1. The manager who wants to communicate must be clear in his mind about the objective of his communication. He should know what he wants to communicate. Many executives mistake the form of communication for its matter and pay too much attention to media and devices and too little to purpose and context.

2. The communication should be in easily understandable language. For this it is necessary to know and understand the needs and capabilities of the audience. The educational background and understanding of the people differ.

3. Communication should be adequate and complete in all respects. If all the necessary information has not been supplied, people make assumptions about the missing information This can result in concluding an incorrect meaning.

4. The medium of communication must be carefully selected. The medium to be selected depends on the subject matter, urgency of communication, situation, etc.

5. Messages should not be mutually conflicting and should be in line with the overall objectives and policies of the concern. This will avoid chaos and confusion in the organization.

6. There is also a need for the right climate in the organisation. There should be a good superior-subordinate relationship characterised by openness and trust so that everybody may feel free to communicate and to make suggestions on his own. The physical setting should also facilitate communication.

7. There should be follow up of communication to know whether or not the receiver has understood the message correctly and to know his reaction. Feedback is necessary to ensure understanding.

8. The communicator should not act in any way which contradicts his message. A communicator is judged not only by what he says but also by what he does. Actions speak louder than words. Hence, the action of the communicator should be in line with the message conveyed.

9. Every executive should realise that the grapevine is a powerful channel in an organisation. Generally, it is better to use the grapevine than to try to fight it.

10. There should be provision for adequate training facilities to the executives for improving their skills in writing, effective speaking, lecturing, interviewing and listening. Good listening is one of the weakest points of executives in oral communication, especially when they are talking to persons below them in the organisation structure.

11. The communication must be timely, i.e. it must be made at the right time,when needed by the recipient.

12. There should be a proper balance between the three essentials of brevity, clarity, and completeness.

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