CENTRE FOR DISTANCE EDUCATION

BHARATHIDASAN UNIVERSITY

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UG-Public Administration II year

MAJOR PAPER – Major Paper III:

PRINCIPLES OF PUBLIC ADMINISTRATION

Author

Dr. A. Joseph

Assistant Professor

Department of Political Science

Government Arts College, Trichy-22

anandamjoseph@yahoo.co.in

PUBLIC ADMINISTRATION

MAJOR PAPER III

PRINCIPLES OF MANAGEMENT

Unit I

Lesson 1:

Meaning, Nature and Scope and Functions of Management

1.0. Introduction:

In today’s tough and uncertain economy, a company needs strong

management principles and managers to lead its staff toward accomplishing

business goals. But managers are more than just leaders — they’re problem

solvers, cheerleaders, and planners as well. And managers don’t come in one-

size-fits-all shapes or forms. Managers fulfill many roles and have many

different responsibilities at each level of management within an organization.

In this Lesson, you not only discover those roles and functions, but you also

find out the truth about several common misconceptions about management

1.1. Meaning

Management is essential at all levels of an organisation. But the word

management has been given different interpretations. Management in

some form or another is an integral part of living and is essential

wherever human efforts are to be undertaken to achieve desired

objectives. The basic ingredients of management are always at play,

whether we manage our lives or our business.

The concept of management is as old as the human race itself.

The concept of ‘family’ itself required that life be organized and

resources of food are apportioned in a manner so as to maximize the

utility of such resources. Taking proper steps to safeguard the family

from attacks by wild animals, planning on where to go fishing and

hunting and whom to go with, organizing these groups into chiefs and

hunting and fishing bands where chiefs gave directions, and so on, are

all subtle ingredients of management and organization.

A manager’s primary challenge is to solve problems creatively,

and you should view management as “the art of getting things done

through the efforts of other people.” We draw this definition from a

biography of Mary Parker Follett (1868–1933) written by P. Graham.

Follett was an American social worker, consultant, and author of books

on democracy, human relations, and management. She worked as a

management and political theorist, introducing such phrases as

“conflict resolution,” “authority and power,” and “the task of

leadership.” The principles of management, then, are the means by

which you actually manage, that is, get things done through others—

individually, in groups, or in organizations. Formally defined, the

principles of management are the activities that “plan, organize, and

control the operations of the basic elements of [people], materials,

machines, methods, money and markets, providing direction and

coordination, and giving leadership to human efforts, so as to achieve

the sought objectives of the enterprise.”The fundamental notion of

principles of management was developed by French management

theorist Henri Fayol (1861–1925). He is credited with the original

planning-organizing-leadingcontrolling framework (P-O-L-C), which,

while undergoing very important changes in content, remains the

dominant management framework in the world. For this reason,

principles of management are often discussed or learned using a

framework called P-O-L-C, which stands for planning, organizing,

leading, and controlling.

Management as an economic resource :

The economist's view of management is that it is a factor of

production just like entrepreneurship, capital and labour. The

managerial resource, to a large extent, determines orgaoisational

effectiveness and efficiency. Hence in a dynamic environment

managerial development is more important and its use must be more

intensive.

Management as authority :

Management is a system of authority in the sense that it consists

of a team of managers who are responsible for making decisions and

supervising the work of others. Managers at different levels possess

varying degrees of authority. Higher level managers lnaliage managers

at middle levels. Middle and lower level managers supervise and

control their subordinate managers and workers.

Management as a class or Elite :

Sociologists view management as a class and status system. Increasing

complexity of management in the modern complex organisation has led

to maniigers king regarded as a distinct class in society, who possess

knowledge and skill of a high order. Access to managerial positions is

based - on achievement criteria (i.e., on intellect and knowledge) rather

than on astrictive criteria (i.e., on family and social origins). This

development is viewed by some as managerial revolution in which the

managerial class threatens to become autonomous groups with

increasing amount of power. Others view this development not with

alarm because increase in power of managers attracts more of them,

which prevents managerial autocracy.

Management as a Process .

Interpreted as a process, management consists of a series of inter-

related managerial activities classified into various functions like

planning, organising, staffing, leading and controlling. Managers

undertake these functions with a systematic approach, so as to

integrate physical and human resources into an effective operating

unit. Management is, thus, regarded as the process by which a co-

operative group directs action towards common goals.

Management as a Discipline

Another connotation of management is that it is a separate discipline

having a systematised body of knowledge which managers use in

pqrforming'their jobs. As a separate field of study, management

includes the principles and practice of general management as well as

of the various functions of management. It has developed its own

techniques and 'approaches. The theoretical foundations of

management have evolved on the basis of experience, observation and

scientific investigations.

1.2. Definition:

According to F.W. Taylor, ‘ Management is an art of knowing what to

do when to do and see that it is done in the best and cheapest way ‘.

According to Harold Koontz, ‘Management is an art of getting things

done through and with the people in formally organized groups. It

is an art of creating an environment in which people can perform

and individuals and can co-operate towards attainment of group

goals.‘

According to Peter Drucker management is associated with the

business activity. And “management is an organ; organs can be described and

defined only through their functions.

According to Henry Fayol, “ To manage is to forecast and plan, to

organize, to compound, to coordinate and to control”

Management is “ the art of getting things done by a group of people

with the effective utilization of available resources.

Characteristics of Management

Management is an art as well as a science

It is an activity of effective utilization of available resources

It is a continuous process

Each activity in management is directed towards the achievement of

pre-determined objectives

It is a group of organised activities

It is agactor of production

It is a system of activity

It is discipline

It s a purposeful activity

It is a distinct entity

It aims at maximizing profit

It helps in effective decision making

It is a profession

The principles and practices of management have universal application

It is dynamic in nature

It is needed at all levels

It is the function of executive leadership

Functions of Management

There are five primary functions of management, they are:

1. Planning

2. Organising

3. Staffing

4. Directing

5. Controlling

controlling function comprises coordination, reporting, and

budgeting, and hence the controlling function can be broken into

these three separate functions. Based upon these seven functions,

Luther Gulick coined the word POSDCORB, which generally

represents the initials of these seven functions i.e. P stands for

Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-

ordination, R for reporting & B for Budgetting. The But, Planning,

Organizing, Staffing, Directing, and Controlling are widely

recognized functions of management

1. Planning

Planning is future-oriented and determines an organization’s

direction. It is a rational and systematic way of making decisions

today that will affect the future of the company. It is a kind of

organized foresight as well as corrective hindsight. It involves

predicting of the future as well as attempting to control the

events. It involves the ability to foresee the effects of current

actions in the long run in the future.

Peter Ducker has explained Planning as follows:

“Planning is the continuous process of making present

entrepreneurial decisions systematically and with best possible

knowledge of their futurity, organizing systematically the efforts

needed to carry out these decisions and measuring the results of

these decisions against the expectations through organized and

systematic feedback”.

An  effective planning program incorporates the effect of both

external as well as internal factors. The external factors are

shortages of resources; both capital and material, general

economic trend as far as interest rates and inflation are

concerned, dynamic technological advancements, increased

governmental regulation regarding community interests,

unstable international political environments, etc.

The internal  factors that affect planning are limited growth

opportunities due to saturation requiring diversification,

changing patterns of the workforce, more complex

organizational structures, decentralization

2. Organising

Organizing requires a formal structure of authority and the

direction and flow of such authority through which work

subdivisions are defined, arranged and coordinated so that each

part elates to the other part in a united and coherent manner so

as to attain the prescribed objective

According to Henry Fayol, “To organize a business is to provide it

with everything useful or its functioning i.e. raw material, tools,

capital and personnel’s”.

Thus the function of organizing involves the determination of

activities that need to be done in order to reach the company

goals, assigning these activities to the proper personnel, and

delegating the necessary authority to carry out these activities in

a coordinated and cohesive manner.

It follows, therefore, that the function of organizing is concerned

with

1. Identifying the tasks that must be performed and grouping them whenever

necessary

2. Assigning these tasks to the personnel while defining their authority and

responsibility

3. Delegating this authority to these employees

4. Establishing a relationship between authority and responsibility

5. Coordinating these activities

3. Staffing

Staffing is the function of hiring and retaining a suitable work-

force for the enterprise both at managerial as well as non-

managerial levels. It involves the process of recruiting, training,

developing, compensating, and evaluating employees and

maintaining this workforce with proper incentives and

motivations. Since the human element is the most vital factor in

the process of management, it is important to recruit the right

personnel.

According to Kootz & O’Donnell, “Managerial function of

staffing involves manning the organization structure through the

proper and effective selection, appraisal & development of

personnel to fill the roles designed in the structure”.

This function is even more critically important since people

differ in their intelligence, knowledge, skills, experience, physical

condition, age, and attitudes, and this complicates the function.

Hence, management must understand, in addition to the

technical and operational competence, the sociological and

psychological structure of the workforce.

4. Directing

The directing function is concerned with leadership,

communication, motivation and supervision so that the

employees perform their activities in the most efficient manner

possible, in order to achieve the desired goals.

The Leadership element involves issuing of instructions and

guiding the subordinates about procedures and methods.

The communication must be open both ways so that the

information can be passed on to the subordinates and the

feedback received from them.

Motivation is very important since highly motivated people

show excellent performance with less direction from superiors.

Supervising subordinates would lead to continuous progress

reports as well as assure the superiors that the directions are

being properly carried out.

5. Controlling

The function of control consists of those activities that are

undertaken to ensure that the events do not deviate from the

pre-arranged plans. The activities consist of establishing

standards for work performance, measuring performance and

comparing it to these set standards and taking corrective actions

as and when needed, to correct any deviations.

According to Koontz & O’Donnell, “Controlling is the

measurement & correction of performance activities of

subordinates in order to make sure that the enterprise objectives

and plans desired to obtain them as being accomplished”.

The Controlling functions involves:

a. Establishment of standard performance.

b. Measurement of actual performance

c. c. Measuring actual performance with the pre-determined standard

and finding out the deviations

d. d. Taking corrective action.

All these five functions of management are closely interrelated.

However, these functions are highly indistinguishable and virtually

unrecognizable on the job. It is necessary, though, to put each function

separately into focus and deal with.

Lesson 2

Schools of Management Thought

There are Eight schools of management thought, they are:

1. Scientific Management School

2. Management Process School

3. Human Relations School

4. Human Behavioural School

5. System Approach School

6. Decision Theory School

7. Mathematical or Quantitative School

8. Contingency Approach School of Management.

Out of these eight schools, we will be studying only three management

school of thoughts as per our syllabus. They are:

1. Scientific Management School

2. Human Relations School

3. Behavioural management School.

1. Scientific management School

It means that, scientific methods and scientific principles are to be followed

and applied in managing the affairs of an enterprise.

Frederick Winslow Taylor (1856-1915), popularly known as the ‘Father of Scientific

Management Movement’, was the first to recognise and emphasise the need for

adopting a systematic scientific approach to the task of managing an enterprise.

Taylor joined the Midvale Steel Company in the USA, as a worker and later on rose

to the position of chief engineer. Subsequently he joined the Bethlehem Works

where he experimented with his ideas and made his contribution to management

theory for which he is so well-known.

He studied the causes of low efficiency in industry and came to the conclusion that

much of the waste and inefficiency is due to the lack of order and system in the

methods of management. He observed that the managers were usually ignorant of

the amount of work that could be done by a worker in a day and had no clear notion

of the best method of doing the work.

It was his realisation that there was lack of efficient work standard, absence of clear-

cut division of works between the managers and workers, lack of incentive of the

workers, unscientific selection and placement of workers. He, therefore, suggested

that the managers should follow a ‘scientific approach’ in their work and apply

scientific methods for achieving higher efficiency.

With a view to improving management practice, he conducted a series of

experiments. On the basis of these experiments he developed his concepts and

techniques into a philosophy which is known as ‘Scientific Management’.

He published many papers and books and all his contributions were compiled in his

book “The Principles of Scientific Management’. Taylor’s ideas on scientific

management were greatly expanded by H. S. Person, Henry L. Gantt, and Lillian

Gilbreth, Harrington Emerson and M. L. Cooke.

2. Human Relation School

In scientific management, importance is given to its technical side to increase

the efficiency of the organisations. On the other hand, ‘Human Relations

School’ believes in the importance of human resources in the management.

This approach focuses attention on the relationship between the management

authority and the working personnel.

The importance of working personnel in management is immense. If their

mentality, aspirations, desires, wants and needs are properly looked into and

satisfied by the managers, their activities become effective and meaningful.

The main aspect of this approach is to treat the workers as human beings.

This school highlights the importance of informal social groups in the

organisation, good human relations, the need for managerial motivation,

greater recognition, participation, better communication and good leadership.

According to this school, an organisation is not merely a formal arrangement

of men and functions, more than that, it is a social system, and the human

factor is the most important element within it.

In the early twentieth century Elton Mayo, professor at the Harvard

University, could realise the importance of this thought by experiments and

observations in the factory of the Western Electric Company at Hawthorne

city in Chicago. These experiments and observations of Prof. Elton Mayo are

known as ‘Hawthorne Experiment’.

These experiments revealed that physical and environmental factors

do not materially influence the workers’ performance and attitude to work.

Mayo realised first the necessity to consider and solve the problems of the

workers with human relation approach.

He thought that the productivity of workers depends upon human

relationship. Other important propagators of this school of management thought

are—Roethlis Berger, William J. Dickson, Mary Parker Follet and A. F. Maslow.

3. Human Behavioural School:

The behavioural approach to management relates to the application of

the methods and findings of psychology and sociology to the organisational

behaviour. This school emphasises the actions and reactions of the human

beings in group activity. Mental reactions like emotions, feelings, aims,

instincts, hopes and desires regulate a man’s behaviour or conduct.

‘Human Behavioural School’ believes that, unless these mental

reactions of the workers are considered, and their problems are either solved

or at least attempts are made to fulfill their needs and demands by the

managers, effective and meaningful management is not possible.

Thus, according to this school, performance of managerial activities in

consideration of the conduct or behaviour of working personnel is an

effective and decent management.

As a result of the experiments, observations and researches of many

psychologists and sociologists, and after the Hawthorne Experiment, ‘Human

Behaviour Management Thought’ was evolved out. In this respect, the

contribution of Mary Parker Follet, a member of Human Behaviour School, is

particularly mentionable. Other notable propagators of this school are A. F.

Maslow. F. H. Herzberg, McGregor, Keith Davis and Chrris Argrys.

Unit II

Lesson 3:

Planning

3.1. Introduction

Among the five management functions — planning, organizing, staffing,

leading and controlling — planning is the most fundamental. All other

functions stem from planning. However, planning doesn’t always get the

attention that it deserves; when it does, many managers discover that the

planning process isn’t as easy as they thought it would be — or that even

the best-laid plans can go awry.

In this chapter, the process of planning and the strategies behind

different types of plans are discussed. Topics also include the importance

of employee involvement and the significance of goal setting.

3.2. Defining Planning

Before a manager can tackle any of the other functions, he or she must

first devise a plan. A plan is a blueprint for goal achievement that

specifies the necessary resource allocations, schedules, tasks, and other

actions.

A goal is a desired future state that the organization attempts to

realize. Goals are important because an organization exists for a purpose,

and goals define and state that purpose. Goals specify future ends; plans

specify today’s means. The word planning incorporates both ideas: It

means determining the organization’s goals and defining the means for

achieving them. Planning allows managers the opportunity to adjust to

the environment instead of merely reacting to it. Planning increases the

possibility of survival in business by actively anticipating and managing

the risks that may occur in the future. In short, planning is preparing for

tomorrow, today. It’s the activity that allows managers to determine what

they want and how they will achieve it. Not only does planning provide

direction and a unity of purpose for organizations,

it also answers six basic questions in regard to any activity:

_ What needs to be accomplished?

_ When is the deadline?

_ Where will this be done?

_ Who will be responsible for it?

_ How will it get done?

_ How much time, energy, and resources are required to accomplish

this goal?

3.3. Advantages of Planning

The military saying, “If you fail to plan, you plan to fail,” is very true. Without a plan,

managers are set up to encounter errors, waste, and delays. A plan, on the other

hand, helps a manager organize resources and activities efficiently and effectively to

achieve goals. The advantages of planning are numerous. Planning fulfills the

following

objectives:

a. Gives an organization a sense of direction.

Without plans and goals, organizations merely react to daily occurrences

without considering what will happen in the long run. For example, the

solution that makes sense in the short term doesn’t always make sense in the

long term. Plans avoid this drift situation and ensure that short-range efforts

will support and harmonize with future goals.

b. Focuses attention on objectives and results.

Plans keep the people who carry them out focused on the anticipated results.

In addition, keeping sight of the goal also motivates employees.

c. Establishes a basis for teamwork.

Diverse groups cannot effectively cooperate in joint projects without an

integrated plan. Examples are numerous: Plumbers, carpenters, and

electricians cannot build a house without blueprints. In addition, military

activities require the coordination of Army, Navy, and Air Force units.

d. Helps anticipate problems and cope with change.

When management plans, it can help forecast future problems and make any

necessary changes up front to avoid them. Of course, surprises — such as the

1973 quadrupling of oil prices — can always catch an organization short, but

many changes are easier to forecast. Planning for these potential problems

helps to minimize mistakes and reduce the “surprises” that inevitably occur.

e. Provides guidelines for decision making

Decisions are future-oriented. If management doesn’t have any plans for the

future, they will have few guidelines for making current decisions. If a

company knows that it wants to introduce a new product three years in the

future, its management must be mindful of the decisions they make now.

Plans help both managers and employees keep their eyes on the big picture.

f. Serves as a prerequisite to employing all other management functions.

Planning is primary, because without knowing what an organization

wants to accomplish, management can’t intelligently undertake an y of the

other basic managerial activities: organizing, staffing, leading, and/or

controlling.

3.4. Types of Plans

Plans commit individuals, departments, organizations, and the resources

of each to specific actions for the future. As the previous section explains,

effectively designed organizational goals fit into a hierarchy so that the

achievement of goals at low levels permits the attainment of high-level

goals. This process is called a means-ends chain because low-level goals

lead to accomplishment of high-level goals.

Three major types of plans can help managers achieve their organization’s

goals: strategic, tactical, and operational. Operational plans lead to the

achievement of tactical plans, which in turn lead to the attainment of

strategic plans. In addition to these three types of plans, managers should

also develop a contingency plan in case their original plans fail.

Operational plans

The specific results expected from departments, work groups, and individuals

are the operational goals. These goals are precise and measurable.

“Process 150 sales applications each week” or “Publish 20 books this quarter”

are examples of operational goals.

An operational plan is one that a manager uses to accomplish his or

her job responsibilities. Supervisors, team leaders, and facilitators develop

operational plans to support tactical plans (see the next section). Operational

plans can be a single-use plan or an ongoing plan.

Single-use plans apply to activities that do not recur or repeat. A

one-time occurrence, such as a special sales program, is a single-use

plan because it deals with the who, what, where, how, and how much

of an activity. A budget is also a single-use plan because it predicts

sources and amounts of income and how much they are used for a

specific project.

Continuing or ongoing plans are usually made once and retain their

value over a period of years while undergoing periodic revisions and

updates. The following are examples of ongoing plans:

A policy provides a broad guideline for managers to follow

when dealing with important areas of decision making. Policies

are general statements that explain how a manager should

attempt to handle routine management responsibilities. Typical

human resources policies, for example, address such matters

as employee hiring, terminations, performance appraisals,

pay increases, and discipline.

A procedure is a set of step-by-step directions that explains

how activities or tasks are to be carried out. Most organizations

have procedures for purchasing supplies and equipment,

for example. This procedure usually begins with a supervisor

completing a purchasing requisition. The requisition is then

sent to the next level of management for approval. The

approved requisition is forwarded to the purchasing department

rule is an explicit statement that tells an employee what

he or she can and cannot do. Rules are “do” and “don’t” statements

put into place to promote the safety of employees and

the uniform treatment and behavior of employees. For example,

rules about tardiness and absenteeism permit supervisors

to make discipline decisions rapidly and with a high degree of

fairness.

Tactical plans

A tactical plan is concerned with what the lower level units within each

division must do, how they must do it, and who is in charge at each level.

Tactics are the means needed to activate a strategy and make it work.

Tactical plans are concerned with shorter time frames and narrower scopes

than are strategic plans. These plans usually span one year or less because

they are considered short-term goals. Long-term goals, on the other hand,

can take several years or more to accomplish. Normally, it is the middle

manager’s responsibility to take the broad strategic plan and identify specific

tactical actions.

Strategic plans

A strategic plan is an outline of steps designed with the goals of the entire

organization as a whole in mind, rather than with the goals of specific

divisions or departments. Strategic planning begins with an organization’s

mission.

Strategic plans look ahead over the next two, three, five, or even more years

to move the organization from where it currently is to where it wants to

be. Requiring multilevel involvement, these plans demand harmony among

all levels of management within the organization. Top-level management

develops the directional objectives for the entire organization, while lower

levels of management develop compatible objectives and plans to achieve

them. Top management’s strategic plan for the entire organization becomes

the framework and sets dimensions for the lower level planning.

Contingency plans

Intelligent and successful management depends upon a constant pursuit

of adaptation, flexibility, and mastery of changing conditions. Strong management

requires a “keeping all options open” approach at all times —

that’s where contingency planning comes in.

Contingency planning involves identifying alternative courses of action

that can be implemented if and when the original plan proves inadequate

because of changing circumstances.

Keep in mind that events beyond a manager’s control may cause even the

most carefully prepared alternative future scenarios to go awry. Unexpected

problems and events frequently occur. When they do, managers may need

to change their plans. Anticipating change during the planning process is

Barriers to Planning

Various barriers can inhibit successful planning. In order for plans to be

effective and to yield the desired results, managers must identify any potential

barriers and work to overcome them. The common barriers that inhibit

successful planning are as follows:

a. Inability to plan or inadequate planning.

Managers are not born with the ability to plan. Some managers are not

successful planners because they lack the background, education, and/or

ability. Others may have never been taught how to plan. When these two

types of managers take the time to plan, they may not know how to conduct

planning as a process.

b. Lack of commitment to the planning process.

The development of a plan is hard work; it is much easier for a manager to

claim that he or she doesn’t have the time to work through the required

planning process than to actually devote the time to developing a plan. (The

latter, of course, would save them more time in the long run!) Another

possible reason for lack of commitment can be fear of failure. As a result,

managers may choose to do little or nothing to help in the planning process.

c. Inferior information

Facts that are out-of-date, of poor quality, or of insufficient quantity can be

major barriers to planning. No matter how well managers plan, if they are

basing their planning on inferior information, their plans will probably fail.

d. Focusing on the present at the expense of the future

Failure to consider the long-term effects of a plan because of emphasis on

short-term problems may lead to trouble in preparing for the future.

Managers should try to keep the big picture — their long-term goals —in

mind when developing their plans.

e. Too much reliance on the organization’s planning department.

Many companies have a planning department or a planning and development

team. These departments conduct studies, do research, build models, and

project probable results, but they do not implement plans.

Lesson 4

Organising

4.0. Introduction

The second function of management is organizing. After a manager has

a plan in place, she can structure her teams and resources. This important

step can profoundly affect an organization’s success.

Not only does a business’s organizational structure help determine

how well its employees make decisions, but it also reflects how well they

respond to problems. These responses, over time, can make or break an

organization. In addition, the organizational structure influences employees’

attitudes toward their work. A suitable organizational structure can minimize

a business’s costs, as well as maximize its efficiency, which increases its

ability to compete .

The Relationship between Planning and Organizing

Once managers have their plans in place, they need to organize the necessary

resources to accomplish their goals. Organizing, the second of the

universal management functions, is the process of establishing the orderly

use of resources by assigning and coordinating tasks. The organizing process

transforms plans into reality through the purposeful deployment of

people and resources within a decision-making framework known as the

organizational structure.

The organizational structure provides a framework for the hierarchy, or

vertical structure, of the organization. An organizational chart is the visual

representation of this vertical structure.

4.1. The Organizational Process

Organizing, like planning, must be a carefully worked out and applied

process. This process involves determining what work is needed to accomplish

the goal, assigning those tasks to individuals, and arranging those

individuals in a decision-making framework (organizational structure).

The end result of the organizing process is an organization — a whole

consisting of unified parts acting in harmony to execute tasks to achieve

goals, both effectively and efficiently.

A properly implemented organizing process should result in a work environment

where all team members are aware of their responsibilities. If the

organizing process is not conducted well, the results may yield confusion,

frustration, loss of efficiency, and limited effectiveness.

In general, the organizational process consists of five steps (a flowchart of

these steps is shown below):

Figure :The organizational process.

1. Review plans and objectives.

Objectives are the specific activities that must be completed to

achieve goals. Plans shape the activities needed to reach those goals.

Managers must examine plans initially and continue to do so as

Step 1 Job Design

Step 2 Departmentallizationo

Step 3 Delegation

Job 6 Span of management

Step 5 Chain of Command

Formal Organisation Structure Depicted by Organisational Chart

plans change and new goals are developed.

2. Determine the work activities necessary to accomplish objectives.

Although this task may seem overwhelming to some managers, it

doesn’t need to be. Managers simply list and analyze all the tasks

that need to be accomplished in order to reach organizational goals.

3. Classify and group the necessary work activities into manageable

units.

A manager can group activities based on four models of departmentalization:

functional, geographical, product, and customer.

4. Assign activities and delegate authority.

Managers assign the defined work activities to specific individuals.

Also, they give each individual the authority (right) to carry out the

assigned tasks.

5. Design a hierarchy of relationships.

A manager should determine the vertical (decision-making) and

horizontal (coordinating) relationships of the organization as a

whole. Next, using the organizational chart, a manager should diagram

the relationships.

4.2. Concepts of Organizing

The working relationships — vertical and horizontal associations between

individuals and groups — that exist within an organization affect how its

activities are accomplished and coordinated. Effective organizing depends

on the mastery of several important concepts: work specialization, chain

of command, authority, delegation, span of control, and centralization versus

decentralization. Many of these concepts are based on the principles

developed by Henri Fayol.

1. Work specialization

One popular organizational concept is based on the fundamental principle

that employees can work more efficiently if they’re allowed to specialize.

Work specialization, sometimes called division of labor, is the degree to

which organizational tasks are divided into separate jobs. Employees within

each department perform only the tasks related to their specialized function.

When specialization is extensive, employees specialize in a single task, such

as running a particular machine in a factory assembly line. Jobs tend to be

small, but workers can perform them efficiently. By contrast, if a single

factory employee built an entire automobile or performed a large number

of unrelated jobs in a bottling plant, the results would be inefficient.

Despite the apparent advantages of specialization, many organizations are

moving away from this principle. With too much specialization, employees

are isolated and perform only small, narrow, boring tasks. In addition,

if that person leaves the company, his specialized knowledge may disappear

as well. Many companies are enlarging jobs to provide greater challenges

and creating teams so that employees can rotate among several jobs.

2. Chain of command

The chain of command is an unbroken line of authority that links all persons

in an organization and defines who reports to whom. This chain has

two underlying principles: unity of command and scalar principle.

_ Unity of command: This principle states that an employee should

have one and only one supervisor to whom he or she is directly responsible.

No employee should report to two or more people. Otherwise,

the employee may receive conflicting demands or priorities from several

supervisors at once, placing this employee in a no-win situation.

Sometimes, however, an organization deliberately breaks the chain of

command, such as when a project team is created to work on a special

project. In such cases, team members report to their immediate

supervisor and also to a team project leader. Another example is when

a sales representative reports to both an immediate district supervisor

and a marketing specialist, who is coordinating the introduction of a

new product, in the home office.

3. Scalar Principle

This principle refers to the vertical placement of supervisors starting from

top and going to the lower level. The scalar chain is a pre-requisite for

effective and efficient organization.

4. Authority

Authority is the formal and legitimate right of a manager to make decisions,

issue orders, and allocate resources to achieve organizationally desired

outcomes. A manager’s authority is defined in his or her job description.

Organizational authority has three important underlying principles:

_ Authority is based on the organizational position, and anyone in the

same position has the same authority.

_ Authority is accepted by subordinates. Subordinates comply because

they believe that managers have a legitimate right to issue orders.

_ Authority flows down the vertical hierarchy. Positions at the top of

the hierarchy are vested with more formal authority than are positions

at the bottom.

In addition, authority comes in three types:

_ Line authority gives a manager the right to direct the work of his or

her employees and make many decisions without consulting others.

Line managers are always in charge of essential activities such as sales,

and they are authorized to issue orders to subordinates down the chain

of command.

Staff authority supports line authority by advising, servicing, and

assisting, but this type of authority is typically limited. For example,

the assistant to the department head has staff authority because he or

she acts as an extension of that authority. These assistants can give

advice and suggestions, but they don’t have to be obeyed. The department

head may also give the assistant the authority to act, such as the

right to sign off on expense reports or memos. In such cases, the directives

are given under the line authority of the boss.

_ Functional authority is authority delegated to an individual or

department over specific activities undertaken by personnel in other

departments. Staff managers may have functional authority, meaning

that they can issue orders down the chain of command within

the very narrow limits of their authority. For example, supervisors in

a manufacturing plant may find that their immediate bosses have line

authority over them, but that someone in corporate headquarters may

also have line authority over some of their activities or decisions.

Why would an organization create positions of functional authority?

After all, this authority breaks the unity of command principle by

having individuals report to two bosses. The answer is that functional

authority allows specialization of skills and improved coordination.

This concept was originally suggested by Frederick Taylor.

He separated “planning” from “doing” by establishing a special

department to relieve the laborer and the foreman from the work

of planning. The role of the foreman became one of making sure that

planned operations were carried out. The major problem of functional

authority is overlapping relationships, which can be resolved

by clearly designating to individuals which activities their immediate

bosses have authority over and which activities are under the direction

of someone else.

Lesson 5

Leadership

5.1. MEANING AND DEFINITIONS OF LEADERSHIP

A leader is a person who guides and directs others called followers. He gives

focus to the efforts of his followers. The leader influences his followers to indulge in

such activities as are vital for the accomplishment of the organisation’s goal.

According to Allen, “a leader is one who guides and directs other people. He must

give effective direction and purpose”.

The dictionary meaning of leadership is ‘to lead’ ‘to excel’, ‘to be in advance’,

‘to be prominent’. The other meaning, also from the dictionary is to ‘guide others, to

be head of an organization, to hold command’. Leadership is a force that binds a

group together and motivates it towards the desired goals.

5.2. DEFINITIONS OF LEADERSHIP

Given below are some of the important definitions of leadership:

Leadership is the ability of a superior to influence the behaviour of his

subordinates and persuade them to follow a particular course of action-

Chester Barnard.

Leadership is the activity of persuading people to cooperate in the

achievement of a common objective- Koontz and O’ Donnell

Leadership is the activity of influencing people to strive willingly for mutual

objectives- George R Terry.

Leadership is the process by which an executive imaginatively direts, guides

and influences the work of others in choosing and attaining specified goals-

Theo Haimann.

Leadership in large organizations may be defined as influencing and

energising people to work together in a common effort to achieve the

purposes of the enterprise- Seckler- Hudson

Leadership is a process of influence on a group in a particular situation at a

given point of time and in a specific set of circumstances that stimulates

people to strive willingly to attain organisational objectives- James Gibbon.

It is clear from the above definitions that leadership is

the ability to influence people toward the attainment of organisational

goals.

reciprocal, occurring among people.

a “People” activity, distinct from administrative paper shuffling or

problem – solving activities.

dynamic and involves the use of power.

5.3. NEED FOR LEADERSHIP

Daniel Katz and Robert Kahn give four reasons:

1. The incompleteness of formal organizational design- Leadership is needed to

compensate for the weakness inherent in the formal designs.

2. In view of the changing environmental conditions the leader is required to

initiate the corresponding changes in the organisation.

3. The internal dynamics of the organisation, as organisation grows new

complexities of structure are created, giving rise to new coordination needs

requiring the leader to formulate new policies.

4. The nature of segmental human membership in the organisations,

necessitates a leader to such changes which positively influence the human

behaviour of the person on the job.

5.4. NATURE AND CHARACTERISTICS OF LEADERSHIP

The following are the characteristics of leadership:

1. It is the quality of a person- Leadership to a considerable extent, is an

inborn and an inherent quality of a person. It is also possible to train a

person to acquire leadership qualities. It is the potentials of the leader that

determine his ability to guide, direct and co-ordinate the activities of his

subordinates.

2. It is the process of influencing others- Leadership is a process of influencing

others to act. In an organization, the leader has to get things done by his

followers. For this he has to influence their belief, behaviour and attitudes.

The success of leadership lies in the willingness of the subordinates to

comply with the directions of the leader.

3. It requires the confidence of followers- To be accepted as a leader, the must

gain the confidence of his followers. For this, he must be very

knowledgeable, sincere and committed to his work. He must a role model

for his subordinates. He must have certain beliefs and values.

4. It requires motivation of subordinates- The leader is expected to motivate

or induce his subordinates to work. By giving directions, orders and

instructions alone the leader may not be get things done. He has to

suitably motivate the subordinates to put in efforts. Motivation need not

always in the form of offering certain monetary benefits. Even a word of

appreciation may induce the subordinates to work hard.

5. Varying leadership styles- The styles of leadership vary from person to

person. Some leaders are, by nature, democratic leaders while there are

others who may follow the autocratic style of leadership.

6. Leadership is a continuous process- The presence of a leader is always

necessary in an organization. The subordinates need to be guided,

influenced, controlled and induced to work continuously for the

attainment of the organizational goal.

5.5. QUALITIES OF A LEADER

To be a successful leader, a person is expected to possess the following

qualities:

1. Ability to analyze- The must be able to analyze any problem and offer an

immediate solution. He should be alert mentally.

2. Emotional Stability- The leader must not make decisions influenced by

emotions. He has to approach any problem intellectually and find a solution.

3. Self- Confidence- A person cannot be a successful leader if he lacks self-

confidence. If he has self- confidence in himself, he will be able to overcome

resistance from anyone for his proposals.

4. Foresight- The leader must foresee what is likely to happen. He must be able

to visualize the future events and prepare his followers to meet challenges.

5. Sense of judgement- The leader must be able to judge what is good under the

given circumstances. Only then he will be able to evolve certain practical

decisions.

6. Understanding- The leader must not always thrust (push) his views on his

followers. He must also listen to their viewpoints particularly while making

decision in a critical situation.

7. Mental courage- The leader must be capable of taking certain bold decisions.

For this he must have mental courage. He need not play safe by just endorsing

(supporting) the decisions of others.

8. Capacity to motivate- Needless to say, the leader must be able to induce and

motivate his followers to work for the mission he has undertaken.

9. Ability to guide- The leader will be able to guide his followers in the work

process only if he himself is well versed in the actual work.

10. Communication skills- Successful leaders are always known for the

communication skills. Such skills are essential to direct the followers to work

for attaining the desired goal. Moreover, the leader will always be able to

defend him if he possesses good communication ability.

11. Sociability- The leader should not be indifferent to the needs of his followers.

As his followers work wholeheartedly for fulfilling his mission, the leader has

the duty to reciprocate. If any follower has certain personal problems, the

leader must do his best to help him. The leader must make himself accessible

to his followers

12. Sound physical health- The leader must possess robust physical health. Mental

health, no doubt, is important, physical health is equally important. If only the

leader has sound physical health, he will be able to work for his mission with

endurance. He will be able to travel extensively and also speak for hours only

if he has good physical health.

13.Practising what is preached- The must be a person who practices what he

preaches. He can talk of commitment to work only if he himself is committed

to work. He can talk of honesty if only he is honest in his dealings.

14.Ambitious- The leader must always be ab ambitious person. Only then his

subordinates will be able to work with enthusiasm. He must always have

some novel plans to make things interesting for the followers.

15.Positive thinking- Last and not the least, the leader must be an optimist. He

must always have a positive attitude towards his work. Only then he will be

able to instill such a feeling in his followers.

5.6. IMPORTANCE OF LEADERSHIP

Leadership is very important in view of the following reasons:

1. To have team work- Leadership makes it possible for the employees to

forget individual differences and work as a team for the attainment of the

organisational objective. It develops co-operation and friendliness among

the staff.

2. To guide- Although the subordinates have potentials, they need to be

properly guided to contribute their best. The leader knows how to get

optimum performance from each of the subordinates working under him.

3. To motivate- Leadership is necessary to induce the subordinates to put in

greater efforts. The leader constantly motivates his subordinates to work

for achieving the organizational goal.

4. To bring about changes- Any organization has to be dynamic to accept

changes caused by political, economic, technological and scientific factors.

The leader of the enterprise knows how to bring about such changes in his

organization by getting the consent of the subordinate staff.

5. To handle crisis- Leadership is essential for handling crisis of any kind.

When an organization faces a critical situation, the leader knows how to

come out of it. The leader should be good at what is called ‘crisis

management’.

5.7. FUNCTIONS OF A LEADER

The following are the important functions of a leader:

1. Planning- He has to prepare suitable plans for the effective functioning of his

group/organization. Planning enables his followers to work for the

attainment of the desired goal in a systematic manner.

2. Policy- making- The leader has to evolve suitable policies that guide his group

in arriving at decisions. Once he makes known to the followers the

fundamental policies, the stand of the group on certain matters will become

clear to everyone concerned. For example, the leader may evolve a policy of

favouring ‘merit’ in matters pertaining to selection of candidates to various

posts.

3. Execution of plans and policies- Preparing plans and formulating policies by

itself will not serve any purpose. What actually important is execution. The

leader has to instigate his followers to work in accordance with the plans and

policies in order to achieve the desired goal.

4. Controlling internal relations- The leader has to ensure that there is cordial

relations among his group members and that they work in an atmosphere of

proper co-operation and co-ordination. If there is any misunderstanding

among his followers, the leader must do his best to set it right. He must

always ensure that his followers repose faith in his leadership.

5. Representing the group- The leader has to represent his group both within

and outside the organization and convey the feelings, sentiments and the

stand of his group on important issues.

6. Providing reward and punishment- if any subordinate has performed his task

well and is sincere and committed to work, the leader shall reward such a

person suitably. It may be done by offering certain tangible or intangible

benefits. If, on the other hand, a subordinate is found to be insincere and

shirking duties, the leader has to initiate disciplinary action against him.

7. Settlement of disputes- The leader has the duty to amicably settle any dispute

between him and his group members and also among the group members. He

can also use his position to resolve any crisis.

8. Role- model- The leader must set an example to his followers. He must

practise what he preaches. He must say what he does and do what he says. He

must be such a person that his followers always want to emulate him.

9. Inseparable from the group- The leader must so lead his followers that he and

his group must be considered as one and the same. He must be seen as a

symbol of the group.

10.Answerability- The leader becomes accountable or answerable not only for his

actions but also for those of his followers.

11.Adherences to the Value system- The leader must have certain values and

beliefs and must adhere and also make his followers adhere to the same.

5.8. LEADERSHIP STYLES

Leadership styles are the pattern of behaviour which a leader adopts in

influencing the behaviour of the followers (subordinates) in the organizational

context. These patterns emerge in the people as they begin to respond in the same

fashion under similar conditions; he develops habits of actions that become

somewhat predictable to those who work with him.

There are many dimensions of leadership styles: power dimensions where

superior uses varying degree of authority, orientation- employee or task- oriented;

motivational- where superior affects the behaviour of his /her subordinates either

by giving a reward or by imposing a penalty. All these styles are leader-oriented.

There may be situation and follower oriented styles. However, such a classification

may not be strict because in a particular classification, some elements of other

classification may appear. According to these dimensions, there are three leadership

styles:

i) Autocratic leadership

ii) Participative leadership

iii) Free- rein leadership

Autocratic Leadership

This is also known as authoritarian or directive style. An autocratic leader

wants his subordinates to work in the manner he wants. He tells WHAT THEY

SHOULD DO, WHERE, WHEN AND HOW. He does not let his followers offer any

suggestion. In autocratic leadership style, a leader centralises decision- making

power in him. He specifies the goal, makes available the resources that he thinks are

enough and sets the deadline within which the subordinates will have to complete

the task. The autocratic leader thinks that his followers are incapable of making

decisions. To secure performance, from his subordinates he may use coercive

power. He structures the complete work situation for his employees and they do

what they are told. Here, the leadership may be negative because followers are

uninformed, insecure, and afraid of leader’s authority. There are three categories of

autocratic leaders.

1. Strict Autocrat. He follows the autocratic style in a very strict sense. His

method of influencing subordinate’s behaviour is through negative

motivation, that is, by criticising subordinates, imposing penalty, etc.

2. Benevolent Autocrat. He also centralises decision- making power in him, but

his motivational style is positive. He can be effective in getting efficiency in

many situations. Some people like to work under strong authority structure

and they drive satisfaction by this leadership style.

3. Incompetent Autocrat. Sometimes, superiors adopt autocratic leadership

style just to hide their incompetency, because in other styles they may be

exposed before their subordinates. However this cannot be used for a long

time.

The pros and cons of autocratic leadership style may be stated as follows:

Advantages:-

1. Such a leadership style is suitable when subordinates are basically lazy and

shirking duties.

2. It provides strong motivation and reward to a leader exercises this style.

3. It permits very quickly decisions as most of the decisions are taken by a

single person.

4. As subordinates are under constant threat of disciplinary action, they are

always cautious.

5. Inefficient and insincere workers can easily be identified and removed from

service.

Disadvantages:-

1. People in organization dislike it specially when it is strict and the

motivational style is negative.

2. Subordinates normally show resistance tothis type of leadership style as it

curtails their freedom to act.

3. Employees lack motivation, frustration, low morale and conflict develop in

the organization jeopardising the organizational efficiency.

4. There is more dependence and less individuality in the organization. As such,

future leaders in the organization do not develop.

Considering the organizational efficiency and employees satisfaction autocratic style

generally is not suitable.

Participative/ Democratic leadership

This style is also called democratic, consultative or ideographic. Participation

is defined as mental and emotional involvement of a person in a group situation

which encourages him into contributes to group goals and share responsibility in

them. A participative leader does not make unilateral or one-sided decisions. He

decentralizes the decision- making process. Instead of taking unilateral decision, he

emphasises consultation and participation of his subordinates.

Subordinates are broadly informed about the conditions of their jobs. This

process emerges from the suggestions and ideas on which decisions are based. The

participation may be either real or pseudo. Here the superior preaches participation

in theory, but realy he does nt pr3efer it in practice.

There are various benefits in real participative style of leadership. These are

as follows:

1. It is a highly motivating technique to employees as they feel elevated when

their ideas and suggestions are given weight in decision-making.

2. The employee’s productivity is high because they are party to the decision.

Thus they implement the decisions whole- heartedly.

3. They share the responsibility with the superior and to safeguard him also.

As someone has remarked, ‘The fellow in the boat with you never bores a

hole in it” is quite applicable in this case too.

4. It provides organizational stability by raising morale andattitudes of

employees high and favourable. Further leaders are also prepared to take

organizational positions.

The common methods adopted are democratic supervision, production

committees, suggestion programmes and multiple management. However, this style

is not free from certain limitations which are as follows:

1. There may delay in arriving at a decision, as consensus among individuals

is necessary.

2. Democratic leadership is suitable only if subordinates are capable of

making worthwhile suggestions. If they are less efficient and prefer to

work as per leader’s directions, participative leadership will not serve the

purpose.

3. It may, sometimes, be very difficult to evolve a solution that is acceptable

to everyone.

Free- rein/ Laissez faire leadership

The dictionary meaning of “laissez faire”is policy of non-interference. Also

known as a “free rein leader”, a laissez faire leader gives full freedom to his/her

followers to act. In this style, a leader once determines policy, programmes and

limitations for action and the entire process is left to subordinates. He does not lay

down the guidelines, within which his followers have to work. Group members

perform everything and the manager usually maintains contacts with outside

persons to bring the information and materials which the group needs. The leader

neither influences the subordinates’ decisions nor does he interfere in the process of

decision- making. Laissez faire leader does not exercise the formal authority of a

leader. The merits and demerits of such a kind of leadership style may be given as

follows:

Merits:

1. Obviously, as the subordinates have full freedom to act, their level of

motivation is bound to be very high.

2. Those subordinates, who are highly efficient, can make use of the freedom

given to them to excel.

3. The superior-subordinate relationship is bound to be very good.

Demerits

1. The laissez faire leadership style will produce good results only if the

subordinates are all highly efficient and capable of doing their work

independently.

2. As the leader does not involve himself at all in the activities of his

subordinates, control may become difficult.

3. The leader does not exercise his formal authority. As a result, the work place

may lose its official character.

4. The subordinates are deprived of the expert advice and moral support of

their leader.

Some of the other leadership styles are as follows:

Bureaucratic leadership

Bureaucratic leaders work "by the book." They follow rules rigorously, and

ensure that their staff follows procedures precisely. This is a very appropriate style for

work involving serious safety risks (such as working with machinery, with toxic

substances, or at dangerous heights) or where large sums of money are involved (such

as handling cash).

Servant leadership

This term, created by Robert Greenleaf in the 1970s, describes a leader who is

often not formally recognized as such. When someone, at any level within an

organization, leads simply by meeting the needs of the team, he or she is described as a

"servant leader." In many ways, servant leadership is a form of democratic leadership,

because the whole team tends to be involved in decision making. Supporters of the

servant leadership model suggest that it's an important way to move ahead in a world

where values are increasingly important, and where servant leaders achieve power on

the basis of their values and ideals. Others believe that in competitive leadership

situations, people who practice servant leadership can find themselves left behind by

leaders using other leadership styles.

Task-Oriented leadership

Highly task-oriented leaders focus only on getting the job done, and they can

be quite autocratic. They actively define the work and the roles required, put

structures in place, plan, organize, and monitor. However, because task-oriented

leaders don't tend to think much about the well-being of their teams, this approach can

suffer many of the flaws of autocratic leadership, with difficulties in motivating and

retaining staff.

People-oriented leadership or relations-oriented leadership

This is the opposite of task-oriented leadership. With people-oriented

leadership, leaders are totally focused on organizing, supporting, and developing the

people in their teams. It's a participative style, and it tends to encourage good

teamwork and creative collaboration. In practice, most leaders use both task-oriented

and people-oriented styles of leadership.

Transactional leadership

This style of leadership starts with the idea that team members agree to obey

their leader totally when they accept a job. The "transaction" is usually the

organization paying the team members in return for their effort and compliance. The

leader has a right to "punish" team members if their work doesn't meet the pre-

determined standard.

Team members can do little to improve their job satisfaction under transactional

leadership. The leader could give team members some control of their income/reward

by using incentives that encourage even higher standards or greater productivity.

Alternatively, a transactional leader could practice "management by exception" –

rather than rewarding better work, the leader could take corrective action if the

required standards are not met.

Transactional leadership is really a type of management, not a true leadership style,

because the focus is on short-term tasks. It has serious limitations for knowledge-

based or creative work.

Transformational leadership

People with this leadership style are true leaders who inspire their teams

constantly with a shared vision of the future. While this leader's enthusiasm is often

passed onto the team, he or she can need to be supported by "detail people." That's

why, in many organizations, both transactional and transformational leadership are

needed. The transactional leaders (or managers) ensure that routine work is done

reliably, while the transformational leaders look after initiatives that add value.

Charismatic leadership

A charismatic leadership style can seem similar to transformational leadership,

because these leaders inspire lots of enthusiasm in their teams and are very energetic

in driving others forward. However, charismatic leaders can tend to believe more in

themselves than in their teams, and this creates a risk that a project, or even an entire

organization, might collapse if the leader leaves. In the eyes of the followers, success is

directly connected to the presence of the charismatic leader.

Kotter’s distinction between managers and leaders

No. What Managers do What Leaders do

1. Prepare plans and budgets,

setting targets or goals for the

future, to manage complexity

Set a direction, develop a vision of

where the organization should be

going and the strategy for change to

achieve that vision

2. Ensure the organization has the

capacity to achieve the targets

and goals by organizing (deciding

on structures and roles) and

staffing (filling those roles with

the right people)

Aligning people to the direction being

set, communicating it to people and

building commitment to it

3. Making sure that the plan is

fulfilled by controlling what is

done and solving problems

Motivating and inspiring people so that

they work to achieve the vision,

drawing on their needs, values and

emotions.

DIFFERENCE BETWEEN A LEADER AND A BOSS

A BOSS A LEADER

Tells what to do ¤ Tells why to do and how to do

Relies on authority ¤ Depends on good will

Drives his men ¤ Inspires his men

Delegates responsibility ¤ Delegates authority only

Shows who is wrong ¤ Shows what is wrong

Demands respect ¤ Commands respect

Production oriented ¤ People oriented

Blames others for failure ¤ Gives all credit for all successes

Believe in “I” ¤ Believes in “WE”

Lesson 6

Training and Development

6.1. Introduction

The efficiency of an organization depends directly on how capable its

personnel are and how they are motivated to work and the type of training they

receive. While the personal capability of the Government servants is evaluated

through proper selection procedure, the training is taken care of by the organization

after they are employed by the organization. In Indian organization, training and

development activities have assumed high importance in recent years because of

their contributions to the achievement of organizational objectives.

6.2. Meaning and Definition

The term training is concerned with imparting specific skills for

particular purpose. Training is an unending process. Even for the aged workers, they

need to be refreshed, to enable them to suit to the changing environment. Thus

training is inevitable to any organization.

According to Flipo training is “the act of increasing the knowledge and

skills of an employee for doing a particular job”.

According to William G. Torpey training is “the process of developing

skills, habits, knowledge and aptitude in employees for the purpose of increasing the

effectiveness of employees in their present Government positions as well as

preparing for future Government positions”.

6.3. Objects of Training

Training plays a vital part in public administration. It is essential not

only for effecting efficiency of administration but also for broadening the vision of

the employees. It teaches him precision, makes him self-reliant and independent

and develops in him capacity to take decisions and arrive at judgments. Training

has, therefore, been described as a continuous process. It enables an employee to

adjust himself to the new situations and comprehend the goals and values of the

organisation in which he is to work.

The Assheton Committee on the Training of the Civil Servants in U.K.

(1966) has very well explained the main objectives of training in the words. “In any

large-scale organisation, efficiency depends on two elements, the technical

efficiency of the individual to do the particular work allotted to him and the less

tangible efficiency of the organisation as a corporate body derived from the

collective spirit and outlook of the individuals of which the body is composed.

Training must have regard to both elements.”

6.6. Aims of Training

Training endeavors to produce a civil servant whose precision and

clarity in the transaction of business can be taken for granted. It helps attuning the

civil servant to the task he is called upon to perform in a changing world. It, in other

words, helps him to adjust his outlook and methods to the changing needs of new

times. It saves the civil servant from becoming a robot-like mechanically perfect civil

servant. He is made aware of his work and the service that he is required to render

to his community. It not only enables an individual to perform his current work

more efficiently but also fits him for other duties. It develops in him capacity for

higher work and greater responsibilities. It pays substantial regard to staff morale

as the latter have to perform tasks of a routine character throughout their lives.

According to a Report, “Large numbers of people have inevitably to

spend most of their working lives upon tasks of a routine character and with this

human problem ever in the background training plans to be successful must pay

substantial regard to staff morale.”

For the performance of certain peculiar activities pertaining to the

government training plays a significant part. For instance, Government must make a

provision for training policemen, firemen and food inspectors, etc. Training helps

the employees to become people-oriented and inculcates in them respect and regard

for the general public.

Even Assheton Committee had observed thus, “Nothing could be more

disastrous than that of the civil service and the public should think of themselves as

in two separate camps. The inculcation of the right attitude towards the public and

towards business should therefore be one of the principal aims of Civil Service

Training.”

It broadens the vision and widens the outlook of the employees by

explaining to them national objectives and exhorting them to make substantial

contribution towards their realization. According to Nigro, “the function of training

is to help employees grow, not only from the standpoint of mechanical efficiency but

also in terms of the broad outlook and perspective which public servant need.”

It is vital to a career service. It fits them for advancement which is

assured to the employees when they join the government service at young age. It

improves the tone and adds to the quality of organisations. Since it enhances the

efficiency of the employees and develops their capacities, the efficiency and prestige

of the department goes up. It fosters homogeneity of outlook and esprit de corps in

the employees. Caldwell correctly remarked, “Effective administration requires

effective training towards organizational goals because of the harm that may be

expected when people are left to train themselves without effective guidance or

support.”

6.5. Need for Training

Every organization should provide training to all the employees

irrespective of their qualifications and skills because of environmental changes,

organizational complexity, Human relations, job requirements and

Change in the job assignment

6.5.1. Environmental Changes

Mechanization, computerization, and automation have resulted in

many changes that require trained staff possessing enough skills. The organization

should train the employees to enrich them with the latest technology and

knowledge.

6.5.2. Organizational Complexity

With modern inventions, technological upgradation, and diversification

most of the organizations have become very complex. This has aggravated the

problems of coordination. So, in order to cope up with the complexities, training has

become mandatory.

6.5.3. Human Relations

Every management has to maintain very good human relations, and

this has made training as one of the basic conditions to deal with human problems.

6.5.6. Job Requirements

An employee’s specification may not exactly suit to the requirements of

the job and the organization, irrespective of past experience and skills. There is

always a gap between an employee’s present specifications and the organization’s

requirements. For filling this gap training is required.

6.5.5. Change in the Job Assignment

Training is also necessary when the existing employee is promoted to

the higher level or transferred to another department. Training is also required to

equip the old employees with new techniques and technologies.

6.6. Importance of Training

Training of employees and manger are absolutely essential in the

changing environment. It is an important activity of Human Resource Development

which helps in improving the competency of employees. Training gives a lot of

benefits to the employees such as improvement in efficiency and effectiveness,

development of self confidence and assists everyone in self management. The

stability and progress of the organization always depends on the training imparted

to the employees. Training becomes mandatory under each and every step of

expansion and diversification. Only training can improve the quality and reduce the

wastages to the minimum. Training and development is also very essential to adapt

according to changing environment because training improves the efficiency of the

employees in administration; training improves the occupational skill and

knowledge of the employees, so that they can do their work effectively; training

inducts a new employee into the organisation and imparts him knowledge of the

goals and objectives of the organisation, his own role in the organisation and

techniques and methods of carrying out his duties. Consequently, the employees can

best contribute to the attainment of organizational goals; because there are constant

changes in the and techniques of the organizations, training adjusts the employees

with the new organizational changes; training makes up for the deficiencies of the

newly recruited persons.  Fresh University graduates are given necessary training to

shape and mould them in the desired direction and make them suitable for

government work; training keeps the employees informed about the latest

developments in his field and thus, keeps his knowledge up-to-date; training

improves the integrity and morale of the employees. The very existence of the

training process gives the trainees an added sense of dignity and in their work and

office; training develops a-sense of community service and belongingness in the

employees. They realize that their work is an essential part of the organisation and

the community. Therefore, they put more efforts in their work. This gives the

employees a sense of pride and self-fulfillment in their work. It is, therefore, said

that everybody in the civil service must get an opportunity of training of one kind or

other; training makes the employees, people oriented it inculcates a basic principle

ill them, that they are public servants and not masters. This is necessary in a

democratic administrative system; training prepares the employees for higher

positions and greater responsibilities; and finally, training fosters homogeneity of

outlook and broadens the vision and outlook of the employees.

6.7. Role of Training

Governmental functions have increased manifold. In order to run the

organization more efficiently and effectively, training has become an integral part in

any governmental organization. Thus, training is necessary for different reasons.

They are to increase, the efficiency of the personnel, to increase the morale of the

employees, to bring about better human relations, to reduce supervision and to

increase organizational viability and flexibility.

6.8. Types of Training

Various types of training can be given to the employees such as

induction training, refresher training, on the job training, vestibule training, and

training for promotions. Some of the commonly used training programs are pre

service training, post entry training, in-service training, promotional training,

specialized training and vestibule training.

6.8.1. Pre-Service Training

The training that is available to the Government servants before

entering into the Government jobs is called pre service training. Pre service training

is offered if the form of institutional training or practical training or institutional

and practical training. The training that is offered to the Doctors in the form of

House Surgeonship is called pre service practical training. The apprenticeship

training that is available to the Engineers before entering into the regular jobs is

called pre service practical training. The Government servants working in the co-

operative Departments generally get one year institutional training in the Co

operative Training before they are regularly appointed in the Co operative

Department. The B.Ed training available to the teachers working in the Government

schools consists of both institutional training and practical training.

6.8.2. Post Entry Training

The training that is available to the Government servants as soon as

they are posted to the Government service is called post entry training. This training

consists of both institutional training and practical training. As soon as the

candidates are posted to the Indian Administrative Service they get four months

foundational course training in Sri lal Bahadhur Shastri National Academy of

Administration situated at Mussoorie. After the foundational course training is over

they are given six months institutional training in the Academy. After that they are

sent to the District headquarters to get practical training under the control of

District Collector. During the practical training they learn the work by doing it. After

the Practical training they learn the work by doing it. After the practical training is

over, they get another six months institutional training at Mussoories. After that

they are regularly appointed as Sub Collectors in Revenue Division or as Assistant

Secretaries in the State or Central Secretariat. In the same way, the officers recruited

to other All India Services, central Services Class 1 Class 2 get institutional and

practical training immediately after their posting.

6.8.3. In-Service Training

When the officials are in-service, they are given training to adapt to the

changes in the administration. This type of training is called in-service training.

6.8.6. Promotional Training

The training that is available to the Government servants immediately

after promotion is called promotion training. Since promotional training is available

to the Government servants while they are in service, this training is called in-

service training. Since this training is given to the Government servants for less than

six months, this training is also called short-term training. When a person is

promoted from one position to another higher position his duties and

responsibilities increase. If he has to discharge his new duties and responsibilities

properly promotional training is necessary. In India, Government servants are

provided promotional training immediately after promotion.

6.8.5. Specialized Training

When a person is transferred from one position to another specialized

position, he is given training. This training is called specialized training. This

training is also called in service training or short-term training. For example in the

Police Department there is direct recruitment only for Law and Order Division and

Armed Police Division. There are number of specialized divisions in the Police

Department. The Police belonging to Law and Order Division and Armed Police

Division are transferred to other specialized divisions after specialized training. This

training is necessary for the Government servants to discharge their specialized

functions more efficiently.

6.8.6. Vestibule Training

It is the training on actual work to be done by an employee but

conducted away from the work place.

6.8.7. Refresher Training

The Government provides training to the Government servants to

refresh their knowledge so that they could discharge their duties and

responsibilities properly. This training is called refresher training. When a

person is promoted, he gets promotional training. A person becomes eligible for

promotion between 3 to 8 years in Government services. Sometimes a person has to

remain in the same positions for 15 or 16 years though he is eligible for promotion.

For such persons to reorient and refresh their knowledge, refresher training is

given. Refresher training is also called in service training and short-term training.

6.8.8. Informal Training

Informal training, according to Mandel, “occurs in the day-to-day

relationship of employee and superior, in conferences and staff meeting, in

employee news papers and organization publications, at meetings of professional

associations and in the reading and study that the employee undertakes at his own

volition or at his supervisors’ suggestion. Because, such training is connected with

the regular tasks of the employee, he can best integrate with his own experience and

thereby profit from it. Since there is no compulsion connected with it, his motivation

is positive, its influence whether good or bad is profound.

Evidently, informal training is training by doing the work, learning by

trial and error, and acquiring administrative skill through practice. This type of

training was adopted by the British in India. “As good collections’ house,” according

to Gorwala, was often a second home to the young Assistant Collector.”

Personal contacts between the senior officials and the new entrants

helped the latter to learn the details about the job. Such an informal type of training

stimulated qualities of initiative and administrative leadership and developed in the

fresh recruits capacity to feel responsibility and rise to the occasion. Trevelyan

rightly observed, “The real education of the civil servant (in India) consists in the

responsibility that devolves on him at an early age which brings out whatever good

there is in a man the varied and attractive character of his duties and the example

and precept of his superiors who regard him rather as a younger brother than

subordinate official.” The success of this system depends upon certain factors, viz.,

experience and seniority of the superior officer; his interest in the new entrant;

persistent effort on the part of the new entrant.

Tickner, Director of Training and Education, H.M. Treasury, rightly

pointed out, “It is the hard way of learning and can fully succeed only in case of the

most persistent pupils. In the case of the average employee, it may lead to the

formation of bad habits and breed much frustration and discouragement.”

Hence, it has been rightly suggested by Gorwala that “suitable senior officers

should be posted to some districts despite their seniority with a view to make these

districts training-ground for the young.”

6.9. Evaluation of Training

Though, the different kinds of training are quite necessary for all the

Government servants, unfortunately the different kinds of training are not available

to all the Government servants. Since the different kinds of training are necessary to

the entire Government servant, the Government should take necessary steps to

provide different kinds of training to al the Government servants. In India most of

the training institutions are not provided with sufficient infra structural facilities.

Some training institutions do not even have the basis facilities such as proper class

rooms, library etc., The Government should take necessary steps to provide

sufficient infra structural facilities to al the training institutions. The syllabi

prescribed to train the Government servants are not in tune with the changes in the

Government service. The syllabi should be updated taking consideration of the

changes in the Government services. It is generally complained that there is no

linkage between the training offered and the job the Government servants take up.

As a result the Government servants find it difficult to perform their duties

immediately after appointment. The Government should take steps to provide

training taking into consideration of the job the government servants have to take

up. There is another complaint that more emphasis is given to institutional training

the practical training in the post entry training. The government should take steps

to give more emphasis on practical training rather than the institutional training.

The scholars of Public Administration say that the training is not continuous. Since

lot of changes is taking place in the administrative machinery, the Government

servants should be provides continuous training to keep in tune with the changes in

the administrative machinery.

6.10. Training and Development

Training and development is vital part of the human resource

development. It is assuming ever important role in wake of the advancement of

technology which has resulted in ever increasing competition, rise in customer’s

expectation of quality and service and a subsequent need to lower costs. It is also

become more important globally in order to prepare workers for new jobs. In the

current write up, we will focus more on the emerging need of training and

development, its implications upon individuals and the employers.

Noted management author Peter Drucker said that the fastest growing

industry would be training and development as a result of replacement of industrial

workers with knowledge workers. In United States, for example, according to one

estimate technology is de-skilling 75 % of the population. This is true for the

developing nations and for those who are on the threshold of development. In Japan

for example, with increasing number of women joining traditionally male jobs,

training is required not only to impart necessary job skills but also for preparing

them for the physically demanding jobs. They are trained in everything from sexual

harassment policies to the necessary job skills.

6.11. Need for Training and Development

Before we say that technology is responsible for increased need of

training inputs to employees, it is important to understand that there are other

factors too that contribute to the latter. Training is also necessary for the individual

development and progress of the employee, which motivates him to work for a

certain organisation apart from just money. We also require training update

employees of the market trends, the change in the employment policies and other

things.

The following are the two biggest factors that contribute to the

increased need to training and development in organizations. They are change and

development. The word change encapsulates almost everything. It is one of the

biggest factors that contribute to the need of training and development. There is in

fact a direct relationship between the two. Change leads to the need for training and

development and training and development leads to individual and organisational

change, and the cycle goes on and on. More specifically it is the technology that is

driving the need; changing the way how businesses function, compete and deliver.

Development is again one the strong reasons for training and development

becoming all the more important. Money is not the sole motivator at work and this

is especially very true for the 21st century. People who work with organisations

seek more than just employment out of their work; they look at holistic

development of self. Spirituality and self awareness for example are gaining

momentum world over. People seek happiness at jobs which may not be possible

unless an individual is aware of the self. At ford, for example, an individual can

enroll himself/herself in a course on ‘self awareness’, which apparently seems

inconsequential to ones performance at work but contributes to the spiritual well

being of an individual which is all the more important. The critical question however

remains the implications and the contribution of training and development to the

bottom line of organisations performance. To assume a leadership position in the

market space, an organisation will need to emphasise on the kind of programs they

use to improvise performance and productivity and not just how much they simply

spend on learning.

6.12. Stages in a Training Program

The success of a training program is evaluated in terms of the end

result or the increase in the work ability, skill or competency in the trainee. For any

training program to be successful it is very essential to follow a certain process.

They are assessment, development, delivery and evaluation.

6.12.1. Assessment

The process of training begins with the needs assessment stage. The

aim of the assessment stage is to understand whether or not training is required. If

the answer is yes; the next step is determining competency or skills gaps and the

appropriate training intervention required. The training intervention is essentially

decided in terms of attitude, knowledge and skill (ASK), the combination of which is

called as competency. The assessment also called as the ‘training needs analysis’ is

undertaken at three levels, the job, the individual and organisational analysis.

6.12.2. Development

Once the training needs analysis is complete, the next stage is that of

Development. This stage involves the development of content and the training

material. Right from designing the appropriate environment to deciding the various

tools, everything is taken care of in the development stage. Games, A/V’s, Case

Studies, Class room intervention are various means that may be decided upon apart

from the content delivered. For example, in behavioural training emotional

intelligence, teamwork, listening are examples of competencies that are required to

perform superior work. The same may be transferred into the trainees through any

of the above means depending upon various factors like demographics, job nature

etc which are taken care of in the first stage.

6.12.3. Delivery

The most important stage and perhaps the least talked upon from the

training process is the delivery. Once the development stage is over it is time to

conduct the training. Factors like time and venue of delivery are already decided in

the earlier stages. There are various factors that determine the process of delivery

like the participant demographics, the training intervention, the individual style of

the trainer etc. This brings in a lot of diversity to the training programs.

6.12.6. Evaluation

Evaluation is the last stage in the training process and more important

from the perspective of evaluation of the effectiveness of training. Needless to say, it

is aimed at analysing whether or not the training has been effective in achieving the

objective (bridging the competency gap, changing the attitude, developing new skills

etc). There are various ways in which the effectiveness of training programs can be

evaluated but not many are able to answer in terms of ROI. The most effective tool

for evaluation of training is the Kirk Patrick Model of Evaluation.

In order for the evaluation to be effective the both the criteria and

design for training program is decided so that there is no discrepancy and the

participants are able to evaluate the benefits effectively for themselves. The

evaluation is made on the basis of participant reaction to the training, their learning

and the change in behaviour. This feedback is then reused in the first step ‘training

needs analysis’ for making future training more effective.

6.13. Central Training Institutes

In India, training for public services has been a long established

practice with some training institutes, which had been in existence, during pre-

independence days, at the time of East India Company. Though there were

institutions like College at Fort Williams in Calcutta (1800- 1806), East India College

(1809- 1857) popularly known as Haileybury College, which were providing some

sort of post-entry training to their higher civil servants, it was only after

independence that training became a focal point of concern of the government. The

need for training was felt to improve the quality of civil servants, and therefore it

become an integral-part of the personal policies of the, government. Almost all the

reports on administrative reforms from Gorwala report on Public Administration

(1951) to reports of Administrative Reforms Commission (ARC) (1966-72) and

those in the post ARC period have emphasised'the need for a systematic and

coherent training and career development of public services.

The Administrative Reforms Commission was of the view that training

is an investment in human resources, it is an important means of improving the

human potential and increasing the efficiency of personnel. Training, the

Commission felt was necessary immediately on induction to the service and after

some years of experience a person must receive training to suit the specific needs of

one's particular field. It laid considerable stress on mid-career management training

and also recommended training for middle as well as senior management.

As a result of these attempts a number of training institutions have

been set up at the Central and State levels to impart training in administration and

management techniques with a view to cater to the generalised and specific needs of

personnel of public services. The Lal Bahadur Shastri National Academy of

Administration, the premier Central Training Institutions trains the Indian

Administrative Service personnel after entry as well as, later, in their mid-career,

through refresher courses, besides conducting on-entry foundational training for

probationers of different non-technical Group A Services. With the explosion in the

number of trainees, Academy cannot cater to the total training needs of all hence

various training programmes have now been assigned to different Institutes, where

not only Indian Administration Service officers, but even others are sent. These are

referred to as Central Training Institutions and National Training Institutions. These

include institutions set up by the government to cater to the training needs of All

India and Central Services like Sardar Patel National Police Academy, Hyderabad,

Forest Research Institute, Dehradun, Academy of Direct Taxes, Nagpur, Radway

Staff College, Vadodara, Postal Staff College, New Delhi etc.

In addition to these, the banking institutions and public sector

undertakings also have their own training centres. Training institutions in the area

of rural development have been set up too like for instance, the National Institute of

Rural Development at Hyderabad, the Institute of Rural Management, Anand. These

institutions are doing pioneering work in training for management of rural

development. A number of state governments have also established their own State

Training Institutes (STI's) which provide post entry and in-service training to

members belonging to state civil services and other employees of government

departments, about which you will study later.

The training institutions, besides conducting their, own technical and

professional programmes, organise short-duration, mid-career courses like

Management Development Progratnmes (MDP), Executive Development

Programmes (EDP), Management in Government Programmes (MIGP), depending

on the seniority groupings of the trainees. The content of the training programines

cover areas like Personnel Management, Human Resources Development,

Behavioural Sciences, Financial Administration, Rural Development, Municipal

Administration, Organisation and Methods, Industrial Relations etc. The training

institutes manage these programmes partly through their own faculty and partly

through guest faculty invited from outside for their specialisation, expertise and

experience in the specific

areas of work.

6.16. State Training Institutes

The state civil services functioning at the intermediate levels constitute

an important component to the civil services in India. In recent years, with the

significant change in the nature and functions of the state government which

includes maintenance of law and order, civic services, revenue collection,

development activities, there has been considerable increase in the number of

entrants to these services and other staff. The new tasks of government, calls for

increasing degree of specialisation, modem management skills and techniques and

also understanding and commitment on the part of personnel, to perform the tasks.

Training effort, by and large, in most states, has for long been a

neglected aspect. The need for imparting institutional and on the job training to civil

servants at various levels in the states has been emphasised by different

Administrative Reforms Committees. These include Maharashtra Administrative

Reorganisation Committee (1962-68), Andhra Pradesh Administrative Reforms

Committee (1966-65), Mysore Pay Commission (1966-68). The need for formal and

institutional training for civil servants was also clearly recognised by the

Administrative Reforms Commission and

its study team on State Level Administration (1967-69). Both recommended that

each state should have a training college/institution. The study team felt that

"training is a continuous process and should be imparted not only to new recruits

but also to those who are already in service. In a few states the institution of the

officer’s training school is not in vogue. It is desirable that each state should have an

officer Training School of its own". All these led to increasing awareness of training

amongst the states and paved the way for setting up of State Training Institutes

(STIs) in their respective states for providing post entry and in-service training to

their employees.

There are about twenty one State Training Institutes. Some of the

important ones are Institute of Administration, Hyderabad, Sardar Pate1 Institute of

Public Administration, Ahmedabad, Haryana Institute of Public Administration,

Chandigarh, Himachal Radesh Institute of Public Administration, Shimla, Institute of

Management in Government, Trivandrurn, Punjab State Institute of Public

Administration, Chandigarh, HCM Rajasthan State Institute of Public Administration,

Jaipur, Administrative Training Institute, Calcutta, Administrative Training Institute,

Nainital, and State Planning Institute, Lucknow.

6.16.1. Functions of State Training Institutes

The State Training Institutions normally performs some specific

functions. They provide training to officers of the All India Services allotted to the

state with a view to acquainting them with the socio-economic, cultural and

historical background of the state and the administrative system of the state

government relevant to their functions and to sensitise them to problems peculiar

to the state. They conduct courses for officers of the All India Services and the state

services which are sponsored by the various concerned ministries of the

Government of India. They organise foundation courses for officers of the state civil

services with a view to foster a spirit of camaraderie in them and to orient them to

common basic values of the administrative system of the state. They organise

induction courses for directly recruited officers of the State Administrative Services

and such other services which do not have induction training facilities in their

concerned departments. Training is imparted, at times, in specific areas like general

management, financial management, office management, computer application etc.,

in cases where the departments concerned do not have adequate infrastructure to

impart training in the above areas. They conduct refresher and in-service training

courses for officers of the state government in specific areas of interest. They

organise programmes for training of trainers of the departments and other training

institutions in the state. They ensure that appropriate and adequate training is

imparted to officials of all the departments at all stages and at suitable intervals at

departmental and other ining institutions and coordinate all such activities in the

state.

As discussed earlier there are about twenty one State Training

Institutes in our country and it is necessary to bring about some degree of

uniformity in their structure and activities. This can be done, by identifying the State

Training Institutes as the professional training institution for the State

Administrative Service, adopting the pattern of training as imparted by National

Academy of Administration (for IAS), for the State Administrative Service and also

making the State Training Institutes responsible for conducting a common

foundational course for direct entrants to Class II civil services to be followed by an

Induction Training Programme.

6.16.2. State Training Institution as a Nodal Agency for Training

The State Trading Institution as the Apex or nodal state level

institution has a very important role to play in the training of personnel in the State.

The main role of this institution is to not only organise induction, refresher, in-

service training programme for the main services of the state, but also to assess the

training needs of officers at different levels of all the departments/organisations at

the state, and provide necessary training programmes. It has to draw up master

plans for training of all the civil servants in the state. If the ST1 has to discharge its

nodal role effectively, it has to assume the responsibility of evaluating training

activities from time to time with a view to upgrading the standards of training.

The state training institute if it has to develop as a centre of excellence

in training has to develop and linkages with relevant national level institutions in

the country, horizontal linkag vertical with other STI's functioning at the same level

in other states so as to strengthen each other and provide a Co operation effect in

the field of training. For instance, the Himachal Pradesh lnstitute of Public

Administration has ten branches at its districts. Similarly the Institute of

Management in Government, (Kerala) has two centres at Cochin and Calicut.

Another important aspect is the training of trainers of the Institute, as the quality of

trainers determines the impact of the training programmes. The trainers need to be

exposed to field research work where they are confronted with real life problems

faced by the trainees encouraged to develop case studies for discussion during

training programmes. They are also made aware of developments in training

technologies on a continuous basis. Replacing the lecture system by more

sophisticated systems like syndicates, role play, case study methods etc. becomes an

absolute necessity. Also if the State Training Institutes has to discharge its nodal role

effectively, it has to assume the responsibility evaluating the training activities from

time to time with a view to upgrading the standards of training.

The general approach to training and crucial role that the State

Training Institutes has to play in the overall context of training in the state, should

be unexceptionable with necessary modifications to take into account the special

circumstances and conditions in a particular state.

6.15. Conclusion

In this lesson an attempt has been made to provide the data relating to

meaning, objects, aims, need and importance of training, types of training, stages in

training programme, training and development, Central Training Institutions and

State Training Institutions.

6.16. Model Questions

1. Bring out the meaning, objects, aims, need and importance of training

2. Explain the different types of training

3. Write an essay on training and development

4. Write a critical essay on Central and State Training Institutions

Lesson 7

Motivation

7.1. Definition:

Motivation is defined as the feeling based on which a person acts or behaves

regarding a particular task or activity. Motivation is a human psychology factor

which drives or pushes a person to behave in a particular way. When the motivation

is positive, a person is happy, energetic, enthusiastic & self-driven and when it is

negative motivation, person is demoralized, sad, lethargic & pessimistic.

7.2. Importance of Motivation:

Motivation is an important psychological factor for any individual as it defines the

work, ambition and drive of that person to do any work. A person with high levels of

motivation is motivated to do good quality work, help others, spread their energy

and focus on achieving goals. On the contrary, a person with low levels of

motivation, demotivates others, works shabbily and creates a negative atmosphere.

Motivation is an important human factor in an individual’s personal as well as

professional life. Positive motivation for people is required in every field like

business, sports, politics, entrepreneurship etc. Motivation is the desire of an

individual to work towards a motive, which is a certain task. In business, good

motivation helps employees learn important managerial skills like leadership, team

management, time management, decision making, communication etc.

7.3. Types of Motivation:

Motivation is driven by several factors which influences the behavior and attitude of

an individual. Based on the different factors and the kind of impact it has on a

person, there are different types of motivation. The different types of motivation in

people are:

1. Intrinsic Motivation: Intrinsic motivation is the type of motivation which comes

from within a person to do a task or achieve a particular goal. It is a feeling of being

self-driven and achieving objectives for oneself. Intrinsic motivation is driven by

motives like social acceptance, eating food, desires to achieve goals, biological needs

etc.

2. Extrinsic Motivation: Extrinsic motivation is the type of motivation which drives

an individual due to external forces or parameters. Some other person or

organization motivates the individual to work hard to achieve certain goals or tasks.

Extrinsic motivation is driven by motives like financial bonus, rewards,

appreciation, promotion, punishment, demotion etc.

3. Positive Motivation: Positive motivation is the type of motivation which drives an

individual by offering positive accolades and rewards for performing a task. In this

type of motivation, the individual is rewarded by monetary benefits, promotions etc

which drives an individual to work hard.

4. Negative Motivation: Negative motivation is a type of motivation where fear and

threat are used as a parameter to get the work done. In this type of motivation,

individuals are threatened with things like demotion, reducing benefits,

withdrawing merits etc.

7.4. Factors Influencing Motivation:

Keeping employees motivated is the biggest challenge for companies for ensuring

that they give a high productive output at work and help in achieving company

goals. A positive motivation amongst employees helps drive the business positively

& enhances creativity. On the other hand, a demotivated employee will not

contribute efficiently and slowdown progress at workplace. The key elements & top

factors which influence motivation amongst employees in business or people in

general are as follows:

1. Salary: Monetary compensation & benefits like gross salary, perks, performance

bonuses etc are the biggest motivation factors. The better the salary and monetary

benefits, the higher is the motivation level & passion of a person towards a job.

2. Recognition: Rewards, recognition, accolades etc are important for ensuring high

motivation levels for an employee. If the hard work of an individual is appreciated, it

keeps them motivated to perform better.

3. Work Ethics: Ethical working environment, honesty etc are important factors for

the motivation levels for any individual. Good work ethics in a company helps keep

employees motivated at work place.

4. Transparency with Leadership: The leadership in an organization helps in

employee motivation if there are transparent discussion and flatter hierarchies. The

senior management has to ensure that all subordinates are happy, focused &

motivated.

5. Culture at Work: A good, vibrant, positive culture at workplace is always an

important factor of motivation. People from different backgrounds, religions,

countries etc working together helps create a social bond at workplace.

6. Learning and Development: Another factor influencing motivation is the training

and development opportunities that a person gets. L&D helps individuals develop

more skills and have better opportunities in their professional career.

7. Work Life Balance: Having a good quality of work life (QWL) helps in the

motivation of people. A good work life balance ensures that a person can give

quality time to both office work as well as family.

8. Career Growth Opportunities: Career development opportunities have a positive

influence on the motivation of any person. If a person knows their future & career

path is secure, they tend to work with more passion.

9. Health Benefits: Health benefits, insurance & other incentives act as a source of

motivation for people. If the medical bills, hospitalization charges etc are taken care

of by the company, it helps build a strong trust.

10. Communication: A positive & transparent communication between managers

and subordinates gives a sense of belonging and adds to the employee’s motivation.

Discussion related to work as well as personal life help make a friendly bond at

workplace.

7.5. Advantages of Motivation:

There are several advantages of an employee being motivated at work. Some of the

main benefits of motivation for employees and companies are as follows:

1. Feeling of belongingness and self-respect.

2. A motivated employee is excited to learn and contribute more.

3. Higher productive output due to positive motivation.

4. Reduced absenteeism and lower attrition.

5. Employees high on motivation help reduce costs & improve profits.

6. Reduce stress & anxiety at workplace.

Disadvantages of Motivation:

Despite several advantages, there are some probable drawbacks of motivation.

Some of them are:

1. Motivation is a relative feeling and hence there is no way of ensuring that

everyone would feel the same way.

2. Motivating employees in a company requires additional efforts, money and time

on employee related activities.

3. Motivation among people is mostly a short-term feeling. Afterwards a person

becomes demotivated or even uninterested about a particular task.

7.6. Motivation Theories

Motivation is a state-of-mind, filled with energy and enthusiasm, which drives a

person to work in a certain way to achieve desired goals. Motivation is a force which

pushes a person to work with high level of commitment and focus even if things are

against him. Motivation translates into a certain kind of human behaviour. 

It is important to ensure that every team member in an organization is motivated.

Various psychologists have studied human behaviour and have formalized their

findings in the form various motivation theories. These motivation theories provide

great understanding on how people behave and what motivates them.

Motivation is a huge field of study. There are many theories of motivation. Some of

the famous motivation theories include the following:

1. Maslow’s hierarchy of needs

Abraham Maslow postulated that a person will be motivated when his needs are

fulfilled. The need starts from the lowest level basic needs and keeps moving up as a

lower level need is fulfilled. Below is the hierarchy of needs:

Physiological:  Physical survival necessities such as food, water, and shelter.

Safety:  Protection from threats, deprivation, and other dangers.

Social (belongingness and love):  The need for association, affiliation,

friendship, and so on.

Self-esteem:  The need for respect and recognition.

Self-actualization:  The opportunity for personal development, learning, and

fun/creative/challenging work.  Self-actualization is the highest level need  to

which a humanbeing can aspire.

The leader will have to understand the specific need of every individual in the team

and accordingly work to help fulfil their needs. 

2. Hertzberg’s two factor theory

Hertzberg classified the needs into two broad categories namely hygiene factors and

motivating factors.

Hygiene factors are needed to make sure that an employee is not dissatisfied.

Motivation factors are needed for ensuring employee's satisfaction and employee’s

motivation for higher performance. Mere presence of hygiene factors does not

guarantee  motivation, and presence of motivation factors in the absence of hygiene

factors also does not work.

3. McClelland’s theory of needs

McClelland affirms that we all have three motivating drivers, and it does not depend

on our gender or age. One of these drives will be dominant in our behaviour. The

dominant drive depends on our life experiences. 

The three motivators are:

Achievement: a need to accomplish and demonstrate own competence People

with a high need for achievement prefer tasks that provide for personal

responsibility and results based on their own efforts.  They also prefer quick

acknowledgement of their progress.

Affiliation: a need for love, belonging and social acceptance People with a high

need for affiliation are motivated by being liked and accepted by others.  They

tend to participate in social gatherings and may be uncomfortable with

conflict.

Power: a need for control own work or the work of others People with a high

need for power desire situations in which they exercise power and influence

over others.  They aspire for positions with status and authority and tend to

be more concerned about their level of influence than about effective work

performance.

4. Vroom’s theory of expectancy

Victor Vroom stated that people will be highly productive and motivated if two

conditions are met:  1) people believe it is likely that their efforts will lead to

successful results and

2) those people also believe they will be rewarded for their success.

People will be motivated to exert a high level of effort when they believe there are

relationships between the efforts they put forth, the performance they achieve, and

the outcomes/ rewards they receive.

5. McGregor’s theory X and theory Y

Douglas McGregor formulated two distinct views of human being based on

participation of workers. The first is basically negative, labelled as Theory X, and the

other is basically positive, labelled as Theory Y. Both kinds of people exist. Based on

their nature they need to be managed accordingly.

Theory X:  The traditional view of the work force holds that workers are

inherently lazy, self-centred, and lacking ambition.  Therefore, an appropriate

management style is strong, top-down control.

Theory Y:  This view postulates that workers are inherently motivated and

eager to accept responsibility.  An appropriate management style is to focus

on creating a productive work environment coupled with positive rewards

and reinforcement.

Unit III

Lesson 8

Decision Making

Learning Objectives

At the end of the Lesson, the student will be able to:

1. Understand the meaning of Decision Making

2. Know the characteristics of Decision Making

3. Explain Herbert Simon’s Decision Making process

4. Find out various phases of Decision Making

5. Know various types of decision making in an organisation

8.0. Introduction

Decision-making is an integral part of modern management. Essentially,

Rational or sound decision making is taken as primary function of

management. Every manager takes hundreds and hundreds of decisions

subconsciously or consciously making it as the key component in the role of a

manager. Decisions play important roles as they determine both

organizational and managerial activities. A decision can be defined as a

course of action purposely chosen from a set of alternatives to achieve

organizational or managerial objectives or goals. Decision making process is

continuous and indispensable component of managing any organization or

business activities. Decisions are made to sustain the activities of all business

activities and organizational functioning.

Decisions are made at every level of management to ensure organizational or

business goals are achieved. Further, the decisions make up one of core

functional values that every organization adopts and implements to ensure

optimum growth and drivability in terms of services and or products offered.

H. A. Simon’s renowned work “Administrative Behaviour: A Study of Decision-

Making Process in Administrative Organisation” was published in 1948.

Herbert Simon divided the concept into two main parts:

- one is decision being arrived at and

- process of action.

8.1. Definitions of Decision Making

Decision is defined by Beaker as “Act by which individuals undertake to

perform one activity rather than another. In other words, all refer to a choice

between alternative lines of action at some juncture where the choice is not

given but appears to the person to be problematic.”

Rogers defines, “Decision Making is the process by which an evaluation of the

meaning and consequences of alternative lines of conduct is made.”

Barzun and Jacques have said that, “The hardest work of all is to think and

Decision Making is thinking.”

Moore says, “Decision Making is a blend of thinking and acting.” To think of

decision, only as making up of mind is a superficial view which overlooks all

the work which has to be done before taking decision.

Nickell, Rice and Tucker defined, “Decision Making as the process of selecting

from alternative courses of action.”

According to Allen, “Management – Decision Making is the work a manager

performs to arrive at conclusion and judgment.” Terry, “Decision Making is

the selection based on some criteria from two or more possible alternatives.”

Dawar , expressed that “Decision Making always may be defined as the

selection based on some criteria of one behavior from two or more possible

alternatives.”

8.2. Characteristics of Decision Making

1. Decision making is an integral part of planning. Every planner has to

choose an appropriate solution or alternative among the available

options.

2. It aims at choosing a suitable course of action by weighing and weeding

out several available alternatives.

3. It involves the judgment and discretion of the decision maker. It is not

an entirely rational process because decisions are bound to be affected

and colored by the personal likes, dislikes and whims of the manager

who makes them.

4. Decisions made by managers involve the commitment of the

organization to adopt a specific recourse of action and utilize resources

in a particular manner.

5. Decision making like managing is a human and social process implying

the interference of an individual as well as social factors. An intelligent

manager will always take into account the social and human

implications of a decision before making a final choice.

6. Decision making is a purposeful activity because it is directed towards

the achievement of a goal and objectives.

7. Decisions are made by managers to solve problems, resolve crises and

conflicts and tackle the situation.

8. Decisions made by managers may sometimes have a negative effect for

a short period of time.

9. Decision making requires enough liberty to be given to managers so

that they can also make use of their experience, skill and judgment.

10. Pervasiveness of decision making: Decision making is not only at the

core of planning but is also an important managerial activity.

11.Decision is the end process preceded by deliberation and reasoning.

12.Decision making is the mental process because the final selection is

made after thoughtful consideration.

13.Decision involves rationality because through decision an endeavor is

made to better one s happiness. ‟14.Decision is aimed out achieving the objectives of the organization.

15.It also involves the evaluation of the available alternatives because only

through critical appraisal one can know the best alternatives.

8.3. Phases in Decision-making process

Simon explains that decision-making is a process of problem definition, of

development alternatives, appraisal of alternatives and selection of solution.

Thus, according to Simon, the following stages are involved in administrative

decision-making:

1. Identification of Problem

This activity involves finding occasions to take decisions. For this the

executive has to analyse and understand the organisational environment. He

has to begin with the identification of the problem to be solved. Recognition

of such a problem establishes the need for a decision. Problem determination

involves intelligence activity.

2. Search for Alternatives

Once the problem to be solved has been recognised, the administrator begins

the search for all various possible courses or strategies or alternatives and

identifies the merits and advantages as well as problems involved in each of

the alternatives, which would achieve the solution to the defined problem.

This second step is called the design activity.

3. Evaluation of Alternatives

Once alternatives have been developed, the administrator begins the third

step: critically evaluating the different consequences and costs of all the

alternative courses available.

4. Selection of Solution

The last step in the decision-making process takes place when the strengths

and weaknesses of all the alternatives have been ascertained. The final step is

the selection of the most appropriate available alternative, which enables the

attainment of objectives at lowest cost. This is called the choice activity.

The four steps in the decision-making process mentioned above require

certain skills such as judgement, creativity, quantitative analysis and

experience. Although a small fraction of time is spent in choosing between

alternatives, a substantial chunk is spending on other related activities in the

decision-making process.

8.4. Hebert Simon's Behaviourist school of decision making process:

1) Scheme of Individual's Decision Choice.

2) Fact - Value Dichotomy.

3) Bounded Rationality

16.5.1. Scheme of Individual's Decision Choice.

Under the first aspect of Individual Decision Choice,Simon has listed the

following three steps that happen in it:

a) Intelligence activity stage:  The head of the organisation after

studying the organisational environment has identified the problem to be

solved and gives it the needed recognition so that the whole organisation

is aware of it and proceeds to its next step of resolution.

b) Design Activity stage:  Once the problem is identified the head of the

organisation begins searching for possible and suitable courses or

strategies or alternatives of action that could help resolve the issue in the

best possible manner and leading to positive and beneficial results for the

organisation. He then goes through the merits and demerits of each of

these alternatives and how they would work in regards to the issue and

the speculation of results.

c) Choice activity stage:  Once the alternatives have been developed the

administration proceeds to the choice activity stage which critically

evaluates the different consequences of all the alternatives available. After

the following is done, the decision is taken which seems the most

appropriate and can fulfill the objectives of the organisation. This stage

requires certain skills like judgment, creativity, quantitative analysis and

experience in the decision making process.

Simon emphasises on rational decision making but 100% rational decision

making is impossible as what is rational today might not be rational

anymore the next day in a complex situation or issue where a large

network of decisions is to be executed in different phases. But,maximum

rationalisation can be achieved in a simple or one time issue/situation.

The Fact - Value Dichotomy comprises of:

Simon in his writing asserts that each decision consists of a logical

combination of fact (proven examples) and value (good and bad/ morality,

culture or virtues) propositions. He states that as much as possible decisions

should be based on facts and not influenced by values much so that there is

uniformity in decision making universally and also decisions based on facts

are most beneficial as they are proven and tried and tested most of the time

and well calculated. He however made an exception for values stating that

values can take part in decisions relating to the fixation of end goals of a

policy while factual judgements shall be seen pre-dominant in the

implementation of such goals.

The third aspect that is bounded rationality 

Simon recognises these limitations to the decision-making processes and

disputes the concept of total rationality in administrative behaviour. He is of

the opinion that human behaviour is neither totally rational nor totally non-

rational. He, therefore, falls back on the concept of ‘bounded rationality’ to

explain the way in which decisions are made in reality. Operating under

conditions of ‘bounded rationality’ a practical decision-maker has not the wits

to maximise on decisions of any significance. On the other hand, he makes

only satisficing (a word derived from the combination of ‘satisfy’ and ‘suffice’)

decisions, that is, decisions do not maximise, and they only satisfy and suffice.

In other words, the practical decision-maker looks for a satisfactory course of

action in solving a problem rather than making an endless search for an ideal

solution. He takes into account only those few factors of which he is aware,

understands, and regards as relevant in making decisions.

Rationality in Decision Making

Simon has presented six types of rationality in decision making:

1) Subjective - A decision is subjectively rational if the decision maximises

attainment when compared to the knowledge of the subject that the

administrator has.

2) Objective - A decision is objectively rational where it is correct behaviour

for maximising given values in a given situation.

3) Conscious - A decision is consciously rational where adjustment of

means(methods,equipments and funds used to achieve an

end/objective/goal) to ends(end result/objective or goal) is a conscious &

planned process.

4) Deliberate: Decision is deliberately rational if the adjustment of means to

ends has been deliberately sought.

5) Personal: Decision is personally rational if the decision is directed to the

individual's goals.

6) Organisational: Decision is organisationally rational to the extent that it is

aimed at the organisation's goals.

8.5. TYPES OF DECISIONS IN AN ORGANIZATION:

Two types of decisions have been identified occurring in an organization-

1) Programmed decisions: Such decisions which could be seen having

repetitive components and where examples are present and somewhat

of a routine nature with fixed variables. These kind of decisions are

suitable to be delegated to lower levels of the organisation.

2) Non-Programmed decisions: Such decisions which are unique and

non-repetitive in nature having a new environment and variables.

These decisions are advised to be kept at the higher level of

management.

Simon argues that  rationality (principle of reason and logic/calculation)

can be increased by:

1) Promoting high degree of specialisation.

2) Applying scientific tools in the process of decision making like

PERT,computers,etc.

3) Promoting operations on the basis of market mechanism.

4) Promoting knowledge of political institutions.

5) Creating a wider base of knowledge so that rationality could be improved

in problem solving.

6) Proper and clear communication of decisions from top management right

to the bottom so all links and levels work in tandem and smoothly.

7) Trainings to be given to employees from time to time on decision making.

8.6. SOME OTHER MODELS OF DECISION MAKING BY DIFFERENT

THEORISTS.

1) CHARLES LINDBLOM's DECISION MAKING APPROACH - THE IDEA OF

INCREMENTALISM:

He was critical of Herbert Simon's approach and advocated that instead of

changing the whole area of where the issue arises, small and partial

adjustments should be made mutually which will then pass on gradually and

without any conflict spread to the whole little by little that is incrementally(a

series of increases). If a big decision is taken all of a sudden it might be

opposed as the people would find it hard to adjust to. He calls it as his paper

titles " The Art Of Muddling Through" that instead of rationalism, the

approach of Incrementalism is the best way since a public policy is mostly a

continuation of a previous policy or a better version of it and bears a strong

resemblance to its predecessor and so little by little changes are required

since the base is the same. The idea of this approach was basically acceptance

by public and legitimacy and is of short term perspective. And for this

approach a training is not required.

2) ETZIONI's MIXED SCANNING MODEL OF DECISION MAKING:

He has blended rationality and incrementalism in his model. He supported

Lindblom's approach but did not agree with him on the rationality part that

stated rationality should be done away with. He stated that in the beginning

the whole problem area should be seen broadly and then later on focus may

be made for detailed scrutiny of the smaller areas requiring urgent attention

because unless the whole area is not seen a problem cannot be identified and

the smaller areas will not come into focus.

3) YEHEZKIEL DROR - OPTIMAL MODEL OF DECISION MAKING:

Criticised Lindblom's approach as he felt that partial change as a solution to a

problem is not possible as the inertia of the previous problem or the bigger

problem will still persist and eat up these small and insignificant changes. He

suggested a combination of rational factors as well as extra-rational factors

linked with the decision and situation. he suggested a qualitative approach

through a feed back mechanism. He was also in support of studying decision

making as a subject of social science and making it inter disciplinary where

knowledge and techniques from other social science subjects can be mixed

and applied to decision making to broaden its scope and achieve maximum

results.

4) GAME THEORY OF DECISION MAKING:

This is done in an environment where there are numerous organisations

having the same goal and objectives and products. Here a decision maker

takes a decision keeping in mind the opponents strategy as the topmost

priority and to have the minimum loss and risk. Foreign policy, export-import

policy etc may be seen as examples that follows this theory.

8.7. Model Questions

1. Explain the different Phases in Decision Making Process

2. Elucidate Herbert Simon’s Behaviourist School of decision making

process

3. Bring out the characteristics of decision making

4. Examine various other decision making process

5. What are the types of Decision Making in an Organisation

Lesson 9

Communication

Learning Objectives

At the end of the lesson, the student will be able to:

1. Comprehend the meaning of Communication

2. Know the features of communication

3. Explain communication process

4. Find out Forms of communication

5. Know Barriers to effective communication

6. Understand formal and informal Networks.

9.1. Introduction

Communication is one of the most basic functions of administration and is

one of the essential reasons for the success or failure of an organisation. If

there is a systematic and properly developed communication system then the

organisation booms.

Communication refers to sharing and transmitting of ideas, facts, opinions,

information and understanding from one person or place or thing to another

and is the heart of management as it helps various functional groups within

an organisation understand each other's functions and concerns. It ensures

co-ordination and helps get work done quickly and within time among

various inter related units if there is clear communication through a

systematised and developed channel. It can be in the form of orders,

directions, suggestions, advice, reporting requests and feedback.

9.2.Meaning

The word communication is derived from the Latin word “communis” and

“communis” is derived from communo. Some scholars say that the real origin

of the word communication is communis. In all the cases the meaning is

common. The communication removes the barriers that are found among

various sections of the organisation. Hence commonness stands at the central

position of the organisation and communication makes it possible.

9.3. Definition:

Communication is another administrative process and in the absence of

communication the function of the organisation will reach practically a full

stop.

Simon has said: “Without communication there can be no organisation, for

there is no possibility of group influencing the behaviour of the individual.”

The administration of an organisation is a continuous process and it is the

function of the communicative system to maintain this continuity. We can

therefore say that communication makes administration mobile.

Let us quote another definition: Communication is the process of establishing

commonness through the movement of ideas, thoughts and feelings etc. from

one to another or between groups of persons. In other words, it is an

exchange of facts, thoughts, information, emotions resulting in a shared

understanding.

Karl W Deutsch is a renowned authority on the concept of communication. In

his opinion, “The communication means the transfer of messages containing

quantities of information”

According to Deutsch communication is a type of channel through which

messages or information or directions pass from one stage or group of

organisation to another. Even assessment or emotions pass through the

channel and this comes to be treated as communication.

Harold Lasswell in his Structure and Function of Communication in Society

has made the following remark about communication. He says: “Who says

what in which channel to whom with what effect”. Though Lasswell said this

in the background of communication and its immense importance in society

the same idea can conveniently be applied to public administration and

organisation.

9.4. FEATURES OF COMMUNICATION:

1) It involves people.

2) It involves shared meaning

3) It is symbolic

4) It is a two-way process

5) It is a pervasive function,applying to all phases of management and to all

levels of authority.

9.5. COMMUNICATION PROCESS:

The communication is a process, but it is never a one-way process. An

organisation is divided into a number of sections or departments and the

information is always communicated among all the departments. For

example, a department or an officer receives information from higher

authority regarding a particular issue and the receiving section sends its

opinion to the department or person concerned.

In the system of communication the method of feedback always works. When

a man receives information it is his primary duty to send a reply or

information and, in this way, communication system works. As there is

commonness in communication there is also continuity in it. The

communication will end with the death of organisation.

Any communication involves-

1) A sender - Who sends out the message

2) A receiver - Who receives the message

3) A 'medium' through which the message is communicated. This message

could be written, oral or non-verbal.

4) Message - It is the physical form into which the information is encoded

(into a series of symbols).

5) Channel - The mode of transmission of the message

6) Decoding - The interpretation of the message by the receiver.

7) Noise -The factors that hinder effective communication.

8) Feedback - Receiver's reaction to the sender's message.

9.6. FORMS OF COMMUNICATION

9.6.1. VERBAL COMMUNICATION 

It is a part of formal communication. Communicated through language and

symbols and the most significant form of communication.

There are two sub-forms of verbal communication

1. Oral communication and

2. Written communication.

Oral communication is through phone etc. It is fast paced and happens in real

time.

Written communication takes place through letters, e-mails, etc.

It is highly significant as what is written is clearly conveyed without any

distortion and can always be recalled in time of need and is a written proof.

9.6.1.1 VERBAL COMMUNICATION PATTERNS:

a. Downward: When it flows from superior to subordinate. A clear

communication here will reduce the uncertainties of the subordinate

and the job will be done perfectly.

b. Upward : When it flows from subordinate to superior. Helps

superior get the requisite field knowledge and subordinate feels

motivated and time is cut down in taking decisions as subordinate can

skip some levels and approach relevant official directly.

c. Lateral : When it takes place at the same level. Teamwork is

enhanced and an open environment prevails.

d. Diagonal - When it takes place between manager and members of

other work groups.

e. External - When members of one organisation communicate with

another organisation members.

9.6.2.NON-VERBAL COMMUNICATION –

 

It is a part of informal communication. It refers to communication through

facial expressions, pitch of voice, hand movements, body gestures and other

signs used by individuals. Proper orientation and training is need for this type

of communication as a lot of time such communication is misunderstood but

if used effectively is extremely useful.

9.7. BARRIERS TO EFFECTIVE COMMUNICATION:

1) Language difficulties

2) Frame of mind

3) Screening or filtering - Also known as tone down,that is the sender filters

the message of some components that might not be acceptable to the

receiver before sending it out.

4) Lack of desire

5) Ideological barrier (differences in background,education and expectations)

6) Mutual distrust

7) Inattention

8) Resistance to change

9) Overloading - Giving too much information,more than what the receiver

can comprehend.

10) Timing

11) Size of organization

12) Lack of definite and recognised means of education

9.8. FORMAL VERBAL COMMUNICATION NETWORKS

The formal communication is based on certain written rules and regulations

or centrally determined rules and all these must be strictly observed or

maintained. Any change must be preceded by permission of appropriate

authority. The formal communication is the central feature of governmental

administration. Formal communication is also prevalent in an administrative

system characterised by hierarchy.

There are various stages in public administration and what the executive of

one section will do and what he cannot do are clearly stated and, normally, he

cannot violate their rule. Another aspect of formal communication the

movement of order or direction takes place formally or in writing. Personal

liking or disliking has nothing to do with the formal communication.

1) Chain - When communication travels in a chain

2) Wheel   -  When one person can communicate with other who do not

communicate amongst themselves.

3) Circle   -  Where each individual can communicate with each of the others

4) Inverted   -  When two people communicate with a boss who has two levels

above

5) All channels - Communication here is transmitted through all channels

available.

9.9. INFORMAL COMMUNICATION NETWORKS:

Herbert Simon maintained that the public administration of a country can

never be fully run by formal communication alone. There is a good deal of

importance of informal communication. An administration cannot be

efficiently managed only by formal communication. It must be supplemented

by informal mode of administration. In a changing world, everything cannot

be predicted or foreseen.

This network operates informally that is when individuals want to share

feelings, emotions, opinions,etc with another in the organisation. It can be

regarding his job or personal matters. It helps in motivating and employee

when communicated through the informal channels to the management.

1) Grapevine or gossip network: Shared between individuals when there is

some general interest of the group regarding the organisation and is fast

paced.

2) Cluster network: General talk between individuals without and agenda.

3) Propaganda network: A group joins together to portray another as weak

for their gains.

4) Rumour network: It has a powerful core and speaks through brief

statements directly related to the receiver and the receiver feels threatened if

he does not go by or pay heed to the message.

9.10. Model Question

1. Explain the meaning and Features of Communication.

2. Elucidate Communication Process with a diagram

3. What are the forms of communication

4. Bring out the communication networks

5. Examine the Barriers to Effective Communication

Lesson 10

Managerial Control

10.1. Introduction

An effective organization is one where managers understand how to manage and

control. The objective of control as a concept and process is to help motivate and

direct employees in their roles. Understanding managerial control process and

systems is essential for the long- term effectiveness of an organization.

Without enough control systems in place, confusion and chaos can overwhelm an

organization. However, if control systems are “choking” an organization, the

organization will suffer from erosion of innovation and entrepreneurship.

10.1. Concept of Control:

The term control has different connotations depending upon the context of the use

of the term. In manufacturing it refers to a Device or mechanism installed or

instituted to guide or regulates the activities or operation of an apparatus, machine,

person, or system; in law it refers to controlling interest and in management as an

authority to order and manage the workings and management of an entity.

Control is a management process to aim at achieving defined goals within an

established timetable, and comprises of three components: (1) setting standards, (2)

measuring actual performance, and (3) taking corrective action.

10.2. Characteristics of Control:

1. Control is a Managerial Process:

Management process comprises of five functions, viz., planning, organizing, staffing,

directing and controlling. Thus, control is part of the process of management.

2. Control is forward looking:

Whatever has happened has happened, and the manager can take corrective action

only of the future operations. Past is relevant to suggest what has gone wrong and

how to correct the future.

3. Control exists at each level of Organization:

Anyone who is a manager, has to involve into control – may be Chairman, Managing

Director, CEO, Departmental head, or first line manager. However, at every level the

control will differ – top management would be involved in strategic control, middle

management into tactical control and lower level into operational control.

4. Control is a Continuous Process:

Controlling is not the last function of management but it is a continuous process.

Control is not a one-time activity, but a continuous process. The process of setting

the standards needs constant analysis and revision depending upon external forces,

plans, and internal performance.

5. Control is closely linked with Planning:

Planning and controlling are closely linked. The two are rightly called as ‘Siamese

twins’ of management. “Every objective, every goal, every policy, every procedure

and every budget become standard against which actual performance is compared.

Planning sets the ship’s course and controlling keeps it on course. When the ship

begins to veer off the course, the navigator notices it and recommends a new

heading designed to return the ship to its proper course. Once control process is

over its findings are integrated into planning to prescribe new standards for control.

6. Purpose of Controlling is Goal Oriented and hence Positive:

Control is there because without it the business may go off the track. The controlling

has positive purpose both for the organization (to make things happen) and

individuals (to give up a part of their independence for the attainment of

organizational goals).

10.3. Process of Control:

Following are the steps involved into the process of control:

1. Establish the Standards:

Within an organization’s overall strategic plan, managers define goals for

organizational departments in specific, precise, operational terms that include

standards of performance to compare with organizational activities. However, for

some of the activities the standards cannot be specific and precise.

Standards, against which actual performance will be compared, may be derived

from past experience, statistical methods and benchmarking (based upon best

industry practices). As far as possible, the standards are developed bilaterally rather

than top management deciding unilaterally, keeping in view the organization’s

goals.

Standards may be tangible (clear, concrete, specific, and generally measurable) –

numerical standards, monetary, physical, and time standards; and intangible

(relating to human characteristics) – desirable attitudes, high morale, ethics, and

cooperation.

2. Measure Actual Performance:

Most organizations prepare formal reports of performance measurements both

quantitative and qualitative (where quantification is not possible) that the managers

review regularly. These measurements should be related to the standards set in the

first step of the control process.

For example, if sales growth is a target, the organization should have a means of

gathering and reporting sales data. Data can be collected through personal

observation (through management by walking around the place where things are

happening), statistical reports (made possible by computers), oral reporting

(through conferencing, one-to-one meeting, or telephone calls), written reporting

(comprehensive and concise, accounting information – normally a combination of

all. To be of use, the information flow should be regular and timely.

3. Compare Performance with the Standards:

This step compares actual activities to performance standards. When managers read

computer reports or walk through their plants, they identify whether actual

performance meets, exceeds, or falls short of standards.

Typically, performance reports simplify such comparison by placing the

performance standards for the reporting period alongside the actual performance

for the same period and by computing the variance—that is, the difference between

each actual amount and the associated standard.

The manager must know of the standard permitted variation (both positive and

negative). Management by exception is most appropriate and practical to keep

insignificant deviations away. Timetable for the comparison depends upon many

factors including importance and complexity attached with importance and

complexity.

4. Take Corrective Action and Reinforcement of Successes:

When performance deviates from standards, managers must determine what

changes, if any, are necessary and how to apply them. In the productivity and

quality-centered environment, workers and managers are often empowered to

evaluate their own work. After the evaluator determines the cause or causes of

deviation, he or she can take the fourth step— corrective action.

The corrective action may be to maintain status quo (reinforcing successes),

correcting the deviation, or changing standards. The most effective course may be

prescribed by policies or may be best left up to employees’ judgment and initiative.

The corrective action may be immediate or basic (modifying the standards

themselves).

10.4. Importance of Control:

1. Guides the Management in Achieving Pre-determined Goals:

The continuous flow of information about projects keeps the long range of planning

on the right track. It helps in taking corrective actions in future if the performance is

not up to the mark.

2. Ensures Effective Use of Scarce and Valuable Resources:

The control system helps in improving organizational efficiency. Various control

devices act as motivators to managers. The performance of every person is regularly

monitored and any deficiency if present is corrected at the earliest.

Controls put psychological pressure on persons in the organization. On the other

hand control also enables management to decide whether employees are doing right

things.

3. Facilitates Coordination:

Control helps in coordination of activities through unity of action. Every manager

will try to coordinate the activities of his subordinates in order to achieve

departmental goals.

Similarly the chief executive also coordinates the functioning of various

departments. The control acts as a check on the performance and proper results are

achieved only when activities are coordinated.

4. Leads to Delegation and Decentralization of Authority:

A decision about follow-up action is also facilitated. Control makes delegation

easier/better. Decentralization of authority is necessary in big enterprises. The

management cannot delegate authority without ensuring proper control.

The targets or goals of various departments are used as a control technique. Various

control techniques like budgeting, cost control; pre action approvals etc. allow

decentralization without losing control over activities.

5. Spares Top Management to Concentrate on Policy Making:

For control processes management’s attention is not required every now and then.

The management by exception enables top management to concentrate on policy

formulation.

Types of Control:

Controls can be numerous in kind. These may be classified on the basis of (a) timing,

(b) designing systems, (c) management levels, and (d) Responsibility

On the basis of timing:

Control can focus on events before, during, or after a process. For example, a local

automobile dealer can focus on activities before, during, or after sales of new cars.

Such controls may be respectively called as Preventive, Detective, and Corrective.

On this basis the control may be:

(i) Feed forward Control

(ii) Concurrent Control

(iii) Feedback Control

1. Feed forward Control:

The objective of feed forward control or preliminary control is to anticipate the

likely problems and to exercise control even before the activity has started or

problem has occurred or been reported. It is future directed.

This kind of control is very popular in airlines. They go in for preventive

maintenance activities to detect and prevent structural damage, which may result in

disaster. These controls are evident in the selection and hiring of new employees. It

helps in taking action beforehand.

In case of feedback control, one relies on historical data, which will come after the

activity has been performed. This means information is late and the rectification is

not possible. One can make correction only for future activities.

That means whatever wrong has been done is done, and it cannot be undone.

Though, future-directed control is largely disregarded in practice, because managers

have been excessively dependent on accounting and statistical data for the purpose

of control. In the absence of any means of looking forward, reference to history is

considered better than no reference at all.

However, the concept of feed forwarding has been applied now and then. One

common way managers have practised it is through careful and repeated forecasts

using the latest available information, comparing what is desired with the forecasts,

and introducing program changes so that forecasts can be made more promising.

2. Concurrent Control:

Concurrent control monitors ongoing employee activity to ensure consistency with

quality standards takes place while an activity is on or in progress. It involves the

regulation of ongoing activities that are part of transformation process to ensure

that they conform to organizational standards.

The technique of direct supervision is the best-known form of concurrent control.

Concurrent control is designed to ensure that employees’ activities produce the

correct results and to correct the problems, if any, before they become costly.

In case of computer typing, if the spelling is wrong or construction is incorrect, the

programme immediately alerts the user. Many manufacturing operations include

devices that measure whether the items being produced meet quality standards.

Since concurrent control involves regulating ongoing tasks, it requires a complete

understanding of the specific tasks involved and their relationship to the desired

and product.

Concurrent control sometimes is called steering, screening or yes-no control,

because it often involves checkpoints at which decisions are made about whether to

continue progress, take corrective action, or stop work altogether on products or

services.

3. Feedback Control:

The control takes place after the job is over. Corrective action is taken after

analysing variances with the planned standards at the end of the activity. It is also

known as ‘post action control’, because feedback control is exercised after the event

has taken place.

Such control is used when feed forward or concurrent is not possible or very costly;

or when exact processes involved in performing a work is difficult to specify in

advance.

The twin advantages of feedback control are that meaningful information is received

with regard to planning efforts, and feedback control enhances employee

motivation.

10.5. On the basis of designing Control Systems:

Three approaches may be followed while designing control systems, viz., Market

Control, Bureaucratic Control, and Clan Control. However, most organisations do not

depend only on just one of them.

1. Market Control:

Control is based upon market mechanisms of competitive activities in terms of price

and market share. Different divisions are converted into profit centres and their

performance is evaluated by segmental top line (turnover), bottom line (profit) and

the market share.

Using market control will mean that the managers in future will allocate resources

or create departments or other activities in line with the market forces.

2. Bureaucratic Control:

Bureaucratic control focuses on authority, rule and regulations, procedures and

policies. Most of the public sector units in India go in for bureaucratic control.

If they do not go by the rulebook, the legislative committees and the ministries

under whom they work will reprimand them. In a hospital no medicine can be used

unless the prescription is there and it is recorded in the issue register, even if the

patient may die in between.

3. Clan Control:

The control systems are designed in a way that give way to shared vision, shared

values, norms, traditions and beliefs, etc., part of the organisational culture.

It is not based upon hierarchical mechanisms, but work-related and performance

measures. This kind of control is most suitable for the organisations which use team

style of work groups and where technology changes very fast.

On the basis of Levels:

People at different level have different planning responsibilities, so do they

undertake controlling. On the basis of levels controls, can be categorised as

Operational, Structural, Tactical, and Strategic.

1. Operational Control:

Its focus remains upon the processes used by the organisation for transforming the

inputs (resources) into outputs (products/services). Operational controls are used

at the lower management. It is exercised almost every day. Quality control, financial

controls are part of operational controls.

2. Structural Control:

Are the different elements of organisation structure serving their intended aims? Is

there overstaffing? Is the ratio of staff to line increasing? Necessary action is to be

undertaken.

Two important forms of structural control can be bureaucratic control and clan

control, about which we have already talked. Structural control is exercised by top

and middle management.

3. Tactical Control:

Since tactical control deals with the departmental objectives, the controls are largely

exercised by middle management levels.

4. Strategic Control:

Strategic controls are early warning systems. Strategic control is the process to

determine whether the effectiveness of a corporate, business and functional

strategies are successful in helping organisations to meet its goals. Strategic controls

are exercised by top level management.

10.6. Control Techniques:

Many techniques have been developed to control the activities in management. The

list is very long, and it is difficult to describe them all.

Some of the important techniques are:

Financial Control:

Finance is related with mobilization of funds and their utilization and the

return on them. Financial control is exercised through the following:

1. Financial Statements:

Income statement (telling about expenses, segmental incomes, overall income and

expenses, and the net profit/loss), and Balance Sheet (shows the net worth at a

single point of time and the extent to which the debt or equity finance the assets)

2. Financial Audits:

Financial audits, either internal or external are conducted to ensure that the

financial management is done in line with the generally accepted policies,

procedures, laws, and ethical guidelines. Audits may be internal (by Organisation’s

own staff), external (statutory audit by chartered accountants), and management

audit (by experts).

3. Ratio Analysis:

Ratio analysis monitors liquidity, profitability, debt, and activity related aspects.

4. Budgetary Controls:

Budgetary control is the process of constructing budgets, comparing actual

performance with the budget one and revising budgets or activities in the light of

changed conditions.

Budgetary control is as such not related only to finance area, but all functional areas

do take help of budgetary control. Budgets help not only in planning but also help to

keep a tab on overall spending.

Budgeting may be top-down (managers prepare the budget and ask subordinates to

use); bottom-up (figures come from lower levels and adjusted at upper levels); zero-

based (justifying allocation of funds on the basis of activities or goals); and flexible

budgeting (varying standards and varying allocations).

5. Break-even Analysis:

It is a tool of profit planning and deals with cost-volume-profit relationships.

6. Accounting:

Accounting includes responsibility accounting, cost accounting, standard cost

approach, direct costing, and marginal costing.

Lesson 11

Delegate and Decentralization

11.1. Introduction

This is an era of large scale organisations. As the number of large scale

organisations is increasing day by day the need of delegation has

tremendously increased. In a small scale organisation, the head may be able

to run the organisation effectively by keeping all the powers with himself, but

this is not possible in the case of a large scale organisation. In order to achieve

efficiency of the organization, he is required to delegate his authority to his

subordinates. Moreover all organisations are organised on the basis of the

principle of hierarchy which binds different levels and units of the

organisation with a continuous chain of authority. The need of delegation is

greatly felt with the growth of an organisation.

J. D. Millet, one of the leading organisational scientists, maintains that

delegation of authority means more than simply assigning duties and

responsibilities to others in more or less detail. The essence of delegation is

intended to confer discretion upon others, to use their judgment in meeting

specific problems and challenges within the frame work of their duties.

Delegation means to entrust one’s own power and responsibility to

another person or group of persons who are lower in rank and power. In

public administration a chief executive transfers his power or part of it to an

employee who is in rank lower to him. In other words, an officer shifts a part

of his power to a subordinate.

11.2. Definitions

The following definitions bring out the meaning of delegation:

According to Mooney,

“It means conferring of specified authority by a higher to a lower authority:

An executive transfers some power to his subordinates. The purpose of

delegation is to ensure better management. This transfer of power is also

called the devolution of power.”

According to Terry,

“ Delegation means conferring authority from on executive or organizational

units to another”.

According to Millet,

“Delegation of authority means more than simply assigning duties to others in

more or less detail. The essence of delegation is to confer discretion upon

others, to use their judgment in meeting specific problems in the frame work

of their duties.

According to L.D. White,

“circumstances of magnitude and volume, however, require some

delegation of authority and the settlement of much business at the point

where it arises.

11.3. Features of Delegation

Mohit Bhattacharya puts forward delegation has four features:

i. assignment of duties by the superior (delegator) to the subordinate

(delegate).

ii. granting of authority by the delegator to the delegate to facilitate the

work assigned to him.

iii. creation of an obligation, that is, the delegatee becomes duty bound to

complete the work.

iv. no further delegation of the obligation by the delegate to his

subordinates.

It must be clarified here that a scheme of delegation is subject to the

supervision and control of the delegator. Further, authority once delegated

can be enhanced, reduced, or taken back by the delegator. While delegating

authority, the delegator neither transfers his final authority nor abdicates his

ultimate responsibility. The delegator still retains the delegated authority but

its exercise is permitted to the delegatee. Thus, delegation has a dual

character. In this context, G. R. Terry observes, it is something like imparting

knowledge you share with others, who then possess the knowledge; you still

retain the knowledge too. However, M. P. Follet considered the concept of

delegation as a mere myth of organisational (administrative) theory. She

believed that authority belongs to the job and stays with the job. Hence, one

who does the job, must have the authority whether his superior likes it or

not. As authority belongs to the function (job), it cannot be delegated. The

term delegation of authority is thus an absolute expression. She asserted,

authority must be functional and functional authority carries with it

responsibility.

11.4. Classification of Delegation

According to Terry, Delegation may thus be classified as:

(i) ‘Downward’ when the higher delegates to the lower as in the case of sales-

manager delegating to salesmen;

(ii) ‘Upward’ when the lower delegates to the higher as in the case of share-

holders delegating to their board of directors; and

(iii) ‘Sideward’ when delegation is at equal levels as in the case of African

tribal chiefs and their Central Tribal Authority.

11.5. Types of Delegation

Delegation can be of several types viz., permanent or temporary, full or

partially, conditional or unconditional, fornlal or informal, m&direct or

indirect. We shall discuss these different types in some detail.

11.5.1. Permanent and Temporary Delegation

Delegation is full when complete powers are conferred on the agent as

for example, when diplomatic representative is sent abroad with ‘full powers’

to negotiate. It is ‘partial’ when he is required to get advice and guidance on

crucial points from the delegating authority in his country.

11.5.2. Conditional or unconditional

Delegation is conditional when the action of a subordinate is subject to

confirmation and revision by the superior; it is unconditional when

subordinate is free to act without reservations.

11.5.3. Formal or informal:

Delegation is formal when embodied in written rules, by-laws or

orders; it is informal when based on customs, conventions and

understanding.

11.5.4. Direct or intermediate:

Delegation is direct when no third person intervenes between the two

parties to delegation; it is intermediate when it is made through third

person. Intermediate delegation is rarely found. Mooney gives two

instances of such delegation. They are the election of the President of

U.S.A. by the people through electoral college and the election of the

Pope by the congregation through council of cardinals.’

11.6. Characteristics of Delegation

Delegation being a .process of devolution of authority has the following

characteristics:

11.6.1. Delegation is the authorisation to a subordinate or another

organisational unit to act in a certain way independently. The

delegatee has to act within the limits prescribed by the delegator.

Within these limits the delegatee (subordinate) is not free to act

arbitrarily but subject to the policy, rules and regulations framed by

the delegating authority.

11.6.2. Delegation has a dual character. A superior or delegator

delegates the authority to the subordinate but at the same time

retains the authority.

It has been rightly observed by Terry, "It is something like imparting

knowledge you share with others who then possess the knowledge, but

you still retain the knowledge too."

11.6.3. Delegation implies partial delegation of authority. The delegator

does not delegate his entire authority to his subordinates for in

case, he delegates all his authority, he cannot exercise the power to

supervise and control. Therefore, delegation is subject to specific or

limited terms.

11.6.4. Authority once delegated is subject to variance. It can be

enhanced, reduced or withdrawn. It all depends upon the

requirement of the time and accomplishment.

11.7. Need for Delegation

11.7.1. Effective Leadership

It helps the chief executive to devote his time and energy to more

important decisions of the organization. Much of routine work is done

at the lower levels and only important business is passed on to the

leader. Effective leadership is made possible only through the process

of delegation. “One of the tragedies of business experience is the

frequency with which men, always efficient in anything that they

personally can do, will finally be cursed and fail under the weight of

accumulated duties that they do not know and cannot learn how to

delegate.” Delegation of authority is, therefore, the first principle of

good leadership.

11.7.2. Volume of Work

Increasing volume of work requires that there should be some sort of

delegation. It becomes difficult for the head of an organisation to keep

all the workload to himself. If he daes like this, the work is sure to

suffer. There will be neither efficiency nor economy.

11.7.3. Complexities

Complexities of rules and) techniques has further added to the

problem. Consequently the need of specialists is greatly felt. The line

agencies, being compelled by the complexities delegate the work of

deliberation, thinking and formulation of plans to staff specialists,

though the ultimate power to approve the plans lies with the line.

11.7.4. Immense Educative Value:

One of the duties of a manager is to build up his subordinates, to train

them in the art of sharing responsibility and making decisions which is

possible only through delegation. Delegation of authority has,

therefore, much educative value.

11.7.5. Saves Time for Policy Formulation and Planning

Executive head always needs more and more time for planning and

policy formulation. If he remains busy with minor details, he would not

be able to devote much time to planning and decision making. The

superior who delegates effectively, is free to do more supervisory work

and overall planning. This, in turn, usually results in a smoother

running, and more productive organisation. Thus delegation helps the

Chief Executive to devote his time and energy to decision making,

policy formulation and planning and relieves him off from much of the

unimportant load of work which can de easily done through his

subordinates.

11.7.6. Management Developrnent

The process of delegation is not only educative in nature but is also

productive. It

provides managerial development training and helps in the creation of

a managerial class of subordinates. The executives at different levels

can take decisions and action on many vital issues on their own. They

develop a sense of taking initiative slid face the challenges. In this way

delegation provides an ample scope for self advancement and self

expression. Delegation is, thus, the cardinal step in management

development.

11.7.7. Flexibility in Rigidities:

Delegation provides the necessary flexibility to the otherwise rigid

procedures. Delegation helps to adjust procedures according to the

needs of situations. Millett illustrates this point by an interesting story.

“The story goes that an officer was instructed to give an explanation of

why a damaging fire had occurred on his post.

The officer is supposed to have ended his report with this sentence.

‘The rules were fully obeyed and the building burned down.’ No set of

rules devised by man can ever be applicable to each individual future

situation which may occur. It is general purpose and intent which

organized groups must be concerned to realize, and which leadership

endeavors to promote by its willingness to delegate.”

8.7.8 Economy and Efficiency

Delegation of authority helps in the division of labour, essential for the

discharge of dudes efficiently and expeditiously. Delegation minimises

delays and imakes the organisatitn to act more efficiently and

economically. Due to clear demarcation of authority at various levels of

administration, delegation is also conducive to an effective control over

different branches or levels of organisation.

8.7.9. Helps in Successor

There is a great relation between delegation and niccession. An

administrator, by

delegation can prepare the way for his successor. It means when an

administrator quits, another should be able to succeed him.

In the words of Schell. "Delegation is one of the most effective

tools available to an executive in preparing the way for his successor.

Indeed, it is the most important tool for selection and training

successors." Delegation helps in succession or continuance of ideas

also. Every enterprise is based on certain ideals and those ideals

continue to exist even after the exit of the administrator.

8.7.10. Principles of Delegation

Delegation is always governed by certain principles. If these principles

are observed, delegation can be made effective. The following

principles are generally observed at the time of delegation of authority,

they are:

a. Delegation should be written and specific.

b. Authority and responsibility for each position in the

management group should be spelled out and delegation

should be made to a position rather than to an individual.

Authority delegated should be proportionate to the task.

c. Only that much of authority should be delegated as it is

within the competence of subordinates to exercise safely.

d. Delegation should be properly planned and be systematic.

e. Systematic reporting system should be established with

those to whom the authority has been delegated to ascertain

that authority is being used properly.

f. Policies, regulations and procedures should be well defined

as to give no misunderstanding to the employees using

discretionary powers.

g. There should be free and open lines of communication

between the delegators and delegates. This brings the

superior and subordinates closer and can help solving many

problems which come in the way of delegation.

8.8. Limits of Delegation

Even though delegation is essential and advantageous, no superior can

render himself superfluous by delegating entire authority vested in him.

He has to retain some important powers to exercise effective control

over the functioning of the organisation. Thus, the extent of delegation

depends upon the nature of the case, the circumstances and the

responsibilities involved.

As identified by M. P. Sharma, the following powers are usually not

delegated:

i. The power to supervise the work of first line or immediate

subordinates

ii. The power to sanction expenditure above a specified amount

and the power of general financial supervision

iii. The power to sanction new policies and departures from old

policies iv. The power to make rules and regulations the power

to make specified higher appointment v. The power to hear

appeals against the immediate subordinates decisions

8.9. Hindrances to Delegation

Hindrances to delegation can be grouped into two kinds namely,

organisational and personal.

8.9.1. Organisational Hindrances

i. lack of well established organisational methods,

procedures and rules

ii. unstable and non –repetitive character of work

iii. lack of effective means of internal communications

iv. centralization requirements of special programmes

v. smaller size and narrower geographic coverage of the

organisation

vi. lack of effective means of internal coordination

vii. lack of well defined positions in terms of responsibility

and authority

viii. incompetency and low caliber of lower level personnel;

ix. the lesser age of the organisation due to few precedents

x. the constitutional, legal and political restriction

xi. the crisis situation faced by the organisation

xii. lack of effective means of work control

8.9.2. Personal Hindrances

According to J. M. Pfiffner, the following are the personal hindrances to

delegation:

i. persons who rise to position of hierarchical leadership

have more than normal egotism

ii. they are afraid that others will not make proper decisions

or carry them out in a desired manner

iii. they fear that disloyal or subversive power centres will

develop among strong subordinates

iv. in public administration, political considerations often

make delegation difficult

v. the cultural heritage of man has been one of authoritarian,

patriarchal leadership; thus, the practice of delegation is

partly dependent on cultural change

vi. the act of delegation required an emotional maturity

which apparently is rare, even among successful persons.

8.10. Model Question

1. Explain the features of Delegation

2. Define: Delegation

3. Bring out the various classification of Delegation

4. What are the types of Delegation and bring out the

characteristics of delegation.

5. Hindrances to Delegation: explain with examples

Lesson 12

Centralization

Learning Objectives

At the end of the lesson, the student will be able to:

1. understand typologies of decentralization

2. know the merits and demerits of centralization and decentralization

3. assess those effective decentralization

4. know the factors governing centralization and decentralization

5. comprehend the patterns of field of organisation

12.1. Meaning:

Centralization means concentration of authority at the top level of the

administrative system. Decentralization, on the other hand, means dispersal

of authority among the lower levels of the administrative system. Thus, the

issue of centralization versus decentralization revolves around the location of

the decision making power in the administrative system. In a centralized

system of administration, the lower levels (called field offices) cannot act on

their own initiative. They have to refer most of their problems to the higher

level (called headquarters) for decisionmaking. They act as only

implementing agencies. In a centralized system of administration, on the

other hand, the field offices can act on their own initiative in specified

matters. They are given authority to take decisions without reference to the

headquarters. Thus, the essence of decentralization is the vesting of decision-

making power in the field offices. Centralization is the opposite of

decentralization. It means centralization of authority once decentralized. The

word decentralization is derived from Latin.

12.2. Definitions

The following definitions can be noted in this regard:

L.D. White: “The process of transfer of administrative authority from a lower

to a higher level of government is called centralization; the converse,

decentralization.”

Henry Fayol: “Everything that goes to increase the importance of the

subordinate s role is decentralization; everything which goes to decrease it is‟

centralization.”

12.3. Typologies of Decentralization

Broadly, decentralization is of the two types – political and administrative.

The decentralization is further subdivided into territorial (vertical)

decentralization and functional (horizontal) decentralization.

A brief discussion of the typologies of decentralization is as follows:

1. Political Decentralisation:

It stands for the establishment of new levels of government like the

autonomous states in India or provinces in Canada. In the federal

systems, political authority is divided between central government and

the regional governments (State governments in India or Provincial

governments in Canada). The creation of autonomous local

governments in Federal States like USA or India and in Unitary States

like Britain or Japan also implies political decentralization. Thus the

establishment of City Governments in USA, Panchayati Raj and

Municipal Corporations in India, County Governments in Britain and

Prefectural Governments in Japan are good examples of political

decentralization.

2. Territorial Decentralisation:

It stands for the establishments of area administrative units (field

offices) by the higher authority (headquarters). For example, the

creation of divisions, districts, talukas, circles, and so on in India. These

are vested with decision-making powers within specified limits and

thus function in an independent manner.

3. Functional Decentralisation:

It implies the vesting of decision-making authority in the specialized

units by the central agency. For example, the creation of technical or

professional bodies in India like the University Grants Commission,

Flood Control Board, Central Social Welfare Board, and so forth.

12.4. Merits of Centralisation

These are briefly discussed as follows:

a) It provides for maximum control over the entire organization.

b) It ensures that all the work is performed in the same manner and in

accordance with the same general policies and principles.

c) It makes administrative abuses more difficult in matters like employment

and handling of personnel, purchase and use of supplies and so on.

d) It ensures economy in administration by avoiding duplication of work.

e) It facilitates the introduction of dynamism in the organization through the

active role of personnel leadership.

f) It is suitable for dealing with emergencies and unanticipated matters.

g) It enables the maximum utilization of the human and material resources in

the organization and thus develops a corporate personality.

12.5. Demerits of Centralisation

These are provided as follows:

a) It leads to delay in securing action as the field officials have to refer the

matter to the higher authorities.

b) It makes the head-office overburdened due to “apoplexy at the top and

anemia at the extremities.”

c) It leads to autocratic control over subordinates and thus results in lack of

flexibility in administration. d) It makes administration irresponsive as the

head office acts without the knowledge of local conditions and requirements.

e) It does not facilitate people s participation in administrative process. ‟

f) It does not allow the development of second line of executives.

g) It is not conducive for the expansion and diversification of the

organization.

12.7. Merits of Decentralisation

These are stated as follows:

a) It increases administrative efficiency by reducing delays, curbing red-

tapism and encouraging faster action.

b) It reduces the workload of the head office and thus enables the top

echelons to concentrate on vital issues like policy formulation, examining

major problems and so forth.

c) It develops resourcefulness and self-respect among the subordinates by

making them to take decisions with a sense of responsibility.

d) It makes administration more responsive as the field units act with the

knowledge of local conditions and requirements.

e) It facilitates people s participation in administrative process and thus‟

strengthens democracy at the grassroots level.

f) It allows the development of second line of executives due to adequate

delegation of authority to the lower levels.

g) It encourages the expansion and diversification of the organization for

effective goal-achievement.

h) It facilitates the adaption of national policies and programmes to the

varying conditions of different regions.

i) It alleviates the problem of communication overload in the organization by

reducing paper work at both higher and lower levels.

j) It encourages competition and comparative standards of evaluation among

several competing field units.

k) It makes possible the experimentations in decision-making and

implementation by several units without committing the whole enterprise to

an untried course of action.

According to J.C. Charlesworth, “Decentralization has a more important

justification than mere administrative efficiency. It bears upon the

development of a sense of personal adequacy in the individual citizen; it has

spiritual connotations.”

12.8. Demerits of Decentralisation

a) It complicates coordination and integration of the activities of various units

due to decrease in the degree of central control over the total organization.

b) It makes communication among various levels difficult and thereby

reduces its effectiveness and authenticity.

c) It makes administration expensive due to duplication of work and lack of

centralized housekeeping services.

d) It is not suitable for dealing with emergencies and unanticipated matters.

e) It encourages divisive forces in the organization and thus threatens the

organizational integration.

f) It weakens the national perspective in administration by breeding localism

and parochialism.

g) It increases administrative abuses like corruption, maladministration,

nepotism, and so on. These things can be seen in the working of Panchayati

Raj in our country.

12.9. Effective Decentralization

J.C. Charlesworth suggested the following safeguards to make the

decentralization effective:

a) Field offices should report to one central agency only.

b) Jurisdictional lines should be meticulously drawn.

c) Procedures in the several field offices should be of a common standard,

although they need not be uniform.

d) Field office should have a sufficient flexible physical and psychological

structure to permit it to adjust to the emergent local conditions.

e) Field office should not make decisions affecting overall policy, although it

should be encouraged to make its own decisions to a point approaching that

situation.

f) A system of ready appeals should be present.

g) Suggestions from the field to the centre should be freely channeled.

h) Adequate reporting and inspection methods should provide the centre-

head with full and current knowledge of field operations.

12.10. Factors Governing Centralization and Decentralization

According To James W. Fesler, the issue of centralization versus

decentralization is governed by four factors which are examined as follows:

a) Factor of Responsibility:

Since the Central agency is held responsible for everything in the

organization, it does not easily delegate wide discretionary authority to

the field offices and prefers to direct and control all their operations.

Thus the factor of responsibility acts as a deterrent to decentralization

and favours centralization.

b) Administrative Factors:

These include age of the agency, stability of its policies and methods,

competence of its field personnel, pressure for speed and economy and

administrative sophistication. An old agency with well-established

procedures and precedents finds it easier to decentralize than newer

one where frequent reference to the higher level is inevitable. Stability

of organizational policies and methods facilitates decentralization

while frequent changes in them favour centralization. The more

competent the field staff, the greater the propensity to decentralization.

The pressure for speed and economy in administration inclines toward

decentralization. Finally, the administrative sophistication, that is, a

professional approach to the problem of delegation also influences

decentralization.

c) Functional Factors:

These include the variety of functions performed by the agency, the

technical nature of functions, and the need for countrywide uniformity.

The scope for decentralization is greater in a multi-functional

organization than in a uni-functional organization. Similarly, the

technical nature of functions performed by the agency necessitates

decentralization as the head cannot have the technical competence to

manage all of them directly. The need for uniformity throughout the

country in functions like defence, communications, transport, planning

and so forth favours centralization.

d) External Factors:

These include the demand for people s participation in the‟

administration of development programmes, the pressure of political

parties and interest groups, the need to strengthen grass-roots

democracy and the demand for “Planning from below.” All these factors

favour decentralized system and work against the centralizing

tendencies in administration.

12.11. Patterns of Field Organization

W.F. Willoughby: He distinguished between two patterns of field

organisations, namely, unitary and multiple. These are also known as

territorial and functional respectively. In the unitary or territorial system, all

the field offices of an area are placed under the supervision and control of a

chief administrator who in turn is responsible to the headquarters for their

working. This is found in France where all the officials of the central

government working in the department (the largest unit/area of local

administration) are placed under the supervision and control of the prefect.

In the multiple or functional system, the different divisions of the

headquarters deal with their respective field offices directly. There is no

intervention of the supervising and controlling authority in between them at

the area level.

Luther Gulick: He distinguished between three types of field organisations,

namely,:

(a) All Fingers,

(b) Short Arms, Long Fingers, and

(c) Long Arms, Short Fingers.

The word “arms” denote the regional offices, while “fingers” indicate the lines

of communication reaching to the lowest offices at the firing line.

In the, “All Fingers” type, the headquarters control the field offices directly;

there being no regional subdivisions.

In the “Short Arms, Long Fingers” type, the regional sub-divisions are

physically located in the headquarters itself. They control the field offices in

their respective spheres.

In the “Long Arms, Short Fingers” type, the regional sub-divisions are

physically located in the field itself. Far away from the headquarters, and

control the respective field offices.

Model Questions:

1. Examine the typologies of Decentralization

2. What are the merits and demerits of centralization?

3. What are the merits and demerits of decentralization?

4. Evaluate the factors governing centralization and decentralization

5. “Short Arms, Long Fingers”- Explain

6. “Long Arms, Short Fingers”- Explain

7. what are patterns of field of organization

Unit IV

Lesson 13

Modern Management: Management By Objectives (MBO)

13.0. Introduction

MBO or Management By Objectives is defined as a comprehensive managerial

system that integrates many key managerial activities in a systematic process and

that is consciously directed toward the effective and efficient achievement of

organizational and individual objectives.

The practical importance of objectives in management can best be seen by

summarizing how successful managing by objectives works in practice.

13.1. The 6 steps of the MBO process are;

1. Define organizational goals

2. Define employees objectives

3. Continuous monitoring performance and progress

4. Performance evaluation

5. Providing feedback

6. Performance appraisal

1. Define Organizational Goals

Goals are critical issues to organizational effectiveness, and they serve a number of

purposes. Organizations can also have several different kinds of goals, all of

which must be appropriately managed.

And a number of different kinds of managers must be involved in setting goals. The

goals set by the superiors are preliminary, based on an analysis and judgment as to

what can and what should be accomplished by the organization within a certain

period.

2. Define Employees Objectives

1. After making sure that employees’ managers have informed of pertinent general

objectives, strategies and planning premises, the manager can then proceed to work

with employees in setting their objectives.

The manager asks what goals the employees believe they can accomplish in what

time period, and with what resources. They will then discuss some preliminary

thoughts about what goals seem feasible for the company or department.

3. Continuous Monitoring Performance and Progress

MBO process is not only essential for making line managers in business

organizations more effective but also equally important for monitoring the

performance and progress of employees.

For monitoring performance and progress the followings are required;

i. Identifying ineffective programs by comparing performance with pre-established

objectives,

ii. Using zero-based budgeting,

iii. Applying MBO concepts for measuring individual and plans,

iv. Preparing long and short-range objectives and plans,

v. Installing effective controls, and

vi. Designing a sound organizational structure with clear, responsibilities and decision-

making authority at the appropriate level.

4. Performance Evaluation

Under this MBO process performance review is made by the participation of the

concerned managers.

5. Providing Feedback

The filial ingredients in an MBO program are continuous feedback on performance

and goals that allow individuals to monitor and correct their own actions.

This continuous feedback is supplemented by periodic formal appraisal meetings in

which superiors and subordinates can review progress toward goals, which lead to

further feedback.

6. Performance Appraisal

Performance appraisals are a regular review of employee performance within

organizations. It is done at the last stage of the MBO process.

Advantages of MBO:

The concept of MBO is very important in terms of its managerial implications.

Besides being a philosophy of management, it is a system which helps in

synchronizing the objectives of the individuals with the objectives of the

organization.

When implemented properly, systematically and consciously, the MBO has the

following advantages:

1. Improved Performance:

MBO is basically a result oriented process. Its main focus is on setting and

controlling goals. Managers are encouraged to do detailed planning. They

concentrate on the important task of improving performance by reducing the costs

and harnessing the opportunities. Improved planning will lead to improved

productivity arid more profits.

2. Greater Sense of Identification:

The individual members of the organization have a greater sense of identification

with the company goals. With MBO, the subordinates feel proud of being involved in

the organizational goals. This improves their morale and commitment to the

organizational objectives.

3. Maximum Utilization of Human Resources:

Since the goals are set in consultation with the subordinates, these are more difficult

to achieve and more challenging than if the superiors had imposed them. In

addition, since these goals are fixed according to the particular abilities of the

subordinates, it obtains maximum contribution from them and thus it leads to

maximum utilization of human resources.

4. No Role Ambiguity:

There is no role ambiguity or confusion in the organization, because specific and

clear goals are set for the organization, for the division for the departments and for

the individual members. Both the managers and the subordinates know what they

have to do and what is expected of them.

5. Improved Communication:

In MBO, there is improved communication between the management and the

subordinates. This continuous two way communication helps in clarifying any

ambiguities, refining and modifying any processes or any aspects of objectives.

6. Improved Organizational Structure:

In MBO, the whole of organizational structure is redesigned because of the revision

of job descriptions of various positions as a result of resetting of the individual

goals. All this helps in improving the organizational structure as a result of location

of the problem and weak areas of the organization.

7. Device for Organizational Control:

MBO serves as a device for organizational control and integration. If there are any

deviations discovered between the actual performance and the goals, these can be

regularly and systematically identified, evaluated and corrected.

8. Career Development of the Employees:

MBO provides a realistic means of analyzing training needs and opportunities for

growth for the employees. The management takes keen interest in the development

of skills and abilities of subordinates and provides an opportunity for strengthening

those areas which need further refinement, thus, leading to career development of

employees.

9. Result Based Performance Evaluation:

The system of periodic performance evaluation lets the subordinates know how

well they are doing. In MBO, strong emphasis is put on measurable and quantifiable

objectives. As a result, the appraisal tends to be more objective specific and

equitable. As these appraisal methods are based on result and not on some

intangible characteristics, there are considered to be superior to the trait evaluation

methods of appraisal.

10. Stimulating the Motivation of the Employees:

The system of MBO stimulates the employees motivation. First of all, they feel

motivated because of their participation in goal setting. They take keen interest in

the implementation of the goals which they themselves have set. Secondly the

appraisal system, being very objective and specific can be highly morale boosting.

Limitations of MBO:

A system of MBO has certain weaknesses and limitations. Some of these are inherent

in the system while some arise when introducing and implementing it.

1. Lack of Support of Top Management:

In traditional organizations, the authority is vested in the top management and it

flow from top to bottom. In MBO, subordinates are given an equal opportunity of

participation, which is resented by the top management. This system cannot

succeed without the full support of top management.

2. Resentful Attitude of Subordinates:

The subordinates can also be resentful towards the system of MBO. Sometimes,

while setting the goals, they may be under pressure to get along with the

management and the objectives which are set may be unrealistically high or far too

rigid. The subordinates, generally, feel suspicious of the management and believe

that MBO is another play of the management to make them work harder and

become more dedicated and involved.

3. Difficulties in Quantifying the Goals and Objectives:

The MBO will be successful only if the goals can be set in quantifiable terms. But if

the areas are difficult to quantify and difficult to evaluate, it will not be possible to

judge the performance of the employees. Moreover MBO does not have any

subjectivity in performance appraisal. It rewards only productivity without giving

any consideration to the creativity of the employees.

4. Costly and Time Consuming Process:

MBO is quite costly and a time consuming process. There is a lot of paper work

involved. Moreover, there are a lot of meetings and too many reports to be

prepared, which add to the responsibilities and burden of the managers. Because of

these reasons managers generally resist the MBO.

5. Emphasis on Short Term Goals:

Under MBO, goals are set only for a short period, say for six months or one year.

This is because of the reason that goals being quantitative in nature, it is difficult to

do long range planning. Since the performance of the subordinate is to be reviewed

after every six months or one year, they tend to concentrate on their immediate

objectives without caring for the long range objectives of the enterprise. This

emphasis on short term goals goes against the organizational efficiency and

effectiveness and is not a healthy sign.

6. Lack of Adequate Skills and Training:

Most of managers lack adequate skills, knowledge and training required in

interpersonal interaction which is required in the MBO. Many managers tend to sit

down with the subordinate, dictate the goals and targets with no input permitted

from the subordinates and then demand that the goals be achieved in a specified

time. Whether the goals are realistic or not does not enter the picture. In this type of

environment, two way communication is not there and objectives are imposed on

the subordinates. This destroys their morale, initiative and performance.

7. Poor Integration:

Generally, the integration of the MBO with the other systems such as forecasting and

budgeting is very poor. This lack of integration makes the overall functioning of the

system very poor.

8. Lack of Follow Up:

Under the system of MBO, the superior must get in touch with the subordinate at the

appropriate time and at that time, the subordinate will inform the boss exactly what

has been accomplished and how. If the superior delays the meeting, it will create

hurdles in the successful implementation of MBO as the subordinate will also start

taking the programme casually.

9. Difficulty in Achievement of Group Goals:

When goals of one department depend upon the goals of another department,

cohesion is difficult to maintain. In such cases, the achievement of goals will also

become very difficult.

10. Inflexibility:

MBO may make the organization rigid. As the goals are set after every six months or

one year, the manager may not like to revise the goals in between, even if the need

arises, due to fear of resistance from the subordinates. The managers must learn to

handle this situation, because sometimes revision of short term goals is necessary

for the achievement of long range objectives.

11. Limited Application:

MBO is useful largely for the managerial and professional employees. It is not

appropriate for all levels and for everyone because of the heavy demands made by

it. It can be made applicable only when both the subordinates and manages feel

comfortable with it and are willing to participate in it.

12. Long Gestation Period:

It takes a lot of time, sometimes 3-5 years to implement the MBO programme

properly and fully and some research studies have shown that these programmes

can lose their impact and potency as a motivating force over a long period of time.

Lesson 14

Participative Management

Objectives of the Lesson

In this lesson an attempt has been made to explain the data relating to

1. Meaning and scope of participative management

2. Requirements, concerns and benefits of participative management

3. Renesis Likert on participative management

4. Chrish Argyris on participative management

5. Douglas McGregor on participative management

14.1. Participative Management

Participative Management refers to as an open form of management where

employees are actively involved in organization’s decision making process. The

concept is applied by the managers who understand the importance to human

intellect and seek a strong relationship with their employees. They understand that

the employees are the facilitators who deal directly with the customers and satisfy

their needs. To beat the competition in market and to stay ahead of the competition,

this form of management has been adopted by many organizations. They welcome

the innovative ideas, concepts and thoughts from the employees and involve them in

decision making process.

Participative Management can also be termed as ‘Industrial

Democracy’, ‘Co-determination’, ‘Employee Involvement’ as well as ‘Participative

Decision Making’. The concept of employee participation in organization’s decision

making is not new. However, the idea couldn’t gain that much popularity among

organizations. Studies have shown that only 3-5 percent of organizations have

actually implemented this concept in their daily operations. Though the theory of

participative management is as old as the institution of employees and employers

still it is not applied by a large proportion of organizations.

The idea behind employee involvement at every stage of decision

making is absolutely straight. Open and honest communication always produces

good results both for organization as well as workers. Freedom and transparency in

company’s operations take it to the next level and strengthens the basis of the

organization. On the other hand, there are several companies that straightway rule

out the possibility of participative decision making process. According to them,

employees misuse their freedom of expression and participation in decision making

as it provides higher status to employees and empowers them.

However, there are many companies who have embraced this

particular style of management and are now getting positive results. Toyota is the

best example. The company has been following suggestion schemes and employee

involvement procedures for over a decade now. The management receives almost

2,000,000 suggestions and ideas every year and around 95 percent of these are

implemented by the company. Who is not aware of Toyota’s success rate? Around

five thousand improvements per year have made Toyota one of the fastest growing

organizations globally. The need is to develop and implement a comprehensive

company policy and everything works well.

British Airways is another great example of participatory management.

During economic downsizing, employees’ suggestions helped them cut annual cost

of their operations by 4.5 million pounds. This is just unbelievable. The company

would have suffered from huge losses, had it not adopted employees’ suggestions. It

is right to some extent that employees can misuse industrial democracy but with a

proper management of HR functions, this problem can be solved and the operations

of organization can be taken to the next level.

14.2. Scope of Participative Management

The scope of participative style of management certainly depends on

the organization, its nature, functions and processes. Though associating employees

at every stage of decision-making is not possible still regular exchange of

information, ideas, consultations, thoughts, decisions and negotiations between

employer and the employees definitely is a boon to the organization. Few of the

world’s biggest organizations like Toyota, HSBC, British Airways, Satyam, British

Gas and Nokia Cellular have achieved considerable profits and value creation by

implementing the most amazing ideas of their employees. Their success witnesses

the importance of workers’ participation in the process of decision making.

The scope of workers’ involvement in managerial decision-making may

extend to social, economic and personnel decision making depending upon the

requirements of the organization. But there is a difference of opinion about the

extent to which employees can participate in managerial decision-making process.

Should they be equal partners and make joint decisions or should workers be given

opportunities through their seniors to come up with the ideas. The first school of

thoughts favors the actual participation of workers while the second school of

thoughts suggests the consultation of workers in managerial decision making. It is

up to the management to decide which style it prefers and till what extent it

requires involvement of employees. However, if we talk about the scope of

workers’ participation in social, economic and personnel decision-making, it may

have a direct impact on some of the most crucial activities of the organization. Let’s

read further to understand how these three groups of managerial decision-making

can affect any industrial establishment

14.3. Social Decision-Making

It refers to employee involvement in decision making regarding hours

of work, rules and regulations at workplace, welfare measures, workers’ safety,

employee welfare, health and sanitation. In this category, employees have a say in

decisions in these areas. They may take an advantage of their liberty and sometimes,

can dominate the management. Here the concept of bounded or restricted

participation can work well.

14.4. Economic/Financial Decision-Making

It includes involvement of employees on various financial or economic

aspects such as the methods of manufacturing, cost cutting, automation, shut-down,

mergers and acquisition and lay-offs. Inviting ideas from employees on various

issues like how to cut down the operating cost can work wonders.

14.5. .Personnel Decision-Making

The employees’ participation in personnel decision-making refers to

their involvement in various management processes including recruitment and

selection, work distribution, promotions, demotions and transfers, grievance

handling, settlements, voluntary retirement schemes and so on. Participation of

employees in these processes can safeguard their interests and motivate them to

work hard for the betterment of self as well as the organization.

Employee participation in decision-making process although is beneficial.

However, there may be some limits on it to ensure that they do not take advantage

of their liberty and right of participation. There are several ways through which

employees can participate in the whole process. Some of them are financial

participation, participation through collective bargaining, participation at the board

level, participation through ownership, participation through work councils and

committees and participation through suggestion schemes. Anyone of these ways or

processes can be adopted by the management to ensure participation from workers.

14.6. Requirements of Participative Management

A common misconception by managers is that participative

management involves simply asking employees to participate or make suggestions.

Effective programs involve more than just a suggestion box. In order for

participative management to work, several issues must be resolved and several

requirements must be met. First, managers must be willing to relinquish some

control to their workers; managers must feel secure in their position in order for

participation to be successful. Often managers do not realize that employees'

respect for them will increase instead of decrease when they implement a

participative management style.

The success of participative management depends on careful planning

and a slow, phased approach. Changing employees' ideas about management takes

time, as does any successful attempt at a total cultural change from a democratic or

autocratic style of management to a participative style. Long-term employees may

resist changes, not believing they will last. In order for participation to be effective,

managers must be genuine and honest in implementing the program. Many

employees will need to consistently see proof that their ideas will be accepted or at

least seriously considered. The employees must be able to trust their managers and

feel they are respected.

Successful participation requires managers to approach employee

involvement with an open mind. They must be open to new ideas and alternatives in

order for participative management to work. It is important to remember that

although the manager may not agree with every idea or suggestion an employee

makes, how those ideas are received is critical to the success of participative

management.

Employees must also be willing to participate and share their ideas.

Participative management does not work with employees who are passive or simply

do not care. Many times employees do not have the skills or information necessary

to make good suggestions or decisions. In this case it is important to provide them

with information or training so they can make informed choices. Encouragement

should be offered in order to accustom employees to the participative approach.

One way to help employees engage in the decision-making process is by knowing

their individual strengths and capitalizing on them. By guiding employees toward

areas in which they are knowledgeable, a manager can help to ensure their success.

Before expecting employees to make valuable contributions, managers

should provide them with the criteria that their input must meet. This will aid in

discarding ideas or suggestions that cannot be implemented, are not feasible, or are

too expensive. Managers should also give employees time to think about ideas or

alternative decisions. Employees often do not do their most creative thinking on the

spot.

Another important element for implementing a successful participative

management style is the visible integration of employees' suggestions into the final

decision or implementation. Employees need to know that they have made a

contribution. Offering employees a choice in the final decision is important because

it increases their commitment, motivation, and job satisfaction. Sometimes even just

presenting several alternatives and allowing employees to choose from them is as

effective as if they thought of the alternatives themselves. If the employees' first

choice is not feasible, management might ask for an alternative rather than rejecting

the employee input. When an idea or decision is not acceptable, managers should

provide an explanation. If management repeatedly strikes down employee ideas

without implementing them, employees will begin to distrust management, thus

halting participation. The key is to build employee confidence so their ideas and

decisions become more creative and sound.

14.7. Benefits of Participative Management

A participative management style offers various benefits at all levels of

the organization. By creating a sense of ownership in the company, participative

management instills a sense of pride and motivates employees to increase

productivity in order to achieve their goals. Employees who participate in the

decisions of the company feel like they are a part of a team with a common goal, and

find their sense of self-esteem and creative fulfillment heightened.

Managers who use a participative style find that employees are more

receptive to change than in situations in which they have no voice. Changes are

implemented more effectively when employees have input and make contributions

to decisions. Participation keeps employees informed of upcoming events so they

will be aware of potential changes. The organization can then place itself in a

proactive mode instead of a reactive one, as managers are able to quickly identify

areas of concern and turn to employees for solutions.

Participation helps employees gain a wider view of the organization.

Through training, development opportunities, and information sharing, employees

can acquire the conceptual skills needed to become effective managers or top

executives. It also increases the commitment of employees to the organization and

the decisions they make.

Creativity and innovation are two important benefits of participative

management. By allowing a diverse group of employees to have input into decisions,

the organization benefits from the synergy that comes from a wider choice of

options. When all employees, instead of just managers or executives, are given the

opportunity to participate, the chances are increased that a valid and unique idea

will be suggested.

14.8. Rensis Likert on Participative Management

An organization can achieve its purpose either by the exercise of

authority or winning the support of the people. If an organization can achieve its

purpose by winning the support of the people, it will have lasting effect. Successful

leadership is required to achieve the purpose of the organization by winning the

support of the people working in the organization. Before Likert it was believed that

an executive possessing certain traits could provide proper leadership. The Traits

theory of leadership was criticized and replaced by behavioural and situational

theories. Likert belongs to behavioural and situational theories. Likert belongs to

behavioral school of thought. Likert said that an executive who could be able to

behave properly leadership. Let us discuss in this essay his contribution to

administrative thought.

14.9. Chris Argyris on Participative Management

Chris Argyris explored the concept of organizational learning and its

impact on a company's growth, effectiveness and adaptability. Argyris's theories

focused on single- and double-loop learning, the immaturity/maturity continuum,

organizational communication and the effects of each of these on employee

motivation, accountability and empowerment. The management theory of Chris

Argyris states that, in contrast to double-loop learning, which questions underlying

assumptions, single-loop learning, which solves problems superficially and

symptomatically, fails to address the real issues that make companies ineffective.

Argyris theory also asserts that open communication within an organization,

normally considered a good thing, can block learning and hinder progress if it's

based on defensiveness, denial of real problems, inability to face tough issues and

refusal to examine one's own attitudes and contributions to the problem.

14.10. Douglas McGregor Theory of Participative Management

Professor Douglas McGregor is a popular name in the world of

professional managers. He is remembered for his creative contribution to the art of

Science and Management. He proved that reliance on authority as the primary

means of control in industry leads to resistance, restrictions of output and

indifference to organization objectives. It would further create the problems of

refusal to accept authority and would result in inadequate motivation. He advocated

a new value system to which man and management can gainfully commit

themselves for the attainment of professional objectives. He has shown how the

human side of the enterprise can be developed through appropriate managerial

intervention and understanding. Let us discuss in this essay about his contribution

to Theory X and Theory Y.

Conclusion

The main idea behind adopting participative management style is to

create values and bring sense of belongingness among the employees through ideas,

suggestions and complaints. The whole procedure is backed by a strong and

comprehensive reward policy that encourages employees to perform better each

time. Employee participation at each level of decision making process is not at all

harmful if managed efficiently. The whole process can be well coordinated and

controlled by the sincere and honest efforts of human resource managers. In this

context the contributions of Renesis Likert, Chrish Argyris and Douglas McGregor

are worth considering on participative management

Model Questions

1. Explain the meaning and scope of participative management

2. Bring out the requirements, concerns and benefits of participative

management

3. Analyze the contribution of Renesis Likert on participative management

4. Bring out the contribution of Chrish Argyris on participative management

5. Analyze the contribution of Douglas McGregor on participative management

Unit V: Modern Control Techniques in Management

Lesson 15

Management Information System (MIS)

15.1. Introduction

Following are the modern techniques of control which are commonly used

present:

I. Return on Investment (ROI):

II. Programme Evaluation and Review Technique (PERT):

III. Management Information System (MIS):

IV. Management Audit:

V. Social Audit

Out of these five modern control techniques in management, we will be

dealing with only three as per our syllabus, they are:

a. Management Information System (MIS):

b. Management Audit:

c. Social Audit

1. MIS

Management information system (MIS) is an approach of providing timely,

adequate and accurate information to the right person in the organization

which helps in taking right decisions. So MIS is a planned and organized

approach to the transferring of intelligence within an organization for better

management. The information is furnished into useful quantum’s of

knowledge in the form of reports. An effective system of MIS collects data

from all possible sources. The information is properly processed and stored

for use in future.

MIS is of two types:

(i) Management operating system meant for meeting the information needs of lower

and middle level managements. The information supplied generally relates to

operations of the business,

(ii) Management reporting system which supplies information to top level

management for decision-making. The information is presented in a way which

enables management to take quick decisions. An MIS should be so designed which

helps management in exercising effective control over all aspects of the

organization.

Lesson 16

Management Audit:

16.0. Introduction

Management audit is an investigation by an independent organization to find out

whether the management is carried performance out most effectively or not. In case

there are drawbacks at any level then recommendations should be given to improve

managerial efficiency. In the words of Leslie R. Howard, “Management audit is an

investigation of a business from the highest level downward in order to ascertain

whether sound management prevails throughout, thus facilitating the most effective

relationship with the outside world and the most efficient organization and smooth

running internally.”

16.1. Definition

“Management audit can be defined as an objective and independent appraisal of the

effectiveness of managers and the effectiveness of the corporate structure in the

achievement of company objectives and policies. Its aim is to identify existing and

potential management weaknesses within an organization and to recommend ways

to rectify these weaknesses”.

16.2. Objectives:

Management audit has the following objectives:

(i) To see whether the work at all levels is undertaken efficiently or not.

(ii) If the management is not done effectively then suitable recommendations are

made to tone it up.

(iii) Whether the plans and programmes are executed properly or not.

(iv) Suggesting ways and means of increasing managerial efficiency.

(vii) Whether the enterprise’s share in the market is increasing or declining and

how it stands in comparison to competitors.

Management audit assesses every aspect of managerial performance. In case the

management is not able to achieve its objectives then this point is brought to the

notice of shareholders or owners. This review will enable the taking up of corrective

measures so that the working of the business is improved.

(v) It also aims to help management at all levels in the effective and efficient

discharge of duties and responsibilities.

16.3. Why it is Important

Management Audit is the systematic and dispassionate examination, analysis and

appraisal of management’s overall performance. It is a form of appraisal of the total

performance of the management by means of an objective and comprehensive

examination of the organization structure, its components such as department, its

plans and policies, methods of process or operation and controls, and its use of

physical facilities and human resources.

Management Audit is an important tool for the continuous appraisal and evaluation

of the methods and performance of an enterprise. The prime objective of

Management Audit is to locate defects of irregularities in the areas covered by the

audit and to suggest possible improvements. It assists the management in managing

the operations of an undertaking in the most efficient manner practicable.

Economic outlook, the adequacy of the organization structure, compliance with

policies and procedures, reliability of the system of control, adequate protective

methods, causes of variances, effective utilization of manpower and equipment,

efficiency of the method of operation etc., all come under the purview of

management audit.

Thus Management Audit is concerned with evaluation and appraisal of the control

system and information in the entire or in various segments of the organizations. Its

scope has been widened to appraise in detail the systems and subsystems,

procedures, job separation, authorization, accountability, quality of personnel,

quality of information generation etc.

Objective of Management Audit:

The main objectives of Management Audit are:

(a) To ensure optimum utilization of human resources and available physical

facilities.

(b) To point out deficiencies in objectives, policies, procedures and planning.

(c) To suggest improved methods of operations.

(d) To point out weak links in organizational structure and in internal control

system and suggesting improvements.

e) To help management by providing early signals of sickness, ways and means to

avoid the same; and

(f) To anticipate problems and suggest remedies to solve them in time.

16.4. Scope of Management Audit:

The scope of Management Audit has no limitations. The areas of review depend on

the objectives of the business.

Accordingly, the scope of Management Audit may include:

(a) The suitability, practicability and present compliance or otherwise of the

organization with its designated objects and aims.

(b) The current reputation of the organization in relation to the general public and

within its own particular industrial or commercial field.

(c) The rate of return on investors’ capital – whether poor, adequate or above

average.

(d) Relationship of the business with its own shareholders and the investing public

in general.

(e) The ratios of operating returns and the rate of return on capital projects.

(f) The relationship between management and staff within the business.

(g) The aims and effectiveness of management at its various levels such as top level,

middle level and operational level.

(h) Financial policies and control relating to production, sales and distribution and

in other functions of the organization.

16.5. Weaknesses Revealed by Management Audit:

The weaknesses that a Management Audit might reveal may include:

(a) Weaknesses among the members of the Board of Directors.

(b) A lack of awareness among directors and managers of the objectives of the

organization and the extent to which these are being achieved, failure to define

clearly the objectives and responsibilities of individual managers.

(c) Inadequate steps taken to provide adequate finance.

(d) Lack of technical competence of managers.

(e) Retaining authority by managers for matters which ought to have been

delegated.

(f) Lack of clear and identifiable management style in the organization.

(g) Lack of proper staff/management training.

(h) Failure on the part of managers to measure and assess the performance of their

subordinates.

(i) Inadequacy of the management information system.

(j) Lack of enforcement of procedures and too much wastage of time in enforcing

such procedures.

Weaknesses revealed by Management Audit should be studied in detail to ascertain

the real causes and proper remedial action may be taken by the top management to

eliminate such weaknesses.

Lesson 17

Social Audit

17.0. Introduction

‘Social Audit’ is “a public assembly where all the details of a project are

scrutinized”. It is “a way of measuring, understanding, reporting and ultimately

improving an organization’s/programme’s social and ethical performance”. Social

Audit is a process in which details of the resources, both financial and non-financial,

is used by public agencies for development initiatives and is shared with the people

often through public platforms. It includes in-depth scrutiny and analysis of the

working of an entity in which the public is involved vis-à-vis. its social relevance.

17.1. Origin of Social Audit in India:

In India, the initiative of conducting social audits was taken by Tata

Iron and Steel Company Limited (TISCO), Jamshedpur in the year 1979. Social audit

gained significance after the 73rd amendment. The approach paper to the 9th Five

Year Plan (2002-07) emphasized upon social audit for effective functioning of

Panchayat Raj institutions (PRIs) and empowered gram sabhas to conduct Social

Audits in addition to its other functions. National Rural Employment Guarantee Act,

2005 provides for regular “Social Audits” so as to ensure transparency and

accountability in the scheme. The State Government shall identify or establish,

under the National Rural Employment Guarantee Scheme, an independent

organization, Social Audit Unit (SAU), at the state level, to facilitate conduct of social

audit by Gram Sabhas.

17.2. Need of Social Audit

The main reason for the push for social audit is the huge disconnect

between what people want and what people get. As soon as social audit kicks in, it

exercises its control over the policy developers and implementers in the manner of

reduces corruption, monitoring and feedback, accountability and transparency,

participative and democratic, strengthens the Gram Sabha, generates demand,

improves professionalism and collective perform.

Social Audit uncovers irregularities and malpractices in the public

sector and maintains oversight on government functioning, thus reducing leakages

and corruption. It monitors social and ethical impact of an organisation’s

performance and provides feedback on the work. Social Audit ensures

accountability and transparency in working of local government bodies and reduces

trust gap between people and local governments. Social Audit promotes

participation of people in implementation of programmes and makes people more

forthcoming for social development activities. It gives voice and influencing power

to the Gram Sabha, the lynchpin of rural governance structure. It serves as the basis

for framing the management’s policies by raising demands in a socially responsible

and accountable manner by highlighting the real problems. Social Audit boosts

professionalism in public bodies by forcing Panchayats to keep proper records and

accounts of the spending made against the grants received from the government and

other sources. It provides a collective platform such as a social audit Gram Sabha,

for people to express their common needs, resulting into social cohesion.

17.3. Issues and Challenges of Social Audits

The issues and challenges of social audits are rules not followed, not

institutionalized, apathy of implementing agency, social audit units lack

independence, lack of stringent penalty, lack of awareness, absence of well

conceived information system and no incentive to participate.

In many states Social Audit Units (SAUs) don’t seek record from Gram

Panchayats regarding execution of works and expenditure (CAG report), social audit

reports are either not prepared or not made available to gram sabha in local

languages. Government has not mandated institutionalization of Social Audit thus

making auditors vulnerable to implementing agencies, who face resistance and

intimidation and find it difficult to even access primary records for verification. The

implementing agency requests for postponement of social audit, fails to provide

documents on time, does not send independent observers for the Gram Sabha, and

fails to take action on the findings of the social audit. Some Social Audit Units have to

obtain sanction from the project implementation agency before spending funds.

Many states don’t follow the open process specified in the standards for the

appointment of the Social Audit Units director. Several Social Audit Units do not

have adequate staff to cover all the panchayats even once a year. Flouting of Social

Audit principles and norms does not attract any penalty or legal proceeding which

makes Social Audit a toothless exercise. Lack of awareness among Gram Sabha

members and their rights on social audit, Government agencies rely on hazy and

incomplete system of referring to government accounts and government methods of

reporting to track progress of scheme due to which it becomes difficult for auditor

to take stock, speed up, slow down or apply corrective measures.

17.4. Process of Social Audit

The process of social audit can be made more robust through providing

more finances to Social Audit Units, director and staff selection, resource hub on

social audit, support of implementing agencies, legally sanctioned outcomes,

increased frequency, using management information system, punitive action against

non-compliance, refurbishing social audit, monitoring of social audit, displaying

information of notice board, knowledge dissemination through regular meetings,

civil society participation and role of media.

In 2012, Ministry of Rural Development had recommended 1 per cent

of the expenses under Mahatma Gandhi National Rural Employment Guarantee

Scheme for Social Audit, which got reduced to 0.5 per cent later. The selection of

Directors of Social Audit Units should be free of political control and the selection

process should be strictly followed. Are source hub should be constituted under the

National Institute of Rural Development and Panchayati Raj (NIRD&PR) to provide

assistance to State Governments and Social Audit Units on parameters like training

support, monitoring and evaluation, action research, documentation and

certification of trainers etc. Rules must be framed so that implementation agencies

are mandated to play a supportive role in the social audit process and take prompt

action on the findings. Outcomes of social audit must have legal sanctionand state

governments should enact specific rules for this. Social audits must be conducted in

every Gram Panchayat once in every 6 months. Usage of MIS to track details of

schemes at all levels to streamline the life-cycle of programme planning,

implementation and feedback. State Government should promptly fix responsibility

as well as take action against errant officials in SAUs and other ground level

auditors. The refurbishing social audit is made possible by convening the Gram

Sabha at a neutral place and not in the village of the head of the panchayat; meeting

to be chaired by an elderly member who is not a part of Panchayat; putting the

resolutions and decisions to voting; and Video recording of the meeting and

uploading the Social Audit Reports (SAUs) on government website in local

languages. Ministry of Rural Develop should monitor the response (or the lack of it)

by the implementing agency to the social audit findings; a quarterly meeting should

be held between Social Audit Units, implementing agencies and Ministry of Rural

Development officials to monitor the action-taken reports. Gram Sabha should

demand from the Panchayat, display of all the information, on Panchayat notice

board from time to time, about the works being carried out or planned in near

future. Meetings of gram sabha should be held regularly and members/villagers

must be educated about their role in social audit process through these meetings by

Programme Officers. People including students from different universities should be

encouraged to participate as Village Resource Persons. Example, Jharkhand has

instituted a formal mechanism by inviting prominent civil society representatives to

be part of the Social Audit panel. Media should also take responsibility to reach to

the rural areas and spread the awareness through their designed programmes

focusing on the issues of the rural concerns especially Gram Sabhas and their

powers of social audit.

10.5. Model Questions

1. Explain the data relating to Social Audit