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Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
Harbhajan Bansal
INTRODUCTION TO MANAGEMENT

Objective:

The objectives of this lesson are to enable to define management; to
describe the nature and scope of management; to know the
difference between management and administration; to understand
various levels of management; and to describe the various skills that
are necessary for successful managers
...
1

Introduction

1
...
3

Characteristics of Management

1
...
5

Nature of Management

1
...
Administration

1
...
8

Managerial Skills

1
...
10

Principles of Management

1
...
12

Summary

1
...
14

Suggested Readings

1
...
With
increasing complexities managing the business has become a
difficult task
...
Management is essential not only for business
concerns but also for banks, schools, colleges, hospitals, hotels,
religious bodies, charitable trusts etc
...
These objectives can be achieved with
the coordinated efforts of several personnel
...
Rather it
is the power to determine what shall happen to the personalities
and happiness of entire people, the power to shape the destiny of a
nation and of all the nations which make up the world
...

Drucker has stated in his famous book "The Practice of
Management" that, "the emergence of management as an essential,
a distinct and leading social institution is a pivotal event in social
history
...
It is considered as the indispensable institution in
the modern social organization marked by scientific thought and
technological innovations
...


2

It is management that regulates man's productive activities through
coordinated use of material resources
...

Management is the integrating force in all organized activity
...
They also have to organize and utilize their
resources in such a way as to optimize the results
...
, scarce resources including men, machines, materials
and money have to be integrated in a productive relationship, and utilized
efficiently towards the achievement of their gals
...

Management has achieved an enviable importance in recent times
...
In fact,
more and more of major social tasks are being organized on an institution
basis
...
, which typically used to be the concern of the individual or the family,
are now the domain of large organizations
...
It is
the specific organ of all kinds of organizations since they all need to utilize
their limited resources most efficiently and effectively for the achievement
of their goals
...


3

Importance of management for the development of underdeveloped
economies has been recognized during the last one and a half decade
...
It is rightly held that development is the
function not only of capital, physical and material resources, but also of
their optimum utilization
...
A higher rate of
economic growth can be attained in our country through more efficient and
effective management of our business and other social organizations, even
with existing physical and financial resources
...

The emergence of management in modern times may be regarded as a
significant development as the advancement of modern technology
...
It
is largely through the achievements of modern management that western
countries have reached the stage of mass consumption societies, and it is
largely through more effective management of our economic and social
institutions that we can improve the quality of life of our people
...

1
...
In fact, this is so in case of all social sciences like psychology,
4

sociology, anthropology, economics, political science etc
...
Changes in management styles and
practices have led to changes in management thought
...
Since it deals with the
production and distribution of goods and services, dynamism of its
environments such as social, cultural and religious values, consumers' tastes
and preferences, education and information explosion, democratization of
governments, etc
...
Yet, a
definition of management is necessary for its teaching and research, and
also for improvement in its practice
...
But, no
definition of management has been universally accepted
...
Drucker defines, "management is an organ; organs can be
described and defined only through their functions"
...
People who perform
Management

can

be

designated

as

members,

members

of

Management or executive leaders
...
Davis has defined Management as, "Management is the
function of executive leadership anywhere
...
"
Henry Fayol, "To mange is to forecast and plan, to organize, to
compound, to co-ordinate and to control
...
"
William Spriegal, "Management is that function of an enterprise
which concerns itself with direction and control of the various
activities to attain business objectives
...
"
Kimball and Kimball, "Management embraces all duties and
functions that pertain to the initiation of an enterprise, its
financing, the establishment of all major policies, the provision of
all necessary equipment, the outlining of the general form of
organization under which the enterprise is to operate and the
selection of the principal officers
...
The functions of
management are the handling of community with a view of
fulfilling the purposes for which it exists
...
F
...
Brech, "Management is concerned with seeing that the job
gets done, its tasks all centre on planning and guiding the
operations that are going on in the enterprise
...
It is the art of
getting the work done through and with people in formally
organized groups
...
It involves the combining of the traditional
factors of production land, labour, capital in an optimum manner,
paying due attention, of course, to the particular goals of the
organization
...
"
J
...
Schulze, "Management is the force which leads guides and
directs an organization in the accomplishment of a pre-determined
object
...
"

7

Keith and Gubellini, "Management is the force that integrates men
and physical plant into an effective operating unit
...
A manager is
one who gets things done by working with people and other
resources in order to reach an objective
...
E
...
"
Ordway Tead, "Management is the process and agency which
directs and guides the operations of an organization in the
realizing of established aims
...
This definition calls attention to the fundamental
difference between a manager and other personnel of an organization
...
On the
other hand, a person who is not a manager makes his contribution to the
organization’s goals directly by performing the task himself
...
For example, a sales manager is performing a managerial
role when he is directing his sales force to meet the organization’s goals,
but when he himself is contacting a large customer and negotiating a deal,
he is performing a non-managerial role
...


8

A somewhat more elaborate definition of management is given by George
R
...
He defines management as a process "consisting of planning,
organizing, actuating and controlling, performed to determine and
accomplish the objectives by the use of people and other resources"
...
The four management activities included in this process
are: planning, organizing, actuating and controlling
...
Organizing means that
managers coordinate the human and material resources of the organization
...

Controlling means that managers attempt to ensure that there is no
deviation from the norm or plan
...

To conclude, we can say that various definitions of management do not run
contrary to one another
...


1
...


Economic Resource : Management is one of the factors of
production

together

with

land,

labour

and

capital
...

Efficient management is the most critical input in the success of any
organized group activity as it is the force which assembles and
integrates other factors of production, namely, labour, capital and
materials
...

Thus, management is an essential ingredient of an organization
...


Goal Oriented : Management is a purposeful activity
...
The
success of management is measured by the extent to which the
organizational goals are achieved
...


3
...
These functions are so interwoven that it is not possible
to lay down exactly the sequence of various functions or their
relative significance
...


Integrative Force : The essence of management is integration of
human and other resources to achieve the desired objectives
...
Managers
apply knowledge, experience and management principles for getting
the results from the workers by the use of non-human resources
...


10

5
...
Managers at different levels possess varying degree of
authority
...
Authority enables the
managers to perform their functions effectively
...


Multi-disciplinary Subject : Management has grown as a field of
study (i
...
discipline) taking the help of so many other disciplines
such as engineering, anthropology, sociology and psychology
...
For instance, productivity orientation drew its inspiration
from industrial engineering and human relations orientation from
psychology
...


7
...
The
principles and techniques of management are equally applicable in
the fields of business, education, military, government and hospital
...
The principles are working
guidelines which are flexible and capable of adaptation to every
organization where the efforts of human beings are to be
coordinated
...
4

MANAGEMENT FUNCTIONS /PROCESS OF MANAGEMENT
There is enough disagreement among management writers on the
classification of managerial functions
...

11

Henri Fayol identifies five functions of management, viz
...
Luther Gulick
states seven such functions under the catch word "POSDCORB' which
stands for planning, organizing, staffing, directing, coordinating, reporting
and budgeting
...
Koontz and O'Donnell divide these functions
into planning organizing, staffing, directing and controlling
...

1
...
If people working in groups have to
perform effectively, they should know in advance what is to be done,
what activities they have to perform in order to do what is to be
done, and when it is to be done
...
It is deciding in the present about
the future objectives and the courses of action for their achievement
...
, for the
implementation of strategies, and plans
...
These
objectives are both long-range as well as short-range
...
This is followed by the development of
strategies and courses of action to be followed at various levels of
management and in various segments of the organization
...

Every manager performs all these planning functions, or contributes
to their performance
...
The plans
may be in the minds of their managers rather than explicitly and
precisely spelt out: they may be fuzzy rather than clear but they are
always there
...
It is performed in all kinds of organizations by all
managers at all levels of hierarchy
...


Organizing : Organizing involves identification of activities
required for the achievement of enterprise objectives and
implementation of plans; grouping of activities into jobs; assignment
of these jobs and activities to departments and individuals;
delegation of responsibility and authority for performance, and
provision for vertical and horizontal coordination of activities
...
Having identified the activities, he has to group identical or
similar activities in order to make jobs, assign these jobs or groups
of activities to his subordinates, delegate authority to them so as to
enable them to make decisions and initiate action for undertaking
these activities, and provide for coordination between himself and
13

his subordinates, and among his subordinates
...


(b)

Grouping the activities so as to create self-contained jobs
...


(d)

Delegation of authority so as to enable them to perform their
jobs and to command the resources needed for their
performance
...


Organizing process results in a structure of the organization
...

Organizing is thus the basic process of combining and integrating
human,

physical

and

financial

resources

in

productive

interrelationships for the achievement of enterprise objectives
...

3
...

After the objectives have been determined, strategies, policies,
programmes, procedures and rules formulated for their achievement,
activities for the implementation of strategies, policies, programmes,
etc
...
Since the efficiency and effectiveness of an organization
significantly depends on the quality of its personnel and since it is
one of the primary functions of management to achieve qualified and
trained people to fill various positions, staffing has been recognized
as a distinct function of management
...


(b)

Recruitment for attracting adequate number of potential
employees to seek jobs in the enterprise
...


(d)

Placement, induction and orientation
...


(f)

Training and development of employees
...
It need hardly any emphasize that
no organization can ever be better than its people, and managers
must perform the staffing function with as much concern as any
other function
...


Directing : Directing is the function of leading the employees to
perform efficiently, and contribute their optimum to the achievement
of organizational objectives
...
The function of
directing thus involves the following sub-functions :
(a)
(b)

Motivation

(c)
5
...
It is thus
the process of tying together all the organizational decisions,
operations, activities and efforts so as to achieve unity of action for
the accomplishment of organizational objectives
...
The manager, in her view, should
ensure that he has an organization "with all its parts coordinated, so
moving together in their closely knit and adjusting activities, so
linking, interlocking and interrelation, that they make a working
unit, which is not a congeries of separate pieces, but what I have
called a functional whole or integrative unity"
...


Controlling :

Controlling is the function of ensuring that the

divisional, departmental, sectional and individual performances are
consistent with the predetermined objectives and goals
...
Deviations from plans and objectives
provide feedback to managers, and all other management processes
including planning, organizing, staffing, directing and coordinating
are continuously reviewed and modified, where necessary
...
It
also implies a flexible and dynamic organization which will permit
changes in objectives, plans, programmes, strategies, policies,
organizational design, staffing policies and practices, leadership
style, communication system, etc
...

Thus, controlling involves the following process :
(a)

Measurement of performance against predetermined goals
...


(c)

Corrective action to rectify deviations
...
Management is an integral process and it is difficult
to put its functions neatly in separate boxes
...
For example, when a production manager is
discussing work problems with one of his subordinates, it is difficult
to say whether he is guiding, developing or communicating, or doing
all these things simultaneously
...

1
...
It has developed
into a body of knowledge and a separate identifiable discipline during the
past six decades
...

Management has also acquired several characteristics of profession during
recent times
...

The nature of management as a science, as art and as a profession is
discussed below :
Management as a Science : Development of management as a science is
of recent origin, even though its practice is ages old
...
Taylor
was the first manager-theorist who made significant contributions to the
development of management as a science
...
A perceptive manager, as he was, he distilled certain fundamental
principles and propounded the theory and principles of scientific
management
...
During the last few decades, great strides
have been made in the development of management as a systematized body

18

of knowledge which can be learnt, taught and researched
...
The scientific character of management has been particularly
strengthened by management scientists who have developed mathematical
models of decision making
...

Management principles are firmly based on observed phenomena, and
systematic classification and analysis of data
...
Generalizations about these relationships
result in hypotheses
...
These principles when applied to practical situations help
the practitioner in describing and analyzing problems, solving problems and
predicting the results
...
This is simply because management is a
social science, and deals with the behaviour of people in organization
...
This makes controlled
experiments very difficult
...
In fact,
many natural sciences which deal with living phenomena such as botany
and medicine are also not exact
...
But this does not in any way diminish the value
of management as a knowledge and discipline
...

Management as an art : Just as an engineer uses the science of
engineering while building a bridge, a manager uses the knowledge of
management

theory

while

performing

his

managerial

functions
...
Similarly, management as a body of knowledge and a
discipline is a science; its application to the solution of organizational
problems is an art
...
A medical practitioner, who does not base his diagnosis and
prescription on the science of medicine, endangers the life of his patient
...

Principles of management like the principles of medicine are used by the
practitioner not as rules of thumb but as guides in solving practical
problems
...
This is true too
...
It is a science as well as an
art
...

Management as a Profession : We often hear of professionalisation of
management in our country
...
But, is
management a profession in the true sense of the word? or, is management

20

a profession like the professions of law and medicine? According to
McFarland a profession possess the following characteristics : (i) a body of
principles, techniques, skills, and specialized knowledge; (ii) formalized
methods of acquiring training and experience; (iii) the establishment of a
representative organization with professionalisation as its goal; (iv) the
formation of ethical codes for the guidance of conduct; and (v) the charging
of fees based on the nature of services
...
It is
a profession in the sense that there is a systematized body of management,
and it is distinct, identifiable discipline
...
But unlike medicine or law, a management degree
is not a prerequisite to become a manager
...
It seems
reasonable to assume that at no time in the near future, the possession of a
management degree will be a requirement for employment as a career
manager
...
We have a number
of institutes of management and university departments of management
which provide formal education in this field
...
A number of
organizations such as the Administrative Staff College of India, the Indian
Institutes of Management, Management Development Institute, the All
India Management Association, and the university departments of
management offer a variety of short-term management training
programmes
...
There are
a number of representative organizations of management practitioners
almost in all countries such as the All India Management Association in

21

India, the American Management Association in U
...
A
...
However,
none of them have professionalisation of management as its goal
...

There is no ethical code of conduct for managers as for doctors and
lawyers
...
In fact, bribing public officials to gain
favours, sabotaging trade unions, manipulating prices and markets are by
no means uncommon management practices
...

However little regard is paid to the elevation of service over the desire for
monetary compensation is evidenced by switching of jobs by managers
...

It may be concluded from the above discussion that management is a
science, an art as well as a profession
...

1
...
ADMINISTRATION
The use of two terms management and administration has been a
controversial issue in the management literature
...
Those who
held management and administration distinct include Oliver Sheldon,
Florence and Tead, Spriegel and Lansburg, etc
...
But some English
authors like Brech are of the opinion that management is a wider term

22

including administration
...


Thus,

administration is a higher level function
...


(iii)

There is no distinction between the terms management and
administration and they are used interchangeably
...
According to him, "Administration is concerned with
the determination of corporate policy, the coordination of finance,
production and distribution, the settlement of the compass of the
organization and the ultimate control of the executive
...


Administration

determines

the

organization;

management uses it
...

Administration refers to policy-making whereas management refers to
execution of policies laid down by administration
...
Administration is the phase of business
enterprise that concerns itself with the overall determination of institutional
objectives and the policies unnecessary to be followed in achieving those
objectives
...
Thus,

23

administration involves broad policy-making and management involves the
execution of policies laid down by the administration as shown in Table 1
...
Management
Basis

Administration is concerned with

Management means getting
the work done through and
with others
...
It is a thinking function
...
It is a doing function
...


Meaning

and policies of the organization
2
...


Administration

be done and when it is to be done

implement the administrative
decisions
...


Administration refers to higher levels

Management is relevant at lower

of management

(ii)

Status

levels in the organization
...
According to
Brech, "Management is a social process entailing responsibility for the
effective and economical planning and regulation of the operation of an
enterprise in fulfillment of a given purpose or task
...
Thus, Brech conceives administration as a part of
management
...
According
to them administration is a part of management
...


24

(iii)

Management and Administration are Synonymous: The third viewpoint
is that there is no distinction between the terms 'management' and
'administration'
...

The term management is used for higher executive functions like
determination of policies, planning, organizing, directing and controlling in
the business circles, while the term administration is used for the same set
of functions in the Government circles
...

It seems from the above concepts of administration and management that
administration is the process of determination of objectives, laying down
plans and policies, and ensuring that achievements are in conformity with
the objectives
...
This distinction seems to be too simplistic and superficial
...
On the other hand, we cannot say that
managers who are responsible for the execution of plans and formulation of
plans and policies, etc
...
In fact all
manages, whether the chief executive or the first line supervisor, are in
some way or the other involved in the performance of all the managerial
functions
...

1
...
Levels of
management refer to a line of demarcation between various managerial
positions in an enterprise
...
We generally come across
two broad levels of management, viz
...
e
...
e
...
Administrative management is concerned with
"thinking" functions such as laying down policy, planning and setting up of
standards
...

But in actual practice, it is difficult to draw any clear cut demarcation
between

thinking

function

and

doing

function
...
For instance, wage and salary director
of a company may assist in fixing wages and salary structure as a member
of the Board of Directors, but as head of wages and salary department, his
job is to see that the decisions are implemented
...
Considering the hierarchy of authority and responsibility,
one can identify three levels of management namely:
(i)

Top management of a company consists of owners/shareholders, Board of
Directors, its Chairman, Managing Director, or the Chief Executive, or the
General Manager or Executive Committee having key officers
...
Purchase Manager, Production Manager, Marketing
Manager, Financial controller, etc
...


(iii)

Lower level or operative management of a company consists of
Superintendents, Foremen, Supervisors, etc
...


Top management : Top management is the ultimate source of authority
and it lays down goals, policies and plans for the enterprise
...
It is accountable to the owners
of the business of the overall management
...
The important functions of top management include :
(a)

To establish the objectives or goals of the enterprise
...


(c)

To set up an organizational frame work to conduct the operations as
per plans
...


(e)
(f)
2
...

To provide overall leadership to the enterprise
...
It serves as an essential
link between the top management and the lower level or operative
management
...
They devote more time on the
organization and motivation functions of management
...
Without them the top
27

management's plans and ambitious expectations will not be fruitfully
realized
...


(b)

To prepare the organizational set up in their own departments for
fulfilling the objectives implied in various business policies
...


(d)

To assign activities, duties and responsibilities for timely
implementation of the plans
...


(f)

To motivate personnel to attain higher productivity and to reward
them properly
...


(h)

To collect reports and information on performance in their
departments
...


3
...
It consists of foreman, supervisors, sales officers,
accounts officers and so on
...
Their authority and responsibility is limited
...


28

They interpret and divide the plans of the management into short-range
operating plans
...

They have to get the work done through the workers
...
They are more concerned with direction and control
functions of management
...

1
...
Hence, it
is manifested in an individual's performance
...

It can be developed through practice and through relating learning to one's
own personal experience and background
...
These are conceptual skill, human relations skill and technical skill
...
While both conceptual and technical skills are needed for
good decision-making, human skill in necessary for a good leader
...
It short, it is his ability to conceptualize the
environment, the organization, and his own job, so that he can set
appropriate goals for his organization, for himself and for his team
...

The technical skill is the manager's understanding of the nature of job that
people under him have to perform
...
In a production department
this would mean an understanding of the technicalities of the process of
production
...
In higher functional positions, such as the position of a marketing
manager or production manager, the conceptual component, related to these
functional areas becomes more important and the technical component
becomes less important
...
This skill develops in the manager sufficient ability (a) to recognize
the feelings and sentiments of others; (b) to judge the possible actions to,
and outcomes of various courses of action he may undertake; and (c) to
examine his own concepts and values which may enable him to develop
more useful attitudes about himself
...

Table-2 gives an idea about the required change in the skill-mix of a
manager with the change in his level
...
That is why, people at the top shift with great ease
from one industry to another without an apparent fall in their efficiency
...

Tables-2 : Skill-mix of different management levels
Top Management

Conceptual Skills

Middle Management

Human Relations Skills

Low Management

Technical Skills

30

1
...

Any person who performs these functions is a manager
...
The difference between the functions of top, middle and
lowest level management is that of degree
...

Every manager is concerned with ideas, things and people
...
In this process, ideas, things and people are vital inputs which are to
be transformed into output consistent with the goals
...
It has three
connotations
...

Second, management of ideas refers to the planning phase of management
process
...

Creativity refers to generation of new ideas, and innovation refers to
transforming ideas into viable relations and utilities
...

Management of things (non-human resources) deal with the design of
production system, and acquisition, allocation and conversion of physical
resources to achieve certain goals
...
Every manager has to direct his subordinates
to put the organizational plans into practice
...
His efforts are directed towards obtaining information
and evaluating progress towards objectives set by him and then taking
corrective action
...
Though it is his duty to handle all the productive resources, but
human factor is more important
...
The greatest problem before any manager is how to manage the
personnel to get the best possible results
...

Peter F
...
Every job should be
designed as an integrated set of operations
...
It is the duty of every manager to educate, train and develop
people below him so that they may use their potentialities and abilities to
perform the work allotted to them
...
A manager must create a climate which brings in and
maintains satisfaction and discipline among the people
...

Recently, it has been questioned whether planning, organizing, directing
and controlling provides an adequate description of the management
process
...

He suggested instead that the manager should be regarded as playing some
ten different roles, in no particular order
...


Interpersonal Roles
Figurehead : In this role, every manager has to perform some duties
of a ceremonial nature, such as greeting the touring dignitaries,
attending the wedding of an employee, taking an important customer
to lunch and so on
...
He must also try to reconcile their individual needs
with the goals of the organization
...


2
...

Disseminator: In the role of a disseminator, the manager passes
some of his privileged information directly to his subordinates who
would otherwise have no access to it
...
Thus, he advises
shareholders about financial performance, assures consumer groups
that the organization is fulfilling its social responsibilities and
satisfies government that the origination is abiding by the law
...


Decisional Roles
Entrepreneur : In this role, the manager constantly looks out for
new ideas and seeks to improve his unit by adapting it to changing
conditions in the environment
...
He must seek solutions of various unanticipated
problems – a strike may loom large a major customer may go
bankrupt; a supplier may renege on his contract, and so on
...
He must decide who
will get what
...
Thus, the chairman of a company may negotiate with
the union leaders a new strike issue, the foreman may negotiate with
the workers a grievance problem, and so on
...
They also work together to provide one another with
the accurate information needed to perform tasks
...


Characteristics of Professional Managers

34

1
...
They
are usually evaluated on how well they arrange for these tasks to the
accomplished
...
The success or failure of subordinates is a direct
reflection of managers' success or failure
...
The difference is that managers are held
responsible, or accountable, not only for their own work, but also for
the work of subordinates
...


Managers balance competing goals and set priorities : At any
given time, the manager faces a number of organizational goals,
problems and needs all of which compete for the manager's time
and resources (both human and material)
...
Many managers, for example, arrange each
day's tasks in order of priority the most important things are done
right away, while the less important tasks are looked at later
...

A manager must also decide who is to perform a particular task and
must assign work to an appropriate person
...
Sometimes individual ability is the decisive factor,
and a task is assigned to the person most able to accomplish it
...
And, at times, limited human or other resources dictate
decisions for making work assignments
...


35

3
...
But even more important, a manager must
be a conceptual thinker, able to view the entire task in the abstract
and relate it to other tasks
...
But it is
essential if the manager is to work towards the goals of the
organization as a whole as well as towards the goals of an individual
unit
...


Managers are mediators : Organizations are made up of people,
and people disagree or quarrel quite often
...
Such occurrences hinder work towards the
goals of the unit or organization; therefore, managers must at times
take on the role of mediator and iron out disputes before they get out
of hand
...
Managers who are
careless in their handling conflicts may later on find that they have
only made matters worse
...


Managers make difficult decisions : No organization runs
smoothly all the time
...
Managers are expected to
come up with solutions to difficult problems and to follow through
on their decisions even when doing so may be unpopular
...
The ability to recognize the appropriate role to
be played and to change roles readily is a mark of an effective manager
...
10

PRINCIPLES OF MANAGEMENT
A body of principles of management has been developed by Henri Fayol,
the father of modern management
...
Although, he did not develop an
integrated theory of management, his principles are surprisingly in tune
with contemporary thinking in management theory
...
This earned him the title of
"Universality"
...

Fayol held that activities of an industrial enterprise can be grouped in six
categories : (i) technical (production), (ii) commercial (buying, selling and
exchange), (iii) financial (search for and optimum use of capital), (iv)
security (protection of property and persons), (v) accounting (including
statistics); and (vi) managerial
...
He developed the following principles underlying
management of all kinds of organizations :
1
...
Managers who exercise
authority over others should assume responsibility for decisions as
well as for results
...
Authority is official as well as personal
...

A corollary of the principle that no manager should be given
authority unless he assumes responsibility is that those who have
responsibility should also have commensurate authority in order to
enable them to initiate action on others and command resources
required for the performance of their functions
...

2
...
Fayol
observed that if this principle is violated authority will be
undermined, discipline will be jeopardy, order will be disturbed and
stability will be threatened
...
Therefore, in every organization, each subordinate should
have one superior whose command he has to obey
...


Unity of Direction : This means that all managerial and operational
activities which relate a distinct group with the same objective
should be directed by "one head and one plan
...
It, however, does not mean that all
decisions should be made at the top
...
For example, all
marketing activities like product strategy and policy, advertising and
sales promotion, distribution channel policy, product pricing policy,
marketing research, etc
...
This is essential for the "unity of
action, coordination of strength and focusing of effort"
...

4
...
The line of authority is the route followed via every link in the
chain by all communication which start from or go to the ultimate
authority
...


Division of Work : This is the principle of specialization which,
according to Fayol, applies to all kinds of work, managerial as well
as technical
...

Therefore, the work of every person in the organization should be
limited as far as possible to the performance of a single leading
function
...


Discipline : Discipline is a sine qua non for the proper functioning
of an organization
...
According to Fayol,
discipline can best be maintained by : (i) having good superiors at all
levels; (ii) agreements (made either with the individual employees or
with a union as the case may be) that are as clear and fair as
possible; and (iii) penalties judiciously imposed
...


Subordination of Individual Interest to General Interest : The
interest of the organization is above the interests of the individual
and the group
...
It will involve an attitude and a spirit of
sacrificing their own personal interests whenever it becomes
apparent that such personal interests are in conflict with
organizational interests
...


8
...

Differentials in remuneration should be based on job differentials, in
terms of qualities of the employee, application, responsibility,
working conditions and difficulty of the job
...


9
...
He, however, did
not contemplate concentration of all decision making authority in the
top management
...
In a small firm with a
limited number of employees, the owner-manager can give orders
directly to everyone
...
Here one generally comes
across a situation of decentralisation with centralised control
...


40

10
...
This kind of order,
depends on precise knowledge of human requirements and resources
of the concern and a constant balance between these requirements
and resources
...


Equity : It means that subordinates should be treated with justice
and kindliness
...
It is, therefore the duty of the chief
executive to instill a sense of equity throughout all levels of scalar
chain
...


Stability of Tenure of Personnel : The managerial policies should
provide a sense of reasonable job security
...
He points out that it takes
time for an employee to learn his job; if they quit or are discharged
within a short time, the learning time has been wasted
...
However, "a mediorce
manager who stays is infinitely preferable to outstanding managers
who come and go"
...


Initiative : It focuses on the ability, attitude and resourcefulness to
act without prompting from others
...
Since it provides a sense of great satisfaction to
intelligent employees, managers should sacrifice their personal
vanity in order to encourage their subordinates to show initiative
...


41

14
...
It is one of the chief characteristics of
organized activity that a number of people work together in close
coopearation for the achievement of common goals
...
Fayol warns against two enemies of esprit
de corps, viz
...
It may work to the benefit of the enterprise to divide
its enemy but it will surely be dangerous to divide one's own
workers
...
Overreliance on written communication
also tends to disrupt team spirit
...


The other important principles of management as developed by pioneer
thinkers on the subject are :
(a)

Separation of planning and execution of business operations
...


(c)

Adoption of technological changes
...


(e)

Fuller utilization of the operational capacity and emphasis on higher
productivity
...


(g)

Evaluation of results according to criteria of standard levels of
performance
...


1
...
Management is essential wherever group efforts are
required to be directed towards achievement of common goals
...
It is said that, anything minus management amounts to
nothing
...
"
The significance of management in business activities is relatively greater
...
It is now widely recognized that
management is an important factor of growth of any country
...


Achievements of group goals : Management makes group efforts
more effective
...
Management creates team work
and team spirit in an organization by developing a sound
organization structure
...

2
...
The
available resources of production are put to use in such a way that all
sort of wastage and inefficiencies are reduced to a minimum
...
Managers create and maintain an environment
conducive to highest efficiency and performance
...


3
...
Only those concerns can survive in the market, which
can produce goods of better quality at the minimum cost
...
These techniques are production control,
budgetary control, cost control, financial control, material control,
etc
...


Change and growth : A business enterprise operates in a constantly
changing environment
...
An
enterprise has to change and adjust itself in the everchanging
environment
...
Many of the giant business corporations of today had a
44

humble beginning and grew continuously through effective
management
...


Efficient and smooth running of business : Management ensures
efficient and smooth running of business, through better planning,
sound organization and effective control of the various factors of
production
...


Higher profits : Profits can be enhanced in any enterprise either by
increasing the sales revenue or reducing costs
...
Management by
decreasing costs increases its profits and thus provides opportunities
for future growth and development
...


Provide innovation : Management gives new ideas, imagination
and visions to an enterprise
...


Social benefits : Management is useful not only to the business
firms but to the society as a whole
...
By establishing cordial relations between different
social groups, management promotes peace and prosperity in
society
...


Useful for developing countries : Management has to play a more
important role in developing countries, like India
...
It has been
rightly observed, "There are no under-developed countries
...


45

10
...
This helps in the development of spirit of cooperation
and mutual understanding, and a congenial environment is provided
in the organization
...
12

SUMMARY
Management is the force that unifies various resources and is the process of
bringing them together and coordinating them to help accomplish
organization goal
...
It is an
inexact science
...
Management does not yet completely fulfill all the
criteria of a profession
...
Managers at different levels of the organization require and use
different types of skills
...
Human skills
are important at all managerial levels
...
13

SELF ASSESSMENT QUESTIONS
1
...
Discuss
...


"Management is both a science and an art"
...


3
...
How does it differ from Administration?

46

4
...


5
...


6
...


Discuss basic principles of Management along with their
significance
...


Discuss

and

illustrate

the

meaning,

definition

and

characteristics of management in modern organizations
...


What

is

Management?

Explain

the

principles

of

management with suitable illustrations
...
14

FURTHER READINGS
1

Kootnz & O'Donnell, Principles of Management
...
S
...


3
...
Sharma, Principles of Business Management
...


Sherlerkar and Sherlerkar, Principles of Management

5
...
P
...
Richa Verma

Lesson No: 02

Vetter: Dr
...


Lesson Structure
2
...
2

Forces Backing Management Thoughts

2
...
4

Major Contributions of Leading Management Thinkers

2
...
6

Summary

2
...
8

Suggested Readings

48

2
...

Management has been practiced in some form or the other since the dawn of
civilization
...
The Egyptian pyramids, the Chinese
Civil Service, The Roman Catholic Church, the military organizations and the Great
Wall of China, for instance, are tangible evidence that projects of tremendous scope,
employing tens of thousands of people, were undertaken well before the modern
times
...
The construction of a single
pyramid occupied more than 1,00,000 workers for 20 years
...
He had to plan what was to be done, organize people and material
to do it, lead and direct the workers, and impose some controls to ensure that
everything was done as planned
...
However, two pre-twentieth-century events played
significant roles in promoting the study of management
...

1) Adam Smith’s name is typically cited in field of economics for his contribution to
classical economic doctrine, but his contribution in Wealth of Nations (1776)
outlined the economic advantage that organization and society can gain from the
division of labor
...
Smith
noted that 10 individuals, each doing a specialized task, could produce about 4800
pins a day
...
Smith
concluded that division of labor increased productivity by increasing each
worker’s skill and dexterity, by saving time lost in changing tasks, and by creating
labor-saving inventions and machinery
...
The major contribution of the industrial
revolution was the substitution of machine power for human power, which in turn,
made it more economical to manufacture goods in factories
...

Now, a formal theory to guide managers in running their organization was
needed
...
The periods of evaluation of management
thoughts are highlighted in the Table-2
...
1 EVOLUTION OF MANAGEMENT THOUGHTS
MANAGEMENT THOUGHTS
PERIOD
th
Upto 19 century
• Early Contributions
1900-1930
• Scientific Management
1916-1940
• Administrative/operational management
1930-1950
• Human relations approach
1940-1950
• Social systems approach
1945-1965
• Decision theory approach
1950-1960
• Management science approach
1950-1970
• Human behavior approach
1960s onwards
• Systems approach
1970s onwards
• Contingency approach
Thus, management has been recognized and identified as a distinctive branch of
academic discipline in the twentieth century
...
2 FORCES BACKING MANAGEMENT THOUGHTS
Management thoughts have took birth/evolved under the anxiety of political, social
and economic forces
...
Political Forces: Management thoughts have been shaped by the political forces
manifested through the administration of political institutions and government
agencies
...
Legal
processes which emanate from political pressures, such as the Union Carbide
disaster in Bhopal, have a tremendous impact on management thinking and
practice
...

2
...
The needs, education, religion and norms of human behaviour dictate the
relations among people, which form social contracts
...
The same happens between corporations and
their constituents- labour, investors, creditors, suppliers and consumers
...
It gives the society a sense of order
and trust in which human affairs can be conducted in relative security and
confidence
...
Economic Forces: These forces determine the scarcity, transformation and
distribution of goods and services in a society
...

This competition over scarce resources allocates them to their most profitable use
and is the motivator of technological innovation by which resource availability
can be maximized
...
3 A FRAMEWORK FOR THE MANAGEMENT THOUGHTS
In the past, the business houses, particularly corporates, did not have a high academic
stature and position in the society and it certainly compelled the scholars inculcate the
academic interest in the study of business management so that its real fruits could be
realized for the stakeholders under reference
...
Moreover,
the businessmen were very much afraid that through the study of management their
tricks and secrets would be exposed
...
The evolution of management thoughts might be better
approached through the framework as depicted in Figure-2
...
In the beginning there
were two classical schools of management thoughts
...
Later on, behavioural school and
the quantitative school came into existence
...

CLASSICAL SCHOOL
BEHAVIOURAL
SCHOOL

Assumption:
People are rational

QUANTITATIVE
SCHOOL

Assumption:
People are social and
self-actualizing
SCIENTIFIC MANAGEMENT
SCHOOL
Babbage
Taylor
The Gilbreths
Gantt

ORGANIZATIONAL
SCHOOL
Fayol
Weber
Mooney and Reilly
Barnard
Simon

Owen
Munsterberg
Mayo
Follett
Maslow
McGregor
Argyris
Dale Carnegie

Assumption:
People can use applied
mathematics
Management Science
Operations Management
Management Information
Systems

INTEGRATION SCHOOL
Assumption:
There us no one best way to
manage
Contingency Theory
System Theory
Process Theory

Figure- 2
...
These are- Urwick and Brech,
Boulton and Watt, Robert Owen, Charles Babbage, Oliver Sheldon, Lyndall Urwick,
Herbert A
...
S
...
Gantt, Frank
Gilbreth, Harrington Emerson, H
...
Kendall, C
...
Barth, F
...
Halsey, Henri
Dennison, Mooney and Reiley, Chester I
...
J
...
N
...


2
...


Classical School: The classical development of management thoughts can be
divided into- the scientific management, the organizational management, the
behavioural management and the quantitative management
...
These schools of management thoughts are explained as below:

(A) Scientific Management School: Scientific management means application of the
scientific methods to the problem of management
...
The followings individuals contribute in development of
scientific management school of management thoughts
...
They are:
I
...
He concentrated on developing the efficiencies of
labour production
...
He wrote nine books and over 70 papers on mathematics,
science and philosophy
...
His best known book is ‘On the Economy of Machinary and
Manufacturers’ published in 1832
...
He perceived that methods of science and mathematics could
be applied to the operations of factories
...


•

He recommended profit-sharing programs in an effort to foster
harmonious management-labour relations
...


II
...
Taylor (1856-1915): He is known as ‘father of scientific
management’
...

TABLE-2
...
Develop a science for each job with
standardized work implements and
efficient methods for all to follow
...
Scientifically select workers with
skills and abilities that match each
job, and train them in the most
efficient ways to accomplish tasks
...
Ensure
cooperation
through
incentives and provide the work
environment that reinforces optimal
work results in a scientific manner
...
Divide responsibility for managing
and for working, while supporting
individuals in work groups for what
they do best
...


to

Use job descriptions to select employees,
set up formal training systems, and
establish optimal work standards to follow
...

Promote leaders who guide, not do, the
work; create a sense of responsibility for
group results by panning tasks and helping
workers to achieve those results
...

Source: Holt, 1990, p-38
As an engineer and consultant, Taylor observed and reported on what he found to
be inexcusably inefficient work practices, especially in the steel industry
...

Therefore, he set out to correct the situation by applying scientific methods
...
Taylor gave the following principles of
scientific management
...
2:
Taylor concluded that scientific management involves a completer mental
revolution on the part of both workers and management, without this mental
revolution scientific management does not exist
...
Henry Gantt (1861-1919): He was a consulting engineer who specialized in
control system for shop scheduling
...
He developed the Gantt Chart (Figure-2
...
The chart represents each planned stage of work, showing both
scheduled times and actual times
...
Gantt devised an incentive
system that gave workers a bonus for completing their job in less time than the
allowed standards
...
In doing so, Gantt expanded the
scope of scientific management to encompass the work of managers as well as
that of operatives
...
2 GANTT CHART FOR BOOK BINDERY
IV
...
Along with his wife Lillian, a psychologist, he studied work
arrangements to eliminate wasteful hand-body-motion
...
Lillian is known as ‘first lady of
management’ and devoted most of her research to the human side of management
...

The man and wife team developed a classification scheme for the various motions
(17 basic hand motions) used to complete a job referring a motion as a therblig
...
This scheme allowed him to more precisely analyze the exact elements
of worker’s hand movements
...
By eliminating inappropriate motions and focusing on appropriate
motion, the Gilbreth methodology reduces work fatigue and improves workers
performance
...
They devised a micro chronometer that recorded time to 1/2,000 of a
second, placed it in the field of the study being photographed and thus determined
how long a worker spent enacting each motion
...
Gilbreths also experimented with
the design and use of the proper tools and equipments for optimizing work
performance
...
The contributors of organizational schools are:
I

Henri Fayol (1841-1925): was a Frenchman with considerable executive
experience who focused his research on the things that managers do
...
Taylor was a scientist and he was managing
director of a large French coal-mining firm
...
His was a functional
approach because it defined the functions that must be performed by managers
...
According to Fayol,
all managerial tasks could be classified into one of the following six groups:
•

Technical (related to production);

•

Commercial (buying, selling and exchange);

•

Financial (search for capital and its optimum use);

57

•

Security (protection for property and person);

•

Accounting (recording and taking stock of costs, profits, and liabilities,
keeping balance sheets, and compiling statistics);

•

Managerial (planning, organizing, commanding, coordinating and
control);

He pointed out that these activities exist in every organization
...


•

Organizing meant mobilizing the employees and other resources of the
organization in accordance with the plan
...


•

Coordinating meant achieving harmony among the various activities
...


II Max Weber (1864-1920): He was a German sociologist
...
He described an
ideal type of organization that he called a bureaucracy, a form of organization
characterized by division of labour, a clearly defined hierarchy, detailed rules
and regulations, and impersonal relationships
...
He used it as a basis for theorizing
about work and the way that work could be done in large groups
...

The features of Weber’s ideal bureaucratic structure are outlined in Figure2
...
3 WEBER’S IDEAL BUREAUCRACY
The Elements of Bureaucracy are:
•

Labour is divided with clear definition of authority and responsibility that are
legitimatized as official duties
...


•

All personnel are selected and promoted based on technical qualifications,
which are assessed by examination or according to training and experience
...
Recordkeeping
provides organizational memory and continuity over time
...


•

Management is subject to rules and procedures that will insure reliable,
predictable behaviour
...


59

III James D
...
Reilly: James Mooney was a General Motors
executive who teamed-up with historian Alan Reilly to expose the true
principles of an organization in their books
...
They contended that an efficient
organization should be based on certain formal principles and premises
...
They defined
coordination as the orderly arrangement of work group effort that provides
unity of action in pursuit of common goals
...


•

The Functional Principle: The functional distinction is those unique
differences in organizational operations that the manager must perceive in
order to effectively integrate and coordinate all the functions of the
organization
...

IV Chester Barnard (1886-1961): Chester Barnard, president of Bell Telephone
Company, developed theories about the functions of the manager as
determined by constant interaction with the environment
...
He expressed

60

his view in his book The Function of the Executive
...
Barnard believes that
organizations were made up of people with interacting social relationships
...

He saw the effectiveness of an organization as being dependent on its ability
to achieve cooperative efforts from a number of employees in a total,
integrated system
...
By recognizing the organization’s dependence on
investors, suppliers, customers, and other external stakeholders, Barnard
introduced the idea that managers had to examine the external environment
and then adjust the organization to maintain a state of equilibrium
...
These principles are:
•

Channels of communication should be definitely known
...


•

The line of communication must be as direct or short as possible
...


•

Competence of the persons serving at communication centers that is
officers, supervisory heads, must be adequate
...


V Herbert A
...
He started his career in local
government
...
Due to their
ambiguous and contradictory nature, he criticized these principles as ‘myths’
...
But he is best known for his work in the field of decision making and

61

administrative behaviour
...
Thus, the manager is an administrative man, not an economic
man, who makes decision amid bounded rationality and selects not the
maximizing alternative
...
3:

TABLE-2
...
Economic man maximizes- selects
the best alternative from among all
those available to him
...
Economic man deals with the real
world in all its complexity
...

3
...

4
...

(C)

Administrative Man-Bounded Rationality
Administrative man satisfies- looks for a
course of action that is satisfactory or good
enough
...

Knowledge of consequences is always
fragmentary
...

In actual behaviour only a very few of all
possible alternatives ever come to mind
...
The major contributors were Figure-2
...
Robert Owen (1771-1858) was a British industrialist who was the first
to speak out on behalf of the organization’s human resources
...
He believed that
workers’ performance was influenced by the total environment in which
they worked
...
Owen worked for the building up of a spirit of
co-operation between the workers and managers
...
g
...
He suggested that proper treatment of workers pays
dividends and is an essential part of every manager’s job
...

- Proposed more people-oriented ideas than
scientific management followers
- Thought organizations should be based on
group ethic

Figure-2
...
Hugo Munsterberg (1863-1916): developed a psychology laboratory at
Harvard University where he studied the application of psychology to
the organizational settings
...
Thus, his
concern for the human side of business led his peers to consider him to
be father of industrial psychology
...
Munsterberg suggested the use of
psychological tests to improve employee selection, the value of learning
theory in the development of training methods, and the study of human
behaviour to determine what techniques are most effective for
motivating workers
...
George Elton Mayo (1880-1949): Mayo was a professor at the Harvard
Business School
...
Originally the
research was an application of Taylor’s management science techniques
designed to improve production efficiency
...
Mayo’s first study involved the manipulation of illumination
for one group of workers and comparing their output with that of another
group whose illumination was held constant
...
Considerate supervision, giving autonomy to the
workers, allowing the formation of small cohesive groups of workers,
creating conditions which encourage and support the growth of these
groups and the cooperation between workers and management lead to
increase in productivity
...
Mayo and his associates concluded
that a new social setting created by their tests had accounted for the
increase in productivity
...
Hawthorne study was an
important landmark in studying the behaviour of workers and his

64

relationship to the job, his fellow workers and organization
...

Thus, Hawthorne studies were a milestone in establishing the framework
for further studies into the field of organizational behaviour
...
Mary Parker Follett (1868-1933): She was a social philosopher whose
ideas had clear implications for management practice
...
She believed
that groups were the mechanisms through which people could combine
their differing talents for the greater good of the organization, which she
defined as the community in which managers and subordinates could
work in harmony
...
She was convicted that the
traditional and artificial distinction between the managers who give the
orders and the workers who take the orders obscured their natural
relationships
...
Thus, her humanistic ideas influenced the way we look at
motivation, leadership, power and authority
...
In the Follett Holistic Model of
Control, Follett captured the interactive, integrative nature of selfcontrol groups being influenced by the forces within the work
environment
...
Abraham Maslow: He was a humanistic psychologist, proposed a
hierarchy of five needs: physiological, safety, social, esteem and selfactualization
...
A need can
be described as a physiological or psychological deficiency that a person
is motivated to satisfy
...
5
...

The moment the first need of man is satisfied he starts thinking of the
second need, and then follows his worry about the third need and the
sequence continues till all the needs are satisfied
...

•

The deficit principle holds that a relatively well-satisfied need is
not a strong motivator of behaviour
...


1) Physiological Needs: This category includes those needs which a
man needs to satisfy first of all in order to remain alive
...

2) Safety Needs: After having satisfied the physical needs a man
thinks of his safety
...
Physical safety means saving him from
accidents, diseases and other unforeseen situations
...
Psychological safety means maintaining his prestige
...
It is, therefore, necessary that he should have friends
and relatives with whom he can share his joys and sorrows
...


Figure-2
...
It
means everybody wants to get a high status which may increase his
power and authority
...
It means that a man should become what he is
capable of
...

VI
...
McGregor argued
that managers should shift their traditional views of man and work
(which he termed Theory X) to a new humane views of man and work
(which he termed Theory Y)
...
Theory X assumes that
people have little ambition, dislike work, want to avoid responsibility, and need to
be closely supervised to work effectively
...
Theory Y offers a positive
view, assuming that people can exercise self-direction, accept responsibility and
consider work to be as natural as rest of play
...
Table-2
...
4: Theory X and Y Theory
Traditional Theory ‘X’
1) Man by nature is sluggish and
shirker
...

3) Under this people want to be
directed, meaning thereby that
they want somebody to tell them
to work and only they will work
...


Modern Theory ‘Y’
Man wants to work provided the conditions are
favourable
...

It is thought that the employee has the quality
of self-direction and they do not feel the
necessity of being directed by somebody else
...

5) Strict control, threat and If proper environment is provided a person
punishment are used in order to himself performs his work laboriously
...

VII
...
He conducts research into
personality and organizational life factors and developed the theory that
both traditional management practices and organizational structure are
inconsistent with the growth and development of the matured
personality
...


(D)

Quantitative School: With the revolutionary change in the application of
information technology came the quantitative school of thoughts, which
finds its foundation in decision theory, the application of statistics in
decision making and the evolution of mathematical/econometric models
that are nurtured by computer technology
...
The features of quantitative management school were:
•

Primary Focus on Decision Making: The end result of problem
analysis will include direct implications for managerial action
...


•

Use of Formal Mathematical Models: Possible solutions to problems
are specified as mathematical equations and then analyzed according
to mathematical rules and formulas
...


The quantitative approach has found favor through the following
applications:
I
...

II
...

The operational management techniques utilizes following basic
quantitative techniques:
•

Forecasting is the process by which future predictions are
formulated through mathematical computations

•

Inventory control entails the control of costly inventories through
mathematical formulas that determine the proper level of

69

inventory to be maintained as well as the economic quantities to
be ordered
...


•

Networks are complex models, such as Program Evaluation and
Review Techniques (PERT) and the Critical Path Methods
(CPM) for analyzing, planning and controlling complex
operations
...


III
...
The total MIS network is more than a
machine; it contains human resources, hardware, software and intricate
processes
...
That is why the ideal MIS provides
accurate, condensed informational analysis to the appropriate manager in
a timely manner
...


Integration School
In recent years, an attempt has been made to integrate the classical theories with
the modern behavioural and quantitative theories into an overall framework that
use the best of each approach
...

Two such integrative developments are explained as follows:
I
...
The contingency view of management is highlighted in Figure-2
...
Along with this organizational understanding
70

comes the development of unique behaviours that have proven successful in
particular situations
...

Figure-2
...

Managers devise and apply similar responses
to common types of problems

“There is one
best way”
Universal View

II

3
...


Contemporary School
The contemporary school of management thoughts outlines the framework for
studying the more recent trends in management practices, such as the impact of
global business, Theory Z concepts, McKinsey 7-S approach, the search for
excellence, and the concern for quality and productivity
...
In today’s environment, success in the long
run demands that the manager think globally, even if he can still limit his
actions to local market
...
The Type Z
firm features long-term employment with a moderately specialized career
path and slow evaluation and promotion
...

III

Mckinsey 7-S: The 7-S factors are as follows:
•

Strategy: The plans that determine the allocation of an
organization’s scarce resources and commit the organization to a
specified course of action
...


•

Systems: The organizational processes and proceduralized
reports and routines
...


•

Style: The manner in which manager behave in pursuit of
organizational goals
...


•

Super ordinate Goals (shared values): The significant meanings
or guiding concepts that an organization instill in its members
...


•

Successful firms make it a point to know their customers and
their needs
...


•

Productivity through people is based on trust
...


•

A firm must always deal with strength
...


•

A firm can decentralize many decisions while retaining tight
controls, usually through the function of finance
...
This requires a dedicated and skilled work
force that places utmost importance on quality workmanship
...
5 APPROACHES TO THE STUDY OF MANAGEMENT

A
...
The main features of this approach are as
follows:
•

It laid emphasis on division of labour and specialization, structure, scalar and
functional processes and span of control
...


•

Management is viewed as a systematic network (process) of interrelated
functions
...


•

It ignored the impact of external environment on the working of the
organization
...


•

On the basis of experience of practicing managers, principles are developed
...


•

Functions, principles and skills of management are considered universal
...


•

The integration of the organization is achieved through the authority and
control of the central mechanism
...


•

Formal education and training is emphasized for developing managerial skills
in would be managers
...


73

•

Emphasis is placed on economic efficiency and the formal organization
structure
...
Therefore, organization controls
economic incentives
...
All the three concentrated on the structure of organization for
greater efficiency
...


•

The observational method of case study is helpful in drawing common
principles out of past experience with some relevance for future
application

•

It focuses attention on what managers actually do
...


•

It provides scientific basis for management practice
...
Such knowledge
about management is effectively presented
...


•

It offers a mechanistic framework that undermines the role of human
factor
...


•

The environmental dynamics and their effect on management have been
discounted
...
e
...


74

•

There is positive danger in relying too much on past experiences because a
principle or technique found effective in the past may not fit a situation of
the future
...
They are not based on personal
experience
...


B
...
Because it brought about such an extraordinary mechanization of
industry, this revolution necessitated the development of new management
principles and practices
...
He defined
scientific management as,” Scientific management is concerned with knowing
exactly what you want men to do and then see in that they do it in the best and
cheapest way”
...
The planning should be
left to the supervisor and the workers should emphasize on operational
work
...
Thus, Taylor evolved
the concept of functional foremanship based on specialization of
functions
...
7:

75

Workshop Manager

Planning
I h

Route
Clerk

Instruction
card clerk

Production
I h

Time and
cost clerk

Disciplin
-arian

Speed
boss

Inspector

Maintenance
foreman

Gang
boss

Worker
Figure-2
...
The
best way of doing a job is one which requires the least movement
consequently less time and cost
...


•

Scientific Selection and Training of Workers: Taylor has suggested that the
workers should be selected on scientific basis taking into account their
education, work experience, aptitudes, physical strength etc
...
Thus, monetary (bonus, compensation) incentives
and non monetary (promotion, upgradation) incentives should be provided
to employees
...


76

Criticism of Scientific Management: The main grounds of criticism are given
below:
•

Taylor advocated the concept of functional foremanship to bring about
specialization in the organization
...


•

Workers were hired on a first-come, first-hired basis without due concern for
workers ability or skills
...
It
resulted in monotony of job, loss of initiative, over speeding workers, wage
reductions etc
...


•

Tasks were accomplished by general rule of thumb without standard times,
methods or motion
...


C
...
That’s why it is
called as ‘functional approach’ or ‘management process’ approach
...
He defined management in terms of
certain functions and then laid down fourteen principles of management which
according to him have universal applicability
...
In brief, Fayol’s views on management command
acceptability even today because they are much in tune with the requirements of
management in the present day world
...
It is accomplished through reduction in the number of
tasks to which attention and effort must be directed
...
Responsibility coexists with authority and is
its other side
...


•

Discipline: It implies respect for agreements designed to secure obedience
...
Discipline
requires clear and fair agreements, good supervision and judicious application of
penalties
...


•

Unity of Direction: Each group of activities having one objective should be
unified by having one plan and one head
...


•

Remuneration of Personnel: The amount of remuneration and the methods of
payment should be just and fair and should provide maximum possible
satisfaction to both employees and employers
...
Whether decision making is centralized (to management) or
decentralized (to subordinates) is a question of proper proportion
...


•

Scalar Chain: The scalar chain is the chain of superiors ranging from the ultimate
authority to the lowest ranks
...
However,
if following the chain creates delays, cross-communications can be followed if
agreed to by all parties and superiors are kept informed
...
Fayol emphasized both
material order and human order
...
In human order, there
should be an appointed place for everyone and everyone should be in his and her
appointed place
...
The application of
equity requires good sense, experience and humanistic attitude for soliciting
loyalty and devotion from subordinates
...
Management should
provide orderly personnel planning and ensure that replacements are available to
fill vacancies
...


•

Espirit de Corps: Union is strength, and it comes from the harmony and mutual
understanding of the personnel
...
Rather it should strive to maintain team spirit and co-operation
among employees so that they can work together as a team for the
accomplishment of common objectives
...
There is no single classification of
managerial functions acceptable to all the functional theorists
...


•

He did not pay adequate attention to workers
...

But many of the principles have failed to deliver the desired results in
certain situations
...


79

TABLE-2
...
Perspective
Shop floor level or the job of a
supervisor
2
...
Personality
Scientists
4
...
Major Contribution Science of industrial management

Fayol
Top Management
Improving overall administration
through general principles
Practitioner
Universal Truths developed from
personal experiences
A systematic
theory of
management

D
...
The
behavioural scientists criticized the early management approaches for their
insensitiveness to the human side of organization
...

Human relations school regards business organization as a psycho-social system
...
The basic
hypotheses of this study as well as the basic propositions of the Human Relation
Approach are the following:
•

The business organization is a social system
...


•

Employees prefer self-control and self-direction
...


•

The informal group should be recognized and officially supported
...
It revealed the importance f social and
psychological factors in determining worker’s productivity and satisfaction
...
However, this
approach also did not go without criticism
...
However,
the contribution of this approach lies in the fact that it advises managers to attach
importance to the human side of an organization
...
Social System Approach to Management
It is developed during social science era, is closely related to Human Relation
Approach
...
Chester I
...

According to this approach, an organization is essentially a cultural system
composed of people who work in cooperation
...


•

Relationships exist among the external as well as internal environment of
the organization
...


•

For effective management, efforts should be made for establishing
harmony between the goals of the organization and the various groups
therein
...
Decision Theory Approach to Management
Decision Theory is the product of management science era
...
e
...
Major contribution in this approach has
come from Simon
...
The major
emphasis of this approach is that decision making is the job of every manager
...

Therefore, the major problem of managing is to make rational decision
...
The members of the
organization are decision makers and problem solvers
...

The level and importance of organizational members are determined on the
basis of importance of decisions which they make
...
Thus, it covers the entire range of human activities in
organization as well as the macro conditions within which the organization
works
...
Management Science Approach to Management
Management science is an approach to management that applies mathematical
analysis to decision making
...
The primary focus of this
approach is the mathematical model
...
The
management science approach found its origins during World War II, when
highly technical military/production problems become far too complex for
traditional management methodology
...


82

•

Management problems can be described in terms of mathematical symbols
and data
...


•

This approach covers decision making, system analysis and some aspect of
human behaviour
...


H
...

Human Behavioural approach is devoid of any emotional content, which is the
core of Human Relation Approach
...
Here the attention is directed towards the human aspects of
management
...
The Behavioural approach
emphasizes synchronization of group goals within the broader framework of
management
...

Many sociologists, psychologists and social psychologists have shown
considerable interest in studying the problems of management
...
The social psychologist who have contributed to management
are McGregor, Argyris, Leavitt, Blake and Mouton, Sayles, Tannenbaum and his
associates, Bennis, Fielder, Stogdill and Herzberg
...
Douglas McGregor built on Maslow’s
work in explaining his ‘Theory X’ and ‘Theory Y’
...
To sum up, many conclusions of the
contributions made by behaviouralists can presented as follows:
•

People do not dislike work
...
In fact, job itself is a source of motivation and
satisfaction to employees
...
Therefore, there remains untapped potential
among them
...


•

The managers should create a healthy environment wherein all the
subordinates contribute to the best of their capacity
...


•

The manager should provide for self direction by subordinates and they must
be encouraged to participate fully in all important matters
...


•

Work satisfaction may improve as a by product of subordinates making use of
their potential
...
It recognizes the quality of leadership as a critical factor in
management success
...


Shortcomings of Behavioural Approach
Conclusions of behavioural approach discounts theory and stress radical
empiricism
...

It is group oriented and anti-individualistic
...
6 DISTINCTION BETWEEN HUMAN RELATIONS AND
BEHAVIOURAL APPROACH
Human Relations Approach
1
...

2
...

It was based on the Hawthorne
Experiments and so its scope is limited
...

It focused on group relationships
...
It is much more
systematic study of human behaviour in
organization
...
It was pioneered by Elton Mayo and its It was pioneered by Feith Davis, Rensis
associates
...

5
...

informal
organization
leadership
...

I
...
This approach
focuses attention on the fundamentals of analysis and decision making
...
The
Quantitative School quantifies the problem; generate solution, tests the solution
for their optimality and then it recommends
...
This approach is devoid of any personal bias, emotions,
sentiments, and intuitiveness
...
The job of a manager is to secure
the best solution out of a series of interrelated variables
...
It
consists of a set of functional equation which set out the quantitative
interrelationship of the variable
...


•

Organizations exist for the achievement of specific and measurable economic
goals
...


•

Decision making models should be evaluated in the light of set criteria like
cost reduction, return on investment, meeting time schedules etc
...


TABLE-2
...
It makes use of mathematical and
statistical techniques in management
...
It focuses on finding right answers to
managerial problems (decision making)
...

It focuses on improving efficiency of men
and machines (one best way of doing
things)
...
In this operation research is the main Time and motion studies are the main
techniques
techniques
...
It is developed by W
...
Churchman
...
W
...

5
...

Application of Experiments and research
...
System Approach to Management
In the 1960s, a new approach to management appeared which attempted to unify
the earlier school of thoughts
...
The system approach is based on the generalization that an
organization is a system and its components are inter-related and inter-dependent
...
On other words, a system may be defined as an
organized and purposeful entity of inter-related, inter-dependent and inter-acting

86

elements
...
The elements
of each system may themselves be sub systems
...
The basic postulates of
the system approach are as follows:
•

An organization is a system consisting of several subsystems
...


•

An organization is a dynamic system because it is responsive or sensitive to
its environment
...


FIGURE: 2
...
A static system, e
...
a petrol engine operates
repetitively completing the same cycle of functions without change or deviation
...

Biological systems, e
...
, plants, animals and human being are dynamic
...
Physical and mechanical systems are closed systems
...
e
...
An open system approach recognizes the dynamic interaction of
the system with its environment in Figure-2
...

They include human, financial, material and information resources
...
9 ELEMENTS OF OPEN SYSTEM
Feedback from the environment

Inputs from the
environment:
Material
inputs, human
inputs,
financial inputs
•

Transformation
process:
Technology,
operating systems,

Outputs into the
environment:
Products/service
s, profits/losses,
employee
behaviour, and

Transformation Process: The inputs are put through a transformation process
that applies technology, operating methodologies, administrative practices and
control techniques in order to produce the output
...
This process also has by-product outputs such as
worker behaviour, information, environmental pollution, community services
and so on
...


If the environment is satisfied with the output, business operations continue
...
This is how an open system responds to the forces of
change in the environment
...
Contingency or Situational Approach to Management
Another important approach which has arisen because of the inadequacy of the
Quantitative, Behavioural and System Approach to management is the
Contingency Approach
...

Other contributors include Joan Woodward, Tom Burns, G
...
Stalker, Paul
Lawrence, Jay Lorsch and James Thompson
...
They concluded that managers must keep
the functioning of an organization in harmony with the needs of its members and
the external forces
...
The basic theme of contingency approach is
that organizations have to cope with different situations in different ways
...

The management must keep the functioning of an organization in harmony with
the needs of its members and the external forces
...
Contingency views are ultimately directed towards
suggesting organizational designs and managerial actions most appropriate for
specific situations”
...
The main
features of contingency approach are:
•

Management is entirely situational
...


•

Management action is contingent on certain action outside the system or
subsystem as the case may be
...
To be effective management
policies and practices must respond to environmental changes
...


•

Management should understand that there is no one hard way to manage
...


A general framework for contingent management has been shown in the Figure-2
...

However, it is an abstract depiction of the contingency model
...
It may be operationalized as a ‘if then’ approach to management
...
In this model, a manager has to take four sequential steps:
•

Analyze and understand the situation,

•

Examine the applicability or validity of different principles and techniques
to the situation at hand,

•

Make the right choice by matching the techniques to the situations,

•

Implement the choice
...
10 A CONCEPTUAL MODEL OF CONTINGENCY APPROACH

90

TABLE- 2
...
CONTINGENCY APPROACH
Systems Approach
1
...

and dynamics
2
...


and

their

impact

on

organizational design and managerial style
...
It studies organization at an abstract and It is more down to earth and action
philosophical level
...


4
...


of principles

regardless

of

realities

of

individual situations
...
It stresses upon the synergetic effect of It is related to organization structure and
organizations and the external input
...


6
...


It is pragmatic and action oriented
...
6 SUMMARY
The study of organization and management is a must to understand the underlying
principles of management
...
Each of this approach discussed above is an extension of the previous
one
...
The new trends, developments and
challenges in the evolution of management thought and movement which will make
new demands on managers in India are listed below:
•
•

Growing intervention in trade, industry and commerce by the government
...

Greater consciousness and growth of organizations of consumers
...

Emerging growth of industry and consequent stiff competition from foreign
goods, growth of multinational corporations in the context of new liberalized
industrial policy
...

Utilization of information as an input and spread of Management Information
System
...

India is heading towards a business management manned by properly trained and
educated persons
...
This is indeed a great challenge to future and government
is required to take necessary action in this regard
...
9 SUMMARY OF APPROACHES AND CONTRIBUTIONS TO
MANAGEMENT

Approach

Main Contributions

Classical
Approach

- Scientific Management
- Management Functions
- Administrative Theory

- Bureaucracy

Behavioura
l Approach

- Human Relations
- Hawthorne Experiments
- Participation
- MBO
- Organizational Behaviour

Manageme
nt Science
Approach

- Operations Research
- Simulation
- Game Theory
- Decision Theory
- Mathematical Models

System
Approach

- Open System
- Closed System
- Socio-technical system

Main
Contributors
- F
...
Taylor,
Frank Gilbreth,
H
...
Gantt
- L
...
Urwick,
Mooney &
Reliey,
R
...
Davis
- Max Weber
- F
...

Roethlisberger
- Elton Mayo
- D
...
F
...
I
...
C
...
C
...
A
...
L
...
K
...
E
...
E
...
A
...
Boulding, D
...
L
...
R
...
A
...
Expanding
economy
- High Technology
- Global Trade

2
...
What are the some early evidences of management practice? Explain why
division of labour and the industrial revolution are important to the study of
management?
2
...
W
...
Critically examine the statement
...
Why is it important for every manager to understand the many different
management theories that have been develop? Describe various School of
Thoughts prevalent from time to time
...
Write a note on the evolution of management thought
...
Write short note on the following:
a) “Human Behavioural School of thought is a modified version of Human
Relations School of thought”
...

b) What is the System Approach to management? Explain the salient features
of this approach
...
Assess the role of following in development of management thoughts:

93

a) Henry Gantt
b) Weber
c) Maslow
d) Elton Mayo

2
...
Basu C
...
, Business Organization and Management, 2nd Edition, Tata McGrawHill Ltd
...
Brech, E
...
L
...

3
...
Allen, Management and Organisation, McGraw-Hill Kogakusha, Ltd
...
Laurie J
...

5
...
and Mary Coulter, Management, 2002, Prentice Hall of India
...
Robbins Stephen P
...
, Fundamentals of Management, 3rd
Edition, Pearson Education Asia
...
Karam Pal

Lesson No: 03

Vetter: Dr
...
S
...


Lesson Structure:
3
...
2
3
...
4
3
...
6

Introduction
Understanding Management as Concept
Functions of Management
3
...
1 Planning
3
...
2 Organizing
3
...
3 Staffing
3
...
4 Directing
3
...
5 Coordinating
3
...
6 Controlling
Summary
Self Assessment Questions
Suggested Readings

95

3
...
Even a
smallest human group in our society i
...
family also needs management
...
She plans about the work to be done, how the work has to
be done, who is to do the work and whether the work is done properly or
not
...
e
...
Family is a
very informal type of human group
...
So, just
imagine about large and complex institutions emerging these days
...
The basic
reason behind this phenomenon is the growing importance of management
in day to day life of people
...
The relationship between
managers and managed has changed as compared to the older masterservant relationship making it more complex
...
In order to make all these things function
properly, people have been trying to evolve some method and techniques
...
It
has grown over the period of time making itself one of the most respected
disciplines
...


96

3
...
The term management can be
considered as :1
...

You are referring to management as a process involving set of
activities
...
Planning, organizing, leading and controlling
...


2
...
Classifying management as a discipline
implies that it is an accumulated body of knowledge that can be
learned
...
A major purpose of studying the discipline of management
is to learn and understand the principles, concepts, and theories of
management and how to apply them in the process of managing
...


Management as people : Whether you say, “That company has an
entirely new management team” or “She is the best manager I have
97

ever worked for” you are referring to the people who guide, direct
and thus, manage organizations
...

4
...
Saxena has held several managerial
positions since joining the bank upon his graduation from college”
...
People who
devote their working lives to the process of management progress
through a sequence of new activities and, often, new challenges
...

These different meanings of the term management has been related
as follows by John M
...


3
...


FUNCTIONS OF MANAGEMENT
Management process suggests that all the managers in the organization
perform certain functions to get the things done by others
...
List of management
functions varies from author to author with the number of functions ranging
from three to eight
...
Newman and Summer recognize

98

only four functions, namely, organizing, planning, leading and controlling
...
planning,
organizing, commanding, coordinating and controlling
...
Warren Haynes and Joseph Massie classify management
functions into decision-making, organizing, staffing, planning, controlling,
communicating and directing
...

Davis includes planning, organizing and controlling
...

Evolution of Management Functions
1
...
Management Process

Plan

Organize

Command

Control

by Fayol

coordinate

3
...
Modified by behavioural

Plan

Organize

Motivate

Control

Plan

Organize

Integrate

Measure

Plan

Organize

Achieve

Appraise

influence
5
...
Suggested further

Source : Ervin Williams, “Evaluation of Organic Management Function”, Atlanta
Economic Review, April 1971, p
...


99

For our purpose, we shall designate the following six as the functions of a
manager: planning, organizing, staffing, directing, coordinating and
controlling
...

Gullick and Urwick have described the functions of management as
POSDCORB referring to planning, organizing, staffing, directing,
coordinating, reporting and budgeting
...

Earnest Dale has suggested innovation and representing also as important
management functions besides these
...
These functions have
been treated differently over the period of time
...

All the above functions can be categorized into four basic functions of
management i
...
planning, organizing, leading and controlling
...
3
...
Planning
The planning function is the primary activity of management
...
Planning implies that managers think through their
goals and actions in advance and that their actions are based on some
method, plan, or logic rather than on a
...
The
organizing, leading and controlling functions all derived from the planning
function
...

Goals are then established for each of the organization’s subunits-its
division, department and soon
...

The organizational objectives are set by top management in the context of
its basic purpose and mission, environmental factors, business forecasts,
and available and potential resources
...
They are divided into divisional, departmental,
sectional and individual objectives or goals
...
Policies,
procedures and rules provide the framework of decision making, and the
method and order for the making and implementation of these decisions
...
In some organizations, particularly those which are
traditionally managed and the small ones, planning are often not done
deliberately and systematically but it is still done
...
Planning is thus
the most basic function of management
...

Relationship and time are central to planning activities
...
Planning is done by all managers at every

101

level of the organization
...
Taken as a whole, an organization’s plans are the primary tools for
preparing for and dealing with changes in the organization’s environment
...
3
...
Thus the purpose of the organizing function is to create a
structure of task and authority relationships that serves this purpose
...

Stoner defines “organizing as the process of engaging two or more people
in working together in a structured way to achieve a specific goal or set of
goals
...
Organizing, then, can be
thought of turning plans into actions
...

The organizing function also provides on organizational structure that
enables the organization to function effectively
...
Organizing thus involves the following subfunctions:
(a)

Identification of activities required for the achievement of objectives
and implementation of plans
...


(c)

Assignment of jobs to employees
...


(e)

Establishment of a network of coordinating relationships
...
It comprises
organizational positions, accompanying tasks and responsibilities, and a
network of roles and authority-responsibility relationships
...
It aims at combining employees and
interrelated tasks in an orderly manner so that organizational work is
performed in a coordinated manner, and all efforts and activities pull
together in the direction of organizational goals
...
3
...
After the
objectives have been determined, strategies, policies, programmes,
procedures and rules formulated for their achievement, activities for the
implementation of strategies, policies, programmes, etc
...
Since the efficiency and
effectiveness of an organization significantly depends on the quality of its
103

personnel and since it is one of the primary functions of management to
achieve qualified and trained people to fill various positions, staffing has
been recognized as a distinct function of management
...


(b)

Recruitment for attracting adequate number of potential employees
to seek jobs in the enterprise
...


(d)

Placement, induction and orientation
...


(f)

Training and development of employees
...
It need hardly any emphasize that no organization can ever
be better than its people, and managers must perform the staffing function
with as much concern as any other function
...
3
...
Jobs assigned to subordinates have to be explained and clarified,
they have to be provided guidance in job performance and they are to be
motivated to contribute their optimum performance with zeal and
enthusiasm
...
The directing function serves this
purpose
...

The best human resources employed will be of house if they are not
motivated and directed in the right direction to achieve the organizational
goals
...

By establishing the proper atmosphere, managers help their employees to
do their best
...
The ability requires both
task-oriented capabilities and the ability to communicate, understand and
motivate people
...
3
...
It is thus the process of tying together all the
organizational decisions, operations, activities and efforts so as to achieve
unity of action for the accomplishment of organizational objectives
...
The manager, in her view, should ensure that he has an
105

organization "with all its parts coordinated, so moving together in their
closely knit and adjusting activities, so linking, interlocking and
interrelation, that they make a working unit that is not a congeries of
separate pieces, but what I have called a functional whole or integrative
unity"
...
3
...
This is
the controlling function of management
...
It involves four
main elements :1
...


Measuring current performance

3
...


4
...


Controlling implies that objectives, goals and standards of performance
exist and are known to employees and their superiors
...
, for it is
not uncommon that employees failure to achieve predetermined standards
is due to defects or shortcomings in any one or more of the above
dimensions of management
...


(b)

Identification of deviations from these goals
...


It may be pointed out that although management functions have been
discussed in a particular sequence-planning, organizing, staffing, directing,
coordinating and controlling – they are not performed in a sequential order
...
Management functions tend to coalesce, and it
sometimes becomes difficult to separate one from the other
...
Moreover,
managers often perform more than one function simultaneously
...

Without the controlling functions, other functions loose their relevance
...
Controlling function helps us knowing
the deviations but the reasons for such deviations and the corrective actions
is to be taken depends on the managers
...

107

3
...
The above named
functions of management which have been discussed in this lesson are the
backbone of management philosophy
...
But today’s environment of
business is a perfect blend of all these typical functions
...

Successful leaders and managers are very energetic
...
These are
a leader’s directional (or thinking) and implementing skills
...
Successful leaders also work hard at accomplishing
their missions and objectives while maintaining only the highest possible
standards of performance
...


108

3
...


"There is no important area of human activity than management since its
task is that of getting things done through people"
...


2
...
Discuss
this statement, giving suitable examples
...


What are the functions of a manager? Is mere knowledge of management
enough to become successful manager?

4

Discuss the important functions of management which support the
philosophy of modern management thinkers
...
6

FURTHER READINGS

1
...


2
...
Drucker, Practice of Management

3
...
S
...


4
...


109

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
B
...
Bodla

PLANNING
Objectives : The objectives of this lesson are to understand and the nature and
process of planning; to appreciate, why it is necessary to do
planning; to understand the merits and demerits of planning; to grasp
the principles of planning and to understand the various kinds and
level of plans
...
1

The Concept of Planning

4
...
3

Nature and Scope of Planning

4
...
5

Advantages and Limits of Planning

4
...
7

Basic Principles of Planning

4
...
9

Essential Steps in Planning

4
...
11

Self Assessment Questions

4
...
1

THE CONCEPT OF PLANNING
Planning is the most fundamental function of management
...
Without it purposive and coordinated effort is
not possible, and what results are chaos, confusion and wastage of
resources
...
Planning thus precedes all efforts
and action, as it is the plans and programmes that determine the kind of
decisions and activities required for the attainment of the desired goals
...
In the absence of planning, it will be
impossible to decide what activities are required, how they should be
combined into jobs and departments, who will be responsible for what kind
of decisions and actions, and how various decisions and activities are to be
coordinated
...
Planning is also an essential prerequisite for the performance of
control function, as it provides criteria for evaluating performance
...


Definition of Planning : Planning is the process of deciding in advance
what is to be done, who is to do it, how it is to be done and when it is to be
done
...
It helps to bridge the gap from where we are, to where
we want to go
...
Planning is a higher order mental process requiring the
use of intellectual faculties, imagination, foresight and sound judgment
...

Planning is a process which involves anticipation of future course of events
and deciding the best course of action
...
To plan is to produce a scheme for future action; to bring about
specified results, at specified cost, in a specified period of time
...
It may even attempt
deliberately to create change, remembering always that change (like
decision) in any one sector will in the same way affect other sectors
...
Planning is a systematic attempt to decide a particular course of
action for the future, it leads to determination of objectives of the group
activity and the steps necessary to achieve them
...

Planning is thus deciding in advance the future state of business of an
enterprise, and the means of attaining it
...


What will be done – what are the objectives of business in the short
and in the long run?

112

2
...


3
...
, required for the
attainment of objectives, and (ii) formulation of strategies, policies,
procedures, methods, standard and budgets for the above purpose
...


Who will do it – It involves assignment of responsibilities to various
managers relating to contributions they are expected to make for the
attainment of enterprise objectives
...


5
...


4
...

An attempt is being made to highlight some of the important concepts of
planning by way of its distinguishing features, so as to clarify the
misconceptions:
(i)

Planning does no attempt to make future decisions : Planning
choosing of the more desirable future alternatives open to a
company, is the process so that better decisions may be made
...
At the same time, a plan often leads to
additional but related decisions
...

(ii)

Planning is not just forecasting or making projections : Forecasts
are mere estimates of the future, and indicate what may or may not
happen
...
Planning is a continuous process
...


4
...


Planning is a Continuous Process
114

Planning deals with the future, and future, by its very nature, is
uncertain
...
This aspect of planning makes it a
continuous process
...
They do not
acquire finality because revisions are needed to be made in them in
response to changes taking place in the internal as well as external
environment of enterprise
...

2
...
In doing so, he formulates his goals and plans
within the framework of the goals and plans of his superior
...

However, managers at higher levels, being responsible for a
relatively larger unit of the enterprise, devote a larger part of their
time to planning, and the time span of their plans also tends to be
longer than that of managers at lower levels
...


3
...
The corporate plan provides the framework for the formulation

115

of divisional departmental and sectional goals
...
The
plans of each lower component are aggregated into the plans of
successively higher component until the corporate plan integrates all
component plans into a composite whole
...
All departmental plans
are then integrated in the corporate plan
...

4
...
An organization’s objectives, strategies,
policies and operating plans affect its future effectiveness, as
decisions made and activities undertaken in the present continue to
have their impact into the future
...
For example, plans for
product diversification or production capacity affect a company long
into the future, and are not easily reversible, whereas plans relating
to the layout of its office locations can be changed with relatively
less difficulty in the future
...


5
...


116

Planning, therefore, implies change in organizational objectives,
policies, products, marketing strategies and so forth
...
It,
therefore,

needs

examination

and

re-examination,

continual

reconsideration of the future, constant searching for more effective
methods and improved results
...
It
imposes on all executives a responsibility to estimate and anticipate
the future, prepare the organization to cope with its challenges as
well as take advantage of the opportunities created by it, while at the
same time, influence tomorrow's events by today's pre-emptive
decisions and actions
...
4

IMPORTANCE OF PLANNING
While planning does not guarantee success in organizational
objectives, there is evidence that companies that engaged in formal
planning consistently performed better than those with none or
limited formal planning and improved their own performance over a
period of time
...
Some of the reasons as to why planning is
considered a vital managerial function are given below :
1
...
Since planning takes a future outlook, it takes
into account the possible future developments
...


Planning affects performance : A number of empirical
studies provide evidence of organizational success being a
function of formal planning, the success being measured by
such factors as return on investment, sales volume, growth in
earnings per share and so on
...


3
...

Objectives provide a direction and all planning decisions are
directed towards achievement of these objectives
...
This ensures maximum utility of
managerial time and efforts
...


Planning anticipates problems and uncertainties : A
significant aspect of any formal planning process in collection
of relevant information for the purpose of forecasting the
future as accurately as possible
...
Since the future needs of the
organization are anticipated in advance, the proper acquisition
and allocation of resources can be planned, thus minimizing
wastage and ensuring optimal utility of these resources
...


Planning is necessary to facilitate control : Controlling
involves the continual analysis and measurement of actual
operations against the established standards
...
Periodic
reviews of operations can determine whether the plans are
being implemented correctly
...

First, the planning process establishes a system of advance
warning

of

possible

deviations

from

the

expected

performance
...

6
...
It also helps
managers to make routine decisions about current activities
since the objectives, plans, policies, schedules and so on are
clearly laid down
...
5

ADVANTAGES AND LIMITATIONS OF PLANNING
The importance of formal planning has already been discussed
...
It
gives the mangers some purpose and direction
...


Focuses Attention on Objectives : Since all planning is directed
towards achieving enterprise objectives, the very act of planning
focuses attention on these objectives
...
If the objectives are clearly laid down, the
execution of plans will also be directed towards these objectives
...
It substitutes joint directed effort for uncoordinated
piecemeal activity, even flow of work for uneven flow, and
deliberate decisions for snap judgement costs
...


3
...
Effective
planning is the result of deliberate thinking based on facts and
figures
...
Planning gives an opportunity to
a business manager to foresee various uncertainties which may be
caused by changes in technology, taste and fashion of the people,
etc
...


4
...
Planning and control are inseparable in the
sense that unplanned action cannot be controlled because control
involves keeping activities on the predetermined course by rectifying
deviations from plans
...
It lays down objectives and standards of

120

performance which are essential for the performance of control
function
...


Encourages Innovation and Creativity : Planning is basically the
deciding function of management
...
It creates a forward looking
attitude among the managers
...


Improves Motivation : A good planning system ensures
participation of all managers which improves their motivation
...
Moreover, planning serves as a good
training device for future managers
...


Improves Competitive Strength : Effective planning gives a
competitive edge to the enterprise over other enterprises that do not
have planning or have ineffective planning
...


8
...
All the activities are directed
towards the common goals
...
It will also help in avoiding duplication of efforts
...


Limitations of Planning : Sometimes, planning fails to achieve the
expected results
...

These are discussed below :

121

1
...
Planning loses its value if
reliable information is not available or if the planner fails to utilize
the reliable information
...


2
...
If a
manager has a tendency to follow rather than lead, he will not be
able to make good plans
...
He should be an active planner and should take
adequate follow up measure to see that plans are understood and
implemented properly
...


Costly process : Planning is time consuming and expensive process
...
But it is also true that if
sufficient time is not given to the planning process, the plans so
produced may prove to be unrealistic
...
If the management is not willing to spend on
planning, the results may not be good
...


Rigidity in organizational working : Internal inflexibility in the
organization may compel the planners to make rigid plans
...
So the planners must have sufficient discretion and
flexibility in the enterprise
...


5
...
It is a commonly experienced

122

phenomenon in the business world
...

6
...
External strategies are very difficult to predict
...
This makes the
execution of plans very difficult
...


Psychological barriers : Psychological factors also limit the scope
of planning
...
Such persons are psychologically
opposed to planning
...
Long-range wellbeing of the enterprise
cannot be achieved unless proper planning is done for future
...
6

MEASURES TO OVERCOME LIMITATIONS OF PLANNING
Some people say that planning is a mere ritual in the fast changing
environment
...

Planning may be associated with certain difficulties such as non-availability
of data, lethargy on the part of the planners, rigidity of procedures,
resistance to change and changes in external environment
...


Setting Clear-cut Objectives : The existence of clear-cut objectives
is necessary for efficient planning
...
The overall objectives of the
123

enterprise must be the guiding pillars for determining the objectives
of various departments
...

2
...
Availability of right type of information will
help in overcoming the problems of complete understanding of the
objectives and resistance to change on the part of the subordinates
...


Carefully Premising : The planning premises constitute a
framework within which planning is done
...
Planning always requires some
assumptions to be made regarding future happenings
...
before
giving the final shape to the overall business plan
...
It
may be pointed out that the premises which may be of strategic
significance to one enterprise may not be of equal significance to
another because of size, nature of business, nature of market, etc
...


Business Forecasting : Business is greatly influenced by economic,
social, political and international environment
...

Good forecasts will contribute to the effectiveness of planning
...


Dynamic Managers : The persons concerned with the task of
planning should be dynamic in outlook
...


124

A manager should always keep in mind that planning is looking
ahead and he is making plans for future which is highly uncertain
...


Flexibility : Some element of flexibility must be introduced in the
planning process because modern business operates in an
environment which keeps on changing
...


7
...
Alternatives are always present in any decision
problem
...
The alternative which is
chosen should not only be concerned with the objectives of the
enterprise, but also capable of being accomplished with the help of
the given resources
...


Cost-Benefit Analysis : The planners must undertake cost-benefit
analysis to ensure that the benefits of planning are more than the cost
involved in it
...


4
...


Principle of contribution to objective : The purpose of plans and
their components is to develop and facilitate the realization of
organizational aims and objectives
...


2
...


3
...
Strategic planning or long-range planning is
related to top management, while intermediate and short-range
planning is the concern of middle and operative management
respectively
...
It is the duty of the
navigator to check constantly, whether his ship is following the right
direction in the vast ocean to reach the distinction as scheduled
...
He should change the direction of his
plans if he faces unexpected events
...
It is the responsibility of the manager, to adapt
and change the direction of plans, to meet the challenge of
constantly changing environment that could not be foreseen
...


Principle of flexibility : Flexibility should be built into
organizational plans
...
The principal of flexibility
states the management should be able to change an existing plan
because of changes in environment, without due cost or delay, so
that activities keep moving towards established goals
...
Change in these plans can be
introduced, only when these possess the characteristics of flexibility
...


4
...


Strategic and Functional Planning : In strategic or corporate
planning, the top management determines the general objectives of
the enterprise and the steps necessary to accomplish them in the light
of resources currently available and likely to be available in the
future
...


2
...
It involves an attempt to
anticipate, analyze and make decisions about basic problems and
issues which have significance reaching well beyond the present

127

operating horizon of the enterprise
...
Short range
planning relates to a relatively short period and has to be consistent
with the long-range plans
...

3
...
But standing plans are designed to be used over and over
again
...


4
...
Operative planning, on the other
hand, is done by the lower level mangers to put the administrative
plans into action
...


Physical Planning : It is concerned with the physical location and
arrangement of building and equipment
...


Formal and Informal Planning : Various types of planning
discussed above are of formal nature
...
They specify in black and white
the specific goals and the steps to achieve them
...
Informal planning, on the
other hand, is mere thinking by some individuals which may become
the basis of formal planning in future
...
The three level of planning are as under :
1
...
e
...
It encompasses the long-range
objectives and policies of organization and is concerned with
corporate results rather than sectional objective
...
It might be called the 'what' of planning
...


Second Level Planning : Also known as tactical planning, it is done
by middle level mangers or department heads
...
It deals with deployment of resources to the best
advantage
...
This is because its attentions
are usually devoted to the step by step attainment of the
organization’s main objectives
...


3
...

It is confined to putting into effect the tactical or departmental plans
...


129

4
...
It is an
intellectual exercise and a conscious determination of courses of action
...
Facts are collected and analyzed and the best
out of all is chosen and adopted
...
For example,
planning process for a large organization may not be the same as for a small
organization
...


Establishing Verifiable Goals or Set of Goals to be Achieved :
The first step in planning is to determine the enterprise objectives
...

There are many types of objectives managers may select: a desired
sales volume or growth rate, the development of a new product or
service, or even a more abstract goal such as becoming more active
in the community
...


2
...
e
...
Planning premises are vital to the success of planning as

130

they supply economic conditions, production costs and prices,
probable competitive behaviour, capital and material availability,
governmental control and so on
...


Deciding the planning period : Once upper-level managers have
selected the basic long-term goals and the planning premises, the
next task is to decide the period of the plan
...
In some instances plans are
made for a year only while in others they span decades
...
Companies generally base their period on a
future that can reasonably be anticipated
...


4
...

For instance, technical know-how may be secured by engaging a
foreign technician or by training staff abroad
...
There is seldom a plan for which
reasonable alternatives do not exit, and quite often an alternative that
is not obvious proves to be the best
...


Evaluating and Selecting a Course of Action : Having sought
alternative courses, the fifth step is to evaluate them in the light of
the premises and goals and to select the best course or courses of
action
...

131

6
...
Middle and lower-level managers must draw up the
appropriate plans, programmes and budgets for their sub-units
...
In developing these
derivative plans, lower-level managers take steps similar to those
taken by upper-level managers – selecting realistic goals, assessing
their sub-units particular strength and weaknesses and analyzing
those parts of the environment that can affect them
...


Measuring and Controlling the Progress :Obviously, it is foolish
to let a plan run its course without monitoring its progress
...
Managers need to
check the progress of their plans so that they can (a) take whatever
remedial action is necessary to make the plan work, or (b) change
the original plan if it is unrealistic
...
10

SUMMARY
Planning has a primacy over other management functions and is a pervasive
element in organizations
...
Planning is a higher
order mental process requiring the use of intellectual faculties, imagination,
foresight and sound judgement
...


2
...


"Managerial planning seeks to achieve a coordinated structure of
operations"
...


132

2
...
Comment

3
...
What should be done to overcome its limitations?

4
...

Comment briefly
...


Describe in detail the steps involved in the planning process
...
12

SUGGESTED READINGS
1
...


2

J
...
Chandan, Management Concepts and Strategies
...


Arun Kumar and R
...


7
...


B
...
Singh, Business Management and Organizations

133

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
B
...
Bodla

DEISION-MAKING
Objective : The learning objectives of the lesson are to know the meaning and
importance of Decision Making; to understand the characteristics
and process of Decision Making; to understand the various types of
Decisions and to learn the Techniques of Decision Making
...
1

The Concept of Decision Making

5
...
3

Importance of Decision Making

5
...
5

Types of Decisions

5
...
7

Summary

5
...
9

Suggested Readings

134

5
...
More than anything else, the ability to make sound, timely
decisions separates a successful manager from a non-successful
...
On the face of it the decisions should be
cohesive,

conjectured,

contingent,

flexible,

improved,

influencing,

intuitional, non-judgemental, objective, operational one
...
Whatever a manager
does, he does through decision-making
...
It is because of this
pervasiveness of decision-making that Professor Herbert Simon has said the
process of managing as a process of decision-making
...
As a matter of act, it is the core of
executive activities in a business organization
...
It is a process of selecting one best
alternative for doing a work
...
According to D
...
McFarland, "A decision is an act of choicewherein an executive forms a conclusion about what must be done in a
given situation
...
In the words of Haynes and Massie, "A
decision is a course of action which is consciously chosen for achieving a
desired result"
...
It involves choosing
the best alternative among various alternatives, in order to realize certain
objectives
...
It is really a mental exercise which decides what to do
...
If they delay or avoid making a
decision, this indecisiveness may create hesitancy, loss of confidence, and
confusion within the unit, and may cause the task to fail
...
Then,
when circumstances dictate a change in plans, prompt reaction builds
confidence in them
...
2

CHARACTERISTICS OF DECISION MAKING
The essential characteristics of decision making are given below:
1
...

2
...

3
...

4
...
A manager may take one
decision in a particular set of circumstances and another in a different
set of circumstances
...
It involves a time dimension and a time lag
...
It always has a purpose
...


136

7
...

5
...
Some decisions, such as when to take a break
or where to hold a meeting, are simple decisions which have little effect on
others
...
Therefore, having a decision-making, problemsolving process can be a helpful tool
...
Within business and the military today,
leaders at all levels use some form of a decision-making, problem-solving
process
...
We would briefly discuss it in this lesson as
well
...
According to Peter F
...
Decision making lies
deeply embedded in the process of management, spreads over all the
managerial functions and covers all the areas of the organization
...
Whether knowingly or unknowingly,
every manager makes decisions constantly
...
The significant difference is that in today's
complex organization structure, the decision making is getting more and
137

more complex
...
Some of the decisions are of routine and repetitive in nature and
it might be that the manager does not realize that he is taking decisions
whereas, other decisions which are of strategic nature may require a lot of
systematic and scientific analysis
...

The most outstanding quality of successful manager is his/her ability to
make sound and effective decisions
...
It is not correct to say that he has to make
spur of the moment decisions all the time
...
Decision making is a human process
...

Decision making is a proper blend of thinking, deciding and action
...

Decisions also have a time dimension and a time lag
...
Moreover, after decides, it
takes still more time to carry out a decision and, often, it takes longer
before he can judge whether the decision was good or bad
...

5
...


Setting objectives : Rational decision-making involves concrete
objectives
...
An objective is an expected outcome of future actions
...
Exact knowledge of
goals and objectives bring purpose in planning and harmony in
efforts
...

2
...
A lot of bad decisions are made because
the person making the decision does not have a good grasp of the
problem
...

Sufficient time and energy should be spent on defining the problem
as it is not always easy to define the problem and to see the
fundamental thing that is causing the trouble and that needs
correction
...
It is, therefore, essential to
define the problem before any action is taken, otherwise the manager
will answer the wrong question rather than the core problem
...


139

3
...
The problem should be
thoroughly analyzed to find out adequate background information
and data relating to the situation
...
There can be a number
of factors involved with any problem, some of which are pertinent
and others are remote
...
It will save time as well as money and efforts
...
So
long as the required information is not available, any classification
would be misleading
...
Trying to analyze without facts is like
guessing directions at a crossing without reading the highway
signboards
...
It would not be an exaggeration to say
that a decision is as good as the information on which it is based
...
He must decide what type of information he
requires and how he can obtain this
...


Developing Alternatives : After defining and analyzing the
problem, the next step in the decision making process is the
development of alternative courses of action
...
It is rare for alternatives to be

140

lacking for any course of action
...
In such a case, what the
manager has probably not done is to force himself consider other
alternatives
...
From this can be derived a key planning principle
which may be termed as the principle of alternatives
...
Effective planning involves a
search for the alternatives towards the desired goal
...
Nevertheless, development of alternatives cannot provide a
person with the imagination, which he lacks
...
It should also be
noted that development of alternatives is no guarantee of finding the
best possible decision, but it certainly helps in weighing one
alternative against others and, thus, minimizing uncertainties
...
A limiting factor is one which stands in the way of
accomplishing the desired goal
...

If such factors are properly identified, manager can confine his
search for alternative to those which will overcome the limiting
factors
...

5
...
There are various ways to evaluate alternatives
...
e
...
There is an inherent danger in this
process because a manager's intuition may be wrong on several
occasions
...
Peter F
...
They are :
(a)

Risk : A manager should weigh the risks of each course of
action against the expected gains
...
What matters is the intensity
of different types of risks in various solutions
...
The decision to be chosen should ensure
the maximum possible economy of efforts, money and time
...
If the situation has great urgency, the preferable
course of action is one that alarms the organization that
something important is happening
...


(d)

Limitation of Resources : In choosing among the
alternatives, primary attention must be given to those factors
that are limiting or strategic to the decision involved
...
Discovery of the limiting factor lies at
the basis of selection from the alternatives and hence of
planning and decision making
...
He can give more reliance to past
experience in case of routine decisions; but in case of
strategic decisions, he should not rely fully on his past
experience to reach at a rational decision
...
This approach has proved to
be of considerable help in many cases in test marketing of a
new product
...

Research and Analysis is considered to be the most effective
technique of selecting among alternatives, where a major
decision is involved
...

6
...
The manager is not
only concerned with taking a decision, but also with its
implementation
...
The main problem which the
manager may face at the implementation stage is the resistance by

143

the subordinates who are affected by the decision
...
In order to make the decision
acceptable, it is necessary for the manager to make the people
understand what the decision involves, what is expected to them and
what they should expect from the management
...
The managers who discuss problems with their
subordinates and give them opportunities to ask questions and make
suggestions find more support for their decisions than the managers
who don't let the subordinates participate
...

They should be encouraged to suggest alternatives
...
Moreover, they will feel attached to the decision
...
Group participation does not necessarily
improve the quality of the decision, but sometimes impairs it
...
It has also been pointed out that all employees
are unable to participate in decision making
...

7
...
Killer, has emphatically
written in his book that it is always better to check the results after
putting the decision into practice
...


(ii)

If the decision is a bad one, one will know what not to do the
next time
...


In order to achieve proper follow-up, the management should devise an
efficient system of feedback information
...


5
...
The
main types of decisions are as follows :

1
...
He has utilized computer terminology in classifying
decisions
...

Thus, they involve no extraordinary judgement, analysis and authority
...

On the other hand, the non-programmed decisions are the one-shot, ill
structured, novel policy decisions that are handled by general problemsolving processes
...
They are basically non-repetitive in nature and may be called as
strategic decisions
...


Basic and routine decisions : Professor George Katona has made a
distinction between basic decision and routine decisions
...
Basic or genuine decisions are those which require
a good deal of deliberation on new principles through conscious thought
process, plant location, distribution are some examples of basic decisions
...


Policy and operative decisions : Policy decisions are important decisions
and they involve a change in the procedure, planning or strategy of the
organization
...
Such decisions are taken by the top management
...
They are
generally concerned with the routine type of work, hence unimportant for
the top management
...


4
...
On the other hand, group-decisions are the decisions taken
by a group of managers – board, team, committee or a sub-committee
...
But in
joint stock Company’s group decisions are common
...


146

5
...

Generating a reasonable number of alternatives is very useful for
solving any complex problem
...
Osborn, and is one of the
oldest and best known techniques for stimulating the creative
thinking
...
The member of the group may be experts, may
be from other organizations but the members should be around six to
eight
...
The premise of brainstorming is that when people interact
in a free and exhibited atmosphere, they will generate creative ideas
...
This generation of ideas is a contagious and creates
an atmosphere of free discussion and spontaneous thinking
...

The important rules of brainstorming are as given below :
(i)

Criticism is prohibited
...


(iii)

Quantity is desirable
...


One session of brainstorming exercise generates around 50 to 150 ideas
...

Limitations of Brainstorming
The limitations of brainstorming are given below :
(i)

It is not very effective when a problem is very complex and vague

(ii)

It is time consuming

(iii)

It is very costly

(iv)

It produces superficial solutions
...
J
...
It is recently
formalized tool of creative thinking
...
The basic purpose of

148

synectics is to stimulate novel and even bizarre alternatives through the
joining together of distinct and apparently irrelevant ideas
...
The experienced leader states the problem for the group to
consider, group reacts to the problem stated on the basis of their
understanding and convictions
...
The leader has to structure the problem and he/she can use
various methods to involve the preconscious mind, like role-playing, use of
analogies, paradoxes, metaphors and other thought provoking exercises
...
The technical expert assists the
group in evaluating the feasibility of ideas
...
This is more useful and appropriate for
solving complex and technical problems
...
Nominal group is very effective in situations where a
high degree of innovation and idea generation is required
...

Stage-2 : Each member is asked to prepare a list of ideas in response to the
identified problem, individually for achieving a set of objective
...
The group facilitator records the ideas on a blackboard
or flip chart for all to see
...
At this point, it may be rewarded, combined, added or
deleted
...
Following a brief
discussion of the vote, a final secret ballot is conducted
...

(B)

Quantitative Techniques
There are a number of quantitative techniques for decision-making that are
discussed below :
(a)

Stochastic Methods : In many management decisions, the
probability of the occurrence of an event can be assumed to be
known, even when a particular outcome is unpredictable
...
Actually,
stochastic

methods

merely

systematize

the

thinking

about

assumptions, facts and goals that is involved in decisions under
conditions of risk
...
In this step, it may only be possible to assign
probabilities that are reasonable estimates
...
It is then possible to calculate an average
of the outcome-values weighted by the assigned probabilities; the
result is called the expected monetary value
...

Either brand can be stocked but not both
...
The manager can make Rs
...
500/-
...
400/-, but if it is a failure, there can be a
loss of Rs
...
Which brand should be stocked? Without some
idea of the probabilities of success and failure of these brands, the
manager's thinking cannot be quantified
...
1
Table 5
...
80

0
...
20

0
...
The simplest payoff table as the first
step in stating strategies and possible outcomes is shown in Table
5
...


151

With the information in Table 5
...
This
calculation will result in expected values
...
2 shows the
expected value pay off, using the assumed payoff in Table 5
...

Table 5
...
200/-

Rs
...
400/-

Rs
...
3, the store manager can
determine the total expected value for each strategy by obtaining the
sum of the expected values for each state of nature
...
60/- (Rs
...
50/- (Rs
...
10/- more than if Brand B were stocked
...

Table 5
...
100/-

Stock Brand B
(c)

Rs
...
200/-

Rs
...
In
this way, the manager may rapidly try out on paper (or with a
computer) the results of proposed actions before the actions are
taken
...

The idea of randomness represented by random numbers is at the
heart of simulation
...
Tables of random numbers
are now readily available
...
With simulation, the
manager can try out available strategies as they might result in
different outcomes, depending upon probabilities from a table of
random numbers
...
The
problem arises from not knowing when customers may appear in the
store
...
In simulating the traffic for
a day, the manager may wish to use subjective probabilities for those
times in which there are no data from experience, but even if there
153

are no experience data, it is still possible to simulate an activity by
using random numbers
...
In
seconds, a computer can perform thousands of simulation trails and
at the same time compile all costs
...
The executive
specifies such things as reorder points and order quantity and the
computer determines the costs of that policy over the same period of
time
...

(d)

Breakeven Analysis : The simplest approach for showing the
relationship of revenue to cost is the breakeven chart
...
Breakeven analysis directs
attention to the first of these
...
This analysis can be handled algebraically or
graphically; however, in all cases, the first step is to classify costs
into at least two types-fixed and variable
...
However, it should be clear that when
average cost per unit is considered, fixed cost per unit of output will
decline as volume increases- the constant fixed costs are spread over
more units of output
...
In most
industries, variable costs per unit can reasonably be assumed to be
constant, and thus total variable costs will appear as a straight line
(linear) when plotted against various quantities of output
...
A breakeven chart is graphical representation of the
relationship between costs and revenue at a given time
...
The construction of
this chart requires only that the cost and revenue be known at two
points (volumes of output), because only two points are required to
draw a straight line
...
Cost and revenue data at an actual
volume level provide the basis for the necessary second point
...


5
...
In
fact, you should always apply a clear, logical thought process to all
leadership situations that you encounter
...
The seven steps are: 1
...
2
...

3
...
4
...
5
...
6
...
7
...

In this lesson an attempt has been made to make to understand the
importance of decision making in today's context
...
The unit dimensional types decision i
...
Organizational vs
...
Strategic, Policy vs
...
non
Programmed and Individual vs
...
Three
phases of decision making deal with identification, evaluation and selection
of alternative to a problem
...
Economic man model suggests a logical process of
taking decisions, particularly when problem is routine, mechanistic and
programmed or when decisions are taken under certainty of conditions
...
The various qualitative techniques :
Brainstorming, Synectics, Nominal Grouping; Quantitative Techniques :
Stochastic Method, Payoff Table, Decision Tree, Simulation Technique,
Break-even Analysis are discussed
...
8

SELF ASSESSMENT QUESTIONS

1
...


"Decision-making is the primary task of the manager"
...


156

3
...
Which one is
most important and why?

4
...


5
...


6
...
Comment
...


Explain the quantitative techniques of decision-making
...
9

SUGGESTED READINGS

1
...
147
...


Harold Koontz and Cyril O
...
Management A Systems and
Contingency Analysis of Management Functions, McGraw-Hill Kogakusha
Ltd
...
p
...


3
...
M
...
Homewood, III : Richard D
...
Inc
...


Duncan, J
...
Inc
...


Maier, N
...
F
...
Assets and Liability in group production Solving :
The Need for an integrative function
...


6
...
R
...
N
...
F
...
O
...
, 1950
...

8
...


158

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
Harbhajan Bansal

ORGANISING
Objectives: After reading this lesson, the students will be able to understand the
meaning, characteristics and nature of organization; to explain steps
in designing effective organization; to analyze formal and informal
organization; and to understand the nature of different types of
organizations
...
1

Introduction to the Concept

6
...
3

Nature of Organization

6
...
5

Objectives of Organizing

6
...
7

Advantages of Organization

6
...
9

Forms of Organization Structure

6
...
1 Line Organization
6
...
2 Line and Staff Organization
6
...
11

Self Assessment Questions

6
...
1

INTRODUCTION TO CONCEPT
Organization is the backbone of management
...
Sound
organization contributes greatly to the continuity and success of the
enterprise
...
Leave nothing but our organization, and in four years we shall have
re-established ourselves"
...
However, good organization structure does not by itself
produce good performance – just as good constitution does not guarantee
great presidents or good laws a moral society
...
The right organizational structure is the necessary
foundation; without it the best performance in all other areas of
management will be ineffectual and frustrated
...
2

MEANING AND CHARACTERISTICS OF ORGANISATION
The term 'organization' connotes different meanings to different people
...
For instance, to the
sociologists organization means a study of the interactions of the people,
classes, or the hierarchy of an enterprise; to the psychologists organization
means an attempt to explain, predict and influence behaviour of individuals
in an enterprise; to a top level executive it may mean the weaving together
the functional components in the best possible combination so that an
enterprise can achieve its goals
...


160

Some important definitions of organization are given below :
"It is grouping of activities necessary to attain enterprise objectives and the
assignment of each grouping to a manager with authority necessary to
supervise it"
...


Louis A
...


Joseph

L
...

An analysis of the above definitions reveals the following characteristics of
an organization :
1
...


2
...


3
...


4
...


161

5
...


6
...


7
...


It is a functional concept
...


Facilitates attainment of the objectives of the enterprise
...


Facilitates optimum use of resources and new technological
development
...

4
...


5
...


6
...


7
...
3

Facilitates growth and diversification
...


NATURE OF ORGANISATION
The term 'organization' is used in two different senses
...
In the second sense, it is used to
denote the results of that process, namely, the organizational structure
...


Organization as a process : As a process, organization is an executive
function
...


(ii)

Grouping of interrelated activities
...


When we consider organization as a process, it becomes the function of
every manager
...
Whenever there is a change in the
circumstances or material change in situation, new type of activities spring
up
...
Right
persons have to be recruited and necessary training has to be imparted to
enable them to be competent to handle the jobs
...
It also
represents humanistic view of the enterprise since it is the people which are
uppermost in the process of integration of activities
...

Organization as a structure or framework of relationships : As
structure, organization is a network of internal authority, responsibility
relationships
...
An organization structure
is a systematic combination of people, functions and physical facilities
...
It has to be first designed for determining the channel of
communication and flow of authority and responsibility
...
Peter F
...
e
...
The accountability of each functionary
has to be specified
...
In a way,
organization can be called a system as well
...
The structure once built is not liable to change so soon
...
It is also called classical
concept
...

In an organizational structure, both formal and informal organizations take
shape
...

The latter is a spontaneous formation, being laid down by the common
sentiments, interactions and other interrelated attributes of the people in the
organization
...


6
...
When the objectives have been set and policies framed, the
necessary infrastructure of organization has to be built up
...
These form 'the building
blocks' of the organizational structure
...
But the following steps can be
of great help in the designing a suitable structure, which will laid in
achieving enterprise objectives :

164

1
...
This will help in determining the type, stability and basic
characteristics of the organization
...


2
...
The activities will depend
upon the nature and size of the enterprise
...
There is no production activity in retail establishment
...
For instance,
production activity may be further divided into purchasing of
materials, plant layout, quality control, repairs and maintenance,
production research etc
...


Assigning duties : The individual groups of activities are then
allotted to different individuals according to their ability and
aptitude
...
Each person
is given a specific job suited to him and he is made responsible for
its execution
...


4
...
By authority
we mean power to take decisions, issue instructions, guiding the
subordinates, supervise and control them
...
An individual
cannot perform his job without the necessary authority or power
...

165

5
...
Such coordination is necessary to
ensure

effective

performance

of

specialized

functions
...

6
...
Whereas it is important to have
right persons on right jobs, it is equally important to have right
working environment
...


7
...
This will ensure overall
control over the working of all departments and their coordinated
direction towards the achievements of predetermined goals of
business
...
It not only establishes
authority relationship but also provides a system of communication
...


166

6
...

When a group of people assemble without any per-planed aim or purpose, it
is not an organization but just a mob
...
A purpose refers to commitment to desired future
...

Why should business enterprise organize itself ? The answer to this
question brings out its objectives
...
To put it
more precisely, the nature of an organization (i
...
political, social, religious
or economic) can only be known by studying its objectives
...


Effective management of the enterprise : Effective management
largely depends upon effective organization
...
It achieves a clear line of communication, and defines
the areas of work
...
It
saves the entire enterprise from adhocism, over-lappings and
inefficiency
...


Maximum production at minimum cost : The activities are
allotted according to the principle of division of labour
...
The increase in output and control of
wasteful expenditure helps to decrease the cost of production
...

3
...
With the passage of time, an
enterprise must expand its activities
...

A static business soon grows stale and get out of run
...
Organization plays an
important role in this respect
...


4
...
The employees
learn working in closer cooperation of others
...


5
...
Without profit, no business
can exist
...
It
cannot survive long by exploiting consumers and society
...
It has to ensure smooth supply of goods as per the
needs to consumers
...
So, to discharge social obligation is
an important objective of building up sound organization
...


(ii)

to make group action efficient and effective by providing
centres for decision making and a system of communication
to effectively coordinate individual efforts towards groupgoals
...


(iv)

to subdivide the management process by which plans are
translated into actions so as to make management most
effective
...

6
...
The function of
organization can be carried effectively with the help of under mentioned
principles:
(i)

Division of work : While structuring organization, division of work,
at the very outset, should be considered as the basis of efficiency
...
Therefore, while designing the

169

organization we should aim at making suitable grouping of
activities
...

(ii)

Attention to objectives : An organization is a mechanism

to

accomplish certain goals or objectives
...
Clearly defined objectives
facilitate grouping of activities, delegation of authority and
consequently effective coordination
...
It is an established fact that larger the number of
subordinates reporting directly to the executive, the more difficult it
tends to be for him to supervise and coordinate them effectively
...


(iv)

Unity of command : Organization structure should also be designed
in such a way that there exists unity of command in the sense that a
single leader is the ultimate source of authority
...


(v)

Flexibility : While designing the organization it should be kept in
mind that organizational structure should not be regarded as static
...
As such there must be sufficient room for changing
and modifying the structure in the light of environmental changes so
that the ultimate objective of the organization is achieved
...
The problem of balance

170

basically arises when an activity or a department is further divided
and subdivided into smaller segments
...

(vii)

Management by exception : It is a fundamental principle that
makes any organization effective in its true sense
...
Application of this principle as such,
certainly requires adhering to the principle of delegation of
authority
...


(viii) Decentralization : This principles is of great significance to big
organizations
...
It requires very careful selection of what decisions to
push down into the organization, of what to hold at or near the top
specific policy making to guide the decision-making, selection and
training of people and adequate control
...

(ix)

Departmentation : Departmentation is the process of grouping
activities into units for purposes of administration
...
The main advantages of departmentation are that
171

it enables individual executive to mange his subordinates effectively
since a manageable number of persons are brought under the direct
supervision of individual executive
...
It is done so, it will
satisfy the test of efficiency
...

Similarly, from the social point of view, an organization will be
efficient when it contributes the maximum towards the welfare of
the society
...
Proper scalar
chain or line of command is prerequisite for effective organization
...
There
should be one plan or programme for each segment of work which is
to be carried under the control and supervision of one head or
superior
...


(xiii) Continuity : The form of organization structure should be such
which is able to serve the enterprise to attain its objectives for a long
period of time
...
Unity of efforts for the
accomplishment of desired objectives is the main aim of

172

organization
...

(xv)

Authority and responsibility : Authority should commensurate
with responsibility
...
If authority is not granted, the subordinates
cannot discharge their responsibility properly
...
7

ADVANTAGES OF ORGANISATION
The primary duty of management is to achieve the objectives of the
enterprise
...

Proper organization of men, materials, money and equipment is necessary
...
A sound organization offers the
following advantages, which summarizes its importance :
1
...
It avoids confusion,
duplication and delays in work
...
It reduces the work load of executives
by delegation of authority
...


Growth, expansion and diversification : Organization provides the
framework within which an enterprise can expand and grow
...
In a
good organization, the money and effort spent on different activities
are in proportion to their contributions
...

173

3
...
Various activities are allocated between
different individuals according to their qualifications, experience and
aptitude
...
Systematic organization of
activities helps to secure economics and to minimize costs
...


Adoption of new technology : A properly designed and wellbalanced organization permits prompt adoption and optimum use of
technological improvements
...
A good organization helps in the development of new
and improved means of doing things
...


Coordination : Organization facilitates coordination of diverse
activities
...
Clear lines of authority and responsibility
between various positions, ensure mutual cooperation and harmony
in the enterprise
...


6
...
A good organization puts 'right man at the right job' and
provide

them

right

training

and

managerial

development

programmes
...

7
...
Employees are motivated
to break new grounds and try unconventional methods
...

8
...
Well organized, welldefined, disciplined and sound organizations boost the morale and
motivation of workers
...
It
prevents corruption, inefficiencies and wastage in an enterprise
...


Proper weightage to all activities : A sound organization divides
the entire enterprise into different departments, sections and subsections according to the functions to be performed by them
...
Emphasis is
given according to their relative importance
...


10
...
A dedicated
and satisfied group of persons proves an asset to any establishment
...
With properly defined authority, responsibility and
accountability, different persons enjoy job-satisfaction
...


Thus, organization is the foundation of management
...
It not only facilitates efficient administration but also
encourages growth and diversification
...


175

6
...
In this form
instructions, responsibility, authority, accountability, lines of command,
and positions and authority are clearly defined and declared
...
Every subordinate is expected to obey his
supervisor in the formal chain of command
...
It is designed after careful
identification, classification and assignment of business activities
...

Informal organization refers to the network of personal and social
relationships which arise spontaneously when people working together
interact on personal whims, likes and prejudices
...
The
informal groups sometimes run parallel to the formal ones
...
An informal
organization provides an opportunity to workers to come close to each
other, develop a feeling of cooperation and coordination among themselves
...


Formation : Formal organization is deliberately created by
management
...
On the other hand, informal
organization arises spontaneously and no conscious efforts are made
to create it
...
No delegation of authority
is essential in informal organization
...


Basis : A formal organization is based upon rules and procedures,
while an informal organization is based upon attitudes and emotions
of the people
...


3
...
But
an informal organization is neither stable nor predictable
...


Set up : A formal organization is a system of well defined
relationships with a definite authority assigned to every individual
...
On the contrary, an
informal organization has no definite form and there are no definite
rules as to who is to report to whom
...


5
...
In an informal organization the stress is on
people and their relationships
...


Authority : Formal authority is attached to a position and it flows
from top to bottom
...


7
...
But an informal
organization exists within the framework of a formal structure
...


Rationality : A formal organization operates on logic rather than on
sentiments or emotions
...

As an association between like-minded people, an informal
organization has little rationality behind it
...


9
...
But an informal organization cannot be depicted
in the chart or manual of the enterprise
...
9

FORMS OF ORGANISATION STRUCTURE
Organization requires the creation

of structural relationship among

different departments and the individuals working there for the
accomplishment of desired goals
...
In order to organize
the efforts of individuals, any of the following types of organization
structures may be set up : (i) Line organization, (ii) Line and staff
organization, (iii) Functional organization, (iv) Committee organization, (v)
project Organization, and (vi) Matrix organization
...
9
...
It is the simplest from of
organization structure and is also known as scalar or military organization
...
The quantum of authority is highest at
the top and reduces at each successive level down the hierarchy
...
1
General Manager
Production
Manager

Finance
Manger

Marketing
Manager

Superintendent

Asstt
...

Marketing
Manager

Foreman

Accountants

Sale
Supervisors

Workers

Clerks

Salesmen

Fig
...
1 : Line Organization
In line organization, the line of authority consists of an uninterrupted series
of authority steps and forms a hierarchical arrangement
...

Advantages of Line Organization
(i)

It is very easy to establish line organization and it can be easily
understood by the employees
...


179

(iii)

There is clear-cut identification of authority and responsibility
relationship
...


(iv)

It ensures excellent discipline in the enterprise because every
individual knows to whom he is responsible
...
An executive cannot shift his decision
making to others, nor can the blame be shifted
...
If the executive try to keep up with every
activity, they are bogged down in myriad details and are unable to
pay proper attention to each one
...


(ii)

There is concentration of authority at the top
...


(iii)

Line organization is not suitable to big organizations because it does
not provide specialists in the structure
...


(iv)

There is partially no communication from bottom upwards because
of concentration of authority at the higher levels
...


In spite of these drawbacks, the line organization structure is very popular
particularly in small organizations where there are less number of levels of
authority and a small number of people
...


6
...
2 Line and Staff Organization
The line executive is often described as the individual who stands in the
primary chain of command and is directly concerned with the
accomplishment of primary objectives
...
Line executives are generalists and do not possess
specialized knowledge which is a must to tackle complicated problems
...
Staff elements bring expert and
specialized knowledge to provide advice to line managers so that they may
discharge their responsibilities successfully
...
Authority flows from top to bottom
...
These specialists stand ready with their specialty to
serve line men as and when their services are called for to collect
information and to give help which will enable the line officials to carry out
their activities better
...
Staff means a supporting function intended to help the line
manager
...
Staff investigates and
supplies information and recommendations to managers who make
decisions
...
2
Line Authority

Board of Directors

Staff Authority

Executive

Managing

Controller

Committee

Director

of Finance

Assistant to
Managing
Director

Manager

Manager

Manger

Division A

Division B

Division C

Fig
...
2 Line and Staff Organization
Line and staff structure has gained popularity because certain problems of
management have become very complex and, in order to deal with them,
expert knowledge is necessary which can be provided by the staff officers
...
Similarly, finance, law and
public relations departments may be set up to advice on problems related to
finance and accounting, law and public relations
...
In most

182

organizations, the use of staff can be traced to the need for help in handing
details, gathering data and offering advice on specific managerial problems
...
Line managers get the benefit of
specialized knowledge of staff specialists at various levels
...
Staff specialists relieve the line managers of
the botheration of concentrating

on specialized functions like

accounting, selection and training, public relations, etc
...
Many problems that are ignored or poorly
handled in the line organization can be properly covered in the line
and staff organization by the use of staff specialists
...
Staff specialists help the line executives in taking
better decisions by providing them with adequate information of
right type at the right moment and expert advice
...
Line and staff organization is more flexible as compared
to the line organization
...


(vi)

Unity of command
...
It is the line manager who only has
got the right to give orders
...
e
...


Demerits of Line and Staff Organization
Line and staff organization suffers from the following drawbacks :
(i)

There is generally a conflict between the line and staff executives
...

183

Line managers feel that staff specialists do not always give right type
of advice, and staff officials generally complain that their advice is
not properly attended to
...
This may hamper coordination in the
organization
...


(iv)

There is a wide difference between the orientation of the line and
staff men
...
But staff officials who are specialists in their fields tend to
be more theoretical
...
This is
necessary to deal with complex problems of management
...


(ii)

Better decisions are ensured in line and staff organization as
compared to a simple line organization
...
The line managers can make use
of the knowledge of staff specialists to deal with complicated

184

problems
...

6
...
The first meaning refers
to the process of organizing
...
The organizing
process involves a number of steps, viz
...
There are a number
of principles of organizing, which should be remembered in the process of
organizing
...
11

SELF ASSESSMENT QUESTIONS

1
...


2
...


3
...


4
...


"Organization is an important tool to achieve organizational objectives,"
Comment
...


What do you understand by informal organization? How does it differ from
a formal organization?

7
...


8
...
Discuss their respective merits and demerits
...
12

SUGGESTED READINGS

1
...


2
...
Drucker, Practice of Management

3
...
S
...


4
...


186

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
Harbhajan Bansal

AUTHORITY AND RESPONSIBILITY
Objective:

After reading this lesson you should be able to understand meaning
and sources of authority; to distinguish between delegation and
decentralization; to appreciate advantages and disadvantages of
decentralization; to understand relationship between Authority and
Responsibility;

to

distinguish

between

Responsibility

and

Accountability
...
1
7
...
3
7
...
5
7
...
7
7
...
9
7
...
11
7
...
13
7
...
15
7
...
17
7
...
19
7
...
1

THE CONCEPT OF AUTHORITY
Authority is a legal power which is possessed by a person from his superior
officers and with the help of which he succeeds in getting the things done
by his sub-ordinates
...
If the
managers do not possess required authority, they will not be able to
perform their duties properly
...
It is the authority which
enables him to discharge the important functions of planning, coordination, motivation and controlling etc
...
If proper
authority is not vested in him, he cannot perform these functions in the
required manner and he cannot be held responsible for all these functions in
the absence of proper authorities
...

Definitions

•

"Authority is the right to give order and the power to exact
obedience"
...


–

Koontz and O'Donnell

While concluding the meaning of authority it can be said that authority in
ordinary sense of the term is nothing more than a legal right
...
He is given a right to command and to
exercise control over those who are responsible for the execution of policies
and programmes of the enterprise
...

7
...


Favourable Atmosphere : For the implementation of authority,
favourable atmosphere must be created in the enterprise so that
sweet human relations may be established in the enterprise
...


Justified Behaviour : The second important use for successful
implementation of authority is the justified behaviour of the officers
towards their subordinates
...
If they do not do so, the employees
may not contribute their efforts towards the attainment of objectives
of enterprise
...


Mutual Co-operation and Faith : There must be mutual cooperation and mutual trust between officers and employees of the
enterprise for the successful use of authority
...


Interest in the work : A very important condition of the successful
use of authority is that the employees must have an interest in the
work for which they are responsible
...


5
...
If they do not have a feeling of regard for them, they may not
obey their orders
...
3

SOURCES OF AUTHORITY

189

There are three different schools of thought about the sources of authority
which are discussed below :
1

Formal Authority Theory
According to this theory, all authority originates in the formal
structure of an organization
...
Shareholders entrust the
management of the company to the Board of Directors and delegate
to it most of their authority
...
Every manager or executive
possesses authority because of his organizational position and this
authority is known as formal authority
...
Subordinates accept the formal
authority of a manager because of his position in the organization
...
The formal authority theory further
states that the superiors have the right to delegate their authority
...


2

Acceptance Theory
This theory states that authority is the power that is accepted by
others
...
The subordinates accept the authority
if the advantages to be derived by its acceptance exceed the
disadvantages resulting from its refusal
...


(b)

Contribution in attaining the objectives of the enterprise
...


(d)

Appreciation from colleagues
...


(f)

Responsibility to leadership of superior

(g)

Moral obligation because of regard for old age, experience,
competence, etc
...

A manager has authority if he gets obedience from the subordinates
...
This theory emphasizes sanctions that a manager
can use and overlooks the influence of social institutions like trade
unions
...

Many persons derive informal authority because of their
competence
...
People will go to him for guidance in that matter
even though he has got no formal authority
...
4

MEANING AND SOURCES OF POWER

191

Power is a method of operating in order to influence the behaviour of
others
...
The power-centres need not necessarily
be located at the position of higher authority
...

Power may be defined as "the ability to exert influence
...

In any organization for sound organizational stability, power and right to do
things must be equated, when power and authority for a given person or
position are roughly equated, we may call the situations as "Legitimate
Power"
...
They have written that there are five
sources of power which are found at all levels of the organization
...
It
exists when an influencer acknowledge that the influencer is
lawfully entitled to exert influence
...


(ii)

Reward Power : This power is based on the influencer having the
ability to reward the influence for carrying out orders
...


192

(iv)

Referent Power : It is based on the influencer's, desire to identify
with or imitate the influence
...


(v)

Expert Power : This power is based on belief that the influencer has
some relevant expertise or special knowledge that the influence does
not have
...


In having the study of power the role of the influence in accepting or
rejecting the attempted influence is very important
...

Difference between 'Authority' and 'Power'
If we study from close in practice the terms 'Authority' and 'Power' are
generally used interchangeably but there is a clear-cut difference between
these two words and they are as follows :
1
...


2
...
Authority
includes the right to exercise which have been institutionalized
...


Positional and Legitimate : Authority is always positional and
legitimate and is conferred on the position
...
It is acquired by people in various
ways and then exercised upon others
...


193

4
...

In actual practice – the power centres may be located at the power
levels in the organization
...


5
...
Some individuals
may have more power and less authority or more authority and less
power
...


6
...


7
...
The lower we go down the lesser is the
authority
...
5

DELEGATION OF AUTHORITY AND ITS METHODS
Delegation means devolution of authority on subordinates to make them to
perform the assigned duties or tasks
...
Delegation consists of
granting authority or the right to decision-making in certain defined areas
and charging the sub-ordinate with responsibility for carrying through the
assigned tasks
...

1
...
G
...
"

2
...
Allen has said – "Delegation is the dynamics of
management, it is the process a manager follows in dividing the
work assigned to him so that he performs that part which only he,
because of his unique organizational placement, can perform
effectively and so that he can get others to help him with what
remains"
...


E
...
L
...
e
...
He goes on to say
that the delegation is not a question of issuing instructions but is a
bringing down of the executive's responsibility and transmission of
part or all of it to other persons
...
G
...
" Without delegation says
S
...
Chatterjee, "The very existence of organization is shattered at once
...
Management of that organization becomes impossible
without delegation
...

METHODS OF DELEGATION

195

In a big manufacturing concern the following may be the methods of
delegation of authority to ensure better result, unified direction and
command and effective delegation :
1
...
These functions are generally of routine
nature, e
...
to maintain discipline, to supervise the work, to
recommend for the reward or punishment etc
...


Geographical Delegation – When the work of enterprise is located
at different distant places it is not possible for an executive to mange
the whole affairs single handed
...
This is known as geographical
method of delegating the authority
...


Functional Delegation – When the enterprise is organized on the
basis of functional organization, the delegation of authority is also
done on the functional basis
...


4
...
Here the authority is
delegated in order to get the advantages of expert and experienced
hands and their technical skill
...
6

ELEMENTS OF DELEGATION AND ITS TYPES
The elements of delegation of authority involve three steps :

196

1
...
This may include right to use
resources, spend money, engage people, etc
...


Responsibility : The superior entrusts some responsibility or duty to
a subordinate
...


Accountability : The last step in delegation is concerned with
creating an obligation to carry out duty or responsibility and render
an account of the results achieved through the use of delegated
authority
...
By accepting the duties and authority, a
subordinate becomes responsible to his superior
...
6
...

It includes such rights or powers as that spending money, of using
certain kinds of quantities of materials, of hiring and firing people
...
Authority of knowledge according to him is possessed
generally by the staff specialists appointed by the company
...
Similarly, some persons
acquire authority by virtue of their position
...
A Private Secretary to Managing Director or even a Staff
Assistant may have no formal power and authority
...

A company, for instance, is a legal person which enjoys several
rights under the Companies Act
...
Authority is a
197

building force in an organization and is the key to the executive job
...

7
...
2 Responsibility : Responsibility represents the work or duties
assigned to a person by virtue of his position in the organization
...
That means every person who performs
some kind of mental or physical activities as an assigned task has
responsibility
...
In other words, the delegator must
determine clearly the task or duty that is assigned to the delegatee
...
If a subordinate is asked to control the operations of a
machine, the duty is in terms of function
...
Determination of duties in terms of objective
will enable the subordinate to know by what standards his
performance will be evaluated
...
In one, it denotes the definition of a part or
role to be performed in administration
...
Two meanings are
reciprocal
...
Taken in this
sense, many authors have held that responsibility cannot be

198

delegated
...
In fact, it is the accountability which cannot be delegated
...

Responsibility or duty implies the task assigned to a person to be
completed in accordance with the standards laid down
...
He should not find any
difficulty in expecting it because his superior knows his plus and
minus points at work
...
In fact he has divided and subdivided the task pertaining to this division in such a manner that
each one of his subordinates gets the task of his choice
...
If he does so, there are other ways to remedy the
situation
...
In this process,
though he may hold his subordinate accountable for the task
delegated to him, but he continues to be accountable to his own boss
on the ground that accountability can never be delegated
...
In other words, there must be a
balance between responsibility and authority
...


199

According to McGregor, the realities of business place most
managers in situations where they cannot effectively control
everything that affects the results they are attempting to achieve
...
The recognition of these problems
does not reduce or destroy the utility of this concept
...
Many factors prevent a
superior to delegate sufficient authority
...
Real or presumed non-availability of qualified
subordinates, lack of delegating skills and enhancement of one's
indispensability are the other factors which cause an imbalance of
responsibility and authority
...

Responsibility can not be delegated or transferred
...
But he can not delegate responsibility in the sense that
once duties are assigned, he is relieved for his responsibility for
them
...
In
other words, we can say that responsibility is divided into two parts
at the time of delegation : (a) operating responsibility; and (b)
ultimate responsibility
...


The

superior

retains

ultimate

responsibility for getting the job done
...
To explain that

200

the ultimate responsibility cannot be shifted or reduced by assigning
duties to another
...
This
transaction with his son in no way reduces his own obligation and
responsibility to repay the money to the bank
...
It is specific when on
being discharged by a subordinate it does not arise again
...
It ceases when the assignment
is completed
...

7
...
3 Accountability : Accountability is a logical derivative of authority
...
In other words, the subordinate undertakes an obligation to
complete the assignment by the fair use of authority and account for
the discharge of responsibility assigned
...
Creation of accountability is the process of justifying
the granting of authority to a subordinate for the accomplishment of
a particular task
...
An important
principle of management governing this basic relationship is that of
single accountability
...


201

The extent of accountability depends upon the extent of delegation
of authority and responsibility
...
For instance, if the
production manager is given responsibility and authority to produce
a specified quantity of certain product and the personnel department
is given responsibility and authority for the development of
workforce, the production manager cannot be held accountable for
the development of workforce
...

7
...
4 Accountability cannot be delegated : Though it is incurred as a
result of assignment of duty and conferring of authority,
accountability in itself cannot be delegated
...
He remains accountable to his superior for
that which the latter has delegated to him
...

TYPES OF DELEGATION
The important kinds of delegation of authority are as follows :
1
...
The sub-ordinate
managers perform these functions and enjoy the authority
required to carry out these responsibilities
...


202

(ii)

The Specific Delegation : Specific Delegation relates to a
particular function or an assigned task
...
Various departmental
managers get specific authority to undertake their department
duties
...


Formal or Informal Delegation :
(i)

Formal Delegation : Formal delegation has been considered
as a part of organizational structure
...
This delegation is a part of the normal functioning of the
organization
...
When production manager gets powers to
increase production then it is formal delegation of authority
...
A person may undertake a particular task not because he
has been assigned it but because it is necessary to do his
normal work
...


Written or Unwritten Delegation :
(i)

Written Delegation : Written delegation is normally given
through letters, instructions, circulars etc
...


(ii)

Unwritten Delegation : Unwritten delegation is given to the
person concerned not in any particular way but through
conventions, customs and usages the other party has to do
work accordingly
...


Downward or Upward Delegation
(i)

Downwards Delegation : Downwards delegation is a
common type of delegation and is used in every type of the
working concern
...

(ii)

Upward Delegation : This type of delegation takes place
when a subordinate assigns some of his tasks to his superiors
...


7
...
He should
define clearly the objectives to be achieved and the functions to be
performed by delegating the authority
...
The
subordinates must understand clearly what activities they must
undertake and what delegator expects from him
...
The
qualification of the individual concerned may influence the nature of
the delegation of authority
...


204

(iii)

Maintain purity of authority and responsibility : Authority
should be delegated commensurate with responsibility
...
Although
technically it would be inaccurate to stress the questions of equality
as the executive does without a certain amount of authority, there
must be adequate correlation between duty and authority delegated
...
Of course, in practice,
it is not possible to follow this principle
...
Plans may change and
decisions have to be taken in the light of the changed conditions
...
This will provide a
proper environmental climate for fuller delegation and effective
assumption of authority
...


205

(viii) Establish a strong belief in delegation: For delegation to be
successful, the man who delegates must himself be convinced of the
need and benefits of delegation
...

(ix)

Proper Selection and Training of Personnel : Selection of
personnel to various jobs should be fair and just
...
Only right
persons should be placed on the right job
...
Proper selection
and training helps to develop their self-confidence and morale
...
There should be no interference in dayto-day functioning of subordinates
...
8

VARIOUS STEPS IN THE PROCESS OF DELEGATION
The following steps are essential and they must be kept in mind while
delegating :
1
...


2
...
They may be described either in
terms of activity or set of activities to be performed by a subordinate or
in terms of results that are expected from the performance of
activities
...

The delegator must ensure that subordinates understand and accept
the assignment, otherwise delegation would be meaningless or
ineffective
...


Adequate authority must be given to sub-ordinates – The authority to
be delegated to each particular sub-ordinate is determined in
advance
...
It decides what actions
we may take and what action we cannot take
...

For Example : A sales manager, charged with the responsibility of
increasing sales of company's product should be given authority to
hire competent salesmen, pay wages and incentives, allow
concessions, within specified limits
...


The subordinate must produce expected results from the task
assigned to him – It is obligatory on the part of the subordinate that
he must give satisfactory performance from the tasks assigned
...
Authority
without accountability is likely to be misused
...
The extent
of accountability depends upon the extent of delegated authority and
responsibility
...
He is accountable only to his
immediate superior
...


Proper Evaluation of the Performance must be made – In the end,
information and control system must be established to check and
evaluate the performance of the subordinates to whom authority has
been delegated
...
In this
connection an eminent authority H
...
Newman has said – "These
three inevitable attributes of delegation are like a three legged stool,
each depends on the others to support the whole and no two can
stand alone
...
Allen can follow the
undermentioned rules while delegating :
1
...


2
...


3
...
If necessary proper and adequate training should
also be given to the delegatee before authority is delegated to
him
...


Ask for the completed work
...


208

5
...


7
...
A manager has to perform various functions as a matter of
routine work
...
Delegation helps him in transferring the less
important subject to his juniors and attends to more important works
...

They become aware of the works at the higher level to which they
may be promoted
...


(iii)

It avoids over-work : Delegation shifts some portions of the
responsibility and work from the shoulders of the manager
...


(iv)

It develops increased sense of responsibility : Delegation generates
an increased sense of responsibility in the subordinate personnel
...

Delegation also helps in avoiding any kind of act at a higher level
which may, otherwise undermine the powers vested in the lower
level units
...
The personnel at lower level, being delegated, act quickly
which serves the organization with due economy, efficiency and
rapidly
...
10

RELATIONSHIP OF AUTHORITY AND RESPONSIBILITY
In every business unit, internal organization is necessary for its efficient
and smooth running
...
All activities are combined and coordinated
...

In the internal organization of any concern, there must be a proper
assignment of duties among the various personnel
...
The former
people have an authority
...
The
relationship of authority and subordination among the various personnel
and groups should be properly determined
...
e
...
This work is very important
...
The greater the responsibility
attached to a post, the higher will be the position of the person holding the
post, in the hierarchy
...

When the duties are assigned, there will be two types of employees
...
The former occupy a
superior position, while the latter are placed in a subordinate position
...
It is the supreme coordinating power and is very

210

important for the managerial job
...
Every subordinate has to perform the duty assigned to him
...
It arises from the superiorsubordinate relationship
...
Authority seems to flow from the superiors to the subordinates
...
Persuasion is the best means
...
But authority can be delegated
...
Authority cannot be concentrated in the hands of one or a few
individuals
...
But it is not really so
...
This will help in developing
good industrial relations among all the employees
...
People use the
word responsibility in different senses as referring to a duty, an activity or
an authority
...

Thus, obligation is the essence of responsibility
...
In case of business, this authority is generally a result of the
contractual arrangement under which the subordinate has agreed to perform
certain services in return for a monetary reward
...
Responsibility can be discharged by a single
action or it may be a continuous obligation
...
11

DISTINCTION BETWEEN AUTHORITY AND ACCOUNTABILITY
The term 'Accountability' is used by a few writers in the field of
management to indicate the managers’ liability for the proper discharge of
the duties by his subordinates
...

Thus, the three words confusingly used in varying sense in management
literature are authority, responsibility and accountability
...
One is thus accountable for failures
to his boss
...
To carry out
responsibility, a manager requires adequate authority or power
...
12

DISTINCTION BETWEEN RESPONSIBILITY AND DELEGATION
Whilst a manager can delegate his authority to his subordinates,
responsibility cannot be so delegated
...
Therefore, delegation does not
absolve a manager of his own responsibilities to perform his duties
...
For example, the
managing director of a company employed by the board of directors cannot
avoid total responsibility for the conduct of the enterprise
...
A manager cannot relieve
himself of his responsibility although he can delegate authority and assign
duties to his subordinates
...
13

DIFFICULTIES IN DELEGATION
There is a fear aspect in delegation which plays a dominant role in a
decision as to "what to delegate" and "to whom to delegate"
...
It is natural
that the executives may not like to lose either the grip or control over the
operation
...
They feel that the subordinates
are not capable of shouldering the responsibility, therefore, the question of
delegation of authority does not arise
...
They know for
certain that though they occupy a position of strength but their knowledge
and skill are not up to the mark
...
No executive would like to delegate
when he feels that his subordinate may surpass him
...
They are :
1
...


Fear of not a better performance by the sub-ordinate to whom the
authority may be delegated; and

3
...


The above difficulties arise out of –
(i)

Luck of mutual confidence;

(ii)

Non-existence of atmosphere of team-work;

(iii)

Non independence in thinking and behaviour;

(iv)

No proper and ambiguous definition of common goals to be
achieved;

(v)

No inter-exchange of ideas and suggestions;

(vi)

No favourable management climate;

(vii)

Existence of element of fear and frustration ; and

(viii) Incapable hands manning the executive positions
...
Every effort should be
made to encourage delegation
...
It develops the personality of the subordinates and helps in
evaluating the managerial performance
...
A favourable
management climate should be created for encouraging delegation
...
14

MEANING OF DECENTRALISATION
Decentralization is a word that we frequently hear take about by political
leaders and business managers
...
Most people
do not have a clear view of what decentralization is and, as often as not
when an organization is having "decentralization", it is for the wrong
reasons and in the wrong way the term is understood and used
...


He

states

that

whenever

decentralization is greater
...


The greater is the number of decisions made at lower levels;

2
...


The more is the number of areas in which decisions can be made at
lower levels; and

4
...


The way many people use the term, decentralization mean about the same
thing as delegation–simply pushing authority down to subordinates
...
Decentralization
is a philosophy of the organization and management, one that implies both
selectively determining what authority to push down into the organization;
developing standing plans (such as policies) to guide subordinates who
have this authority delegated to them; and implementing selective but
adequate controls for monitoring performance
...


215

According to McFarland, decentralization is a situation in which ultimate
authority to command and ultimate responsibility for results is localized as
far down in the organization as efficient management of the organization
permits
...
Thus, decentralization means reservation of
some authority (to plan, organize, direct and control) at the top level and
delegation of authority to make routine decisions at points as near as
possible to where action takes place
...
14
...


Delegation

means

demi-transfer

of

responsibility and authority from one individual to another
...
It is the diffusion of authority within the entire
enterprise
...
But decentralization is completed only when
the fullest possible delegation is made to all or most of the people
...
It should be noted that complete decentralization may not
be possible or desirable, but it certainly involves more than one level
in the organization
...
Dispersion occurs when plants and offices are located at
different places with physical distance between them
...
Decentralization can proceed without separation of
facilities and facilities can be separated without decentralization
...
Thus,
decentralization can take place even without dispersion
...
Some people believe
that a company can decentralize by changing its organizational
structure
...
Decentralization may be achieved even
without changing the organizational structure as it refers primarily to
the systematic delegation authority throughout the organization
industries in which markets are less uncertain, production processes
technologically less dynamic and competitive relationships more
stable, tend to become more centralized
...
14
...
The division in which a variety of day-to-day
217

production, marketing, and personnel decisions are monitored is less
decentralized;
(ii)

The greater the discretion permitted by the company's policies,
procedures and rules, the greater the decentralization;

(iii)

The greater the breadth of decision in terms of the number of
functions they cover, the more the decentralization
...
500,000 is more decentralized than one in which they
are authorized to make these decisions up to a limit of Rs
...


7
...
3 Advantages of Decentralization
218

The merits of decentralization are listed below :
(i)

It leads to a competitive climate in the organization
...
As a result, the level of motivation of the employee
increases;

(iv)

It encourages initiative at lower levels where the employees are
allowed to participate in the decision-making process;

(v)

Decision made closer to the actual situations is likely to be more
realistic
...


7
...
4 Disadvantages of Decentralization
(i)

It increases the administrative cost due to duplication of specialized
services and the appointment of capable executives at lower levels;

(ii)

It becomes difficult for top management to exercise control over
what people at lower levels are doing or even to know what
decisions they are taking;

(iii)

Emergency situations cannot be tackled properly in decentralized
structure
...


7
...
DELEGATION
Though both delegation and decentralization are related concepts, but the
distinction between the two terms must be clearly understood
...
In other words,
decentralization is diffusion of decision making authority throughout
the multiple layers of the organization;

(ii)

Decentralization is simply not an extension of delegation
...
But, on the other hand, decentralization
refers to structural dispersal of authority for decision making in
various

facts

of

organizational

operations

throughout

the

organization in the form of semi autonomous units, subject to overall
control by the top management
...
It may consist of certain tasks alone
...


220

(v)

Sheer pressure of managerial workload forces managers to delegate
a part of their burden to their subordinates, as a matter of necessary
with few alternatives
...
This means
that

delegation

of

authority

could

take

place

without

decentralization, whereas there can be no decentralization without
delegation of authority
...
But in a decentralized
setting, direction is to a large extent substituted by control by the top
management
...


7
...
Centralization denotes that a majority of the decisions having to do

221

with the work being performed are not made by those doing the work but at
a point higher in the organization
...

Centralization represents certain attitudes and approaches which the
management follows
...
The other implications will depend on
the philosophy of management
...

Centralization of authority has certain merits also
...
They may involve considerable cost
and delay in making the decisions
...

Because of these disadvantages, absolute centralization is not found in
practice
...

It should be noted that complete decentralization is also not a feasible
proposition of creating an effective organization structure
...
Greater the
reservation of authority at the top level, higher is the degree of
centralization and lower is the degree of decentralization and vice-versa
...
17

CENTRALISATION VS
...
On the one hand, centralization brings uniformity of policy and

222

action, utilizes the skills of centralized and specialized staff, and enables
closer control over operating units
...
Decentralization has the effect of motivating the
subordinates since they have a greater share in management decisionmaking
...
It is
not possible to conceive of an organization which is exclusively centralized
as some decentralization of authority is bound to exist
...
The issue of centralization and decentralization has to be
decided objectively taking into consideration the size and nature of
enterprise, diversity of the company's product, economies of division of
labour, location of markets, nature of services to be performed, availability
of trained and efficient managers, philosophy of management, etc
...


7
...

Authority being the sum of the powers and rights entrusted to make
possible the performance of the work delegated
...
Formal delegation is the delegation of authority as per the
organizational structure
...
The other type of delegation is bottom up or
lateral delegation
...

There are three elements of delegation and these are (i) authority (ii)
responsibility and (iii) accountability
...
Responsibility denotes the
work or duties assigned to a person by virtue of his position in the
organization
...
It is the
obligation to carry out responsibility and exercise authority in terms
...


Decentralization is a philosophy of organization which involves both
selective delegation and concentration of authority through the imposition
of policies and adequate controls
...


224

7
...


What are the types of authority? What are the sources of authority?

2
...


State the advantages and limitations of decentralization

7
...
Comment
...


"Centralization is not necessarily bad, no is decentralization necessarily
good"
...


6
...
Elucidate
...


What is the relationship between delegation, control and accountability?

8
...
What
are the factors that govern the degree of decentralization in an organization?

9
...
20

Authority and responsibility

Authority and accountability

SUGGESTED READINGS

225

1
...


2
...
Basil, Leadership Skills for Executive Action, American
Management Association, New York, 1971, p
...


3
...
F
...
, Brech, The Principles and Practice of Management, Sir Pitman &
Sons, London
...


Chhabra, T
...
and Suri, R
...
, Management Process and Perspectives, Ist
edition 2000, Kitab Mahal
...


Prasad Manmohan, Management Concepts and Practices, Ist edition 1998;
Himalaya Publishing House
...
Karam Pal

Lesson No: 08

Vetter: Dr
...
K
...


Lesson Structure:
8
...
2

Sources of Recruitment

8
...
4

Stages in Selection Procedure

8
...
6

Summary

8
...
8

Further Readings

227

8
...
If a right candidate is not selected, such an error can
prove to be very costly for an undertaking
...
Manpower
planning must precede recruitment and selection
...

Recruitment is a positive process of searching for prospective employees
and stimulating them to apply for the jobs in the organization
...
The scientific recruitment leads to
greater productivity, better wages, high morale, reduction in labour
turnover and better reputation
...


8
...
When a
vacancy arises in the organization, it is offered to an employee who
is already on the pay roll
...
When a higher post is given to an employee who deserves
that post, it stimulates all other employees of the organization to
work hard
...


228

1
...
At the time of transfer, it is ensured that the employee
to be transferred to the new job is capable of performing it
...
On the other hand, promotion leads to
shifting an employee to a higher position carrying higher
responsibilities, facilities, status and pay
...


Promotion : Many companies follow the practice of filling higher
jobs by promoting employees who are considered fit for such
positions
...
Generally every employee expects
promotion to a higher post (carrying more status and pay) if
he fulfils the requirements
...


(c)

Promotes loyalty : It promotes loyalty among the employees
as they feel secured on account of chances of advancement
...


(e)

Economy in training costs : The existing employees are
fully aware of the operating procedures and policies of the
229

organization
...

(f)

Self-development : It encourages self-development among
the employees since they can look forward to occupy higher
posts
...


(ii)

It is possible that the requisite number of persons possessing
qualifications/experiences skills/attitudes required for the
vacant posts may not be available in the organization
...


(iv)

If only seniority is the criterion for promotion then the person
filling the vacant post may not be really capable
...

(B)

External Sources
Every enterprise has to tap external sources for various positions
...
The following external sources of recruitment are
commonly used by the enterprises :

230

1
...
It is
also known as recruitment at factory gate
...
Such workers are
known as casual or badly workers and they are paid
remuneration on daily wage basis
...


Unsolicited Applications : Many qualified persons apply for
employment to reputed companies on their own initiative
...
They
serve as a good source of manpower
...

In a country like India, where there is large scale
unemployment, unemployed persons also contact the
employment sections of various organizations to ascertain if
they can be casually employed
...
It does not involve any cost of
advertising the vacancies
...
This is the
cheapest method of getting labour supply on an adhoc basis
...


Advertisements : Advertising the job has become a fashion
of the day with the large scale enterprises, particularly when
the vacancy is for a higher post or when there are a large
number of vacancies
...
This method
231

increases the choice of the management
...
Usually, this method brings in a
flood of response from quite unsuitable candidates
...
Therefore,
advertisement copy should be drafted in such a way that only
the suitable candidates are tempted to apply
...


Employment Agencies : Employment exchanges run by the
Government are regarded as a good source of recruitment for
unskilled, semi-skilled operative jobs
...
However, in the technical and
professional areas, private agencies and professional bodies
appear to be doing most of the work
...
They
bring the job givers in contact with the job seekers
...


Education Institutions : Jobs in industry have become
increasingly varied and complexed to the point where school
and college degrees are widely required
...
Recruitment from educational
institutions is a well-established practice of thousands of
business and other organizations
...

6
...
Workers are
recruited through labour contractors who are themselves
employees of the organization
...
This system of recruitment is losing popularity
these days
...


7
...
Indeed, many employers prefer to take
such persons because something about their background is
known
...
Some organizations have agreements with the unions
of employees to give preference to close relatives of existing
or retired employees if their qualifications and experience are
suited to the vacant jobs
...


(b)

Under this system of recruitment, fresh viewpoints are
attracted
...
The concern has to make
huge expenditure on advertisement, holding of written test,
interview, training, etc
...


(c)

This system of recruitment results in young men being placed
over the older and more experienced persons of the lower
services
...


8
...
It divides the candidates for employment into two categories,
namely, those who will be offered employment and those who will not be
...
That is why, selection is frequently described as a
negative process in contrast with the positive process of recruitment
...
In order to achieve this
purpose, a well organized selection procedure involves many steps and at
each step more and more information is obtained about the candidates
...


Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organization
...

2
...


3
...
But selection aims at eliminating
unsuitable candidates and ensuring most competent people for the
jobs
...


Recruitment is a relatively simple process as the candidates are
required to fill in the prescribed forms and deposit with the
employer
...


Significance of Selection
Selection has become a critical process these days because it requires a
heavy investment of money to get right types of people
...
If the right types of persons are not chosen, it
will lead to a huge loss of the employer in terms of time, effort and money
...
Each step
in the selection procedure should help in getting more and more
information about the applicant to facilitate decision-making in the area of
selection
...
The intensity of these problems
can be reduced if, in the future, all selections are made carefully so that
there are 'round pegs in the round holes'
...
Such
employees will shirk work and absent themselves from the work quite
often
...
If this happens, all
the expenses incurred on the selection and training of such employees will
go waste
...
It keeps the rates of absenteeism and
labour turnover low and increase the morale of the employees
...
This enables the organization to
achieve its objectives effectively
...
4

STAGES IN SELECTION PROCEDURE
There can not be a rigid procedure of selection suitable for all types of
organizations as shown in Fig
...
The number of steps in the selection
procedure and the sequence of steps vary from organization to organization
...
Similarly, in some cases, medical examination is given before
final selection and in others, medical check up follows final selection
...
However, the main steps which could be incorporated in the
selection procedure are discussed below :

Receiving Applications
Screening of Application

236

Employment Tests

Rejection of

Interview

Unsuitable

Background Investigation

Candidates

Medical Examination
Final Selection

Fig
...


Preliminary Interview : In most of the organizations, the selection
programme begins with preliminary interview or screening
...
The preliminary
interview offers advantages not only to the organization, but also to
the applicants
...
Preliminary interview may take place
across the counter in the organization’s employment office
...
It may
serve primarily to determine whether it is worthwhile for the
applicant to fill in an application blank
...


2
...
Standard application

237

forms may be drawn up for all jobs and supplied to the candidates on
request
...
It gives a
preliminary idea of the candidate to the interviewer and helps him in
formulating the questions to be asked from the candidate
...
may
prove to be of great value to the interviewers
...

3
...
Applicants may be called for
interview on some specific criteria like gender, desired age group,
experience and qualifications
...


4
...
They help in matching the characteristics of
individuals with the vacant jobs so as to employ right kinds of
personnel
...
They evaluate the ability of
an individual to understand instructions and make decisions
...


(b)

Aptitude Tests : Aptitude means the potential which an
individual has for learning the skills required to do a job

238

efficiently
...
Aptitude tests are the most
promising indices for predicting a worker's success
...
They are also
known as performance, occupational or trade tests
...
A trade test takes a sample of individual's
behaviour which is designed as replica of the actual work
situation such as typing
...
An aptitude test measures the
potentials of the applicant to learn skills required on a job
...
These tests suggest what types
of jobs may be satisfying to the employees
...
They help the
individuals in selecting occupations of their interest
...
It is vary difficult to
devise and use personality tests because they are concerned
with discovering clues to an individual's value system, his
emotional reactions, maturity, etc
...
Hence, interview may be used to secure
more information about the candidate
...
The actual data of the applicant given
in the application form may also be checked and more
information may be taken from the candidate
...
Thus, interview affords an opportunity to develop a
clear picture of the candidate
...
There may be a preliminary interview by the head
of the department
...

During the interview, the members of the selection committee
appraise each candidate according to merits
...
After the
completion of interview of all the candidates, a panel is prepared
...

Although personal interview is perhaps the most widely used method
for selecting the personnel, it has certain limitations too
...
Secondly, it depends too much on the personal

240

judgement of the interviewer which may not always be accurate
...

5
...
Though in the suggested selection procedure, medical test
is located near the end, but this sequence need not be rigid
...
Some organizations either place
the examination relatively early in the selection procedure or they
advise the candidates to get themselves examined by a medical
expert so as to avoid disappointment at the end
...

The

physical

examination

should

disclose

the

physical

characteristics of the individual that are significant from the
standpoint of his efficient performance of the job he may be assigned
or of those jobs to which he may reasonable be expected to be
transferred or promoted
...
A proper medical examination will ensure
higher standards of health and physical fitness of the employees and
will reduce the rates of accident, labour turnover and absenteeism
...


Background Investigation : A referee is potentially an important
source of information about the candidate's ability and personality if
he holds a responsible position in some organization or has been the
boss or employer of the candidate
...
However,
it is often difficult to persuade a referee to give his opinion frankly
...


7
...

The appointment letter contains the terms and conditions of
employment and pay scale and other benefits associated with the job
...
5

INDUCTION AND PLACEMENT
Induction : When an individual successfully clears all the steps involved in
selection, he is selected
...
It consists of
familiarizing new employees with their jobs, introduction with his fellow
workers, company policies etc
...
"A good orientation programme will leave the employee firmly
established in the new job, comfortable and relaxed in his relations with
other members of the department and content with his position in the firm
...
(Layman
and Gubellini)
...
The first phase is
generally conducted by the personnel department
...
He may be taken around the factory and introduced to the security
officer, time keeper and cashier
...
The second phase of the induction programme
is conducted by the head of the department in which he is to work
...
The employee is then informed about the customs
prevalent in the organization such as dress, lunch, refreshments, etc
...
If the new employee is allowed to sink or swim, the
adjustment period either is considerably lengthened with consequent losses
in productivity, or it is eliminated altogether by resignation, with
consequent losses in turnover costs
...


(b)

To provide information to the employee regarding policies of the
organization
...


(d)

To build confidence in the new employee so that he can become an
efficient worker
...
A comprehensive induction programme usually
covers the following :
(a)

The company and its products
...


(c)

The structure of the organization and the functions of the various
departments
...


(e)

Standing orders including grievance and disciplinary procedures
...


(h)

Working routines and production

(i)

Employee's own department and job and how it fits into the general
organization
...
There should be a perfect matching of the requirements of the
job and the abilities/skills of the employee concerned
...
In practice, right placement is not an easy task
...

Generally, the candidate is appointed on probation of one year or so
...
If his performance is
satisfactory, he will be offered a permanent post and placed on the job for
which he is most suitable
...


244

Therefore, his training needs must also be identified during the probation
period
...
But if the management cannot offer him a job which
he can do well, it may sack him or give him time and training to improve
himself to do the job better
...
6

SUMMARY
Once the requirement of manpower is known, the process of recruitment
starts
...
Job recruits can be
drawn from within or outside the organization
...
There are
several advantages of a proper selection procedure
...
Labour turnover is reduced and the
overall efficiency of the concern is increased
...


8
...


What is meant by recruitment? How does it differ from selection?

2
...
What
sources of recruitment will you recommend for the appointment of
managerial personnel?

245

3
...
What
steps are involved in the selection procedure? Explain
...


What is the significance of proper selection of employees in an
organization? Explain the steps followed in selection procedure
...
8

FURTHER READINGS

1
...


2
...
Drucker, Practice of Management

3
...
S
...


4
...


246

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
B
...
Punia

TRAINING AND DEVELOPMENT
Objective : The objective of the lesson is to elaborate the fundamental concepts
relating to training and development
...
1

Concept of Training

9
...
3

Benefits of Training

9
...
5

Methods of Training

9
...
7

Methods of Management Development

9
...
9

Summary

9
...
11

Suggested Readings

9
...
This is because a person,
however carefully selected is not moulded to specifications and rarely
meets the demands of his job adequately
...
But as the
processes and techniques of production are becoming more and more
complicated, it is being increasingly realized that the formal training is
important not only for new recruits but also for existing employees
...

According to Flippo, "Training is the act of increasing the knowledge and
skills of an employee for doing a particular job
...
Its purpose is to achieve a change in the behaviour of those
trained and to enable them to do their jobs better
...
Training is
equally necessary for the old employees whenever new machines and
equipment are introduced and/or there is change in the techniques of doing
the things
...
It does not stop
anywhere
...

Training is different from education
...
It is
concerned with imparting specific skills for particular purposes
...

Thus, when we teach a person how to assemble two objects and tighten a
nut, we are training him to do a specific job but when we are giving him a
course in engineering, it is education
...


248

9
...
The main objective of training is to achieve
a change in the behaviour of the trainees
...


An attempt to increase the knowledge of a trainee would help him know
facts, policies, procedures and rules and regulations pertaining to his job
...
The training programme should
also mould the attitude of a worker towards other co-workers, supervisor
and the organization
...


9
...


Quick learning : Training helps to reduce the learning time to reach
the acceptable level of performance
...
The qualified instructors will
help the new employees to acquire the skills and knowledge to do
particular jobs within a short interval of time
...


Higher production : Training increases the skills of the employee
in the performance of a particular job
...
Training is also
of great help to the existing employees
...


3
...
Standardization will make high levels of
performance rule rather than the exception
...


4
...
Training does not eliminate the need
for supervision, but it reduces the need for detailed and constant
supervision
...
Under such situations,
close supervision is ordinarily not mandatory
...


Economical operations : Trained personnel will be able to make
better and economical use of materials and equipment
...
In addition, the rate of accidents and damage to
machinery and equipment will be kept to the minimum by the well
trained employees
...


6
...
A common objective of training programme
will mould employees' attitudes to achieve support for organizational

250

activities and to obtain better cooperation and greater loyalty
...
Thus, training
helps in building an efficient and cooperative workforce
...


Preparation of future mangers : When totally new skills are
required by an organization, it has to face great difficulties in the
selection process
...
It is better to
select and train from within the organization rather than seek the
skilled employees from the outside sources
...


8
...
To him training the employees can assist in
improving his planning, organizing, directing and controlling
...

(b)

Benefits of Training to Employees : Training helps the employees
or workers in the following ways :

1
...
It gives safety and security to them at the workplace
...


New Skills : Training develops skills which serve as a valuable
personal asset of the worker
...


3
...


251

4
...


5
...
They
don't worry when work procedures and methods are changed
...


Increased Safety : Trained workers handle the machine safely
...

Thus, they are less prone to industrial accidents
...
His motivation to improve his job
performance or to learn a new skill must be high
...
,
promotion or a better job
...
This is known as feed back
...


5

The material to be learned should be developed in stages
...


Training Procedure
1

First of all, the instructor must be prepared
...
On the basis of job analysis and job
description, various operations should be planned
...


252

2

The next step is the preparation of the trainee
...
The importance of the job, its relationship with the other jobs
and importance of rapid and effective learning, should be explained
...
The
sequence of the entire job is explained by taking one point at a time
...


5

The employee is then put on the job
...


9
...
Some of the
more common types of training programmes are examined below :

1
...
The new employee is introduced to his job
situation, and to his co-employees
...

Most of the information is likely to be embodied in an employee handbook
which is distributed to all employees, and in the case of a rank and file
workers, the orientation may consist only of a brief explanation by a
member of the personnel department or the supervisor under whom the

253

employee will work
...
Some
companies show movies explaining company activities, others arrange for a
lecture or a series of lectures on the company and its practices
...

In the new employee is an unskilled or a semi-skilled worker, for example a
machine operator, he may be asked to spend some time on the shop-floor in
order to familiarize himself with the machines, equipment and working
conditions
...
In the first phase, induction is done by the personnel department
which supplies to the new employee all sorts of information relating to the
company
...
He has
the responsibility of seeing that both the newcomer and the work team
accept each other
...

A ten step programme provides for :
(a)

Greeting the newcomer cordially;

(b)

Displaying a personal interest in the newcomer;

(c)

Reviewing his terms of employment;

(d)

Giving additional information;

(e)

Showing the newcomer around;

(f)

Explaining the importance of his job in relation to other jobs;

(g)

Introducing the newcomer to the rest of the work team;

254

(h)

Telling the newcomer his duties;

(i)

Selecting a person who can assist the newcomer on the job; and

(j)

Following up frequently
...
In view of these advantages, many large companies give
much importance to induction training
...


Refresher Training
As the name implies, the refresher training is meant for the old employees
of the enterprise
...
Retraining programmes are designed to
avoid personnel obsolescence
...
Thus, refresher training is essential
because of the following factors :
(a)

Rapid technological changes make even the most qualified workers
obsolete in course of time because new technology is associated with
new work methods and job requirements
...


(b)

Workers require training to bring them up-to-date with the
knowledge and skills and to relearn what they have forgotten
...


255

The existing talented employees may also be given adequate training to
make them eligible for promotion to higher jobs in the organization
...
The purpose of training for promotion is
to develop the existing employees to make them fit for undertaking higher
job responsibilities
...

3
...
In job training, workers are enabled to learn
correct methods of handling machines and equipment, avoiding accidents,
removing bottlenecks, minimizing waste, etc
...


Promotional Training
Many concerns follow a policy of filling some of the vacancies at higher
levels by promoting existing employees
...
They try to put up maximum efficiency so that they may be
considered for promotion
...
For this, training has to be given to them so that they may
not experience any difficulty to shoulder the responsibilities of the new
position to which they have been promoted
...
5

METHODS OF TRAINING
There are many methods of training
...
The various factors generally
considered for selecting a method include - skills required, qualifications of

256

candidates, cost, time available, depth of knowledge required etc
...


On the Job Training
Under this method an employee is instructed by some experienced
employee, a special instructor or supervisor
...
Usually training in crafts,
trades, technical areas etc
...
The increasing labour
costs in industry have made it essential that even the simplest job should be
carried out in a most economical manner
...

During second world war, millions of workers were trained for different
jobs
...
However, its
success largely depends on the trained instructor otherwise the quality of
his trainees will be very poor
...
It motivates employees to learn
...


(iii)

The training is under the supervision of supervisors who take keen
interest in the training programme
...


(v)

The trainee learns rules and regulations while learning the job
...


257

Limitations
(i)

The training is highly disorganized and haphazard
...


(iii)

The experienced trainers may not be available

(iv)

There is a lack of motivation on the part of the trainee to received
training
...


Apprentice Training
In many industries such as metal, printing and building construction, this
system of training is widely in use
...
The worker is usually absorbed by the concerned
industry after training period is over
...
The workers get
some stipend during their training period
...

The standards fixed in apprentice training are slightly rigid
...

Progress reports are periodically submitted
...

Advantages
(a)

Trainees receive some stipend during training

(b)

The trainees get valuable skill which carries good demand in the
market
...


258

(d)

It reduces labour cost and production cost as labour turnover is very
low
...


Limitations
(a)

The training period is very long and the trainee requires regular
supervision which may not be given
...


(c)

If a worker fails to learn after long period of training he may not be
absorbed
...


(d)
3
...


Vestibule Training (Training Centre Training)
Vestibule means a passage or room between the outer door and the interior
of a building
...
Under vestibule training, workers are trained on special machines
in a separate location i
...
classrooms
...
Training is given in artificial conditions which are
just like the real life situations
...
He can
concentrate on his other important assignments such as quality and quantity
of output
...

Advantages
(a)

The trainer is a specialist and possesses specialization in teaching
...


259

(c)

The Instructor can give individual attention as he has no other work
assigned to him
...


Disadvantages
(a)

Training is given under artificial conditions, hence the worker may
not adjust when he is put on actual job
...


(c)

If demand for workers is uneven, vestibule school may remain
unused for a considerable time
...


Splitting of responsibilities may lead to organizational problems
...
A
proper liaison is established between the technical institutions and business
houses where students are sent during their vacations
...

The chief drawbacks of this method are :
(a)

It can be used for training only of skilled and technical workers
...


An example may be given here from M
...
A
...
A close
liaison is kept between the university and industry
...
B
...
are sent to the different industries during vacations
...

5
...
These learners are first
given education in vocational schools where they get knowledge of
arithmetic, workshop mathematics and learn the operation of machines
...

9
...
It
implies that there will be a change in knowledge and behaviour of the
individuals undergoing development programme
...
The learning process involves the
implication that there will be changed behaviour on the part of the
individuals given the adequate training and education
...
It should be recognized that it is for the organization to
establish the developmental opportunities for its managers and potential
managers
...
Self-development is an
important concept in the whole programme of management development
...
This shortage is felt particularly
during the large scale expansion f the volume of activities of the
organization
...
The organization has to develop

261

the talented employees and maintain an inventory of executive skills to
meet the future demands
...
Executive development is not a 'oneshot' affair; it must continue throughout an executive's career
...
Therefore, in order to be
dynamic and to change himself according to the needs, a manager must
continuously update himself to successfully meet new challenges as they
occur
...

Companies with similar raw materials, equipments and technical know-how
show different results because of the quality of their executives
...

Thus, better the management, better are the results of the organization
...

Objectives of Management Development
The objectives of management development are as follows :
(i)

To prevent managerial obsolescence by exposing the managers to
new concepts and techniques in their respective fields of
specialization
...


262

(iii)

To develop a second line of competent managers for future
replacements
...


(v)

To ensure that managerial resources of the organization are properly
and fully utilized
...
7

METHODS OF MANAGEMENT DEVELOPMENT
A large variety of methods of management development have come into
prominence these days
...
Every good concern tries to provide internal
development and training facilities to its managers or executives
...

(b)

Off-the-Job Methods : Off-the-job methods include the external
facilities which are also of two types; firstly for those new entrants
who want to tap management as their carrier, and secondly, junior
and middle level managers to equip them with higher skills, and
techniques in management
...
B
...
programmes
...
Off-the-job methods include (i) Special courses or
classes
263

(ii) Role playing
...
(iv) Structured insight
...
(vi) Conference training (vii) Multiple management
...

A
...


Experience, Coaching and Understudy : Learning by experience
cannot and should not be eliminated as a method of development
...
An understudy
may be assistant to someone; or special assistant to someone or any
of the regular supervisory or executive positions developing upon his
special assignment
...
The understudy may have
regular duties for which he is solely responsible
...
This is a good
method for new entrants, promoters and management trainees
...


Position Rotation : The objective of position rotation method is the
broadening of the background of trainee in the organizations
...
The main advantages of position
rotating are : provision of general background in all functional areas
of the business, training in actual situation and competition among
the rotating trainees
...


3
...
For example, a trainee may be asked to develop a
system of cost control in the execution of an order
...
This project would
also help in educating the trainee about the importance of cost and
the organizational relationships with the accounting and other
departments
...

4
...
It is to discuss a subject
and make recommendations
...
It makes a study
of the problem and presents its suggestions to the departmental
manager
...
It is an important device of
educating the executives to acquire general background and to
change their behaviour towards the selected problem
...


Special Courses : The executives are required to attend special
courses formally organized by the enterprise with the help of experts
from educational institutions
...

This method is popular these days
...


2
...
The role players are provided with either a written or
oral description of a situation and the role they are to play
...
They must act out their

265

parts spontaneously before the class
...

Role playing is used for human relations and leadership training
...
Thus, its objective is very narrow
...

There are various advantages of Role Playing
...
Secondly, the interview may be
taped to provide the trainees a chance to listen to their performance
and note their strengths and weakness
...

3
...
The trainees may be given a problem to discuss which is
more or less related to the principles already taught
...
Cases may use in following ways :
(i)

They can be used subsequent to the exposition of formal
theory under which the trainees apply their knowledge of
theory to specific situations
...
The case study places heavy
demands upon the trainees
...

Case studies are extensively used in teaching law, personnel
management, human relations, marketing management and business
policy in various educational institutions
...
The answer of each trainee
may differ
...
That is why, case studies are frequently used in
supervisory and executive training in business
...


Conference Training : A conference is a group meeting conducted
according to an organized plan
...
It is an effective training of both conference
members and conference leader
...
He
learns the effect of closely controlling and dominating the discussion
as compared to adopting a more then participants understand how
groups actually work and give them a change to discover how they
are interpreted by others
...
The sensitivity training programmes are generally conducted
under controlled laboratory conditions
...

The typical programme of an executive development includes a number of

267

methods in both categories
...
Development which occurs on or near the job has the
advantages or providing motivation and of being practicable
...
The
managers are highly educated persons and they can soon learn newer
techniques
...

9
...
But there
are some differences in the content and techniques of employee training and
development
...
Flippo, "Training is the act of
increasing the knowledge and skills of an employee for doing a particular
job, management development includes the process by which managers and
executives acquire not only skills and competence in their present jobs, but
also capacities for future managerial tasks of increasing difficulty and
scope"
...
It imparts specific skills for specific purposes
...
Training is given to both new and old employees
throughout their stay in the organization
...

It may be noted here that the term 'training' refers to the programmes that
facilitate the learning process which results in development (consequence

268

of training)
...

The points of distinction between the two are given below :
1
...
Development, on the other
hand, means growth of the individual in all respects
...


2
...
But the term development is used in the context
of management development
...


Training programmes are directed towards maintaining and
improving current job performance, while development programmes
seek to develop skills and competence for future jobs
...
9

SUMMARY
Training is the act of increasing the knowledge and skill of an employee for
doing a particular job
...
A systematic training programme help in improving the
quality and quantity of a worker's out put, makes the worker committed and
loyal to the organization, facilitates promotion and replacement and reduces
spoiled work and accident rate
...
10

SELF ASSESSMENT QUESTIONS

1
...
Explain the advantages of training to the employees and
the organization
...


Discuss the various methods of training which are used for training the
employees
...


Distinguish between :
(a)
(b)

4
...


What do you understand by Development? Discuss briefly the systems of
Management Development
...


Enumerate and explain the methods of Management Development
...
11

SUGGESTED READINGS

1
...


2
...
Drucker, Practice of Management

3
...
S
...


4
...


270

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
B
...
Punia

Performance Appraisal
Objective: The objective of this lesson is to make the students learn
about

the

fundamental

concepts

and

methods

of

performance appraisal
...
1

Introduction to Performance Appraisal and Counseling

10
...
3

The Appraisal Process

10
...
5

Grey Areas in Performance Appraisal

10
...
7

Summary

10
...
9

Suggested Readings

10
...
Human behaviour is a
complex phenomenon because no one can anticipate accurately what
271

exactly a man is going to do
...
But the organization also has its own goals, which need not
to be in conformity with the individual goals
...
It is not desirable that individual’s personality be
suppressed but at the same time organization goals should also be achieved
...
This will also help the
organization to satisfy the needs and the aspiration of the individual by
providing him more facilities, improved working condition and carrier
advancement
...

Performance appraisal may also be defined as a process that involves: (i)

Setting work standard;

(ii)

Assessing the employees actual performance relative to these
standards; and

(iii)

Providing feedback to employee with the aim of motivating
that person to eliminate performance deficiencies or to
continue to perform above par
...
It covers two
aspects i
...
‘tell and sell’ where the boss tells his subordinates where they
stand
...
These two are the
fundamental tools for counseling
...
Here, the give and take problem-solving approach may be used
throughout the counseling meeting
...
Instead, the boss reveals
the root cause of the problem and secures constructive solution
...

In fact, the performance appraisal process if understood in its
comprehension includes the counseling and coaching
...
Therefore, it can be
said that the performance appraisal would yield dividend only when the
proper counseling takes place in an organization
...
2

Significance of Performance Appraisal
(i)

Performance improvement: Performance feedback allows the
employee, the manager and personnel specialists to intervene with
appropriate actions to improve performance
...
Many
firms grant part or all of their pay increases and bonuses on the basis
of merit, which is determined mostly through performance appraisal
...
Often promotions
are a reward for past performance
...
Likewise, good performance may indicate
untapped potential that should be developed
...


(vi)

Staffing process deficiencies: Good or bad performance implies
strengths or weaknesses in the personnel department’s staffing
procedures
...
Reliance on
inaccurate information may lead to inappropriate hiring, training, or
counseling decisions
...
Appraisal help diagnose these errors
...


(x)

External challenges: Sometimes performance is influenced by
factors outside the work environment, such as family, financial,
health, or other personal matters
...

(xi)

Feedback to human resources: Good or bad performance
throughout the organization indicates how well the human resource
are performing
...
3 The Appraisal Process
The performance appraisal process generally involves the following steps:
Establish performance standards
↓
Communicate performance expectations to the employees
↓
Measure actual performance
↓
Compare actual performance with standards
↓
Discuss the appraisal with employee
↓
If necessary, initiate corrective action

The appraisal process begins with the establishment of performance
standards
...
These
standards should be clear and not vague and objective enough to be
understood and measured
...
It should not be the part of the employees’ job to guess
that what is expected of them
...
The problem is compounded when these standards are not
communicated to the employees
...
Mere transference of information from manager to the
subordinate regarding expectations is not communication
...
Therefore, feedback
is necessary from the subordinate to the manager
...

The third step in the appraisal process is the measurement of performance
...
We should be concerned with how we measure and
what we measure
...
Each has its own strength and
weaknesses
...

The fourth step in the appraisal process is the comparison of actual
performance with standards
...

One of the most challenging tasks facing managers is to present an accurate
appraisal to the subordinate and then have the subordinate accept the

276

appraisal in the right spirit
...
The impression that subordinates receive about
their assessment has a strong impact on their self-esteem and very
important, on their subsequent performance
...
In this context, the discussion of the appraisal can have
negative as well as positive motivational consequences
...

The final step in the appraisal is the initiation of corrective action when necessary
...
One is immediate and deals predominately
with symptoms
...
Immediate correction action
is often described as “putting out fires”, whereas basic corrective action gets to the
source of deviation and seek to adjust the difference permanently
...

Attempt may also be needed to recommend for salary increased or promotions, if
these decisions become plausible in light of the appraisal
...
4 Methods of Performance Appraisal
Here, we will look at how management can actually establish performance
standard and devise instruments that can be used to measure and appraise
an employee’s performance
...
No single method is always best
...
Following are the some of the standard methods used by the
organizations to measure the performance of their employees:
1
...
It consists of typical rating scale
...
The supervisor rates each
subordinate by circling or checking the score that best describes his or her
performance for each trait
...

The rating method is easy to understand and easy to use
...

It permits a ready comparison of scores among employees
...
However, this
method has certain drawbacks also
...
If a man
scores low for quantity of work, this may be counter-balanced by high
scores for attendance, attitude, cooperativeness etc
...

2
...

The supervisor evaluates all the subordinates under him on an overall basis
and then rank orders them from exceptional to poor
...
In
case these employees have worked under several supervisors each one of
these supervisors ranks them according to his own assessment
...
An
illustration of this is presented in Figure given below, where five
subordinates working under three supervisors are ranked
...
3

Tilak

3

1

2

2

Pradeep

5

3

4

4

Mahesh

4

5

5

4
...
The individual ranking of three supervisors
are added and they divided by the number of supervisors
...
Since Vinod gets rank of 1
...

The difficulty of this system is that the rater is asked to consider rated as a
wholeman
...
Asking the appraiser to rank employee on certain desirable
traits can reduce the subjectiveness of this method
...


Paired Comparison Method
Pair comparison force raters to compare each employee with all the
employees in the same group who are being rated
...

Suppose there are five employees to be rated
...
Then for each trait indicate (With a + or -), who is

279

the better employee of the pair
...
In Figure, employee B ranked highest (has the
most + marks) for quantity of work, while employee A was ranked highest
for creativity
...
For each chart add up
the number of +’s in each column to get the highest ranked employee
...


Forced Distribution Method
Some appraisers suffer from the constant error, i
...
they either rate all
workers as excellent, average or poor
...
The forced distribution system is devised
to force the appraiser to fit the employees being appraised into
predetermined ranges of scale
...

This system is based on the presumption that all employees can be divided
into five-point scale of excellent, very good, average, acceptable and poor
...
Besides this, the system is easy to understand and
administer
...
Many times this categorization is not found in
work groups particularly when the group is comparatively small
...


Checklist Method
In the checklist, the evaluator uses a list of behavioral descriptions and
check-off those behaviors that apply to the employees
...

Once a checklist is complete, the staff of personnel department, not the
manager giving the checklist, usually evaluates it
...
He merely records it
...
The final
evaluation can then be returned to the rating manager for discussion with
the subordinate, or someone from the personnel department can provide
feedback to the subordinates
...
Are supervisor’s orders usually followed?
2
...
Does the individual suggest additional merchandise to customers?

4
...

6
...


Does the individual lose his or her temper in public?
Does the individual volunteer to help other employee?
Critical Incident Appraisal
With the critical incident method, the supervisor keeps a log of desirable or
undesirable examples or incidents of each subordinates work related
behaviour
...

This method can always be used to supplements another appraisal
techniques and in that role it has several advantages
...
It ensures you to think
about the subordinates’ appraisal all during the year because the incidents
must be accumulated
...

Given below are a few typical incidents from a checklist for the appraisal of
an individual in purchase department:
•

Displayed unpleasant behaviour to a supplier
...


•

Refused to work over-time when asked for
...


•

Created a disturbance with loud speaking
...


•

Failed to follow a chain of command
...


•

Accepted inferior quality goods
...


•
7
...


Helped fellow employees to solve their problems
...
It provides statements of
standards against which the performance of an appraisee is evaluated
...
There is one scale for each
significant broad performance area or job dimension
...
Different job dimensions identified in this
way tend to form varied behaviorally anchored scales
...

Frequently, the scale is presented vertically with “excellent” performance at
the top and “very poor” performance at the bottom
...

Suppose, five job dimensions have been identified in a particular job
...
These scales
may also embody statements to facilitate the clarity of the job dimension
being evaluated
...
The excellent performance on this scale may contain the
following statements: checks verbal instructions against written procedures,

284

checks to ensure he/she heard others correctly, brief replacements quickly
and accurately—giving only relevant information
...
The appraiser is
required to indicate on each scale the level of performance he/she visualizes
is revealed by the appraisee’s typical job behaviour
...

Explicitly, it is not possible for the appraisers to place behavioural
statements embracing all dimensions of job performance on the scales
...
In this way,
these added anchors represent their own examples and rationale for an
appraisal at a particular level
...
Their major characteristic relates to
behavioural orientation
...

Attachment of behavioural anchors to different scales enables the
appraisees to understand what they must do to organizing the dimension of
a managerial job may include the following: assigns/delegates tasks,
identifies alternative approaches to resource applications, coordinates
human, financial and material resource applications and divides unit
objective into identifiable tasks and sets due dates
...
This quality of the

285

scale minimizes subjectivity in appraisal as well as also enables the
appraisees to overcome their anxiety related to such appraisals
...
They become familiar with different aspects of the job as a
result of discussions of job dimensions and anchors in small group
meetings
...
Any conflict between the appraiser and appraisee over
the desired performance can be clarified in subsequent discussions
...

As BARS are based on quantity measures, an attempt may be made to
relate appraisal scores to current wage and salary structure with a view to
ascertaining varying extents of rewards to different behaviors
...
In addition, certain job dimensions can be singled out for
bonus administration and allied purposes
...
Explicitly, the job dimensions in BARS can help in formulating
training courses, and the behaviour anchors can indicate the specific
behaviors to be learned in different content areas
...
Notwithstanding these
advantages, BARS form a time-consuming method
...

8
...

Drucker
...
You could engage in a modest MBO
program with subordinates by jointly setting goals and periodically
providing feedback
...


(ii)

Set departmental goals: Here department/heads and their superiors
jointly set goals for their departments
...


(iv)

Define expected results: Here department heads and their
subordinates set short-term performance targets
...


(vi)

Provide feedback: Department heads hold periodic performance
review meetings with subordinates to discuss and evaluate the
latters’ progress in achieving expected results
...
A well thought out MBO
system provides the following benefits to the organization
...


(ii)

It establishes a linkage between the performance of the individual
and organizations
...


(iii)

It becomes easy to implement because those who carry out the plans
also participate in setting up these plans
...


(v)

The communication chain between and among employees and units
are clearly established facilitating information sharing
...
It provides
the guidelines for self as well as evaluation by the supervisor against
the set tasks and goals
...


Notwithstanding the above merits, the result-oriented procedure has several
limitations
...
Moreover, the procedure stresses tangible goals (i
...
production) and
ignores intangible goals (i
...
morale)
...

MBO is a time-consuming
...

Setting objectives with the subordinate sometimes turns into a tug of war

288

with you pushing for higher quotas and the subordinate pushing for lower
ones
...
5 Grey Areas in Performance Appraisal
The ideal approach to performance evaluation is that in which evaluator is
free from personal biases, prejudices and idiosyncrasies
...
However a single foolproof
evaluation method is not available
...
There are many significant factors, which
deter or impede objective evaluation
...
It is the tendency of
many raters to set their rating is excessively influenced by one
characteristic rather than on all subsequent characteristics
...
For example, an
unfriendly employee will often be rated unsatisfactory for all traits
rather than just for trait “gets along well with others”
...
Supervisory
training can also alleviate the

(ii)

problem
...
For example, if the rating scale ranges from 1 to 7, they tend
to avoid the highs (6 and 7) and lows (1 and 2) and rate most of their
people between 3 and 5
...

Such a restriction can distort the evaluations, making than less useful
for promotion, salary or counseling purposes
...

(iii)

Leniency or Strictness
The leniency bias results when raters tend to be easy in evaluating
the performance of employees
...
The strictness bias is the
opposite; it results from raters being too harsh in their evaluation
...
Both
leniency and strictness errors more commonly occur when
performance standards are vague
...
When people are expected to evaluate others
from different cultures, they may apply their cultural expectations to
someone who has a different set of beliefs or behaviors
...
If a
young worker is asked to rate an older subordinate, this culture value
290

of “respect and esteem” may bias the rating
...
Assertive women may receive biased rating
because of these cross-cultural differences
...


10
...
There are things that can be done to make performance appraisal
more effective
...
Traits like loyalty,
initiative, courage, reliability and self-expression are intuitively
appealing as desirable characteristics in employees
...
We know that there are employees who rate high on
these characteristics and are poor performers
...
Our conclusion is that traits like loyalty and managers may
prize initiative, but there is no evidence to support that certain traits
will be adequate synonyms for performance in a large cross-section
of jobs
...
What is loyalty?
“When is an employee reliable? What you consider ‘loyalty’, I may
not
...

Behaviorally derived measures can deal with both of these
objectives
...

(ii)

Trained Appraisers
If you cannot find good raters, the alternative is to make good raters
...

Errors can be minimized through training workers
...
The training may
include trail runs evaluating other classmates to gain some
supervised experience
...
During the training, the timing
and scheduling of evaluations are discussed
...
If person has had ten supervisors,
nine having rated him or her excellent and one poor, we can discount
the value of the one poor evaluation
...

(iv)

Peer Evaluations
Periodically, managers may find it difficult to evaluate their
subordinates’ performance because they are not working with them
every day
...
And of their goal of the
performance evaluation is to identify deficient areas and provide
constructive feedback to their subordinates, they may be providing a
disservice to these subordinates by not having all the information
...
Employees’ co-worker, people explicitly
familiar with the jobs involved mainly because they too are doing
the same thing, conducts peer evaluations
...

The main advantages to peer evaluation are that (i) there is a
tendency for co-workers to offer more constructive insight to each
other so that, as a unit, each will improve and (ii) their
recommendations tend to be more specific regarding job behaviourunless specificity exists, constructive measures are hard to gain
...
This environment can only be found in the
most “mature” organizations
...
Their importance demands preparation
...

The evaluator may provide this feedback through several appraisals:
tell and sell, tell and listen and problem solving
...
It works best with new employees
...
It
attempts to overcome these reactions by counseling the employee on
how to perform better
...
Then, through training, coaching or counseling goals for future
performance are set to remove these deficiencies
...
7

Summary
Performance appraisal is a critical activity
...
Its goal is to provide an accurate picture of past and/or
future performance of an employee
...
The standards are based on the job-related criteria that best
determine successful job performance
...
From a wide variety of appraisal

294

techniques, specialists select the methods that most effectively measure
employee performance against the previously set standards
...

The human resources department, often with little input from other parts of
the organization usually designs the appraisal process
...
To overcome this
shortcoming, the human resources department may design and conduct
appraisal workshops to train managers
...
The interviewer tries to balance positive areas of good
performance with areas where performance is deficient so that the employee receives
a realistic view
...
Human resources specialists need to be keenly aware that poor
performance, especially when it is widespread, may reflect problems with previous
human resources management activities
...
8

Self Assessment Questions
1
...
How does it differ from counseling?
Describe the process of appraisal
...


What are the uses of performance appraisal? Discuss
...


What are the limitations of performance appraisals? Give
suggestions for improvement in performance appraisal
...


Explain in detail the following:
(a) Graphic Rating Scale

295

(b) Management by Objectives
(c) Critical Incident Method
(d) Behaviorally Anchored Rating Scale
10
...
Sherlekar, S
...
, Management- Value Oriented Approach
...
French, Wendell L
...
Legge, Karen, Human Resource Management
4
...
, Human Resource Management
5
...
, Human Resource Management

296

Objective : The objective of this lesson is to make the students learn
about the concept and methods of performance appraisal
...
1 Introduction
18
...
3 The Appraisal Process
18
...
5 Limitations of Performance Appraisal
18
...
7 Summary
18
...
9 Suggested Readings
18
...


Human

behaviour

is

a

complex

phenomenon because no one can anticipate accurately what the man is
going to do exact
...
But the organization also has its own goals which need not
to be in conformity with the individual goals
...
It is not desirable that individual’s
personality be suppressed but at the same time organization goals
should also be achieved
...
Thus will also help the organization to satisfy the needs and
297

the aspiration of the individual by providing him more facilities,
improved working condition and carrier advancement
...

Performance appraisal may also be defined as any procedure that
involves (i) setting work standard (ii) assessing the employees actual
performance relative to these standards (iii) providing feedback to
employee with the aim of motivating that person to eliminate
performance deficiencies or to continue to perform above par
...
2 Uses of Performance Appraisals
(i)

Performance improvement : Performance feedback allows the
employee, the manager and personnel specialists to intervene with
appropriate actions to improve performance
...
Many
firms grant part or all of their pay increases and bonuses on the
basis of merit, which is determined mostly through performance
appraisals
...


Often

promotions are a reward for past performance
...
Likewise, good performance may
indicate untapped potential that should be developed
...


(vi)

Staffing process deficiencies : Good or bad performance implies
strengths or weaknesses in the personnel department’s staffing
procedures
...
Reliance
on inaccurate information may lead to inappropriate hiring,
training, or counseling decisions
...
Appraisals help diagnose these errors
...

(x)

External challenges : Sometimes performance is influenced by
factors outside the work environment, such as family, financial,
health, or other personal matters
...


299

(xi)

Feedback to human resources : Good or bad performance
throughout the organization indicates how well the human
resource function is performing
...
3 The Appraisal Process
The evaluation process involves the following steps :
Establish performance standards
↓
Communicate performance expectations to the employees
↓
Measure actual performance
↓
Compare actual performance with standards
↓
Discuss the appraisal with employee
↓
If necessary, initiate corrective action
The appraisal process begins with the establishment of performance
standards
...
These standards should be clear and not vague and objective
enough to be understood and measured
...
It should not be the part of the
employees’ job to guess that what is expected of them
...
The problem is compounded when
these standards are not communicated to the employees
...
Mere transference of
information from manager to the subordinate regarding expectations is
not

communication
...
Therefore, feedback is necessary from
the subordinate to the manager
...

The third step in the appraisal process is the measurement of
performance
...
We should be concerned with how we
measure and what we measure
...
Each
has its strength and weaknesses
...

The fourth step in the appraisal process is the comparison of actual
performance with standards
...

One of the most challenging tasks facing managers is to present an
accurate appraisal to the subordinate and then have the subordinate
accept the appraisal in the right spirit
...
The impression that

301

subordinates receive about their assessment has a strong impact on their
self esteem and very important, on their subsequent performance
...
In this context, the discussion
of the appraisal can have negative as well as positive motivational
consequences
...

The final step in the appraisal is the initiation of corrective action when
necessary
...
One is immediate and
deals predominately with symptoms
...
Immediate correction action is often described as “putting out
fires”, whereas basic corrective action gets to the source of deviation
and seek to adjust the difference permanently
...
Attempt may also be needed to recommend for salary
increased or promotions, if these decisions become plausible in light of
the appraisal
...
4 Methods of Performance Appraisal
The previous section described the appraisal process in general terms
...
In this section,
we will look at how management can actually establish performance
standard and devise instruments that can be used to measure and
appraise an employee’s performance
...
No one approach is always best
...
Following are the some of the standard
methods used by the organizations to measure the performance
...


Graphic Rating Scale

The graphic rating scale is the simplest and most popular technique for
appraising the performance
...
It lists
traits (such as quality and reliability) and arrange of performance values
(from unsatisfactory to outstanding) for each trait
...
The assigned value for
the traits are then totaled
...

The rating method in easy to understand and easy to use
...

It permits a ready comparison of scores among employees
...
However, this
method has certain drawbacks also
...
If a man
scores low for quantity of work, this may be counter-balanced by high
scores for attendance, attitude, cooperativeness etc
...

2
...

The supervisor evaluates all the subordinates under him on an overall
basis and then rank orders them from exceptional to poor
...
In case these employees have worked under several
supervisors each one of these supervisors ranks them according to his
own assessment
...
An illustration of this is presented in Figure
given below, where five subordinates working under three supervisors
are ranked
...
3

Mohan

3

1

2

2

Bharat

5

3

4

4

Ravi

4

5

5

4
...
The individual ranking of three
supervisors are added and they divided by the number of supervisors
...
Since Sham gets rank of
1
...

The difficulty of this system is that the rater is asked to consider ratee
as a wholeman
...
The subjectiveness of this method can be
reduced by asking the appraiser to rank employee on certain desirable
traits
...


Paired Comparison Method

304

Pair comparison force raters to compare each employee with all the
employees in the same group who are being rated
...

Suppose there are five employees to be rated
...
Then for each trait indicate
...
Next the number of items an
employee is rated better is added up
...

For the trait ‘Quantity of Work’
As compared to

A

C

D

E

+

A

B

+

–

–

–

–

–

+

–

B

–

C

–

+

D

+

+

–

E

+

+

+

+
–

↓
B ranks highest here
For the trait ‘Creativity’
As compared to
A

A

B

C

D

E

–

–

–

–

305

B

+

–

C

+

+

D

+

–

+

E

+

–

–

+

+

–

+
–

+

↓
A ranks highest here
Note : + means ‘better than’; means ‘worse than’
...

4
...
e
...
They fail to evaluate the poor,
average or excellent employees clearly and cluster them closely around
a particular point in the rating scale
...

The forced distributor system is applicable to a large group of
employees
...

For example, he may be asked to identify and rank employees according
to the following percentages :
Percentage of Employees

Ranking

10%

Poor

20%

Remarks

Acceptable

306

40%

Average

20%

Very good

10%

Excellent

This method obviously eliminates the scope for subjective judgement as
the part of the supervisors
...
The objective of this technique is to spread
out rating in the form of normal distribution
...

5
...
As Figure
illustrates on page 15, the evaluator merely goes down the list and gives
‘yes’ or ‘no’ responses
...
Therefore,
the rater does not actually evaluate the employee’s performance
...
An analyst in the personnel department then scores
the checklist, often weighting the factors in relationship to their
importance
...

Sample of checklist for appraising Sales Clerks
Yes

No

1
...



...


Does the individual approach customers
...

307

promptly?
3
...



...


Does the individual keep busy when not
...


servicing the customers?
5
...



...



...


Does the individual volunteer to help
other employee?

6
...
Then every six months or so, the supervisor and
subordinates meet and discuss the latters’ performance using the
specific incidents as examples
...
It provides you
with specific and hard facts for explaining the appraisal
...
Keeping a running list of critical
incidents should also provide concrete examples of what especially your
subordinate can do to eliminate any performance deficiencies
...


•

Consistently absent from work
...


•

Talked rudely and abruptly on the telephone
...


•

Accepted inferior quality goods from a supplier
...


•

Suggested a new method to work
...


•

Developed a new procedure that reduced paper work
...


•

Helped fellow employees to solve their problems
...


Behaviorally Anchored Rating Scales (BARS)

This method assists upon accurate measurement and improvement of job
performance through feedback to appraisees
...

These standards are put on the scales in BARS
...
While
developing BARS, small group discussions are conducted with would-be
appraisers and appraisees with a view to identifying the significant
dimensions of a job which need to be evaluated
...
For example, for a managerial position, the significant
job dimensions may include : planning, organizing, controlling,
leadership, motivation, communication and coordination
...

There are a number of scale points ranging between five and nine in
between these two extremes
...
There will be five scales in the appraisal
format, each having several anchors illustrating varied amounts of
performance along the scales
...
To cite an
example of BARS for the position of an equipment operator-one job
dimension in this position is verbal communication
...
On the other hand, a very poor
performance on this scale may contain the following statements : not
answers when called, refuses to brief replacements, gives a person
relieving him/her inaccurate information deliberately
...
While
doing so, he/she makes use of the behavioural anchors and dimensions—
clarification statements as guidelines and cues to recall the appraisee’s
job behaviour
...
Therefore, they merely indicate specific behavioural
examples which can be recalled for each appraisee at appropriate levels
on the scale
...

BARS are useful for varied reasons
...
They are based on job behaviour—what
individuals really do on their jobs, which is within their control
...
This feature of
specificity of these scales also enables the appraisers to provide relevant
feedback to appraisees why they received a particular level of appraisal,
and what they can do to improve their performance
...

BARS also provide participation to both appraisee and appraiser in their
development
...
This understanding provides guidelines to the appraiser while
observing

performance

and

enables

the

appraisee

to

judge

the

expectations of his/her superior
...
The participation of their ultimate users in the design of
BARS also ensures their commitment to this method of appraisal
...
Thus,
the management may link different levels of merit raises to different
ranges of scores on BARS
...
Last but not
the least, the scales can also be used to identify behavioural criteria to
facilitate selection decisions, construct selection tests and specify
behavioural training objectives
...

The poor performance areas can be pinpointed to improve performance
...
Although it is promising, much more research is required to
demonstrate its ability to eliminate certain types of rater errors
...


Management by objectives (MBO) Method :

This method of appraisal was introduced and made popular by Peter
Drucker (1961)
...
You could engage in a
modest MBO program with subordinates by jointly setting goals and
periodically providing feedback
...


(ii)

Set departmental goals : Here department/heads and their
superiors jointly set goals for their departments
...


(iv)

Define expected results : Here department heads and their
subordinates set short-term performance targets
...


(vi)

Provide feedback : Department heads hold periodic performance
review meetings with subordinates to discuss and evaluate the
latters’ progress in achieving expected results
...
A well thought out MBO
system provides the following benefits to the organization
...


(ii)

It establishes a linkage between the performance of the individual
and organizations
...


(iii)

It becomes easy to implement because those who carry out the
plans also participate in setting up these plans
...


(v)

The communication chain between and among employees and
units are clearly established facilitating information sharing
...
It provides
the guidelines for self as well as evaluation by the supervisor
against the set tasks and goals
...

Limitations

313

Notwithstanding the above merits, the result oriented procedure has
several limitations
...
Moreover, the procedure stresses tangible goals
(i
...
production) and ignores intangible goals (i
...
morale)
...

MBO is a time-consuming
...

Setting objectives with the subordinate sometimes turns into a tug of
war with you pushing for higher quotas and the subordinate pushing for
lower ones
...
5 Limitations of Performance Appraisal
The ideal approach to performance evaluation is that in which evaluator
is free from personal biases, prejudices and idiosyncracies
...
However a
single fool proof evaluation method is not available
...
There
are many significant factors which deter or impede objective evaluation
...
It is the tendency of
many raters to set their rating be excessively influenced by one
characteristic rather than on all subsequent characteristics
...
For example, an unfriendly
employee will often be rated unsatisfactory for all traits rather than just
for trait “gets along well with others”
...
Supervisory training can also alleviate
the problem
...

For example, if the rating scale ranges from 1 to 7, they tend to avoid
the highs (6 and 7) and lows (1 and 2) and rate most of their people
between 3 and 5
...
Such a restriction
can distort the evaluations, making than less useful for promotion,
salary or counseling purposes
...

(iii)

Leniency or Strictness

The leniency bias results when raters tend to be easy in evaluating the
performance of employees
...
The strictness bias is the opposite; it results
from raters being too harsh in their evaluation
...
Both leniency and strictness
errors more commonly occur when performance standards are vague
...
When people are expected to evaluate others from
different cultures, they may apply their cultural expectations to someone
who has a different set of beliefs or behaviors
...
If a young worker is asked to
rate an older subordinate, this culture value of “respect and esteem”
may bias the rating
...
Assertive
women may receive biased rating because of these cross cultural
differences
...


18
...
There are things that can be done to make performance
appraisal more effective
...

(i)

Behaviourally based measures

Many traits often considered to be related to good performance may in
fact, have little or no performance relatively
...
But the relevant
question is, are individual who are evaluated as high on those traits
higher performances than those who rate low ? We can not answer this
question
...
We can find others who are
excellent performers but do not score well on traits such as these
...

A second weakness in traits is the judgement self
...

So traits suffer from weak interrater agreement
...

Because they deal with specific examples of performance - both good
and bad - we avoid the problem of using inappropriate substitute
...

The training of appraisers can make these more accurate raters
...
Training workshops
are usually intended to explain to raters the purpose of the procedure,
the mechanics of ‘how to do it’, pitfalls or biases they may encounter
and answer to their questions
...

Companies even use videotapes and role playing evaluation sessions to
give raters both experience with and insight into the evaluation process
...

(iii)

Multiple Raters

As the number of raters increases, the probability of attaining more
accurate information increases
...
Therefore, by moving employees about
within the organizations so as to gain a number of evaluations, we
increase

the

probability

of

achieving

move

valid

and

reliable

difficult

to

evaluate

evaluations
...
Unfortunately, unless they have this information, they may
not be making an accurate assessment
...

Yet, how do they get this information ? One of the easiest means is
through peer evaluations
...
They are the ones most
aware of co-workers’ day - to - day work behaviour and should be given
the opportunity to provide the management with some feed back
...
But necessary condition for this
method is that the environment in the organization must be such that
politics and competition for promotion are minimized
...

(v)

Evaluation Interviews

Evaluation interviews are performance review sessions that give
employees essential feedback about their past performance or future
potential
...
Normally this include
a review of previous appraisals, identification of specific behaviours to
be reinforced during the evaluation interview and a plan or approach to
be used in providing the feedback
...
The tell and sell
approach reviews the employee’s performance and tries to persuade the
employee to perform better
...

The tell and listen allows the employee to explain reasons, give excuses
and describe defensive feelings about performance
...

The problem solving approach identifies problem that are interfering
with employee performance
...

8
...
Its goal
is to provide an accurate picture of past and/or future employee
performance
...

The standards are based on the job-related criteria that best determine
successful job performance
...
From a wide variety of appraisal
techniques, specialists select the methods that most effectively measure
employee performance against the previously set standards
...

The appraisal process is usually designed by the HR department, often
with little input from other parts of the organization
...
To overcome this
shortcoming, the HR department may design and conduct appraisal
workshops to train managers
...
The interviewer tries to balance
positive areas of good performance with areas where performance is
deficient so that the employee receives a realistic view
...
HR
specialists need to be keenly aware that poor performance, especially
when it is widespread, may reflect problems with previous HR
management activities
...
8 Self Assessment Exercise
1
...
Describe the appraisal process
...


What are the uses of performance appraisal ? Discuss
...


What are the limitations of performance appraisals ? Give
suggestions for improvement in performance appraisal
...


Explain in detail the following :
(a) Graphic Rating Scale
(b) Management by Objectives
(c) Critical Incident Method
(d) Behaviorally Anchored Rating Scale

18
...
Saiyadain,

Mirza

S
...
, New Delhi, 1994
...
Narayan, B
...
P
...
Publishing
Corporation, New Delhi, 1998
...
French, Wendell L
...

4
...


321

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Lesson No: 11

Author: Dr
...
B
...
Bodla

LEADERSHIP
Objective:

The objective of this lesson is to make the students
learn about the concept of leadership, leadership
styles and theories
...
1 Background
11
...
3 Leadership Styles
11
...
5

Summary

11
...
7 Suggested Readings

11
...
To ‘manage’ means “to bring
about, to accomplish, to have charge of or responsibility for, to conduct”
...
The distinction is critical
...
In this
lesson, you’ll learn that leadership is a very complex art that is essential for
the success in mission
...

Let’s start with a simple definition of leadership
...
This definition
sounds easy, but the application can provide a real challenge
...
Since you are dealing
with a very diverse group of people, it is important to understand the
different approaches to motivate them to meet their goals
...
Each leadership style can be
identified with a different approach to problem solving and decisionmaking
...
The challenge is to master the ability to change your
leadership style for a given situation as the person’s development level
changes
...
Explain to them what you want to get done
...
Provide the guidance they might need before they start
...
Give them the opportunity to complete the task on their own
...
Give them a lot of positive encouragement
...
Your organization depends on positive, effective
leaders at all levels to perform the mission
...
Remember, your success
as a leader will depend on your assessment of the situation and your ability
to communicate what you want in such a way that others will do as you
wish - that is the art of leadership
...
2 What is Leadership
It is difficult to define the term “leadership”
...
He is able to carry them with him,
because he influences their behaviour
...
They are willing to
be influenced, because they have certain needs to satisfy in collaboration
with him
...


Legitimate- That the targets of influence, followers or sub-ordinates
understand that the power the leader enjoys is legitimate and they
should comply with his orders in order to meet their own goals
...


Reward-That the followers know that the leader has the power to
grant promotions, monetary inducements or other rewards if his
orders are complied with
...


Coercive- That the followers know that if the leader’s orders are not
complied with, he has the power to hire, fire, perspire and discharge
the followers
...


Expert- That the followers know that the leader possesses
specialist’s knowledge in the field they lack it
...


Referent- That the followers feel attracted towards him because of
his

amiable manners, pleasing personality or they feel that he is

well connected with high-ups
...
The other two indicate personal
power, which is based on the individual’s own characteristics
...
How far he succeeds in
his attempts will depend upon several other factors that we will discuss
during the course of this lesson
...
This process, as Heresy and Blanchard suggest, can be
explained in the form of the following equation:
L = f (L, F, S,)
That is, the leadership is a function of the leader(L), the follower(F) and other
situational variables( S)
...
It is undoubtedly true that a manager may be a
weak leader or a leader may a weak manager, but it is also equally probable
that a manager may be a true leader or a leader may be true manager
...
Situational variables
include the whole environment like the task, the group,

organizational

policies, etc
...
3 Leadership Styles
Leadership style is the way a managerial leader applies his influence in getting work done through his subordinates in order to
achieve the organizational objectives
...
It depends upon the role of the leader whether he likes to work more of a colleague,
facilitator and decision maker and on the other hand the response of the subordinates would determine the particular style to be
in application
...
Autocratic or Dictatorial Leadership: In this leadership style the
leader assumes full responsibility for all actions
...
He
determines plans and policies and makes the decision-making a one man
show
...
He freely uses threats of punishment and penalty for any
lack of obedience
...


2
...
He secures consensus or unanimity in decision-making
...

This kind of leadership style is liked in most civilized organization and
has very long life
...
Laissez-faire Free Rein Leadership: Quite contrary to autocratic
leadership style, in this leadership style the leader depends entirely on
his subordinates to establish their own goals and to make their own
decisions
...
He takes minimum
initiative in administration or information
...
This kind of leadership is

326

desirable in mainly professional organization and where the employees
are self-motivated
...

We shall now discuss the roots of such leadership styles i
...
we shall try
to understand as to how these different leadership styles have been
evolved by the management scholars
...
4

Approaches to the Study of Leadership Styles

There are broadly three major approaches to the study of the leadership
phenomenon
...
The trait approach was
followed during the 1930s-1960
...

Therefore, an approach, called the situational approach, which had the
potential to incorporate important variables, developed during the
1970s
...
Trait Approach
There have always been very few persons in society or organizations
who are leaders
...
But what is it that distinguishes leaders from non-leader?
Or what make a person the successful leader?

It is, perhaps,

something that is in-born in him and which the followers lack
...


327

One way to identify the traits is to ask the leader himself how he
considers himself different from his followers or what distinguishing
characteristics he possesses
...
and build up a list of traits or attributes
that the leader possesses
...
This
compilation of a list of traits or attributes does not give any
predictive power and therefore, investigators have tended to relate
leadership even with handwriting [graphology], skull shape
[phrenology] and occult influence of stars [astrology]
...
As Ivancevich et al have suggested,
the most researched traits include the following: 1
...


Social background

—

Education, social status and mobility

3
...


Personality

—

Alertness, dominance, extroversion,
independence, creativity and
self-confidence

5
...


—

Achievement drive, initiative,
persistence, enterprise and task
orientation
...


Social characteristics

—

Attractiveness,

popularity,

sociability

and interpersonal skills
...
With
each study, the list of traits studied has become longer and longer
...
In general,
328

there appears to be a consensus that effective leaders possessed
intelligence, social maturity and breadth, inner motivation and
achievement drive, and a human relations attitude
...


Criticism

The trait approach is weak in several respects
...


Mahatma Gandhi, a frail man, not even adequately

clothed, but wedded to truth, became the Father of the Indian nation
...
Indira Gandhi, without much
formal education, was in 1971, after the Bangladesh war, acclaimed
as ‘Chandi’ and ‘Durga’ in Ramlila grounds and presented with a
sword, etc
...
But the same “ pride of the
nation” fell from grace in 1977
...
His or her inborn
characteristics are given but whether one succeeds or fails as leader,
perhaps, depends upon something else
...
Further,

329

not many things were common among those who succeeded or
failed
...
Leaders emerge more easily in unstable situations
...
Many alternatives are not available
...
But the complexity of decision making is heightened in the not-so unstable situations
when on the spot decisions are not needed and consultation and generation of the search process is possible
...
Therefore, most leadership situations are highly complex and cannot be
adequately explained by the trait approach
...

1
...
Rarely, if ever, do two lists agree on the
essential characteristics of the effective leader
...
The same traits are widely
distributed among the non-leaders as well
...


It is difficult to indicate what mix of traits is necessary to make an
effective leader
...


3
...


4
...


Training may help

improve a person if he possesses the basic traits
...
Accordingly to this approach,
training would be fruitless in the case of others
...


330

5
...
At lower managerial levels where there is a direct
contact between the worker and the supervisor, technical knowledge
is of paramount importance
...
At higher managerial levels
where ideas are generated, policies are framed, strategic and longterm planning is undertaken, ideational resource possessing
conceptual skills gains pre-eminent position
...
So uniformity of traits
across all levels is questioned
...


Leadership in a large organization demands a specialized limited
role, but a multiplicity of roles has to be played in a small
organization
...


7
...


The effectiveness of

leadership is dependent to a large extent on the situation or
environment surrounding the leadership or influence process
...


It requires an initial separation of people into “ leaders” and “nonleaders” or “ good leaders” and “ not so good leaders”
...


9
...

That is, a trait in order to get expressed needs a situation, without
which, the presence or absence of that trait in a particular individual
may not be known
...
Despite its shortcomings, no approach is entirely worthless
...
Thus, the trait approach paved the way for later approaches like the
behavioural and the situational
...


Behavioural Approach
When it was apparent that the trait basis was not adequate to explain
the leadership phenomenon, the theorists directed their attention to
the study of leader behaviour
...


The roots of this approach lie in how the

management viewed the workers
...
It was the function of management to coerce, direct
and motivate them through the offer of economic rewards
...

In other words, the philosophy was that people were, by nature, lazy
uncreative and irresponsible, and so leadership has to be directive
...
Elton Mayo and his associates
discovered the existence of informal groups and informal leaders and
laid stress on interpersonal relationships as a significant influence on
productivity
...

332

These two movements gave birth to leaderships studies which
characterized leaders as basically adopting a particular leadership
style,

say,

dictatorial/autocratic/authoritarian/democratic/supportive/consultativ
e/participative or the laissez faire/free-rein type
...
The dictatorial leader was one who
had absolute authority and used threats and punishments to extract
work out of people
...

He issued directions and maintained formal relationship with people
...
The laissez-faire or freerein leader supplied information to the group members, but
displayed little emotional involvement and a minimum of
participation in the group activities
...


This amounts to virtual

absence of formal leadership or is analogous to abdication of
responsibility
...
On the whole, it was
revealed that authoritarian or autocratic leaders improved production temporarily, but depreciated human assets
seriously
...
Laissez-faire or free rein leaders evoked an altogether
a different response
...
In the
final analysis, these studies appeared to suggest that leadership style could be either/or, i
...
, just of one
particular type and the best leadership style was the democratic type involving all workers in decision-making
...
This continuum suggests that there is
scope for a variety of leadership practices, but it is again indicative
of the dominant philosophy of a leader
...
Perhaps, the authoritarian style may be
appropriate for the production department, but a democratic style
may have to be used in the research and development department
...
Golembiewski suggests that
different kinds of leadership styles are appropriate for different kinds
of problems
...
The generally appropriate leadership
style in such a case is leader centred
...
However,
there are some roles that are peculiar to the subordinates such as
deciding how to use a tool
...

A number of studies have lent support to the two basic styles of
leadership-authoritarian and democratic
...
Terms like democratic,
participative,

group-centred,

employee-centred,

relationship-

oriented, group maintenance, consideration or concern for people
leaders have again been taken to mean more or less the same thing
...

Their studies resulted in the development of two distinct styles of
leadership: [I] the job-centred {task-oriented} leadership style
emphasizing the use of rules, procedures, and close supervision of
subordinates, and [ii] the employee-centred {relationship-oriented}
leadership

style

responsibility

and

emphasizing
concern

delegation
for

of

employee

authority
welfare,

and
needs,

advancement and personal growth
...

However the use of direct pressure and close supervision led to
decreased satisfaction and increased turnover and absenteeism
...


This resulted in increased

satisfaction and decreased turnover and absenteeism
...

Criticism
These studies have met with the following criticisms:
1
...
A productive group
may suggest it to the leader to adopt an employee-centred approach
...

335

2
...


A

particular leadership style is appropriate in a normal circumstance
and an altogether different one when there is pressure is an extraordinary situation
...
The use of a questionnaire completed by subordinates introduces an
element of employee bias in it and may not present the true view of
the leadership style
...

4
...


ii) Ohio State Studies
Initiated in 1945, the Bureau of Business Research studies by Fleishman
and others

at the Ohio State University identified two independent

leadership dimensions called Initiating Structure and Consideration which
meant more or less the same thing as task behaviour and relationship
behaviour of a leader
...

The scores derived from the responses to the questionnaire were used to
indicate a manager’s style of leadership
...
A management may score high on
both dimensions, low on both, or high on one and low on the other
...
In the beginning, it was widely believed that the most effective
leadership style was high on both the initiating structure and consideration
...


In some situations, high initiating structure and high

consideration style would prove effective, but in some others, even low
initiating structure and low consideration style could prove effective
...
However, as
Fleishman and Harris suggest, there must be certain critical levels beyond
which increased consideration or decreased structure have no effect on
grievance or turnover rates
...
Apparently, a manager can compensate for high structure by
increased consideration, but a low consideration manager cannot
compensate by decreasing his structuring behaviour
...
This was a significant step forward in itself
...
A few of such weaknesses are listed here:
1
...
Very little is known
about how these styles affect work group performance
...
Even the formality of the
organizational structure was an important influence on the effectiveness
of a given leadership style
...


The use of two questionnaires- one to be completed by the subordinates
and the other by the leaders themselves has also come in for severe
criticism
...
This
presents a serious measurement problem: how is leadership style
measured – as perceived by the leader or the subordinates?

iii)

Managerial Grid Study
Blake and Mounton have used “Concern for Production” and “
Concern for People” in their Managerial Grid on horizontal and
vertical axes respectively
...


An Axis can be divided into 9 points
...

The five leadership styles mentioned in the figure above mean the
following:
338

Impoverished (1-1)

Extension of minimum effort to get required
work done
...


Task (9-1)

Interference from human elements permitted to
a minimum degree
...


Behavioural Theories: A final Look
As distinct from the trait approach, behavioural theories endeavoured to
explain the leadership phenomenon in terms of the behaviour of the leader
...
Therefore, the investigators examined the practices or
styles that leaders adopted and gave the impression that a leader had a
dominant philosophy
...

For the first time, the Ohio State studies considered two independent leadership
dimensions and revealed that leadership style could be any mix of the two
dimensions
...
In a later work, four to twelve dimensions have
been studied
...


339

There is a lot of evidence to question this inference
...
A similar parallel may be
drawn in the case of the fire-fighting department when a house is on fire
...
Likert17 has found general supervision to be
associated with high productivity
...

In the light of these facts, the search for the most effective leadership style
appears to be a wild goose chase
...
If one considers a single style of leadership to be the
best for every kind of organization at every level with any kind of
subordinates, one ignores important influencing factors like subordinate
characteristics, task characteristics, group cohesiveness, cultural differences,
customs, traditions, level of education, standard of living and the like
...
It is highly unrealistic
to talk of a single best or normative style of leadership
...
These approaches
used questionnaires to measure leadership styles
...
Scientific rigour cannot be applied in
studies which are likely to by affected be perceptual differences and a variety
of interpretations of questions
...
This is, therefore, an unavoidable limitation
...


Situational Approach

340

Behavioural approach advanced our knowledge in understanding the
leadership phenomenon by explaining various combinations of leadership
styles
...
The
trait approach, in effect, explained some of the desirable characteristics that
leaders had or a leader should have
...
The
behaviour approach, learning from the weaknesses of the trait approach,
went a step further to explain the practices available to a leader in order to
discharge his leadership dimensions are available
...

As a result, it was recognized that it is not style that matters; in fact, no
style is good or bad, it is the situation that makes it so
...
The behavioural
approach failed to consider this situation as an important element
...
What is relevant for an
industrial setting may not be relevant for an educational institution
...
A number of leader behaviour styles may
be effective or ineffective depending on the important elements of the
situation
...
, which, in fact, constitute the environment of the leader
...
The situational theories attempt to provide at least partial
examination of how these factors impact on leaderships
...
That is, a leader’s effectiveness is contingent
upon the favourableness or unfavourableness of the situation
...
If leader
member relations are good, task is structured and leader position
power is weak, the situation is regarded as highly favourable
...
It
is obviously a question of the kind of leadership style is effective
only in a particular situation
...

Leadership style is measured by using an instrument called “esteem for least preferred co-worker”{LPC}
...
This need not be someone with whom, he works at the time
...
The lower the LPC score { an average item value of about 2}, the greater is the taskorientation of the least preferred co-worker
...
The higher the LPC score [in the neighbourhood of 5 to 8 ], the
greater is the willingness to perceive even the worst co-worker as having some reasonable positive attributes
...
The person seeks to have strong
emotional ties with the co-workers
...


Leader-Member Relations: This variable measures the referent
power of the leader, whether the group accepts or rejects him as its
leader
...
In this situation, the leader’s ability to influence
the group is restricted because the task dilutes the leader’s potential
influence
...

Leader Position Power: This indicates the extent to which the
leader possesses reward, punishment and legitimate power bases
...
In
most voluntary and social organizations, leaders tend to have low
position power
...
, leadermember relations, task structure and leader position power in
addition to leader’s employee-orientation, eight combinations of
these additional variables are possible ranging from a highly
favourable situation to a highly un-favourable situation
...


He plotted his

responses indicating the degree of favourableness of the situation on
the horizontal scale and employee-orientation [high and low] or LPC
score on the vertical scale
...

Above the midline in the figure is positive relationship between
LPC score and group performance, i
...
, high LPC or employeeoriented leaders performed better
...
e
...
Thus, the employeeoriented

leader

succeeded

in

situations

intermediate

in

favourableness, whereas the task-oriented leader was successful in
highly favourable or un-favourable situations
...
The task-oriented
leaders performed most effectively in highly favourable
situations
...


In favourable situations, when tasks are

structured but leader member relations are good, even the
task-oriented behaviour of the leader seems to be friendly
and considerate
...
In an un-favourable
situation, when the task is unstructured, relations between
the two are not good, power position is weak, he becomes
more concerned with performance
...
If
the leader possesses a more knowledge than the followers,
the followers are willing to accept his task-orientation to
improve their knowledge for handling unstructured tasks
...

The whole idea can be summarized as follows:
Leadership Style

Effectiveness is Contingent upon

344

Task-oriented

Favourable leadership situation
Un-favourable leadership situation

Relationship

Situation intermediate in favourableness for the

Oriented

leader

Fielder’s Contingency Model: An Evaluation- In the past, both
consideration and structure have been observed to be effective under
different conditions, but Fiedler’s contingency theory goes a step
ahead and helps resolve confusion about optimum conditions for a
considerate, people-oriented leader compared with a more
structured, task-oriented leader
...
No doubt, it has not covered subordinate characteristics,
group characteristics, etc - some of the most important elements in
the situation, but it has covered some ground in these directions and
so, will continue, to inspire researchers in the field
...


As leadership

effectiveness is a function of the leader’s motivational base and the
interaction of situational factors, the organization may improve the
effectiveness of a particular work environment by either modifying
the situational factors or attempting to change the manager’s
leadership style
...
Change in the job assignment
may be preferred to change in the leader
...
As the manager’s motivational
bases are in a flux, it may be a futile effort to engineer the job to fit
the manager’s style
...


(iii)

His model does not take into account that the leader can influence the

situation once he knows the existence of a particular kind of the situation
...


(v)

The theory is static in nature and ignore the long-range influence of
the situation on the leader and the group
...

Hersey and Blanchard at the Centre for Leadership Studies, Ohio
University, have used tow concepts-task behaviour and relationship
behaviour
...
According to them, what
matters is not the actual behaviour as such, but its appropriateness to
the environment in which it is used
...
Unlike those who argue that
there is one best style of leadership and make value judgement about
the stimulus; the situationalist or environmentalists evaluate the

346

response or results
...
For example, they
suggest that if a manager’s subordinates are emotionally mature and
can take responsibility for them, the appropriate style of leadership
may be low task and low relationship
...

It is, therefore, obvious that it is the interaction of the basic style
with the environment that results in a degree of effectiveness or
ineffectiveness
...


SITUATIONAL LEADERSHIP THEORY: An Evaluation-This seems to
be, by so far, the most comprehensive leadership theory and
suggests appropriate leadership styles for the varying levels of
maturity of the followers
...
The
theory is still in a nascent stage and we are not yet aware of any
researches based on this theory
...
Based on this subjective
judgement - for which, in fact, there is no way to be objective, one
may adopt an undesired leadership style and prove the theory to be
wrong
...
That is, if the lower order
needs of an individual are potent, even the high task and low
relationship behaviour may prove effective despite the fact that the
individual has high levels of maturity
...


iii)

Path - Goal Theory
House was baffled by the contradictory findings in the leadership
area and so, advanced his own situational theory of leadership
...

In Vroom’s Expectancy Theory of motivation, there are, among
others, two key variables: expectancies and valences
...
This
degree of belief varies between 0 and 1
...
Obviously, for
certain things, employee’s valences will be positive and for certain
others, negative
...

The Path-Goal theory states that an individual’s attitude or behaviour
can be predicted from (i) the degree to which the job or behaviour is
seen as leading to various outcomes (called “expectancy”) and (ii)
the evaluation of these outcomes (called “valence”)
...


It is the function of the leader to influence the
348

valence (i
...
, goal attractiveness) and expectancy (i
...
, goal paths)
perceptions of subordinates, by increasing personal pay-offs, making
the path to these pay-off’s easier by clarifying it, reducing road
blocks and pitfalls and increasing the opportunities for personal
satisfaction in route
...
In order to enable the leader to help the subordinates
reach their highly valued job-related goals, the specific style of
leader behaviour is determined by two situational variables—
characteristics of the subordinates and the characters of the work
environment
...


(ii)

Supportive behaviour shows consideration for employees’ needs and
their welfare
...


(iv)

Achievement-oriented behaviour suggests setting challenging goals
for subordinates and also displaying confidence in their ability to do
a good job
...
e
...

The Path-Goal Theory proposes that leader behaviour will be viewed
acceptable to the subordinate to the extent that the subordinate sees such
behaviour as either an immediate source of satisfaction, or as needed for
future satisfaction
...
Accordingly, they view a particular leadership
style favourably or un-favourably
...
A subordinate having high safety and
security and security needs may accept an instrumental leader style, but
those with high social and esteem needs may react more positively to a
supportive leader
...
These characteristics of work environment
will influence subordinate behaviour in relation to a particular leadership
style
...


In such a situation, instrumental behaviour would be

regarded as unnecessary and inappropriate
...
But a
directive leadership style would be welcome where the task is unstructured
and there is need for providing clarifications as, for example, if a manager
of an industrial relations team gives guidance and direction on how to
process a grievance for arbitration
...
Figure given below shows the effect of the

350

work environment or task structure on leader behaviour and subordinates’
job satisfaction
...
On the horizontal scale is represented leader directiveness, ranging
from low to high
...
It may be seen that
when the task is structured, the leader who is low in directiveness is more
satisfying to the employees, whereas if the task is unstructured, a more
directive leader is highly satisfying as the clarifies the ambiguities and
therefore, paths to their goals
...
A few researches
that have been undertaken on the basis of the theory have confirmed its
basic propositions - that instrumental leader behaviour is more effective
than supportive behaviour for subordinates working on unstructured tasks,
and supportive leader behaviour results in high employee satisfaction when
subordinates are performing structured tasks
...


It highlights that the relationship

between the leader and the subordinates does not exist in a vacuum
...
In general,
tasks are structured at lower levels and unstructured at higher levels and
therefore, it also implies that different leadership style will be required for
different occupational groupings and levels of the organization’s hierarchy
...
It gives situation, but also attempts to
explain why it is most effective
...

Despite this contribution, the theory appears to suffer from the following
shortcomings:
(i)

The theory is quite complex and its testing poses a serious problem
...
Researches
have not yet been conducted on participative or achievementoriented leadership styles to indicate any measurement methodology
...
This, perhaps, signifies greater
emphasis on motivation and satisfaction than performance
...


IV
...
The Trait approach identified the traits only when
a person had emerged, as a leader and therefore, it had no predictive power
...
Situational theories attempted to fill in these gaps
...


This fact

reduces their applicability in practice
...
However, to have a full view of the present
state of knowledge in this area, we may talk about an integrative model of
leadership as developed by Ivancevich et al
...
5

Summary

It is beyond doubt that your goal as a leader in the organization is to do the
best job you can at influencing your people towards a common goal
...

Leadership style is the pattern of behaviors you use when you are trying to
influence the behaviors of those you are trying to lead
...
Possessing a better understanding of the various
leadership styles and their respective developmental levels will help you
match a given style for a specific situation
...

Some modern management scholars like Ivancevich et al have identified
three major issues in leadership, which have received only scant attention
from researchers and theorists
...

Management scholars have generally examined the effect of leadership
style on subordinate behaviour and have rarely related it to the leader
reward behaviour
...
Similarly, the use of negative rewards has been found to have
different effects on subordinates, depending on the individual’s
organizational level
...

Another interesting issue, though neglected, is whether subordinate
behaviour of a particular type is a consequence of leader behaviour or that
leader behaviour is a consequence of subordinate behaviour of a particular
354

type
...

The third issue concerns our frequent assumption that the subordinates are
dependent upon the leader for direction, support, influence, and rewards
...
may reduce the subordinate’s dependency on the leader
...


On the other hand, it

suggests that individual employees may also be influenced in their work by
factors other than leader behaviour
...
Remember, your success as a leader will depend on your
assessment of the situation and your ability to communicate what you want
in such a way that others will do as you wish - that is the art of leadership
...
6 Self Assessment Questions
1
...
Discuss
...


Explain and illustrate the various approaches accounting for
leadership
...


How you will define the leadership? Discuss the main leadership
styles with their application
...


Write short notes on the following: i
...
)

Path- Goal approach
...
)

Difference between a leader and manager
...
7 Suggested Readings
1
...
A
...


2
...
A
...


Prashad, L
...
, Principles and Practice of Management, S
...


4
...
, Management Theory and Practice, Vikas
Publishers
...
HARBHAJAN

MOTIVATION

OBJECTIVE:

After reading this chapter you should be able to understand the
meaning of motivation, nature of motivational process and the
theories of motivation regarding behaviour and work
...
1

Introduction

12
...
3

Process of Motivation

12
...
5

Theories of Motivation Regarding Behaviour

12
...
7

Management by Objectives

12
...
9

Summary

12
...
11 Suggested Readings

12
...
People with less ability but lots of strength are
able to perform better than people with superior ability and lack of will
...
Albert Einstein underscored this
belief when he said, "genius is 10% inspiration and 90% perspiration
...
The force of motivation is a dynamic force setting a
person into motion-or action
...
The idea that
we are motivated to do what brings us the best results for our benefit is found in
the early Indian philosophy through such writings as "Charvak"
...
" The Greek view of motivation has been dominated by
the concept of hedonism, which is a view that people seek pleasure and comfort,
and avoids pain and discomfort
...
This philosophy, though still
popular, depends excessively upon rational evaluation and does not take into
consideration the effect of instincts or even the value system
...
However,
this view prevailed right up to the eighteenth and, nineteenth centuries and is
evident in the social and economical philosophies of such famous men as Adam
Smith, Jeremy Bentham and John Stuart Mill
...
For example, a person who risked his own life
to save another had rationally decided to become a "hero" or did he act on
"impulse," believing that it was the right thing to do irrespective of cost or
consequences? The principle of hedonism can be more easily explained "after the
fact" when the behaviour has already been explained
...
Since
hedonistic explanations work best in explaining actions after they occur, they
cannot be relied upon in predicting behaviour
...
William James and Sigmund Freud argue that instinctive behaviour
and unconscious motivation are also important elements in human behaviour and
these largely determine an individual's interpretation of, and response to,
situations
...
These instincts, which
influence human behaviour, include the need for autonomy, curiosity, sociability,
sympathy, fear, jealousy, love, dominance, harm avoidance, play, and sex
...

The instinct behaviour is like a reflex action, meant for survival and hence caters
primarily to physiological needs
...
Most instincts are common to all people and would
exhibit similar behaviour under similar circumstances
...
The
unconscious motivation, of which an individual is unaware, was brought up by
Sigmund Freud who suggested that unconscious motives are primarily sexual and
aggressive in nature and even though unconscious, they greatly influence
everyday behaviour
...

Both the instinctive motivation and unconscious motivation do not stand the
scientific analysis and contemporary psychologists explain behaviour by complex
cognitive and environmental interactions
...


12
...
All motives are directed
towards goals and the needs and desires affect or change your behaviour, which
becomes goal oriented
...
Viteles defines motivation as: “Motivation
represents an unsatisfied need which creates a state of tension or disequilibria,
causing the individual to move in a goal directed pattern -towards restoring a state
of equilibrium, by satisfying the need
...
3 PROCESS OF MOTIVATION
Motivated people are ill constant state of tension
...
The greater the tension, the more activity will, be needed to bring about
relief and hence higher the motivation
...
3
...
Hard work usually reflects high
motivation
...
A professor who is engaged in research and publishes
many high quality articles is exerting extensive effort relating to his job
...
3
...
Its second characteristic is persistence in the efforts
...
For example, a
professor who publishes simply to get a promotion and then stops or
reduces research efforts would not be considered as highly motivated
...

12
...
3 Direction: Persistent hard work determines the quantity of effort while
direction determines the quality of the-anticipated output
...
This would ensure that the
persistent effort is actually resulting into accepted organizational
outcomes
...
As an
example, let us assume that a professor has established a goal for him to
get a promotion and monetary raise in order to improve upon his standard
of living
...

He will thus choose a course of action designed to obtain promotion
...
He
will be highly motivated and will put in persistent efforts in research and
publish the desired number of articles or the book
...
If the pay raise is not adequate and there are
grounds for further promotion and pay raise, the professor will establish a
higher goal and strive towards it
...
Thus the
motivation process involves the following steps
...
From organizational behaviour
point of view it must be recognized that since the needs of different employees
differ both in nature as well as intensity, a composite view of the collective needs
of the group is established with appropriate recognition of differences in
individual needs
...
Proper timing and the
extent of motivation are also to be considered
...


362

Follow-up: It is important to know that the motivators selected are indeed
providing the desired motivation
...
If these motivators are not-showing the optimum effect,
then alternative motivators should be selected and applied
...
4 SOURCES OF MOTIVATION
Experts in the organizational behaviour field have a divided opinion as to whether
workers are motivated by factors in the external environment such as rewards or
fear or whether motivation is self generated without the application of external
factors
...
Some of these motivational sources are:
12
...
1 Positive Motivation: Positive motivation involves proper recognition of
employee, efforts and appreciation of employee contribution towards the
organizational goal-achievement
...
Some of the positive motivators
are:
Praise and credit for work done
...

Delegation of authority and responsibility to subordinates
...

12
...
2 Negative or Fear Motivation: This motivation is based upon the use of
force, power, fear and threats
...
Some examples of negative
motivation include the fear of failing in the examination, and fear of being
fired or demoted
...
Similarly, fear of being
fired keeps the workers in the line with the organizational rules and
regulations as well as do a satisfactory job
...
It is not recommended or considered as a viable
alternative in the current business and industrial environment
...
However,
punishment or fear of it is still the most common technique of behaviour
modification or control in today's life
...
If a worker does not behave according to the way the
organization wants him to behave, he is fired
...
All religions threaten punishment in the life hereafter if a person does
not behave according to God's and religious rules
...
It has been proposed that while punishment has immediate
and short-term effect in affecting and changing behaviour, the long-term
effects are highly questionable
...

In the context of organizational behaviour, no worker likes to be criticized,
or threatened with employment termination
...

12
...
3 Extrinsic Motivation: This type of motivation is induced by external
factors, which are primarily financial in nature
...
However, the reward the desired behaviour should be
sufficiently powerful and durable so that it improves the probability of
occurrence' of desirable behaviour
...
These financial incentives and rewards have been a
subject of debate whether they really motivate the employees or simply
move them to work and perform
...

12
...
4 Intrinsic Motivation: Intrinsic motivation stems from feelings of
achievement and accomplishment and is concerned with the state of selfactualization in which the satisfaction of accomplishing something
worthwhile motivates the employee further so that this motivation is selfgenerated and is independent of financial rewards
...
Mother Teresa's work in the
slums of Calcutta, India, not only motivates the people who work with her
but also many others who simply hear about her work and then want to
join the team
...
Some of the intrinsic motivators are
praise, recognition, responsibility, esteem, power, status, challenges and
decision-making responsibility
...
5 THEORIES OF MOTIVATION REGARDING BEHAVIOUR
There are basically two types of theories developed that relate to and define the
motivational processes
...
These theories are described in greater detail
...
They attempt to focus on factors
within a person that initiate and direct a certain type of behaviour or check certain
other type of behaviour
...

Thus the nature of needs establishes the nature of motivation that results in a
specific behaviour aimed at reaching the goal of satisfying such needs
...
5
...
Abraham Maslow suggested that people have a
complex set of exceptionally strong needs and the behaviour of individuals at a
particular moment is usually determined by their strongest need
...
His theory is based upon two assumptions
...
Second that these needs
occur in an order of hierarchy so that lower level needs must be satisfied before
higher level needs arise or become motivators
...
Similarly, there is a quotation from the Holy Guru Granth Sahib, the holy
scripture of Sikhs in India when a holy man says to God, "Take your rosary beads
away
...
" This means that
if the people's basic needs which are biological in nature are unsatisfied, then their
total attention will be focused upon these needs and it will not be possible to

366

communicate with them about other matter
...
Maslow postulates five
needs basic needs arranged in successive levers
...
These five needs are arranged in the
form as shown
...
The top two sets of needs are termed "growth" needs because they
are concerned with personal growth, development and realization of one’s
potential
...


Physiological needs: The physiological needs form the foundation of the
hierarchy and tend to have the highest strength in terms of motivation
...
Sexual need and desire is not to be
contused with love, which is at the third level
...

2
...
These are the needs
for self-preservation as against physiological needs, which are for
survival
...
These safety and
security needs are really provisions against deprivation of satisfaction of
physiological needs in the future
...
In a civilized
society such as ours, a person is usually protected from threats of violence
or extremes in climate or fear of material safety, so that the safety and
security needs dwell upon economic and job security, life and medical
insurance and other protective measures to safeguard the satisfaction of
physiological needs in the future which may be unpredictable
...


Love and Social needs: After the needs of the body and security are
satisfied, then a sense of belonging and acceptance becomes prominent m
motivating behaviour
...
We look for an environment where we
are understood, respected arid wanted
...
"Love thy neighbor" has perhaps a profound meaning
...


Esteem needs: This need for esteem is to attain recognition from others,
which would induce a feeling of self-worth and self-confidence in the
Individual
...
Selfrespect is the internal recognition
...
This would result in self-confidence, independence, status,

368

reputation and prestige
...

5
...
This is the highest
level of need in Maslow’s hierarchy and is activated as a motivator when
all other needs have been reasonably fulfilled
...
This need is for soul
searching and is inner-oriented
...
Thus,
"what a man ‘can’ be ‘must’ be
...
Needs are not necessarily linear, nor is the
order of needs so rigid
...
For example, a self-actualized person may
shift his priority to social needs and love needs instead of prestige and
status, if suddenly there occurs a vacuum due to loss of a loved one
...
It is also likely that a well-prepared elite person may
decide to enter a commune where there is overwhelming emphasis on love
and affection rather than climb the corporate ladder
...

The first level needs in the hierarchy, the physiological needs can be
satisfied through such organizational efforts and incentives as adequate
wages and salary, acceptable working conditions in order to improve

369

comfort and avoid fatigue, more leisure time and acceptable work
environment in terms of lighting, ventilation, rest rooms, working space,
heat and noise level
...

The second level needs of safety and security can be satisfied through
management's initiative to provide life insurance, medical insurance, job
security, cost of living increments, pension plans, freedom to unionize,
and employee protection against automation
...
Similarly, unions protect employees
against discrimination and indiscriminate firing
...

When the third level needs of love and affiliation become motivators, then
people find an opportunity in their work environment for establishing
friendly interpersonal relation-ships
...

Creating team spirit by keeping work groups informal wherever possible
with friendly and supportive supervision
...

The fourth level needs of self-esteem involve a feeling of satisfaction and
achievement and recognition for such achievement
...

Give recognition and encouragement for performance and contribution
and delegate additional authority to subordinates
...

Provide adequate training and executive development programs to help
employees successfully accomplish their goals and increase their
competency on their jobs
...

The fifth and top-level needs of self-actualization long for growth arid creativity
and the management can take the following steps to satisfy these needs:
The employees should be given an opportunity to shape their own jobs
...
This will open the channels of
communications further and give the employees an opportunity to get
involved
...
Creativity is tied in
with freedom of expression and freedom of movement
...
Research has established that top managers
generally are more able to satisfy their higher level needs than lower level
managers who have more routine jobs
...

12
...
2 ERG THEORY
The ERG need theory, developed by Clayton Alerter is a refinement of Maslow's
needs hierarchy
...
These three needs are those of Existence, Relatedness andGrowth
...


371

1
...
They include all physiological needs of
Maslow's model and such safety needs which financial and physical
conditions rather than interpersonal relations satisfy
...


2
...
These needs are satisfied by personal
relationships and social interaction with others
...


3
...
They are similar to
Maslow's self-actualization needs
...


ERG theory differs from Maslow's theory in proposing that people may be
motivated by more than one-kind of need at tile same time
...
For example; assume that
a manager’s existence needs are fully satisfied and he looks for more challenging
tasks to satisfy his self-esteem needs
...

12
...
3 McCLELLAND'S THEORY OF NEEDS
Since the lower level needs in Maslow's model are generally satisfied by the
business, societal and legal systems, they are no longer strong motivators
...
The primary motive is the "achievement
motive" and is defined as a desire to succeed in competitive situations based upon
an established or perceived standard of excellence
...
They are constantly preoccupied with a desire for improvement
and look for situations in which successful outcomes are directly correlated with
their efforts so that they can claim credit for success
...
They set more difficult but achievable goals
...
They desire greater pleasure and excitement from solving a complex
problem than from financial incentives or simple praise
...
Power motivation
when applied positively results in successful managers and leaders who prefer
democratic style of leadership
...
The "need for affiliation" (n Aff) is related
to social needs and reflects a desire for friendly and warm relationships with
others
...
This results in information of informal groups
and informal organizations
...
Individuals with high "n Aff” tend to get involved in
jobs that require a high amount of interpersonal contact; and relations such as jobs
in teaching and public relations
...
They tend to avoid conflict
and exhibit strong conformity to the wishes of their friends
...
5
...
As part of a study of job satisfaction, Herzberg and his
colleagues conducted in-depth interviews with over 200 engineers and
accountants in the Pittsburgh area
...
The respondents were required to describe in
detail the type of environment in which they felt exceptionally good about their
jobs and the type of environment in which they felt bad about their jobs
...
If the logic seems justified then it would be
useful to isolate those factors and conditions that produce satisfaction with the job
and those factors, which produce dissatisfaction
...
Herzberg named the
factors that are related to job satisfaction as motivational factors, which are
intrinsic in nature and factors related to job dissatisfaction as maintenance or
hygiene 'factors which are extrinsic in nature
...


Hygiene factors: Hygiene factors do not motivate people
...
They produce no
growth but prevent loss
...
The elimination of dissatisfaction does not mean
satisfaction and these factors simply maintain a “zero level of motivation
...

Some of the hygiene factors are:

374

Wages, salary and other types of employee benefits
Company policies and administration rules that govern the working
environment
Interpersonal relations with peers, supervisors and subordinates
Cordial relations with all will prevent frustration and dissatisfaction
Working conditions and job security
...

Supervisor's technical competence as well as the quality of his
supervision
...

All the hygiene factors are designed to avoid damage to efficiency or morale and
these are not expected to stimulate positive growth
...
A
new plant or upgraded facilities at a plant seldom motivate workers if the workers
do not enjoy their work and these physical facilities are no substitute for
employee feelings of recognition and achievement
...


Motivational factors
These factors are related to the nature of work (job content) and are intrinsic to
the job itself
...
Some of these factors are:
(i)

The job itself: To be motivated, people must like and enjoy their jobs
...
Their morale is high
as evidenced by lack of absenteeism and tardiness
...
It gives the workers a
...
It is human nature to be happy when appreciated
...


375

(iii)

Achievement:

A

goal

achievement

gives

a

great

feeling

of

accomplishment
...
An assembly line worker finishing his routine work hardly gets
the feeling of achievement
...

(iv)

Responsibility: It is an obligation on the part of the employee to carry out
the assigned duties satisfactorily
...
It
is a good feeling to know that you are considered a person of integrity and
i
n

Self-actualization

t
Esteem

e
l

Social

l
i

Safety

g
e Physiological
n
c
e
Hygiene factors

Motivational Factors

t
o
be given a higher responsibility
...

(v)

Growth and advancement: These factors are all interrelated and are
positively related to motivation
...
The Herzberg's two-factor model is tied in with Maslow's
basic model in that Maslow is helpful in identifying needs and Herzberg
provides us with directions and incentives that tend to satisfy these needs
...

Some researchers do not agree with Herzberg's model as being conclusive, since
the results were based primarily on the responses of white collar workers
(accountants and engineers) and do not necessarily reflect the 'blue collar workers'
opinion who may consider hygiene factors as motivational factors
...
They are highly motivated by financial rewards,
organized supervision, well-defined work rules, pleasant working environment
and positive employee 'interaction and do not give much importance to
achievement and self-actualization
...
The theory was developed on the basis of "critical
incident" method
...
This means that the theory is
"method bound" and studies that use other" methods for measuring satisfaction
and dissatisfaction fail to support the validity of Herzberg's theory
...

However, this theory has contributed to one management program that has lent
itself to the enhancement of motivators
...


12
...
These theories
identify the variables that go into motivation and their relationship with each
other
...
6
...

The underlying assumption is that a man is a rational being and will try to
maximize his perceived value of such rewards
...
People are highly motivated if they believe that
a certain type of behaviour will lead to a certain type of outcome and their extent
of personal preference for that type of outcome
...
These are:

Expectancy: This is a person's perception of the likelihood that a
particular outcome will result from a particular behaviour or action
...
For example, if a student works hard during the
semester, he will expect to do well in the final examination
...
There is some
probability attached to this outcome
...
For example, a
worker works hard and is absolutely certain (expectancy = 1
...
6) that
he can produce a high of 20 units per day
...

Instrumentality: This factor relates to a person's belief and expectation
that his performance will lead to a particular desired reward
...
For example, working
hard may lead to better performance-which is the first level outcome, and

378

it may result in a reward such as salary increase or promotion or bothwhich is the second level outcome
...
Similarly,
a professor may work had to improve upon his techniques of teaching and
communication (first level outcome) in order to get promotion and tenure
(second level outcome)
...

Valence: Valence is the value a person assigns to his desired reward
...
It is not the actual
value of the reward but the perceptual value of the reward in the mind of
the worker that is important
...
Another person may be
more interested in job security than status
...
Instrumentality: The worker must be
confident that such high performance will be instrumental in getting
desired rewards
...
Hence motivation is related to these three factors as:
Motivational Force (M) =Expectancy (E) x lnstrumentality (I) x Valence
(V)
...

The management must recognize and determine the situation as it exists and take
steps to improve upon these three factors of expectancy, instrumentality and

379

valence for the purpose of behavioural modification so that these three elements
achieve the highest value individually
...
The worker may lack the necessary
skills and training in order to believe that his extra efforts will lead to
better performance
...

Low performance-reward instrumentality relationship
...
The
reward policy may be inconsistent and may depend upon factors other
than simply the performance, which the worker may not be aware of or
may not consider fair
...
Since the managers may look
at the value of a reward differently than the worker, the management must
investigate the desirability of the rewards, which are given on the basis of
performance
...
The Vroom's model
tries to explain as to what factors affect a person's choice of a particular
course of action among all available alternatives and why a person would
be better motivated towards achievement of certain goals as compared to
some other goals
...

12
...
2 EQUITY THEORY
Equity theory is based on the assumption of some researchers that one of the most
widely assumed source of job dissatisfaction is the feeling of the employees that
they are not being treated fairly by the management or the organizational system
...
First, the workers want to get a fair reward

380

for their efforts
...

If you put in more efforts into-your work, you expect to get out of it more
rewards
...
Imagine that you got your MBA from an Ivy League
university and are offered a job for $30,000 per year
...

Suppose you do get $35,000 as you hoped for
...
A few days into the job you find out that another person with
the same degree and background from the same university was hired at the same
time at $40,000 per year
...
This inequity can be a source of
dissatisfaction
...
They make judgments of equity or
inequity between their input and outcomes and the inputs and outcomes of others
...
When such inequity exists, whether it is perceived
or real, employees will feel uneasy about it and will tend to take steps that will reduce
or eliminate this inequity
...
Equity theory proposes
that under-rewarded employees tend to produce less or produce products of inferior
equality than equitably rewarded employees, and over-rewarded employees tend to
produce more or product of higher quality than equitably rewarded employees
...
However, they are more willing to accept overpayment by

381

justifying such overpayment than by taking steps to reduce this inequity
...

The extent of this tension reflects the magnitude and type of inequity
...

The greater the extent of perceived inequity the greater is the strength of
such motivation
...
It must be understood that inequity exists only in
the perception of the individual
...
If people are satisfied
in spite of any inequity that might exist or if they can justify inequity by one way
or another then in their own perceptions, such inequity does not exist
...

They may change their inputs either upwards or downwards to a more
equitable level
...

They may alter their outcome to restore equity
...
may demand
better pay and better working conditions for the same input either by
staging walkouts and strikes or through organized union negotiations
...
They may
artificially increase the importance of the jobs they are doing in their own
minds or decrease the value of their own input by believing that they are
not really working very hard
...
"

382

Employees may resign from their jobs
...

People may change the level of comparison with other employees
...

For example, a professor from Business Administration division who did
not get promotion may compare it equitably with another professor from
Social Sciences division who did get promotion by believing that the
requirements for promotion for both divisions are not the same or that the
professor from Social Science division did work harder to get his
promotion
...
6
...
The theory as proposed by
Edwin Locke, studies the processes by which people set goals for themselves and
then put in efforts in order to achieve them
...
Specific goals are clear and tend to give a
clear direction to the worker, resulting in improved performance
...

Goal specificity: A specific goal identifies the target in quantitative terms
...
For example, if a worker is producing
50 units a day, which is the average output, he may set his goal of 60 units
a day to be achieved within seven days
...
Meeting a goal provides the worker with a sense of achievement,
pride and personal satisfaction
...
Specific goals reduce
ambiguity and the worker has very clear idea as to what is expected of
him
...
Reaching an easy target is not competitive and hence hardly
exciting
...
Goal
commitment is independent of whether the goal is set by the worker
himself or is assigned by superiors, but depends upon expectations of
success and degree of success
...

The most important element of goal setting theory is the acceptance of goal by the
workers
...
A goal that
one establishes for him becomes an integral part of him
...
A person with self-set goals is most likely to strive harder to
achieve them
...
Acceptance becomes easier if the workers
are encouraged to participate in the goal setting process
...
There is evidence that goal setting, as
outlined, improves performance about 90% of the time, and that comparatively
high achievers set comparatively more difficult goals and are much more satisfied
with intrinsic rewards rather than extrinsic rewards
...
7 MANAGEMENT BY OBJECTIVES (MBO)
A logical extension of goal setting theory is Management by Objectives, which
involves systematic and programmatic goal setting throughout an organization
...
These objectives and goals are consistent with the organizational
goals
...
Also known as Goal
Management, MBO is based upon the assumption that involvement leads to
commitment and when an employee participates in goal setting as well as setting
standards for measurements of performance towards that goal, then the employee
will be motivated to perform better and in a manner that directly contributes to the
achievement of organizational objectives
...
Central goal settings: The first basic phase in the MBO process is the
defining and clarification of organizational objectives
...

These objectives should be specific and realistic
...
Once
these goals are clearly established, they should be made known to all the
members of the organization and be clearly understood by them
...
Manager-subordinate Involvement: After the organization goals have been
set and defined, the subordinates’ work with the managers in setting their
individual goals relative to organizational goals
...
The goals of the subordinates are specific
and short range and primarily indicate what the subordinate's unit is capable
of achieving in a specified period of time
...
In this manner,
everyone gets involved in the goal setting
...
Matching, goals and resources: The objectives in themselves do not mean
anything unless we have resources and means to achieve those objectives
accordingly, management must make sure that the subordinates are provided
with necessary tools and materials to effectively achieve these goals
...
However, just as in goal
setting, the allocation of resources should also be done in consultation with
the subordinates
...
Freedom of implementation: The manager-subordinate task force should
have adequate freedom in deciding on the utilization of resources and the
means of achieving the objectives
...

5
...
These reviews would
determine if the individual is making satisfactory progress
...
They also help the
subordinates understand the process of MBO better
...
These periodic reviews are necessary since
priorities and conditions are constantly changing and these must be
periodically monitored
...
Managers
have a responsibility to assign or set goals in such a manner so as to have the
maximum motivational potential
...
This
would create an optimal performance environment for the employees
...
These are:
1
...
As the

386

planning process is improved, it helps in a better overall management
system
...


The managers are required to establish measurable targets and standards of
performance and priorities for these targets
...
Additionally, since
these targets are tailored to the particular abilities of the subordinates, it
obtains maximum contribution from them thus providing optimum utility
of human resources
...


Both the manager and the subordinates know what is expected of them and
therefore there is no role ambiguity or confusion
...


It makes individuals more aware of company goals
...
But with MBO, the subordinates feel proud of being
involved in the organizational goals
...


5
...
By taking keen interest in the development of skills and abilities
of

subordinates,

the

management

provides

an

opportunity

for

strengthening' those areas that need further refinement thus leading to
career development
...


The system of periodic evaluation lets the subordinates know how well
they are doing
...
These appraisal methods are superior to trait
evaluation, which is based upon such factors as liability, cooperation,
loyalty and self-discipline, since they focus on results and not on some
subjective intangible characteristics
...


7
...
This
continuous feedback helps clarify any ambiguities, refine and modify any

387

processes or any aspects of goals
...

Some of the problems and limitations associated with MBO are as follows:
1
...
This creates rigidity and discipline, which generally lead to
better performance
...
Accordingly, MBO can only succeed if it has the complete support of
top management
...


Subordinates may dislike MBO
...
This may lower their morale and
they may become suspicious about the philosophy behind MBO
...


3
...

It does not leave any ground for subjective goals
...
Thus, MBO rewards
productivity at the cost of creativity
...


There is considerable paperwork involved and it takes too much of the
manager’s time
...
Some managers may resist the
program because of this increased paperwork
...


The emphasis is more on short-term goals
...
This is so
because all the variables affecting the process of planning cannot be
accurately forecast over the long run due to continuously changing socio-

388

economic and technical environment
...

6
...


7
...
This makes the overall functioning of all
systems very difficult
...


Group goal achievement is more difficult
...
For example, the production department cannot produce a set quota
if it is not sufficiently supplied with raw materials and personnel
...


9
...


12
...
When a person says that he has high job
satisfaction, it means that he really likes his job, feels good about it and values his
job highly
...
It is highly debatable as to which one is the cause
and which one is the effect but they are known to be correlation
...

12
...
1 CONSEQUENCES OF JOB DISSATISFACTION
Job satisfaction or dissatisfaction is of great concern to management since there
seems to be a relationship between job satisfaction and job performance
...
Accordingly, managers must be constantly watching for any

389

signs of low morale and job dissatisfaction and take corrective action as soon as
possible
...
Employee unrest: Unrest is a general condition of unhappiness with job and
may manifest itself in a number of ways
...

He may start complaining about work conditions and find faults with
everything that goes on in the work environment
...
Sometimes, this unrest becomes so frustrating that it may lead to
such undesirable habits as excessive drinking
...
If this unrest affects a
sufficient number of workers they may take a collective action such as goslows, work stoppages, strikes and other allied group actions
...
Absenteeism: Job satisfaction is highly related to absenteeism
...
" This is known as voluntary absenteeism as against
involuntary absenteeism due to illness or other emergency reasons, which is
unavoidable and is not related to job satisfaction
...
In such work units where job satisfaction was low, attendance at work
was much lower
...

3
...
It is assumed that this tardiness is not due to some
explainable reason such as getting children ready for school but only due to
the fact that employees really do not care much for the job
...

4
...
According to Arnold and
Feldman, organizational units with the lowest average satisfaction levels tend
to have the highest turnover rates
...
There
are other reasons for voluntary turnover such as alternative places of
employment,

geographical

constraints,

family

responsibilities,

highly

marketable employee's special skills, and simply an environment change
...
Turnover may be voluntary which
is initiated by the employee and may be due to job dissatisfaction or other
personal reasons beyond management control it may be initiated by
management and may be due to unsatisfactory conduct exhibited by
employees such as incompetence, violation of rules, dishonesty, laziness,
insubordination and habitual absenteeism
...
In any case, the matter of turnover should be
seriously investigated and corrective measures taken wherever necessary
...
Union activity: Studies -have shown that satisfied employees are generally
not interested in unions and they do not perceive them as necessary
...

Furthermore, the employees feel that individually they are unable to influence'
changes that would result in the elimination of such factors that cause job
dissatisfaction
...
The level of union activities is related to level of
job dissatisfaction
...

6
...
There has been
evidence that employees who choose early retirement tend to hold less
positive attitudes towards their jobs
...

12
...
2 JOB SATISFACTION
Job satisfaction results from the employee's perception that the job content and
context actually provide what an employee values in the work situation
...
" This positive emotional state is highly
contributory to an employee's physical and mental well being
...

12
...
3 SOURCES OF JOB SATISFACTION
Many research studies have been conducted on the subject of job satisfaction and
employee morale in order to establish some of the causes that result in job
satisfaction
...
Some of these factors have been grouped into
four identifiable, discreet categories
...


Organizational factors: Some of the organizational factors as sources of
job satisfaction are:
Salaries and wages: Salaries and wages play a significant role in
determining the level of job satisfaction irrespective of the level of
position that an employee holds in the organization
...
Pay is
also the prime mover since it satisfies the first level needs of Maslow's

392

model of motivation
...

Promotions: Promotional opportunities are another source of job
satisfaction, especially at higher-level jobs, because a promotion
indicates an employee's worth to the organization which is highly
morale boosting
...

Company policies: Organizational structure and organizational
policies play an important role in establishing an environment which is
conducive to job satisfaction
...

Organizational policies usually govern employee behaviour, and
depending upon how strict or liberal these policies are, can generate
positive or negative feelings about the organization
...
Employees, who
feel unduly constrained because of strict policies or feel that they are
not treated fairly, would not be happy with the job
...


Work environment: The work environment factors include the following:
Supervisory style: It has been established that wherever the
supervisors are friendly and supportive of workers, there is job
satisfaction
...
In any case, a
close relationship between the supervisor and the worker and
worker participation in decision making about such issues that
directly concern the worker are highly conducive to job
satisfaction
...
Larger group sizes usually lead to lower level of job
satisfaction due to the fact that large groups lead to poor
interpersonal communication, reduced feeling of togetherness and
difficulty in getting to know each other more closely
...
Work group also serves as a social, moral and
emotional support system for the employee
...

Working conditions: Good working conditions are highly
desirable because they lead to greater physical comfort
...
While such
desirable working conditions are taken for granted, and may not
contribute heavily towards job satisfaction, poor working
conditions do become a source of job dissatisfaction, simply
because they lead to physical discomfort and physical danger
...
The job content has two
aspects
...
The higher
the level of these factors, the higher the job scope and thus higher
the level of satisfaction
...
It has been
found that a moderate amount of variety is most effective
...


394

Additionally, lack of autonomy and freedom over work methods
and work pace creates a sense of helplessness
...
It is highly dehumanizing
and causes dissatisfaction
...


Personal factors: While the external environment within the organization

and the nature of the job are important determinants of job satisfaction, personal
attributes of individual employees play a very important role as to whether they
are happy at the job or not
...
Age, seniority and
tenure have considerable influence on job satisfaction
...
Meeting these
challenges and succeeding is a high source of satisfaction: Even if they do not
move up in their position, it is equally natural to assume that with, age, people
become more mature and realistic and less idealistic so that they are willing to
accept available resources and rewards and be satisfied about the situation
...
Tenure assures job security, and the feeling or job security is
highly satisfactory to employees
...
Thus employees with tenure are expected to be
highly satisfied with their jobs
...
Some of the personality traits that are directly related to
increased job satisfaction are self-assurance, self-esteem, maturity, and
decisiveness, sense of autonomy, challenge and responsibility
...


12
...
Stronger “will” reflects stronger motivation to
achieve a goal
...
It is an action, movement or behaviour, which must fulfill the unsatisfied
need
...
Motivation can also be induced by external
factors such as financial rewards for better output or it could be intrinsic in nature,
which is inner-generated
...
Historically speaking, the concept of motivation can be traced back
twenty-three centuries as reflected in the Greek and Indian writings
...
Similarly, the Greek concept of Hedonism is based upon realizing
maximum pleasure while at the same time avoiding pain and discomfort
...

These views were held over a long period of time so that the concept of
motivation came under scientific study and investigation only in the early 1930s
...
The content theories of work
motivation explain the nature of motivation in terms of types of need that people
experience
...

Abraham Maslow built the needs in order of priority into a hierarchy
...
Then in order came the needs for safety and security, love and affection,
need for respect and self-esteem and finally the self-actualization need which is
considered to be the ultimate fulfillment of life
...

ERG theory, developed by Clayton Alderfer, condenses the five needs proposed

396

by Maslow into three and ERG stands for existence, relatedness and growth
...
Relatedness
needs roughly correspond to social and self-esteem needs and finally, the growth
needs are similar to primarily self-actualization needs and partially to esteem
needs
...
' According to this theory, the
most prominent need from organizational behaviour point of view is the need for
achievement, power and affiliation
...
Herzberg's two-factor theory classifies
all the work related factors into two categories
...
These factors prevent dissatisfaction but do not
motivate
...
are: Wages and other benefits, working
conditions, organizational rules and policies, cordial relations with 'peers and
superiors, job security and so on
...

Motivational factors on the other hand have a positive influence on morale,
satisfaction, efficiency and higher productivity
...

The process theories of motivation put forth hypothesis as to how motivation
occurs and identify some of the variables that induce motivation
...
This model is based upon the belief that motivation
is determined by the nature of reward people expect to get as a result of their job
performance
...
This means that a person will be willing to work hard if
he believes that such hard work will lead to better performance and such
performance will lead to reward which the employee values
...
This theory suggests that employees will
be motivated to work hard if they sincerely believe that the management is
treating them fairly and equitably
...
Goal-setting theory is
a relatively applied approach to motivation and is based upon the assumption that
the type of goal as well as the degree of challenge in it would determine the
degree of motivation in the individual to achieve such a goal
...
A logical
extension of goal setting theory is Management by Objectives (MBO), which
involves systematic and programmatic goal setting throughout the organization
...
When the subordinates actively participate in the process of goal
setting, they are highly motivated to achieve such goals
...
If the
employees are highly dissatisfied with their jobs, their morale would be very low
which would adversely affect their motivation
...
These are: Employee unrest, excessive absenteeism and
tardiness, excessive and short-term turnover, destructive union activity, desire of
employee to retire early and so on
...
On the other hand, motivation is closely tied with job
satisfaction so that management must take steps and offer privileges, which would
make the employees happy with their jobs
...
While all these
organizational and work related factors are important contributors and catalysts
for motivational processes, the most important factor is the person himself
...


398

People with general1y negative attitudes about life and pessimists always
complain about everything including the job
...


12
...


Motivation is defined as a drive, which tries to satisfy an existing
unsatisfied need
...


2
...
Which source do you think is the
most suitable in a free economic society as ours and why?

3
...


4
...
How rigid is this order of priority? Explain
as to what circumstances would justify a different order of priority
...


What can the management do to satisfy the various level needs of workers
as shown in Maslow's model?

6
...
How does it significantly
differ from Maslow's model of motivation?

7
...
Do you agree with this concept?
Explain your reasons
...


Differentiate between the need theories of motivation and the process
theories of motivation
...


Describe in detail Vroom's Expectancy Model of motivation
...


10
...
What are some of the
standards against which the concept of "fairness" can be measured?

399

11
...
Explain some of the contributions of
the concept of MBO towards employee motivation
...


Give some of the suggestions for improving the effectiveness of MBO
process
...


13
...
Explain in detail some of the indicators of job
dissatisfaction and the steps that management can take in eliminating the
conditions that cause job dissatisfaction
...


What are some of the organizational and work related factors that are
necessary for job satisfaction?

15
...
11 SUGGESTED READINGS
1
...


2
...


3
...
Mullins, Management and Organisational Behaviour (2nd ed
...


4
...
), Irvin/Tata McGraw Hill
...


Stephen P
...
), Prentice Hall
India
...


Earnest R
...


400

COURSE: MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR

COURSE CODE: MC-101
LESSON: 13

AUTHOR: SURINDER SINGH
VETTER:
DR
...


STRUCTURE:
13
...
2 Views on Social Responsibility
13
...
4 Factors Affecting Social Orientation
13
...
6 The Indian Scenario
13
...
8 Social Audit
13
...
10 Methods of Social Audit
13
...
12 Social audit in India
13
...
1Self-Test Questions
13
...
1

INTRODUCTION
Social responsibility of business refers to what the business does, over and above
the statutory requirement, for the benefit of the society
...


The

term corporate citizenship is also commonly- used to refer to the moral
obligations of business to the society
...
The operations of business enterprises affect a
wide spectrum
...
The shareholders, the suppliers of
resources, the consumers, the local community and society at large are affected by
the way an enterprise functions
...
Goyder argues: Industry in the twentieth century can no
longer be regarded as a private arrangement for enriching shareholders
...
If the system, which we know
by the name private enterprise, is to continue, some way must be found to
embrace many interests, which go to make up industry in a common purpose
...
C
...
The
declaration issued by the international seminar on the social responsibility of
business held in India in 1965 also co-related the Gandhian concept of trusteeship
with the social responsibility of business as "responsibility to customers, workers,
shareholders and the community
...
H
...
Singhania classifies the
nature of the social responsibility of business into two categories
...
The first involves the
acceptance of the fact that business is not merely a profit-making occupation but a
social function, which involves certain duties, and requires that appropriate ethics
are followed
...
It is also the duty

402

of a business to undertake new investment and promote the dispersal of economic
activity through ancillarisation and the setting up of industries in backward areas
so as to spread enterprise and take employment to the doorsteps of labour
...


13
...
According to the classical view, business has
only economic objectives and no other responsibility beyond that
...
This is a fundamentally subversive doctrine
...
Proponents this view like Davis
and Blomstorm hold that business is a social institution, performing a social mission
and having a broad influence on the way people live and work together
...

1
...


2
...


3
...


4
...


5
...


403

6
...


7
...


13
...
Further, the social
orientation or the extent of social involvement of a company may change over
time
...
3
...
Notables ones include Carroll's model, Halal's
model and Ackerman's model
...
Carroll, who defines corporate social responsibility as the entire range
of obligations business has to society, has proposed a three-dimensional
conceptual model of corporate performance
...

The firm being an economic entity, its primary responsibility is economic, i
...
,
efficient operations to satisfy economic needs of the society and generation of
surplus

for

rewarding

the

investors

and

further

development
...
Ethical responsibilities are certain norms, which the
society expects the business to observe though they are not mandated by law
...
Discretionary responsibilities refer to the voluntary
contribution of the business to the social cause, like involvement in community
development or other social programmes
...
Further, these
terms are not value-free and different people may interpret them differently
...
Economic responsibilities are at the base of the pyramid,
succeeded by legal responsibilities, ethical responsibilities and, finally, philanthropic
responsibilities
...
This is not a right view
...

Figure 13
...


Figure 13
...
He point out that a firm can only
attempt to unite the diverse interests of various social groups to form a workable
coalition engaged in creating value for distribution among members of the coalition
...
For example, large spending for social cause may affect the profitability
of the firm, which could have implications for the stakeholders, and the future of the
firm
...
According to Ackerman's
model, there are three phases in the development of the social responsiveness of a
company
...
The company
appointing staff specialists or external consultants to study the problem and suggest
ways of dealing with it characterizes the second phase
...


405

13
...
2 EXTENT OF SOCIAL ORIENTATION AND INVOLVEMENT
On the basis of the extent of social orientation and involvement of companies, this
author would classify them in to the following categories
...


Anti-social: Not only that these companies have no social orientation but
also they are unfair and unscrupulous in the conduct of the business
...
Promoters and
top managerial personnel of several organizations have been found to
engage in insider trading, price rigging and the like
...


2
...
The
attitude is that going by the rules and regulations is good enough; there is
the government and other organizations to work for the social cause and it
is not the business of the business
...


Peripheral: These companies are slightly a shade better than the
indifferent category
...


4
...


5
...
What distinguishes these companies from those in the
preceding category is mostly their ability to commit significant amount of
resources to make the social orientation meaningful
...
4

FACTORS AFFECTING SOCIAL ORIENTATION

406

Important factors, which influence the social orientation of companies, include the
following
...


Promoters and Top Management: The values and vision of promoters
and top management is one of the very important factors, which influence
the corporate social responsibility
...


Board of Directors: As it is the Board of Directors, which decides the
major policies and resource allocation of company, the attitude of the
members of the Board is an important influencer of the social orientation
...


Stakeholders and Internal Power Relationship: The attitude of various
stakeholders like shareholders, creditors, employees etc
...
As
suggested by the Halal’s model described in the previous section of this
chapter, a firm can only attempt to unite the diverse interests of various
social groups to' form a workable coalition engaged in creating value for
distribution among members of the coalition
...


4
...
For example,
a resourceful firm located in a poor community may be expected to
contribute to the development of education and health facilities etc
...
The orientations or approaches may vary in
accordance with the environment
...


5
...


6
...
Business shall play the rules of the game
...
vary between nations
...
Further, what is legally controlled in some countries have no
legal control in some other countries
...
The social orientation would also
depend on the government's view of social responsibility and the power
and earnestness of government / agencies (like SEBI, for example) in
dealing with defaulting companies
...


Political Influences: Political influences include pressure exerted by
special interest groups in society and media to control business practices
...
They use a variety of
methods like lobbying to persuade government and public agencies to
adopt regulatory measures, conducting public awareness campaigns, and
even direct confrontation with the business in some cases
...


Competitors: The competitive forces also influence social orientation of
company
...
When one
or some companies become socially involved, others may be encouraged
or provoked to do some thing
...
The other way by which the
society benefits by competitive behaviour is the actions of suing
competitors for unfair practices or publicly exposing the misbehaviour of
competitors
...


Resources: the financial position and other resources of the company also
affect social involvement of companies
...


10
...
Some
companies have well laid down codes and norms of ethical behavior
...
Gene Laczniak summarizes
five ethical standards that are in vague as follows
...


(ii)

The Utilitarian Principle: Act in a way that results in the greatest
good for the greatest number
...


(iv)

The Professional Ethic: Take actions that a disinterested panel of
professional colleagues would view as proper
...
5

RESPONSIBILITIES OF DIFFERENT SECTIONS
There is no unanimity of opinion as to what constitutes social responsibility of
business
...

1
...

The fact that the shareholders have taken a great risk in making investment
in the business should be adequately recognised
...
To safeguard the capital of the shareholders and to
provide a reasonable dividend, the company has to strengthen and
consolidate its position
...
Needless to say, to provide
dividend, the company should earn sufficient profit
...
If a company fails to cope with changes in a
changing and dynamic world, its position will be shaken, and the
shareholders' interests will be affected
...
The shareholders are interested not only in the protection
of their investment and the return on it but also in the image of the
company
...
It may be mentioned here that the shareholders also have certain
responsibilities, which they have to discharge to protect their own
interests
...
At the same time, they shall appreciate
the responsibility of the business to other sections of society: to the
workers, consumers and the community
...


RESPONSIBILITY TO EMPLOYEES: The success of an organisation
depends to a very large extent on the morale of the employees and their
whole-hearted co-operation
...
The responsibility of the organisation to
the workers include:
(i)

The payment of fair wages;

(ii)

The provision of the best possible working conditions;

(iii)

The establishment of fair work standards and norms;

(iv)

The provision of labour welfare facilities to the extent possible and
desirable;

(v)

Arrangements for proper training and education of the workers;

(vi)

Reasonable chances and proper system for accomplishment and
promotion;

(vii)

Proper recognition, appreciation and encouragement of special
skills and capabilities of the workers;

(viii) The installation of an efficient grievance handling system;
(ix)

An opportunity for participating in managerial decisions to the
extent desirable
...
Thus, by discharging its
responsibilities to the employees, the business advances
...

It may, however, be pointed out that the expenditure on labour welfare,
etc
...
This aspect has to be particularly
taken note of by public sector enterprises
...
It shall not result in
the formation of islands of affluence or comfort in the midst of poverty
and suffering "at the expense of society
...


RESPONSIBILITY TO CONSUMERS: According to Peter Drucker,
"there is only one valid definition of business purpose; to create a
customer
...
He alone gives employment
...
It has been widely recognised that
customer satisfaction shall be the key to satisfying the organisational
goals
...


(ii)

To do research and development, to improve quality and introduce
better and new products
...


(iv)

To supply goods at reasonable prices even when there is a seller's
market
...


(vi)

To ensure that the product supplied has no adverse effect on the
consumer
...


(viii) To avoid misleading the customers by improper advertisements or
otherwise
...


(x)

To understand customer needs and to take necessary measures to
satisfy these needs
...
Consumerism is an organised endeavour of the
consumers to protect their rights
...
To
protect consumer rights and to make the business discharge its
responsibilities to them, the consumers should give up their indifferent
attitude and build up a strong consumer movement
...


RESPONSIBILITY TO THE COMMUNITY: A business has a lot of
responsibility to the community around its location and to the society at
large
...


412

(ii)

Rehabilitating the population displaced by the operation of the
business, if any
...


(iv)

Taking steps to conserve scarce resources and developing
alternatives, wherever possible
...


(vi)

Contributing to research and development
...


(viii) Promotion of ancillarisation and small-scale industries
...


(x)
13
...


THE INDIAN SCENARIO
The Indian business sector presents a mixed picture as far as social responsibility
is concerned
...
R
...
Tata, who was instrumental in conducting the first social
audit in India and perhaps in the world, was of the opinion that while on the side
of production, of growth, of efficiency, Indian industry, on the whole, did
remarkably well, usually against odds and in spite of crippling infrastructural
shortages unknown in advanced countries, on the distributional side, however, its
record was often poor and, in some respects, dismal, judged by the size of the
black-market, the volume of black money and the general corruption that
pervaded our economic life
...
"Although it is the trader rather than the manufacturer who
is mainly responsible for such diversion of goods and for the resulting heavy
burden imposed on the consumer, the fact remains that, to that extent, corporate
management of even of large Indian industries has, perhaps unavoidably, failed in
the important obligation of ensuring that their -goods reach the consumer at fair
prices"
...
It is gratifying to

413

note that a number of leading companies in India have shown recognition of the
social responsibility of the corporate sector
...
up hundreds of institutions of public service like schools,
colleges, management institutes, dispensaries, hospitals, technological institutes,
research institutes (medical, scientific and technological), libraries, dharamshalas,
cultural institutions, institutes for the dumb, deaf and blind, museums and places
of religions worship
...

Many businessmen have risen up to the occasion to help the victims of droughts,
floods, earthquakes and other natural calamities
...
The problem of environmental pollution caused by
industries is very serious in a number of places in our country
...
In
fact, some of the public sector enterprises are notorious for their irresponsibility in
this matter
...
R
...
Tata has rightly pointed out, high standards of behaviour
and the discharge of social obligations should be expected of or demanded from,
not only business and industry but from all economic groups in the country whose
actions have an impact on the public weal
...

The millions of man-days of production lost in India every year owing to labour
unrest and the violent form, which such unrest has taken in many cases, clearly
indicate the need for a new approach to trade unionism and recognition of its
social obligations
...
While it is a welcome suggestion, it should be
ensured that the "collaboration" between labour and capital does not become
instrumental in exploiting society
...

But the fact remains that the public sector in India has yet to prove that it is more
responsive to society than the private sector
...
As far as the pollution of
the environment is concerned, the public sector is as guilty as the private
...
This is reflected in the mounting losses of
many public enterprises
...
But gone are the days of such philosophy
...
The huge losses incurred by the Indian public
sector are not the result of any charity; they are the inevitable outcome of
inefficiency, irresponsibility and mismanagement at various levels
...
There is also a very wide gap between the sweet
expectations from the public distribution system designed to save the Common
man from the clutches of the "unscrupulous private sector" and the bitter
experiences of the way the public distribution system functions
...
said
about the efficiency of the service of the public sector transport undertakings the
better
...

The Sachar Committee suggested that companies in the public sector, which were
very much a part of the total corporate sector and accounted for about 70 per cent
of the total investment in the corporate sector, must reckon with the social cost
and social benefits arising out of any given investment
...
It is natural, therefore, to expect from the
private corporate sector that, in the matter of investment, it will also show a

415

similar consideration of social cost and social benefit
...
It is
in this sense that the social responsibility of business, as far as the private sector is
concerned, is another name for social accountability and is, in our view, a mere
extension of the principle of public disclosure to which the corporations must be
subject
...

13
...
The important arguments for and against the social involvement of
business are given below
...
7
...


(ii)

Business, which is an integral part of the social system, has to care
for the varied needs of the society
...


(iv)

Social involvement of business would foster a harmonious and
healthy relationship between the society and business to the mutual
benefit of both
...


(vi)

Social involvement may discourage additional government
regulation and intervention
...


13
...
2 Arguments against Social Involvement of Business
1
...
There are government and
social organisations to carry out social activities
...


Involvement in social activities could adversely affect the economic health
of a business enterprise
...


3
...
point in exalting the social involvement of
business
...


4
...


5
...


6
...


13
...
In other words, social audit is a tool for evaluating how
satisfactorily a company has discharged its social responsibilities
...
Bauer and Fenn Jr
...
" According to Ahmed Belkaoui,
"social audit much like the financial audit - is an identification and examination of
the activities of the firm in order to assess, evaluate, measure and report their

417

impact on the immediate social environment
...


Identification of the firm's activities having potential social impact;

2
...


Measurement of the social costs and benefits; and

4
...


Dr
...
Abt, in his book Audit for Management, suggests that a social Audit
should, as far as possible, be approximated to an ordinary commercial audit; that
this should be based on a social balance sheet with a "credit" side and "debit"
side
...
After suggesting that every "input" and
"output" must be measured in monetary terms, he points out that the basic purpose
of a business corporation is to maximize the financial return, earned on its
financial investment plus the amount of social return on its social investment
...
He further asserts that, sooner
or later, the social balance sheet must become a mandatory part of the normal
commercial balance sheet of the company
...
9

OBJECTIVES AND BENEFITS OF SOCIAL AUDIT
1
...


2
...


3
...


4
...


13
...
Some of the
important methods of social audit developed by different people or organisations
are given below
...
This involves the determination of
the objectives of the social programmes and a social cost benefit analysis
of the programmes with a view to determining whether these objectives
have been met
...
e
...


(iii)

Macro-Micro Social Indicator Audit: The macro-micro social indicator
audit attempts to evaluate the micro indicators (i
...
, the company's
performance) against a set of macro indicators such as national policies
...


(v)

Partial Social Audit: Partial social audit evaluates any particular aspects
of social performance like energy conservation or ecological preservation
...


(vii)

Corporate Rating Approach: In contradistinction to the audits
mentioned above, this is

an external evaluation of the company's

performance by public groups like consumer organisations, social welfare
organisations or media
...

13
...
The important obstacles are:
1
...


2
...


3
...


4
...


5
...


6
...


As the Committee set up by the Tata Iron and Steel Company Limited (TISCO) to
conduct the Social Audit of the TISCO points out, though social audits have been
undertaken in a number of countries, principally in the U
...
A
...
K
...
There is no agreement,
much less unanimity, among its most ardent proponents, particularly as to its
basic principles or its true objectives
...
Melvin Anshen, Professor of Public Policy and Business
Responsibility at the Graduate School of Business, Columbia University, and an
eminent authority on the subject, remarks that "the social audit has been described
as an idea whose time has come but which isn't ready to be taken off the drawing
board and put to work"
...
12 SOCIAL AUDIT IN INDIA
Although, the idea of social audit originated in the United States about half a
century ago, it is only recently that it received serious attention of corporations
even in the advance countries
...
It was conducted by the Social Audit

420

Committee appointed by the Board of Directors of the company "to examine and
report whether, and the extent to which, the company has fulfilled the objectives
contained in Clause 3A of its Articles of Association regarding its social and
moral responsibilities to the consumers, employees, shareholders, society and the
local community
...
Some companies like the Cement Corporation
of India have been making some social reporting in their annual reports
...
The Committee has further suggested that it is
possible that a company may be required to alter its Memorandum with respect to
the objects of the company so as to carry out its activities as an obligation to the
concept of social responsibility
...
The concept of social audit has not yet taken off in India
...
13 SUMMARY
The rationale of the concept of social responsibility is that industry "can no longer
be regarded as a private arrangement for enriching shareholders
...
If the system which we know
by the name private enterprise is to continue, some way must be found to embrace
many interests who go to make up industry in a common purpose
...
Social responsibility of business is
advocated on the ground that the resources it makes use of are not limited to those
of the proprietors and the impact of their operations is felt also by many a people
who are in no way connected with the enterprises
...
Hence, a business enterprise has to be socially
very responsive so that a social balance may be struck between the opposing
interests of these groups
...
Besides, discharge of
social responsibilities will be in the company's own interest, because it will help
build up good rapport with the society and Government and improve employee
morale and industrial relations
...
It will affect the financial health of companies, it
may lead to attempt to dominate the community's affairs, the costs of social
involvement may be passed on to the consumers by price increase, for many
companies it is a tax saving gimmick, so goes the arguments
...
The "social audit - much like the financial audit - is an identification
and examination of the activities of the firm in order to assess, evaluate, measure
and report their impact on the immediate social environment
...
Some of the important
methods of social audit developed by different people or organisations include
social process audit, financial statement format audit, macro-micro social
indicator audit, constituency group audit, partial social audit, comprehensive
audit, and corporate rating approach
...
14 SELF-TEST QUESTIONS
1
...
How can you evaluate the social responsibilities of business in Indian economy?
3
...
Explain the benefits and limitations of social responsibilities?
13
...


Cherrunilam, Francis (2003), Business Environment, New Delhi: Vikas
Publishing House Private Limited
...


Glueck, William (1980), Business Policy and Strategic Management,
Auckland: McGraw-Hill International Book Company
...


Paul,

Srivastava,

Strategic

Management,

Cinicinnati:South-Western

Publishing Conmpany
...


Fred Luthans, Organisational Behaviour (8th ed
...


5
...
Robbins, Organisational Behaviour (9th ed
...


423

COURSE: MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR

COURSE CODE: MC-101
LESSON: 14

AUTHOR: SURINDER SINGH
VETTER:
DR
...


STRUCTURE:
14
...
2
14
...
4
14
...
6
14
...
8
14
...
10
14
...
12
14
...
1

INTRODUCTION
All organisations, business or non-business, face the necessity of coping with,
problems of control
...
In the planning stage, managers decide how, the resources
would be utilised to achieve organisational objectives; at the controlling stage;
managers try to visualise whether resources are utilised in the same way as
planned
...

424

14
...
Thus
control can be applied in any field such as price control, distribution control, pollution
control, etc
...
Thus control process tries to
find out deviations between planned performance and actual performance and to
suggest corrective actions wherever these are needed
...
”
Based on the definition of control, its following features can be identified:
1
...
However, on control process always the past performance is
measured because no one can measure the outcome of a happening which
has not occurred
...


2
...
As an executive process, each
manager has to perform control function in the organisation
...
The word control is also preceded by an adjective
to designate a control problem, such as, quality control, inventory control,
production control, or even administrative control
...
All other types of control may be subsumed under it
...


Control is a continuous process
...

4
...
This emphasises that,
although data collected for one purpose may differ from those with
another purpose, these data should be reconciled with one another
...


14
...
Often it is
said planning is the basis, action is the essence, delegation is the key, and
information is the guide for control
...
In fact, managing process is an integrated
system and all managerial functions are interrelated and interdependent
...
The relationship of control with major
managerial functions can be described as follows:
1
...
In fact,
these two terms are often used interchangeably in the designation of the
department, which carries production planning, scheduling, and routing
...
Control measures these behaviour and activities and
suggests measures to remove deviation, if any
...
The planning process provides
these goals
...

Thus, planning offers and affects control
...
1
...
1: Planning and controlling relationships
Thus various elements of planning provide what is intended and expected
and the means by which the goals are achieved
...
Properly
conceived plan become important elements in implementing effective
control
...


Action as the Essence: Control basically emphasises what actions can be
taken to correct the deviation that may be found between standards and
actual results
...
For this purpose,
actions and further actions are necessary; each time there may be
correction and change in the actions depending upon the information
provided by control procedure
...
This is important for organisational effectiveness
...


3
...

A manager in the organisation gets authority through delegation and red
legation
...
In the
absence of adequate authority, a manager is unlikely to take effective steps

427

for correcting the various deviations located in the process of analysis
...
Some of these factors are controllable and some are
uncontrollable
...
A manager's action is likely to be more effective if more
factors are controllable by him
...
Tile best policy of delegation is the matching of
responsibility and authority
...
He has to
control the operations, which are exercised by taking action, and action
may be taken within the limit of the authority
...

This is the basic principle for effective organisations
...


Information as the Guide: Control action is guided by adequate
information from beginning to the end
...
Every manager in the
organisation must have adequate information about his performance,
standards, and how he is contributing to the achievement of organisational
objectives
...
Control system ensures that every manager gets adequate
information
...
This can be
determined on the basis of careful analysis of the manager's functions
...
Thus, an effective control system ensures the
flow of the information that is required by an executive, nothing more or
less
...
Ideally speaking, the manager should
be supplied the information when he needs it for taking action
...
For this purpose, he must have the information at proper time
and covering the functioning of a period, which is subject to control
...
However, the information is used as a
guide and on this basis, a manager what action can be taken
...
3

IMPORTANCE OF CONTROL
Organisations try to achieve their objectives through various actions
...
However, the organisations must also monitor whether they are
achieving their objectives or-not
...
It offers help in the following directions:
1
...
Every organisation has certain objectives to
achieve which becomes the basis for control
...
Control provides this clue by finding out whether
plans are being observed and suitable progress towards the objectives is
being made, and acting, if necessary, to correct any-deviation
...


2
...
For organisational functioning, managers set certain
policies and other planning elements, which later become the basis and
reason for control
...
They also become the reason for

429

control because through these, an organisation tries that its various
individuals adhere to such framework
...

3
...
This process starts at the top level and goes to the lower
levels
...
It is quite natural that when a person is responsible
for the performance of his subordinates, he must exercise some control
over them
...
In large organisations, many individuals
contribute to the organisational objectives
...
Since each superior is responsible for the
activities of his subordinates also, the control flows throughout the
organisation, beginning at the top level, the only difference being nature
and scope of control
...


Psychological Pressure: Control process puts a psychological pressure
on the individuals for better performance
...
A person is
likely to put better performance if he is aware that his performance will be
evaluated
...
This is further complemented by the reward and
punishment based on the performance
...


5
...
Control

430

systems are designed in such a way that they focus not only on the
operating responsibility of a manager but also on his ultimate
responsibility
...
Since this follows throughout the
organisation, coordination is achieved in the organisation as a whole
...


Organisational Efficiency and Effectiveness: Proper control ensures
organisational efficiency and effectiveness
...
The organisation also
moves towards effectiveness because of control system
...
Since control focuses on
the achievement of organisational objectives, it necessarily leads to
organisational effectiveness
...


14
...

1
...
In the light of these, standards are established which are
criteria against which actual results are measured
...
Precision in the statement of these standards is
important In many areas, great precision is possible
...
Standards may be precise if they are set
in quantities - physical, such as volume of products, man-hour or
monetary, such as costs, revenues, and investment
...
After setting the
standards, it is also important to decide about the level of achievement or
performance, which will be regarded as good or satisfactory
...
Important characteristics, which should be considered while
determining any level of performance as good for some operations are: (i)
output, (ii) expense, arid (iii) resources
...
After identifying these characteristics the desired level of each
characteristic is determined
...
The level should have some amount of flexibility
also, and should be stated in terms of range - maximum and minimum
...
However, sometimes
accountability for a desired result is not so simply assigned; for example,
the decision regarding investment in inventory is affected by purchase,
rate of production and sales
...

2
...
The step involves measuring the
performance in respect of a work in terms of control standards
...
The measurement of performance against
standards should be on a future basis, so that deviations may be detected

432

in advance of their actual occurrence and avoided by appropriate actions:
Appraisal of actual or expected performance becomes an easy task, if
standards are properly determined and methods of measuring performance
which can be expressed in physical and monetary terms, such as
production units, sales volume, profits, etc
...
The performance, which is qualitative and intangible, such as
human relations, employee morale, etc
...

For such purposes, techniques like psychological tests and opinion
surveys may be applied
...
According
to Petor Drucker, it is very much desirable to have clear and common'
measurements in all key areas of business
...
In his opinion, for measuring
tangible and intangible performance, measurement must be (i) clear,
simple, and rational, (ii) relevant, (iii) direct attention and efforts, and (iv)
reliable, self-announcing, and understandable

without

complicated

interpretation or philosophical discussions
...


Comparing Actual, and Standard Performance: The third major step in
control process is the comparison of actual and standard performance
...
When adequate standards are
developed and actual performance is measured accurately, any variation
will be clearly revealed
...
Such performance is compared
with the standard one to find out whether the various segments and
individuals of the organisation are progressing in the right direction
...
However, standards may not
be achieved in all cases and the extent of variations may differ from case

433

to case
...
In fact, there cannot be any uniform practice for
determining such variations
...
For example, a very minute variation in engineering products
may be significant than a wide variation in other activities
...
For
controlling and planning purposes, ascertaining the causes of variations
along with computation of variations is important because such analysis
helps management in taking up proper control action
...
In
such a case, person concerned will take necessary corrective action
...

Measurement of performance, analysis of deviations and their causes may
be of no use unless these are communicated to the person who can take
corrective action
...
As soon as
possible, reports containing control information should be sent to the
person whose performance is being measured and controlled
...
A summary of
the control report should be given to the superior concerned because the
person on the job may either need help of his superior in improving the
performance or may need warning for his failure
...


434

4
...
An organisation is not a selfregulating system such as thermostat which operates in a state of
equilibrium put there by engineering design
...

Thus, some additional actions are required to maintain the control
...
In fact, correction of deviation
is the step in management control process, which may involve either all or
some of the managerial functions
...
the control process
...
Koontz and
O’Donnell have emphasised that the overlap of control function with the
other merely demonstrates the unity of the manager’s job
...


14
...
Every manager, therefore, should have an effective and adequate control
system to assist him in making sure that events conform to plans
...
While the
basic, principles involved in designing a control system in organisations may be
universal; the actual system in an organisation requires some specific design
...

1
...
There may be several control
techniques, which have general applicability, such as, budgeting, costing,

435

etc
...
The- managers should choose an appropriate tool for control,
which helps him in controlling actions according to plans
...


Forward Looking: Control should be forward looking
...
In fact the control system should be
such that it provides aid in planning process
...


3
...
Similarly, an ideal control system detects deviations
promptly arid informs the manager concerned to take timely actions
...


4
...

Thus, control system should provide 'information for critical point control
and control on exception
...
The control on exception requires
that a manager should take corrective action when there is exceptional
deviation
...


5
...
The standards of measurement should be
quantified as far as possible
...
they must be determinable and verifiable
...

6
...

As Geotz has remarked, a control system should report such failures and
should contain sufficient elements of flexibility to maintain managerial
control of operations despite such failures
...
In
fact, flexible control is normally achieved through flexible plans
...


Economical: Control should be economical and must be worth its costs
...
The
economy of a control system will depend a great deal on the manager’s
selecting for control only critical factors in areas important to him
...
A large-sized organisation can afford highly complicated
techniques, sophisticated tools of control and more elaborate system of
control, but a small-sized organisation cannot afford these because of the
cost factor
...


Simple: Control system must be simple and understandable so that all
managers can use it effectively
...
Effective control
requires consistency with the position, operational responsibility, ability
to understand, and needs of the individuals concerned
...


Motivating: Control system should motivate both controller and
controlled
...

Sometimes, they may even tend to deprive the people in the organisations

437

one of man's basic needs - a sense of powerful and worthwhile
accomplishment The design of control system should be such that aims at
motivating people by fulfilling their needs
...


Reflecting

Organisational

Pattern:

The

control

should

reflect

organisational pattern by focusing attention on positions in organisation
structure through which deviations are corrected
...
Thus, in every area of control, it is not
enough to know that things are going wrong unless it is known wherein
the organisation structure the deviations are occurring
...

14
...
This may be either because of the
adverse real impact of control on them or because of misperception of the impact
of control
...
It means the results of the control may not
same as anticipated by those who are exercising control
...

1
...
The basic question is: will
they not behave in desirable way if there is no control? Though opinions
may differ on this question, often it is recognized that people engage in
that behaviour, which provides them satisfaction whether, control or no
control
...
Behavioural scientists have
concluded that people try to be self-actualized but the basic problem,
which comes in the way, is provided by the organisation itself
...
For example, McGregor believes that more
people behave according to the assumptions of Theory Y as compared to
Theory X
...
The results may be against the
organisational interests
...
However, this is not true in all the cases
...

2
...
Though perception may be
that control is against the nature of people, it is further aggravated by the
fact that people perceive it to be for benefit of the organisation but against
them
...
The control in most of the cases is used as a
pressure tactic for increasing performance
...
However, increased performance is also determined by several
other factors, most important or them being how it is shared between the
organisation and its members
...
In an alternative
case, they will take certain actions to thwart the control action
...
The manager
may develop some plan for control, but there are many unplanned controls
also necessitated by the organisational requirements
...
It is this unplanned
control that has more serious repercussion and is more counter-productive
...
Thus they are controlled not because of their own
shortcomings but for the shortcomings of others
...

3
...
They will try to escape from the purview of control and may take
several actions: (i) they may try to bring behaviour which is satisfying to
them but not necessarily satisfying to the organisation; (ii) they may
engage in a behaviour which may appear to be in conformity with
organisational requirements but actually it is not; and (iii) if these are not
possible they may try to engage in behaviour as required by the
organisation
...
People can stand only to a certain
amount of pressure
...
One of the alternatives
is the formation of group if the people cannot reduce the pressure
individually
...
It gets rid of the tension generated by
the control and people feel more secure by belonging to a group, which
can counteract the pressure
...
Thus, they are likely to continue to be the members
of the group even after the control pressure is off
...
This happens more so if control pressure affects only a few
individuals
...
In such cases, they will try to camouflage the information meant
for control like providing wrong information or coming in time at the
work-place but not quite engaging in meaningful behaviour or looking

440

busy but without doing anything
...
If the individuals are notable to go for any of these
alternatives
...
This
situation may, however, not be taken as an ideal because it may be
counter-productive in the logs run; People may develop alienation to the
work and to the organisation which may have adverse affect on their
efficiency
...

14
...
In fact, control has many
positive aspects, as discussed earlier
...
From this point of view, it is imperative
that various organisational phenomena should be analysed, which affect the
control system
...


Organisational Rules and Procedures: Most of the organisations
prescribe some standing measures for providing guidelines for people's
actions in the organisations in the form of policies, rules, and procedures
...
Thus, they leave very little
scope for freedom in action
...
Many times, they may not be able to
isolate or sense the factors, which have caused a
...

Thus, there may be tendency to put the blame on those who are not really
responsible for a situation
...
Such a phenomenon is more
frustrating to the individuals in the organisation
...


Perception Formation: The people's perception is affected by a number

441

of factors, as discussed earlier
...
The perception of people towards control is
a major factor in determining the response to it
...
On the other hand, if it is based on general
distrust, fear and suspicion, there is always the people resist a possibility
that control attempt
...


Organisational Communication: The organisation has to design a
communication network for carrying the control, information both
downward and upward
...
Besides, these cannels also
serve other purposes
...
If the communication system
is not quite effective, it will affect the control system also, to that extent,
in communicating what is expected from a subordinate and also how he is
performing
...


4
...
The motivational dynamics have twofold role
in control
...
Ideal1y speaking, a control system should focus
adequately on the needs of the participants and must suit them
...
Thus, all people cannot be satisfied by the same system
...
Human beings, being gregarious, seek to remain in the
organisation
...
However, since organisation, as a collectivity of people, has
certain norms of behaviour it becomes demotivation for the people if it is
not in accordance with the people
...
The various factors discussed above suggest
that they actually decide the behavioural implications of control rather
than the individual factors alone
...
While many of the individual factors may be analysed on the lines
suggested earlier in the previous part of the text, the organisational factors
may be analysed throughout the remaining portion of this part
...
8

OVERCOMING BEHAVIOURAL PROBLEMS
Though there are many approaches for overcoming behavioural implications of
control because of the various factors involved in this basic issue, here a few,
important are mentioned in brief
...
This
problem can be overcome by structural arrangement
...
This is the
problem related with setting right organisational climate
...
This is the problem of communication in the
organisation
...
This is the problem of group dynamics
...
This is the problem of motivation
...
This is the
problem related with the organisational planning and control
...
From this point of view, the first basic issue is
the means of control
...
9

CONTROLLING AND MANAGEMENT BY EXCEPTION
One of the most important ways of tailoring controls for efficiency and
effectiveness is to make sure that they are designed to point out exception
...
This implies the use
of management by exception particularly in controlling aspect
...
From this point of view, management by
exception can be used in other management processes also though its primary
focus revolves round controlling
...
This is necessary because without
measurement of some kind, it would be impossible to identify an exception
...
(iii) Selection involves the
criteria which management will use to follow progress towards organisational
objectives
...
(v) Comparison stage makes comparison of
actual and planned performance and identifies the exceptions that require
attention and reports the variances to management
...
Thus it can be observed that management by exception is inseparable
from other management essentials in many ways
...
In other cases,
subordinate manager takes decisions
...

14
...
1 BENEFITS OR MANAGEMENT BY EXCEPTION
There are various areas where percepts of management by exception are used such as
statistical control of product quality, economic order quantities and order points for
control of inventories and supplies, break-even points for determining operating,
levels, trends in ratios of indirect to direct labour used in apportioning overhead,
attitude surveys for gauging employee morale, etc
...


Management by exception saves executives’ time because they apply
themselves on fewer problems, which are important
...


2
...
Instead of spreading
managerial attention across all sorts of problems, it is placed selectively
where and when it is needed
...


3
...
It lessens the frequency of decisions at the
higher levels of management, which can concentrate on strategic
management rather than engaging themselves in operational management
...


Management by exception makes better use of knowledge of trends,
history; and available business data
...


5
...
It helps in identification of crises
because the moment any exceptional deviation occurs, the attention of
higher-level managers is drawn
...

6
...
Thus it helps in performance appraisal
by providing more objective criteria and provides better motivation to
people in the organisation
...


It enhances the degree of communication between different segments of an
organisation
...
With overall organisational results
...

Degree of communication determines the organisational cohesiveness and
leads it to achievement of objectives
...
10 SCOPE OF CONTROL
For effective control, it is important to know what are the critical areas where
control would be exercised
...
Though controls are needed in every area where performance
and results directly and vitally affect the survival and prosperity of the
organisation, these areas need to be specifically spelled out
...

1
...
These may be written or
otherwise, policies are generally controlled through policy manuals,
which are generally prepared by top management
...


2
...
Organisation manuals
attempt at solving organisational problems and conflicts, making longrange organisational planning possible, enabling rationalisation of the
organisation structure, helping in proper designing and clarification of

446

each part of the organisation, and conducting periodic check of facts
about organisation practice
...


Control over Personnel: Generally, personnel manager or head of the
personnel department, whatever his designation may be, keeps control
over personnel in the organisation
...


4
...
The functions are carried on by personnel and industrial
engineering departments
...


5
...
Standard costs are
set in respect of different elements of costs
...
Controller's department provides information for
setting standard costs, calculating actual costs, and pointing out
differences between these two
...


Control over Methods and Manpower: Control over methods and
manpower is keep to ensure that each individual is working properly
and timely
...
The functions performed, methods adopted,
and time consumed by every individual is studied to eliminate nonessential functions, methods, and time
...


7
...
A capital budget is prepared for the business as a
whole
...
For effective control over capital expenditure, there should be a
plan to identify the realisation of benefits from capital expenditure and
to make comparison with anticipated results
...

8
...


9
...
The committee controls through studies about
market needs
...


10
...
Research and development
being a highly technical activity is also controlled indirectly
...


11
...
The tools and techniques applied are
the same
...


12
...
This department may prescribe certain

448

measures to be followed by other departments while dealing with
external parties
...


Overall Control: Control over each segment of the organisation
contributes to overall organisational control
...
This is done through
budgetary control project profit and loss account and balance sheet
...
The budget committee reviews such budget This
budget acts as an instrument for overall control
...


14
...
Thus control
can be applied in any field such as price control, distribution control,
pollution control, etc
...
12 SELF-TEST QUESTIONS
1
...
" Analyse this statement and outline the
various steps in control process
...


Explain the importance of control in a business organisation
...


In what way are planning and control related to each other? Explain clearly
the essential steps in control process
...


What are the behavioural implications of control? Discuss some methods of
overcoming the behavioural problems of control
...


Planning is the basis, delegation is the key, information is the guide, and
action is the essence of control
...


6
...
What are its benefits and

449

limitations?
7
...
"
Explain this statement by defining the areas of control
...
13 SUGGESTED READINGS
1
...


2
...


3
...
Mullins, Management and Organisational Behaviour (2nd ed
...


4
...
), Irvin/Tata McGraw Hill
...


Stephen P
...
), Prentice Hall India
...


Earnest R
...


450

COURSE: MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR
COURSE CODE: MC-101
LESSON: 15

AUTHOR: SURINDER SINGH
VETTER: PROF
...


STRUCTURE:
15
...
2
15
...
4
15
...
6
15
...
8
15
...

Environmental Impact on Behaviour
...

Behaviour and Performance
...
1

INTRODUCTION
Human behaviour is most difficult to define in absolute terms as it is the most
complex phenomenon to understand
...
These responses would reflect psychological
structure of the person and may be a result of a combination of biological and
psychological processes
...


451

Psychologist Kurt Levin has conducted considerable research into the human
behaviour and its causes
...
He called his conception of ' these
influences "the field theory" and suggested that:
B = F (P, E)
So that behaviour (B) is a function (F) of the person (P) and environment (E)
around him
...
These two factors are highly
linked with each other
...
An individual's behaviour may change due to a
change in the same environment or exposure to a different environment
...
Similarly, just the environment in itself cannot be the cause of or
explain a given behaviour
...
However, when the situation demands, the environment may
change the behaviour of an individual
...

Sometimes a sudden and unexpected turn of events or a shock can also influence
significant and permanent changes in the human behaviour
...
Thus the
environment can change the individual in his or her behaviour
...


15
...
Some
of the characteristics such as physical traits including physical height, slimness,

452

dexterity, intellectual capacity and the ability to learn and logicalize are an
inherited and have a wide impact on behavioural patterns
...
S
...
Some psychologists believe that some aspects of
human behaviour can be explained in terms of neutral activity and
neurophysiological processes
...
Here the nervous system is primarily involved in the connecting
process
...
" These responses result in behavioural activity
ranging from simple reflex action to the complex creative activity
...
This causal relationship is referred to continuously during our
daily routine impressions and conversations
...

Similarly a person whose behaviour is depressive is considered to be having a
"nervous breakdown
...


15
...
Science
has always been involved in explaining a phenomenon by looking at its causes
and then establishing a relationship between a cause and its effect
...
Accordingly, the effect of water can be explained by
its cause
...
Similarly, the behaviour scientists want to find out the
causes for why people behave in a certain way
...

The assumption that the study of any subject begins in the realm of superstition
has some validity
...
Similarly, the study and prediction of behaviour has its roots in
superstitious beliefs in supernatural phenomenon
...
Any conspicuous event,
which coincides with some part of general human behaviour, is likely to be seized
upon as a cause
...
F
...
He suggests, for example, the belief of many people that the position of
various planets at the exact time of the birth of the individual determines many
aspects of this behaviour, such as whether he is temperamental, impulsive,
trustworthy, and so on
...
The "science" of astrology is
taken very seriously in most underdeveloped countries, and even in the
technologically and scientifically advanced countries, astrologers are seriously
consulted
...
Prime Minister Indira Gandhi of India and President Ronald
Reagan of America have been known to arrange important political conferences
in consultation with astrologers
...
For example,
a quick but wrong decision can be attributed to “impulsiveness”, which is
identified by astrology
...

Then there are numerologists who propose another cause of behaviour
...
They believe and propose that the choice of a person's
name is not a coincidence but a predetermined and predestined phenomenon,
which is associated with the person's behaviour
...
Each letter of the alphabet has been assigned a
number
...

These numbers are then manipulated and an end- result of a single number is
obtained
...

Another common practice is to explain behaviour in terms, of certain physical
characteristics of a person, the most important of these characteristics being the
lines on the palm of the hand
...
The four major
lines on the palm of the hand are the Lifeline, the Heart line, the Brain line or the
line of education and intelligence and the Fate line
...
There
are special lines of number of marriages and children and all these lines are
supposed to predict not only how long the person will live or whether he will be
rich or poor but also such behaviour traits as intelligence, patience, restlessness,
trustworthiness, etc
...
It is said sometimes that the eyes betray the character
of the person
...
Whether there is a correlation
between body structure, and behaviour or not has not been scientifically

455

demonstrated
...
For
example, we cannot be sure whether fat people are jolly because, being at a
disadvantage, they develop jolly nature as a competitive edge or whether jolly
people are fat because they are free of emotional disturbances and enjoy their life
by eating, drinking and not caring too much about their physique
...
The belief is based upon the
assumption that certain behavioural characteristics are genetic in nature" and are
inherited
...
The causes
of human behaviour can be classified into two categories
...
Let us explain each of these two in
more detail
...
3
...


Physical characteristics: Some of these characteristics relate to physical
height, slim body, vision, dexterity and stamina, and have some bearing on
performance
...
Similarly, tall
and slim people are expected to dress well and behave in a sophisticated
manner, and fat people are assumed to have a jovial nature
...


Intelligence: Intelligence is primarily an inherited trait, even though
children of some very intelligent parents have turned out to be less
intelligent and vice-versa
...
Einstein was
not considered very intelligent during his earlier years
...
Intelligent people are
easy to convince if the point is right and they can be expected to be much
more stable and predictable
...


Sex: Being a male or female is genetic in nature and can be considered as
an inherited characteristic
...
Man is
expected to be tough while a woman is expected to be gentle
...
These behaviours are
developed, if at all, due to differences in treatment that boys and girls
receive in the family environment
...
As far as the administration of the management process is
concerned, Women in general do not differ from men in their operative
behaviours
...


Age: Since age is determined by the date of birth, it is a kind of inherited
characteristic
...
Psychologically, young people are expected to be
more energetic, innovative, risk taking and adventurous, while old people
are supposed to be conservative and set in their ways
...
, and hence the related behaviours
change as well
...


5
...
Highly religious people
have high moral standards and usually do not tell lies or talk ill of others
...
Additionally, the religion and culture also determine
attitudes towards work and towards financial incentives
...
3
...
These characteristics are
acquired by learning where learning is defined as a "relatively permanent change
in behaviour resulting from interactions with the environment
...
They are the result of the parental values and
expectations and the values and norms of our cultures and sub-cultures
...
If the parents are always
fighting, if the father is always drunk or if the mother resents the child, it is most
likely that the child will grow up lacking the closeness of love and respect
...
The physical environment itself has a profound effect on the
individual behaviour
...
Similarly, students who have studied
in religious schools and convents may have learned different values about truth
and human decency
...
Hence these will be discussed in more detail in the
following chapters, but a brief familiarity with this factor is necessary here
...


Perception: Perception is the process by which information enters our
minds and is interpreted in order to give some sensible meaning to the
world around us
...
Sayings and proverbs like "things are
not what they seem" or "all that glitters are not gold," reflect a sense of
perception
...
Perception plays an important part in human
as well as organizational behaviour
...
Similarly, we lose a lot
of good friends due to our changed perceptions about them
...


Attitude: Attitude is a perception with a frame of reference
...
In other words, it is more or less a stable
tendency to feel, think, perceive and act in a certain manner towards an
object or a situation
...

Attitude has three elements in it that lead to measurable outcomes
...
Feelings and thoughts can be
measured by simply asking individuals about their feelings and opinions
...
Measuring and
integrating these three elements can establish a person’s attitude towards a
given situation
...
Organizationally speaking, an
employee’s negative attitude about work may be reflected by sub-standard
work performance; excessive absenteeism; excessive complaining about
work environment or disobedience to rules or authority
...

Kelman has identified three processes that act as instruments of change
...
The second process is that of
identification with the person who is affecting the change and is acting as
a change agent
...
In

459

marriage, for example, both the husband and the wife make a lot of
sacrifices and change their behaviours to please each other
...
This means that the new attitude is integrated with the other
attitudes and becomes a part of the person's total personality
...

3
...

Personality is a set of traits and characteristics, habit patterns and
conditioned responses to certain stimuli that formulate the impression an
individual makes upon others
...
Many psychologists contend that
personality traits develop in the early childhood years and very; few
personality changes can be made after the childhood years
...
are learned
...
For example, Tedeschi and
Lindskold propose that people who are open minded seem to work out
better in bargaining agreements than people who are narrow minded
...


4
...
They generally identify a person's moral structure on
which the concept of good or bad and right or wrong is based
...
Values and
behaviour are highly correlated
...
Value
system, according to Prof
...
These reactions and responses direct
individuals in a society to selectively attend to some goals and to
subordinate other goals
...

This value system develops from the cultural environment in which the
individual is brought up, the concept of nuclear family, religious
influences on his code of conduct, respect for traditional concepts of ethics
and morality, and degree of faith in the socially inherited religious
elements and beliefs
...
The value system also determines the form
of social organization in terms of family, groups or community and the
role and status
...
This will
also determine the 'decision maker in the family or the opinion leader in
the community or the leader in the organizations
...
Values determine what is right
and what is wrong where right or wrong is interpreted in terms of
perceived values of the decision maker
...
For example, in order to open a profitable
manufacturing plant in a developing country, it may be necessary to bribe
a government official for granting of the license
...


461

However, the value system of the management may be such as to consider
bribery unethical and hence the value system would overpower rationality
...
It is now
generally accepted that:
A manager's value system influences his perception of problems
and his understanding of the various situations, which he faces
from day-to-day
...

Each manager largely functions within certain ethical and moral
parameters and the value systems play an important role in
determining the boundaries of such parameters
...
4 ENVIRONMENTAL IMPACT ON BEHAVIOUR
While behaviour is a reaction to situations and the type of reaction is based upon
some inherited and some learned behavioural characteristics, the environment is
an important catalyst in determining such type of reactions
...
However, if the environment is hostile to the values and skills of the
worker, then negative reactions take place
...
Highly skilled
people have changed jobs because the environment in the job situations was not
conducive to their enhancement
...
The
environment surrounding the work place has two elements
...
The physical environment at a work place is the arrangement of people
and things so that this setting has a positive influence on people
...


462

The open communication between the manager and the subordinates has a
positive effect on behaviour
...
Recent studies in "open wall" office concept showed that some
employees were more productive and satisfied with their work place in open
space when their jobs did not require private office space
...
These social influences are affected by family
environment, friends, associates, peers at work, and groups to which an individual
belongs
...

Norms are unwritten rules and informal expectations about how people behave in
certain social situations
...
Any person cutting in the line will be
ridiculed and perhaps not allowed to do so
...
"When in
Rome, do as the Romans do" is perhaps intended to respect the norms of a certain
social group, which you come in contact with
...
Both rules and laws are strictly enforced; laws by the legal system and
rules by the social system
...
For
example; stealing property of others is illegal and punishable by law and applies
to all people within that system
...
These may be the rules of a family, a group, a club or an
organization
...
m
...
m
...
Airlines
have certain rules about wearing safety belt and smoking
...
Observing the norms, rules and
laws voluntarily makes for an orderly society and allows for predictability of
behaviours
...
5 BEHAVIOUR AS AN INPUT-OUTPUT SYSTEM

463

We have discussed earlier that human behaviour is a function of the person and
his environment where the "person" is primarily shaped by general biological
characteristics, and environment, which generates external stimuli
...
The external stimulus is most important since it excites
the internal processes to activate and the behaviour takes place, that an external
input is necessary to elicit behavioural responses
...
Before behaviour is exhibited, there is mutual interaction
between the stimulus and the organism and except for reflex actions, the organism
"decides" as to the type of behaviour outcome
...

Another input-output model has been proposed by Kolasa, which describes
human behaviour in terms of a systems model, which may describe the process in
a more objective manner
...

Here the stimuli forms the input and is transformed into information by various
sensory organs
...
This
organization takes place through the perceptual processes that are formed through
experience in the social setting, and is a function of the personality traits as far as
the values and the utility of information is concerned
...
This step is known as the decision-making and

464

action taking and becomes the output of the system and this output reflects the
behaviour of the person
...
6 BEHAVIOUR AND PERFORMANCE
According to Schermerhorn, Hunt and Osborn performance of is a reflection of
characteristics
...

The capacity to perform is an outcome of such competency characteristics as
ability and aptitude, which can be considered as, inherited characteristics of
behaviour
...
Accordingly, job performance is facilitated when ability
matches the requirements
...
To achieve high levels of performance, the individuals must
show willingness to perform and put in adequate work effort
...
This motivation, which is a behavioural concept,
defines the forces within the individual that account for the direction and level of
effort relating to a given task
...

Organizational support and resources affect human behaviour in a significant way
and the performance is influenced by this behaviour
...
Inadequate support systems such as rush jobs,
unavailability of best tools to perform work, unclear guidance and instructions are
all influences in a negative way on behaviour and performance
...

All the above constraints intrude on work performance
...
7 SUMMARY
Human behaviour, being the most complex phenomenon, is most difficult to
assess in quantifiable terms
...
There are two factors that
have a direct bearing on human behaviour
...
Second is the environment to which the person is exposed and
the environmental forces that are constantly impacting his personality and
behaviour
...

Behavioural characteristics are considered to be both inherited and learned
...
Learned characteristics include a person's perception about
his surrounding environment, his attitude towards life itself and towards other
people, his personality and his ethical values
...
The external environment
is known to have a considerable effect on a person's behaviour as a response to
particular stimuli in the external environment
...
For example, some of the coolest people have been known to
lose temper under certain hostile situations
...
This concept assumes that behaviour is not simply a random
phenomenon but is goal directed so that a measurable correlation exists between
the goals and behaviour
...
This means that
behaviour is related to performance and productivity
...
These are an individual's "capacity" to perform, his
"willingness" to perform and the extent and nature of the organizational support
...


15
...


Behaviour is considered to be a function of the person and his
environment
...


What do we mean by "biological foundations of behaviour?" Is behaviour
really founded on "biological" manipulations? Explain your reasoning
...


Describe some of the inherited characteristics of behaviour
...


4
...


Describe some of the learned characteristics of behaviour
...


Define the concept of values and ethics
...
9 SUGGESTED READINGS
1
...


2
...


3
...
Mullins, Management and Organisational Behaviour (2nd ed
...


4
...
), Irvin/Tata McGraw Hill
...


Stephen P
...
), Prentice Hall
India
...


Earnest R
...


468

SUBJECT: Management Concepts and Organization Behavior
COURSE CODE: MC 101

Author: Ms
...
B
...
Punia

PERSONALITY
Objective:

The main objective of this lesson is to make the students learn about the
word personality and different aspects related to it
...
1

Introduction

16
...
3

Approaches/Theories of Personality

16
...
5

Personality Assessment Tests

16
...
7

Self Assessment Exercise

16
...
1 INTRODUCTION
Personality is a concept that we use in our routine working while dealing with
people
...
We generally say that a person has good, bad, arrogant or aggressive
personality
...
The term personality has
been derived from the Latin word 'per sonare' which means to speak through
...
Long ago when plays were performed the numbers of actors used to be
less than the number of roles
...
Perhaps due to this
reason people relate personality to physical and outward appearance
...
Thus in simple sense, personality is sum total of ways in
which an individual reacts and interacts with others
...

Personality is a word or characteristics, which is of great importance now a day in
every field of life
...
Every entrance test, that may be a
professional course, job or future studies have logical, relational and constructive
personality assessment questions because they form the personality of an
individual
...
According to Gordon Allport,
"Personality is a dynamic organization within the individual of those
psychophysical systems that determine his unique adjustments to his
environment"
...
Personality is a
process of change and it is related with psychological growth and development of
an individual
...
B
...


16
...
These determinants of personality can be classified into
following categories:
1
...
The study of biological contribution to personality can be divided into:
a) Heredity: It is transmission of the qualities from ancestor to descendant through a
mechanism lying primarily in the chromosomes of the germ cells
...
Heredity refers to those factors like physical stature,
facial attractiveness, sex, temperament, muscle composition, energy level and

470

biological rhythms etc
...
At conception, each
parent contributes chromosomes containing thousands of genes, which seems to be
transmitter of traits in the child
...
Thus, heredity is generally more important in determining a
person's temperament than his values and beliefs
...
The structure of brain
determines personality
...
Different people will give value to different things
...
However, no conclusive proof is
available so far about the nature of relationship between brain and personality
...
While defining personality some individuals give
higher weights to physical features of an individual
...
The normal belief is that the healthy person is lazy and the thin is angry
determines the individual personality
...


2
...
The infant acquires those behaviour patterns that depend upon the
socio-economic level of the family, family size, birth-order, race, religion, parent
education level, geographic location etc
...
The family and social factors are
categorize as below:
a) Home environment: It is a critical factor in personality development
...

And if everybody in the family is busy in their life and have no concern for each other
then the infant will have rigid personality
...

b) Family Members: Parents and other family members have strong influence on
personality development of the child
...
We generally see that small
children behave like their parents
...

DETERMINANTS OF PERSONALITY

1) Biological Factors
a) Heredity
b) Brain
c) Physical Features
2) Family and Social Factors
a) Home Environment
b) Family Members
c) Social Groups
3) Cultural Factors
4) Situational Factors
5) Other Factors
a) Temperament
b) Interest
c) Character
c) Social Group: In addition to home environment and family members, there are other
influences from the social placement of the family
...
The internal and
external work environment continues to influence the people personalities, perception
and behaviour throughout his life
...
Socialization is a process by
which an infant acquires from the wide range of behavioral potentialities that are
open to him at birth, those behavior patterns that are customary and acceptable to
family and social groups
...
Identification process occurs when a person tries to identify himself with
some person whom he feels ideal in the family
...


472

3
...
The culture
within which a person is brought up is very important determinant of behaviour of a
person
...
It
determines what a person is and what a person will learn
...
Each culture trains its members to behave in the ways that are
acceptable to the group
...

As skilled have different behaviour pattern than the unskilled workers do
...
Situational Factors: An individual personality is generally stable and consistent; it
may change in different situations
...
Suppose there is a worker who is very fond of doing
work
...
Due
to this changed situation, his personality composition also changes
...


5
...
It is distributed
according to normal distribution
...
Top executives in any
organization do not have common interest
...

c) Character: It means honesty
...
It
is resistance to stealing and cheating others
...
For example, if the family of an individual is starving, there is a great

473

probability that one will steal
...

d) Schema: It is an individual’s belief, frame of reference, perception and attitude which
the individual possesses towards the management, job, working condition around
him, pay scale, fringe benefits, compensation mechanism, development towards
religion, government and satisfaction gained from environment
...

e) Motives: These are the inner drivers of an individual
...
Motives help in determining one’s behavior towards a goal
...
At
each stage of the life every individual learns from the environment he lives in and the
persons he interacts with
...
3 APPROACHES/THEORIES OF PERSONALITY
1
...
Freud is of the belief that the personality as a reflection of
behaviour has been primarily based on the unconscious nature of personality
...

Such as:
a) ID: It is the unconscious part of the human personality
...
Example- urges to have food, water etc
...
The principal of
working for ID is ‘Pleasure’
...

b) Ego: Ego manages ID through the realities of the external environment
...
As Ego is conscious and logical part of human personality, ID is guided and
governed by Ego
...
ID demands
immediate pleasure at whatever cost, Ego controls it so that the pleasures are granted
at appropriate time and in acceptable manner
...
It makes people work to live

474

and adjusting to the realities of life
...
It takes into account what is possible in this world
...
e
...
Thus to keep ID under control, Ego is
supported by Super Ego
...
The conscience creates standards of what is right or wrong
...
However, an individual is not
aware of presence and working of superego in oneself
...
Superego
keeps ego to judge what is right or wrong
...
He passes through a shop with food
displayed in the window and thus the urge of hunger arises more strongly
...
Then, Super Ego warns boy that there is something
wrong as stealing is considered blundered in society and it is punishable
...
Trait Theory: It visualizes personality as a reflection of certain traits of the individual
...
Trait is a distinctive and personal form
of behaviour
...
On the basis of trait theory,
people can be described as aggressive, loyal, pleasant, flexible, humorous,
sentimental, impulsive, cool and so on
...
The trait of an individual or ‘Personal
disposition is studied at three levels:
a) Cardinal Trait Level: ALLPORT defined cardinal traits as those pervasive traits
which are so powerful/dominant that rarely all the individual action can be traced
back to them
...
This level describes a trait so
broad and so deep in its impact that it overshadows the influence of other traits for the
same individual
...
These are unique and limited in
number
...

c) Secondary Trait level: These are least generalized traits of a person
...
These peripheral traits are specialized to the
situation
...
He put these
traits in the following categories:
a) Surface Traits: Wise-foolish, sociable-seclusive, honest-dishonest etc
...


3
...
Type approach discuss the personality in the following ways:
a) Type on the basis of body build:
i
...
They seek comfort, eat
too much, jovial, affectionate and liked by all
...
They prefer
to be led than to lead
...
Ectomorph: They are thin, long and poorly developed physically
...
They
prefer not to attract attention to him and tend to be distrustful of others
...

iii
...
They seeks lot of
muscular activity, tends to be highly aggressive and self-assertive
...

b) Type on the basis of nature:
i
...
Introvert can be
good scientists and researchers
...
Extrovert: People having following characteristics are extrovert
...
Extroverts propagate more knowledge and ideas to society
...

iii
...


c) Type A and Type B:
i
...
Type
A are on fast track of life and are more successful in reaching top slot
...
Managers in this category are hard drivers, detailed
oriented people with high performance standards
...
If they have to complete a task within
given deadline, they feel pressurized
...

ii
...
They are relaxed, sociable and have a balanced outlook on life
...
In order to
meet a deadline they do not feel pressurized
...


4
...
It is also termed as organismic
or field theories, which emphasize on totality and inter relatedness of all behaviour
...
These area)

Self-Image: Every person has certain beliefs about who or what he is
...
Thus self-image is the
way one sees himself
...
It
denotes the way one would like to be
...
It is the perception of a person about how others
perceive his qualities and characteristics
...
This interaction
directs how others see him as an individual
...
An individual self-image is confirmed when
other persons response to him, indicate their beliefs about who and what he
corresponds with
...
Thus a
balance should be maintained between real self and self-image
...
It

gives a sense of meaningfulness and consistency
...


5
...
It emphasizes on conscious needs and wants of an individual
...

It looks at personality as some total of all that a person has learned from outside

478

stimuli
...
For
example- if an individual receives bad behaviour from society, the frustration causes
and reinforces aggression as a personality trait
...
Learning can also
occur from observation; we watch the behaviour of other people, draw observation
about them and express our own behaviour
...
4

PERSONALITY

DIMENSIONS/ATTRIBUTES

INFLUENCING

BEHAVIOUR
Personality is a set of relatively stable characteristics or dimensions of people that
account for consistency in their behavior in various situations
...
In any
organization every individual’s personality reveals how he work with superiors,
subordinates and other people, how an individual adjust himself to a particular
situation and how he reacts to the changes occurring in the existing jobs or on the
new job
...

2
...

4
...

6
...

8
...
Self-Concept and Self-Esteem: Self-Concept is the way individuals define themselves
as so who they are and drive their sense of identity
...
It is a measure of selfconfidence and respect for one’s abilities and motivation
...

People with high self esteem are very friendly, affectionate, find it easy to form
interpersonal attachment and find good in other people
...
They are high performers
...
They contribute to poor performance, which in turn leads
to low self-esteem
...
Authoritarianism: A closely related term to authoritarian is “dogmatism” which refers
to the rigidity of a person’s beliefs
...
Authoritarian people believe in obedience and respect for authority
...
The individual with high authoritarian personality is intellectually rigid,
judgmental of others, deferential to those above and exploitative of those below,
distrustful and resistant to change
...
Where
the job demands sensitivity to feelings of others, tact and ability to adapt the complex
and changing situations, the persons with high-authoritarian personality would be
negatively related to performance
...
Need Patterns: Every individual have needs for achievement, affiliation, autonomy
and dominance at work
...

b) High need for affiliation work with great co-operation with others
...

d) High need for dominance is effective in an environment where they can enforce their
legitimate authority
...
Bureaucratic Personality: This kind of persons has respect for rules and regulations
...
Bureaucratic persons are not innovative; even not ready to take risk
and they keep themselves at ease while following other directions
...
In the routine
and repetitive work they are better supervisors
...
Machiavellianism: It refers to manipulation of others as a primary way of achieving
one’s goals and gaining and keeping control of others
...
People with high score on
mach scale have high self-confidence and self esteem
...
They have no hesitation in using others
or taking advantage of others in order to serve their own goals, willing to twist and
turn facts to influence others and try to gain control of people, event and situation by
manipulating the system to their advantage
...
They are successful in
exploiting structured situations and vulnerable people
...
Tolerance for ambiguity: Because of rapid changes an individual have to work in an
environment which is full of uncertainty
...
People or managers with high tolerance level of ambiguity can work
effectively without much stress
...


7
...
In other words, the degree to which
people believe that they are masters of their own fate
The individual with ‘internal locus of control’ believes that he is master of his
own destiny
...
The person with this kind of
personality seeks opportunities for advancement and relies more on their ability and
judgement at work
...
They use their own wisdom and energy while working on any
projects
...
They feel that the
outside forces are affecting the events in his life and the individual is at the mercy of
destiny, chance or other people
...


8
...
It shows
how long a manager take to make a decision and how much information he requires
before taking a decision
...
The propensity to assume risk is dependent upon the nature of job
...
As a general saying is higher the
risk, higher the return
...
5 PERSONALITY ASSESSMENT TESTS
1
...
A person is
interviewed and observed carefully to judge his capabilities and capacities
...

The judgement and critical remarks about the case studies and autobiographies help in
judging the personality of a person
...
Objective Tests: It includes questionnaire, K
...
Aggregation etc
...


482

3
...
These tests play a major role in analyzing
the personality of a person
...
And the
person is judged by his/her reaction to the picture and words
...


16
...
This uniqueness and consistency form the aspects of personality
...
There are many factors like biological
characteristics, family and social groups, cultural and social factor, which
contributes towards formation of personality
...
There are many theories that are developed
in predicting the behaviour of an individual on the basis of various attributes
...


16
...
Define personality
...
Briefly describe the various theories of personality
...
Give a brief account of the factors contributing personality
...
What are the various dimensions of personality that are related with interpersonal
and organizational behaviour?

16
...
Louis A
...

2
...
Chandan, Organizational Behaviour, Vikas Publishing House
...
Fred Luthans, Organizational Behaviour, McGraw-Hill
...
Stephens P
...

5
...
Mullins,” Management and Organizational Behaviour”, Pitman
...
D
...
Levinson, ”A Conception of Adult Development”, American Psychologist,
vol
...


484

COURSE: MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR

COURSE CODE: MC-101

AUTHOR: SURINDER

PERCEPTION
OBJECTIVE:

The motive of the lesson is to highlight the meaning, components
and factors influencing the perception
...
1
17
...
3
17
...
5
17
...
7
17
...
1 INTRODUCTION
The psychological processes that allow an individual to adjust his behaviour are
called perception
...
The behaviour and performance provides satisfaction to the
employees who get stimulated to work more and develop his personality and work
quality
...
2 DEFINITION OF PERCEPTION
Perception may be defined as “a cognitive process by which people attend to
incoming stimuli, organise and interpret such stimuli into behaviour”
...
The
environment is a stimulus to influence behaviour, because the stimuli are
attended, organised and interpreted to arrive at certain forms of behaviour
...
e
...
Individuals do not accept the information or stimuli unless they are
evaluated and interpreted by the mental processing system
...
These processes are known as perpetual
process
...
It helps them understand the functions and achieve satisfaction
...
3 COMPONENTS OF PERCEPTION
Perception is a process of sensory organs
...
the eyes, ears,
nose, tongue and skin
...
The perception
starts with the awareness of these stimuli
...
These
messages are then translated into action and behaviour
...
3
...
Knowledge and behaviour depend on senses and their
stimulation
...
Intuitions and hunches are known as the sixth sense
...
The stimuli may be in the
form of objects or physical commodities
...
The mind and soul are
the victims of these stimuli occurring in the surroundings of the people
...
The physiological and psychological functions are the result of
these stimuli
...
The physical work environment, sociocultural environment and other factors have certain stimuli to influence the
employee's perception
...

17
...
2 Attention: People selectively attend to stimuli
...
The
stimuli that are paid attention depend purely on the people's selection
capacity and the intensity of stimuli
...
announcement of bonus, appeal for increasing
productivity, training and motivation
...

If the attention of the employees is not drawn, the organisation cannot
expect proper behaviour from the employees
...

During the attention process, sensory and neural mechanisms are affected
and the message receiver becomes involved in understanding the stimuli
...

17
...
3 Recognition: After paying attention to the stimuli, the employees try to
recognise whether the stimuli are worth realising
...
Perception is a two-phase activity, i
...
receiving stimuli and
translating the stimuli into action
...
The
recognition process is dependent on mental acceptability
...
He recognises the stimuli, i
...
the life of the child is in danger
...

If he does not pay attention to the stimuli, he cannot recognise the danger
...

17
...
4 Translation: The stimuli are evaluated before being converted into action
or behaviour
...
In the above example,
the car driver after recognising the stimuli uses the clutch and brake to
stop the car
...
The perception process is purely mental before it is
converted into action
...
The management in

488

an organisation has to consider the various processes of translating the
message into action
...
For example, the announcement of bonus should be
recognised as a stimulus for increasing production
...
In other words, they should be
motivated by the management to increase productivity
...
They influence perception
...

17
...
5 Behaviour: Behaviour is the outcome of the cognitive process
...
e
...
It is an overt and covert
response
...
The psychological feedback that may influence the perception
of an employee may be superior behaviour, his eye movement, raising of
an eyebrow, the tone of voice, etc
...
The behavioural termination of perception may be overt or
covert
...
The perception behaviour
is the result of the cognitive process of the stimulus, which may be a

489

message, or an action situation of management function
...

17
...
6 Performance: Proper behaviour leads to higher performance
...

A performance-reward relationship is established to motivate people
...
3
...
The level of
satisfaction is calculated with the difference in performance and
expectation
...
On the other hand, if performance is less than the expectation,
people become frustrated and this requires a more appealing form of
stimulus for developing proper employee work behaviour and high
performance
...
Individuals observe several stimuli
everyday
...
Employees confronted with stimuli select only a few
stimuli of their choice and leave other stimuli unattended and
unrecognised
...


490

17
...
The factors influencing perceptions are the perceiver's
characteristics, object and situations
...

17
...
1 PERCEIVER'S CHARACTERISTICS
Perception depends on how an individual views the objects and situations
...
The perception is
not actual reality, but it is the viewing of the reality, which differs from person to
person according to their respective characteristics
...
The characteristics of employees, viz
...

(i)

Attitude: The attitude and aptitude of employees influence perception
formation
...
In case of negative
attitudes, the employees suspect the management's approach
...
They behave

491

positively towards the management of an organisation
...
Helpful motives of the
employees will always assist the management
...
Employees having low motives will not work sincerely
...
An
indecisive manager perceives his supervisors differently
...
People who are dubious are
prone to see others as dubious persons
...


(iii)

Interest: The interest of individuals draws more attention and recognition
to stimuli
...
If employees lack interest, behaviour pattern will be
less effective, and the perception will be weak
...
Since individual interests vary from
person to person, the perception is also different
...


(iv)

Habits: Habits die-hard and therefore individuals perceive objects,
situations and conditions differently according to their habits
...
Others are slow in perceiving a stimulus
...
They do not perceive
the object correctly
...
Thus,
the habits of people have different perception levels
...
A young employee takes time to understand the object and
situation
...
However, in contradictory situations, it is difficult to correct
aged persons, whereas the young are easily moulded towards achieving
the objectives of the organisation
...
People see what they
expect to see
...
They are unable to modify their
behaviour
...
The real stimuli are not
properly perceived if expectations exist there on
...


(vii)

Learning: Learning levels of employees have a great impact on their
perceptions
...

Educated persons have higher perceptions than the less educated persons
...


(viii) Personality: Personality has different levels of perception
...
Young people perceive objects and
situations in the original form
...
Perception influences learning, which is a
developing factor of personality
...
Persons can view objects and situations as per
their personality levels
...

influence perception
...
4
...
The external points related to objects and situations have great
influence on the perception process
...

(i)

Size: The size of the object or stimulus has a greater impact on the
perception process because the size influences attention and recognition in
a more effective manner
...
The
engineering department pays more attention to big and, attractive
machines; Big-sized objects have a natural attraction and get more
attention
...
A strong voiced manager has more impact on
supervisors and employees
...
Bright letters and strong
appeal have more impact on people than normal letters and low appeal
...
The
intensity varies as per the needs of the organisation
...

(iii)

Contrast: Contrasting objects have more impact on behaviour
...

Machines making noises are hardly noticed, but a machine coming to a
halt is immediately noticed, because of contrast stimuli
...
The purpose of contrast stimuli is to attract more
attention and recognition
...


(iv)

Repetition: Repeated stimuli have more impact on performances than a
single statement
...

When stimuli are waning, repetition generates fresh attention and
recognition
...


(v)

Motion: People pay more attention to the moving objects than to
stationary objects
...
Workers are
more attentive towards working machines than stationary machines
...

(vi)

Familiarity: Employees would like to hear and see those programmes
with which they are familiar
...
Examples,
which are known and easily understood, are used for motivating
employees
...
New ideas and model
preaching will draw the attention of the perceiver
...
Novel objects and situations are recognised clearly by the
perceivers
...
A
favourable work environment develops a positive attitude and work
culture because the perception process is easily channelised and rightly
directed
...

Work relations also have some impact on perception forces
...
The physical and internal attributes of objects
are influencing factors of perception
...


17
...
3 INTERNAL FACTORS

496

Internal factors are within the personal control of the perceivers
...
They are based on the individual’s psychological
setup, economic and social background, learning, personality and motivation
...
People perceive what they like to perceive because of their
attitudinal and mental approaches
...
People working with employees do help in the
foundation of the psychological setup
...
For example, giving a higher bonus is a state
of satisfaction to employees, but becomes a problem for managers
...
The employee's level of
understanding depends upon their economic and social backgrounds
...

However, developed employees are prone to decision-oriented functions
...
The
problems can be resolved only through proper perception processes
...
Highly
educated persons can easily and rightly perceive the management's
problem
...
On the contrary, less

497

educated employees are less concerned about the management
...

People perceive as per their levels of learning
...
The learning of managers and
workers is a twin requirement
...
The age, sex, race, dress, facial
expressions and body postures of both the persons have a direct influence
on the perception process
...

Otherwise, the perception process will be disturbed
...
Physical and mental
characteristics, work pattern and age similarities affect the perception
process
...
Motivated people have the right perceptions about the
stimuli, whereas the loco-profiled workers are doubtful about the message
given by the management for the development
...

Motivational theories have revealed the perception processes of particular
categories of employees
...
The mental state of motivational
desire influences the perception process
...
Internal factors, i
...

factors related to employees and managers, have different degrees of
impact on the attention and recognition process while being translated into
behaviour, which results in performance
...
4
...

The perceptual structure, perceptual grouping, constancy, context, defence,
workplace and process have been recognised as important factors influencing the
perceptual process
...
The
departmentalisation, decentralisation, delegation of authority and other
structural frameworks have important bearings in the mind of employees
...
Similarly, too much centralisation gives
rise to the feeling of suspicion in the minds of employees
...
Work relations and the decisionmaking authority provide an important understanding of organisational
perception
...


(ii)

Perceptual grouping: The manager generally groups all the stimuli

499

together to influence the employees
...
The closure doctrine of
grouping is based on the Gestalt Principle of psychology wherein the
individuals perceive the whole object although the whole unit does not
exist
...
The manager tries to close the disagreement and
maintains uniformity in agreement for mechanisation
...
The continuity principle emphasises that the
stimuli should continue to make an impact on the perceiver
...
The continuity
principle is different from the closure principle as missing stimuli are
applied in the latter case, whereas a continuous link is maintained in the
former case
...
The obvious and continuous flow of
stimuli may produce the desired behaviour
...

The similarity has its own impact on the employees
...
Similarity in age, sex, education and other
characteristics have a direct impact on the employee's perception
...


500

Nearness of stimuli will be perceived as wholesome for the group
...
For example, all
the employees in one-cadre will be considered as one group which is
stimulated by the proximity of stimuli
...
They are
motivated on the basis of proximity stimuli
...
The stability and unchangeability of objects help in
the constant perception process of people
...
The
size, shape, place and colour of objects and situation are easily observed if
they are constant
...


(iv)

Perceptual context: The context of the stimuli with reference to objects
and situations has a meaningful impact on the perceiver
...
Welfare is paid more attention
...


(v)

Perceptual defence: The defensive role of the management is well
recognised by the employees
...
Such functions,

501

which provide defence to conflicting views, are given more importance by
employees
...
On the contrary, dissatisfied workers
criticise their own work and workplace
...
They only perceive conflicts as casual and to be
expected, without any significant features
...
They react to warning signs and perceive the situation
differently
...

(vi)

Perceptual workplace: The perceptual process is affected by the
workplace too
...
Consequently, the perceptual process is different for different
employees
...
All employees perceive
the same situation and object differently because of the varied nature of
their workplace
...
Employees may perceive a low output
with pleasure to influence their supervisor
...
Some may perceive a
self-fulfilling prophecy by the management, when they have too high or
too low expectation from employees
...
Managers develop subjective
attitudes many times about the performance and process
...
During the work process, some employees are troublemakers
and some are loyal
...

17
...
5 SOCIAL FACTORS
Social conditions have much influence on the perception process
...
They are perceived differently
in different situations
...
Attributes of objects, the subject,
the situations and the perceiver have become so important that a separate theory
known as attribution theory has been developed under the perception theory
...
The interaction between the manager and his
subordinates is considered under social factors, which include the stereotyping
effect, the halo effect, contrast effect and projection
...
Stereotype judgement is
based on an ideal situation or the type of impression formed about the
group
...
If an employee is found well behaved,
the whole group of employees is considered to be good
...
It is an inductive
method wherein conclusions are aggregated from individual performance;
that is, it accumulates particular cases to arrive at general conclusions
...
For example, assume that the management
has previously found that sportsmen and athletes have been very
successful workers in the factory
...
In future selection process, the
management may appoint such sportsmen and athletes without undergoing
many selection procedures
...
The generalisation may prove disastrous if
it is relied on heavily without proper scrutiny and examination of
individual characteristics
...
The
stereotyping effects under social perception consider the attributes, traits
and other qualities of a member of a social organisation
...

However, there may be perceptual errors, because the generalised
attributes and qualities may not be found in all the cases
...

Favourable and unfavourable traits are always calculated and evaluated to

504

find their impact on the behaviour or decision taken
...
The
individual difference in the group is recorded to evaluate the perceptual
errors in arriving at stereotyping effects
...
One
can conclude that an organisation has a democratic manager
...
If a manager belongs to the said
democratic organisation, one can believe that he will also have the same
characteristics
...
The beliefs or
stereotyping effects are modified from time to time to arrive at correct
perception behaviour and decisions
...
For example, if an employee is considered good
on one account, he is treated as good on all accounts
...
The halo effect is related to the
personality assessment based only on a single trait
...
The halo effect arises on account of the nuclear
expression of traits, which are not frequently encountered and have moral
implications
...
If an employee possesses all desirable qualities
except that of loyalty to the manager, he is not put in the same perceptual
setup as the personally loyal employees, having no profession attributes
and work devotion
...
Error or perceptual
error should be avoided in the perception process
...

(iii)

Contrast effect: Like stereotyping and halo effect, the contrast effect is
another factor of social perception, i
...
perception in a group
...
Whatever the manager emphasises, the
employees may take different views of the stimulus
...

Employees may view this stimulus or message as the manager being
bothered about his promotion
...
The
contrast effect is an error of social perception
...
The contrast effect
occurs because of doubtful relations, swift conclusions, unfavourable
attitudes and so on
...
People have the habit of
projection although it may not be correct
...
Personal attributes, objects and
situations are to be considered before projection
...
If it is properly evaluated and placed, the

506

projection may give the correct perception
...
Contrary to this,
many employees may not be trustworthy
...
Thus, the
projection process differs from person to person, place to place and object
to object, and this has an ultimate impact on the perception process
...
5 PERCEPTION MODELS
Perception models are related to the perception objectives and perceptual setup to
achieve objectives
...
Each has its respective advantages
...
5
...
Of these, the optimising
model, the individual decision-making model and the ethical decision-making
model are some of the important perception models based on the decision-making
process
...
Rationality assumes that people prefer
consistency and value maximising
...
They are goal-oriented and use the steps of optimising to select
the best alternative
...
They are knowledgeable about the need for a decision, can

507

identify the decision criteria, assign proper weights and values, develop
alternatives, evaluate the alternatives and select the best alternative
...

The criteria dividing the steps are weighed and evaluated to find various
alternative solutions to a problem
...
Secondly, the alternatives are evaluated as per the
weighted criteria
...
The
alternative having the maximum weights is rated as the best and given the
first rank
...

(ii)

Individual decision-making model: Individuals think before they act in
their own manner and method
...
They consider their decision the best because the
decision is taken as per their individual outlook
...
However, there are people who do not bother about the decision
process, but take a swift decision based on their personal whims and
discretion
...
Neatness, promptness, enthusiasm, attitudes, preferences and
education have a great influence on the individual's decision-making
process
...


508

Utilitarianism refers to the greatest good for the greatest number of people
...
Consistency with
the existing rules and regulations are important for making ethical
decisions
...
Equitable distributions of benefits and costs are the basic point of
justice
...
Ethical decisions
have a moral support and long lasting features
...
e
...
The needs and attitudes
are developed as per the ethics and culture of society
...
5
...

When people face complex problems, they require at least those solutions, which
may satisfy them to a minimum level
...
All the problems are analysed, their
complexities are understood and solutions are put forward for conspicuous
choices
...

Instead, only those alternatives are evaluated which are satisfactory and sufficient
...
If satisfying attributes exist in alternatives, the further search of good
enough attributes continues till the best alternative is arrived at
...
Only those alternatives are
considered which are commonly known and are within the limits of the decision
makers
...

(i)

Implicit Favourite Model: Like the satisfying model, the implicit
favourite model solves complex problems by simplifying the process
...
In this case,
the decision maker is neither rational nor objective
...
The implicit favourite is the right choice
...
In the implicit
favourite model, the problem is first identified
...

Evaluation criteria to judge each and every alternative as the favourite are
developed
...
one or two
...


(ii)

Intuitive Model: The implicit favourite model gives birth to the intuitive
model, which believes in one's own decision as favourable
...
Intuition is
considered the best criterion to select an alternative as the best alternative
solution to the problem
...

It depends on one's own experience and knowledge
...
Intuitive and rational
decisions are not opposite to each other, but are complementary to each
other
...
The management should
rationally evaluate intuitive decisions
...
5 SUMMARY
Behaviour is a fatality of the environment, which is observed in the form of
stimuli
...
The reverse functions are also correct
...

Improved behaviour has better performance and rewards, which provide more
satisfaction to the employees
...
An organisation grows with the developed employees
...

It is a cognitive process, which selects, organises and interprets the stimuli
...
Although, perception may not be a real-world
presentation, it is an imaginary understanding of the situation
...
People perceive differently as per their
learning and personality
...
Social factors also influence the perception
process
...
The levels of education,
family background and political situation have a direct impact on the perception
level
...
7 SELF-TEST QUESTIONS
1
...


“Behaviour is the problem”
...


3
...


“Employees of different organisations have different perceptions”
...


5
...


17
...


Elton Mayo, the Human Problems of an Industrial Civilization, Macmillan
Publishing Company, New York
...


Keith Davis, Human Behaviour at Work, Tata McGraw Hill, New Delhi
...


Laurie J
...
), Pitman
...


Fred Luthans, Organisational Behaviour (8th ed
...


5
...
Robbins, Organisational Behaviour (9th ed
...


6
...
Hilgard and Gordon Power, Theories of Learning, Prentice Hall
...
B
...
PUNIA

ATTITUDES
OBJECTIVE:

The motive of the present lesson is to understand how attitudes
affect human behaviour and to identify how attitudes are
developed so that mangers can affect attitudes by controlling
various factors?

STRUCTURE:
18
...
2
18
...
4
18
...
6
18
...
8
18
...
1 INTRODUCTION
Attitude is the major factor, which affect the behaviour of a person or an
organisation
...
The
importance of attitudes in understanding psychological phenomenon was given
formal recognition early in the history of social psychology
...
However, over the years attitudes have been studied
with differing emphases and methods
...
In addition,
there were studies concerned with relationship of attitudes to some social
variables
...
This
period also brought the measurement of attitudes and opinions concerning various
facts of soldiering and war
...
Till now, the
researchers have developed a loosely structured theoretical framework
formulating the psychological processes underlying attitude change and the direct
application of the study of attitudes to contemporary social problems
...
2 MEANING AND CONCEPT OF ATTITUDES
Attitudes may be defined in two ways conceptual and operational
...
The term attitude
first entered in the field of social phenomenon, it was natural to conceive of
attitude as a tendency, set, or readiness to respond to some social objects
...
From this point of
view, attitude implies a heightened responsiveness to certain stimuli
...
For example,
Krech and Crutchfield define attitude as an enduring organisation of motivational,
emotional, perceptual, and cognitive processes with respect to some aspect of the

515

individual's world
...
The evaluative nature of attitude is also emphasised by Katz and Scotland
when they define attitude as a tendency or predisposition to evaluate an object or
symbol of that object in a certain way
...

In addition to conceptual approach, there is operational approach in defining the
term attitude
...

Taking attitudes from this point of view, only evaluative aspect of attitudes has
been taken into account
...

Thus in practice, the term attitude often is used in a generic sense to any reports of
what people think or feel or the ways in which they intend to acts
...
2
...
Thurstone defines
opinions as expressions of attitudes
...
Undoubtedly, attitudes are basic to opinions as well as to many other
aspects of behaviour
...
McCormick and Tiffin observe
that the measurement of attitudes is generally based on the expressions of
opinions
...

A difference can also be made between attitude and belief
...
Thus belief is a hypothesis concerning the nature of objects, more
particularly, concerning one’s judgement of the probability regarding their nature
...
Kolasa observes that beliefs are stronger
than opinions; we hold them more firmly than we do the more changeable
evaluations of minor or transitory events represented by opinions
...
2
...

The work situation is interpreted by individual, and attitudes play an important
part in which the situation is interpreted
...
This means that response expected of a
purely objective and rational consideration of the work situation and its
characteristics may not be the actual response of the individual
...
Obviously, attitudes are an important consideration
because of their central position in the process transforming work requirements
into effort
...
Instrumental attitudes are aroused by the
activation of a need or cues that are associated with the attitude object and
arouse favourable or unfavourable feelings
...
Attitude may be required and
maintained to protect the person from facing threats in the external world
or from becoming aware of his own unacceptable impulses
...
The attitude influences his/her behaviour by
affecting his perception of the situation accordingly
...
These attitudes arise by conditions that threaten the selfconcept, appeals to reassert the person's self-image, or by cues that engage
the person's values and make them salient to him
...

Attitudes that provide a standard against which a person evaluates aspects
of his world serve the knowledge function too
...
Since attitudes intervene between work requirements
and work responses, information about how people feel about their jobs can be
quite useful in prediction about work response
...


18
...
Although, these theories have many limitations, they
provide useful thinking about the processes underlying attitude formation
...
These theories may broadly be classified into three categories:
cognitive-consistency theories, functional theories and social judgement theories
...
Nevertheless,
such classification is valid from practical point of view
...
3
...
In general, these theories are concerned
with inconsistencies that arise between related beliefs, bits of knowledge, and/or
evaluations about an object or an issue
...

There are four important theories under this group
...
The theory is concerned with consistency in the judgement of
people and/or issues that are linked by some form of relationship
...
Two generic types of relationships are considered to
exist between the elements; linking or sentiment relations and unit
relations
...
Both linking and unit relations can be positive and
negative
...
Imbalance
exists if all three relations are negative or if two relations are positive and
one is negative
...
Thus if a perceiver likes a source who
favours a certain position on an issue, the balancing process induces the
perceiver to favour that position too
...
When imbalanced states occur, the
psychological tension created motivates the person to restore balance
cognitively by changing the relations
...

The basic model of Heider has been criticised on some grounds
...
Consequently, there are no degrees of balance or imbalance, and
it is not possible to make quantitative predictions about the degree of
attitude change
...
Denial involves denying a
relationship when imbalance occurs
...

Differentiation involves splitting one of the elements into two elements
that are related in opposite ways to other elements in the system and
negatively related to each other
...

These processes occur in hierarchy so that a person's attempts to resolve
imbalance in the ordering are discussed
...


521

This theory helps in understanding the role of persuasive communication
and interpersonal attractiveness in changing the attitudes
...
The
focus of the theory is on changes in the evaluation of a source and a
concept, which are linked by an associate or dissociate assertion
...
Congruity is a stable state and incongruity is unstable one
...


(C)

Affective Congnitive Consistency Theory
...
Rosenberg has related attitudes to
one aspect of cognitive structure-means-end relationship between the
object or issue and the achievement of desired and undesired values or
goals
...
It
proposes that the relationship between the affective and the cognitive
components of the attitude change when an attitude is altered
...
When there is inconsistency beyond a certain level of
tolerance, the individual is motivated to reduce the inconsistency and
thereby to change one or both components to make them more consistent
...
The theory also suggests that persuasive
communication can be used to change the attitudes
...

(D)

Cognitive Dissonance Theory: The cognitive dissonance theory, proposed by Festinger, has had by far the greatest impact on the study of
attitudes
...
The difference between the two is that this theory
(dissonance) tends to tie in the third component of the attitudes
(behavioural tendency) with cognitions about the attitude object
...
Cognitions are dissonant whenever they are incompatible; or
if they are opposed to one’s experience about the relationship of events
...
Cognitions are totally irrelevant when two events are
not interrelated
...
Dissonance varies in magnitude
...
Higher the degree of dissonance, higher would be the attempt
to reduce it
...
The basic model of Festinger applies to
several situations affecting behaviour of persons
...
Since magnitude of dissonance is a function of the relative
number and important elements, the amount of justification a person has
for engaging in the attitude-discrepant behaviour is an important
determinant of the amount of dissonance he experiences
...
For example,
when a person has to choose among a number of alternatives, he
experiences conflict before the decision
...
To

524

overcome this dissonance, the justification process starts
...

18
...
2 FUNCTIONAL THEORY
Functional theory considers how attitudes and efforts are related to the
motivational structure of the individual
...
An understanding of the
functions served by attitudes is important for attitude change procedure since a
particular method may produce change in individuals whose attitudes serve one
particular function, but may produce no change in an opposite direction in
individuals for whom the attitudes serve a different function
...
It can be seen that there is some similarity in
parts of this theory to cognitive dissonance theory
...
When new behaviours inconsistent with
attitudes bring satisfaction these attitudes then must be adjusted
...

Kelman has given another approach about the functional approach of attitudes
...
Kelman has distinguished three processes of attitude
formation and change compliance, identification, and internalisation
...
Compliance
occurs when an attitude is formed or changed in order to gain a favourable
reaction from other person or group
...
Internalisation
involves adopting an attitude because it is congruent with one's overall value
system
...
This approach makes an important contribution towards an
understanding of the conditions that influence the maintenance and stability of
attitude change
...
3
...
Accordingly, a
person's own stand on an issue, that is, initial attitude, serves as an anchor for the
judgement of attitudinally related stimuli
...
These
views can be considered in terms of attitudinal continuum and can be considered
as comprising latitudes
...
The attitude of rejection, which is the range of opinions the
individual finds objectionable, encompasses the opinion he finds most
objectionable
...


18
...
Though there are different approaches as how learning
works and is acquired by individuals, generally it is held that individuals learn
things from the environment in which they interact
...
Such factors
may be analysed in term of group, then to larger Starting from the family as a
group, an individual moves in a close group, then to larger groups, and finally to
the society as a whole
...

(i)

Group Factors: The influence of groups on the attitudes of individuals is
inversely proportional to the distance of the group from the individual
...


527

Family: The term family may be used in a variety of ways: it may include
a nuclear family which means the immediate group of father, mother, and
children; an extended family which includes nuclear family and other
relatives
...
In fact, when a person starts learning anything about the
world, he learns it through his mother which is known as the process of
socialisation
...
Gradually, when the child grows up he comes in contact with others
in the family but does not make significant contact with persons outside
his family
...
First, other family members
have certain personality characteristics, evaluative criteria, and attitudes,
and the family as a whole has certain attitudes and values, which are
shared by all other persons
...
As an individual interacts with other family members, he
simultaneously both influences the personality characteristics and attitudes
of others and in turn is influenced by others
...

Reference Groups: The awareness and learning of behaviour alternatives
is accomplished efficiently through the influence of reference groups
...
This group may include family or

528

other types of groupings, either primary or secondary groups
...
This happens
through the process of socialisation
...
Though all groups with which an individual makes
contact have influence on his attitudes, the values and norms of the
primary groups play a very important role in influencing attitudes,
opinions, and beliefs of the members of the group
...
They have the important task of transmitting cultural
behaviour patterns to specific groups and families
...
The family then transits these cultural expectations to the
individual
...
People have
their close relationships with people of similar classes, which tend to
restrict attitude formation in similar patterns of other members
...
These are
transmitted differently among social classes
...
However, many personality characteristics themselves are
determined by group and social factors, as discussed earlier
...
This area has been the subject of great interest of
research and study, particularly with respect to broader area of prejudice
and social functioning
...
Adrono et
al
...

The ethnocentric stuck to the straight and narrow, holding conventional
values, not being able to accept certain socially unacceptable impulses
and, therefore, in the main, projecting these on others
...
He found that the conservative attitudes characterised these at
the lower end of the intelligence scale with less education and with less
awareness of current events
...

Since personality itself is influenced by various group and in
understanding attitude formation, these factors, particularly former ones,
must be analysed
...
5 ATTITUDE MEASUREMENT
The subjective attributes of people are attitude
...
Thus,
people may vary along each of a number of attitudinal dimensions
...
Attitude measurement, developed largely by social
psychologists, is concerned with efforts to tap these attitudes as they are
characteristics of individual
...
In
pulling together numerous methods dealing with attitude measurement, Summers
uses the following organisation which, in effect, is classification of methods of
attitude measurement : (i) self-report (usually elicited with, questionnaires dealing
with beliefs, feelings, and behaviours) ; (ii) indirect tests (such as projective
techniques and disguised approaches); (iii) direct observation techniques; and (iv)
psychological reaction techniques
...

Measurement of attitudes based on questionnaires uses several scaling methods
...
The
Thurstone type of scaling goes back to the early work of Thurstone and Chave,
who collected a large number of statements relating to the area in which attitudes
were to be measured
...
The statements are both favourable and
unfavourable, and are placed in piles: most favourable statement being placed in
pile 1 and the most unfavourable one being placed in pile 11
...
The scale is then presented to the respondents
...
His attitude score is then based either
on the average or the median scale of the statements that he has checked
...
Liker’s attitude scale uses five points
...
These points show degree
of agreement or disagreement with the given statements
...
For
example, in this scaling, there is not much problem in making numerous
statements because for every aspect, only one statement is required which will
show both positive and negative degrees
...
The semantic differential, an attitude scaling technique that lends itself to
various applications, was developed by Osgood, Suci, and Tannenbaum
...
For any given purpose it consists of several or many pairs of opposite
adjectives or phrases, with scale values in between
...
Scale values (often ranging from 1 to 7) are associated with the
different responses and individual's attitude score usually is the sum of these
...
These include the Guttman technique, the error-choice method, and
the sentence completion method
...
6 ATTITUDE CHANGE
There is often a paradox of attitudes in that people need them to provide stability
to social world yet world is a changing one and people must change their attitudes
appropriate to the situation
...
Organisations adopt a
number of techniques for changing attitudes of their members so that their
behaviour corresponds with the organisational requirement
...
Though
various theories of attitude formation and change have been presented earlier
which help in understanding attitudes and the techniques through which they can
be changed, the change techniques can be more effective, if three basic factors (as
discussed below) are considered adequately:
1
...
Theories attitudes
suggest numerous types of their characteristics
...
of which the focal
attitude is a part, (vi) the number and strength of the needs which are served by

533

the attitude, and (vii) centrality of related values
...
of
attitudes, there may be two types of attitude change: congruent and incongruent
...
An incongruent change is
...
Congruent change is
easier to produce than incongruent one-specially when the attitude held is
extreme, central in the attitude system, and interconnected with supporting
attitudes
...
The number off acts involved in the cognition and the number of facts
to which it is related makes the attitude simple or complex
...
The degree of
interconnectedness determines the changeability of attitudes
...

Similarly, depending on haw many social wants support them and the strength of
these wants, the attitudes may be mare or less changeable
...

2
...
This is so because of personality differences
...
Persuability is the tendency of a person to accept a persuasive

534

communication
...

Several personality factors suggest different types of persuability
...
The mare inadequate a person feels and the mare social
inhibitions he has, the mare likely is he to be perusable
...
Related
to the personality factors, there is a style of thinking referred to as close minded or
dogmatism
...
There is a strong
belief in the cause and a decreasing tendency to admit that other causes might be
valid
...
It tends to be organised around some central
authority theme, which must be protected at all costs
...
In such cases attitude change
is often resisted
...

3
...
This is more so in the case of less extreme attitudes
...
As will be discussed later, one of the powerful bonds

535

which, hold the group together is the fact that members think alike
...
Though people are not always exposed to information in the concept or
groups and information, which may change their attitudes impinges upon them
from many sources, even outside the group, their membership still influences the
way the new information is perceived
...

18
...
1 METHODS OF ATTITUDE CHANGE
Various methods have been adopted for attitude change
...
However, in some way or the other, all these methods
involve introducing discrepancies among the elements making up the individual's
attitude in the hope that elements win be rebalanced through changing the
affective component of the attitude
...
Thus
from organisation's point of view, a manager may take the following actions in
bringing out change the attitudes of organisational members
...
These
factors have been taken for detailed analysis in later chapters
...


18
...
It involves liking or
disliking people, work and objects
...
Attitude is developed through learning, although the
family, society and nation exert great influence in the attitude formation of
people
...
For example, the
attitude of male workers is that female workers cannot perform hard work
...
Attitude formation is
related to the cognitive aspects of behaviour
...
8 SELF-TEST QUESTIONS
1
...


What are the various theories of attitude formation and change?

3
...


What are the various methods of attitude measurement? How does attitude
measurement help the management?

5
...


18
...


Elton Mayo, The Human Problems of an Industrial Civilization, Macmillan
Publishing Company, New York
...


Keith Davis, Human Behaviour at Work, Tata McGraw Hill, New Delhi
...


Laurie J
...
), Pitman
...


Fred Luthans, Organisational Behaviour (8th ed
...


5
...
Robbins, Organisational Behaviour (9th ed
...


7
...
Hilgard and Gordon Power, Theories of Learning, Prentice Hall
...
B
...
PUNIA

LEARNING AND VALUES
OBJECTIVE:

The objective of the lesson is to understand learning as a factor
affecting human behaviour and to know the reinforcement for
inducing positive human behaviour
...
1
19
...
3
19
...
5
19
...
7
19
...
9
19
...
11

Introduction
Definition of Learning
Process of Learning
Models of Learning
Reinforcement
Types of Reinforcement
Techniques of Reinforcement
Values
Summary
Self-Test Questions
Suggested Readings

19
...
The
learning depends upon one's personality, perception and situation
...
The learning process is the
process by which individuals acquire the knowledge and experience to be applied
in future behaviour
...
It encompasses the total
learning process from the beginning of life to its end, going through reflexive
responses to knowing abstract concepts and complex problem solving
...
Motivation acts as a spur to
539

learning
...
The learning starts with motivation, which is given direction by cues
...
Cues guide employees to behave in the right way
...
Response accepted for
behaviour becomes reinforcement, which moulds the behaviour of employees
...
Getting favourable cues, he responds to learning
...


19
...
All of them have
accepted that learning shapes human behaviour
...
Tim R
...
Davis and Fred Luthans have
defined learning as a cognitive and modeling process for acquiring knowledge
and experience
...
Robbins has stressed upon learning as a “relatively
permanent change in behaviour that occurs as a result of experience”
...
Learning is a process of observation, action, reaction
and response to some stimuli
...
The
outcome of learning is a permanent change in behaviour
...
A temporary

540

change in behaviour is not learning because it is purely reflexive
...
If it were purely theoretical, it
would not be learning
...
“Learning is the process by which an activity
originates or is changed by reacting to an encountered situation, provided that the
characteristics of the change in activity cannot be explained on the basis of native
response tendencies, maturation or temporary states of the organism”
...
It reveals that learning is
the inferred process, which influences behaviour
...
He gets new things or may change his process as a
result of observation and cognitive processes
...
Learning must be deliberately accepted
...
Behaviour is learned through a cognitive process
...
A child knowing the language of her mother is
not learning, because it is a natural process
...
The learning
process starts with motives and continues with cues, responses and reinforcements
until the learner acquires the required changes in behaviour permanently
...
The learning
process is a mental and habit formation process
...
If the learner gets a reward for his improved behaviour, he forms it
into behaviour
...
The efforts result in satisfaction and become a stimulus for further
learning
...
This process continues and the employee learns and effects
permanent changes in his behaviour, which become a part of his habits
...
A habit motivates an employee to perform
better
...
He learns constantly and effects a
permanent change in behaviour
...
This process
continues and the employee learns in the process
...
3 PROCESS OF LEARNING
(i)

Stimuli: Stimuli are any objects and language, which draw the attention of
people
...

Superiors tell and advice employees who pay attention to these stimuli
...
Literary works are also stimuli,
which are given attention by educated employees
...
Universities and colleges also impart stimuli for
learning
...
Practical training and
vocational teaching are forceful stimuli
...
Social, political, cultural and geographical factors provide
varieties of stimuli for learning
...

Technical and interesting stimuli are highly attended
...
The personality levels of employees
influence their desires to learn, motives for need fulfillment and tension
reduction
...
People's creative
attitudes are favourable factors for learning and paying more attention to
available stimuli
...
Employees paying attention to stimuli
are recognising the stimuli for learning purposes
...
When objectives are unclear, employees do not pay attention
and do not recognise the training as a fruitful process of improvement
...


(iv)

Translation: Recognised stimuli are evaluated at the mental level to
eliminate the irrelevant points for accepting a part of the stimulus for
changing behaviour
...
An activity will not take place unless it is
found useful by employees
...
Employees behave properly through attitude changes,
objectivity, mental and physical development
...


543

(v)

Reinforcement: Reinforced perception is learning
...

Perception leads to learning, but perception itself is not learning unless it
is reinforced
...
Reinforcement may be
positive, negative, punishment and extinction
...
Generally positive reinforcement is more effective for
making permanent changes in behaviour
...
It makes permanent changes in behaviour
...
Positive behaviour gives
rewards to employees
...
If the translated
behaviour provides a reward, it is accepted, otherwise it is not accepted
...
Rewards may be monetary
or non-monetary
...
Professional satisfaction is attached to
the behaviour, which influences the form of reward
...
The reward
reinforcement makes employees learn more than positive reinforcement
behaviour
...
Employees
develop the habit of self-appraisal and development
...
Right behaviour is reinforced repeatedly
...
Habits
translate theoretical knowledge into practice
...

(ix)

Motives: Motives depend on the level of satisfaction
...
Less satisfied
learners have low motives
...


(x)

Efforts: Habits help achieve good efforts and performance
...
Efforts are the automatic outcome of good habits,
which are acquired through the learning process
...
Employees willing to develop themselves are
self-motivated and effort-oriented
...
Self-learning has been
observed when employees have developed good habits and right motives
...


The learning process is totally associated with the mental process, inspiration and
action
...
If it pays attention to stimuli it
goes to the inner-level of the mind at subconscious level
...
The relevant stimuli are attended to, but a smaller
portion of the stimuli attended is recognised by the clear mind
...
The stimuli recognised further go to the
inner part of the mind only when the clear mind has received them and the feeling
cell of the mind evaluates their utilities
...
The evaluated stimuli if found correct are
stored at the level of the feeling cell of the mind
...
Repeat and recall are
mobilising factors for action
...

Intensity at the mental level activates the heart to function
...
Behaviour is the
outcome of intensified stimuli and the heart's activitisation
...
The reward itself becomes a stimulus, which is attended,
recognised, translated and reinforced respectively by the unconscious,
subconscious, clear, felt and intense mind
...
Permanent changes in behaviour
converge in the form of a habit
...
4 MODELS OF LEARNING
Theories of learning have been developed as models of learning which explain the
learning process by which employees acquire a pattern of behaviour
...
Some models
believe that individuals cannot learn independently
...
Other theories believe
that employees can learn by observation
...
No one can learn unless they are willing to learn
...
It is also believed by some theorists that
learning is a stimulus - response process
...
The stimuli provide understanding and insights to the employees
...
Previous learning helps further learning
...
Learning is a constant process, which provides reinforcement to
employees to avoid forgetfulness and take up learned behaviour
...
A perfect theory explains how,
when, why and other aspects of learning
...

19
...
1 CLASSICAL MODEL OF LEARNING
The classical model of learning developed with experience of the material process
accompanied with learning stimuli
...
In Indian
mythology, some examples have been observed where the learner took the
assistance of natural phenomena to make a pupil learn a new process of functions
...
It is a natural phenomenon that a dog secretes
saliva when meat is put before the mouth of dog
...
The unconditioned response,
i
...
the secreting response, becomes a conditioned response after sometime as the
dog learnt that the ringing of a bell meant the availability of meat
...
In the Pavlov theory, the dog
learnt to secrete saliva (conditioned response) at the ringing of a bell (conditioned
stimulus), after repeatedly performing the functions of unconditioned stimulus
(showing meat) and conditioned stimulus (ringing bell) simultaneously
...
Employees can be conditioned accordingly
...
Employees can learn the new conditioned stimuli if they are
repeatedly given new stimuli along with the old unconditioned stimulus
...
If these stimuli are accompanied with non-monetary
incentives for some period, employees learn to work hard with non-monetary
incentives
...
, which
can be used for getting conditioned response from them
...
Reinforcement of
the unconditioned stimulus and conditioned stimulus is needed to get a
conditioned response
...

Reinforcement makes the conditioned stimulus behave as an unconditioned
stimulus to get its natural response
...
It is elicited
...
An advanced employee may not get the benefit of classical
conditioning, which is purely a formation of a Stimulus - Response link habit
...
Learning car driving is based on stimuli-response
(S-R) behaviour where the driver is immediately alerted to a response as he
confronts a boy in front of his running car, i
...
conditioned stimulus
...
In Indian industries, classical conditioning is an important
method of learning when employees start with certain natural phenomena along
with an artificial work style to arrive at new methods of working
...
4
...
e
...
Employees behave in a particular manner because
they would like to get a reward (Response)
...
Reward creates drives and motives to acquire certain
behaviour amongst employees
...
F
...
He argues that behaviour increases and develops to acquire
certain benefits
...
Employees do not accept behaviour, which is not rewarded
...
Employees work hard
to get additional benefits
...

Learned employees for the sake of customer satisfaction, employee productivity
and shareholder wealth improve corporate functions
...
The classical conditioning has the stimulus as the beginning of
learning, whereas operant learning starts with the response, which becomes a
stimulus for the learning process
...
The employees pay more attention,
recognise properly and translate their recognition into behaviour
...
People do not like
to learn a process, which is not rewarded
...
In the absence of a reward and response, behaviour is
not shaped, and the learning process does not take place or continue in the future
...
It is the reverse of
classical learning where the stimulus provides the response
...
The drive can be
developed by a variety of responses or events
...
The habit is developed or learned through
motives, which improve the efforts of the employees
...
Effort encourages and becomes a

550

stimulus for learning
...
Translation and reinforcement help
behaviour, which assures reward
...
Reinforcement strengthens behaviour, which in turn is aimed at acquiring
the reward, which drives habit and motivates efforts for a proper performance
...
It is a known law of effect that
reward strengthens habits because of lessening drive
...
Reinforcement has become an important
factor to shape stimuli into behaviour
...

Positive reinforcement assures reward, whereas, negative reinforcement avoids
unpleasant conditions
...
For example, proper operation of machines is needed to avoid
accidents or casualities
...
e
...
The positive and negative reinforcement change behaviour, which if
rewarded becomes a habit
...
They are used to avoid unpleasant behaviour
...
On the contrary, reward and response are taken for learning
...
To change
the desired behaviour into habit, reward is an inevitable point and conversion
factor
...
If the conditioned stimulus has been acquired through the
process of pairing with unconditioned stimulus, learning is acquired, as it will
give a conditioned response
...

The S-R connection in classical learning is changed to the R-S connection in
operant learning
...
It may be nonfinancial and psychologically satisfying to the employees
...
On contrary, the operant learning theory emphasises that
the required learning and behaviour is adopted for getting basic and other needs
...
He learns to manage efficiently
to gain recognition
...

Scientific research and technological development is related to operant learning
...
4
...
They learn socially by observation, and the importance of the perception
process has been recognised under the social learning model
...
Employees pay attention to several social stimuli,
which occur in their surroundings
...
The attended stimuli are recognised and translated by
employees
...
The retention process is helpful for storing
information
...
The recall provides reinforcement
and behaviour
...
The
learning process is completed when employees show changes in behaviour, which
becomes a habit, i
...
permanent change in behaviour
...
Social learning refers to the learning process through vicarious
process, modeling and self-control
...
Millar and Bollard propounded the vicarious
process wherein they believe that learning can take place through imitation
process
...
It refers to learning
through social action, reaction and interaction
...

Culture and religion are accepted for teaching the new generation about life style
and behavioural patterns in society
...
If
the consequences are positive and satisfactory as per social norms, people like to
imitate and perform with repetition
...
It is not a discrete

553

performance with discrete response consequences
...

Modeling is effectively applied for shaping behaviour
...
The behaviour leads to performance
improvement
...
A
favourable environment increases the probability of attention and retention
...
The behaviour is
acquired as a result of the modeled process of existing behaviour
...
Modeling procedures have a
favourable impact on behaviour and habits
...
5 REINFORCEMENT
Reinforcement is the crucial factor in the learning process
...
Perception becomes learning only
through reinforcement
...
It increases the strength of response and induces repetitions of the
response, which is the outcome of the translated and evaluated stimuli
...
Reinforcement increases the
possibility of specific responses occurring in future as a result of evaluated stimuli

554

or uses
...
No stimuli can take the shape of behaviour unless reinforcement or repetition
takes place during the learning process
...
The behaviour i
...
learning car
driving becomes a habit because the learner gets rewarded for his behaviour in the
form of the satisfaction of car driving
...
New behaviour or change in
behaviour is the output of learning, which is the outcome of stimuli input through
reinforcement
...
Reinforcement is another term for conditioning
...
Behaviourists have proposed conditioning of employees for proper
behaviour
...
A habit is formed
through repeated rewards attached to behaviour
...
Social conditioning is concerned with social
recognition and acceptability
...
Reinforcement is a cognitive process
...

Reinforcement, being cognitive in nature, is environmentally based
...
Goal-oriented reinforcement is long
lasting and increases the strength of response
...
6 TYPES OF REINFORCEMENT
Reinforcement may either be positive and negative, extrinsic and intrinsic,
primary and secondary, and in the form of punishment and extinction
...
Systematical reinforcement of successive steps
will move employees closer to the desired response
...

19
...
1 Positive and Negative reinforcement: Positive reinforcement consists of
events that assure achievement of a specific response or the desired
behaviour
...
It means that positive
reinforcement assures desired consequences and pleasant achievements
through strengthening of the present behaviour or present new behaviour
...
It is the presentation of attractive results
...
Negative reinforcement is the termination or
withdrawal of an unpleasant and undesirable result
...
Negative reinforcement
is the termination of unattractive results
...
Appreciation of an employee, who
is successful in performing a task if constantly repeated, will be positive
reinforcement
...
Negative reinforcement strengthens and
increases a particular type of behaviour, as the employees learn how to
avoid and prevent accidents while operating electric machines
...

Negative reinforcement is not punishment because the latter decreases and
discourages behaviour, while the former increases and strengthens

556

behaviour to avoid something undesirable
...
In both
the cases, behaviour decreases
...
Employees learn to escape and avoid
unpleasant jobs
...
For example, employees are not very active and
good performers when the supervisor is not present in the factory
...
It is a negative reinforcement that employees
avoid unpleasant rewards in the presence of the supervisor by nonworking
and being non-active
...
e
...

Negative reinforcement simply avoids unpleasant tasks, but it does not
assure a pleasant performance for which positive reinforcement is
essential in the organisation
...
6
...
The environment
in the factory helps exercise extrinsic reinforcement
...
The relationship between the
supervisor and employees, monetary incentives and favourable work
conditions are several examples of external reinforcement
...
Extrinsic reinforcement is external and has other
activities influencing the learning process as reinforcement
...
When the employee
develops his own understanding of the problem, it is self-reinforcement
...

Feelings

and

motives

become

intrinsic

reinforcement
...
Extrinsic
reinforcement will not be effective unless intrinsic reinforcement is
applied for learning
...
Extrinsic
reinforcement is evaluated by employees and, if accepted as useful, will be
converted

into

intrinsic

reinforcement
...
Intrinsic reinforcement is
personal and relates to satisfaction, recognition, challenges, growth and
responsibilities
...
The success of reinforcement depends on how
much it influences the internal drive of the employees
...

19
...
3 Primary and Secondary Reinforcement: Primary reinforcement directly
influences primary motivational drives
...
The employees are reinforced to learn by adopting primary

558

functions or basic needs
...
For example, they are told that A is
...

Therefore, the first letter of these fruits will help them understand the
letters
...
Primary
reinforcement is mainly observed in classical learning wherein the
artificial reinforcement is accompanied with the natural or primary
reinforcement to make a long-lasting impact of artificial reinforcement
...

Secondary reinforcements are artificial and new in their characters
...

Technical education first introduces the machine and its components
before detailing its operation
...


This

reinforcement is used for motivation and modifying behaviour
...
6
...
It is generally used to make the
employees learn a particular type of behaviour
...
Supervisors use punishment to modify the
behaviour of employees
...

It is the reverse of reinforcement for altering behaviour
...
Indian workplaces

559

generally use punishment for mending the behaviour of employees,
although it is the reverse of reinforcement and learning
...
Fear psychosis is helpful
to the learning process
...
On the
contrary, punishment decreases reinforcement and consequently the
learning process and results
...
Punishment is the appreciation of an undesirable
process or the facing of noxious consequences
...
It creates unpleasant conditions to eliminate
undesirable

behaviour
...
Punishment is an unpleasant
condition to prevent undesirable behaviour
...
Punishment does not
contribute to learning the desired response
...

Only positive and negative reinforcements help in learning and getting a
favourable

outcome
...
The
withdrawal of desirable consequences occurs after behaviour has taken
place
...
Ignoring undesirable behaviour is extinction
...
Ignoring this behaviour will extinguish undesirable behaviour
...
The behaviour
fades with the neglect of response
...
Punishment and extinction are
not true learning processes as there is no effective reinforcement for the
learning process
...
Positive and negative reinforcement help learning
because they provide favourable behaviour and avoid non-favourable
behaviour
...
7 TECHNIQUES OF REINFORCEMENT
Reinforcement plays a crucial role in human resources management such as
learning, training, improvement, development and modification
...
Employees are psychologically treatment through
reinforcement for delivering good results
...
The pattern and timing of
reinforcement are important factors to determine the results of reinforcement
...
However, the speed, place and
timing of reinforcement have much bearing on behaviour change
...
7
...
The schedule of reinforcement may be continuous or
intermittent
...

(i)

Continuous Schedule: A continuous schedule incorporates each and
every item of learning in a systematic order
...
Learners get stimuli and cues
repeatedly till they learn the desired behaviour
...
The machine operators are continuously told to
operate the machine
...
They operate the machine in the presence
of the supervisor who constantly describes the use of each and every part
of the machine till they learn how to operate the machine effectively
...
Reinforcement is given after a gap to make the
learner repeat himself during the learning process
...
It promotes
more resistance to extinction
...
It is
clarified with a simple example of a machine operator in the factory
...
However, in the case of intermittent
reinforcement, the foreman comes after a certain time and explains
whatever is not clear to the employees
...
In
this case, the learner applies his mind and tries to think clearly when the
trainer is absent, because the trainer will not be present always to solve all
his problems
...
The time interval
depends on the number of employees engaged in learning and the nature
of learning
...
The gap between the
first instruction and the second instruction makes the employees learn the
behaviour demonstrated in the first instruction
...
The discontinued and discrete schedule helps understand the
work profoundly
...
Behaviour becomes
resistant to extinction
...

Interval Schedule: Reinforcement is done with a uniform time interval
...

Fixed interval schedule: A fixed interval schedule has a constant
variable
...
Reinforcement is given after a specified

563

period of time
...

Since there are different learning processes, the fixed interval varies from
one job to another
...
Monetary
reinforcement is generally at fixed intervals
...

Too long or too short an interval may hamper the learning process and
consequently the results or response of reinforcement
...
The learner is unaware
as to when he will get the reinforcement
...
If anyone is found inactive at any time, he
may be punished
...
Reinforcement is given in an
irregular or unsystematic manner
...
It makes employees aware of their functions and
disciplines all the time, to avoid any punishment during a random visit by
the supervisor
...

At any other time, they are inactive and careless
...

Fixed ratio schedule: The difference between interval and ratio is that the
critical value is time in the former case and the number of responses in the

564

latter
...
For example, reinforcement is fixed after twenty responses
...
The
response of wage is linked to the reinforcement of output
...
If the reward is paid with the
response, employees try to have a larger number of responses to get the
reward
...

Variable ratio schedule: Reinforcement varies with the response and is
not in a fixed ratio
...
Reinforcement is not fixed to the number of
stimuli
...
Fixed ratio reinforcement may produce different responses
because of different levels of understanding of employees
...
The fixed and variable interval as well
as fixed and variable ratio provides opportunities for modification and
development of behaviour
...
Every reinforcement has its advantages and disadvantages
...
Continuous reinforcement is
useful for newly appointed employees with unstable and low frequency
responses
...
Intermittent reinforcement is effective with stable and high
frequency responses
...
A variable interval schedule
provides opportunities for high responses and more stable and consistent
behaviour because of the uncertainty involved
...


19
...
They view life from different angles which
are reflected in their work performance
...
Values refer to the basic
convictions, which lead to formation of conduct or social preferences
...
They help
employees decide what is right, good, desirable, and favourable and so on
...
The
intensity attributes or value system has relative importance
...
Honesty, self-respect,
equality, sincerity, obedience, truthfulness, etc
...

Values are significant in organisational behaviour
...
Learning may help provide opportunities for
development of values
...
Behaviour is modified
only if people are aware of right or wrong things, which are the deciding
components of values
...
Values influence objectives too, because values
shape the attitude and behaviour of employees
...
Learning helps
employees develop high values and favourable behaviour
...
8
...
g
...
Parents are the initiators
of values
...
They
ask their children to do right things and avoid wrong things
...
Brothers and sisters play
significant roles in developing values
...
That is why it is said that
children of a good family will be good and hard workers
...
Friends influence each other to resort to
particular behaviour
...
Teachers teach
several good values to be adopted by students
...
Society has a great impact on shaping the inter-behaviour of
people, which provides value formation
...
Values are learnt and
developed through religious factors
...
For example, righteous behaviour

567

pleases god and vice-versa
...
Indian
society believes that good values are related to godly pleasure, which give
satisfaction to people
...
People should be honest and responsible while performing a
job
...
Misery, suffering and dissatisfaction are
associated with bad values
...
National characters have a great impact on the values exercised by
the people
...
Peace-loving nations develop peace values in people
...
Learning
strengthens good values and avoids bad values through positive and negative
reinforcements respectively
...

19
...
2 TYPES OF VALUES
Values may be of different types, depending upon their sources of formation,
namely family values, economic values, social values, religious values and
national values
...
The
behaviour of family members with each other depends on the values developed
...
A father will treat his children
affectionately
...
There are different family values, which are bases of satisfaction and
happiness in the family
...
If an employee is unable to develop himself
and his family, he has not given due importance to economic values
...
Economic
well being is considered a symbol of status and satisfaction
...
Social recognition and social satisfaction are
related to social values
...
Religious values are often observed in India where large sections of
the people are governed by religious values and acceptances
...
The aim of life is told to them and this incorporates several
relevant values to shape the behaviour of people
...
People practice instrumental values for the development of family and
society
...
For achieving satisfaction, National values are preached by national
leaders
...
Truth and nonviolence were the two important values preached by him
...
The modem generation
below the age of 30 is freer, leisure-minded, and flexible and so on
...
Instrumental
values of honesty, responsibility, ambition, courage and independence may
achieve the terminal values of self-respect, security, accomplishment, happiness
and self-satisfaction
...
Good values are to be explored, initiated and developed for the
modification of performance behaviour in an organisation
...


19
...
People are interested in self-development
...
Reinforcement has a major role in the learning process
...
Human being has very few instincts or innate response
tendencies relative to lower animals
...
This is because of his learning capacity
...


19
...


Analyse the role of learning theory for understanding human behaviour
...


Discuss the nature of classical conditioning and operant conditioning
...


What is reinforcement? Discuss its use in organisation
...


Discuss the learning process in an organisation
...


Explain the importance of values and reinforcement for learning process
...
13 SUGGESTED READINGS
1
...


2
...


3
...
Mullins, Management and Organisational Behaviour (2nd ed
...


4
...
), Irvin/Tata McGraw Hill
...


Stephen P
...
), Prentice Hall India
...


Earnest R
...


571

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Lesson No: 20

Author: Dr
...
M
...
Turan

INTERPERSONAL BEHAVIOUR
Objective: The objective of this lesson is to make the students learn
about the concept of interpersonal behaviour and its different
forms
...
1 Background
20
...
3 Assertive Behaviour: Components and Techniques
20
...
5 Self Assessment Questions
20
...
1 BACKGROUND
The basis of our relationships, our loves, hates, commitments and duties
make us what we are
...
Schools, colleges and other learning
institutions enlighten us on a variety of subjects and equip us to "face life"
economically, socially and intellectually
...
Each one of us
learns this independently, through trial and error and eventually develops
certain typical ways of coping with people and situations
...
Even in our daily interactions
with parents, friends, strangers and relatives, we are often faced with the
dilemma of either expressing our feelings honestly and directly, thereby
running the risk of hurting them and losing their affection and thoughts, and
thereby creating uncomfortable undercurrents of hostility and resentment in
the relationship
...
Section
I of this lesson will focus on the dynamics of human interpersonal
behaviour i
...
the different ways in which we cope with people and
situations
...
There will be a brief discussion on the role of anger
and the difference between anger and aggression
...
And finally
Section III will look at assertiveness at a glance
...
2

DYNAMICS OF HUMAN INTER PERSONAL BEHAVIOUR

573

One of the causes of stress is the inability to cope with conflict in
interpersonal relations
...
At these times, we are out of control of
ourselves
...

The Fight and Flight Response
How do people generally react, when faced with a conflict? Surprisingly,
not very different from animals! Have you ever seen a cat when cornered?
Its whole body becomes stiff, eyes dilate, tail stands on edge, hairs stand
up, and it starts emitting strange sounds
...
Although
slightly modified in present day civilized person, this response is still very
much visible in for example the irate, defensive mother-in-low who wants
to vindicate herself before her son, or to take a more common example the
bus conductor, who in a loud aggressive voice states that he does not have
change
...
Again its
manifestation in modern person is seen in the individual who
procrastinates, avoids taking stands, and is constantly eluding or running
away from trying or problematic situations, for example, avoiding a friend
whom you had promised something, by taking the easy way out: just
not being available
...
They are usually

574

associated with the emotions of fear, anger/frustration, and they were of
immense value to our ancestors (e
...
to run as fast as possible, on seeing
some danger in the form of a predatory animal) because you didn't have to
think
...
The very emotion of fear/rage, by reflexaction,
aroused the survival instincts, preparing them for fight or flight as the case
may be
...
But, the Fight
and Flight responses when carried to an extreme prevent us from exercising
our third option of verbal problem solving
...
Smith explains
...
Anger-fight and fear-flight actually
interferes with this verbal coping ability
...
The blood supply is automatically rerouted away
from your brain and gut to your skeletal muscles to prepare them for
physical action
...
When you get angry or afraid, you just don't
think clearly or efficiently
...
The first is to consider one' self only and ride roughshod over
others
...
is always to put others before one's self
...
The individual places himself first, but takes
others into account
...

- Sir Winston Churchill
Non-Assertive behaviour is somewhat similar to the flight response, in that
fear stimulating situations; automatically generate inhibited behaviour in
the individual concerned
...
They are usually at a loss for words,
hesitate to express their opinions, thoughts, or needs clearly and allow
others to decide for them
...

The individual who cannot refuse requests, or say `No' without feeling
guilty, hesitates to displease others, to express opinions which differ from
others, is easily persuaded by girl salespersons into buying things which
they do not need or want; the employee who is afraid to assert herself
before her bullying husband, are all examples of non assertive behaviour
...
The generally non-assertive person is one

576

with very low self-esteem
...
The situationally non assertive
person is on the whole able to cope with people and situations, but certain
situations generate mush anxiety in them: the student who can get along
well with classmates and people in general, but shivers when they have to
face authority figures, like the principal
...

- Horace Greeley
There is another class of people, who respond to conflict by becoming
aggressive - a fight response
...
to frighten the
other person - they put themselves up by putting others down
...
The village `goonda', or the `neighbourhood
bully' is typical examples of aggressive behaviour
...
Aggressive behaviour is easily recognizable
...
Their body becomes erect and stiff,
and slightly bent towards the other individual (they may even take two
steps forward and forward and catch hold of the other person's collar), eyes
become big, voice is raised
...

On the surface, these people usually appear to have level of selfconfidence, to be in command of every situation and to be strong and able
to cope with life on their terms
...
In order to cover up this insecurity, they

577

compensate by becoming overly aggressive, and apparently in command
of every situation
...
The generally
aggressive individual has learned early in life that in order to get what you
want, it is okay if you ride roughshod over other people's feelings, rights,
etc
...

Aggressiveness can also be expressed indirectly or passively
...
And if they get angry, they are likely to use sneaky ways to get
revenge
...

Because of the reaction accorded to the aggressive woman and the misery
experienced by the passive woman, many women develop the ability to get
they want by indirect means, for instance, the woman who will bang the
pots and pans in the kitchen to express her anger (when her manipulations
do not work out) instead of directly saying what is bothering her
...
Anger is a natural emotion, also healthy
...
You can reason with an angry person, but not with an aggressive
person
...
The assertive individual has a high self-esteem, values self and
others, while the non-assertive individual values others but not self, and the
aggressive

individual

values

only

self

but

not others
...
Instead of
passively giving in to people's demands, on the one extreme, or completely
ignoring them on the other extreme, the assertive individual will assess the
situation,

and

take

into

consideration

both

points

of

view
...

For example, if someone makes an unreasonable request - unreasonable for
the individual concerned - the assertive person will very simply refuse the
request, while acknowledging the other person's feelings
...
(whatever)'
...
'I will
not'
...

Manipulative Coping
In modern society, especially in the upper classes, people are not openly
non assertive, or aggressive
...
We are taught, for example, not to be aggressive, it creates bad
impressions
...
It is like a verbal game and the winner is the one who
deftly manages to escape, keeping his image intact!
Manipulative coping usually leaves you frustrated, irritated and anxious,
and these feelings are eventually expressed by you in verbal fighting or
running away
...
We can do what someone else wants, be frustrated very often, get
depressed, withdraw from people and lose our self respect;
2
...
We can avoid conflict by running away from it and the people who
cause it, and lose their self-respect
...

Everyone feels anger, sometime or the other, but the ways in which we
show our anger are different
...
Now, the other
person can react in either one of the following ways:
1
...
!"
2
...
Non-verbal put-down : a dirty look
...
Saying nothing
...
Do not believe them
...

Such controlled individuals typically suffer from migraine headaches,
asthma, ulcer, and skin rashes
...
Simple
direct verbal expression of your anger is much better than bottling it up or
using indirect means - taunting, making snide remarks, or even non verbal
put-downs like, making faces, refusing to talk, sulking, etc
...
Even saying simply and
forcefully, "I am very angry with you" is preferable to calling names or
abusing or physical exertion like banging doors, and throwing things
...
A
classic example of this is that of newly weds
...
Not wishing
to directly confront him, as she is afraid to "spoil their relationship" (or so
she thinks), she finds another way out to vent her feelings
...

Worse, when all the family gathers together, she berates him in front of
everyone - the case of washing your dirty linen in public
...
This way only
serves to embitter her husband and make him lose his love and respect for
her
...

Very often people confuse angry feelings with aggressive behaviour
...
aggression is not the same thing as
anger! Anger is a perfectly natural, healthy human, which may be expressed
in a number of ways, including aggressively, non-assertively, assertively or
not at all
...
Aggression is
a behavioural style of expression
...
Recognize and allow yourself to believe that anger is a natural healthy, nonevil human feeling
...
You
needn't fear your anger
...
Remember that you are responsible for your own feelings
...

3
...
Anger can be
expressed assertively
...
Learn to relax
...

5
...

6
...
Deal with issues when they arise, when you feel the
feeling - not after hours/days/weeks of "stewing" about it
...

You and those around you will appreciate it
...
Sathvic : when a person without any attachment to the feeling of anger and
without caring for the result for himself, but for the good of the person, to
correct him and to offer the whole process to the Divinity in the self or
outside and not feeling the responsibility of the doer
...
Rajasic : where a person wants to correct the evil in the other as well as for
the appreciation and does not surrender the process to God
...

3
...

Dealing with another's anger : When confronted with a direct verbal putdown, the following four steps are valuable 1
...

2
...

3
...

4
...

For example, " I apologize for brushing against you
...
You're obviously upset, but I do not like you calling me
names

or

yelling

at

me
...
"

The best way to handle an indirect put-down is to first ask for more
information : "What are you saying?", "What do you mean?" And in case of
a non-verbal put-down, it is best to attempt to get the person to use words
instead of gestures
...
3

ASSERTIVE BEHAVIOUR: COMPONENTS AND TECHNIQUES

583

Have you ever wondered how some people manage to be in perfect control
of their lives? Their feelings, relationship, in fact their whole personality
seems to be in perfect concord
...

This is not to say that they are the models of perfection, or that they do not
undergo any stress whatsoever, but invariably these individuals will have
evolved some assertive ways of coping with people and situations without
getting unduly anxious
...

• Behaviour which enables a person to act in his or her own best interest, to
stand up for herself or himself, without undue anxiety, to express honest
feeling comfortably, or to exercise personal rights without denying the
rights of others, we call Assertive Behaviour
...

• To act in one's own best interest : refers to the capacity to make life
decisions (career, relationship, life style, time activities), to take initiative
(start conversations, organize activities), to trust one's own judgement, to
set goals and work to achieve them, to ask for help from others, to
comfortably participate socially
...


584

• To express honest feelings comfortably : means the ability to disagree, show
anger, to show affection or friendship, to admit fear or anxiety, to express
agreement, or support, to be spontaneous, all without painful anxiety
...

• To not deny the rights of other: is to accomplish the above personal
expressions, without unfair criticism of others, without hurtful behaviour
towards others, without name-calling, without intimidation, without
manipulation, without controlling others
...

Barriers to Assertiveness
What are some of the barriers to asserting oneself? Alberti and Emmons say, "
...
We have found while helping thousands of people to learn to express
themselves more effectively, that there are three significant barriers to self
assertiveness:
1
...

2
...

3
...

However, research had shown that learning to make assertive responses would
inhabit or weaken the anxiety previously experienced in specific interpersonal
relations
...
As children
we had no doubt about these things
...

As a first step towards becoming assertive, we should become aware of our
being assertive individual
...
For those who believe that they do not have the right to lead a free,
independent life, and still enjoy lasting and good interpersonal relationships,
they would be advised to consider the following bill
...

The following table will help you to reaffirm your SELF as being of the
greatest value!
Table: Assertive Behaviour at a Glance
• You have the right to be treated with respect and dignity
...

• You have the right to be listened to and taken seriously
...

• You have the right to make mistakes and be responsible for them
...

• You have the right to say : " I don't understand
...

• You have the right to change your mind
...

• You have the right to get what you pay for
...

• You have the right to practice your own religion
...

• You have the right to acquire knowledge
...

• Finally, You have the right to do anything so long as it does not violate the
rights of others
...

You Body :Developing an assertive body image
...
Your style of emotional expression, posture,
facial expressions and voice quality are all tremendously important to you in

587

becoming assertive
...
Methodically check yourself
from head to toe, measuring yourself on a scale of Assertiveness
...
Eye Contact : While addressing another person, where do you look? If you
look directly at the person as you speak, it helps to communicate you
sincerity and to increase the directness of your message
...
Women
often have a problem of making eye contact with another person, because
many of us have been taught that it is more feminine to look away or look
down
...

However, making relaxed eye contact is essential when you want to appear
assertive and interested and shows respect for the other person
...

Look at their eyes, then perhaps look away for a few seconds, or drop your
gaze slightly so that you are focusing on their mouth, as they speak to you
...
Are you listening better? Are you
conveying more interest and receiving more interest in what you are
saying?
2
...
Effective assertion
requires an expression that agrees with the message
...
With a greater awareness of the feeling
in your face, you can begin to more consciously control your facial
expression to become more natural
...
Body Posture : A significant increase in personalizing the conversation,
occurs from a slight turn of the torso, say 30 to 45 degrees towards the
other person
...
An obvious
example of this is seen in the relationship between a tall adult and a small
child; the adult who is thoughtful enough to bend to the child's height will
find a considerable difference in the quality of communication
...

4
...
However, gesturing must not be erratic or nervous
...
Voice, Tone, Inflection and Volume : The way we use our voices is a vital
element in our communication
...
Contents : What you say is of course important, but honesty and
spontaneity of expression is much more important
...
People, who hesitate because they don't know what to say, should
make a practice of saying something, to express their honest feelings at the
time
...

fluency,

timing,

listening,

distance/physical contact, even weight and physical appearance, are
considered as factors in developing assertiveness
...

- Anon
...
Broken Record : or Persistence
...
By practicing to
speak as if we were a broken record, we learn to be persistent and stick to
the point of the discussion, to keep saying what we want to say, and to
ignore all side issues brought up by the person we assert ourselves to
...

2
...
First you have to practice
listening to the clues other people give you about themselves
...


The second skill is self-disclosure
...

It allows the social communication to flow both ways
...

3
...
It is a very effective skill for desensitizing you to criticism and
actually reducing the frequency of criticism from others
...

But fogging should be used with negative inquiry
...
Instead, you break the
manipulative cycle by actively prompting more information form the
critical person in a low-key, unemotional manner
...
Negative Assertion : A skill that teaches acceptance of your errors, and
faults without having to apologize by agreeing with hostile or constructive
criticism of your negative qualities
...

5
...


591

20
...


•

May result in desire to escape or flee the attack
...


Aggressive Behaviour
•

Standing up for own rights, while violating rights of other people
...


•

Expressing own needs, wants or opinions, which may be honest or
dishonest, in inappropriate ways
...


•

Expressing needs, wants, opinions, feelings and beliefs in direct, honest and
appropriate ways
...


592

Aim of assertive behaviour - satisfy needs or wants of both parties
...


•

Standing up for own rights in a way, which can be disregarded
...


•

Failing to express honestly needs, wants, opinions, feelings and beliefs
...

Assertiveness
Interpersonal skills are essential, if we are going to be effective in handling
our:
•

Colleagues

•

Subordinates

•

Superiors

•

Clients

When dealing with other people, we must avoid being:
•

Aggressive or

•

Submissive

Aggression leads to conflict
...


593

Submissiveness means that we never tell the other person what we intend, and
what they need to know, if they are to understand our viewpoint properly
...
We must
seek to be assertive
...

When you want to be assertive:
•

Tell the other person exactly what you feel
...


•

Explain clearly the effect which their behaviour is having on you
...


•

Keep your voice firm
...


•

Avoid becoming emotional
...


594

•

Accept at least 50 per cent responsibility for resolving situation
...


•

Pause, think, ''How would I like to be told?'' ''In what form would I find it
easiest to receive the information?''

•

Be calm
...


•

Ask questions without implying judgement
...


•

Allow the other person freedom to develop his/her views, even though you
may disagree
...


•

Listen, before putting your own views
...


•

Avoid responding to angry, hurtful comments
...
Is it supportive?

•

Persevere!

•

Reject''Win/Lose''

•

Aim for''Win/Win''

595

20
...
What is interpersonal behaviour? Discuss the important dimensions
of interpersonal behaviour with examples
...
“There are some essentials of an assertive personality”
...

3
...
Define behaviour
...
Discuss the role of anger and the difference between anger and
aggression
...
“Human interaction is the crux of our life and society”
...


20
...
Luthans
...
, “Organizational Behaviour”
2
...
Dorothy Marcic, “Organizational Behavior: Experience and Cases”
Fifth Edition
4
...
Richard L
...


596

COURSE: MANAGEMENT CONCEPTS AND ORGANIZATIONAL BEHAVIOUR

COURSE CODE: MC-101
LESSON: 21

AUTHOR:
VETTER:

SURINDER SINGH
DR
...


STRUCTURE:
21
...
2
21
...
4
21
...
6
21
...
8
21
...
10
21
...
12
21
...
1 INTRODUCTION
The world is changing rapidly but the changes of the recent past have been
unprecedented in the history of human civilization
...
Due to the globalisation process more firms have
started moving out from their domestic to international markets
...
These cross-cultural interactions have changed the mindset of
people in general and the younger ones in particular
...
attaining the managerial effectiveness, Managerial
effectiveness which is the ability
...


21
...
Therefore, we need to clarify these
terms: affect, emotions, and moods
...
It’s an umbrella concept that encompasses both emotions and moods
...
Finally,
moods are feelings that tend to be less intense than emotions and that lack a
contextual stimulus
...
They are
object specific
...
Moods, on the other hand, aren't
directed at an object
...
So when a work colleague criticizes you for the way you spoke
to a client, you might become angry with him
...
But later in the day, you might find
yourself just generally dispirited
...
This affective state describes a
mood
...
Every employee expends physical and mental
labour when they put their bodies and cognitive capabilities, respectively, into
their job
...
This is when an employee
expresses organizationally desired emotions during interpersonal transactions
...

Airline flight attendants, for instance, are expected to be cheerful, funeral
counselors sad, and doctors emotionally neutral
...
You’re expected, for
example, to be courteous and not hostile in interactions with co-workers
...
Almost
every great speech, for instance, contains a strong emotional component that stirs
feelings in others
...


21
...
Not surprisingly,
this is a frequent occurrence
...
Maybe you consider their personality abrasive
...
Regardless, your
job requires you to interact with these people on a regular basis
...
It can help you to better understand emotions if you separate

599

them into felt versus displayed
...

In contrast, displayed emotions are those that are organizationally required and
considered appropriate in a given job
...
“The
ritual look of delight on the face of the first runner-up as the new Miss Universe is
announced is a product of the display rule that losers should mask their sadness
with an expression of joy for the winner Similarly, most of us know that we're
expected to act sad at funerals regardless of whether we consider the person's
death to be a loss, and to pretend to be happy at weddings even if we don't feel
like celebrating
...
And the salesperson that hasn’t learned
to smile and appear friendly, regardless of his or her true feelings at the moment,
isn’t typically going to last long on most sales jobs
...
In fact, many people have problems
working with others simply because they naively assume that the emotions they
see others display is what those others actually feel this is particularly true in
organizations, where role demands and situations often require people to exhibit
emotional behaviors that mask their true feelings
...
4 EMOTION DIMENSIONS
There are many emotions
...
These are
discussed as follows:
Variety:

There have been numerous efforts to limit and define the fundamental

or basic set of emotions
...
One factor that has strongly shaped
what is and isn't listed in this basic set is the manner in which emotions were
identified
...
1)
...


Exhibit 21
...
2
Exhibit 21
...
The closer any two emotions are to each other on this
continuum, the more people are likely to confuse them
...
e
...
, I get angry after receiving a poor performance appraisal
...
I'm sad about one
of my co-workers leaving to take a new job in another city
...
I'm disgusted with the way my supervisor
treats the women on our team
...

Intensity: People give different responses to identical emotion-provoking stimuli
...
Other times it
is a result of the job requirements
...
You undoubtedly know individuals who almost never show their
feelings
...
They never show rage
...
When they are
happy, they are ecstatic
...
And two
people can be in the exact same situation with one showing excitement and joy,
while the other is calm and collected
...
For instance, air traffic controllers and trial judges are
expected to be calm and controlled, even in stressful situations
...

Frequency and Duration: Emotional labor that requires high frequency or long
durations is more demanding and requires more exertion by employees
...


21
...
Psychologists call this alexithymia (which is
Greek for "lack of emotion")
...
Their own feelings make them
uncomfortable, and they're not able to discriminate among their different
emotions
...
Does this inability to express emotions and read others mean
that people who suffer from alexithymia are poor work performers? Not
necessarily
...
These people are not well suited to sales and managerial
positions
...


21
...
In contrasting the genders,
women show greater emotional expression than men; they experience emotions
more intensely; and they display more frequent expressions of both positive and
negative emotions, except anger
...
expressing emotions
...

Why do they differ? Three possible answers have been suggested
...
Men are
taught to be tough and brave; and showing emotion is inconsistent with this
image
...
This may
account for the perception that women are generally warmer and friendlier than
men
...
A second explanation is that
women may have more innate ability to read others and present their emotions
than do men
...


21
...
Similarly, what's appropriate in one
country is often inappropriate in another
...
Every organization defines
boundaries that identify what emotions are acceptable and the degree to which
they can be expressed
...
These can be
expressed as follows:
Organizational Influences: If you can't smile and appear happy, you're unlikely
to have much of a career working at a Disney amusement park
...
” There is no
single emotional "set" sought by all organizations
...
For instance, one such condition might be a high-status
member of a group conveying impatience with a low-status member
...

Again, there are exceptional conditions in which this isn't true-for example, a
brief grieving over the sudden death of a company's CEO or the celebration of a
record year of profits
...

Cultural Influences: Cultural norms in the United States dictate that employees
in service organizations should smile and act friendly when interacting with
customers
...
In Israel, smiling by supermarket cashiers is seen as a sign of inexperience, so cashiers are encouraged to
look somber
...
The foregoing examples
illustrate the need to consider cultural factors as influencing what is or aren’t
considered as emotionally appropriate
...
And cultures differ in terms
of the interpretation they give to emotions
...
8 THE CONCEPT OF EMOTIONAL INTELLIGENCE

605

For decades, a lot of emphasis has been put on certain aspects of intelligence such
as logical reasoning, math skills, spatial skills, understanding analogies, verbal
skills etc
...
But the
researchers were puzzled by the fact that while IQ could predict the academic
performance and to some degree, the professional and personal potential; yet there
was something missing' in the equation
...
The discovery of cognitive skills and abilities though
appears to be outside the scope of IQ yet is unquestionably important for
...
It states
that high levels of emotionally intelligent leaders create a climate in which
information sharing, trust, health, risk-taking, and learning flourish
...
Scales fell from the eyes of managers when
they heard the of emotional intelligence concept as coined by two American
psychologists, Peter Salovey of Yale and John Mayer of the University of New
Hampshire
...
But the entire storm of controversy on the subject came to
an end with the Daniel Goleman's bestseller ‘Emotional Intelligence: Why It can
Matter More than IQ’
...
Though emotional intelligence might have marked its presence as
an academic catch phrase,
...
The concept emotional
intelligence came out of the term emotion, which refers to a feeling with its
distinctive thoughts, psychological and biological states, and ranges of
propensities to act
...
There can be a
number of emotions like anger, sadness, fear, enjoyment, surprise, love disgust,
and shame etc
...
e
...
In the words of Daniel Goleman
emotional intelligence, "The ability to motivate oneself and persist in the face of
frustration; to control impulse and delay gratification; to regulate one's moods and
keep distress from swamping the ability to think; to empathize and
...
In
fine the concept of emotional intelligence is an umbrella term that captures a
broad collection of individual skills and dispositions, usually referred as soft skills
or inter or intra personal skills that are outside' the traditional areas of general

607

intelligence and technical or professional skills
...

These shape the way we interact with ourselves and with others
...
Emotional intelligence is the combination of skills,
understandings and habits that shape the ways we think, feel and act
...
e
...
The rational mind is centered in the neo-cortex, the: Outer part of
the brain and allows human beings to plan, learn, remember, love, care and also to
make moral and ethical distinctions
...
Emotional competency is
the learned capability that leads to outstanding performance in life
...
It is now
believed that your feelings take precedence over your thoughts in making
decision, because a rational mind take littler longer to register and respond than
the emotional mind
...
The ability of an individual to monitor
one's own and other's feeling and emotions, to discriminate among them and to

608

use the available information in steering one's own as well as other's behavior has
attained much significance - even in the information age
...
The reason for that lies in what scientists
calls the open loop nature of the brain limbic system, our emotional center
...
Our limbic system's open-loop design lets other
people change our very physiology and hence, our emotions
...
Thus the
entire phenomenon creates a strong link between emotional intelligence and
managerial effectiveness irrespective of the managerial style
...
It's composed of five dimensions:
Self-awareness: The ability to be aware of what you're feeling
...

Self-motivation: The ability to persist in the face of setbacks and failures
...

Social skills: The ability to handle the emotions of others
...
8
...
8
...


•

Inclusion/tolerance

•

Problem solving

•

Team building

•

Community

"Emotional intelligence involves the ability to monitor one's own and others'
feelings and emotions, to discriminate among them and to use this information
to guide one's thinking and actions
...
8
...
8
...
Learn how to turn daily conflicts
into opportunities to practice valuable lifelong skills such as anger management,
listening, oral communication and critical thinking
...
9 PRINCIPLES OF EMOTIONAL INTELLIGENCE
•

Be aware of one's own feelings and those of others

•

Show empathy and understand others' points of view

•

Regulate and copy positively with emotional and behavioural impulses
...
10 IMPORTANCE OF EMOTIONAL INTELLIGENCE
Knowledge of emotions can help a manager to better understand the selection
process in organizations, decision-making, motivation, leadership, interpersonal
conflict, and deviant workplace behaviors in the following ways:
Ability and Selection: People who know their own emotions and are good at
reading others’ emotions may be more effective in their jobs
...
Further, the
employer should know the EI and consider it as a factor in selection, especially in
jobs that demand a high degree of social interaction
...
On the other hand, positive
emotions can increase problem solving and facilitate the integration of
information
...
" People use emotions as well as
rational and intuitive processes in making decisions
...

Motivation: Motivation theories basically propose that individuals "are motivated
to the extent that their behavior is expected to lead to desired outcomes
...
" But people aren't cold, unfeeling machines
...
Moreover, when you
seem
...
People who are engaged in their work “become physically,
cognitively, and emotionally immersed in the experience of activity, in the pursuit
of a goal”
...
And if we focus only on rational calculations of inducements and
contributions, we fail to be able to explain behaviors such as the individual who
forgets to have dinner and works late into the night, lost in the thrill of her work
...
In fact, the expression of emotions in speeches is often the
critical element that results in individuals accepting or rejecting a leader’s

613

message
...
Politicians, as a case in point, have learned to show
enthusiasm when talking about their chances for winning an election, even when
polls suggest otherwise
...
When new visions are offered, especially when they contain
distant or vague goals, change is often difficult to accept
...

Interpersonal Conflict: Few issues are more intertwined with emotions than the
topic of interpersonal conflict
...
A manager’s success in trying to resolve
conflicts, in fact, is often largely due to his or her ability to identify the emotional
elements in the conflict and to get the conflicting parties to work through their
emotions
...

Deviant Workplace Behaviors: Negative emotions can lead to a number of
deviant workplace behaviors
...
These
actions are called employee deviances
...
g
...
g
...
g
...
g
...
Many of these deviant
behaviors can be traced to negative emotions
...
It can lead to hateful deviant behaviors
...


21
...
Managers who understand the
role of emotions will significantly improve their ability to explain and predict
individual behavior
...
That's probably why organizations, for the most part, try to extract
emotions out of the workplace
...
First, emotions can increase arousal levels, thus acting as motivators to
higher performance
...
So, for instance, the ability to effectively manage
emotions in leadership and sales positions may be critical to success in those
positions
...
The more complex a task, the lower the level of arousal that can be tolerated
without interfering with performance
...
Given that the trend is toward jobs becoming more complex, you can
see why organizations are likely to go to considerable efforts to discourage the
overt display of emotions-especially intense ones-in the workplace
...
12 SELF-TEST QUESTIONS
7
...


Explain the types of emotions and their role in organisations
...


Describe some of the inherited characteristics of behaviour
...


10
...


Describe the fundamentals and principles of EI
...
13 SUGGESTED READINGS
1
...

2
...


3
...
Mullins, Management and Organisational Behaviour (2nd ed
...


4
...
), Irvin/Tata McGraw Hill
...


Stephen P
...
), Prentice Hall India
...


Earnest R
...


617

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Author: Dr
...
M
...
Turan

STRESS MANAGEMENT
Objective:

The objective of this lesson is to make the students learn about the
concept of stress and its sources and effects and ways to manage
stress
...
1 Introduction to the Concept
22
...
3

The Nature of Stress

22
...
5 Managing Stress at Workplace
22
...
7 Self Assessment Questions
22
...
1 INTRODUCTION TO THE CONCEPT
The concept of stress denotes physical and mental revelation to prevailing
within the mental environment of a human being
...
Stress may be
classified in three ways as shown below:
Low stress

Optimum stress

High stress

Performance is traditional

high motivation high

area of task is novel

lesser uncertainty known

morale high and satisf-

uncertainty of operation

environment narrow span

actory performance

and result unknown

of control

high supervision and

environment wide span

moral support

of control

618

Stress is inevitable for every individual
...
Stress
and strain are the two sides of the same coin
...


A close nexus may be established among the variables time, stress and
productivity
...
Increase in stress warrants entailing more time and reduction
in productivity
...


punishment,

with

with

customers,
inter-personal

perceptional

career

of existing staff
...


reward traveling

619

Under current of ego battles between bosses can cause stress for
subordinates and peers
...
This is a case
of inter personal and intra-personal conflict and organizational behavior
leading to stress
...
2

SOURCES OF STRESS
Stress and strain exert serious pressure, both mental and physical, upon the
business executives
...


1
...


There are certain jobs dominated by male folk such as

management and the female occupation such as secretarial work
...
But we generally conceive it as a
mental state4 of affairs but under extra caution and alertness
emerging from work place environment, psychological preparedness
to perform a given business task from a given table, amongst a group
of fellow workers, with simultaneous accountability to higher
authority or boss and the responsibility of extracting desired work
output from the subordinates
...
Here the stress has emerged from gender diversity in the work
place often resulting in sexual harassment
...


Harassment (T
...
The Supreme
Court in a landmark judgment on 13 August, 1997 held that sexual
harassment is a cognizable offence and punishable under law
...


Uncertainties and changes in future: The business enterprises
under WTO regime have been exposed to a hung in balance (HIB)
situation where no body can predict accurately as to what is stored in
future
...
To enable the business
executives to bear the burden of stress arising from uncertainties and
changes, we require a mix of prescriptions
...


Besides formulating strategies and plans, the corporate

entities are supposed to translate plans into strategic business
decisions
...


Effectiveness vs
...
Effectiveness denotes accomplishment of goals and
objectives while efficiency hints at cost reduction
...
Tension and stress would definitely mount
on the face of the employees
...

4
...
It
would also high light the expectation from the employees ahead of
doing the work and thus helps in reducing work stress
...


Often stress helps to bring out the best in the

individual
...

The task of the management in an organization is to acknowledge the
constraints emerging from strain and draw up suitable action plan to
overcome the stress
...
Management ought to create an environment to reduce or prevent job
stress on an individual or an entity, such as prioritization of activities,
including better time management
...


Other

techniques include role analysis, role identification, career counseling
services, leisure and recreational facilities, motivating with monetary
incentives, employee assistance programme (EAP), workshop on stress and
strain, display of video cassette and film show
...


22
...
In reality, however, stress
is complex and often misunderstood
...


Stress has been defined in many ways, but most definitions say that stress is
caused by a stimulus, that the stimulus can be either physical or
psychological, and that the individual responds to the stimulus in some
way
...


Given the underlying complexities of this definition, we need to examine its
components carefully
...
As we discuss
presently, people may adapt to stressful circumstances in any of several
ways
...
This stimulus, generally called a
stressor, is anything that induces stress
...
Finally, the demands the stressor places on the
individual must be excessive for stress to result
...
The point
is simply that a person must perceive the demands as excessive or stress
will not result
...
Hans Selye
...


623

The GAS begins when a person first encounters a stressor
...
" At this point, the person may feel some degree of panic
and begin to wonder how to cope
...

Her first reaction may be "How will I ever get this done by tomorrow?"

If the stressor is too extreme, the person may simply be unable to cope with
it
...
The manager with the long report to write may calm down, call
home to tell her kids that say she's working late, roll up her sleeves, order
out for dinner, and get to work
...


Often, the resistance phase ends the GAS
...
On the other hand, prolonged
exposure to a stressor without resolution may bring on phase 3 of the GAS:
exhaustion
...
For example, the manager may fall asleep fail to finish
the report
...
Selye also pointed out that the sources of stress
need not be bad always
...
So can getting a
promotion, gaining recognition, getting married and similar "good" things
...
As we will see later, eustress can
lead to a number of positive outcomes for the individual
...
Called distress, this is what
most people think of when they hear the word stress
...
As the term suggests, this form of stress generally
results in negative consequences for the individual
...


But as you read and study the

chapter, remember that stress can be either good or bad
...


Individual Differences and Stress
We have already alluded to the fact that stress can affect different people in
different ways
...

The most fully developed individual difference relating specifically to stress is the
distinction between Type A and Type B personality profiles
...
They first got the idea when a worker repairing the
upholstery on their waiting-room chairs noted that many of the chairs were worn
only on the front
...
They eventually concluded that
their patients were exhibiting one of two very different types of behaviour
patterns
...
They labeled these two behaviour patterns Type A and
Type B
...
Moreover, this person is
likely to be aggressive, impatient, and highly work oriented
...


The extreme Type B person, in contrast, is less competitive, is less devoted
to work and has a weaker sense of time urgency
...
She or he has more confidence and is able to work at a
constant pace
...
In reality, however, this is not necessarily
true -- the Type B person is not necessarily any more or less successful than
the Type A
...
For example,
Type A people may alienate others because of their drive and may miss out
on important learning opportunities in their quest to get ahead
...


Friedman and Rosenman pointed out that people are not purely Type A or
Type B; instead, people tend toward one or the other type
...


Friedman and Rosenman's initial research on the Type A and Type B
profile differences yielded some alarming findings
...
In recent years, however, follow-up research
by other scientists has suggested that the relationship between Type A
behavior and the risk of coronary heart disease is not all that
straightforward?

Although the reasons are unclear, recent findings suggest that Type A's are
much more complex than originally believed
...

Any one of these characteristics or a combination of them can lead to heart
problems
...


Finally, in one study that found Type A's to actually be less susceptible to
heart problems than Type B's, the researchers offered and explanation
consistent with earlier thinking: Because Type A's are compulsive, they
seek treatment earlier and are more likely to follow their doctors' orders!

Hardiness and Optimism
Two other important individual differences related to stress are hardiness
and optimism
...
Hardiness is person's ability to cope with
stress
...
Such people are seen relatively
unlikely to suffer illness if they experience high levels of pressure and
stress
...


Another

potentially

important

individual

difference

is

optimism
...
A popular expression used to convey this idea concerns the glass
half filled with water
...
Optimism is also related to positive and negative affectivity
...
They will be able
to see the positive characteristics of the situation and recognize that things
may eventually improve
...


Cultural differences also are important in determining how stress affects
people
...
The major causes of stress also
differ across countries
...


In South Africa, long work hours more

frequently lead to stress
...


Other research suggests that women are perhaps more prone to experience
the psychological effects of stress, whereas men may report more physical
628

effects
...
It would therefore be premature to draw rigid
conclusions about how different types of people handle stress
...


It has mainly two broad categories:

organizational stressors and life stressors
...


Organizational Stressors
Organizational stressors are various factors in the workplace that can cause
stress
...


Task Demands Task demands are stressors associated with the specific job
a person performs
...


The jobs of surgeons, air traffic controllers, and professional

football coaches are more stressful than those of general practitioners,
airplane baggage loaders, and football team equipment managers
...
S
...

Towards the middle of the distribution are jobs such as mechanical
engineer, chiropractor, technical writer, and bank officer
...

Beyond specific task-related pressures, other aspects of a job may pose
physical threats to a person's health
...
Security is
another task demand that can cause stress
...
threats to job
security can increase stress dramatically
...
This has been observed at a
number of organizations, including AT & T, Safeway, and Digital
Equipment
...
Overload occurs when a person
simply had more work than he or she can handle
...
We should note that the opposite of overload may
also be undesirable
...

Physical Demands The physical demands of a job are its physical
requirements on the worker; these demands are a function of the physical
characteristics of the setting and the physical tasks the job involves
...


Working outdoors in extreme

temperatures can result in stress, as can working in an improperly heated or
cooled office
...
Office design also can be a problem
...
Too much interaction
may distract a person from his or her task, whereas too little may lead to
boredom or loneliness
...


630

Role Demands

Role demands also can be stressful to people in

organizations
...
As such, it has both formal
(i
...
, social and implicit) requirements
...
They
transmit these expectations both formally and informally
...
However, "errors" can creep into this process,
resulting in stress-inducing problems called role ambiguity, role conflict,
and role overload
...
If your instructor tells you to
write a term paper but refuses to provide more information, you will
probably experience ambiguity
...
In
work settings, role ambiguity can stem from poor job descriptions, vague
instructions from a supervisor, or unclear cues from coworkers
...


Role

ambiguity can thus be a significant source of stress
...
One common form is
interrole conflict -- conflict between roles
...
Intra-role conflict may occur when the person
gets conflicting demands from different sources within the context of the
same role
...
At the same time, her
631

subordinates may indicate that they expect her to get the rules changes
...


Intra-sender conflict occurs when a single source sends clear but
contradictory message
...
Person-role conflict results from
a discrepancy between the role requirements and the individual's personal
values, attitudes, and needs
...
Role conflict of all varieties is of particular
concern to managers
...
When a
manager gives an employee several major assignments at once while
increasing the person's regular workload, the employee will probably
experience role overload
...
For example, a person
trying to work extra hard at his job, run for election to the school board,
serve on a committee in church, coach Little League baseball, maintain an
active exercise program, and be a contributing member to his family will
probably encounter role overload
...
A final set of organizational stressors consists of
three

interpersonal

demands:

Group

pressures,

leadership,

and

interpersonal conflict
...


For
632

instance, as we have noted before, it is quite common for a work group to
arrive at an informal agreement about how much each member will
produce
...
In individual who feels a
strong need to vary from the group's expectations (perhaps to get a pay
raise or promotion) will experience a great deal of stress, especially if
acceptance by the group is also important to him or her
...
Suppose an employee needs a great
deal of social support from his leader
...
This employee will
probably feel stressed
...


Her boss is very autocratic and refuses to consult

subordinates about anything
...


Finally, conflicting personalities and behaviors may cause stress
...
For example, a person with an
internal locus of control - that is, who always wants to control how things
turn out - might get frustrated working with an external person who likes to
wait and just let things happen
...
The working
with Diversity box describes another example of how interpersonal
demands - in the form of harassment - can result in stress
...
Life stressors generally are categorized in
terms of life change and life trauma
...
A life change is
any meaningful change in a person's personal or work situation
...
The study summarizes their findings on major
life change events
...


Life Trauma
...
A life trauma is any upheaval in an
individual's life that alters his or her attitudes, emotions, or behaviour
...
At the same time, the
person will obviously also experience emotional turmoil during the actual
divorce process
...


Major life traumas that may cause stress include marital problems, family
difficulties, and health problems initially unrelated to stress
...
Her dismay over the news may translate into stress
at work
...


22
...
As we already noted, if the
stress is positive, the result may be more energy, enthusiasm, and
634

motivation
...
Referring back to our discussion in this lesson, we see that stress
can produce individual effects, organizational effects, and burnout
...
For example, alcohol abuse is shown as an individual effects,
but it also affects the organization the person works for an employee who
drinks on the job may perform poorly and create a hazard for others
...


Individual Effects
The individual effects of stress, then, are the outcomes that mainly affect
the individual
...
Stress may
produce behavioral, psychological, and medical effects
...
One such behavior is smoking
...
There is also evidence that alcohol and drug abuse are
linked to stress, although this relationship is less well documented
...

Psychological Effects

The psychological effects of stress relate to a

person's mental health and well-being
...
Stress may also lead to family problems and sexual
difficulties
...
Heart disease and stroke, among other illnesses, have been
linked to stress
...


Organizational Effects
Clearly, any of the individual effects just discussed can also affect the
organization
...
These include decline in performance, withdrawal, and
negative changes in attitudes
...
For operating workers, such a decline can translate
into poor-quality work or a drop in productivity
...


Withdrawl Withdrawal behaviors also can result from stress
...
People who are having a hard time coping with
stress in their jobs are more likely to call in sick or consider leaving the
organization for good
...
A manager may start missing deadlines or taking longer lunch
breaks
...
As noted above, employee violence is a
636

potential individual consequence of stress
...


Attitudes Another direct organizational effect of employee stress relates to
attitudes
...

As a result, people may be more prone to complain about unimportant
things, do only enough work to get by, and so forth
...
Burnout is a general feeling of exhaustion that develops
when a person simultaneously experiences too much pressure and has too
few sources of satisfaction
...
First, people with high
aspirations and strong motivation to get things done are prime candidates
for burnout under certain conditions
...


In such a situation, the individual is likely to put too much himself or
herself into the job
...
The most likely effects of this situation are
prolonged stress, fatigue, frustration, and helplessness under the burden of
overwhelming demands
...
Loss of selfconfidence and psychological withdrawal follow ultimately
...
5

MANAGING STRESS IN THE WORKPLACE
Given that stress is widespread and so potentially disruptive in
organizations, it follows that people and organizations should be concerned
about how to manage it more effectively
...
Many
strategies have been developed to help manage stress in the workplace
...


Exercise:

Exercise is one method of managing stress
...

More directly, research has suggested that people who exercise regularly
feel less tension and stress, are more self-confident, and show greater
optimism
...


Relaxation: A related method of managing stress is relaxation
...

Proper relaxation is an effective way to adapt
...
One way to relax is to take regular vacations
...
People can also relax while
on the job
...
A popular way of resting is to sit
quietly with closed eyes for ten minutes every afternoon
...


Time Management:

Time management is often recommended for

managing stress
...
One popular
approach to time management is to make a list every morning of the things
to be done that day
...
Then, of course, you do the things on the list in
their order of importance
...
It also encourages delegation of less
important activities to others
...


Role Management: Somewhat related to time management is the idea of
role management, in which the individual actively works to avoid overload,
ambiguity, and conflict
...
Instead, ask for clarification
from your boss
...

As simple as saying "no" might sound, a lot of people create problems for
themselves by always saying "yes"
...
Sometimes, of course, we have no choice but to accept
an extra obligation (if our boss tells us to complete a new project, we will
probably have to do it )
...


Support Groups: A final method for managing stress is to develop and
maintain support groups
...
Going out after
work with a couple of coworkers to a basketball game, for example, can
help relieve the stress that builds up during the day
...

Support groups can be particularly useful during times of crisis
...
It may help her
tremendously if she had good friends to lean on, be it to talk to or to yell at
...

There are two different rationales for this view
...
The other is that workers experiencing lower levels of
harmful stress will function more effectively
...


Institutional Programs: Institutional programs for managing stress are
under taken through established organizational mechanisms
...
Shift
work, in particular, can cause major problems for employees, because they
constantly have to adjust their sleep and relaxation patterns
...


The organization's culture also can be used to help manager stress
...
In the long run, such norms can cause major stress
...


640

Finally, supervision can play an important institutional role in managing
stress
...
If made aware of
their potential for assigning stressful amounts of work, supervisors can do a
better job of keeping workloads reasonable
...
A collateral
stress program is an organizational program specifically created to help
employees deal with stress
...
More and more companies are developing their own programs or
adopting existing programs of this type
...

The Mastering Change box provides other examples
...
These programs
attack stress indirectly by encouraging employees to exercise, which is
presumed to reduce stress
...
Still, more and more companies are
exploring this option
...
L
...


Finally, organizations try to help employees cope with stress through other
kinds of programs
...
Other companies
use programs promoting everything from humor to massage as antidotes for
stress
...
Thus, managers must take steps to ensure that
641

any organizational effort to help employees cope with stress is at least
reasonably effective
...
6

SUMMARY
Stress is a person's adaptive response to a stimulus that places excessive
psychological or physical demands on that person
...
Two important forms of stress
are eustress and distress
...
Initial evidence suggested that Type A's are more susceptible
to coronary heart disease, but recent findings provide less support for this
idea
...


Stress can be caused by many factors
...

Life stressors include life change and life trauma
...


Individual effects can include behavioral,

psychological, and medical problems
...


Burnout is

another possibility
...

Organizations use both institutional and collateral programs to control
stress
...
When
these dimensions are interrelated, individuals must decide for themselves
which are more important and how to balance them
...
7

SELF ASSESSMENT QUESTIONS
1
...

2
...

3
...
Can a person who is a Type A change? If so, how?
5
...
Is an organizational stressor or a life stressor likely to be more powerful?
7
...
Do you agree that a certain degree of stress is necessary to induce high
energy and motivation?

9
...
8

SUGGESTED READINGS
6
...
M
...
Luthans
...
, “Organizational Behaviour”

643

8
...
Dorothy Marcic, “Organizational Behavior: Experience and Cases”
Fifth Edition
10
...
Richard L
...


644

Subject: Management Concepts and Organizational Behaviour
Subject Code: MC-101

Lesson No: 23

Author: Dr
...
B
...
Punia

CONFLICT MANAGEMENT
Objective:

The objective of this lesson is to make the students learn about the
concept of conflict management, objectives, factors responsible for
conflict, conflict process, and types of conflict
...
1

Concept of Conflict

23
...
3

Managing Conflict

23
...
5

Summary

23
...
7

Suggested Readings

23
...
” Conflict occurs when two or more
people or organizations disagree because their needs, wants, goals, or
values are different
...
However, conflict is not
the end of the world, or your team or group
...
Most of us have been in a
conflict at some point in our lives
...
Many people think of conflict as negative
...
Conflict is negative when it…
• Takes attention away from other activities
• Damages the spirit of the team or an individual
• Divides people and groups, and makes cooperation difficult
• Makes people or group focus on their differences
• Leads to harmful behavior, like fighting or name-calling

But it can be positive or constructive when it…
• Clears up important problems or issues
• Brings about solutions to problems
• Gets everyone involved in solving issues
• Causes real communication
• Release emotion, anxiety, and stress in a positive way
• Helps people learn more about each other and cooperate
• Develops understanding and skills

646

While the definition of conflict and our feelings about it tend to be
negative, conflict itself does not need to be negative! How we manage our
conflict can sway the outcome, our feelings about the way it was handled,
and the people involved conflict
...
2

CONFLICT MANAGEMENT
Conflict management is what we’re doing when we identify and deal with
conflict in a reasonable manner
...
When we resolve issues, we need to
focus on the things we need or desire as a group, and not things needed or
wanted by individuals
...
There are some proven strategies that you can use to
help resolve conflicts within your groups
...


STYLE 1- COLLABORATING
o Why should I collaborate? Cooperation will help everyone
achieve their goals and keep relationships healthy
...

o When should I collaborate?
• Everyone trust each other
• No one wants total decision or resolution power
• Everyone needs to have a part in the decision
647

• Everyone involved will change their thinking as more
information is available
• People need to work through personal hurts and
disappointments
When should I choose another method?

o

• When you need a resolution that won’t take a lot of time
and money
• When some may take advantage of others’ trust
STYLE 2-COMPROMISING
o Why should I compromise? Winning something while losing a
little is sometimes okay
...

o When should I compromise?
• No one at the table has more position or power than anyone else
and everyone is equally committed to the group’s goals
...


648

o An accommodator’s attitude: I will please others by playing down
how important the issue or conflict is in order to protect
relationships
...

o A competitor’s attitude: I must use all of my power to win the
conflict
...

o An avoider’s attitude: I avoid conflict by leaving, avoid, or putting
off discussions
...


One common form is

interrole conflict -- conflict between roles
...
Intrarole conflict may occur when the person
gets conflicting demands from different sources within the context of the
same role
...
At the same time, her
subordinates may indicate that they expect her to get the rules changes
...


Intrasender conflict occurs when a single source sends clear but
contradictory message
...
Person-role conflict results from
a discrepancy between the role requirements and the individual's personal
values, attitudes, and needs
...
Role conflict of all varieties is of particular
concern to managers
...


23
...
You can’t change the way that people behave or
approach conflict, but you can arm yourself with some tools to help you
successfully navigate conflict when not everyone is on the same page
...

1
...

2
...

3
...

4
...


651

• Snipers- These individuals take potshots in meetings but avoid one-onone confrontations
...
Expose the attack; draw them out in public and don’t let social
convention stop you
...
Get other opinions--don’t give in to the sniper’s views
...
Provide the sniper with alternatives to a direct contest
...

1
...

2
...

3
...

• Negativists- These individuals know that nothing new will work;
they’ll disrupt group brainstorming sessions
...
Acknowledge their valid points
...
Describe past successes
...
Avoid “you’re wrong, I’m right” arguments
...

1
...

2
...
Take a time-out or have a private meeting with them
...
Take in answers
from a variety of sources, and gain as much information as you can
...
There are many plans
to choose from, so you can pick the one that is most appropriate for your
situation
...
This to think about includes:
•

Someone has to start the conversation! If neither party is willing to
do so, bring in an outsider who will remain neutral to begin
discussions
...


•

The group must agree on rules for the discussion
...


•

BE ORGANIZED! Location, time, place and materials must all be in
order for conflict management to work
...


• STEP 4: NEGOTIATION
Negotiations should be discussions that include:

653

• Reasons, needs, concerns and motivations for differing positions
• Current options
• Evaluation of all the current options
• Written agreement that documents what everyone understands
• Everyone must be confident that all parties will follow through with
their parts of the agreement
...

• STEP 5: POST-NEGOTIATION
Once negotiation is complete, the group should take the actions they
decided upon
...
Outsiders must be on board with the
terms of the agreements reached during Step 4
...


Reflection : Identify a time when you’ve been in a conflict
...

How can we keep ourselves in check so that we don’t repeat past mistakes?
How can you implement the strategies contained in this lesson in your club
or group?

654

23
...
The effect of disagreement and the methods for resolution
depend on how conflict is managed by the participants
...

Denial or Avoidance
...

Suppression
...
People who use suppression
play down their differences in a belief it is better to "go
along to get along
...
Power is often used to settle
differences
...
Power strategies, however,
result in a win-lose situation
...
Normally the loser will not support the final
decision in the same way as the winner, and may even
attempt to sabotage the decision
...
Using this strategy requires a
third party that is unbiased and is not taking sides to

655

support either party in conflict
...
Some assumptions in using a
third party are:
(1) The third party is trusted or respected by
participants
...

(3) The third party has the power or authority to rule
over the decision
...

(5) All parties believe a just and fair decision will be
rendered
...


Compromise

and

negotiation are often regarded as virtues in our culture
...
"You give
a little, and I'll give a little so we can meet each other
halfway", is a way we have been taught to get along with
others
...
Negotiation reaches an impasse when one or all
participants become set in what they are willing to give
and limits have been reached
...

Integration or Collaboration
...
This method attempts to find an acceptable
solution that does not necessarily require giving and
getting as in a compromised solution
...


23
...
" Later meanings included
"being antagonistic", or "a clash between contradictory impulses within an
individual
...
The issue is how will you deal with or relate to these
differences
...

There are three levels of conflict
...
Level one: intrapersonal conflict is an experience that takes
place within the individual
...
(An example

657

would be a soldier who feels guilty about telling sexual or ethnic jokes but
vigorously participates when friends are around
...
g
...
It exists whenever
people interact or come together to accomplish a common goal or objective
...
Sources of intragroup conflict are often
caused by issues of group cohesion, such as "sticking together, leadership
and status, power or influence and lack of or limited resources
...

Heightened emotions or bad feelings may cloud the real cause of any
conflict and detract soldiers from examining the facts
...
The following is a list of common causes in conflict situations:
• Different values and beliefs
...

• Diverse goals or objectives
...

• Race, ethnicity, or gender differences
...

• Disagreement on how things should be done
...

Many believe that the negative characteristics of conflict occur because
group members become closed minded to any compromises
...
Hostility among group members
is normally followed by an assumption of competition that someone will
win and someone will lose
...

Earlier we stated conflict was neither good nor bad
...
Conflict is constructive when individuals or group
members have a new understanding of the functions of healthy conflict and
avoid the destructive negative forces
...
Additionally we discussed the positive
aspects, components of conflict and how it can contribute to individual and
group problem solving
...
Are there any questions about the methods for resolving conflict?

23
...


Define conflict
...


2
...
Give examples where necessary
...


What are the reasons for not managing the conflict? What can
management do to overcome such reasons?

659

4
...


23
...
Ashwathapa,

K
...

2
...
S
...

3
...
, Organisational Behaviour, Engleward Cliffs, N
...

Prentice-Hall
...
Sekhran, Uma, Organisational Behaviour : Test and Cases,

Tata McGraw Hill Publishing Company Limited, New Delhi,
1989
...
Sharma, R
...
, Organisational Theory and Behaviour, Tata

McGraw Hill Publishing Company Limited, New Delhi,
2000
...
Karam Pal

Vetter: Prof
...
S
...


Structure
24
...
2

Goals and Types of Organizational Change

24
...
4

Change Process

24
...
6

Steps in Managed Change

24
...
8

Resistance to Change

24
...
10 Summary
24
...
12 Suggested Readings

661

24
...

Changes simply mean the alteration of status quo
...
Organizational
changes include changes in attitudes, nature and interest of the employees,
technological and environmental changes related to organization and
changes in rules and regulation affecting the organization
...
The environment includes the social
environment, cultural and religious environment, biological and physical
environment, natural calamities and opportunities, regional environment,
educational and philosophical environment and other external as well as
internal environments of the organization
...
The management of the organization has to be alert
to the changes, which generally affect the working of the organization
...
Often, changes can be managed by
introducing other changes
...


662

Change refers to something which occurs to an organization, a group or an
individual
...

Change means managed change which can be used to solve problems more
readily, learn from experiences, adapt to new conditions and become more
competent
...

It may embrace activities such as amalgamation and bifurcation,
diversification, reorganization, restructuring, change in design or the
introduction of new systems involving the total organization or its sections
...
The change
may be aimed at one or more of such aspects and tends to be correlated
...
Management of
organizational change may encompass anticipation of needs for changes,
decision about the required changes and initiation and implementation of
changes, ensuring that they are stable and lasting in nature
...
2 GOALS AND TYPES OF ORGANISATIONAL CHANGE
Goals of Organizational Change: The organizational change has a
number of goals, explicit and implied
...

Underlying these goals are two basic objectives: changes in an
organization’s level of adaptation to its changing environment, and changes
in the internal behavioural patterns of employees
...
Organizations are
constantly striving to adapt themselves in a better way to their external
environmental conditions
...
Organizational changes are induced in response to these
environmental

conditions
...

There is the objective of achieving modification in behavioural patterns of
employees which arises when an organization’s level of adaptation does not
improve unless its employees behave in a different way in relationship to
each other and their jobs
...

Accordingly, any organizational change, irrespective of whether it is
induced through a new structural design or a training programme, aims to

664

get employees to adopt new behavioural patterns and procedures relating to
each other and their jobs
...

Types of Change: For operational enhancement of the organization there
are various organizational domains where changes can be made
...
Strategic Change: This change is related to change in the mission of the
organization
...
The strategy,
programmes, procedures, budgeting, rules and regulation are designed,
redesigned and restructured according to changes
...
Structural Change: It involves change in the structural designs such as
chart, authority, responsibility, procedures and policies
...
The structural changes have
major impact on the organization’s social climate and members are
required to develop team spirit to make on the spot decision at the point
of operations
...
Process-oriented\Technological Change: These changes are related to
technological development, information processing, automation and use
of robotics in the manufacturing operations
...
The tools and techniques are modified
under the organizational changes
...


665

4
...
They are particular about their skills, selection and
training and performance appraisal
...
These can be developed by closer
interactions with employees and by special behavioural training and
modification sessions
...
Task Approach: Job performed by individuals, motivational process, job
structure and job design are restructured as per changes
...
3 Forces for Change
More and more organizations today face a dynamic and changing
environment
...

There are five specific forces that are acting as stimulants for change
...
Human
resource policies and practices have to change in order to attract and
keep this diverse workforce
...


(ii)

Technology is changing jobs and organizations
...

Sophisticated information technology is also making organizations
more responsive
...
And, as
666

organizations have had to become more adaptable, so too have their
employees
...
Individuals earlier doing
narrow, specialized, and routine jobs are being replaced by work
teams whose members can perform multiple tasks and actively
participate in team decisions
...
In recent years, for instance, interest rates have
become more volatile and the economies of individual countries
have become more interdependent
...

For many mortgage brokerage firms, revenue declines and layoffs
ensue
...
S
...


(iv)

Competition has changed the entire spectrum of business
...
Heightened competition
also means that established organizations need to defend themselves
against both traditional competitors who develop new products and
services, and small, entrepreneurial firms with innovative offerings
...
They will be fast on their feet, capable
of developing new products rapidly and getting them to market
quickly
...
In other words, they
will be flexible
...

667

(v)

World Politics : We have called for seeing OB in a global context
while business schools have been preaching a global perspective
since the early 1980s, no one-not even the strongest proponents of
globalization—could have imagined how world politics would
change in recent years
...
Almost every major
U
...
defense contractor, for instance, has had to rethink its business
and make serious changes in response to the demise of the Soviet
Union
...

Lewin in his three steps model introduced “force-field analysis” to
induce, implement and manage change
...
Kurt Lewin argued that successful change should follow
following steps:

Unfreezing

(i) Unfreezing:

Movement

Refreezing

Lewin believes that the change should not come

as a surprise to members of the organization
...
The management must pave
the way by “unfreezing the situation”, so that members would be
willingly and ready to accept the change
...
It makes
the individuals or organizations aware and prepare for the change
...
These are:- Driving Forces, which direct behaviour away
from the status quo, can be increased
...
- The third alternative is to combine the first two
approaches
...

(iii) Refreezing: It is stabilization of change intervention by balancing
driving and restraining forces
...
At this stage, the individuals learned
new beliefs, feelings and behaviour
...


669

The change process is not a one time application but a continuous
process due to dynamism and ever changing environment
...
The
change forces are known as driving forces and the forces that resist
change are known as restraining forces as shown below:
Driving Forces

Equilibrium

Restraining Forces

Managers who are trying to implement change must analyze this
balance of driving and restraining forces
...


24
...

To make the change more lasting, Kurt Lewin proposed 3 phases of the
change process for moving the organization from the present to the future
...

(i)

Unfreezing: The process of unfreezing simply makes the individual
or organizations aware and prepares them for the change
...
Sudden, unannounced change would be socially
destructive
...
This way, if there is any resistance to change, it can be
neutralized
...
This can be achieved
by making announcements, holding meetings and promoting the
ideas throughout the organization via bulletin boards, personal
contacts and group conferences
...

(ii)

Changing or Moving to the New Condition : Once the unfreezing
process has been completed and the members of the organization
recognize the need for change and have been fully prepared to accept
such change, their behaviour patterns have to be redefined
...
C
...
These are :
(a) Compliance : Compliance is achieved by strictly enforcing the
reward and punishment strategy for good or bad behaviour
...
For example, many people have stopped
smoking because of warning given by the Surgeon General of
United States that smoking causes cancer of the lungs
...
Many public organizations use celebrities as
role models in advising young people not to try drugs
...
Members are left alone to look themselves and they are
given freedom to learn and adopt new behaviour in order to succeed
in the new set of circumstances
...

(iii)

Refreezing : Refreezing occurs when the new behaviour becomes a
normal way of life
...
Also, it
should be permanent in nature
...

This must be clearly understood that the change process is not a one
time application but a continuous process due to dynamism and ever
changing environment
...

The implementation of this three steps change model can be seen in
the case of kidnapping victims or prisoners of war or in
deprogramming of some religious cultists
...
If these

672

prisoners return back to their own country, the process can be
repeated to bring them back to their original behaviour
...

This analysis is based upon the assumption that we are in a state of
equilibrium when there is balance between forces that induce change
and forces that resist change
...
The change forces are known as driving forces and
the forces that resist change are known as restraining forces as
shown below :
Driving forces → Equilibrium ← Restraining forces

Identifying need
for change

Elements to be
changed

Planning
for change

Assessing
change forces

Actions for
change

Unfreezing

Changing

Refreezing
Feedback

Managers who try to implement change must analyze this balance of
driving and restraining forces and then strengthen the driving forces or
weaken the restringing forces sufficiently so that change can take place
...
5 Action Research and Change
Action research refers to a change process based on the systematic
collection of data and then selection of a change action based on what the
analyzed data indicate
...

The process of action research consists of five steps : diagnosis, analysis,
feedback, action, and evaluation
...

(i)

Diagnosis
The change agent, often an outside consultant in action research, begins
with gathering information about problems, concerns, and needed changes
from members of the organization
...
In action research,
the change agent asks questions, interviews employees, reviews records,
and listens to the concerns of employees
...

What problems do people key in on? What patterns do these problems seem
to take? The change agent synthesizes this information into primary
concerns, problem areas, and possible actions
...
That
is, the people who will be involved in any change program must be actively

674

involved in determining what the problem is and participating in creating
the solution
...
The employees, with the help of the change
agent, develop action plans for bringing about any needed change
...
The employees and
the change agent carry out the specific actions to correct the problems that
have been identified
...
Using the
initial data gathered as a benchmark, any subsequent changes can be
compared and evaluated
...

First, its problem focused
...
While
this may seem intuitively obvious, a lot of change activities are not done
this way
...
The change agent has a
favourite solution- for example, implementing flexitime, teams or a
management by objectives program-and then seeks out problems that his or
her solution fits
...


24
...
This need for change can be
identified either through internal factors or through external forces that may
be in place
...

(i)

Develop new goals and objectives : The managers must identify as
to what new outcomes they wish to achieve
...


(ii)

Select an agent for change : The management must decide as to
who will initiate and oversee this change
...


(iii)

Diagnose the problem : It is important to gather all pertinent data
regarding the area or the problem where the change is needed
...
Then
the solutions can be focused on those key issues
...
Members’ emotions must be taken
into consideration while devising such methodology
...
For example, if the company wants to develop
and implement a flexitime policy, it must decide as to what type of

676

workers will be affected by it or whether flexitime should be given
to all members or only to some designated workers
...
This includes the right timing of putting the plan to work, how
the plan will be communicated to workers in order to have the lesser
resistance and how the implementation will be monitored
...
It may be in the form of simple announcement or it may
require briefing sessions or in-house seminars so as to gain
acceptance of all the members and specially those who are going to
be directly affected by the change
...
Feedback will confirm if these goals
are being met so that if there is any deviation between the goals and
the actual performance outcomes, then corrective measures can be
taken
...
7 The Change Agents and their Characteristics
The change agents are those factors that are responsible for bringing about
the change in the individual behaviour patterns
...
These change agents may
either be the initiators of change or serve as catalysts for such change
...

(i)

Outside Pressures : These are pressures from the external
environment and are directed towards change in the entire
organization
...
The government may
also get involved if there are labour strikes for a long period of time
or mass demonstrations against the organization
...
This may include
redefinement of goals as well as participative goal setting such as
MBO

(Management

by

Objectives),

work

redesign,

team

development and so on
...
For example, in a
government job, if a person who is habitually coming late to work

678

without any obvious repercussions or reprimands, might change his
behaviour if the organization starts taking notice of such tardiness in
a negative way
...


There have been a number of change agents that have been at work in
changing the organizational processes and structures
...
In addition, forces such as women’s liberation movement
and strong labour unions have brought about changes that have affected the
work ethics of the organizations and work roles of its members
...

The change agent may be in the form of a consultant who helps the client
find solutions to the organizational problems
...
This change agent must
have certain characteristics which would identify it to be more effective
than others
...
The first letters of these factors together spell “HELP
SCORES”
...
The closer the relationship, the easier
and more successful the change is likely to be
...


(ii)

Empathy : It involves understanding of feelings and emotions and
thoughts of others by putting ourselves in others’ shoes
...


(iii)

Linkage : It refers to the degree of collaboration between the change
agent and the client
...


(iv)

Promixity : The change agent and the client should have easy access
to each other
...


(v)

Structuring : This factor involves proper and clear planning of all
activities that are related to change
...


(vi)

Capacity : This factor refers to the organization’s capacity to
provide the resources that are needed for successful organizational

680

development effort and implementation
...

(vii)

Openness : Openness refers to the conceptual environment which is
conducive to the development of respect and understanding for each
other’s ideas, needs and feelings
...


(viii) Reward : All members expect that the change will bring potential
benefits
...
The greater the potential for rewards, the more
determined the effort would be in making the required change
...
This effort involves both the physical and psychological
energy
...
The energy of the change
agent should not be spread over too many clients, for in that case,
each of the clients individually may not receive the needed energy
...
This means that the previous nine factors involving
a variety of people, resources, energies and activities together result
in synergy, if they support success mutually as well as individually,
they are as favourable to the program as possible
...


681

24
...
In a sense, this is positive
...
If there weren’t some resistance, organizational
behaviour would take on characteristics of chaotic randomness
...
For example,
resistance to a reorganization plan or a change in a product line can
stimulate a healthy debate over the merits of the idea and result in better
decision-making
...
It
hinders adaptation and progress
...

Resistance can be overt, implicit, immediate, or deferred
...
For
instance, a change is proposed and employees quickly respond by voicing
complaints, engaging in work slowdown, threatening to go on strike, or the
like
...
Implicit resistance efforts seem to be subtle but has serious
ramifications—loss of loyalty to the organization, loss of motivation to
work, increased errors or mistakes, increased absenteeism due to
“sickness”—and hence more difficult to recognize
...
A change may produce what appears to be only a minimal reaction at
the time it is initiated, but then resistance surfaces weeks, months, or even
years later
...
For analytical purposes,
we have categorized them by individual and organizational sources
...


682

Individual Resistance
Individual sources of resistance to change reside in basic human
characteristics such as perceptions, personalities, and needs
...

(i)

Habit
Every time you go out to eat, do you try a different restaurant?
Probably not
...

As human beings, we’re subservient to our habit
...
To cope with this
complexity, we all rely on habits or programmed responses
...
So when your
department is moved to a new office building across town, it means
you’re likely to have to change many habits : waking up ten minutes
earlier, taking a new set of streets to travel, finding a new parking
place, adjusting to the new office layout, developing a new
lunchtime routine, and so on
...
When Sears announces
it’s laying off 50,000 people or Ford introduces new robotic
equipment, or Indian banks thought of computerization in early 80’s
many employees at these firms feared that their jobs are in jeopardy
...
Changes in job tasks or established work
routines also can arouse economic fears if people are concerned that
they won’t be able to perform the new tasks or routines to their
previous standards, especially when pay is closely tied to
productivity
...
The
transition from high school to college is typically such an
experience
...
You might not have liked high school, but at least
you understood the system
...
You have traded the known for the
unknown and the fear or insecurity that goes with it
...
If,
for example, the introduction of TQM means production workers
will have to learn statistical process control techniques, some may
fear they’ll be unable to do so
...


(v)

Selective information processing
Individuals shape their world through their perceptions
...
So individuals are guilty of
selectively processing information in order to keep their perceptions
intact
...
They ignore information

684

that challenges the world they’ve created
...

Organizational Resistance
Organizations, by their very nature, are conservative
...
You don’t have to look far to see evidence of this
phenomenon
...
Organized religions are deeply
entrenched in their history
...
Educational institutions,
which exist to open minds and challenge established doctrine, are
themselves extremely resistant to change
...
The majority of business firms, too, appear highly
resistant to change
...

(i) Structural Inertia
Organizations have built-in mechanisms to produce stability
...
Training and other
socialization techniques reinforce specific role requirements
and skills
...


685

The people who are hired into an organization are chosen for
fit; they are then shaped and directed to behave in certain
ways
...

(ii)

Limited focus of change
Organizations are made up of a number of interdependent
subsystems
...


For

example,

if

management

changes

the

technological processes without simultaneously modifying
the organization’s structure to match, the change in
technology is not likely to be accepted
...

(iii)

Group Inertia
Even if individuals want to change their behaviour, group
norms may act as a constraint
...
But if union norms dictate
resisting any unilateral change made by management, he’s
likely to resist
...
The introduction of decentralized
personal computers, which allow managers to gain access to
information directly from a company’s main frame, is an
example of a change that was strongly resisted by many
information systems departments in the early 1980s
...

(v)

Threat to established power relationship
Any redistribution of decision-making authority can threaten
long-established power relationships within the organization
...


(vi)

Threat to established resource allocations
Those groups in the organization that control sizable
resources often see change as a threat
...
Will the change, for instance,
mean a reduction in their budgets or a cut in their staff size?
Those that most benefit from the current allocation of
resources often feel threatened by changes that may affect
future allocations
...
9 Overcoming Resistance to Change
Six tactics have been suggested for use by change agents in dealing with
resistance to change
...

(i)

Education and Communication
Resistance can be reduced through communicating with employees
to help them see the logic of a change
...
If employees receive the full facts and get any
687

misunderstandings

cleared

up,

resistance

will

subside
...
Does it work? It does,
provided that the source of resistance is inadequate communication
and that management-employee relations are characterized by
mutual trust and credibility
...

(ii)

Participation
It’s difficult for individuals to resist a change decision in which they
have already participated
...
Assuming that the
participants have the expertise to make a meaningful contribution,
their involvement can reduce resistance, obtain commitment, and
increase the quality of the change decision
...


(iii)

Facilitation and support
Change agents can offer a range of supportive efforts to reduce
resistance
...
The drawback of this tactic is
that, as with the others, it is time consuming
...


(iv)

Negotiation
Another way for the change agent to deal with potential resistance to
change is to exchange something of value for a lessening of the

688

resistance
...
Negotiation as a tactic may be
necessary when resistance comes from a powerful source
...
Additionally, there is the risk
that, once a change agent negotiates with one party to avoid
resistance, he or she is open to the possibility of being black mailed
by other individuals in positions of power
...
If corporate
management threatens to close down a particular manufacturing
plant if that plant’s employees fail to accept an across-the-board pay
cut, and if the threat is actually untrue, management is using
manipulation
...
It seeks to “buy off” the leaders of a
resistance group by giving them a key role in the change decision
...
Both manipulation and cooptation are relatively
inexpensive and easy ways to gain the support of adversaries, but the
tactics can backfire if the ‘targets’ become aware that they are being
tricked into or used
...


(vi)

Coercion

689

Last on the list of tactics is coercion, that is, the application of direct
threats of force upon the resisters
...
Other
examples of coercion are threats of transfer loss of promotions,
negative

performance

evaluations,

and

a

poor

letter

of

recommendation
...


24
...

Though change is the only constant factor in organizations, yet the pace of
change has been considerably accelerated by these forces
...
Unfreezing means unlearning of old things in order to learn
a new thing
...
Refreezing
means providing opportunities for new behaviour to get integrated into
actual practice
...
Organizational resistance to change
may emanate from its reward system, resource limitations, organizational

690

politics, structural rigidities, faulty introduction of change, poor record of
change implementation, and so on
...


24
...
Define change
...

2
...
Give examples
where necessary
...
What are the reasons for resistance to change? What can management
do to overcome such resistance?
4
...

5
...
Are all managers change agents? Discuss
...

7
...
Do you agree or
disagree? Discuss
...
What do you mean by planned change? What are its objectives?
9
...
Elaborate
...
12 Suggested Readings
6
...
,

Organizational

Behaviour,

Himalaya

Publishing House, New Delhi, 1996
...
Dwivedi,

R
...
,

Human

Relations

and

Organizational

Behaviour : A Global Perspective, Macmillan India Limited,
Delhi, 1997
...
Luthans, F
...
J
...

9
...

10
...
A
...


692

SUBJECT: Management Concepts and Organization Behaviour
COURSE CODE: MC 101

Author: Ms
...
Karam Pal

ORGANISATIONAL DEVELOPMENT
Objective: The objective of this lesson is to make the students learn about the concept
of organizational development and various OD interventions
...
1 Introduction
25
...
3 Objectives of Organizational Development
25
...
5 Organization Development: Some Values
25
...
7 Summary
25
...
9 Suggested Readings

693

25
...
OD is a process of planned
change organization-wide to increase organization effectiveness through changing
the methods or process by which work is done
...
Many changes with traditional and modern techniques are taken
place for organization development
...
It requires proper environment study, support, training and reward
system
...
It
aims at building internal competencies and teams in the organization
...

The basic concept behind organizational development is to improve
organizational

efficiency

by

modifying

human

behaviour

rather

than

technological innovations, because without the committed involvement of human
element, all the technology has a limited meaning
...
OD has
been defined in different ways:
In general terms, it is an effort to improve an organization’s effectiveness by
dealing with individual, group, and overall organizational problems from both a
technical standpoint and a human standpoint
...


694

•

OD is the art of learning to solve problems and take advantage of
opportunities to keep improving through the process of carrying out
changes in the internal environment to conform to the fast changing
external environment
...

Emphasis is on management of people in the change process (Burke)
...


•

OD is a powerful change strategy
...
It is participative, collaborative and
problem focused approach
...


According to Harold Rush, “Organization Development is a planned, managed
and systematic process to change the culture, systems and behaviour of an
organization in order to improve the organization’s effectiveness in solving its
problems and achieving its objective”
...
2 FEATURES OF ORGANIZATION DEVELOPMENT
Organization development attempts to develop the whole organization through an
open communication by increasing the adequacy and accuracy of information
...
The main features of organization
development are:
1
...

The systems are divided into sub-systems and there are number of variables
that affect these subsystems
...
The interaction of all the subsystems is channelised for better
performance of the organization
...
All the system of the organization like marketing,
finance, personnel, production and communication and their sub-systems are
properly interlinked for making better utilization of resources
...
The working relationships and personal
interactions are formalized to make organization development easy and
smooth
...
Humanistic Approach: Organization development includes human values
...
The
employees’

development

is

possible

through

open

communication,

interpersonal relationship, empowerment and constructive discussion
...
They stimulate, facilitate and coordinate the development
function
...
Thus, organization development is basic objective of change
agents
...
Action Research: It is very important for organization development
...
Action research
is a data based system
...
Management coordinates all the activities of the system, subsystems, groups and teams
...
Their relationships and work experience are used for
improvement
...

4
...
It is an effective
change in the organization structure and process
...
It involves application of
behavioural science in different fields of the organization
...
People, structure, technology and
environment are intervened for a better performance
...


According to French and Bell, 1990 and Backhard, 1969, OD has following
characteristics:
•

systematic, long-range, planned, change effort,

•

organization-wide,

697

•

managed from the top,

•

to increase organization effectiveness and health,

•

through planned interventions,

•

using behaviour science knowledge and action research, and

•

with the use of external consultants
...
3 OBJECTIVES OF ORGANISATIONAL DEVELOPMENT
OD programs vary because they are tailored to unique situations
...
The objectives of organization development are
highlighted in the following lines:
1
...
OD keeps work organization productive as well as
hospitable for members
...
To build and enhance interpersonal trust, communication, cooperation and
support among all individuals and groups throughout the organization at all
levels
...
Thus, the organizational goals become the goals of the members
of the organization
...
Develop a satisfying work experience capable of building enthusiasm and
encourage personal willingness to change
...
To encourage an analytical approach to problem solving in a team spirit and
open manner, where the problems and differences are confronted and resolved
instead of problem-avoiding or decision-postponing approach
...
To assign decision makes and problem solving responsibilities to skilled and
knowledgeable persons who are closer to the scene of operations and sources
of information, rather than to a person with a particular role or at a particular
hierarchical level
...
To increase personal responsibility for planning, implementing the plans and
be aware and responsible for the consequences
...
This will increase
a sense of self-direction for all people within the organization
...

7
...

Organization development helps managers to manage according to the
relevant objectives
...

8
...

These objectives help the organization in examining its current methods of
operations, its norms and values and in generating and evaluating alternative ways
of operating and utilizing the full potential of human resources
...


699

25
...
It has four major sources:
1
...

2
...

3
...

4
...

They further add that the importance for applying OD approaches has changed to an
increasingly

turbulent

environment
...
OD was first introduces in
India in Larsen and Toubro and Bharat Heavy Electricals Ltd
...
It had a slow growth for over 25 years
inspite of introduction of laboratory training by Udai Pareek, Roltlynton and other
professionals
...
It has following advantages: It helps the management to meet the
challenges of change, it makes the people happier and more satisfied and corporate
policies are made more flexible
...

Peculiarities of Indian’s Way of Managing and Need for OD (S
...
Indian culture is strongly hierarchy-based and OD facilitator must explain the
need for change, what is to be changed and how it is going to benefit the target
group
...
Indian mind-set is tradition-bound, fatalistic and more resistance to change
...
The Indian mind that governs organizations is much less system driven and more
people and relationship driven
...
When faced with uncertainties, Indian organizations are forced to work for short
term goals rather than long term ones
...
5 ORGANISATIONAL DEVELOPMENT: SOME VALUES
Organizational development is dependent upon organizational values
...
The
corporate values include:
1
...
They should be treated with dignity and respect
...
Trust and Support: The effectiveness and healthy organization is
characterized by trust, authenticity, openness and a supportive climate
...

3
...
Effective organization de-emphasizes hierarchical authority
and control
...
Open Discussion or Confrontation: Openness of problems and solutions
removes misunderstanding
...

They should be openly confronted
...
Participation: It brings changes in the working process for the betterment of
the corporate philosophy
...
In this way, people get an
opportunity to demonstrate their qualifications
...


25
...
The process is
designed, reviewed and implemented
...
The outcomes are evaluated and
the momentums of functioning are accelerated
...
The
following Figure-25
...
The process of organization
development involves following steps:

702

Unfreezing prepares the members of a social system for change and then helps
neutralize initial resistance
...
Sudden, unannounced change would be
socially destructive
...

FIGURE-25
...
Diagnosis
Objective: Assess
the situation and
prescribe an
appropriate change
t t

Change
h
2
...
Follow-up
Objective: Address
unanticipated
problems and side
effects
...

It makes the individuals or organizations aware and prepare for the change
...
These are:
-

Driving Forces, which direct behaviour away from the status quo, can be
increased
...


-

The third alternative is to combine the first two approaches
...
For effective change the driving forces should be strengthen
and the restraining forces should be weaken successfully
...

Refreezing: It is stabilization of change intervention by balancing driving and
restraining forces
...
At this stage, the individuals learned new beliefs, feelings and behaviour
...
It is necessary to follow up on problems, complaints,
unanticipated side effects
...

Diagnose is carried out during the unfreezing phase
...
Finally, a systematic follow-up refreezes
the situation
...
Thus,
the following three-phase sequence makes OD an ongoing system of planned change
...
These
are explained as below:
1) OD Diagnosis: Because of the expenses of conducting a diagnosis, management
teams need to identify at the outset the specific problems areas or subunits that
deserves close examination
...
Therefore, the management must select the relevant domain and can turn to
three important aspects of the diagnostic phase:

704

a) Unfreezing the situation: An OD program should not come as a surprise
...
All these activities help deliver clear message: “We can
improve the effectiveness of our organization while increasing our personal
satisfaction if we all cooperate in a comprehensive program of finding out
where we are, where we want to go and how we can get there”
...
One word
of caution: during the unfreezing phase, care needs to be taken to avoid
creating unrealistic expectations
...
For getting some feedback in the organization at
large it is important to examine the organization climate
...
In measuring organizational climate, we are
interested in learning about the informal organization, which is analogous to
the part of an iceberg that rests under the water
...
2 depicts
the organizational iceberg:
The Formal Aspects are readily observable and oriented to structural considerations
...
If some one is inefficient, we can find out why and try to deal
with the problem
...
2: Organizational Iceberg
Visible Features (Formal Aspects) - The Formal Organization
Objectives, Structure, Policies and plans, Formal Authority, Rules, Task Design,
Technology, Formal channel of communication, performance, Job Definition,
Job Descriptions, Forms of Departmentalization, Span of Control, Operating
policies, Efficiency measures
...
g
...
Usually we do not know what is going on
in the informal organization until problems begins
...
A complete diagnosis of every
feature listed in figure would be prohibitively expensive and time-consuming and
so it is important to select the right diagnostic strategy for the information sought
...
These are:
(i)

Review of records: Now-a-days organizations possess a wealth of
recorded information and data in response to the government’s increased
demand
...
Much
can be learned by review of human records for signs of excessive
absenteeism and turnover or for patterns of grievances
...

(ii)

Interviews: By using a carefully compiled list of specific questions and
general, open –ended questions, a skilled interviewer can discover a great
deal about both individuals and the organization at large
...
Questionnaires may be administered to people assembled in groups,
or they may be mailed individually
...


Some

of

the

more

sophisticated

published

survey

questionnaires include in the purchase price scoring and statistical
analysis
...
When this kind of discrepancy is likely to be a problem,
management may choose to have a neutral third party observe
organizational members at work
...
By balancing the
respective strengths and weaknesses of the various approaches, it is possible to
develop a diagnostic strategy based on two or more approaches
...
Weisbord identifies six critical areas- purpose,
structure, rewards, helpful mechanisms, relationships and leaderships, where things

707

must go right if the organization is to be successful
...
3: Marvin R
...
Commonly one finds that formal arrangements are inappropriate, but
informal system works around the deficiencies by developing methods to correct
them
...

2
...
All the
activities which are planned and carried in order to bring about improvements are
called as interventions
...
An

708

intervention, in OD terms, is a systematic attempt to correct an organizational
deficiency uncovered through diagnosis
...

OD strategy, on the other hand, can be defined as an overall plan for relating and
integrating different organizational improvement activities over a period of time
to accomplish objectives
...


•

An OD intervention focuses on work team as the unit of analysis and change
towards effective behaviour
...


Different kinds of OD interventions (Figure-25
...
4 OD Interventions For Different Level

Group

Individuals

Life and career planning
Skill Development
Sensitive Training
Model Training

Role Analysis
Team Building
Feedback Techniques

Inter-group
Interventions

Organization Interventions

Management by Objective
Managerial Grid
Quality of Work Life

1) Individual Interventions

709

(A) Sensitive Training: Training, seeking change of behaviour through interaction, is
sensitive training
...
Their weaknesses and problems are
solved through interactive processes involving behavioural experts
...
They express their beliefs, ideas and attitudes with the experts who try
to modify them through practical orientation
...
Employees are taught self-awareness based on their own
behaviour and perception
...
Employees are put under training to understand better about themselves and
about others
...
The employee understands what
others think about him
...
It is more realistic and leads to selfperception and group cohesiveness
...

(b) Life and Career Planning: Many employees today have no clear plans for their lives
on their careers, things just happen
...
One company that helps its people rise to
the challenge of actively managing their own careers is prudential, the well known
insurance giant
...
It is expected that the employees learn skills which are applied and
reinforced on the job
...
The employees experiment on themselves on how to
improve and fit themselves for growth and development of the organization
...

Role Playing is a spontaneous acting of a realistic situation
...
Other trainees are
considered as observers and critics
...
Workers perform
the job in groups
...
The decision of each group is processed and
again put up for discussion
...
It
develops the skills of handling the encountered behaviour
...

Encountering involves dividing the group into small participating groups
...
Encountering develops reasonable
group activity
...
These
groups have variations on account of their sensitivity and human potentials
...


711

Simulation is the experiments of different dimension of work life
...
It is
recreating reality, communication patterns, decision making styles and conflict
resolution
...
Unlike most OD interventions, skill
development deals with content rather than process
...
Similarly, managers at all levels can be
trained to polish their skills in areas such as delegation, problem solving, conflict
resolution and leading
...

2) Group Intervention
(a) Role Analysis: A role, once again, is a prescribed way of behaving
...
In a
healthy organization, everyone knows his or her role, and those roles mesh in a way
that encourages cooperation and reduces dysfunctional conflict
...

(b) Team Building: It is essential for task performance
...
Special task force

712

(for task accomplishment), field force (identifies role and goal setting) and financial
teams (relationship between resources and manpower allocation) are examples of
teams associated with corporate development
...
The basic ingredients of team building are supportive environment, skills and
role clarity, super
ordinate goals and team rewards
...
The benefits of team building are greater motivation, increased
productivity, better quality of work, higher job satisfaction, better resolution of
conflict and increased willingness to change
...
The main purpose of survey
feedback is to let people know where they stand in relation to others on important
organizational issues so that constructive problem solving can take place
...


(ii)

Understandable: To ensure clear communication, language and symbols
should be familiar to the recipients
...


713

Figure-25
...

(v)

Limited: Too much feedback causes an information overload, and so only
significant highlights should be presented
...


(vii)

Comparative: Comparative data let recipients know where they stand in
relation to others
...

Feedback that meets these criteria should be fed back to organizational subgroups,
as the situation allows, until all employees have had a chance to see where and
how they fit
...

3)

Inter-group Interventions
Organizational development seeks an intergroup development
...
Confrontation meeting (mirroring)
may be used for inter-department cooperation
...
A popular
method for improving inter-group relations is problem solving
...
The groups then share
their lists, after which similarities and differences are discussed
...
The
groups can now move to the integration phase, i
...
working to develop solutions
that will improve relations between the groups
...
The aim of this intervention is to improve inter-group relations and increase
organizational effectiveness
...
It is based on managerial grid of Blake and Mouton (1964)
...
6
Figure-25
...
In
this first focus on training e
...
manger’s styles-training to managers is
imparted so that high score on both, i
...
concern for production and
concern for people is achieved which is desirable
...
In
this emphasis is on improving both boss-subordinate relationships and
team effectiveness
...


(iii)

Inter-group development: Here trust is on improving coordination,
cooperation, relieve tensions and solve problems jointly
...
Conflict situations between groups and identified and
analyzed
...
It is designed
as an inter-group intervention where OD consultant acts as a mediator in a
conflict situation
...


(v)

Goal attainment: In this participants attempt another strategy used is to
accomplish the goals which they set
...


The other OD intervention strategy is Transactional Analysis, it makes the
employees understand themselves
...
It suggests
more meaningful ways to interact with one another
...
It helps to understand and analyze the
transactions with others
...
It also helps process consultation, third part peacemaking and team
building
...


Follow-up: Effective OD programs do not end abruptly when the intervention
phase is completed but, rather, require a carefully monitored refreezing period to
ensure lasting change
...
These two objectives are explained below:
(a)

Evaluating the OD program: Evaluating changes in any complex social
system is never easy
...


From a research perspective, objective

evaluation should be a part of every OD program, even though
they are difficult, time consuming, expensive and hence largely
unappealing from an administrative standpoint
...

(b)

Maintaining positive change: The purpose of any OD program is to
induce organizational members to behave differently
...
Only skillful unfreezing and exciting, relevant, and
innovative OD interventions will generate individual commitment
...


25
...
Each member begins to see himself as a resource to others and is
willing to lend his support to his colleagues when it is needed
...
The change must be for the better so that it develops the organization
and such organizational development should be directed towards improvement in
organizational health and welfare of the members
...
It
improves communication channels at all levels of the hierarchy and build team
spirit among workers as that their inter-group relationships are highly cordial
...
8 SELF ASSESSMENT EXERCISE
1
...

2
...

3
...
Comment
...

4
...
9 SUGGESTED READINGS
1
...
Allen, Management and Organization, McGraw-Hill Kogakusha, Ltd
...
Jit S
...

3
...

4
...
Robbins,” Organizational Behaviour”, Prentice-Hall India
...
Laurie J
...


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