Managerial Task and Behavioral Dynamics-full

KARNATAKA STATE OPEN UNIVERSITY

IN COLLABORATION WITH

BHARATH POSTGRADUATE COLLEGE

COMMON PAPERMANAGERIAL TASKS AND BEHAVIOURAL

DYNAMICS

MBA

CODE: MBA-01I SEMESTER

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Course Writer by:

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

LECTURER, DEPARTMENT OF MANAGEMENT STUDIES,

SRM UNIVERSITY, KATTANKULATHUR,

CHENNAI - 603 203

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

This course helps to prepare the students to understand the basic application of managerial functions in day to day operations and activities of corporate and business enterprises.Objectives:1. To understand the role and responsibilities of manager2. To learn the process of management in corporate enterprises.3. To comprehend the behavior of others and adapt to managerial success.4. To make the students to equip the necessary changes and developments in an

organization.

STRUCTURE OF THE COURSE CONTENTBLOCK I MANAGERIAL FUNCTION AND RESPONSIBILITIES

Unit 1: Manager Role, Responsibilities and TasksUnit 2: Managerial Functions and Their CharacteristicsUnit 3: Evolution of Management and Schools of ThoughtUnit 4: Social Responsibilities of Business

BLOCK II PLANNING AND ORGANIZING FUNCTIONUnit 1: Planning Nature, Types and ProcessUnit 2: Decision Making and MBOUnit 3: Organizing Principles and Structural DesignUnit 4: Delegation, Span of Control, Decentralization, Line and Staff

Authority

BLOCK III DIRECTING, CONTROLLING AND CO ORDINATIONUnit 1: Directing, Motivation, And LeadershipUnit 2: Controlling Nature and TechniquesUnit 3: Co Ordination The Essence of ManagementUnit 4: Contemporary Trends in Management

BLOCK IV INTRODUCTIONS TO BEHAVIOURAL DYNAMICSUnit 1: Evolution, Challenges and Opportunities of Organization

BehaviourUnit 2: Personality and Behavioural AssessmentUnit 3: Emotions and LearningUnit 4: Perceptions and Stress Management

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BLOCK V ORGANIZATIONAL BEHAVIOURAL DYNAMICSUnit 1: Change ManagementUnit 2: Organizational ClimateUnit 3: Management of ConflictsUnit 4: Organizational Development Interventions

REFERENCES BOOKS:1. Peter F Druker, Management Tasks and Responsibilities, Truman Talley Books, New

York.2. Stephen P Robbins, Fundamental of Management,Pearson 20033. Koontz & Weirich, Essentials of Management,Tata Mcgraw Hill, New Delhi4. Stephen P Robbins, Organization Behaviour, Prentice Hall Of India, 6th Edition5. C B Gupta, Management Principles And Practice, Sultan Chand & Sons, New Delhi6. L M Prasad, Organization Behaviour, Sultan Chand & Sons, New Delhi7. Consumer Behaviour- Leon Schiffman, Lesslie Lazar Kanuk-

Pearson/PHI,8/E8. Consumer Behaviour- Hawkins, Best, Coney-TMH,9/e,20049. Consumer Behaviour in Indian Perspective – Suja Nair – Himalaya

Publishers, 200410. Consumer Behaviour- Satish k Batra & S H H Kazmi, Excell Books

5. Customer Relationship Management- Peeru Ahamed & SagadevanVikas Publishing

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UNIT - 1 : MANGER ROLE AND RESPONSIBILITIES AND TASKS

Structure

1.0 Aims And Introduction 1.1 Introduction 1.2 Manager’s Are Universal1.3 Mangers Roles1.4 Some Useful Books1.5 Answer To Check Your Progress Exercise

1.0 AIMS AND OBJECTIVES

The main objectives of the lesson is to understand the roles to be played by an HR manager and the various responsibilities and tasks to be performed by him.

1.1 INTRODUCTION

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

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

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

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

1.2 MANAGERS ARE UNIVERSAL:

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

The Managerial Skills and roles

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

1. Technical Skills

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

2. Interpersonal Skills/Human Skills

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

3. Conceptual Skills

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

1.3 MANAGER’S ROLES:

a. Interpersonal roles

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

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

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

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b. Informational roles

Monitor—collect information from organizations and institutions outside their own

Disseminator—a conduit to transmit information to organizational members

Spokesperson—represent the organization to outsiders

c. Decisional roles

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

Disturbance handlers—take corrective action in response to unforeseen problems

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

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

Other roles of an Manager

Operational Roles

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

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

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

Coordinator/linking pin: The HR manager is often deputed to act as a linking pin between various divisions/departments of an organisation. The whole exercise is meant to develop rapport with divisional heads, using PR and communication skills of HR executives to the maximum possible extent.

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

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

o l Placing people on the right job.

o l Charting a suitable career path for each employee.

o l Rewarding creditable performance.

o l Resolving differences between employees and groups smoothly.

o l Adopting family-friendly policies.

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

o l Striking a happy balance between the employee's personal/professional as also the larger organizational needs.

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

Strategic Roles

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

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

How will it get initiated, developed and sustained?

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

All managers are mostly concerned with following activities:

a) Staffingb) Retentionc) Developmentd) Adjustmente) Managing change

HR Professionals’ Responsibilities:

Line manager

Authorized to direct the work of subordinates—they’re always someone’s boss. In addition, line managers are in charge of accomplishing the organization’s basic goals.

Staff manager

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

1.4 SOME USEFUL BOOKS

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1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

1.5 ANSWER TO CHECK YOUR PROGRESS EXERCISE

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

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UNIT - 2 : MANAGERIAL FUNCTIONS

Structure2.0 Aims And Objectives2.1 Introduction 2.2 Managerial Functions2.3 Some Useful Books2.4 Answer To Check Your Progress Exercise


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

2.1 INTRODUCTION

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

According to G. R. Terry -"Management is a distinct process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives by the use of human beings and other resources".

2.2. MANAGERIAL FUNCTIONS

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

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

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

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

Planning Process

The planning process involves the following steps:

1. Analysis of External Environment: The external environment covers uncontrollable and unpredictable factors such as technology, market, socio-economic climate, political conditions etc., within which our plans will have to operate.

2. Analysis of Internal Environment: The internal environment covers relatively controllable factors such as personnel resources, finance, facilities etc., at the disposal of the firm. Such an analysis will give an exact idea about the strengths and weakness of the enterprise.

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

4. Determination of Objectives: The organizational objectives must be spelled out in key areas of operations and should be divided according to various departments and sections. The objectives must be clearly specified and measurable as far as possible. Every member of the organisation should be familiar with its objectives.

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

6. Determining Alternative course of Action: It is a common experience of all thinkers that an action can be performed in several ways, but there is a particular way which is the most suitable for the organisation. The management should try to find out these alternatives and examine them carefully in the light of planning premises.

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

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

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

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

The time-limit of performance. The allocation of tasks to individual employees. The time-table or schedule of work so that the functional objectives are

achieved within the predetermined period.

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

action to ensure that actual performance is as per the plan.

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

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

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

5. Motivating: Motivation is a managerial function to inspire and encourage people to take required action. Motivation is the key to successful management of any enterprise. Motivation can set into motion a person to carry out certain activity.

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

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

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

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

enables group to think together and act together.


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

2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi


1. What are the different types managerial functions?2. Explain the planning process3. Why controlling is important in an organization?4. Explain the importance of directing in your own view.

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UNIT - 3 : EVOLUTION OF MANAGEMENT AND SCHOOL OF THOUGHTS

Structure

3.0 Aims and objectives3.1 Introduction 3.2 Evolution of management theory3.3 Various school of thoughts3.4 Some Useful Books 3.5 Answer To Check Your Progress Exercise


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

1. The Classical school2. Human relation school3. Decision theory school4. Management science school5. Systems theory school6. Contingency theory school

3.1 INTRODUCTION

Management is an important factor in an organisation. Koontz 0' Donnel describes, "No other area or human activity is importance as management". The manager is dynamic, life giving element in every business, without his leadership, resources of production remain resources; and never become production.

3.2 EVOLUTION OF MANAGEMENT THEORY

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

1. Classical school2. Human relation school3. Decision theory school4. Management science school5. Systems theory school6. Contingency theory school

1. Classical School

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3.3 VARIOUS SCHOOL OF THOUGHTS

This includes 3 schools of management thought viz.,

a) Scientific management schoolb) Management process schoolc) Bureaucracy theory school of management

a) SCIENTIFIC MANAGEMENT SCHOOL

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

1. Determination of standards of performance2. Functional foremanship3. Responsibilities of management4. Differential piece work system of wage payment5. Mental revolution

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

b) MANAGEMENT PROCESS SCHOOL

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

c) BUREAUCRACY THEORY SCHOOL OF MANAGEMENT

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

1. Assignment of fixed duties 2. Hierarchy of authority and chain of command3. Administration through rules4. Impersonalized decision; making

5. Employment and promotion on the basis of merit6. Office holding as a career7. Fixed salary for employees

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Limitations of Classical Theories

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

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

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

Their overall approach is mechanistic. :

2. Human Relation School

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

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

Limitations

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

3. Decision Theory School

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

4. Management Science School

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

5. Systems Theory School

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

1. Production sub system2. Supportive sub system3. Maintenance sub system4. Managerial sub system5. Individual sub system 6. Informal groups

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

6. Contingency Theory School

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


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1.Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York2.Stephen P.Robbins, fundamental of management, Pearson 20033.Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi4.Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi5.C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.6.L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi


1. Explain how the evolution of management theory came.2. List the various school of thoughts3. Explain classical school theory4. Explain the Classical school theory 5. Discuss in detail the following a) Human relation school b) Decision theory school

c)Management science school d) Systems theory school 6. Explain about Contingency theory school

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UNIT- 4 : SOCIAL RESPONSIBILITIES OF BUSINESS

Structure4.0 Aims And Objectives4.1 Introduction 4.2 Social Responsibility4.3 Concept Of Social Responsibility4.4 Responsibility Towards Different Interest Groups 4.5 Some Useful Books 4.6 Answer To Check Your Progress Exercise


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

4.1 INTRODUCTION

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

4.2 SOCIAL RESPONSIBILITY

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

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

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

4.3 CONCEPT OF SOCIAL RESPONSIBILITY

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

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

Social Responsibilities of Business

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

Why should business be socially responsible?

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

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

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

3. Survival and Growth -Every business is a part of the society. So for its survival and growth, support from the society is very much essential. Business utilizes the

available resources like power, water, land, roads, etc. of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of the Society.

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

5. Consumer Awareness - Now-a-days consumers have become very conscious about their rights. They protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.

4.4 RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS

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

i. Responsibility towards owners

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

a. Run the business efficiently. b. Proper utilisation of capital and other resources.c. Growth and appreciation of capital.d. Regular and fair return on capital invested.

ii. Responsibility towards investors

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

a. Ensuring safety of their investment,b. Regular payment of interest,c. Timely repayment of principal amount.

iii. Responsibility towards employees

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

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

iv. Responsibility towards suppliers

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

a. Giving regular orders for purchase of goods.b. Dealing on fair terms and conditions.c. Availing reasonable credit period.d. Timely payment of dues.

v. Responsibility towards customers

No business can survive without the support of customers. As a part of the responsibility of business towards them the business should provide the following facilities:

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

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vi. Responsibility towards competitors

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

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

vii. Responsibility towards government

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

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

viii. Responsibility towards society

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

1. To help the weaker and backward sections of the society2. To preserve and promote social and cultural values3. To generate employment4. To protect the environment5. To conserve natural resources and wildlife6. To promote sports and culture7. To provide assistance in the field of developmental research on education,

medical science, technology etc.

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

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

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

4.5 SOME USEFUL BOOKS1.Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York2.Stephen P.Robbins, fundamental of management, Pearson 20033.Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi4.Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi5.C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.6.L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi


1. Why social responsibilities is so important in a business?2. What are the different ways in which social responsibilities to be followed in a

business?

3 Explain how to have Responsibility Towards Different Interest Groups.

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UNIT- 5 : PLANNING NATURE, TYPES AND PROCESS

Structure

5.0 Aims And Objectives5.1 Introduction5.2 Nature Of Planning5.3 Importance Of Planning5.4 Types Of Planning5.5 Some Useful Books5.6 Answer To Check Your Progress Exercise


The main objective of this lesson is to understand the

1. Nature of planning2. Importance of planning 3. Types of planning

5.1 INTRODUCTION

Planning

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

What is planning concerned with?

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

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

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

5.2 NATURE OF PLANNING

1. Planning is a continuous process

It deals with future uncertainties. Planning is a continuous process and no plan is final. It is always subject to revision. It is an interim report. A manager should constantly watch the progress of his plans. He must constantly monitor the conditions, both within and outside the organization, to determine if changes are required.

2. It is an intellectual process

According to Koontz and o' Donnel, planning is an intellectual process involving mental exercise, fore seeing future developments, making forecasts and the determination of best course of action.

3. Focus on objectives:

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

4. Primacy of planning

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

5. Planning is pervasive

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

6. Planning is a selective process

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

a)What is to be doneb) How it is to be donec) When it is to be doned) by whom it is to be done

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7. Planning is flexible

The process of planning should be adaptable to changing environmental conditions. Koontz and O’Donnell states that "effective planning requires continual checking on events ,and forecasts and the redrawing of plans to maintain a course towards a designed goal."

8. Planning, is an integrated process

Planning involves not only the determination of objectives but also the formulation of sound policies, programmers, procedures and strategies for accomplishment of these objectives. It is the 'first of the managerial functions and facilitates all other functions like organising, staffing, directing and controlling. 9. It is a decision making process

Decision making is an integral part of planning. It is defined as a process of choosing among alternatives. Decision making will occur at many points in the planning process.

10. It is directed towards efficiency, economy and accuracy

Efficiency of plan is measured by its contribution to the objectives as economically as possible. We must have the maximum results at minimum cost. Planning also focuses on accurate forecasts. The guiding principle of a good plan is maximum output and profit at the minimum cost.

5.3 IMPORTANCE OF PLANNING

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

2. It tackles increasing complexity is modern business

Modern business requires large .number of different specialists. This makes it necessary for the management to depend on planning to get clear idea of what is to be done, when it is to be done, where it is to be done and how it is to be done.

3. It helps in co-ordination

Planning, through its defined objectives, well publicized policies, programme and procedures helps the management in the co-ordination process. Plans are selected courses along which the management desires to co-ordinate group action. 4. It helps in exercising effective control

Planning is clearly a prerequisite for effective controlling. It is utterly foolish to think that controlling could be accomplished without planning. Without planning, there is no predetermined understanding of the desired performance.

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

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

6, It facilitates unity of action.

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

7. It helps in avoiding Business failures.

As planning involves the selection of best objectives, unity of action, co-ordination of activities, economy in operation and Off-setting future uncertainty and change, there is possibility of avoiding business failures.

8. Secures economy and efficiency in operation.

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

9. Guides decision making.

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

10. Focuses attention on objectives and results.

Every organisation exists to achieve certain objectives. Planning concentrates attention on the dominant goals of the organisation. Planning makes objectives concrete and tangible.

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5.4 TYPES OF PLANNING

Long Range and Short Range Planning

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

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

Functional and Corporate Planning

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

Group or Sectional Planning

This refers to planning for specific groups or sections with in a department or division. Such plans are prepared to implement departmental or divisional plans. Sectional plan are formulated at operating level of management.

Environment For Effective Planning

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

1. Climate for planning

A climate conducive to planning should be established throughout the organisation. Every superior manager should remove obstacles to planning and provide facilities for

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

2. Clear cut objectives

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

3. Management information system

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

4. Careful premising

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

5. Top management support

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

6. Participation in planning

"Planning can be collaborative or joint process, Planning is likely3 to be pragmatic and efficient when managers at alt levels are given an opportunity to make suggestions. These consultations will improve their commitment to 'planning. Planning committee at various levels may be constituted. Another participative planning is 'grassroots budgeting'-where budgeting process starts in lower level and carried upward to top level. 7. Sound communication

Successful implementation of plans requires complete understanding and motivation on the part of employees at all levels. This is possible when various plans are communicated clearly in time.

8. Integration of plans

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

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9. Open system approach

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

10. Cost benefit analysis

The planners should conduct from time to time a cost benefit analysis, to ensure that the benefits of planning are more than the cost involved. Any plan which is not worth its cost should be discarded. 5.5 SOME USEFUL BOOKS


2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi4. Koontz and Weirich, Essentials of Management, Tata McGraw Hill, New Delhi5. C..B.gupta, Management Principles and practices, Sultan chand and sons , New Delhi.6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi

5.6 ANSWER TO CHECK YOUR PROGRESS EXERCISE1. Explain the nature of planning2. Write about the importance of planning 3. Explain in detail the different types of planning in an organization.

UNIT-6 :DECISION MAKING

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Structure6.1 Aims and objectives6.2 Introduction6.3 Definition6.4 Characteristics6.5 Rationality in Decision Making

6.6 Classification of Decisions 6.7 Decision Making process 6.8 Types of managerial decision 6.9 let us sum up 6.10 Key words 6.11 Some Useful Books 6.12 Answer To Check your Progress EXERCISE


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

6.2 INTRODUCTION

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

6.3 Definition

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

- “ Allen “ “ Decision–making is a process of selection from a set of alternative courses of action

which is thought to fulfill the objective of the decision-problem more satisfactorily than others ”

- “ Haynes & Massie “

6.4 CHARACTERISTICS

It is goal-oriented activity. It is aimed at achieving certain stated goals of the organization. It is a process of selection from amongst alternative courses of action, envisages two

or more alternatives from which a final choice can be made. It involves commitment in the face of uncertainty.

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Decision-making is a complex mental exercise involving use of careful thinking and deliberation, analysis and verification.

It can be both positive & negative. It may just be a decision not to decide. It involves a time dimension and a time lag. It is situational. A manager may take one decision under particular circumstances and

another in a different situation.

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

6.5 RATIONALITY IN DECISION MAKING :-

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

Economic Model :

- Economic rationality implies that decision making tries to maximise the values in a given situation by choosing the most suitable course of action.

- A rational business decision is one which effectively and efficiently assures the attainment of aims for which the means are selected.

Bounded Rationality :- It explains the decision making behaviour in real life.- Under a model, for a variety of reasons, complete rationality is not always

possible.- That is why people prefer to take satisfactory decisions instead of ideal or

optimum decision.- In reality, they confine themselves to few important alternatives which have

limited risks combined with favourable consequences.

Evaluation of Alternatives :-

Quantitative and Qualitative Factors :

- Quantitative, such as fixed & operating costs- Qualitative, such as quality of labour relations, the risk of technological changes

& the domestic (or) international political climate need to be taken in to consideration

- Attention has to given to both quantitative & qualitative factors when comparing alternatives

Marginal Analysis :- It is useful to evaluate the given alternatives- The objective is to maximise profits, goal will be reached, when the additional

revenues & additional cost are equal- Marginal Analysis can be used by comparing factors other than costs & revenues.

Cost effectiveness Analysis :

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- Is an improvement over the marginal analysis technique.- It seeks the best ratio of benefits & costs- Finding the least costly way of reaching an objective- A technique for choosing the best plan when the objectives are less specific than

sales, costs or profits- It focuses on the results of a program- It involves a comparison of the alternative in terms of the overall advantage- It helps weigh the potential benefits of each alternative against its potential cost.

Selecting an Alternatives :- (OR 3 Approaches)

Experience- Relying on past experience- The experienced managers are familiar with the system requirements & have

knowledge to decide on a particular problem- Good decisions must be evaluated against future events

Experimentation- Among alternatives is to try one of them & see what happens.- It is to be most expensive of all techniques- Some more doubts left even after experimentation- Should be used only after considering other alternatives

Research & Analysis

- Means solving a problem by trust comprehending it- Search for relationships among more critical of the variables, constraints &

Premises- This is to develop a model simulating the problem

6.6 CLASSIFICATION OF DECISIONS :-

Programmed & Non-Programmed Decisions :- It deals with routine or repetitive type of problem. - There are established procedures to take decisions. - Middle or low legal executives take this type of decision.

Non-Programmed Decisions :- It deals with unique or unusual or non-routine problems.- There is no established procedure.- This type of decision is taken by top level executives.

Organisational & Personal Decisions :- Taken by an individual in his official capacity to further the interest of the

organisation known as organisational decisions.- This is based on rationality, judgement and experience.- Such decisions affect the functioning of the organisation directly.

Key to Success in Decision-Making :-

Be problem-oriented not just solution-oriented.

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

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

(1) rational model (2) non-rational models.

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

6.7 DECISION MAKING PROCESS

Any decision-making process contains seven basic steps : (1) Identifying the problem (2) Identifying resources and constraints (3) Generating alternative solutions, (4) Evaluating alternatives, (5) Selecting an alternative, (6) Implementing the decision, (7) Monitoring the decision.

Defining the Problem:- The first step in decision-making is that of recognizing & identifying the problem.- A written problem statement should be prepared, specifying the nature and

magnitude of the problem.- In order to identify the real problem, a manager should look beyond the symptoms

and take an overall view of the situation.- Clear understanding of the problem is necessary.

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

Developing Alternative Solutions:- After the problem is analyzed, the decision maker has to develop alternative

solutions for the problem.- A problem can be solved in several ways all of which are not equally good.

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- Best alternatives are considered before a course of action is selected.

Evaluating the alternatives:- The various developed alternatives are compared and scrutinized to identify the

pros and cons of each. - Before evaluation, the criteria for evaluation should be specified.- The criteria such as Risk, Economy of effort (Cost, time & effort involved in each

alternative), Timing (Whether the situation is urgent or not) & Limitation of resources (Resource and other factors strategic to the decision.

Selecting the Best Solution:- Selecting the best solution among the alternatives is based on some important

factors, such as Experience, Experimentation & Research and analysis.

Implementing the Decision:- After a decision is taken, it needs to be put into practice. It involves several steps.- First, the decision should be communicated to all concerned employees.- Secondly, responsibility for carrying out the decision is assigned to specific

individuals. - Thirdly, any resistance to the decision has to be overcome.- Fourthly, procedures should be developed for executing the decision.- Lastly feedback mechanisms are developed to check on the progress of

implementation.

Monitoring the decision- Once the decision has been put into practice, actual results of action should be

compared with the expected results.- If there is any deviation the same should be analysed to identify the causes,

wherever necessary the decision should be modified.- An effective feedback is necessary for determining the effectiveness of

implementation.

6.8 TYPES OF MANAGERIAL DECISION

Managerial decisions are of two types – programmed decisions, and non-programmed decisions. Programmed decisions involve simple, common, frequently occurring problems. They have well-established and understood solutions. Non-programmed decisions deal with unusual or exceptional problems. Based on the degree of certainty involved, every decision-making situation falls into one of three categories: (i) certainty, (ii) risk, and (iii) uncertainty. In conditions of certainty, the decision-maker knows with reasonable certainty what the alternatives are, what conditions are associated with each alternative and the outcome of each alternative. Under a state of risk, the decision-maker has incomplete information about available alternatives but has a good idea of the probability of particular outcomes of each alternative. Conditions of uncertainty exist when the future environment is unpredictable and everything is in a state of flux.

The decision-maker is not aware of all available alternatives, the risks associated with each alternative, or the consequences of each alternative or their probabilities. In order to carry out managerial functions effectively, managers at all levels require vital information with speed, brevity, precision and economy. A management information system is a computer-based

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information system that gathers comprehensive data, analyzes and summarizes it, and provides it in a form that is of value to functional managers. A decision support system is an interactive computer system that can be easily accessed and operated by people who are not computer specialists, and who use this system to help them in planning and decision-making. Major decisions in organizations are often made by groups rather than a single individual. The most common forms of group decision-making are: interacting groups, Delphi groups, and nominal groups. Finally, the different decision-making techniques such as marginal analysis, financial analysis, break-even analysis, ratio analysis and operations research techniques are also present.

6.9 LET US SUM UP

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

6.10 KEY WORDSDecision making process

6.11 SOME USEFUL BOOKS1. Define decision making and explain the characteristics of decision making.2. What is rationality in decision making?3. What are the classification of decision making?4. Explain the process of decision making.5.5. Discuss about the managerial decision types.


1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

UNIT:7 ORGANIZING PRINCIPLES AND STRUCTURAL DESIGN

Structure7.0 Aims And Objectives7.1 Introduction

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7.2 Organization As A Process7.3 Organization As A Structure7.4 Principles Of Organization (Features Of Good Organization Structures)7.5 Formal And Informal Organization 7.6 Advantages Of Informal Organization To Members7.7 Disadvantages Of Informal Organization

7.8 Types (Forms) Of Organization:7.9 Some Useful Books7.10.Answer To Check Your Progress Exercise

7.0 AIMS AND INTRODUCTION

The main objectives of the lesson is to understand the following

1. Organization as a process2. Organization as a structure3. Principles of organization (features of good organization structures)4. Formal and informal organization

7.1 INTRODUCTION

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

7.2 ORGANIZATION AS A PROCESS

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

According to Louis A.Alien, "organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively in accomplishing objectives."

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

Organizing process involves differentiation and integration of activities. Differentiation is the segmentation of structure into subsystems, while integration involves

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creating unity of effort among the various sub-systems.^ This is the dynamic and humanistic meaning of the term organization. :

7.3 ORGANISATION AS A STRUCTURE

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

Nature of Organization

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

o Organization as a process or management is concerned with identifying and grouping of activities to be performed.

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

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

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

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

o Organizing; as a process involves a: number of steps like determination of objectives, grouping of activities, assignment of duties to persons, delegation of authority and creating authority relationship.

7.4 PRINCIPLES OF ORGAMISATION (FEATURES OF GOOD ORGANISATION STRUCTURES)

There is a need to follow certain principles in order to formulate and develop a Sound and efficient organization structure. The important principles of organization are.

1. Unity of Objective

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

2. Specializations or Division of Work

The activities of every member should be confined, as far as possible, to the performance of a single function. The activities of enterprise are divided according to different functions and the same assigned to persons according to their specialization. 3. Span of Control

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

4. Exception Principle

Only exceptionally complex matters should be referred to executives for their decision and subordinate should decide matters of routine nature themselves. The execution can concentrate their time on important matters instead of spending their time on routine matter.

5. Scalar Principle

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

6. Principle of Authority

Authority given to manager enables him to accomplish the objectives of the enterprise. Hence, authority of each manager should be clearly defined and also it should be equal to the responsibility entrusted.

7. Unity of Command

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

8. Principle of delegation

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

9. Principle of responsibility

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The supervisor should not be allowed to avoid responsibility by delegating authority to his subordinates. The superior should be held responsible for the. Acts of his subordinates to whom he has delegated.

10. Flexibility

The organisation structure should be adaptable enough to accommodate technical and other changes in the environment. Hence, complicated procedures, red tape and complexity of control should be avoided.

11. Community

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

12. Unity of direction

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

13. Efficiency

The organization structure should facilitate the achievement of objectives at minimum possible cost. It should permit the optimum use of resources.

14. Principle of simplicity

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

7.5 FORMAL AND INFORMAL ORGANISATIONS

Formal Organization:

It refers to organization structure deliberately created by management for achieving the objectives of the enterprise. It is a pattern of activities, process, and human relationship and rules planned and structured in order to accomplish organizational goals. According to Chester Barnard, "an organization is formal when activities of two or more persons are consciously coordinated towards a "common objective." In a formal organization, the position, authority, responsibility and accountability of each level or clearly defined. By means of rules, policies and other regularities of the organization, it prescribes relationship among the people working in the organization. All enterprises having a system of well-defined position, authority responsibility, relationship, rules policies etc., are considered as forma! Organizations.

The essence of formal organization is conscious common purpose and forma! Organization comes into existence when persons,

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a) Are able to communicate with each other.b) Are willing to actc) Share a purpose

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

Informal organization:

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

7.6 ADVANTAGES OF INFORMAL ORGANISATION TO MEMEBRS

1. Sense of belonging

In a forma] organization a worker is like a drop of water in a ocean and will not be any attachment in between management and workers. Hence, the workers will not have a sense of belonging. In informal organization, it gives to each member a human consideration which boost his self image and personality.

2. Safety value for emotional problems

The workers are frustrated and gets tension in their routine work. For example, his supervisor might have reprimanded him or an overbearing customer might have harassed

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him. In such a situation, he seeks a sympathetic ear of a friend in the informal organization. His friend, who got the similar problem share and understood his troubles.

3. Aid on the job

In case of accidents or illness, members of informal organization may help each other. If a worker breaks a rule, he may be protected from authoritative action. Changing work assignments increases the group efficiency. 4. Breeding ground for innovation and originality

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

5. Important channel of communication

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

Informal organization forces manger to plan and act more carefully. Every manager knows that there is 3 check and balance on his unlimited use of authority. 7. Social control

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

7.7 DISADVANTAGES OF INFORMAL ORGANIZATION

1. Conflicting norms

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

2. Resistance to change

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

3. Undermine discipline

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

4. Rumors

The grapevine often carries rumors or false information which is detrimental to smooth functioning of an organization. It destroys confidentiality of the enterprise.

5. Power politics

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

6. Role conflicts

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

7.8 TYPES (FORMS) OF ORGANIZATION:

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

Line organization Functional organization Line and staff organization Project organization Matrix organization Committees organization

Line organization:

It is the simplest, most direct and oldest type. It is often referred to as "military", traditional, hierarchical, because the line of authority and responsibility resembles the one followed in army or in the church. In this type, each position has general authority over lower positions in the hierarchy in the accomplishment of the main operations of the firm. Authority flows directly from chief executive to the manager, to .assistant manager, to foreman and to the workmen. Each position in the organization structure enjoys general authority over ail the

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lower 'positions in the hierarchy. Authority flows downwards, responsibility moves upwards, but directly in a straight line. Scalar principle and the principle of unity of command are strictly followed. No subordinate is under two on more superiors. The line of authority is essentially simple mathematical sub-division. Promotion is step by step upwards. This system can be successfully followed

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

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

Where work is simple and is almost of routine nature.

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

Where the labor management problems are not difficult to solve.

Advantages

1) Simplicity

Line organization is the most simple to establish and operate. Line of authority and-responsibility is direct, simple and clear. Every individual understands to whom he is responsible. The authority and responsibility of every position-,is clearly defined. There is no confusion as to -the role of an individual in the organization. 2) Prompt decision

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

3) Effective discipline

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

4) Orderly communication

Communication Between supervisors and subordinates flows in direct vertical line.

5) Unified control

Unit of command- results in close personal contacts between supervisors and subordinates. Direct and close contacts facilitate effective supervision and control.

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6) Economical

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

7) Fixed responsibility

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

8) Executive development

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

9) Co-ordination

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

Disadvantages

Line organization suffers from the following drawbacks.

1. Lack of specialization:

There is no scope for specialization. A manager has to perform a variety of functions which might not be interrelated. Any manager cannot be equally good in all the functions. Hence, the quality of management will be poor.

2. Over loading

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

3. Autocratic approach

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

4. Low morale

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

5. Instability

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

6. Rigidity

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

FUNCTIONAL ORGANISATION,

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

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

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

Line and Staff Organizations

This is a combination of line and functional structures. Generally this, line authority flows in a vertical line in the same manner as the line organization. In addition, staff specialists are attached to line positions lo advice them on important matters. These specialists do not have power of command over subordinates in other departments. They are purely of advisory nature. "Then the work of line executives increases, they need advice, information and help of staff specializes. Hence, staff positions are created to support line managers. Every staff specialist has line authority over the subordinates in his own department. For example, the chief accountant has command authority over accounts and clerks in accounts department. But he has only advisory relationship with other departments like production and sales.

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Type of staff

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

Advantages:

1. Specialization:

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

2. Flexibility

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

3. Expert advice

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

4. Sound decision

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

5. Relief to line executives

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

6. Opportunities for advancements

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



2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New

Delhi

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

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

6. L.M.Prasad, Organizational Behaviour, Sultan chand and sons, New Delhi


1. Explain the process of organization2. Discuss about Organization as a structure3. Comment on Principles of organization4. Formal and informal organization - Discuss

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

Structure

8.0 Aims And Objectives8.1 Introduction8.2 Delegation8.3 Span Of Control8.4 Centralization8.5 Decentralization 8.6 Line And Staff Authority 8.7Some Useful Books8.8 Answer To Check Your Progress Exercise


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

8.1 INTRODUCTION

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

8.2 DELEGATION

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

Characteristics of Delegation

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

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

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

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

5. Delegation may be specific or general. Similarly, it can be written or unwritten. Delegation is specific when course of action for specific objectives are specified; it is general when these are not specified, though objectives are specified.

8.3 SPAN OF CONTROL

MEANING

The term 'span of management' is also referred to as span of control, span of supervision, span of authority or span of responsibility. It includes the number of subordinates who report directly to a manager.

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

1. Capacity of Superior of factors determining span of management

2. Capacity of Subordinates of factors determining span of management

3. Nature of Work of factors determining span of management

4. Degree of Decentralization of factors determining span of management

5. Planning of factors determining span of management

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

7. Communication Techniques of factors determining span of management

8. Supervision from Others of factors determining span of management

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8.4 CENTRALIZATION

This system results in certain advantages to the organization

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

2. Providing Integration. Certain amount of centralization is necessary to unify and integrate the total operation of the enterprise. Some sort of central direction is required to keep all parts of the organization moving harmoniously together towards a common objective. Thus, it acts as a binding force on the various parts of the organization.

3. Uniformity of Action Centralization brings uniformity in all actions in the organization. Thus, to the extent that the organization wishes all its units to do the same thing in the same way or the same time, there must be centralization of appropriate decisions.

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

Other Benefits. Besides, centralization minimizes duplication of work and wastages requires easier control, and makes communication easier.

However, these advantages of centralization are limited in certain circumstances and particularly in smaller organizations. A stage comes when decentralization becomes desirable to achieve its advantages and where the limitation of centralization come in the way of successful organizational functioning.

8.5 DECENTRALIZATION:

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

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

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

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

4. Motivating Mangers. Various research studies have shown that we organization structure itself can influence the people within the organization. The extent to which the organization facilities participation, communication, delegation, mutual interaction, and interdependence, motivates people for higher productivity. Decentralization tends to emphasize those desirable characteristics in whatever type of structure it is found.

5. Encouraging Development of Managers. Managers are made, not born and decentralization is one of the best methods of developing managers in the organizations. Other methods of management development have their own contributions in this field. However, giving managers a management job to do and to delegate authority for decision-making make them more mature and competent and broad-based. The problem of succession is overcome this way and the future growth and success of the organization are ensured as most organizations find lack of managerial talent a limiting factor in growth. Perhaps, the necessity of management development is one of the compelling reasons for decentralization.

8.6 LINE AND STAFF AUTHORITY

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

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

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

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

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

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

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



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

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

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

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


1. Write the importance of delegation and centralization2. What is meant by span of control?3. Decentralization is important. Discuss4. What is the role of line and staff authority?

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UNIT: 9 DIRECTING, MOTIVATION AND LEADERSHIPStructure

9.1 Aims And Objectives9.2 Introduction9.3 Directing9.4 Importance Of Directing9.5 Techniques Of Directing

9.6 Theories Of Motivation 9.7 Leadership

9.8 Leadership Styles9.9 Theories Of Leadership9.10 Let Us Sum Up

9.11 Key Words 9.12 Some Useful Books 9.13 Answer To Check Your Progress Exercise

9.1. AIMS AND OBJECTIVES

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

9.2. INTRODUCTION

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

9.3. DIRECTING

Meaning:

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

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

Issuing orders and instructions by a superior to his subordinates.

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

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

Supervising subordinates to ensure compliance with plans".

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

1) Providing effective leadership

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

3) Effective communication

4) Providing climate for 'subordinate' development

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

Characteristics of directing

Directing has the following characteristics features:

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

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

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

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

9.4. IMPORTANCE OF DIRECTING

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

1) Direction integrates employees' efforts: The individual efforts needs to be integrated so that the organisation achieves its objectives. No organisational objective can be achieved without the function of direction.

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

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

4) Direction facilitates changes: To manage change management must motivate individuals to accept these changes which can be accomplished through motivation.

9.5. TECHNIQUES OF DIRECTION:

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

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

The following advantages are claimed in this type of method:

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

This method has the following disadvantages:

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

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

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

9.6. MOTIVATION

Concept of motivation

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

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

Meaning

According to Knootz and O’Donnell, “motivation is a general term applying to the entire class of drives, desires, needs wishes and similar forces that include an individual or a group of people to work.

Scott defines “Motivation means a process of stimulating people in action to accomplish desired goals”.

Importance of motivation

Motivation is one of the important functions of the management without which organizational objectives are difficult to achieve. It is the integral part of the management process and every manager must motivate his subordinates to create in them the will to work. Motivation is necessary for better performance.

The importance are discussed below

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

Proper motivation improves the efficiency of operation

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

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

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

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

High motivation helps to reduce resistance to change

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

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

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A proper motivation scheme promotes closer relationship between enterprise and workers.

Hierarchy of needs – Maslow’s theory

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

Some of the salient features of this theory are as follows

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

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

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

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

Various levels needs are inter dependent and overlapping

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

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

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Maslow’s hierarchy of need theory

1. Physiological needs

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

2. Safety needs

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

3. Social needs

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

4. Esteem needs

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

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

5. Self – actualization needs

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

Types of motivation

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

Positive or Incentive Motivation

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

Positive motivation include:-

1) Praise and credit for work done2) Wages and Salaries3) Appreciation4) A sincere interest in subordinates as individuals5) Delegation of authority and responsibility

Negative or Fear Motivation

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

The imposition of punishment frequently results in frustration among those punished, leading to the development of maladaptive behavior. It also creates a hostile state of mind and an unfavorable attitude to the job. However, there is no management, which has not used the negative motivation at some time or the other.

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9.7. THEORIES OF MOTIVATION

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

McGregor's Theory X and Theory Y

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

Theory X:

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

Management is responsible for organizing the elements of productive enterprises - money, material, equipment, and people - in the interest of economic ends.

With reference to people it is a process of directing their efforts, motivating them, controlling their actions, modifying their behaviour in order to be in conformity with the needs of the organization.

Without this active intervention by management, people would be passive – even resistant to organizational needs. Hence they must be persuaded, rewarded, punished and properly directed.

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

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

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

He is by nature resistant to change.

He is gullible, not very bright.

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Theory Y:

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

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

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

3) Commitment to objectives is a result of the rewards associated with their achievement. People select goals for themselves if they see the possibilities of some kind of reward that may be material or even psychological.

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

5) He has capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems in widely, not narrowly distributed in the population.

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

Maslow's Need-Hierarchy Theory of Motivation

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

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

1. Physical needs,2. Safety or security needs,3. Affiliation or social needs,4. Esteem needs and5. Self-actualization needs.

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

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

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

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THEORY X THEORY Y

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

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

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

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

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

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

7) According to Theory X, people lack self motivation and require be externally controlling and closely supervising in order to get maximum output.

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

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

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

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

Hertzberg's Theory of Motivation

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

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

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

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

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

Victor Vroom's Expectancy Theory

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

a) Valance: Valence means the strength of an individual's preference for a particular outcome. A valence of zero occurs when the individual is indifferent towards the outcome. The valance is negative when the individual prefers not attaining the outcome to attaining it.

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

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

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McClelland's Need for Achievement Theory

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

1. The need for achievement i.e., strives to succeed.2. The need for affiliation i.e., warm relationship with others.3. The need for power i.e., controls other people.

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

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

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

iii. They can set moderately challenging goals.

iv. They find accomplishing a task intrinsically satisfying.

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

Evaluation: Achievement motivated people is the backbone of any organization. As such considerable time and attention must be devoted to constructing ways of developing the achievement motive at the managerial level. Organizational climate must be conducive to high achievement. Managers must try to raise the achievement need level of subordinates by creating the proper work environment, increasing responsibility and autonomy and rewarding excellence in performance.

9.8. LEADERSHIP:

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

In business, leadership is welded to performance. Effective leaders are those who increase their companies' bottom lines. To further confuse the issue, we tend to use the terms

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

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

Tennenbaum et al defines leadership as “interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals”. This definition emphasizes that influencing behavior is through communication but does not speak about enthusiasm.

Terry says therefore “Leadership is essentially a continuous process of influencing behaviour. A leader breathes life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into a burning passion for accomplishment”—this establishes that the will to do is triggered by leadership.

Another behaviour scientist defines it “Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives”

However Peter Drucker defines leadership as follows. “Leadership is the lifting of man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations”.

Formal and informal leadership

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

But when a person uses interpersonal influence in a group without designated authority or power – using only their charm, intelligence, skills, and other traits so that people turn to them for advice, direction and guidance—informal leadership is emerging out in him. Religious leaders, civic leaders, opinion leaders are examples.

Successful formal managers having charismatic personality are also becoming informal leaders in situations.

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

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

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

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

9.9. LEADERSHIP STYLES

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

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

Explanation for different types of leadership

Authoritarian leadership:

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

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

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

However a majority of members do not like strictness and discipline especially because motivation is negative. Single leadership creates frustration and lacks motivation. Morale is lost and unbalanced rewards create conflicts jeopardizing the organizational efficiency since communication is also one-way.

Characteristics of Autocratic Leadership

Some of the primary characteristics of autocratic leadership include:

Little or no input from group members Leaders make the decisions Group leaders dictate all the work methods and processes Group members are rarely trusted with decisions or important tasks

Benefits of Autocratic Leadership

Autocratic leadership can be beneficial in some instances, such as when decisions need to be made quickly without consulting with a large group of people. Some projects require strong leadership in order to get things accomplished quickly and efficiently.

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

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

Democratic leadership styles

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

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

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

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

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

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

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

Characteristics of Democratic Leadership

Some of the primary characteristics of democratic leadership include:

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

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

iii. Creativity is encouraged and rewarded.

Benefits of Democratic Leadership

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

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

Characteristics of Democratic Leadership

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Some of the primary characteristics of democratic leadership include:

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

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

c) Creativity is encouraged and rewarded.

Benefits of Democratic Leadership

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

Free rein

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

9.10. THEORIES OF LEADERSHIP

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

1. "Great Man" Theories:

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

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2. Trait Theories:

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

3. Contingency Theories:

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

4. Situational Theories:

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

5. Behavioral Theories:

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

6. Participative Theories:

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

7. Management Theories:

Management theories (also known as "Transactional theories") focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished.

8. Relationship Theories:

Relationship theories (also known as "Transformational theories") focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task.

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

Qualities of leader

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

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

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

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

Honest dealings, predictable reactions, well-controlled emotions, and an absence of tantrums and harsh outbursts are all signs of integrity. A leader who is centered in integrity will be more approachable by followers.

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

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

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

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

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

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

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

Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearly state what one expects so that there will be no misunderstandings. A leader must be assertive to get the desired results. Along with assertiveness comes the responsibility to clearly understand what followers expect from their leader.

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

9.11. LET US SUM UP

The importance of direction, motivation and leader is very important in an organisation It is the human element which handles the other resources of the organisation. Each individual in the organisation is related with others and his functioning affects others and, in turn, is affected by others.

9.12. KEY WORDS

a) Controllingb) Leadershipc) Motivationd) Autocratic e) Free rein f) Humors

9.13. SOME USEFUL BOOKS



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9.14. ANSWER TO CHECK YOUR PROGRESS EXERCISE

a) Explain the process of directing

b) What is the characteristics of directing

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

d) What is leadership and its importance.

e) Explain the types of leadership.

f) What are the qualities of a leader?

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UNIT: 10 CONTROLLING NATURE AND TECHNIQUESStructure10.0 Aims and objectives10.1 Introduction10.2 View of control10.3 Characteristics of control10.4 Steps in controlling process10.5 Effectiveness of control system10.6 Let us sums up10.7 Key words10.8 Some Useful Books10.9 Answer To Check Your Progress Exercise


The main objectives of the lesson is to understand the views of control, characteristics and the steps in control process

10.1 INTRODUCTION

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

10.2. VIEWS OF CONTROL

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

According to George R Terry - "Controlling is determining what is being accomplished i.e., evaluating the performance and if necessary, applying corrective measures so that the performance takes place according to plans."

According to Robert N Anthony - "Management control is the process by which managers assure that resources are obtained and used effectively and efficiently."In the words of Koontz and O'Donnell - "Managerial control implies measurement of accomplishment against the standard and the correction of deviations to assure attainmentof objectives according to plans."

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

Controlling is an important function of management. It is the process that measures current performance and guides it towards some predetermined objectives. Under primitive

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

Planning

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

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

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

10.3 CHARACTERISTICS OF CONTROL

Managerial control has certain characteristic feature. They are:

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

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

Control is linked with future, as past cannot be controlled. It should anticipate possible deviations and to think of corrective action for the control of such deviations in the future. It is usually preventive as presence of control system tends to minimize wastages, losses and deviations from standards.

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

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

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

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

Information or feedback is the guide to control. The feedback is helpful to the manager to determine how far the operations are proceeding in conformity with plans and standards, and where remedial action is called for.

Control involves continuous review of standards of performance and results in corrective action which may lead to change in the performance of other functions of management. This makes control a dynamic and flexible process.

Control is a continuous activity. It involves constant analysis of validity of standards, policies, procedures etc.

10.4. STEPS IN CONTROL PROCESS

There are three basic steps in a control process:

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

Establishing Standards

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

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

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

3) Standards are used as the criteria or benchmarks by which performance is measured in the control process. It should not be either too high or too low. They should be realistic and attainable.

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

Measuring and comparing actual Results against Standards

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

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

Taking Corrective Action

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

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

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

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

10.5 ESSENTIALS OF EFFECTIVE CONTROL SYSTEMS

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

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

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

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

5) Economical: Economy is another requirement of every control. The benefit derived from a control system should be more than the cost involved in implementing it. A small company cannot afford the elaborate control system used by a large company. A control system is justifiable if the savings anticipated from it exceed the expected costs in its working.

6) Acceptable to Organisation Members: The system should be acceptable to organisation members. When standards are set unilaterally by upper level managers, there is a danger that employees will regard those standards as unreasonable or unrealistic.

7) Motivate People to High Performance: A control system is most effective when it motivates people to high performance. Since most people respond to a challenge, successfully meeting to tough standard may well provide a greater sense of accomplishment than meeting an easy standard. However, if a target is so tough that it seems impossible to meet, it will be more likely to discourage than to motivate effort.

8) Corrective Action: Merely pointing of deviations is not sufficient in a good control system. It must lead to corrective action to be taken to check deviations from standard through appropriate planning, organizing and directing. In the words of Koontz and

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

9) Reflection of Organisation Pattern: Organization is not merely a structure of duties and function, it is also an important vehicle of control. In enforcing control the efficiency and the effectiveness of the organisation must be clearly brought out.

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

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

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

7. LET US SUM UP

Controlling is an important function of management. It is the process that measures current performance and guides it towards some predetermined objectives. Under primitive management, control was undertaken only when something went wrong and the objectives of control was to reprimand the person responsible for these events and take action against him.

10.6 KEY WORDS

1) Controlling2) Strategic points3) Comprehensive4) Organization members





1. Explain about the characteristics of controlling2. What are the steps in controlling3. Write about the essential of effective control system.4. Do you think it is so important to have a control system in the organization.?

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UNIT : 11 CO-ORDINATION THE ESSENCE OF MANAGEMENTStructure 11.0 Aims and objectives1I.1 Introduction11.2 Definitions11.3 Need for co-ordination11.4 Techniques of co-ordination11.5 Let us sum up11.6 Key words11.7 Some Useful Books11.8 Answer To Check Your Progress Exercise


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

11.1. INTRODUCTION

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

11.2. DEFINITIONS

Mooney and Reily,"co-ordination is the orderly arrangement of group effort to provide unity of action in pursuit of a common purpose."

According to George Terry," the orderly syschromsation of efforts to provide the proper amount, timing and direction of execution, resulting in harmonious and unified actions to a stated objective."

Co-ordination as,"it makes diverse elements and sub-systems of an organisation to work harmoniously towards the realisation of common objectives."

- Ordway Tead

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

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

Nature/characteristics of co-ordination

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Co-ordination is not distinct function, but the very essence of management

Co-ordination is the basic responsibility of management and it can be achieved through managerial functions.

Co-ordination does not arise spontaneously or by force. It is the result of conscious and concerted action of management

Co-ordination is a continuous and on-going process.

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

11.3 NEED FOR CO-ORDINATION

1. Reconciliation of goals

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

2. Total accomplishment

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

3. Economy and efficiency

Co-ordination helps to improve the economy and efficiency of operations. Economy occurs due to saving of time; and labor. Optimum use of scarce resources results in efficiency.

4. Good human relations

Management can improve job satisfaction and morale of employees by co-ordinating their interests with organisational goals. It avoids conflicts and encourages co-operation.

5. Retention of managerial and other personnel

Through co-ordination survival, growth and image of an organisation are ensured. It can attract and retain competent and talented employees. Labour turnover and absenteeism are minimized.

11.4. TECHNIQUES OF CO-ORDINATION

The important techniques of co-ordination are as follows,

a) Clearly defined goals

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

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

c) Harmonized policies, procedures, rules etc

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

d) Co-operation

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

e) Sound organization structure

A good organisational setup with clearly defined authorities and responsibilities is an effective means of integrating the activities of different units and sub-units in the enterprise. Social and unofficial interactions and relationships are often more effective than formal ones.

f) Committees

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

g) Climate of mutual trust and collaboration

Fostering of a climate of mutual trust and collaboration is also a co-ordinating mechanism. One person should not give order to another but both should agree to take their orders from the situation.

h) Co-ordination through liaison men

Liaison men helps in securing particularly external co-ordination. They provide liaison among different branches or units of an organization.

i) Communication system

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

j) Incentives

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

I) Planning

Planning is a way of anticipating, interdependencies and thus forestalling or mitigating the co-coordinating difficulties.

11.5 LET US SUM UP

Co-ordination is the effort to ensure smooth interplay of functions and forces of all the different parts of an organization so that its purpose will be realized with minimum of friction and a maximum of collaborative effectiveness.

11.6 KEY WORDS

GoalsEconomy and efficiencyHuman r relationsTechniques





1. Define the Co-ordination and the meaning of it.

2. Explain the need for co-ordination

3. Explain the techniques of co-ordination

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UNIT: 12 NEW TRENDS IN MANAGEMENT

Structure

12.0 Aims And Objectives

12.1 Introduction

12.2 Meaning

12.3 New Trends In International HRM

12.4 HR Managers Attention

12.5 HR Policies

12.6 Let Us Sum Up

12.7 Key Words

12.8 Some Useful Books

12.9 Answer To Check Your Progress Exercise


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

12.1. INTRODUCTION

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

12.2. MEANING

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

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

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

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

3) To leapfrog ahead of competition in this world of uncertainty, organizations have introduced six- sigma practices. Six- sigma uses rigorous analytical tools with leadership from the top and develops a method for sustainable improvement. These practices improve organizational values and helps in creating defect free product or services at minimum cost.

4) Human resource outsourcing is a new accession that makes a traditional HR department redundant in an organization. Exult, the international pioneer in HR BPO already roped in Bank of America, international players BP Amoco & over the years plan to spread their business to most of the Fortune 500 companies.

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

12.3. NEW TRENDS IN INTERNATIONAL HRM

International HRM places greater emphasis on a number of responsibilities and functions such as relocation, orientation and translation services to help employees adapt to a new and different environment outside their own country.

1. Selection of employees requires careful evaluation of the personal characteristics of the candidate and his/her spouse.

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

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

4. Compensation systems should support the overall strategic intent of the organization but should be customized for local conditions.

5. In many European countries - Germany for one, law establishes representation. Organizations typically negotiate the agreement with the unions at a national level. In Europe it is more likely for salaried employees and managers to be unionized.

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HR Managers should do the following things to ensure success-

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

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

Indulge in continuous quality improvement through TQM and HR contributions like training, development, counseling, etc

Utilize people with distinctive capabilities to create unsurpassed competence in an area, e.g. Xerox in photocopiers, 3M in adhesives, Telco in trucks etc.

Decentralize operations and rely on self-managed teams to deliver goods in difficult times e.g. Motorola is famous for short product development cycles. It has quickly commercialized ideas from its research labs.

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

12.4. HR MANAGERS TODAY ARE FOCUSING ATTENTION ON THE FOLLOWING-

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

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

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

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

e) Quality Consciousness- Commitment to quality in all aspects of personnel administration will ensure success.

12.5 HR POLICIES

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

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

Changing role

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

Accountability

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

War for talent

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

Marketing practices will need to be applied to recruitment. Employer branding with a strong differentiator are imperative. Rather than positioning as “we are a big successful company,” positioning as delivering on the promise of continuous learning, work-life balance, fulfilling roles and innovative rewards and recognition is important.

Outsourcing

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

Healthy workplace

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

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Diversity

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

Impact of technology

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

Talent management

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

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

As organisations, their customers, employees and their environment become more global and competitive, the competency requirements for successful leadership are increasing exponentially. Leadership comes with empowerment and changing work-cultures across the levels through continuous learning, skill development and change management.

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

12.6. LET US SUM UP

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

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12.7. KEY WORDS

1. New trends2. Planning3. Technology 4. Talent management5. Diversity





1. Explain the importance of having a updated role of the HR policies.2. Write about HR policies. 3. Suggest a few ways in which HR policies can be made more effectives.4. Write about the new trends in HRM.

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UNIT-13 : EVOLUTION, CHALLENGES AND OPPORTUNITIES OF ORGANIZATIONAL BEHAVIORStructure

13.0 Aims and objectives13.1 Introduction13.2 Concepts13.3 Nature Of Organizational Behavior13.4 Disciplines related to OB13.5 Let us sum up13.6 Key words13.7 Some Useful Books

13.8 Answer To Check Your Progress Exercise13.0 AIMS AND OBJECTIVES

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

13.1 INTRODUCTION

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

13.2 CONCEPTS

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

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

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

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

The behavior of the people working in an organization to achieve common goals or objectives. Organization comprises of people with different attitudes, cultures, beliefs, norms and values.

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

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

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

In other words, it involves the understanding, prediction and control of human behaviour and factors affecting their performance and interaction among the organizational members. And because organizational behavior is concerned specifically with employment – related situations, you should not be surprised to find that it emphasizes behavior as related to concerns such as jobs, work, absenteeism, employment turnover , productivity, human performance and management

13.3 Nature of Organizational Behavior (OB)

Organizational behavior is an applied behavioral science that is built on contributions from a number of behavioral disciplines such as psychology, sociology, social psychology, anthropology and economics.

13.4 . DISCIPLINES RELATED TO OB

1. Psychology. Psychology is the study of human behavior which tries to identify the characteristics of individuals and provides an understanding why an individual behaves in a particular way. This thus provides us with useful insight into areas such as human motivation, perceptual processes or personality characteristics.

2. Sociology. Sociology is the study of social behavior, relationships among social groups and societies, and the maintenance of social order. The main focus of attention is on the social system. This helps us to appreciate the functioning of individuals within the organization which is essentially a socio-technical entity.

3. Social psychology. Social psychology is the study of human behaviour in the context of social situations. This essentially addresses the problem of understanding the

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typical behavioural patterns to be expected from an individual when he takes part in a group.

4. Anthropology. Anthropology is the science of mankind and the study of human behaviour as a whole. The main focus of attention is on the cultural system, beliefs, customs, ideas and values within a group or society and the comparison of behaviour among different cultures. In the context of today’s organizational scenario. It is very important to appreciate the differences that exist among people coming from different cultural backgrounds as people are often found to work with others from the other side of the globe.

5. Economics. Any organization to survive and sustain must be aware of the economic viability of their effort. This applies even to the non-profit and voluntary organizations as well.

6. Political Science. Although frequently overlooked, the contributions of political scientists are significant to the understand arrangement in organizations. It studies individuals and groups within specific conditions concerning the power dynamics. Important topics under here include structuring Of Conflict, allocation of power and how people manipulate power for individual self-interest etc.

Organizational behavior as a discipline

By now you have understood that man is a social animal and that he is successful more as an organizational member than as an individual. And modern society is full of large organizations which are complex in nature. These organizations increasingly control every sphere of human activity. The importance of organizations gets a shot in the arm when a separate discipline ‘organizational behaviour’ itself has been established. There are of course other fields of study like Behaviourial science, Organization Theory etc but they all treat organization as a common entity.

In fact organizational behaviour is not a discipline by itself but rather an integration of concepts on sociology, psychology, anthropology etc. into the study of people’s behaviour within the organizations.

Aldag and Brief define OB as “A branch of the social sciences that seeks to build theories that can be applied to predicting, understanding and controlling behaviour in work organizations”. Callahan et al defined OB as a subset of management activities concerned with understanding, predicting and influencing individual behaviour in organizational settings.

In other words OB applies knowledge about individuals, groups and the effect of organizational structure on behaviour towards the end of making the organization work more efficiently. It is difficult to fix a particular nature for OB,.as this field is undergoing changes over time. However you can identify its today’s nature through a study of the characteristics of O.B.

Important elements of OB

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The key elements in OB are people, structure, technology and the external environment in which the organization operates. People are recruited by the organization so as to achieve the objective. This calls for a definite structure of the organization. The organization also needs technology to help in getting the job done. Thus there is an interaction of people, the external environmental influences, structure and technology..

People

Organization External Environment

Structure Technology

Key Elements in organization behavior

The employees constitute the social system of an organization, consisting of individuals, groups and large groups and small groups. Some may be formal while others may be informal. It must be noted that the groups are ever changing and hence are dynamic. They may also disband. The individuals in organizations are thinkers, feelers and living emotional beings. The organizations hence exist to serve these members and people do not exist to serve organizations.

13.5. LET US SUM UP

We can define the term organization as two or more individuals who are interacting with each other within a deliberately structured set up and working in an interdependent way to achieve some common objectives.. Organizations play a major role in our lives. We possibly cannot think of a single moment in our lives when we are not depending on organizations in some form or the other

13.6. KEY WORDS

Psychology Sociology Anthropology Political science





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13.8. ANSWER TO CHECK YOUR PROGRESS EXERCISE1. Discuss the concepts of organization behavior.2. Explain the nature of organization behavior.3. What are the disciplines related to organization behavior.4. What are the important elements of organization behavior.

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UNIT: 14 PERSONALITY AND BEHAVIORAL ASSESSMENTStructure 14.0 Aims and objectives 14.1Introduction 14.2 Definition

14.3 Major determinants of personality 14.4 Personality characteristics in organizations 14.5 Let us sum up 14.6 Key words 14.7 Some Useful Books 14.8 Answer To Check Your Progress Exercise


The main objectives of the lesson is to understand the determinants of personality, characteristics.

14.1 INTRODUCTION

This lesson gives us a clear idea about personality which have a great influence on the organization and also on the person. The major determinants of the personality is determined by various factors and also the characteristics is explained in detail in this lesson.

14.2 DEFINITION

Though psychologists and social scientists unanimously agree to the importance of personality, they are unable to come out with a unanimous definition. Many authorities on the subject have defined personality in different ways. Some of the definitions are reproduced below:

Probably the most meaningful approach would be to include both the person and the role as Floyd L Ruch does in his definition. He states that: "the human personality includes:

i. External appearance and behaviour or social stimulus value ii. Inner awareness of self as a permanent organizing forceiii. The particular pattern or organization of measurable traits, both "inner and "outer"."

Gordon Allport gave the most frequently used definition of personality nearly 70 years ago. He said personality is "the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment".

James D Thompson and Donald Van Houten define personality as - "a very diverse and complex psychological concept. The word "personality" may mean something like outgoing, invigorating interpersonal abilities … but we must also recognize and explain the fact that development results in man acquiring a distinctiveness or uniqueness which gives him identity which enables him and us to recognize him as apart from others. These distinguishing characteristics are summarized by the term personality".

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14.3 MAJOR DETERMINANTS OF PERSONALITY

Personality appears to be a result of both influences. Additionally, today we recognize another factor - the situation. The problem lies in the fact the cognitive and psychological processes, plus many other variables, all contribute to personality. The determinants of personality can perhaps best be grouped in five broad categories:

1. Biological, 2. Cultural, 3. Family4. Social5. Situational.

Biological Factors

The study of the biological contributions to personality may be studied under three heads:

1) Heredity: Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, sex, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are considered to be inherent from one’s parents. The heredity approach argues that the ultimate explanation of an individual's personality is the molecular structure of the genes, located in the chromosomes. Research on animals has showed that both physical and psychological characteristics can be transmitted through heredity. But research on human beings is inadequate to support this viewpoint. However, psychologists and geneticists have accepted the fact that heredity plays an important role in one's personality.

2) Brain: The second biological approach is to concentrate on the role that the brain plays in personality. The most recent and exciting possibilities come from the work done with electrical stimulation of the brain (ESB) and split-brain psychology. Preliminary results from the electrical stimulation of the brain (ESB) research give indication that better understanding of human personality and behaviour might come from the study of the brain. Work with ESB on human subjects is just beginning. There seem to be definite pleasurable and painful areas in the human brain. This being true, it may be possible physically to manipulate personality through ESB.

3) Biofeedback:. In BFT the individual learns the internal rhythm of a particular body process through electronic signals feedback from equipment that is wired to the body area. From this biofeedback the person can learn to control the body process in question. More research is needed on biofeedback before any definitive conclusions can be drawn. But its potential impact could be extremely interesting for the future.

4) Physical features: A vital ingredient of the personality, an individual's external appearance, is biologically determined. The fact that a person is tall or short, fat or skinny, black or white will influence the person's effect on others and this in turn, will affect the self-concept. Practically all would agree that physical characteristics have at least some influence on the personality. If personality characteristics were completely dictated by heredity, they would be fixed at birth and no amount of experience could

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alter them. But personality characteristics are not completely dictated by heredity. There are other factors, which also influence personality.

Cultural Factors

Among the factors that exert pressures on our personality formation are the culture in which we are raised, our early conditioning, the norms among our family, friends and social groups and other influences we experience. Traditionally, cultural factors are usually considered to make a more significant contribution to personality than biological factors. The culture largely determines attributes toward independence, aggression, competition, and cooperation. Culture requires both conformity and acceptance from its members. There are several ways of ensuring that members comply with the dictates of the culture. The personality of an individual to a marked extent is determined by the culture in which he or she is brought up. It follows that a person reared in a western culture has a different personality from a person reared in our Indian culture.

Family Factors

Whereas the culture gene rally prescribes and limits what a person can be taught, it is the family, and later the social group, which selects, interprets and dispenses the culture. Thus, the family probably has the most significant impact on early personality development. A substantial amount of empirical evidence indicates that the overall home environment created by the parents, in addition to their direct influence, is critical to personality development. The parents play an especially important part in the identification process, which is important to the person's early development. According to Mischel, the process can be examined from three different perspectives.

Identification can be viewed as the similarity of behaviour including feelings and attitudes between child and model.

Identification can be looked at as the child's motives or desires to be like the model.

It can be viewed as the process through which the child actually takes on the attributes of the model.

From all three perspectives, the identification process is fundamental to the understanding of personality development. The home environment also influences the personality of an individual. Siblings (brothers and sisters) also contribute to personality.

Social Factors

There is increasing recognition given to the role of other relevant persons, groups and especially organizations, which greatly influence an individual's personality. This is commonly called the socialization process. Socialization involves the process by which a person acquires, from the enormously wide range of behavioural potentialities that are open to him or her. Socialization starts with the initial contact between a mother and her new infant. After infancy, other members of the immediate family – father, brothers, sisters and close relatives or friends, then the social group – peers, school friends and members of the work group, play influential roles. Socialization process is especially relevant to organizational behaviour because the process is not confined to early childhood, taking place

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rather throughout one's life. In particular, evidence is accumulating that socialization may be one of the best explanations for why employees behave the way they do in today's organizations.

Situational Factors

Human personality is also influenced by situational factors. The effect of environment is quite strong. Knowledge, skill and language are obviously acquired and represent important modifications of behaviour. An individual's personality, while generally stable and consistent, does change in different situations. The different demands of different situations call forth different aspects of one's personality.

14.4. PERSONALITY CHARACTERISTICS IN ORGANIZATIONS

Managers should learn as much as possible about personality in order to understand their employees. Hundreds of personality characteristics have been identified. We have selected eight characteristics because of their particular influences on individual behaviour in organizations. They are:

1. Locus of Control2. Machiavellianism 3. Self-esteem4. Self-efficacy5. Self-monitoring6. Positive/Negative affect7. Risk Taking8. Type A Personality,

Locus of Control

Some people believe they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance. An individual's generalized belief about internal (self) versus external (situation or others) control is called locus of control.

Internals: Those who believe they control their destinies have been labeled internals. Internals (those with an internal locus of control) have been found to have higher job satisfaction, to be more likely to assume managerial positions, and to prefer participative management styles. In addition, internal's have been shown to display higher work motivation, hold stronger beliefs that effort leads to performance, receive higher salaries and display less anxiety than externals (those with an external locus of control).

Externals: Externals are those individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Externals prefer a more structured work setting and they may be more reluctant to participate in decision making. They are more compliant and willing to follow directions. Research on locus of control has strong implications for organizations. A large amount of research comparing internals with externals has consistently shown that individuals who rate high in externality are less satisfied with their jobs, have higher absenteeism rates, are more alienated from

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the work setting, and are less involved on their jobs than internals. Because internals believe they control what happens to them, they will want to exercise control in their work environment. Allowing internals considerable voice is how work is performed is important. Internals will not react well to being closely supervised. Externals, in contrast, may prefer a more structured work setting, and they may be more reluctant to participate in decision-making. Therefore, internals do well on sophisticated tasks – which includes most managerial and professional jobs – that require complex information processing and learning. Additionally, internals are more suited to jobs that require initiative and independence of action. In contrast, externals should do well on jobs that are well structured and routine and where success depends heavily on complying with the directions of others.

Machiavellianism

The primary method for achieving power that he suggested was manipulation of others. Machiavellianism then is a personality characteristic indicating one's willingness to do whatever it takes to get one's way. An individual high in Machiavellianism is pragmatic, maintains emotional distance and believes that ends can justify means. "If it works use it", is consistent with a high-Mach perspective.

a) When they interact face to face with others rather than indirectly;

b) When the situation has a minimum number of rules and regulations thus allowing latitude for improvisation; and

c) When emotional involvement with details irrelevant to winning distracts low-Mach's.

A high-Mach individual behaves in accordance with Machiavelli's ideas, which include the notion that it is better to be feared than lived. High-Machs tend to use deceit in relationships have a cynical view of human nature and have little concern for conventional notions of right and wrong. They are skilled manipulators of other people, relying on their persuasive abilities. High-Machs are suitable in jobs that require bargaining skills or where there are substantial rewards for winning (example commissioned sales).

Self-Esteem

Self-esteem is an individual's general feeling of self-worth. Individuals with high self-esteem have positive feelings about themselves, perceive themselves to have strength as well as weaknesses, and believe their strengths are more important than their weaknesses. Individuals with low self-esteem view themselves negatively. They are more strongly affected by what other people think of them, and they compliment individuals who give them positive feedback while cutting down people who give them negative feedback. Research on self-esteem (SE) offers some interesting insights into organisational behavior.

i) High-SEs: People with High Ses

Believe they possess more of the ability they need in order to succeed at work, will take more risks in job selection and are more likely to choose unconventional jobs, are more satisfied with their jobs.

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ii) Low-SEs: - People with low Ses

Are more susceptible to external influence, depend on the receipt of positive evaluations from others, l tend to be concerned with pleasing others and therefore, are less likely to take unpopular stands, and l are less satisfied with their jobs.

Self-esteem may be strongly affected by situations. Success tends to raise self-esteem, whereas failure tends to lower it. Given that high self-esteem is generally a positive characteristic; managers should encourage employees to raise their self-esteem by giving them appropriate challenges and opportunities for success.

Self-Efficacy

Self-efficacy refers to an individual's belief that he or she is capable of performing a task. The higher your self-efficacy, the more confidence you have in your ability to succeed in a task. So, in difficult situations, we find that people with low self-efficacy are more likely to lessen their effort or give up altogether whereas those with high self-efficacy will try harder to master the challenge. In addition, individuals high in self- efficacy seem to respond to negative feedback with increased effort and motivation; those low in self-efficacy are likely to lessen their effort when given negative feedback. Individuals with high self-efficacy believes that they have the ability to get things done, that they are capable of putting forth the effort to accomplish the task, and that they can overcome any obstacles to their success.

Self-Monitoring

A characteristic with great potential for affecting behaviour in organisations is self monitoring. Self-monitoring refers to an individual's ability to adjust his or her behaviour to external situational factors. High self-monitors pay attention to what is appropriate in particular situations and to the behaviour of other people, and they behave accordingly. Low self-monitors, in contrast, are not as vigilant to situational cues and act from internal states rather than paying attention to the situation. As a result, the behaviour of low self-monitors, because their behaviour varies with the situation appear to be more unpredictable and less consistent. High self-monitors are capable of presenting striking contradictions between their public persona and their private self. Low self-monitors can't disguise themselves this way.

Positive/Negative Effect

Individuals who focus on the positive aspects of themselves, other people, and the world in general are said to have positive effect. In contrast, those who accentuate the negative in themselves, others, and the world are said to possess negative affect. Employees with positive effect are absent from work less often. Individuals with negative effect report more work stress. Negative individual effect produces negative group effect and this leads to less cooperative behaviour in the work group. Managers can do several things to promote positive effect, including allowing participative decision making and providing pleasant working conditions.

14.5 . LET US SUM UP

This lesson gives us a clear idea about personality which have a great influence on the organization and also on the person. The major determinants of the personality are

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determined by various factors and also the characteristics are explained in detail in this lesson. Though psychologists and social scientists unanimously agree to the importance of personality, they are unable to come out with a unanimous definition. Many authorities on the subject have defined personality in different ways.

14.6 . KEY WORDS

o Biological, o Cultural, o Familyo Socialo Situational

14.7 SOME USEFUL BOOKS 1. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New

York2. Stephen P.Robbins, fundamental of management, Pearson 20033. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

14.8 ANSWER TO CHECK YOUR PROGRESS EXERCISE1. List few definitions of Personality.2. What are the major determinant of personality3. Explain the different personality characteristics in organizations.4. Explain the importance of personality.

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UNIT – 15 EMOTIONS AND LEARNINGStructure15.0 Aims and objectives15.1 Introduction15.2 Components15.3 Purpose of emotions15.4 Types of emotions15.5 Learning15.6 Types of learning15.7 Learning theories15.8 Let us sum up15.9 Key words15.10 Some Useful Books15.11 Answer To Check Your Progress Exercise


The main objective of the lesson is to understand about purpose, types and learning and the theories.

15.1 INTRODUCTION

A mental state that arises spontaneously rather than through conscious effort and is often accompanied by physiological changes; a feeling: the emotions of joy, sorrow, reverence, hate, and love.

15.2. COMPONENTS OF EMOTIONS:

Emotion has two components

1. Facial expression of emotion 2. Feeling of emotion

Facial expression of emotions is due to isometric contraction (shortening) of muscles of facial expression around the mouth.

Feeling of emotions is due to isotonic contraction (increase or decrease) in the hardness) of the muscles of facial expression.

Emotion is the exchange rate of a sensation or a movement.

Thus there is a sensory emotion and a motor emotion.

There is simultaneous change in tone of Unified Skeletal Muscle (USM) and therefore we feel an emotion in the entire body. Unified Skeletal Muscle is a physiological state of the skeletal muscular system in which all the skeletal muscles of the body isometrically contract or relax as though they were a single skeletal muscle. At rest the tone of the USM is 50%.

15.3. PURPOSE OF EMOTIONS:

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There are various sensations in the body like heat, light, pressure, taste, etc. The movements are infinite. How is it possible to compare them? How to compare a song with the taste of coffee? This comparison of the incomparable is made possible by emotions.

Whenever there is a sensation or movement the tone of the USM changes indicating the exchange value of the sensation or movement. By comparing the change in tone induced by every sensation and movement we can compare them.

Positive and Negative emotions:

Since at rest the tone of the USM is 50% a sensation can increase it or decrease it. Positive emotion increases the tone of the USM and Negative emotions decrease it.

Sensory emotions:

Sensory emotion is the change in tone of the USM induced by sensations. There are two basic sensory emotions. They are,

1. Pleasure - Positive sensory emotion 2. Displeasure - Negative sensory emotion

Motor emotions:

Motor emotion is the change in tone of the USM induced by movements. There are two basic motor emotions. They are,

1. Anger - Positive motor emotion 2. Fear - Negative motor emotion

Components of emotions

Emotions have two components.

They are;

1. Feeling of Emotions 2. Facial expression of emotions.

Feeling of an emotion is due to isometric contraction or hardening of a pair of muscles of facial expression and facial expression is due to isotonic contraction or shortening of the same muscle. We have many sensations like touch, pressure, vision, hearing, taste, heat, etc. How is it possible for us to compare these with one another?

Emotions enable us to compare sensations. Every sensation produces a sensory emotion. By comparing the sensory emotions produced we can indirectly compare the sensations.

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Usually sensations occur in combination. Thus, taste may be associated with smell and heat. Emotions enable us to compare two groups of sensations also. Thus, it can enable us to compare a pizza with a movie! Thus, feeling of emotions enables us to determine our preferences and priorities.

Sensory and motor emotions:

There are two basic emotions that we can feel and express.

1. Sensory emotions - pleasure and displeasure 2. Motor emotions - anger and fear.

Sensory emotions enable us to know whether a sensation is good or bad. Motor emotions inform us whether something has to be done or not and also whether something can be done or not.

Facial expression of emotions:

While we can feel sensations we can't convey their magnitude to others. Facial expression of emotions enables us to convey to others the magnitude of the sensation we feel to others.

1. Purposes of feeling of emotions:

1. Feeling of Sensory and motor emotions act as compasses and guide us to take the right path while taking care of our sensations.

2. Feeling of emotions also plays a vital role in thinking and dreaming.

2. Purposes of facial expression of emotions:

1. Facial expression of emotions enable us to convey the magnitude of our sensations to others and also to what extent we are ready to go to rectify them.

2. Since these muscles are under our control they enable us to create an illusion in others that we are greater or simpler than what we actually are.

15.4. TYPES OF EMOTIONS

At one time or another we all experience strong feelings that accompany positive or negative emotions. A day without feeling emotions would be impossible to imagine. Each day we feel dozens of emotions; the excitement of going on holidays, the fear of flying, or the grief of losing a family member.

If we tried to list all of the words in the English language to describe emotions, we would end up with hundreds of them. One thing for sure, we do feel many of them in our everyday life. We usually have no problem identifying the emotion that we are experiencing at a given time. We will take you on an interactive journey through your body to learn more about your emotions.

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15.5 LEARNING

The behavioural scientists say, “learning can be defined as relatively permanent change in the present or potential behaviour that occurs as a result of experience or reinforced practice”. So the definition confirms that there must be change in the behaviour after learning. This change can be for better or worse than the previous behaviour. You learn to drive a car and you did not know this before.. You use the driving skills as long as you want and this is a permanent change in you. The other word in the definition says that the change occurs due to experience and not due to change in biological growth like a child growth. You do not learn to drink or eat, it is natural pick. But learning must result from interaction with environment and that is how you learn word-processing, software design etc.The experience can be direct like a typing instructor teaching you or indirect by observing others doing a job. For example when you observe the quality performance of coworkers end up in rewards for them, you also begin to emulate them. Some incidents do not change your present behaviour but can change your potential behaviour. Thus when you hear that driving through a particular area is dangerous after 10 P.M. and if you come across the news of a passer-by having been beaten up by dacoits, you will resist such attempts. All said and done the four important aspects of learning are

1) Learning is possible only through experience.

2) Learning does not necessarily mean improvement in behaviour as it can worsen the behaviour also. Hence learning can at the most bring about a change in behaviour. Learning may be good or bad from the organizational point of view. Thus people learn bad habits, false prestige, stereotype, restriction on work etc

3) The effectiveness of learning process is directly proportional to the degree of permanent change.

4) Learning should always be followed by practice or reinforcement as otherwise the new behaviour disappears.

15.6 TYPES OF LEARNERS

There are active learners and passive learners in general. As the name indicates active learners are those who take special interest and put sincere effort to learn. They feel they lack something very useful to life if they do not learn, be it a skill, a way of life, knowledge etc. Such people can be trained and upgraded in an organization more productively. On the contrary you also have passive learners in the sense that they will not take any special interest or put effort to learn things .It is all right for them if things come in the normal way and even if they miss to learn they casually look for further opportunity at leisure. In an organization this becomes a problem, as you cannot train people to absorb better skills. It will be difficult to bring a change in the behaviour of such people in an organization. As you will be seeing in the coming chapters, there are people who will learn under classical conditioning and operand conditioning. These are separate type of learners.Perceptual learning: ability to learn to recognize stimuli that have been seen before

Primary function is to identify and categorize objects and situations

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Changes within the sensory systems of the brain

2. Stimulus-response learning: ability to learn to perform a particular behavior when a certain stimulus is present:

1. Establishment of connections between sensory systems and motor systems

2. Classical conditioning: association between two stimuli:

3. Unconditioned Stimulus (US), Unconditioned Response (UR), Conditioned Stimulus (CS), Conditioned Response (CR)

4. Hebb rule - if a synapse repeatedly becomes active at about the same time that the postsynaptic neuron fires, changes will take place in the structure or chemistry of the synapse that will strengthen it

5. Rabbit experiment - tone paired with puff of air

6. Instrumental conditioning: association between a response and a stimulus; allows an organism to adjust its behavior according to the consequences of that behavior:

7. Reinforcement: positive and negative

8. Punishment

3. Motor learning: establishment of changes within the motor system

4. Relational learning: involves connections between different areas of the association cortex

5. Spatial learning: involves learning about the relations among many stimuli

6. Episodic learning: remembering sequences of events that we witness

7. Observational learning: learning by watching and imitation other people

15.7. LEARNING THEORIES

A learning theory is an attempt to describe how people and animals learn, thereby helping us understand the inherently complex process of learning.

There are three main categories or philosophical frameworks under which learning theories are called as

1. Behaviorism, 2. Cognitive, 3. Constructivism. Behaviorism focuses only on the objectively observable aspects of learning.

Cognitive theories look beyond behavior to explain brain-based learning.

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Constructivism views learning as a process in which the learner actively constructs or builds new ideas or concepts. It is also important to take account of informal learning theories, and to consider the philosophical anthropology implied by any theory.

Classical Conditioning

Classical conditioning is one of the simplest forms of learning, yet it has a powerful effect on our attitudes, likes and dislikes, and emotional responses. We have all learned to respond in specific ways to a variety of words and symbols. Our lives are profoundly influenced by associations we learn through classical conditioning. Ivan Pavlov's research on the conditioned reflex in dogs revealed much of what we know about the principles of classical conditioning.

Classical Conditioning of Pavlov: Ivan Pavlov (1849 - 1936) organized and directed research in physiology at the Institute of Experimental Medicine in St. Petersburg, Russia from 1891 until his death in 1936. His book "Conditioned Reflexes" is one of the classic works in psychology. Classical conditioning is modifying behaviour so that a conditioned stimulus is paired with an unconditioned stimulus and elicits an unconditioned behaviour. Ivan Pavlov, a Russian psychologist developed classical conditioning theory based on his experiments to teach a dog to salivate in response to the ringing of a bell. When Pavlov presented meat (unconditioned stimulus) to the dog, he noticed a great deal of salivation (conditioned response). But, when merely bell was rung, no salivation was noticed in the dog. What Pavlov did next was to link the meat and the ringing of the bell. He did this several times. Afterwards, he merely rang the bell without presenting the meat. Now, the dog began to salivate as soon as the bell rang. After a while, the dog would salivate merely at the sound of the bell, even if no meat were presented. In effect, the dog had learned to respond, i.e., to salivate at the sound of bell, since it was conditioned to link the sound of the bell with the offering of meat. Classical conditioning introduces a simple cause-and-effect relationship between one stimulus and response. It also makes the response reflective or involuntary after the stimulus-response relationship has been established. This leaves no ground for making choices, which factor differentiates human beings from dogs. Under certain situations, classical conditioning does explain human behaviour. For example, if a student is always reprimanded by his Principal when he is summoned to the principal's office, he may become nervous whenever asked to come to the principal's office because of this association.

The basic elements and Processes in Classical Conditioning:

Reflex: A reflex is an involuntary response to a particular stimulus. There are two kinds of reflexes:

Conditioned Reflex: This is a "learned" reflex rather than a naturally occurring one.

Unconditioned Reflex: This is a "unlearned" reflex. Example, salivation in response to food. Unconditioned reflexes are built into the nervous systems of most vertebrates.

The Conditioned and Unconditioned Stimulus and Response: Pavlov continued to investigate the circumstances under which a conditioned reflex is formed. Dogs do not need to be conditioned to salivate to food, so salivation of food is an unlearned or unconditioned response (UR). Any stimulus (such as food) that without learning will automatically elicit (bring forth) an unconditioned response is called an unconditioned stimulus (US).

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Operant Conditioning

Operant conditioning argues that behaviour is a function of its consequences. People learn to behave to get something they want or avoid something they don't want. Operant behaviour means voluntary or learned behaviour in contrast to reflexive or unlearned behaviour. The tendency to repeat such behaviour is influenced by the reinforcement or lack of reinforcement brought about by the consequences of the behaviour. Reinforcement therefore strengthens behaviour and increases the likelihood that it will be repeated. What Pavlov did for classical conditioning, the Harvard psychologist B.F Skinner did for operant conditioning.

Operant conditioning induces a voluntary change in behaviour and learning occurs as a "consequence" of such change. It is also known as reinforcement theory and it suggests that behaviour is a function of its consequences. It is based upon the premise that behaviour or job performance is not a function of inner thoughts, feelings, emotions or perceptions but is keyed to the nature of the outcome of such behaviour. The consequences of a given behaviour would determine whether the same behaviour is likely to occur in future or not. Based upon this direct relationship between the consequences and behaviour, the management can study and identify this relationship and try to modify and control behaviour.

Thus, the behaviour can be controlled by manipulating its consequences. This relationship is built around two principles:

The behaviour that results in positive rewards tends to be repeated and behaviour with negative consequences tends not to be repeated.

Based upon such consequences, the behaviour can be predicted and controlled.

Hence, certain types of consequences can be used to increase the occurrence of a desired behaviour and other types of consequences can be used to decrease the occurrence of undesired behaviour. The consequences of behaviour are used to influence, or shape behaviour through three strategies: reinforcement, punishment and extinction. Thus, operant conditioning is the process of modifying behaviour through the use of positive or negative consequences following specific behaviours. From an organizational point of view, any stimulus from the work environment will elicit a response. The consequence of such a response will determine the nature of the future response. For example, working hard and getting the promotion will probably cause the person to keep working hard in the future

Cognitive Learning TheoryBehaviourists such as Skinner and Watson believed that learning through operant and

classical conditioning would be explained without reference to internal mental processes. Today, however, a growing number of psychologists stress the role of mental processes. They choose to broaden the study of learning to include such cognitive processes as thinking, knowing, problem solving, remembering and forming mental representations. According to cognitive theorists, these processes are critically important in a more complete, more comprehensive view of learning.

1. Wolfang Kohler (1887-1967): Learning by insight: A German Psychologist studied anthropoid apes and became convinced that they behave intelligently and were capable of

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problem solving. In his book 'The Mentality of Apes' (1925), Kohler describes experiments he conducted on chimpanzees confined in caged areas. In one experiment, Kohler hung a bunch of bananas inside the caged area but overhead, out of reach of the apes, boxes and sticks were left around the cage. Kohler observed the chimp's unsuccessful attempts to reach the bananas by jumping or swinging sticks at them. Eventually, the chimps solved the problem by piling the boxes one on top of the other until they could reach the bananas. In another experiment, Sultan, the brightest of the chimps, was given one short stick; beyond reach outside the cage were a longer stick and a bunch of bananas. After failing to reach the bananas with the short stick, Sultan used it to drag the longer stick within reach. Then, finding that the long stick did not reach the bananas, Sultan finally solved the problem by fitting the two sticks together to form one long stick. With this stick, he successfully retrieved the bananas. Kohler observed that the chimps sometimes appeared to give up in their attempts to get the bananas. However, after an interval they returned and came up with the solution to the problem as if it had come to them in a flash of insight. Kohler insisted that insight, rather than trial-and-error learning, accounted for the chimps successes because they could easily repeat the solution and transfer this learning to similar problems.

Social LearningAlbert Bandura contends that many behaviours or responses are acquired through

observational learning. Observational learning, sometimes called modelling results when we observe the behaviours of others and note the consequences of that behaviour. The person who demonstrates the behaviour or whose behaviour is imitated is called a role model. Parents, movie stars and sports personalities are often powerful models. The effectiveness of a model is related to his or her status, competence and power. Other important factors are the age, sex, attractiveness, and ethnicity of the model. Whether learned behaviours are actually performed depends largely on whether the person expects to be rewarded for the behaviour. Social learning integrates the cognitive and operant approaches to learning. It recognizes that learning does not take place only because of environmental stimuli (classical and operant conditioning) or of individual determinism (cognitive approach) but is a blend of both views. It also emphasizes that people acquire new behaviours by observing or imitating others in a social setting. In addition, learning can also be gained by discipline and self-control and an inner desire to acquire knowledge or skills irrespective of the external rewards or consequences. This process of self-control is also partially a reflection of societal and cultural influences on the development and growth of human beings.

15.8 LET US SUM UPA mental state that arises spontaneously rather than through conscious effort and is

often accompanied by physiological changes; a feeling: the emotions of joy, sorrow, reverence, hate, and love. Emotion has two components 1. Facial expression of emotion 2. Feeling of emotion. Facial expression of emotions is due to isometric contraction (shortening) of muscles of facial expression around the mouth.

15.9. KEY WORDS

Facial expressions Theories of Learning Emotion types

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Learners types





1. Explain the purpose of emotions2. What are the different types of emotions3. Write about learning.4. Discuss in details about the learning theories.

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UNIT – 16 : PERCEPTION AND STRESS MANAGEMENT

Structure16.0 Aims And Objectives16.1 Introduction 16.2 Perception And Process 16.3 Factors Influencing Perception 16.4 Types Of Perception 16.5 Stress Management 16.6 Role Of Stress Management 16.7 Identification Of Stress At Various Levels 16.8 To Reduce The Stress Level 16.9 Let Us Sum Up 16.9 Key Words 16.10 Some Useful Books16.11Answer To Check your Progress Exercise


The main objective of the lesson is to understand the basics concepts realating to perception and its process, types and the stress mangement and its role and the various levels of identification of stress and steps to reduce it.

16.1 INTRODUCTION

Perception is the process by which organisms interpret and organize sensation to produce a meaningful experience of the world. Sensation usually refers to the immediate, relatively unprocessed result of stimulation of sensory receptors in the eyes, ears, nose, tongue, or skin. Perception, on the other hand, better describes one's ultimate experience of the world and typically involves further processing of sensory input. In practice, sensation and perception are virtually impossible to separate, because they are part of one continuous process. Perception is the process through which the information from outside environment is selected, received, organized and interpreted to make it meaningful to you. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment.

It has to be noted that perception is more a cognitive than a sensory process. Perception is defined as a process by which individuals organize and interpret their sensory impression in order to give meaning to their environment. It of course is a psychological process. It is the most important cognitive factor of human behaviour. There is no behaviour without perception. In other words perception lies at the root of every individual behaviour.

16.2 PERCEPTION AND PROCESSThe process of perception consists of a number of sub processes. Perceptual inputs are

received first, these are then processed by the perceiver. The resulting output becomes the basis for behaviour. To interpret it technically, you can take an input-throughput-output

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approach to understand the dynamics of perception. The perceptual inputs are from the environment like the stimuli from the environment such as events, subjects or even people. These inputs are undergoing transformation through perceptual mechanism of selection, organization and interpretation and hence are the throughputs. The resultant are opinions, feelings, attitudes etc that get reflected in behaviour that can be viewed as perceptual outputs.

COMPLEX PROCESS OF PERCEPTION

The main perception process has three components. They are

1) Existence of stimuli 2) Perception mechanism 3) Perceptual outputs.

Human behaviour is shaped and affected by perceptual outputs. Perceptual inputs are nothing but the stimuli in the form of objects, events or people. Any event is a perceptual input. The characteristics of stimuli are important as based on those only the perceiver gets attracted to the stimuli that will be responsible for perception. Of course the situational variables and perceiver’s characteristics also affect the selection of stimuli. The interaction between the perceiver and stimulus starts the perception process.

Of the many stimuli from the environment, only some are selected while others are screened out or rejected by what is known as perceptual selectivity mechanism. These stimuli are then organized in a particular order so as to make sense out that. Finally the perceiver interprets these organized stimuli. that will give him a meaning for the situation People interpret the meaning of what they have selectively perceived and organized in terms of their own assumptions of people, things and situations. They begin to interpret things as good, bad, ugly, beautiful etc. In the process there can be misinterpretation also. There are many factors like the characteristics of the stimuli, that of the perceiver that of the situation etc that end-up in interpretation or misinterpretation of events and objects. Hence interpretation of stimuli play a major role in the formation of human behaviour and this is critical in the case of an organization.

16.3 FACTORS INFLUENCING PERCEPTION

The three most important factors affecting perception are

Characteristics of the perceiver Characteristics of the perceived Characteristics of the situation

Characteristics of the perceiver

An individual’s habits, past experience, ethics, needs, values, attitudes and personality can very well affect the perception process. If there is a person with strong ego, he perceives others and situations with ego satisfying or ego threatening. Perhaps the perceptions are

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inaccurate. Similarly people who are less secured find fault with others. On the contrary secured men see others warm and friendly.

Our cultural upbringing, values and ethics play an important role in our perception about others. Normally it is not possible to judge the personality of another person brought up in a different culture, because our judgment is based on our culture and values. An alcohol-addict can prejudge another alcohol- addict. You can take the example of a personnel manager. If his perception about women, minorities, less educated or handicapped etc are biased ones, then he will be very sensitive to them during an employment interview. Once you do not like a person then you always look for the negative aspects of the person. Some times our attitude creates a wrong perception in the minds of people who are daily associated with us. You thus promise a promotion to your subordinate within three months in appreciation of his performance, later you are not able to do that – the employee will have a totally different perception about you. The employee may even perceive you with distrust.

The factors like needs, desires and personality are internal factors that affect a person’s perception. For example persons who accept themselves may easily accept others and have faith in others and perceive everything favorably only. Also these self accepted individuals perceive themselves as being accepted by others, wanted by others and liked by others.

Similarly your perceptive ability is increased side by side with your experience and knowledge thereby giving a tremendous impact on perception. Also the size and intensity of the stimulus increases the selective perception. Tall or very fat man(size) attracts attention and the resulting dominance enhances the perceptual selection. Repetitive stimulus is superior to single stimulus for enhancing perceptual ability of a person.

Characteristics of the perceived

The physical characteristics of others influence our perception about others. Thus age, appearance, facial expressions, gender, mannerism, communication style, personality are all physical characteristics and each one of them has its impact on our perception about the others. Are you not concluding that an assertive and confident man is an executive and later you may find that your assumption is wrong? Just because some are dressed in suits, they cannot become professionals although you perceive them to be so, really they may be lower level employees.

The communication of others, verbal as well as non-verbal affect our perception about others. Perhaps the vocabulary and the language used can create an impression about them, about their education, about their sophistication and precision The body language, tone of expression and the choice of vocabulary can affect our perception about their intelligence and mood. The sitting posture, movement of their eyes and the depth of the smile can reflect the confidence and outgoing nature of the individuals.

The perception you have about an assistant manager of an organization is totally different from the one that you have about a senior manager, owning to the difference in the status. This confirms that status of occupation can affect your perception. Thus you are startled to come across a wealthy man or top class professional or people of fame etc Your behaviour when in contact with a supreme court judge is different from that of your being with an school teacher. Both you are respectful but with that difference due to different

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perceptions you have about them. See how you behave when introduced to a film celebrity! Similarly your approach to a warm and friendly man is different from that you have with a cold and short-tempered man.

Characteristics of the situation

You come across different situations or events either in society or in an organization. These can influence your perceptions. Thus if you meet some unknown person along with your managing director about whom you have a very good impression, then you will perceive the stranger also to a man of high regards. In such a situation you will form a nice image of the stranger person. in your mind. This favorable image will be erased when on the contrary you see a stranger with a notorious person and in that situation you will have a bad perception about the stranger, Even the location od an event can change the perception. Thus your behaviour with your professor at classroom is different from your behaviour with the same professor at a marriage party. as the situation is different now. In an office set-up if employees are given opportunities to interact in a friendly and sociable work situations then the employees will become trustworthy and less defensive—the situation plays its role.

16.4 TYPES OF PERCEPTION

There are many different ways of perceiving the world. One of these ways is by perceptual organization. Perceptual organizations are processes used to group basic sensory elements together into perceivable objects. The two basic principles of perceptual organization involves perceiving figures embedded in a perceptual background and organizing what you see, or what you perceive, in the simplest form possible. Another type of perception is depth perception, which is primarily utilized by visual or auditory senses.

Figure ground perception is the tendency to discriminate between target and background stimuli. The stimulus we perceive as being the target is referred to as the figure. The other stimuli that we do not perceive as the target make up the background, or ground.

The vase seen at right can be perceived in two different ways. If the black is perceived as the background, you will see a vase. However, if you perceive the vase as the background, you will see two faces.

An interesting phenomenon occurs when looking at a square centered over top of several, closely spaced concentric circles. In the figure at left, all of the sides of the square are perfectly straight. Go ahead and check with a straight edge. However, the sides of the square will appear to bend inward toward the center of the circles. This is known as background mediated illusion. The background is responsible for the distortion seen in the figure.

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Image consistency

Imagine yourself outside looking up at an airplane high in the sky. You lift up your hand and see that the plane is smaller than your finger, yet you still know that the plane is large enough to hold hundreds of people. Due to the information in your memory stores, you are still able to perceive the actual size of the airplane despite a change in the size of the retinal image. This concept is known as size constancy.

Despite the fact that you know images that are far away are actually the same size as if they were closer, your brain can be fooled. An example of this is the moon illusion, in which the moon on the horizon appears larger than one higher in the sky. The moon doesn't actually changes size, but it's relationship to the horizon can make it seem larger lower in the sky. This phenomenon can also be explained using the figure below. The center circles are actually both the same size, yet they appear to different because of their relationship to the surrounding circles. Our brain perceives the circle surrounded by larger circles as smaller, because it is smaller in relation to the surrounding circles. The opposite is true for the circle surrounded by smaller circles.

16.5 STRESS MANAGEMENT

Definition

Stress may be understood as a state of tension experienced by individuals facing extraordinary demands, constraints or opportunities. The pressures of modern life, coupled with the demands of a job, can lead to emotional imbalances that are collectively labeled 'stress'. The term 'stress' normally refers to excessive stress caused by extraordinary demands (which cause us to lose something we desire), constraints (things that keep us from doing what we desire) or opportunities.

Stress is something which impairs brain to think or act on something. Lazarus has defined stress as a whole spectrum of factors stimulus, response, cognitive appraisal of threat, coping styles and psychological defenses. Defining stress becomes a problem, even for the experts. Stress tough people usually thrive on stress and cope with pressure that would put the average person into tailspin. Stress toughness is caused by commitment, control and challenge. Hans Selye defined stress as “the non specific response of the body to any demand

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made upon it. Stress is caused by internal or external demand that upset the balance of an individual and affect physical and psychological well being. Stress can arise from an opportunity, demand, constraint, threat or challenge when the outcome of the event is both important and uncertain. Stress is the result of mismatch between a person and environment and the perceived inability to cope with the constraints or demands encountered.

Stress has become increasingly common in organizations, largely because individuals experience increased job complexity and increased economic pressures. Stressor refers to the source of stress. It can be found within the environment, the individual, and the interaction between the two. Environmental and internal conditions that lie beyond an individual's control are called environmental stressors. A strong social support system provides a place to share problems and put them in perspective. To make the social support system effective, the person must perceive that the support system enhances self-esteem, is available when needed and provides relationships that are satisfying.

16.6 ROLE STRESS AMONG THE PROFESSIONALS

Stress due to occupation of a role is known as role stresses which are the following types:

1. Inter – Role distance (IRD) is experience due to conflict experienced between different Roles played by the bank officers.

2. Role stagnation arises when the bank officers experience lack of development and growth in their role. When they are given a newer and higher role, they feel uncomfortable due to lack of preparedness and keep on clinging on the older and lower role.

3. Role expectation conflict arises when the bank officers faces conflicting expectations from different role senders.

4. Role erosion is experienced by the bank officers when some of the important functions belong to them are performed by other roles or when the credit for their contributions is given to others.

5. Role overload is experience by the bank officers when there are too many or too high expectations from their role

6. Role Isolation arises when the bank officers feel cut off from the channels of communication

7. Personal inadequacy arises from lack of knowledge, skill or expertise experienced by the role occupant

8. Self – role distance is experienced when a role occupant has to do when they disliked, when their special knowledge and skills remain unutilized or when there is a conflict between the image, needs and values of the role and the role occupant.

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9. Role ambiguity is experienced when the officers is not clear about expectations from their role

10. “Resource inadequacy is experience by the role occupant when the external resources like human resource, buildings, infrastructure, materials, machines, tools, equipments, books, documents and information required for performing the role are inadequately provided1”.

1. Lack of Participation

One of the factors of the workplace and the organization’s modus operandi that is related to stress is the degree of participation. Officer’s perceptions of the degree of participation in the decision-making process, the degree to which they are consulted on issues affecting the organization, and their involvement in establishing rules of behavior at work have proven to be related to job satisfaction, job-related feelings of threat, and feelings of self-esteem. Others have found that non participation is related to overall poor physical health, escapist drinking, depression, dissatisfaction with life, low motivation to work, intention to leave the job and absenteeism.

2. Role Problems

A clear sense of role in an organization and sense that “play the part” are important in keeping stress at a minimum. A variety of role-related problems may arise for officers who lack these feelings are discussed below:

a) Role Ambiguity

When aspects of the job are unclear, frustration and stress are likely to develop among banking professionals. Bank officers should know the criteria for career advancement, the priorities of the organization and generally what is expected from them.

b) Role Conflict

Sometimes staff get caught in a bind when two officers each expect something different. The officers may be faced with conflicting demands. This is the “damned if you do, damned if you don’t” dilemma. Such a situation is a factor in occupational stress.

3. Job Dissatisfaction

The factors that are typically thought related to dissatisfaction on the job are salary and conditions of the workplace like noise, poor lighting, poor ventilation and over crowded. However, even if officers were paid well and worked in hygienic conditions, they might still be dissatisfied. A class of work-related factors, called motivational factors can affect job satisfaction. These factors include the degree of stimulating tasks involved, the amount of recognition for jobs done well, relationships with fellow officers, and the amount of encouragement to take responsibility.

4. The Work Environment

1

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Some places of work include hazards that can create stress. Dangerous tasks or work settings, toxic chemicals, high noise levels, dust noise levels, dust, overcooling, unpleasant odors and other stressful factors can lead to illness or disease. An interesting source that might want to consult if interested in their aspect of occupational stress is a book entitled “Office Work Can Be Dangerous to Your Health”.

5. Burnout

It is a syndrome of physical and emotional exhaustion. It is an adverse work stress reaction with psychological, psycho physiological and behavioral components. Symptoms include diminished sense of humor, skipping rest and food breaks, increased overtime and no vacations, increased physical complaints, social withdrawal, diminishing job performance, self-medication and psychological changes such as depression or a “trapped” feeling.

Stress on the job cost includes salaries for sick days, cost of hospitalization and outpatient care, and costs related to decreased productivity. Other stress related factors are catching the eyes of management of banks. Officers trained over a long period of time, at great cost, may break down when stressed on the job. They may make poor decisions, miss days of work, begin abusing alcohol and other drugs, or die and have to be replaced by other workers who need training. The effects of occupational stress have attracted the attention of business. For example, companies are now offering flextime allowing workers to schedule themselves more consistent with their lifestyles and priorities. That will help recruiting, in particular since more than 80 percent of the young men between the ages of twenty and thirty-nine having a work schedule that allows them to spend time with families is more important than doing challenging work or earning a high salary.

16.7 Identification of stress at various levels

1. Individual level: In general, individual distress usually takes one of the three basic forms:

a. Physiological symptoms. b. Psychological symptoms and c. Behavioural symptoms.

a. Physiological Symptoms: A number of medical illnesses have a stress-related component. The most significant medical illnesses of this form are heart disease and strokes, backaches, peptic ulcers, and headaches. Most of the early concern with stress was directed at physiological symptoms. This was primarily because specialists in the health and medical sciences researched the topic. The link between stress and particular physiological symptoms is not clear. There is no clear evidence that stress is a direct causal agent. However, stress may play an indirect role in the progression of disease. For example, an extreme preoccupation with work may result in acute individual distress, such as the unique Japanese phenomenon of "Karoshi" (death by overwork).

b. Psychological Symptoms: The most common types of psychological distress are depression, burnout, and psychogenesis disorders. In the early stages, depression and burnout result in decline in efficiency; diminished interest in work; fatigue; and an exhausted run-down feeling. Psychogenesis disorders are physical disorders with a genesis (beginning) in the psyche (mind). For example, the intense stress of public speaking may result in a

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psychogenesis speech disorder; that is, the person is under so much stress that the mind literally will not allow speech to occur.

c. Behavioral Symptoms: Behavioral problems are the third form of individual distress. These problems include violence, substance abuse of various kinds, and accidents. Behaviorally related stress symptoms include changes in productivity, absence and turnover as well as changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting and sleep disorders. Accidents, both on and off the job, are another behavioural form of distress that can sometimes be traced to work-related stressors. For example, an unresolved problem at work may continue to preoccupy or distract an employee driving home and result in the employee having an automobile accident.

These three forms of individual distress cause a burden of personal suffering.

Organizational level: The University of Michigan studies on organizational stress identified a variety of indirect costs of mismanaged stress for the organization, such as low morale, dissatisfaction, breakdowns in communication and disruption of working relationships. The problems caused by organizational distress are:

a. Participation problems: Participation problems are the costs associated with absenteeism, tardiness, strikes and work stoppages and turnover.

b. Performance decrements: Performance decrements are the costs resulting from poor quality or low quality of production, grievances and unscheduled machine downtime and repair.

c. Compensation awards: Compensation awards are a third organizational cost resulting from court awards for job distress.

9. Ways to reduce the stress level in the working environment

i. Adopt a positive attitude - Learning to become a more positive, optimistic person can have a huge impact on how stress impacts a person. When you view the world around you in a positive light and learn to become more optimistic, minor setbacks and stressors won't bother you so much.

ii. Learn how to meditate - Even if you are unable to learn how to practice deep meditation, moments of quiet reflection throughout the day can ground you and help reduce stress. Just go to a relaxing place, turn down the lights and clear your mind. Visualize yourself achieving a goal, enjoying a vacation or doing something you really enjoy.

iii. Use positive affirmations - Of all the ways to reduce your stress levels, this might be the easiest to employ. Just pick areas of your life you'd like to improve upon and use affirmations to help "program" your mind for success. Repeating the same positive mantra can have an impact by helping you see the possibilities. Affirmations simply give you the power to see beyond negatives, visualize success and make it happen.

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iv. Exercise - Physical activity is one of the best ways to combat stress in your life effectively. Find something you enjoy doing and do it. Whether it's swimming, running, gardening, walking, playing ball, boxing or something entirely different, regular activity can reduce stress levels and help ground your mind in the positives.

v. Get rest - A lack of sleep can do terrible things to stress levels. Shooting for a good seven to eight hours a night can impact your reaction to stress and help you deal with negative issues better. Even consider taking little cat naps during the day to reduce stress and recharge batteries. Ten to 20 minutes of shut eye can make a big difference and refocus your mind on positive pursuits.

vi. Eat right - Diet can play a very big role in how stress impacts the body. To reduce its effects, try to eat right most of the time. This doesn't mean you have to become a health food fun, but a basic well balanced diet can make a different. It is an easy way to employ one of the ways to reduce your stress levels.

vii. Do things you love - Pursing hobbies and enjoyable interests is a great way to reduce stress and increase enjoyment in life. If you don't have a hobby already, consider picking up one that is of interest to you.

Should you have no interest in a hobby at all, consider doing something else you love. Perhaps it's just relaxing in your backyard or playing games with family. Just make a little bit of time for the things that really matter to you. This can refocus your mind and provide you with a positive boost against stress.

16.8. LET US SUM UP

Perception, on the other hand, better describes one's ultimate experience of the world and typically involves further processing of sensory input. In practice, sensation and perception are virtually impossible to separate, because they are part of one continuous process. Perception is the process through which the information from outside environment is selected, received, organized and interpreted to make it meaningful to you. In fact you are forming a meaningful picture of the world within yourself based on the information input from the environment.

16.9 KEY WORDS

Perceptual processPerceptionImage Figure ground principleConflictStress management


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1. Define perception and explain the perceptual process.2. Explain the factors that influence the perception3. Explain the types of perception.4. Explain stress management and its role in human life.5. Discuss about the various ways of reducing the stress in life style.

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6. Unit- 1

Change Management

Content

1. Aims and objectives2. Introduction3. Organizational change 4. Sources of resistance to changes 5. Let us sum up6. Key words7. Answer the following8. Suggested readings

Aims and objectives

The main objectives of the lesson is to understand the basic concepts like organizational change, sources of resistance to change.

Introduction

There is nothing permanent except change. It has become an inescapable fact of life; a fundamental aspect of historical evolution. Change is inevitable in a progressive culture. Change in fact, is accelerating in our society. Revolutions are taking place in political, scientific, technological and institutional areas. Organizations cannot completely buffer themselves from this environmental instability. Change is induced by the internal and external forces. Meeting this challenge of change is the primary responsibility of management. An organization lacking adaptability to change has no future. Adaptability to change is a necessary quality of good management. Modern managers have the responsibility to device the management practices to meet the new challenges and make use of the opportunities for the growth of the organization.

Why is organizational change so important?

From outside and inside the organization a variety of forces press for change. "We live in the midst of constant change" has become a well-worn but relevant cliché. Pressures for change are created from both inside and outside the organization. Organization must forge ahead on these forces to survive. Some of these are external, arising from outside the company, whereas others are internal arising from sources within the organization. 1. External Forces: When the organization's general or task environment changes, the organization's success often rides on its ability and willingness to change as well. Modern manager is change-conscious and operating in the constantly changing environment. Many external changes bombard the modern organizations and make change inevitable. The general environment has social, economic, legal and political and technological dimensions. Any of these can introduce the need for change. In recent years, far-reaching forces for change have included developments in information technology, the globalization of competition, and demands that organizations take greater responsibility for their impact on the environment. These forces are discussed below:

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a) Technological Change: Rapid technological innovation is a major force for change in organizations, and those who fail to keep pace can quickly fall behind. It is perhaps the greatest factor that organizations reckon with. According to C. Handy "the rate of technological changes is greater today than any time in the past and technological changes are responsible for changing the nature of jobs performed at all levels in the organization". For example, the substitution of computer control for direct supervision is resulting in wider spans of control for managers and flatter organizations. Technological innovations bring about profound change because they are not just changes in the way work is performed. Instead, the innovation process promotes associated changes in work relationships and organizational structures. Sophisticated information technology is also making organizations more responsive. The team approach adopted by many organizations, leads to flatter structures, decentralized decision making and more open communication between leaders and team members.

b) Globalization: The global economy means competitors are likely to come from across the ocean. The power players in the global market are the multinational and trans-national organizations. This has led companies to think globally. There are no mental distinctions between domestic and foreign operations. Globalization, for an organization, means rethinking the most efficient ways to use resources, disseminate and gather information and develop people. It requires not only structural changes but also changes in the minds of employees. Successful organizations will be the ones that can change in response to the competition. They will be fast on their feet, capable of developing new products rapidly and getting them to market quickly.

c) Social and Political Changes: A firm's fate is also influenced by such environmental pressures as social and political changes. Many new legal provisions in the corporate sector get introduced every time that affects the organizations.

d) Workforce Diversity: Related to globalization is the challenge of workforce diversity. Workforce diversity is a powerful force for change in organization. The demographic trends contributing to workforce diversity are l The workforce will see increased participation form females, as the majority of new workers will be female. l The workforce will be more culturally diverse than ever (part of this is attributable to globalization).

e) Managing Ethical Behaviour: Employees face ethical dilemmas in their daily work lives. The need to manage ethical behaviour has brought about several changes in organizations. Most centre on the idea that an organization must create a culture that encourages ethical behaviour. Society expects organizations to maintain ethical behaviour both internally and in relationships with other organizations. Ethical behaviour is expected in relationships with customers, environment and society. These expectations may be informal or they may come in the form of increased legal requirements. These challenges are forces that place pressures to change on organizations. Organizations cannot afford to be rigid and inflexible in the wake of environmental pressures, they must be rather dynamic and viable so that they survive.

f) Internal Forces: Besides reacting to or anticipating changes on the outside, an organization may change because someone on the inside thinks a new way of doing things will be beneficial or even necessary. Pressures for change that originate inside the

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organization are generally recognizable in the form of signals indicating that something needs to be altered. These internal forces are discussed below:

g) Changes in Managerial Personnel: One of the most frequent reasons for major changes in an organization is the change of executives at the top. No two managers have the same styles, skills or managerial philosophies. Managerial behaviour is always selective so that a newly appointed manager might favour different organizational design, objectives procedures and policies than a predecessor. Changes in the managerial personnel are thus a constant pressure for change.

h) Declining Effectiveness: Declining effectiveness is a pressure to change. A company that experiences losses is undoubtedly motivated to do something about it. Some companies react by instituting layoffs and massive cost cutting programmes, whereas others view the loss as symptomatic of an underlying problem, and seek out the cause of the problem.

i) Changes in Work Climate: Changes in the work climate at an organization can also stimulate change. A workforce that seems lethargic, unmotivated, and dissatisfied is a symptom that must be addressed. This symptom is common in organizations that have experienced layoffs. Workers who have escaped a layoff may find it hard to continue to be productive. They may fear that they will be laid off as well and may feel insecure in their jobs.

j) Deficiencies in the Existing System: Another internal pressure for organizational change is he loopholes in the system. These loopholes may be unmanageable spans of control, lack of coordination between departments, lack of uniformity in politics, non-cooperation between line and staff etc.

k) Crisis: A crisis may also stimulate change in an organization. Strikes or walkouts may lead management to change the wage structure. The resignation of a key decision maker is one crisis that causes the company to rethink the composition of its management team and its role in the organization.

Employees, Expectations: Changes in employees expectations can also trigger change in organizations. These forces may be:-

Employees' desire to share in decision-making. Employees' demand for effective organizational mechanism. Higher employees’ expectation for satisfying jobs and work environment. Employees' desire for higher wage payment.

Change has become the norm in most organizations. Adaptiveness, flexibility and responsiveness are terms used to describe the organizations that will succeed in two basic forms of change in organizations that will succeed in meeting the competitive challenges that businesses face. There are two basic forms of change in organizations: Planned change and unplanned change.

(a) Planned Change: Planned change is a change resulting from a deliberate decision to alter the organization. It is an intentional, goal-oriented activity. The goals of planned change are: First it seeks to improve the ability of the organization to adapt to changes in its environment.

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Second, it seeks to change the behaviour of its employees.

(b) Unplanned Change: Not all change is planned. Unplanned change is imposed on the organization and is often unforeseen. Responsiveness to unplanned change requires tremendous flexibility and adaptability on the part of organizations. Examples of unplanned changes are changes in government regulations and changes in the economy.

As the manager contemplates and initiates change in the organization one phenomenon that is quite likely to emerge anytime in the change process is the resistance to change. People often resist change in a rational response based on self-interest. Resistance to change doesn’t necessarily surface in standardized ways. Resistance can be overt, implicit, immediate, or deferred. It is easiest for management to deal with resistance when it is overt and immediate. The greater challenge is managing resistance that is implicit or deferred.

4. The sources of resistance to change can be categorized into two sources: individual and organizational.

1. Individual Resistance: One aspect of mankind that has remained more or less constant is his innate resistance to change. Individuals resist change because they attach great preference to maintain status quo. Individual sources of resistance to change reside in basic human characteristics such as perceptions, personalities and needs. The following are the reasons:-

(a) Economic Reasons: The economic reasons to fear change usually focus on one or more of the following:

ear of technological unemployment. Fear of reduced work hours and consequently less pay. Fear of demotion and thus reduced wages. Fear of speed-up and reduced incentive wages.

Changes in job tasks or established work routines can also arouse economic fears if people are concerned they won't be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity.

(b) Fear of the Unknown: Change often bring with it substantial uncertainty. Employees facing a technological change, such as the introduction of a new computer system, may resist the change simply because it introduces ambiguity into what was once a comfortable situation for them. This is especially a problem when there has been a lack of communication about the change.

(c) Fear of Loss: When a change is impending, some employees may fear losing their jobs, particularly when an advanced technology is introduced. Employees may also fear losing their status because of a change. Another common fear is that changes may diminish the positive qualities the individual enjoys in the job. For example, computerizing the customer service positions, threaten the autonomy that sales representatives previously enjoyed.

(d) Security: People with a high need for security are likely to resist change because it threatens their feeling of safety.

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(e) Status quo: Perhaps the biggest and most sound reason for the resistance to change is the status quo. As human beings, we are creatures of habit. Change may pose disturbance to the existing comforts of status quo. When confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. Change means they will have to find new ways of managing them and their environment – the ways that might not be successful as those currently used.

(f) Peer Pressure: Individual employees may be prepared to accept change but refuse to accept it for the sake of the group. Whenever change is unwilling to the peers, they force the individuals who want to accept change to resist change.

(g) Disruption of Interpersonal Relationships: Employees may resist change that threatens to limit meaningful interpersonal relationships on the job.

(h) Social Displacement: Introduction of change often results in disturbance of the existing social relationships. Change may also result in breaking up of work groups. Thus when social relationships develop, people try to maintain them and fight social displacement by resisting change.

2. Organizational Resistance: Organizations, by their very nature are conservative. They actively resist change. Some of the organizational resistances are explained below:

1) Resource Constraints: Resources are major constraints for many organizations. The necessary financial, material and human resources may not be available to the organization to make the needed changes. Further, those groups in organization that control sizable resources often see change as a threat. They tend to be content with the way things are.

2) Structural Inertia: Some organizational structures have in-built mechanism for resistance to change. For example, in a bureaucratic structure where jobs are narrowly defined, lines of authority are clearly spelled out change would be difficult. This is so because formalization provides job descriptions, rules, and procedures for employees to follow. The people who are hired into an organization are chose for fit; they are then shaped and directed to behave in certain ways. When an organization is confronted with change, this structural inertia acts as a counterbalance to sustain stability.

3) Sunk Costs: Some organizations invest a huge amount of capital in fixed assets. If an organization wishes to introduce change then difficulty arises because of these sunk costs.

4) Politics: Organizational change may also shift the existing balance of power in organization. Individuals or groups who hold power under the current arrangement may be threatened with losing these political advantages in the advent of change.

5) Threat to established power relationships: Any redistribution of decision-making authority can threaten long established power relationships within the organization. Managers may therefore resist change that introduces participative decision making because they feel threatened.

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6) Threat to expertise: Change in organizational pattern may threaten the expertise of specialized groups. Therefore specialist usually resists change.

7) Group Inertia: Even if individuals want to change their behaviour, group norms may

act as a constraint. For example, if union norms dictate resistance any unilateral change made by management, an individual member of the union who may otherwise be willing to accept the changes may resist it.

Although resistance to change is a common phenomenon in organizations, it must be noted that not all changes are resisted. In fact, if we look at any organization closely we would probably find that far more changes are accepted than resisted. The traditional view of resistance to change treated it as something to be overcome, and many organizational attempts to reduce the resistance have only served to intensify it. The contemporary view holds that resistance is simply a form of feedback and that this feedback can be sued very productively to manage the change process. One key to managing resistance is to plan for it and to be ready with a variety of strategies for using the resistance as feedback and helping employees negotiate the transition. Some tactics have been suggested for sue in dealing with resistance to change.

a) Education and Communication: Communication about impending change is essential if employees are to adjust effectively. The details of the change should be provided, but equally important is the rationale behind the change. Employees A B C want to know why change is needed. If there is no good reason for it, why should they favour the change? Providing accurate and timely information about the change can help prevent unfounded fears and potentially damaging rumors from developing. It is also beneficial to inform people about the potential consequences of the change. Educating employees on new work procedures is often helpful.

b) Participation: It is difficult for individuals to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process. When employees are allowed to participate, they are more committed to the change.

c) Empathy and Support: Another strategy for managing resistance is providing empathy and support to employees who have trouble dealing with the change. Active listening is an excellent tool for identifying the reasons behind resistance and for uncovering fears. An expression of concerns about the change can provide important feedback that managers can use to improve the change process.

d) Negotiation: Another way to deal with potential resistance to change is to exchange something of value for a lessening of the resistance. Where some persons in a group clearly lose out in a change, and where groups have considerable power to resist, negotiation and agreements are helpful. It becomes relatively easy to avoid major resistance through negotiation. Negotiation as a tactic may be necessary when resistance comes from a powerful source.

e) Manipulation and cooperation: Manipulation refers to covert influence attempts. Twisting and distorting facts to make them appear more attractive, withholding undesirable information and creating false rumours to get employees to accept a

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change are all examples of manipulation. It involves giving individuals a desirable role in design or implementation of change.

5. Let us sum up

Change in fact, is accelerating in our society. Meeting this challenge of change is the primary responsibility of management. An organization lacking adaptability to change has no future. Adaptability to change is a necessary quality of good management. Practically everything a manager does is in some way concerned with implementing change. Although organizational changes are important, managers should try to institute changes only when they make strategic sense. Adaptability to change is a necessary quality of good management practice.

6. Key words

a) Managing Changeb) Change Agentsc) Resistance to Change

7. Answer the following

What are the major reasons individuals resist change? How can organizations deal with resistance?

What are the major external and internal forces for change in organizations?

What is a change agent? Who plays this role?

What can change agents affect?

Why is participation considered such an effective technique for lessening resistance to change?

8. Suggested readings




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Unit: 2

ORGANISATIONAL CLIMATE

Content

1. Aims and objectives2. Introduction3. Concepts of organizational climate 4. Actors organizational climate5. Effects of climate6. Measurement of Organizational Climate7. Let us sum up8. Key words9. Answer the following10. Suggested readings

1. Aims and objectives

The main objectives of the lesson are to understand the basic concepts of organizational climate, actors of organization, effects of climate and the measurement of O.C.

2. Introduction:

After discussing the various aspects of human beings, you should learn the basic features of organizational climate. A concept that management can ill afford to ignore is "organizational climate". All organizational theoreticians and researchers unanimously agree that a sound climate is extremely important for the ultimate achievement of organizational goals. Various interactive behaviors discussed in different lessons of this "organizational behavior".

3. Concepts of organizational climate:

Subject, viz. interpersonal behavior, group behavior, use of power and authority, lea7dership, communication, conflict and control occur in organizational context. Therefore, overall organizational situations and characteristics would affect the effectiveness of these behaviors. Such situations and characteristics are contained in organizational climate and culture. Therefore, understanding of organizational climate and culture helps in better management of people in the organization.

Individuals in organization are faced with several questions as he or she perceives the setting in which one is working. What is the optimal environment for the individual, conflicts between individuals and organization are inevitable. People with a strong need to be independent find that most organizations do not provide them with a suitable organizational climate. Even the rewards from the organization • may induce conflict within the individual if he feels that someone else got more than he did. There is no simple relationship between job satisfaction and job performance. To lessen conflict, the organization must provide the person with a climate in which one can unfold and develop. Individual personalities and job

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requirements interact to produce a climate that can be significant to both the individual and the organization.

Climate can be defined as "Those characteristics that distinguish the organization from other organizations, that influence the behaviors of people in the organization and are relatively enduring overtime. Organizational climate is situational determined process, where the climate variables are causative factors for performance and attitudes." The "Psychological Climate" is the individual perception of a situation.

The psychological climate includes, the following five aspects: -

1) Ppsychological climate is basically perceptual.

2) Psychological climate is based upon interaction between situational and individual characteristics.

3) There is an intervening psychological process in an organizational model, where the point of intervention is between the situation and individual.

4) Psychological climate is not completely a situational specific construct.

5) Psychological climate represents a set of higher order abstractions, which reflect; inter relationships among more specific perceptions of the work environment-

Q.A. Forehand and B.V.H. Gilmer feel that climate consists of a set of characteristics that describe an organizations, distinguish it from other organizations, are relatively enduring over time, and influence the behavior of people in it. Based on these characteristics John-p.compbell define organizational climate as:

"A set of attributes specific to a particular organization that may be induced from the way that organization deals with its members and its environment. For the individual members with in the organization, climate takes the form of a set of attitudes and expectancies which describe the organization in terms if both static characteristics (such as degree of autonomy) and behavior outcome and outcome contingencies".

When organizational climate is defined in this way, many kind of organizational factors are relevant contributors to it. The crucial elements are the individual's perceptions of the relevant stimuli constraints and reinforcement contingencies that govern human behavior. Thus, the perception of people regarding the functioning of that factor is important. From this point of view, let us discuss the important actors to be considered in organizational climate.

4.. Actors organizational climate

This includes the following six factors, which affect organizational climate

1. Organization structure - perception of the extent of organizational constraints, rules, regulations, red-tape

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2. Individual responsibility - feelings or autonomy of being one's own boss

3. Rewards - feeling related to being conflict of adequate and appropriate rewards;

4. Risk and risk taking - perceptions of the degree of challenge and risk in the work situation

5. Warmth and support - feelings of general good fellowship and helpfulness in the work settings and

6. Tolerance and conflict - degree of confidence that the climate can tolerate differing opinions.

1. Managerial support2. Managerial structure3. Concern for new employees4. Inter-agency conflict5. Agent dependence and6. General satisfaction

R. Taguiri has also identified the following five factors in organizational climate on the basis of information provided by managers.

1. Practices relating to providing a sense of direction/ purpose to their jobs - setting of objectives, planning and feedback Opportunities for exercising individual initiative

2. Working with a superior who is highly competitive and competence.

3. Working with co-operative and pleasant people and

4. Being with a profit minded and sales oriented company.

SIZE, SHAPE AND CONTROL

The chief merit of a large organization be it an industrial governmental or research beurocracy is its technical efficiency, with premium-on precisions, speed and cotrol. As the business grows the old face to face techniques are no longer adequate, new and different things are required. Such things as the kinds of skill and the location of pools of skill within the organization, the decentralization of authorities and the development of new kinds of communication networks may change radically as the company grows. The size may lead to the belief that the organization is strong and powerful just because it is big where as the smaller organizations are flexible in adapting to changed conditions. Psychologically the size of the organization may be one of the factors affecting the organizational climate. The individual is treated impersonally in the larger organizations. However size alone cannot determine the job satisfaction. 5. Effects of climate

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People react to climate and climatic changes, organizations sometimes change because individual's change. A modification of the climate also offers good way to observe the effects, climate has on the people in organization- The psychological climates of organization's change sometimes for good and sometimes for bad. Conflicts between individual and organization is inevitable. People with strong needs to be independent find that most organizations do not provide a proper setting. To kinds of influence of climate ' on individuals may be distinguished.

First, there is a direct influence that affect all or almost all members of the company or some submit. The second kind of effect is termed interactive influence, which exists when a climate has a certain effect on behaviour of some people, a different effect on others, and possibly no effect at all on still others. Some behaviours never occur because the stimuli that would elicit them are never presented. Organizations themselves place constraints on people through rules and regulations, routine practical traits. It is not uncommon for the ambitious person to find himself in a climate that puts restraints upon freedom, narrowing his alternatives of action.

Organizational goals, the personal goals of leaders, and the goals of members of the organization sometimes are in conflict. This perception to a large extent is governed by personality factors and how they are related to satisfaction of one's needs, and by the things that motivate us both from within and from without. The importance of motivating and supervising people is paramount in understanding organization climate.

6. Measurement of Organizational Climate

Trying to measure organizational climate is an attempt to capture the essence, environment, order and pattern of an organization or submit. There are many questionnaire/ containing usually fewer the twenty five items (questions), are given to employees to respond. Usually the questions are answered on some form of a scale which may vary from one point to six points or from one to ten point scale. The numerical scale is normally accompanied by certain descriptive terms for each point on the scale. An example of the type of questions and the scale that might be used is presented as under :

Example of two questionnaire items designed to measure the "risk" property of organizational climate.

1. Decision making in their organization is too cautious for maximum effectiveness:

2. You won't get ahead in this organization unless you stick your neck out and take a change now and then :

Almost all questionnaires use slightly different terminology but all are very closely related in terms of "concept" and "dimensions". Generally, the dimensions studied will be the conformity, responsibility standards, rewards, organizational clarity, warmth and support and leadership. It is possible that the organization may have more than one climate. For instance, if perceptions are measured, then different groups may have different perceptions. H.Russel Johnston in his research -found two climates in a study of professionals in a small consulting firm. He noticed that long term employees deemed the climate flexible, supportive, non-

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authoritarians, concerned with integrating individual with organizational goals and generally organize, adaptive in its environment. Whereas newer employees saw as rigid, procedural, strongly based on hierarchy and authority more impersonal and emphasizing organizational goals- In some other studies, it has been found that climates also can differ with respect to hierarchy and to the degree of environmental uncertainty.

Through the rigor of research varies significantly among different studies of organizational climate, there is enough evidence to warrant practical interrupt in the application of the concept to organizations.

Elements of a Favorable Climate

Climate can range along a continuous line from favorable to neutral to unfavorable. Both employers and employees want a more favorable climate because of its benefits, such as better performance and satisfaction-Typical elements that create favorable climate are quality of leadership, amount of trust, communication upward and downward feeling of useful work, responsibility, fair rewards, opportunity reasonable controls, structure and bureaucracy, employee involvement and participation. Employees feel that the climate is favorable where they are doing something useful that provides a sense of personal worth. They frequently want a challenging work that is intrinsically satisfying. Employees want to be listened to and treated as if they have value as individuals; They want to fell that the organization really cares about their needs and problems.

Climate is a system's concept that reflects the entire life style of an organization. When the life style can be improved, measurable gains in performance are likely to occur.

Developing a Sound Organizational Climate

A sound organizational climate is a long term proposition. The; climate of each organization is set through an organizational behaviour system.

The Total Man concept

The organizational climate is contingent on the assumptions of the nature of people in general. In dealing with people the total man concept should be take which is essentially a combination of three different concepts about the nature of human beings-economic, social and self-fulfilling. Such a classification is different from an earlier classification of man in the context of decision - making process. The basis of classification of man in to three categories derives from the fact each class of men has different set of thinking, motivation and hence requires different organizational climate.

The economic man is basically motivated by money and long-range economic security and hence the reliance on economic factors to attract, keep and motivate them. For social man positive social relations and interactions are a must; within his work environment, man seeks an affinity with fellow employees. The creation of a climate where happy family atmosphere prevails is appropriate for him. The self-fulfilling man seeks achievement, accomplishment and meaning in what he does. The organizational climate with premium on certain degree of freedom is appropriate for him. Thus, each type of man requires a particular

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climate. In order to build up a sound organizational climate, managers must understand their people in the organization.

Features of a sound organizational Climate

The importance must be given to what motivates job performance in general and building an overall climate conductive to motivation, a keen insight into the individual in particular and tailoring a personnel approach to leadership and job design to which the man will respond with commitment. The individual differences suggests that there cannot be any all -purpose organisational climate. Though there are variations in practices, following prescriptions can be taken as features of a sound organizational climate :

1. Absence of political maneuvering for organizational positions and other personal gains;

2. 'Linking rewards with performance rather than linking with other considerations such as blood relationship, friendship and society background ;

3. High standards’ of excellence in every area of operation and evaluation;

4. Encouragement for participation and group decision and its implementation;

5. Encouragement for innovation and freedom to act up on ideas;

6. High value assigned to interpersonal ability and tolerance of individual differences

7. High standards of moral integrity in dealing with both internal and external matters.

7. Let us sum up

Individuals in organization are faced with several questions as he or she perceives the setting in which one is working. What is the optimal environment for the individual, conflicts between individuals and organization are inevitable. People with a strong need to be independent find that most organizations do not provide them with a suitable organizational climate.

8. Key words

Managerial support Managerial structure Concern for new employees Inter-agency conflict

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9. Questions and answer

1) What do you mean by "Organizational Climate"? What are the factors affecting climate of work in an organization?

2) How does organizational climate influence the behavior of its member? Discuss the ways in which a sound organizational climate may be created.

3) Is the climate subject to measurement? If so, how? If not why?

4) Explain how to change climate whenever necessary?

10. Suggested Readings




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Unit-3

Management of conflict

Content

a) Aims and objectivesb) Introductionc) Conflictd) Types and level of conflicte) Behavioral aspects and conflictf) Conflict between individual and groupsg) Types of conflict situationsh) Let us sum upi) Key wordsj) Answer the followingk) Suggested readings


The main objective of the lesson is to understand the basic concepts relating to types and level of conflict, conflict between individuals, and types of conflict.

2. Introduction

Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. Conflict is a process in which people disagree over significant issues, thereby creating friction between parties. Conflict can exist when people have opposing interests, perceptions, and feelings; when those involved recognize the existence of differing points of view; when the disagreement is ongoing; and when opponents try to prevent each other from accomplishing their goals.

3. Conflict

Although conflict can be destructive, it can also be beneficial when used as a source of renewal and creativity. Competition, rivalry between individuals or groups over an outcome that both seek, is not the same as conflict. In competition, there must be a winner and a loser; with conflict, people can cooperate so that no one wins or loses. Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Given the different goals of stakeholders, organizational conflict is inevitable. Conflict is associated with negative images, such as unions getting angry and violent, but some conflict can improve effectiveness. When conflict passes a certain point, it hurts an organization.

4. Types and levels of Conflict

There are four types of conflict. Inter-group conflict occurs when groups within and outside the organization disagree on various issues. Interpersonal conflict is due to differences in goals, values, and styles between two or more people who are required to

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interact. Intra group conflict occurs within a work group over goals and work procedures. Interpersonal conflict is a person's internal conflict over divergent goals, values, or roles. Inter group conflict can occur at two levels which are horizontal and vertical. Horizontal conflict takes place between departments or groups at the same level of the organization. In contrast, vertical conflict occurs between groups at different levels of the organization.

Types of Conflict

1. Task conflict: Conflicts over content and goals of the work2. Relationship conflict: Conflict based on interpersonal relationships3. Process conflict: Conflict over how work get done

Manager’s ways to manage conflict.

Managers can manage conflict by either preventing or reducing high levels of conflict or stimulating low levels of conflict. To do this, managers can apply a behavioral approach or an attitudinal approach. The behavioral approach targets the behavior causing the conflict, while the attitudinal approach targets the roots of the conflict, including people's emotions, beliefs, and behaviors. Behavioral methods include enforcing rules, separating the parties, clarifying tasks, having a common enemy or outside competition, and increasing resources and rewarding cooperation. Attitudinal methods include having a common enemy, rotating members, increasing resources, and team-building and organizational development (OD). To stimulate conflict, managers can introduce change, increase task ambiguity, or create interdependency.

Conflict and Negotiation

Stakeholders compete for the resources that an organization produces. Shareholders want dividends, employees want raises. An organization must manage both cooperation and competition among stakeholders to grow and survive. All stakeholders have a common goal of organizational survival, but not all goals are identical.

Negotiation

It is the process used by two or more parties to reach a mutually agreeable arrangement to exchange goods and services. Managers need negotiating skills to be effective in today's global, diverse, dynamic, team oriented business environment. Culture significantly affects the negotiation process. Negotiators from masculine cultures emphasize assertiveness and independence, which can cause them to see negotiation as a competition and spur them to win at all costs. Negotiators from cultures comfortable with uncertainty will take a creative, problem-solving approach, while those from high uncertainty-avoidance cultures will emphasize bureaucratic rules and procedures. Power-distance, individuality-collectivism, high or low context, emotion, and time-orientation dimensions also affect negotiation. Beyond a certain point, conflict hurts the organization and causes decline. Managers spend time bargaining, rather than making decisions. An organization in decline cannot afford to spend time on decision-making, because it needs a quick response to recover its position. Group’s battle for their interests, no agreement is reached, and the organization floats along, falling prey to inertia. Bargaining issues in negotiation process can be divided into three categories: mandatory, permissive, and prohibited.

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Mandatory Bargaining Issues—Fall within the definition of wages, hours, and other terms and conditions of employment.

Permissive Bargaining Issues—May be raised, but neither side may insist that they be bargained over.

Prohibited Bargaining Issues—Are statutorily outlawed.

Negotiation Strategies

Shows four negotiating strategies based on the importance of the substantive outcome and the importance of the relationship outcome. These four strategies are trusting collaboration, firm competition, open subordination, and active avoidance. Trusting collaboration is a win-win strategy most appropriate when both the substantive task outcome and the relationship outcome are important. Firm competition is used when the substantive task outcome is important but the relationship outcome is not. Open subordination is applied when the task outcome is not important but the relationship outcome is. Active avoidance is useful when neither the task outcome nor the relationship outcome is important. When two parties are unable to come to agreement during negotiations, they may bring in a third party to help resolve the differences. Conciliation and consultation focus on improving interpersonal relations to foster constructive discussion of issues. Mediation considers both interpersonal and substantive issues and relies on formal evaluation of positions plus persuasion to bring about a non-binding solution. Arbitration, a legally binding process in which the arbitrator imposes a solution, can be used when all other methods have failed and the conflict must be urgently resolved.

Common mistakes made when negotiating include:

Irrational escalation of commitment; thinking the pie is fixed; winner's curse; and overconfidence. Avoiding these common mistakes requires managers to be aware of the issues, be thoroughly prepared, and be willing to rely on expert opinion to reduce the possibility of making mistakes.

5. Behavioral aspects and conflict

This conflict can arise by a simple misunderstanding or an error in communication. A misunderstood message can create a lot of problems. This conflict can also arise due to differing viewpoints about various issues. For example, two Vice-presidents may differ about their viewpoint about which strategic plans to implement. Another aspect of the conflict can be based of emotions, feelings perceptions and values. These feelings may be the feelings of anger, distrust, fear or simply dislike due to personality differences. This may also be based upon religion, race or sex. Some families carry on enmity for generations.

The value based conflicts arise due to different values which may be culturally based. For example, a Vice-President may want to fire some workers to save costs while another Vice-President may have human sensitivity and support other methods of cutting costs. As another example, a professor may value freedom of teaching methods and close supervision of his techniques may cause conflicts.

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The personality of an individual may in itself be a cause of conflict. For example, some people by nature are consistently aggressive an hostile and hence are highly likely to induce conflict. Studied conducted by Walton and Dutton showed that people with highly authoritarian nature, highly dogmatic people and people with low self-esteem are more likely to induce conflict.

6. Conflict between individual and groups

The individual may want to remain within the group for social needs but may disagree with the group methods. For example, in home restaurants all tips are shared by all waiters and waitresses. Some waitress who may be overlay polite and efficient may feel she deserves more, thus causing a conflict with the group. Similarly, if a group is going on strike for some reason, some members may not agree with these reasons or may not be able to afford to go on strike, thus causing conflict with the group.

This conflict may also be between the manager and his subordinates as a group or between the leader and the led. A manager may take disciplinary action against a member of the group causing conflict which may result in reduced productivity. “Mutiny on the Bounty” is a classic example of rebellion of crew against the leader, based upon their treatment. The conflict among the armed forces is taken so seriously that the army must obey their commander, even if the command is wrong an in conflict with what others believe in.

7. Types of conflict situations

The management must survey the situation to decide whether to stimulate conflict or to resolve it. Thomas and Schmidt have reported that managers spend up to 20% of their time in dealing with conflict situations. Hence, it is very important that managers understand the type of conflict that they have to deal with so that they can device some standardized techniques in dealing with common characteristics of conflicts in each type or category. There are five basic types of conflicts.

These are

1. Conflict within the individual2. Interpersonal Conflict3. Conflict between the individual and the group4. Inter-group conflict5. Inter-organizational conflict

Structural aspects and causes of conflict

1) Role ambiguity. A role is a set of activities associated with a certain position in the organization or in the society. According to Kahn, if these work activities are ill defined, then the person who is carrying out these activities will not behave as others expect him to because his role is not clearly defined. This will create conflict, specially between this individual and those people who depend upon his activities. A hospital or a medical clinic employing a number of physicians with overlapping specialties might cause conflict due to role ambiguity. Such conflicts can be reduced

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by redefining an clarifying roles and their interdependencies. In addition to role ambiguity, there may be a role conflict. The role conflict occurs when two or more persons have different and sometimes opposing expectations of a given individual. For example, an architect may be expected to produce creative designs while on the other hand, there may be time constraints put upon him, both roles being in conflict with each other. Similarly, building codes prescribe. Another type of role conflict is the interrole conflict where an individual plays more than one role simultaneously in his life an the demands of these roles conflict with each other. For example a father may know that his son has committed a crime, but does not inform the police, or a police officer may be invited to his brother's wedding party where the guests use drugs which is against the law etc.

2) Design of work-flow. These are primarily intergroup problems and conflicts which are the outcomes of poorly designed work-flow structure and poorly planned coordination retirements, specially where the tasks are interdependent. According to Sashkin and Morris, “organizations are made up of many different groups that must work together towards the accomplishment of common objectives.” For example, in a hospital, the doctors and nurses must work together and their tasks are highly interdependent. If they do not coordinate their activities well, there be confusion and conflict. Similarly, in a restaurant, the cook and the waiter depend upon each other for critical information and services. A poorly designed workflow and uncoordinated activities between the cook and the waiter would create conflict and problems.

8. Let us sum up

Organizational conflict occurs when a stakeholder group pursues its interests at the expense of other stakeholders. Given the different goals of stakeholders, organizational conflict is inevitable. Conflict is associated with negative images, such as unions getting angry and violent, but some conflict can improve effectiveness. When conflict passes a certain point, it hurts an organization.

1. Key words

a. Conflict within the individualb. Interpersonal Conflictc. Conflict between the individual and the groupd. Inter-group conflict

2. Answer the following

9. What is meant by conflict?10. Explain the different types of conflict.11. What do you understand by Behavioral aspects and conflict?12. Difference between individual and groups conflict

11. Suggested readings10. Peter F.Drucker, management tasks and responsibilities Truman Talley books , New York11. Stephen P.Robbins, fundamental of management, Pearson 200312. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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Unit-4

Organizational Developments and interventions

Content

a) Aims and objectives b) Introduction c) OD in India d) OD interventions and techniques e) Role of Organisation Development : f) Advantages of OD g) Limitations of OD h) Let us sum up i) Key words j) Answer the following k) Suggested readings


The main objectives of the lesson is to understand the OD approaches in India, role of OD, and the advantages of OD.

2. Introduction

OD program has been successfully implements recently in number of companies in India. Some notable examples are Tata iron and Steel co.ltd, Hindustan Machine Toole Ltd, Hindustan Aeronautics ltd. State Bank of India, Bokaro steel and orient paper mills. The OD work has been done in diverse type of organizations, such as industrial organizations of both public and private sectors, and non-industrial organizations like banks, hospitals, government department etc. such organizations have applied OD techniques with varying Degrees of success. Many of the organization have not published their results of OD efforts. This is because most of the OD work has been taken on consultancy basis and it was thought proper not to disclose the identity of the organizations involved. Some detailed accounts of OD efforts are available in published forms. Such detailed accounts of OD efforts are available in published forms. Such efforts are in the context of Hindustan Machine Tools, a public sector organizations, banks and other organizations. Though the results which have been reported have been encouraging there are various problems in the way of OD implementation in Indian organizations.

3. OD in India

The general environment -socio-cultural as well as economic in which most of the Indian organizations are working is not very conductive to adopt modern management techniques, such as OD or similar ones. For the adoption of such techniques essentially requires sharing of authority, participative management, free flow of two-way communication change in attitude of managers and owners of the organizations towards latest management techniques and availability of external consultants who can devote considerable time to the organizations under going through the OD programs Some of these problems have been identified in the case of adoption of MBO by Indian organizations. What is more

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relevant in the case of OD is the relationship between management and external consultants. Indian organization by and large do not want to share their problems with the external consultants simply because they do not have trust and confidence in consultants either because of their fear of confrontation with such consultants or because of the decline of their power. Such fears are however not based on any concrete proof. In face the OD program have shown that the power enhances and is shared widely among participants and a self-imposed discipline emerges in healthy work setting.

The difficulty if further enhanced by the role of external consultants who have a traditional view of looking at consultants role. They believe that the consultants role is to diagnose all problems, suggest solution put these in reports and hand over these to management to do what it wants. Though this approach may be quite relevant in the case of the technical problems, this is unlikely to work in the case of OD or similar techniques where behavioral change is much more important- In fact the role of external consultants should be extended to the implementation aspect of a particular technique. This is more closely related with management's expectation from a consultant. Management wants concrete results and not the reports on a particular problems- Moreover the application of any techniques may be facilitated when managers as well as external consultants put efforts together. This is because the theoretical background which a consultant has backed by the working experience in a particular environment which a manager has. OD program particularly requires such long associations between managers and consultants.

These are some of the problems which Indians organizations are currently facing in applying OD. Since OD technique is being followed by several organizations, there is a possibility that with the experience gained there, it may fruitfully be applied in other organizations. From this point of view the future of OD in India is bright. Udai Pareek feels that OD work is currently going on in several industries and non-industrial organizations and non-industrial organizations and as these experiences are shared we shall have a better understanding of the effective use of OD in traditional organizations, public sector industries, industries employing various technologies and a variety of non-industrial organizations.

4. OD IMTERVENTIONS / TECHNIQUES :

Organization development intervention techniques are the methods created by OD professionals and others. Single organization or consultants cannot use all the interventions. They use these interventions depending up on the need or requirements. The most important interventions are : survey feedback, process consultation, sensitivity training, the managerial grid, goal setting and planning, team building and management by objectives. Other interventions are job enrichment, changes in organizational structure and participative management and quality circles.

1. Survey Feedback:

This intervention provides data and information to the managers. Attitudes of employees about wage - level, and structure, hours of work, worming conditions and relations are collected and results are supplied to top executive teams. These teams analyze the data find out the problem, evaluate the results and develop the means to correct the problems

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identified. The teams are formed with the employees at all level in the organizational hierarchy, ie. From rank and file to the top level.

2. Process Consultation :

Under this method the process consultant meets the members of department in work teams, observes their interactions, problems identification skills, problem solving procedures etc. He feels bad the team with the information collected through observation, coaches and counsels, individuals and groups in molding their behavior.

3. Goal setting and Planning:

Each divisions in an organization or branch / zonal office sets the goals or formulates the plans relating to - puritability - market share, human resources, productivity etc. these goals are sent to the top management, which in turn sends them back to the divisions/zones/branches after modifications. ,A set of organization-wide goals emerge thereafter.

4. Managerial Grid:

Industrial psychologist Blake and Mouton developed the. management grid basing on the Ohio state study. The managerial grid identifies range of management behavior based on the different ways that how production/service oriented stages interact with each other. Managerial grid is also called as instrumental laboratory training as it it a structured version of laboratory training. It consists of individual and group exercises with a view to developing awareness of individual managerial style, interpersonal competence and group effectiveness. Thus grid training is directly related to the leadership styles.

5. Sensitivity Training:

The most commonly used OD intervention is "sensitivity training". It is also called "LABORATORY TRAINING". It is called Laboratory Training and it is conducted by creating an experimental laboratory situation in which employees are brought together in groups, to interact in an unstructured environment. The members are encouraged to interact with new members and new individual behaviors.

The objectives of laboratory training are to (i) Help people understand themselves better (ii) to create better understanding to others (iii) to gain insight in to the group process and (iv) to develop specific behavioral skills.

Some people never understand why they feel and act as they do and how others feel about them. Some people are insensitive to effects or their behavior upon others and their orders up to subordinates. Laboratory training helps such people to understand the impact of their behavior on others. Most of the people concentrate on what they are going to say rather than what others are saying. This training develops them as good listeners. It also helps the participants to form into informal groups and teams and work more effectively.

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Modus - Operand - of Sensitivity Training:

Sensitivity training provides face to face interaction. This training is carried out by largely unstructured groups without an agenda, leader and predetermined goat. The group is given complete freedom in developing their own devices, interactions and on-going process for interaction. Laboratory training may include role playing, inter group competitive exercises, self insight questionnaries, theory session with lectures, background readings, panel discussions and audio-visual aids in addition to T' groups.

6. Team Building:

Most of the laboratory training takes place among the ^employees of the same department. These employees work together as a team. Team building is nothing but application of various techniques of sensitivity training to the actual work groups in various departments. These work groups consist of peers and a supervisor. Laboratory techniques are also applied to short term work teams. This technique, like laboratory training, aims at improving inter group relations. This technique is designed to improve the ability of the employees to work together as teams.

7. Job Enrichment:

Job enrichment is initiated generally to motivate the employees, improve their job satisfaction morale and productivity.

8. Change in organizational structure:

Various models or organizational structure, particularly matrix organization improves inter group Interaction and relation and relations. Further changes may be introduced in organizational structure to provide the scope for team work, group interactions and increased interpersonal relations.

9. Participative Management and Quality Circles :

Participative management and quality circles are extensions to teamwork. They provide for voluntary formation of groups/teams, association, interaction etc. they encourage open discussion on various problems and are arriving at a commonly agreed solutions and executions of the agreement by the members themselves.

5. Role of Organization Development:

Organisation development, as a long term strategy for organizational change, plays key role in organizational improvement. The basic problem in a change effort which is not comprehensive is that it does not work properly unless there is proper change in the internal environment of the organization in which people work. Since OD attempts to bring comprehensive change in the organization, it is quite suitable for improving organizational

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performance as long term basis. Thus OD can be utilized for the following results in the organization:

1. To place emphasis on humanistic values and goals consist with these values ;

2. To treat each human being as a complex person with a complex set of needs importance in his work and his life.

3. To increase the level of enthusiasm and personal satisfaction at all organizational members and levels of the organization.

4. To increase the level of self and group responsibility in planning and its implementation.

5. To increase the openness of communications in all directions - vertically, horizontally and laterally.

6. To create an environment in which authority of assigned role is augmented by authority based knowledge and skills.

6. Advantages of OD:

1. OD improves the organizational effectiveness. To be more specific OD increases productivity boosts morale through improved utilization of human resources.

2. OD provides better management from top to bottom.

3. OD improves commitment and involvement from the members of the organization making the organization successful.

4. OD improves coordination and teamwork among the members of the group and among the groups.

5. OD helps to understand the strength and weakness of the organization.

6. OD improves communication, problem solving and conflict resolution skills.

7. OD efforts to develop a work environment that encourages creativity and openness.

8. OD provides opportunities for personal growth and development.

9. OD reduces the negative attitude of the people towards the organization

10. OD makes the organization competitive and to grow by adapting itself continuously to the changing environment.

11. OD keeps the organization healthy and attracts good people.

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7. Limitations of OD:

As a method of inducing change, organizations development has certain limitations. These are as follows:

1. Organization development can be no more powerful than the behavioral science concepts on which it resets. Behavioral science itself has various limitations and these are applicable to OD also.

2. There are some persons, specially complacent ones who are not prepared to apply diligence of effort for improvement and the method of work involved in OD are sometimes not of sufficient strength to challenge the motivation of highly complacent People-3, Task of the organization and the characteristics of its membership also put limitations on the effectiveness of OD. Thus OD cannot be applied without giving due regard for the local circumstances existing within any given organization. For example research and development organizations are less responsive to change potential of OD.

It might be emphasized here that,, as with any new strategy some criticisms are justified because of mistakes. However OD can be treated as a move in the correct direction.

8. Let us sum up

Organization development intervention techniques are the methods created by OD professionals and others. Single organization or consultants cannot use all the interventions. They use these interventions depending up on the need or requirements. The most important interventions are : survey feedback, process consultation, sensitivity training, the managerial grid, goal setting and planning, team building and management by objectives. Other interventions are job enrichment, changes in organizational structure and participative management and quality circles.

9. Key wordsa. OD interventionsb. Survey c. Feed backd. Sensitivity

10. Answer the following1. Explain the OD in India.2. Write in detail about the OD interventions and techniques3. Explain the role of organization development.4. What are the advantage and disadvantages in OD

11. Suggested readings58. Peter F.Drucker, management tasks and responsibilities Truman Talley books ,

New York59. Stephen P.Robbins, fundamental of management, Pearson 200360. Koontz and Weirich, Fundamental of management, Tata McGraw Hill, New Delhi

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