Fundamentals of Management

Dasari.Pandurangarao

Dr.K.Chiranjeevi Devarpalli.Rajasekhar

Archers and Elevators Publishing House

Bangalore - 560090, India

ARCHERS & ELEVATORS PUBLISHING HOUSE

131 AGB Lay out, 6th Cross

Hesaraghatta Main Road

Bangalore-560090(INDIA)

Tel: 080-32211335 Mob: + 91 9164362263

E-mail:

archerselevators@gmail.com

Website: www.aeph.in

Fundamentals of Management

Archers and Elevators Publishing

House First Edition 2015.

ISBN: 978-93-83241-91-0.

Price: Rs.250/

All rights reserved. This book or parts therefore, may not be

reproduced in any form or by any means, electronic or mechanical,

including photocopying, recording or an information storage and

retrieved system now known or to be invented, without written

permission from copyright owners.

PRINTED IN INDIA Akshay printers, Bangalore-90.

About Authors:

Dasari.Pandurangarao is Assistant professor of Management and Marketing department, College of Business and Economics, Eritrea, East Africa. He has eight yearsteaching experiences as Assistant professor of the various colleges: Newton’s Institute of Engineering, Amara Institute of Engineering and St.Ann’s Engineering College, Andhra Pradesh, India. His teaching and research intent are Management and Marketing management. He has

been serving as editorial board member of IJASR Journal, 12 research articles are published in various national and international journals. He has written a book Customers’ Perception on Mutual funds. Dr.K.Chiranjeevi holds Masters Degree in Human Resource Management from Andhra University and Master

of Business Administration in Marketing from Acharya Nagarjuna University. He was Asst. Personal Officer in NIPPO Indo National Limited, Tada, and Nellore Dist for two years during November, 1995 to December, 1997. He joined the Department as Lecturer on 23-1-1998. He was awarded Ph.D. in Commerce and Management from Acharya Nagarjuna University under the

guidance of Prof.G.N.Brahmanandam, Commerce and Management studies. His areas of interest are Performance Management, Human Resource Management, Business Laws, Labour Laws, Human Resource Planning and Compensation Management, HRD-Strategies and Systems. He attended good number of seminars and workshops. He also takes part Associate NCC Officer from 2008 to still date. He appointed as Research Supervisor in Dept.of Business Management under the Faculty of Commerce and Management Krishna University, Machilipatnam.

Deverapalli.Rajasekhar is presently working as a Guest facultyin the department of MBA Acharya Nagarjuna University. He finished his Ph.D from Acharya Nagarjuna University and masters in Management (MBA) from JNTU University. He has eight years teaching experience as Assistant professor of the various colleges: JBIET College, Hyderabad, and faculty in the department of MBA, Acharya Nagarjuna University, Andhra Pradesh, India.His research intent is Human resource management and 22 research articles are

published in various national and international journals.

Preface

Thisbook “Fundamentals of Management” has addressed all

management concepts including evolution of management thoughts, functions of management, motivating employees, communication concepts, information systems need for managers and international management. This text is benefitted to all college students, scholars, researchers, lecturers, business people and who are intended to learn management concepts. Easy understandable language and examples are used by targeting all level of students in India.

We are in the era of high speed technology. People are engaged with numerous works in a day. The day in and day out is going with bunch of works. Managing of these works is tough to a human without well organized management skills. Therefore, management became an intrinsic part of our life. Everyone should have the knowledge of management concepts in order to make life peace and healthy.

In writing this book we have drawn on a vast amount of literature in management. Naturally, we owe an intellectual debt to the numerous authors who haveenriched the stream of literature in management by their contributions. Wehave also benefited from the insights and experience of a number of academicians in thefield, with whom we have had many discussions.

Dasari.Pandurangarao

Dr.K.Chiranjeevi

Devarpalli.Rajasekhar

CHAPTER-1

INTRODUCTION TO MANAGEMENT

Learning objectives

After reading this chapter, you will be able to understand:

� The nature of the management

� Levels and types of managers � Management and its importance

� What are the Functions, roles, and skills of management

� Skills required to a manger?

� Roles of manager in business

� Management: science or art � The concept of evolution of management movement

1.1 INTRODUCTION

Many people assume that a manger job is just planning and organizing resources (Human resources, financial resources, physical resources and technical resources), problem solving and working with others. But Technology, changes in the society, competition, and increased customer service make the job of manger very tough. All these changes have created new challenges for manger. Managing human activities is most important to attain organizational goals. In today's tough and uncertain economy, business needs a strong manager. The role of manager not ended with managing things; in addition, he is acts as a problem solvers, cheerleaders, and planners as well.

1.2 DEFINITIONS

Management may be defined in different ways. The most generic of its meanings is concerned with goal directed actions and best utilizing resources. From this perspective the following definitions are developed.

� Management is the process of achieving organizational goals through

engaging in the five functions of planning, organizing, staffing, leading and controlling by utilizing human, financial and material resources.

� Management is the process of best using business resources includes

its employees, equipment, and money to produce goods or provide services.

Page | 1

1.3 LEVELS AND TYPES OF MANAGERS

All organizations, from one person business to giant corporations, need manager, management applies to any kind of organization and concerned with productivity. In large organizations need generally more than one manger to coordinate their resources. Accordingly managers operate often influences the mixture of important function and skills. In this section, you will learn about types and levels of managers. Traditionally management is divided into three categories: first-line, middle, and top level management. The time spent by the manager varies at different levels. Top level managers usually spend more time on planning.

Top level managers

Top level Managers are senior executive of an organization and are responsible for its overall management; they are top in the hierarchy. Normally top level managers often referred to as policy and decision makers, and strategic managers, focus on survival, growth, and effectiveness of the organization. Instead of focusing in the company‘s day to day activities, top management concentrate on setting the direction that company should follow.

Chief executive officers (CEO), President, Executive vice president, vice president, executive director, chief operational officer (COO) are common job titles at top level management in large corporations.

Top level managers are true organizational leaders, treat employees as valued asset of the enterprise and motivating employees enthusiastically commit to the work.

Middle level managers

Middle level managers are Figure-1.1: Levels of management

also called tacticalmanagers, are located in the organization‘s

hierarchy between top and front line manager. The role of middle level

manager is administrative controller, bridges the gap between higher and lower levels. Middle level

management working to meet the goals set by top management. In large organizations several layers of middle level managers

Page | 2

are placed. Particularly specific areas of business goals set by middle level management. For example, increasing company market share is a goal set by top management in the next two years; in order to meet objective, middle managers might develop new product promotion strategies. Middle level managers include clinic directors in hospitals; deans in universities; and division managers, plant managers, and branch sales managers.

First line managers

Lower level or operational managers are responsible to supervise the operations of the organization. First line managers are often called supervisors because they supervise only operating employees and are at the lowest level in the hierarchy. Operational management is acting as link between management and non-management personnel. First level managers are responsible for smooth run of day to day operations of organization, since they are important to the success of the organization. Job titles for these first-line managers differ greatly, but include such titles as division head, group leader, and unit leader.

1.4 WHY MANAGEMENT IS IMPORTANT?

To see why mangers are more important, think about the role play by them in organizations, to answer this question few universal facts regarding mangers we are discussing here. Managers are universal;

hotels, schools, hospitals, churches, airports, small business and large corporations, all are required mangers to functioning smoothly and for effective management. Success or failure of an enterprise relies on the managing abilities of manager. Managing is common sense; planning for

the organizational future, strategies to grab market share, choosing right employees to work, motivating and rewarding their performance all sounds like common sense. Studying management concepts does not make mangers, applying these concepts on your own in proper way, at the right time to solve managerial difficulties required common sense. Management skills by experience;―Management can be learned from only form the school of hard knocksǁ is statement of

on successful entrepreneur. Hence, text books and college course cannot replace the experience.

1.5 FUNCTIONS, ROLES, AND SKILLS OF

MANAGEMENT Functions of Managers Activates of manager can be divided in to five categories. Noble managers determine exactly how to leading five basic functions: planning, organizing, staffing, leading, and controlling.

Page | 3

Planning

Planning directs managers decides on company goals and how those goal will be met. Effective planning requires decision making,

allocation of resources, scheduling and establishing controls. Chapter 2 will explain types of plans and planning process in detail.

For example, that the organization's aim is to improve business sales, the manager first needs to decide which steps are essential to get done that goal. These steps may contain increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan.

Organizing

Organizing is considered as a subset of planning. It helps to create an environment for human performance. A manager needs to organize his team and assigns employees to perform them. Grouping employees to achieve common goal is vital function of organizing. In chapter 3 a clear discussion is presented.

Staffing

Selecting right people to right job is tough job to the manager. He needs to take decision on how many and what kind of people required to meet goals of business and recruit, selects, trains the people and fill the positions in the organization. In large organizations human resource manager often works this function and keep filling employees. This subject is dealt with in chapter 4 of this book.

Leading

A manager needs to do more than just plan, organize, and staff his team. Leading is motivating and stimulating people to high performers, so that they will contribute to organization to meet goals. Most problems arise from people, their attitude and desires will effect on groups and their performance. Manager must be a good leader to control and motivate people behavior by his communication, helping to guide and inspire them. The function leading takes place in all parts of the organization such as in teams, and division, and at the top level management. This subject is discussed in chapter 5.

Controlling:

Controlling ensures measuring performance against goals and proper execution of plans, and if necessary implements changes. In general things are not working as planned, deviates from the standards exist. The controlling function makes sure that goals are met. Controlling ensures progress toward goals, monitor performance, feedback about

Page | 4

progress, identify performance problems and to take actions to correct problems. Many large enterprises pay close attention towards controlling and able to change as needed when problems arise. The concepts of controlling are discussed in chapter 6.

1.6 SKILLS OF MANAGEMENT

Manager required a set of skills to perform management functions. Gaining competitive advantage, getting desired performance form employees and to ensure success of organizations manger must perform a variety of skills. These skills fall under the following categories:

Conceptual skills

Conceptual skills are related to the manager‘s ability to understand how complex and problematic issues arise in the organization, cognize relationship among different parts of a business and to the business as a whole. As managers assume ever-higher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills become.

Human relation skills

The day of manger starts with interaction with people. Leading, managing and communicating are part of his job which is called people skills. Human relation skills are those that help mangers working with people. Coordinating employees, execute plans, motivate people and to exchange information and handling conflicts all require good human relation skills. It is ability of manger to interact and get work form the people.

Technical skills

Technical skills assist to perform specialized task and are associated with a manager‘s ability to work well in a specialized field. For example, am manger may have technical skills in a specialized such as training people, accounting, engineering and manufacturing.

Page | 5

1.7 ROLES OF MANAGER

Mangers perform set of behaviors and roles in order to execute authority and power in many ways. Activities of managers at different levels vary, not only as a manager, planner, team leader, decision maker, problem solver, mentor and good organizer. Henry Mintzberg describes a set of ten roles that a manager fills, most management roles fall into one of three categories.

� Interpersonal: This role involves manger‘s relationships with

people.

� Informational: This role includes receiving and transmitting of information.

Page | 6

Decisional: This role contains significant decisions of manger that affect the organization.Table-1.1: contains roles of managers that help carry out all management functions.

Table-1.1: Mintzberg’s Ten Managerial roles

Category Role Activities

Interpersonal Monitor As monitor, manager seeks and receives (Information information; scan periodicals and reports;

provider) maintain personal contact with stakeholders‘key responsibility that manager lookup.

Disseminator This is where manager acting as information disseminator to organization members via memos, reports, and phone calls.

Spokesperson outsiders. Figurehead legal documents. Leader motivate communicate with subordinates. Liaison phone calls, and meetings. Entrepreneur

others. Disturbance handler environments. Resource Manager needs allocator

Being spokesperson manager representing organization to transmit information to Manager Performs ceremonial and symbolic duties, such as greeting visitors and signing

This is where manager lead, direct and subordinates; counsel and Manager must maintain information links both inside and outside organization via mail, As manager, you create and control change in the enterprise to Initiate projects, identify new ideas and delegate idea responsibility to When disputes or crises organization and teams face as manager, you take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to to decide where organizational resources are best applied. Decide who gets resources; prepare budgets; set schedules and determine priorities.

Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.

Page | 7

1.8 MANAGEMENT: SCIENCE OR ART

To understand whether management is science or an art we should know the meaning of terms ―Science" and "Art". In addition an investigation of the basics of science and art will be helpful in the understanding of management.

Science is systematized body of facts, its principles are grown on the basis of continued observation and experimentation and those are universally applicable. According to Berelson and Steiner science possess characteristics like; The procedures of science are open and public, the definitions of science are detailed, clearly delineated and universally applied, findings of science are explicative in nature, systematic and cumulative approach can be found in sciences and Prediction, explanation and understanding are key purposes of science. The above facts put a limitation on management as a science; management will not exactly match the characteristics of science but more science is being incorporated into management practices. Hence, management is likely to be called as science.

Art refers to the way of specific things; it is acquired by experience, study, or observation. Certainly it is true that managers are many times evaluated on their skill in performance and managers enhance that skill by experience, study, and observation. This observation makes management an art

Finally management is both a science as well as an art. The science of management delivers certain general principles which can direct the managers in their professional effort. The art of management comprises in engaging every situation in an effective manner.

1.9 THE EVOLUTION OF MANAGEMENT MOVEMENT

Today management concepts are results of many contributors and practitioners, the history of management originated way back B.C. Chinese, Greeks and Romans were early practitioners of management. In fact, in our earliest civilizations used management concepts like organizing, coordinating, leading and controlling to buildup pyramids (from 5,000 to 525 B.C). During world wars rulers and military men both saw the value of concepts that would allow them to manage. Although management is seen long history it seems much more recent. This chapter will reinforce your understanding of the key relationships among the management approaches and place each perspective in its historical context and discussed theories starting from 20thc. Up to now different schools of management thought have been developed.

Page | 8

Classical approach

Prof. Charles Babbage, James Watt Junior and Mathew Robinson Boulton, Robert Owen, Henry Robinson Towne and Rowntree were pre-classical contributors. The emphasis of classical approach is finding ways to manage work and organizations more efficiently and examining how the work process was actually accomplished and by scrutinizing the skills of the workforce. During this period, stalwarts like F.W. Taylor, H.L. Gantt, Emerson, Frank and LillianGilberth etc. it is made up of three different approaches: Scientific management Administrative management, Bureaucratic management.

Scientific management

Scientific management concept was arose during industrial revolution due to heavy demands on managers who were ill prepared to cope with masses of workers and the technological, financial and physical resources of mass production industries. As a result scientific management approach focused on scientific study of work method in order to improve worker efficiency.

Three major contributors to this production emphasis will be examined here. There are Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth.

Frederick Winslow Taylor

FW Taylor was started his career as a foreman at Betheleum Midvale Steel Factory in America later he rose to be the chief engineer at the Midvale Engineering Works. Then he served with the Bethlehem steel. Works he experimented at Bethlehem steel company with his ideas made the contribution to the management theory for which he is so well known. For his contribution he is often called the ―father of scientific management.ǁ Taylor believed that organizations should

study tasks and develop precise procedures. As an example, in 1898, Taylor calculated how much iron from rail cars Bethlehem Steel plant workers could be unloading if they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per day instead of the mere 12.5 tons each worker had been averaging. In addition, by redesigning the shovels the workers used, Taylor was able to increase the length of work time and therefore decrease the number of people shoveling from 500 to 140. Lastly, he developed an incentive system that paid workers more money for meeting the new standard. Productivity at Bethlehem Steel shot up overnight. As a result, many theorists followed Taylor's philosophy when developing their own principles of management.

Page | 9

Henry Gantt

Henry Lawrence Gantt an associate of Taylor, worked with Taylor at both Midvale Steel and Bethlehem steel company. He was worked on scientific selection of workers and the development of incentive bonus systems. He highlighted the need for developing a mutuality of interest between management and labor. He is famous of developed the Gantt chart, to compare actual to planned performance. Gantt chart was a daily chart which measures planned and completed work along each stage of production. This chart was intended to facilitate the completion stage of various projects, such as procumbent of materials, manufacturing, and shipping.

Frank and Lillian Gilbreth

Frank and Lillian made an important contribution to the management. Frank trained as a brick layer because of the importance of the profession at the time. He noticed the inefficiencies that were passed down from experienced workers. He watched bricklayers and saw that some workers were slow and inefficient, while others were very productive. To streamline the process he proposed motion studies. The contribution this study is that the one best way of doing a job is the way which involves the least motions performed in an accessible area and in the most comfortable position. The finest way can be found out by the removal of inefficient and inefficient motions involved in the work. Workers using these movements raised their production from 1,000 to 2,700 bricks per day. This was the first motion study designed to isolate the best possible method of performing a given job. Later, Frank and his wife Lillian studied job motions using a motion -picture camera and a split-second clock. When her husband died at the age of 56, Lillian continued their work.

Max Weber

Weber family had strong political and social connections. He pursued his career as professor and author. He coined the term ―bureaucracyǁ, which emphasizes the need for organizations to

operate in a rational manner rather than relying on the arbitrary whims of owner and managers.

Weber believed that all bureaucracies have the following characteristics:

� A well-defined hierarchy. All positions within a bureaucracy are

structured in a way that permits the higher positions to supervise and control the lower positions.

Page | 10

� Labor specialization. Jobs are broken down into routine and well defined tasks, all responsibilities in an organization are specialized so that each employee has the necessary expertise to do a particular task.

� Formal rules and regulations. Standard and written rules and

procedures govern all organizational activities to provide certainty and facilitate coordination and ensure uniformity.

� Impersonal relationships between managers and employees.

Managers should maintain an impersonal relationship with employees so that favoritism and personal prejudice do not influence decisions.

� Career advancement based on merit

Selection and promotion is based on the qualification and performance of members.

� Records. A bureaucracy needs to maintain complete files

regarding all its activities.

Henri Fayol

Henry Fayol, a French mining engineer and considered the ―father of modern theory of general and industrial management”. He is a

wellknown contributor to the administrative management approach. Modern principles of management identified by Fayol were not gain acceptance in America until the late 1940s, though they are popular in Europe in the early 1900s.These principles offer present -day managers with general guidelines on how a supervisor should organize his/her department and manage his/her staff. They are still widely used in management theories.

� Division of work: concept of specialization of work can result in

better work with the same effort.

� Authority and responsibility: Manager have right to give orders and

the power to exact obedience. Delegate authority along with responsibility.

Discipline: Good discipline requires managers to apply sanctions whenever violations become apparent.

Unity of command: Each employee should receive orders from only one superior.

� Unity of direction: each department should operate under one

plan to achieve organizational goals.

Page | 11

� Subordination of individual interest to general interest: The interests of one employee or group of employees are subordinate to the interests and goals of the organization.

� Remuneration: Salaries should be fair and provide satisfaction

both to the employee and employer.

� Centralization: The objective of centralization is the best

utilization of personnel. The degree of centralization depended on the dynamics of each organization.

� Scalar chain: shows the routing of the line of authority exists

from the highest organizational authority to the lowest ranks.

� Order: Organizational order for materials and personnel is essential so they support the organization‘s direction.

� Equity: Both equity and equality of action should be considered when dealing with employees.

� Stability of tenure of personnel: stable work force is needed to

become effective in new job and promote employee loyalty.

� Initiative: Encourage employees to act on their own.

� Esprit de corps: Stressed on unity. Harmony and team work is vitally important to an organization.

Mary Parker Follett

Born in Boston and educated in political science. She stressed the importance of an organization establishing common goals for its employees. She discarded command-style hierarchical organizations where employees were treated like robots and also began to think somewhat differently than the other theorists of her day. She began to talk about such things as ethics, power, and leadership, integration and integrative unity.

Behavioral approach or Human relations Theory

Motivation becomes a key issue in the 20th century within organizations. Theories and principles developed so far were not useful to deal with many management situations and also fail to explain individual behavior in organizations. As a result human relation approaches or behavioral approaches were introduced aimed at understanding how psychological and social processes interact with the work situation to influence performance. It addresses the human dimension of work. Behavioral theorists believed that a human relation was the first major approach to emphasize informal work relationships and worker satisfaction.

Page | 12

In order to improve productivity, avoid conflicts, and group behavior a better understanding of human behavior at work is necessary.

Elton Mayo

The Hawthorne studies a series of experiments conducted from 19241932 that rigorously applied classical management theory only to reveal its shortcomings. The first study was conducted to investigate the influence of physical working condition on worker‘ productivity and efficacy, particularly the lighting in the factory, when altering in lighting in the factory no systematic relationship between the factory lighting and production level found. In other case, illumination was reduced to the level of moonlight and proportionally productivity continued to increase until the employees were unable to see what they were doing, after which performance naturally declined. The observations of researchers made them surprise and they believe that productivity is affected more by psychological and social factors rather than physical or objective influences.

In the second experiment Harvard researchers Mayo and F. J. Roethlisberger supervised a group of five women in a bank wiring room. They gave the women special privileges, such as the right to leave their workstations without permission, take rest periods, enjoy free lunches, and have variations in pay levels and workdays. This experiment also resulted in significantly increased rates of productivity.

The foregoing researches concluded that productivity is increased due to supervisory conditions rather than the changes in lighting or other associated worker benefits.

The general conclusion from the Hawthorne studies was that human relations and the social needs of workers are crucial aspects of business management. This principle of human motivation helped revolutionize theories and practices of management.

Abraham Maslow (1908-1970)

Another noted contributor and a practicing psychologist to the field of human relations was Abraham Maslow. He was an eminent American psychologist; developed most widely recognized need theories. He believed motivation based upon a consideration of human needs. His theory of human needs had three assumptions:

� Human needs are forever and never completely satisfied.

� Human behavior is purposeful

� Needs may be classified according to a hierarchical structure of importance, from the lowest to highest.

Page | 13

According to Maslow human have five levels of needs: Physiological needs, such as food water and shelter, these are biological needs

required to peruse human life. After the need is satisfied, however, it is no longer is a motivator. Next, we concern ourselves with Safety need,

which a person wants protection from physical dangers, economic security and free from

threats to our existence.

Figure1.2:Maslow

Motivation Theory Once

safety needs are reasonably satisfied, people turn their attention to Belonging needs, needs that

involve need for belonging, need for acceptance, need for love and affection, etc. which an individual strives to establish meaningful relationships with

significant others. Once having good relation with support from belonging needs, we focus on Esteem needs, which are related to self-confidence, status, reputation, fame, and glory in the society. Final level, Self-actualization needs, which are the needs for realizing one‘s full potential, for continued self-development, for being creative. Maslow‘s hierarchy of needs theory helped managers visualize employee motivation.

Douglas McGregor (1906-1964)

McGregor spent most of his career as a professor of industrial management at Massachusetts Institute of Technology and developed a well-known dichotomy, Theory X and Theory Y. He believed that Theory X and Theory Y approach helps managers to understand nature of workers and new alternatives for interacting with them. This approach deals with the possible assumption that manager make about workers.

Theory X managers have a negative view of employees and assume that they are lazy, untrustworthy, incapable of assuming responsibility, and are mainly focused on security needs. In contrast, the Theory Y managers assume that employees are not only reliable and able of self-control, assuming responsibility, but also have high degree of motivation.

Page | 14

A central feature of McGregor's idea was his belief that managers who hold either set of assumptions can make self-fulfilling prophecies — that through their behavior; these managers create situations where subordinates act in ways that confirm the manager's original expectations.

Quantitative Management

During World War II, military planners found importance of mathematical techniques and apply to solve defense and logistic problems. Later this period many private corporation were used quantitative techniques to solve complex issues confronting in their organizations. This approach is termed as Quantitative management, many management decisions and problems solved through the application of quantitative analysis. This consists of several branches, described in the following sections.

Management science

This approach helps a manager make effective decisions by using mathematical models and specific quantitative methods. These include statistical decision theory, linear programming, and queuing theory, simulation, forecasting inventory modeling, network modeling and break even analysis. Computer models make possible to figure out the best way to do something — saving both money and time. Hence, managers are using computers in several science applications.

Operations management

Another branch of quantitative management and function of expertise focuses on managing the production and delivery of an organization‘s products and services. Effective operations management concerns production planning, work scheduling, inventory management, facilities and quality assurance. Operations management today pays close attention to the demands of quality, customer service, and competition because it is a specialist to apply quantitative techniques such as inventory analysis, forecasting methods, quality control techniques, material requirement plans, and other control techniques.

Page | 15

Management information systems

Management information system is a planned system of collecting, storing and disseminating data in the form of information needed to carry out the functions of management, it was an idea to apply the computer in the business area focused on data then come an emphasis on information and decision support all levels of company. In many industries computer based information system are becoming more powerful. Information systems enable the firm to increase its revenue or decrease its costs by providing information that helps managers make better decisions or that improves the execution of business processes. For example, the information system for analyzing supermarket checkout data can increase firm profitability by helping managers make better decisions on which products to stock and promote in retail supermarkets and as a result increase business value. 1.10 SUMMARY

Management is the process of achieving organizational goals through engaging in the five functions of planning, organizing, staffing, leading and controlling by utilizing human, financial and material resources. Management applies to any kind of organization and concerned with productivity. Levels of management divided into three categories: first-line, middle, and top level management, it is shown in Figure-1.1.Top level Managers are senior executive of an organization, middle level managers are also called tactical managers, and lower level or operational managers are responsible to supervise the operations of the organization.

Mangers are more important because success or failure of an enterprise relies on the managing abilities of manager. Managers carry out the functions of planning, organizing, staffing, leading and controlling. Manager should have conceptual, human relation, and technical skill to perform management functions. Mangers perform set of behaviors and roles in order to execute authority and power in many ways it is shown in Table-1.1.

Management is both a science as well as an art. The science of management delivers certain general principles which can direct the managers in their professional effort. The art of management comprises in engaging every situation in an effective manner. There are many theories about management, and each contributes something to practices of management growth.

Page | 16

1.11 QUESTIONS FOR DISCUSSION

1. Define ―managementǁ? What are managerial functions?

2. Describe levels of management. What are the basic skills required in management?

3. Elucidate importance of management and delineate the role of manager in business.

4. What are the levels of manager?

5. Is management a science or art?

6. What is the contribution of F.W.Taylor to the management? 7. Explain

14 principles of management contributed by Henri foyal. 8. Who made

contributions to behavioral approach? Explain in detail. 9. Discuss the

statement: Management learned through books or through

experience.

Page | 17

CHAPTER -2

PLANNING AND DECISION MAKING

Learning objectives After reading this chapter, you will be able to understand:

� The nature of planning

� What are different types of plans

� Planning process

� Potential obstacles to planning

� Decision making

� Decision making process

� Types of decisions � Conditions that influencing decisions

2.1 INTRODUCTION

Planning is the process of achieving goals by systematic decision making of objectives and individual, group, business unit activities that will perform in future. It is inherent everything what a manger does perform. This chapter discusses planning fundamentals, benefits and overall planning process.

Planning is the most basic of all managerial functions, occurs in every organization, by every manager. It involves systematic procedure of taking decisions about organizational goals and objectives what will pursue in the future. Conscious and formal plan enables manger quick response to crisis, design an environment for the effective performance, actively accept the future, and organize human and organizational activities towards goal attainment.

The manager who attempts job without planning can be resulted in unforeseen failures. For example hiring and firing employees without plan cause letdown of employee motivation and result in high employee turnover. Appropriate planning is the heart of the success. It

provides a map to work out function, choosing missions and objectives and the arrangements to attain them. Planning also implies strong managerial innovation.

Page | 18

2.2 TYPES OF PLANS

All managers plan to success in achieving objectives, plans can help managers achieve their organization's goals. Single plan does not be carried in all areas of organization; manager should go up with a variety plans for effective managerial performance. Success and failure of plans lay on managerial innovation and implication of plans. Plans can be classified as; strategic plans, operational plans, strategic plans and contingency plans. Table 2.1 has presented types of plans.

Strategic plans

Strategic plans are developed by top management to make long term goals and strategies. Generally, strategic plans cover a relatively long tim5 years time period, encompasses some times that may be extended 3 to 5 years. Senior managers are involved for development and execution of plans. Strategic plans address issues such as how to respond to changing market condition, how to allocate resources and what actions require. For example, at Automobile Company, strategic planning considers the future 5 years ahead. Tactical plans

A set of plans that relevant to distinct department like production and marketing to achieve strategic goals developed by strategic plans. Tactical plans developed by middle level managers based on strategic plans of organization, usually these encompasses 1 to 3 years time period. Tactical plans are crucial and more specific than strategic plans; managers may consider possibilities before setting a plan, because tactical plans are important to the success of strategic plans. For example, middle level managers at Automobile Company production develop tactical plans on monthly schedules.

Operational plans

A set of plans developed to support implementation of tactical plans and achievement of operational goals. Front line mangers or low level mangers develop plans, very short period of time (less than one year), such as daily, weekly and monthly requirements of human and physical resources and delivery schedules. Operational plans are key for achieving tactical and strategic plans, unless achieving operational goals, tactical and strategic goals will not be successful. The organization‘s plans at all levels must be constant and supportive.

Contingency plans

Contingency plans address alternative course of action what to do when the original plan does go wrong. Unexpected problems and events frequently occur, predicting them and preparing solutions for all assumptions cannot be possible.

Page | 19

What managers should so is find most critical assumption of the current plans and then generates contingency plans for problems that have a reasonable chance of occurring.

Table-2.1: Types of plans

Plans Time period Range Functions

S

Strategic plans 5 years Long range Address issues such

as how to respond

changing market

condition and how to

allocate resources,

what actions required

Tactical plans 1 to 5 years Mid-range Departmental plans to

achieve strategic goals

Operational plans Less than one Short range Address daily, weekly

year and monthly

requirements

2.3 THE PLANNING PROCESS

A good preparation of planning can be important to the success of an organization. The important steps followed during planning are shown in the figure 2.1.

Step one: Preparing objectives

Setting objective is the first step of planning process and once manger sets organizational objectives (goals) planning process is initiated to attain these goals. Planning establish objectives for entire organization and then each department and subordinate work on it. Objectives preparation to be done for long term and short term, these specify the expected results. Plans are directed by enterprise objectives.

Page | 20

Step two: Situational analysis

Situational analysis is the study of past events, examines current condition and tries to predict future trends. It gathers extensive information from external groups, for example an international hotel gathered information from external groups such as consumers, suppliers, government, travel agencies and tour operating agents. Data from tourism has collected to make projections on number of pilgrims have been visiting to that city and studying historical data that pilgrims had been visited so for. Situational analysis allows manager to evaluate the present situation and analyze the organization‘s environment.

Figure-2.1: Planning process

Preparing objectives

Situational analysis

Identify alternative plans

Evalua ting and comparing alternative

plans

Choosing best plan Implementa

tion Monitor and

control

Page | 21

Step three: Identify alternative plans

The third step in planning is to find alternative course of action. Alternative actions may lead to attainment of objective. Alternative plans are distinct way to reach the objectives. In order to identify alternatives manager needs to create as many ways as possible.

Step four: Evaluating and comparing alternative plans

In order to evaluate potentiality of alternatives manager need to list out the advantages and disadvantages. After seeking advantages and disadvantages decision maker needs to estimate amount of resources and time each alternative will require. Calculating risk, profitability, and better suit the company objective are necessary for evaluating alternatives performance.

Step five: Choosing best plan

At this point, the management team needs the most appropriate and feasible plan- the point of decision making. Sometimes, manager

face a situation that no one alternative emerges as the best, analysis and evaluation of alternatives will disclose that two or more are

advisable, and the manager need to select combination of alternatives rather than one best one. This is a situation rarely appears with

alternative courses. Step six: Implementation

Implementation is crucial step to achieve the goals. Plans must implement as they designed unless they are useless. Subordinates are directed to understand the plan, have the resources to implement it and be motivated to do so. Participation of managers and employees will make implementation probably more effective and efficient.

Step seven: Monitor and control

It is essential for each planning process monitoring and controlling. Sometimes it is ignored, but it is repetitive and ongoing process, the manager must monitor the progress of the work according to the objectives and plans. The planning environment frequently demands changes due to improper implementation. Effective control systems of organization support to take corrective actions against implementation failures. The concept of controlling is discussed in detail in chapter-8.

Page | 22

2.4 POTENTIAL OBSTACLES TO PLANNING

In order for plans to be effective, manger must identify obstacles threaten the ability of organizations to develop effective plans. The first major potential obstacle rapidly changing environment, planning is more

difficult because plans should be alter frequently, the dynamic nature of present market and completion cause to rapid change in business environment, obstacle for standard plans at different level of organizations. Secondly, day to day work pressure of managers, work

pressure keep managerial attention away from doing planning and results in low involvement of mangers and lack of commitment to planning process. Another potential obstacle, poor preparation of line mangers, line level managers are not trained in terms of their knowledge and skills, as fourth obstacle inferior information, lacking updated information probably fails planning. At last, low involvement of mangers, a critical barrier for planning. Concentrating on the things and

events that they can control does not make planning effective. Failing to consider uncontrollable variables like poor economy and outside factors are impediment to political plans.

2.5 DECISION MAKING

―Decisions directing someone to do somethingǁ, enterprises need a

direction to achieve their goals. That makes organizations to hire best decision makers; those are none other than managers. Many organizations are treating managers as decision maker to keep and direct organizations in right direction with right phase. Problems are frequent gusts to organizations, in order to treat them good way

managerial intelligence in decision-making must be required. The best managers make decisions constantly and make them well. In fact, mangers decision making typically require all of the basic management functions: planning, organizing, staffing, leading and controlling. Each of these functions typically centers crises, all of them require decisions.

Some authors use the term for manager as problem solvers. In fact, when problems emerge constant decisions required to solve out. Managers are seldom encountering problems in the job, taking constant decisions and make them right. Some other authors use the term decision makers to mean managers. Although many peo -0ple are taking best decisions in their daily life, not all are managers. Managers make decision in many cases to pursuit of organizational goals. It is the result of intelligence and choice selection of manger.

Page | 23

2.6 The Decision Making Process

The process of decision making involves generating and evaluating alternatives and making choices among them. Whether a decision is programmed or none programmed and regardless of managers‘ choice of the classical, administrative, or political model of decision making, a decision making has typically have six steps. The following procedure (figure-2.2) can be helpful in arriving at a correct decision.

Seeking the problem

The first step in decision making is to knowing the problem. Problems generally arise when accomplishment of goals is not as much of established goals. Managers are taking decisions bad decisions in many cases because they does not seeking a good grasp

Figure-2.2: The Decision Making of the problem. Hence, understanding the Process problem before taking decision making can • Seeking the problem help in avoiding bad Step-1

decisions. Seeking the problem itself does not • Generate alternatives give solution, in addition Step-2

a manager must have

talent and managerial Identifying

in solving, decision making implementing

problem

• Evaluation

of alternatives Step-3

skills.

trouble •

Choose the

best alternativ

Step-4 causing things and spending sufficient time and energy on defining

• Implementing the problem helps Step-5

manager to understand the problem clearly. Few examples for problems which generally appeared in organizations are identified here under bellow.

� Poor market research

� Poor design process; poorly trained

employees � Rate of pay too low; job design not

suitable � Lack of communication between management and

subordinates � Employees believe that they are not valued

Page | 24

Generating alternatives

The next step in the decision making process is generating alternative courses of action. A problem can typically be solved in number of ways but to study for quick decisions a manager should think through and investigate several alternative solutions. However, studying each alternative performance, success rate, possibilities of implementing and other constrains which will appears while implementing are performance indicators of managerial decision skills. At this point in the decision-making process, however, it is important to consider all feasible ways by which the problem can be solved.

Evaluation of alternatives

Evaluation of alternatives can be done in several ways. Identifying advantage and disadvantages of each alternative is one way that managers usually following. In addition, cost-benefit analysis, determine pros and cons, and weighing and ranking each alternative are methods that are provided to managers to fine decision.

Regardless of the methods used, a manager needs to weigh up each alternative in terms of its Feasibility (Can it be done?), Effectiveness (How well does it resolve the problem situation?), Consequences (What will be its costs to the organization?), Risk, Time and limitations of resources.

Choose the best alternatives

The best alternative is always capable of meeting overall goals and values of the organization and achieves the desired outputs using the resources. Certain cases demand manager not to select one alternative but combinations of few. This is the situation problem is not solved by selecting alternative due to its critical nature. Selections of choice rely on managerial efficiency that reflects in manager‘s personality factors and willingness to accept risk and uncertainty. The abilities of manager such as managerial, administrative and persuasive skills are ensure that the chosen alternative is carried out.

Implementing

The job of a manager does not end with choosing the best alternative further he is responsible to put the alternative into practice, then only alternative will serve its purpose. The manager is not only paid to taking a decision, but also with its implementation. Positive results must follow decisions. He should try to ensure that systematic steps are taken to implement the decision.

Page | 25

Monitor the chosen solution

Appropriate implementation is necessary for all processes but it does not make decisions right, it is essential to manager to check the results later than putting the decision into practice. Monitoring facilitates performance of ongoing actions, feedback, adjustment required and corrective measures.

A manager has to evaluate his decision and whether the decision is good or bad, are problems resolved? And in taking right decisions in the future monitoring function is necessary.

2.7 TYPES OF DECISIONS

Programmed Versus Non-Programmed Decisions:

According Professor Herbert Simon two types of decisions generally exist in any organization. First programmed decisions which are routine and

repetitive in nature, designed in advance with standard rules to solve recurring problems. Programmed decisions are developed for specific purposes due to this reason these impact is short-run. Generally operational decisions are come under this category.

Non-programmed decisions are dynamic in nature, which are for

nonrepetitive problems. Managers always do not predict problems and keep readymade solutions. Unusual problems frequently appear in organizations for which various alternatives cannot be decided in advance, non-programmed decisions are used to solve such strange and odd problems. These are taken at top level so that referred as strategic decisions.

Strategic Versus Tactical Decisions

Strategic decisions are taken at top level management for which policy issues, planning of the enterprise and procedural changes. Since these having crucial importance will affect whole business. CEO, board of directors, and top management teams concerning of strategic decisions. Merger with another company, product line, distribution networks, new products development, and entry of new markets are examples of strategic decisions. On the other hand tactical decisions are regular and routine and derived out of strategic decisions. They are generally concerned with day to day operations to execute policy decisions and taken place at lower levels of management due to programmed in nature. Individual and group decisions:

Individual decisions perform lesser than group decisions. In many cases group decisions work out better perhaps many people participating to make decision. Individual decisions are those decisions which are made by one person - whether owner of the company or by a senior manager.

Page | 26

On the other hand, group-decisions are the decisions taken by a group of managers - board, team, committee or a sub-committee. Most common disadvantage of group decisions is more time consuming.

2.8 CONDITIONS THAT INFLUENCE DECISION MAKING

Under three different conditions generally manager using his/her decision making skills: certainty, risk, and uncertainty. All managers make decisions under each condition, but risk and uncertainty are common to the more complex and unstructured problems faced by top managers.

Certainty

Certainty environment provides manager perfect knowledge of all the information needed to make a decision. Certainty is an ideal condition for problem solving. Choosing the best solution from alternatives remained as challenge for certainty condition. Programmed decisions are applied to problems which arise on a regular basis these are standard and predetermined responses. Past experience is source to provide solutions. A good example is the decision to reorder inventory automatically when stock falls below a determined level. Structured problems are familiar, straightforward, and clear with respect to the information needed to resolve them. A manager can often anticipate these problems and plan to prevent or solve them.

Risk

Risk is a condition a manager faces ambiguity of choosing best alternative. Difficulties arise in risk environment due to lacking complete information. Understanding the problem and the alternatives is possible but has no assurance how each solution will work. A manager should weigh the risks of each course of action against the expected gains. Risk taking shows the willingness of manager to take or avoid risk and it is a fairly common decision condition for managers.

When new and unfamiliar problems arise, non-programmed decisions are specifically tailored to the situations at hand. The information requirements for defining and resolving non-routine problems are typically high. Although computer support may assist in information processing, the decision will most likely involve human judgment. Most problems faced by higher-level managers demand nonprogrammed decisions. This fact explains why the demands on a manager's conceptual skills increase as he or she moves into higher levels of managerial responsibility.

Page | 27

Uncertainty

Conditions of poor or zero information make uncertain environment, changes in organization brings uncertainty. Finding alternatives is very tough when poor information emerge even manager can‘t assign probabilities to the likely outcomes of alternatives finally decisions are made in uncertain environment. This condition is the most difficult for a manager. Decision making under conditions of uncertainty is like being a pioneer entering unexplored territory. Uncertainty forces managers to rely heavily on creativity in solving problems: It requires unique and often totally innovative alternatives to existing processes. Groups are frequently used for problem solving in such situations. In all cases, the responses to uncertainty depend greatly on intuition, educated guesses, and hunches — all of which leave considerable room for error.

These unstructured problems involve ambiguities and information deficiencies and often occur as new or unexpected situations. These problems are most often unanticipated and are addressed reactively as they occur. Unstructured problems require novel solutions. Proactive managers are sometimes able to get a jump on unstructured problems by realizing that a situation is susceptible to problems and then making contingency plans.

2.9 SUMMARY

Planning is inherent everything what a manger does perform. It is the most basic of all managerial functions, occurs in every organization, by every manager. The manager who attempts job without planning can be resulted in unforeseen failures. Success and failure of plans lay on managerial innovation and implication of plans. Plans can be classified as; strategic plans, operational plans, strategic plans and contingency plans. A good preparation of planning can be important to the success of an organization. The steps of planning are presented in the figure 2.1. A manger must identify obstacles threaten the ability of organizations to develop effective plans.

―Decisions directing someone to do somethingǁ, enterprises need a

direction to achieve their goals. That makes organizations to hire best decision makers; those are none other than managers. The process of decision making involves generating and evaluating alternatives and making choices among them. Figure-2.2 can be helpful in arriving at a correct decision. Decisions are classified as programmed versus nonprogrammed, strategic versus tactical, and individual versus grouped decisions. . All managers make decisions under each condition, but risk and uncertainty are common to the more complex and unstructured problems faced by top managers.

Page | 28

2.10 QUESTIONS FOR DISCUSSIONS

1. Define planning. Why planning is necessary in organizations? 2. Briefly explain types of plans. 3. What are the key steps of planning process? 4. Explain potential obstacles of planning? 5. Discuss why planning necessary in an organization. Give one example. 6. What is decision making?

7. What are the stages of decision making process? 8. Explain types of decisions. 9. Discuss the condition that influencing decision making.

Page | 29

CHAPTER -3

ORGANIZING

Learning objectives

After reading this chapter, you will be able to understand:

� Define organizing.

� The nature of organizing. � Explain Organizing process.

� Discuss how Formal and informal organizations are differentiated.

� Why organizing?

� Importance of Centralization versus decentralization,

� Identify Approaches to organizational design

3.1 Introduction

Manager should be good organizer of organizational functions because a good organizing structure clearly describes a depiction for reporting structure and activities that are carried out by different employees. Organizing is function which grouping necessary activities to attain objectives, these activities are many in number such as plans implementing, grouping of activities into jobs, assignment of jobs to individuals and departments, authority and responsibility delegation and coordination of activities. Hence, organizing is vital function of management to make efficient organization, perform functions smoothly and success the enterprise.

Further Structure of the organization is one which can decide organizational success, whether authority is centralized or decentralized, how to handle responsibility, how to get the work done and control and command structure all rely on organizational structure.

3.2 DEFINITIONS

Organizing connotes different meanings and many authors have attempted to state the nature of this function. Some of the definitions are given bellow.

Koontz and O‘Donnel defined organizing is a function of “Grouping of activities necessary to attain enterprise objectives and the assignment of each grouping to a manager with authority necessary to supervise it”.

According to Louis A. Allen,“Organizing is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work more effectively together in accomplishing objects”.

Page | 30

Joseph L.Massive defined, “The structure and process by which a cooperative group of human beings allocates its tasks among its members, identifies relationship, and integrates its activities towards common objectives”.

And also “it is the process of establishing the orderly use of resources by assigning and coordinating tasks and deployment of people and resources.

The above definitions are stating organizing function has many sub functions such as grouping activities, allocates tasks, managing authority, delegating responsibility, establishing relationship, and orderly use of resources

3.3 THE ORGANIZATIONAL PROCESS

Organization is the process of creating structure for the attainment of goals through establishing relationships, defining authority and responsibility and division of work. The end result of the organizing process is an organization — a whole consisting of unified parts acting in harmony to execute tasks to achieve goals, both effectively and efficiently.

According to Louis A Allen, ―Organizing involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organizational objectives.ǁ But organizing people is a tough task however to make it easier and simple organizational process is most useful, it consists of five steps:

1. Identifying objectives

Determining objectives is the preliminary task to setup an

organization. A perfect organizational structure is built upon the

objectives of the enterprise. Objectives will consist in deciding as to

why the proposed organization is to be set up and, therefore, what will

be the nature of the work to be accomplished through the organization.

2. Enumeration of Objectives

Although this task may seem overwhelming to some managers, it doesn‘t need to be. Managers simply list and analyze all the tasks that need to be accomplished in order to reach organizational goals.

3. Classify activities

The next step will be to classify activities according to similarities and common purposes and functions and taking the human and material resources into account.

Page | 31

Then, closely related and similar activities are grouped into divisions and departments and the departmental activities are further divided into sections.

4. Assign activities and delegate authority.

Managers assign the defined work activities to specific individuals. Also, they give each individual the authority (right) to carry out the assigned tasks.

5. Design a hierarchy of relationships.

A manager should determine the vertical (decision -making) and horizontal (coordinating) relationships of the organization as a whole. Next, using the organizational chart, a manager should diagram the relationships.

3.4 WHY ORGANIZING?

Effective organizing depends on the mastery of numerous significant concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. Many of these concepts are based on the principles developed by Henri Fayol.

Work specialization/Division of labor

Dividing labor has many benefits which known from centuries, in fact the process of organizing is division of labor. Employees can work more efficiently if they‘re allowed to specialize and is the degree to which organizational tasks are divided into separate jobs. Employees within each department perform only the tasks related to their specialized function. To illustrate work specialization considers when employees are specialized in a single task, jobs tend to be small and workers can perform efficiently. In contrast, if a single employee doing large number of unrelated job in a bottling plant, it would not produce efficient results.

Specially, division of labor can results in many benefits as following. 1.

Person requires few skills to perform the job. 2. Training employees is easy due to limited skills. 3. Proficiency develops in the jobs 4. Possible to efficient use of skills.

5. Ensures quality in products when each piece is always produced by the same person. 6. Possibility of concurrent operations.

Despite the apparent advantages of specialization, many organizations are moving away from this principle.

Page | 32

The major problem of the principle is that it can result in boredom and degradation of employees and also if an employee become bored productivity declines. In addition, when one employee leaves the company, his specialized knowledge may disappear as well. In order to face this challenge companies are using techniques such as job rotation, reexamination of job scope and job simplification with job depth.

Chain of command

The chain of command is an uninterrupted line of authority that links all persons in an organization and defines who reports to whom. This chain has two underlying principles: unity of command and scalar principle.

� Unity of command:

The concept of unity of command is developed by Henry Fayol. The unity of command principle refers to one employee should be accountable and answerable to a single superior. It makes a sense of responsibility to one person for results. Otherwise, if employee should report to more than one superior he may receive conflicting demands from many supervisors at a time which cause to confusion, loss of productivity, conflict and low morale. ―No man can serve two masterǁ the words of Jesus, a person place in a no -win

situation if he serves two or more. Sometimes, however, an organization deliberately breaks the chain of command. Unity of command can develop organizational structure that makes sure employees clearly understand the line of authority.

� Scalar principle: the scalar principle states that a clearly defined

line of authority flow in the organization that links chain of managers at a time, ranging from the highest to the lowest ranks. This principle is based on unity of command and need for the communication.

Authority

A manager need Authority for functioning of organization, it

resides in positions rather than in people. Authority in an

organization is defined as ―the formal and legitimate right of a

manager to take decisions, order subordinates, and allocate

resources to achieve desired outcomes of enterpriseǁ. Owner having

ultimate authority in private enterprises, in small business the

owner also acts manager and sometimes he hires employees to

oversee business. Owner is delegating some authority to manager to

organize operations but manger is accountable to report. It is simply

primary means of running organization. A manager‘s authority is

defined in his or her job description.

Page | 33

Organizational authority has three important underlying principles: �

Authority is based on the organizational position � Authority is

accepted by subordinates. � Authority flows down the vertical

hierarchy. Levels of authority

Authority comes in three ways in organizations; line authority, staff authority and functional authority. Line managers are in charge of essential activities such as sales, and they are authorized to issue orders to subordinates down the chain of command . Staff authority supports line authority by advising, servicing, and assisting, but this type of authority is typically limited. Functional authority is authority delegated to an individual or department over specific activities undertaken by personnel in other departments.

Delegation

It is a concept related to authority. Authority is delegated to the lower levels in the organization which is downward transfer of authority from superior to subordinate. Delegation grants authority to subordinates to carry out assigned tasks with responsibility which may include right to use resources, spend money, engage people, etc.

Managers need to take four steps if they want to successfully delegate responsibilities to their teams.

1. Specifically assign tasks to individual team members.

2. Give team members the correct amount of authority to accomplish assignments.

3. Make sure that team members accept responsibility. 4.

Create accountability Span of control or span of management

Span of control is defined as number of subordinate who report directly to a manager. Theorist did not found exact rule to determine the correct span of control and manger‘s ability to control number of subordinates, so it is remained as a question for several years. V.A. Graicunas developed a mathematical expression in 1930s to define span of control by determining superior and sub ordinate relationships. The mathematical expression as follows

2 ݊◌

◌ܴ = 2[ 2 + ݊◌ � 1 �

Where

Page | 34

R=the number of relationships

n= the number of subordinates According to V.A. Graicunasthe expression considers not only the direct relationship between a superior and their direct subordinates, but also the relationships with different groupings and the crossrelationships among subordinates.

Centralization versus decentralization

The structure of authority throughout an organization determines the degree to which that organization is centralized or decentralized.

A centralized organization systematically works to concentrate authority at the upper levels. In a decentralized organization, management consciously attempts to spread authority to the lower organization levels.

A variety of factors can influence the extent to which a firm is centralized or decentralized. The following is a list of possible determinants:

� The external environment in which the firm operates

� The nature of the decision itself.

� The abilities of low-level managers. � The

organization’s tradition of management. In principle, neither philosophy is right or wrong. What works for one organization may or may not work for another. Kmart Corporation and McDonald‘s have both been very successful — both practice centralization. By the same token, decentralization has worked very well for General Electric and Sears. Every organization must assess its own situation and then choose the level of centralization or decentralization that works best

3.5 THE FORMAL AND INFORMAL ORGANIZATION

Formal organization is a clearly defined structure refers to jobs and positions are clearly defined. It is built to understand enterprise objectives and is bound by rules, systems and procedures. Everybody is assigned a certain responsibility for the performance of the given task and given the required amount of authority for carrying it out. Informal organization does not appear in any organizations and supplements the formal organization in achieving organizational goals effectively and efficiently.

Page | 35

Formal organization

The position, authority, responsibility and accountability of each level are clearly defined in formal organization, it is laid down by the management and people relations are clearly prescribed to achieve organizational goals. Four important principles are considered to build formal organization. They are structure, division of labor, span of control and scalar chain.

Informal organization

Organizations are having hidden chats in addition to formal organizational structure which do not show up on formal organizational chart. Theinformal organization is defined by relationship between people in the organization based on personal attitudes, emotions, prejudices, likes and dislikes.

In the informal organization, the emphasis is on people and their relationships; in the formal organization, the emphasis is on official organizational positions. The leverage, or clout, in the informal organization is informal power that‘s attached to a specific individual. On the other hand, in the formal organization, formal authority comes directly from the position. An individual retains formal authority only so long as he or she occupies the position. Informal power is personal; authority is organizational. Differences between formal and informal organizations are given table 3.1.

Table-3.1: Differences between formal and informal organization

Formal organization 1. Established with clear aim

2. It is bound together by authority relationships among members. 3. Tasks and actives are well defined 4. Relationships among people impersonal. 5.Emphasis is on efficiency, discipline, conformity, consistency and control. 6. The communication system in formal organization follows certain predetermined patterns

informal organization 1. Goals are ill defined and immaterial. 2. It is characterized by a generalized sort of power relationships. 3. It does not have well

defined tasks. 4. People relationships interpersonal 5. Emphasis is on relative freedom, spontaneity, homeliness and warmth. 6. In informal organization, the communication pattern is haphazard, Intricate and

natural.

Page | 36

Firmly embedded within every informal organization are informal groups and the notorious grapevine; the following list offers descriptions of each:

� Informal groups. Workers may create an informal group to go

bowling, form a union, discuss work challenges, or have lunch together every day. The group may last for several years or only a few hours. Sometimes employees join these informal groups simply because of its goals. Other times, they simply want to be with others who are similar to them. Still others may join informal groups simply because they want to be accepted by their coworkers.

� The grapevine. The grapevine is the informal communications

network within an organization. It is completely separate from — and sometimes much faster than — the organization‘s formal channels of communication.

Formal communication usually follows a path that parallels the organizational chain of command. By contrast, information can be transmitted through the grapevine in any direction — up, down, diagonally, or horizontally across the organizational structure. Subordinates may pass information to their bosses, an executive may relay something to a maintenance worker, or employees in different departments may share tidbits.

Grapevine information may be concerned with topics ranging from the latest management decisions to the results of today‘s World Series game to pure gossip. The information may be important or of little interest. By the same token, the information on the grapevine may be highly accurate or totally distorted

3.6 APPROACHES TO ORGANIZATIONAL DESIGN

An organization‘s structure is pattern of network defined by its configuration and interrelationships of positions and departments. Organizational design is the creation or change of an organization‘s structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.

Managers must make choices about how to group people together to perform their work. Five common approaches — functional, divisional, matrix, team, and networking—help managers determine departmental groupings (grouping of positions into departments). The five structures are basic organizational structures, which are then adapted to an organization‘s needs.

Page | 37

Functional structure

The functional structure groups work on similar activities, skills, expertise, and resources (see figure-3.1for a functional organizational chart). Production, marketing, finance, and human resources are common groups within a functional structure. It also called as Uform organization, means the design of structure often for a single product strategy.

A functional structure features well-defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well.

But the functional structure has many downsides that may make it inappropriate for some organizations. Here are a few examples:

� The functional structure can result in narrowed perspectives

because of the separateness of different department work groups. Managers may have a hard time relating to marketing, for example, which is often in an entirely different grouping. As a result, anticipating or reacting to changing consumer needs may be difficult. In addition, reduced cooperation and communication may occur.

� Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized.

� The functional structure gives managers experience in only one

fields—their own. Managers do not have the opportunity to see how all the firm‘s departments work together and understand their interrelationships and interdependence. In the long run, this specialization results in executives with narrow backgrounds and little training handling top management duties.

Page | 38

Figure-3.1: The functional structure

Divisional structure

Grouping of organization is called divisional structure. It is also known as M-form structure. Large organizations are having complexity in keeping path of all their company‘s products and activities. Therefore specialized departments are developed to overcome. These departments are divided according to their organizational outputs. For instance departments created to distinguish among manufacturing, marketing, customer service, personnel and geographical categories. These departments allow managers to better focus their resources and results. Divisional structure also makes performance easier to supervise. As a result, this structure is flexible and responsive to change.

However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other‘s activities and resources. In addition, competition among divisions may develop due to limited resources.

For instance, TATA group of companies are having different division shown in figure. Each division is headed by specialists and they are responsible for all activities of division. Divisional heads are trying to contest each other in order to use limited resources. Figure 3.2 shows an example to divisional structure.

Page | 39

Figure -3.2: Diviosnal Structure

Matrix structure

The matrix structure also called as project structure which combines human and non-human resources in a temporary organization to achieve a specified goal. Since projects have temporary life, matrix structure method was sought so and it does not disrupt existing organization structure. Employees in a matrix structure belong to at least two formal groups at the same time—a functional group and a product, program, or project team. They also report to two bosses — one within the functional group and the other within the team. Figure 3.3 is illustrated matrix structure.

A major advantage of project structure is that the mix of people and resources can readily be change as project needs change. Other advantages include Better cooperation of employees, increased flexibility and performance accountability. On the contrary it has disadvantages as following.

� It can violate the principle of unity of command � Conflicts

among employees due to unclear delineated authority. � Matrix

structures are often costly.

Page | 40

Figure-3.3: Matrix structure.

Product based structure

Product based structure also called H -form structure. Now a day‘s enterprises involve in several unrelated business these are using product based structure, a design based on product. Each line of business headed by company president and operates independently. Line heads are responsible for all functions of the business. Since all lines are operating independently poor coordination exists among business line. Figure 3.4 shows the basic structure of the H -form organization.

Page | 41

Figure 3.4: Product based structure

Product based structure enables limited interdependence of the business, overall organizational flexibility, and reduced risk. It can adjust its mix of business by buying or selling units without disrupting the others. Managing different types of business is difficult to enterprises, because of this performance of the organization is poor, and boundary less behavior (the sharing of ideas and expertise across traditional product, functional, and hierarchical divisions).

Network structure

The network structure relies on other organizations to perform critical functions on a contractual basis (see figure3.5). In other words, managers can contract out specific work to specialists.

This approach provides flexibility and reduces overhead because the size of staff and operations can be reduced. On the other hand, the network structure may result in unpredictability of supply and lack of control because managers are relying on contractual workers to perform important work.

Page | 42

Figure-3.5: Network Structure

3.7 SUMMARY

Organizing is function which grouping necessary activities to attain objectives, these activities are many in number such as plans implementing, grouping of activities into jobs, assignment of jobs to individuals and departments, authority and responsibility delegation and coordination of activities. Joseph L.Massive defined, ―The structure

and process by which a cooperative group of human beings allocates its tasks among its members, identifies relationship, and integrates its activities towards common objectivesǁ. Organization is

the process of creating structure for the attainment of goals through establishing relationships, defining authority and responsibility

and division of work. Effective organizing depends on the mastery of numerous significant concepts: work specialization, chain of command, authority, delegation, span of control, and centralization versus decentralization. The position, authority, responsibility and accountability of each level are clearly defined in formal organization. The informal organization is defined by relationship between people in the organization based on personal attitudes, emotions, prejudices, likes and dislikes. An organization‘s structure is pattern of network defined by its configuration and interrelationships of positions and departments. Structure of the organization is one which can decide organizational success, whether authority is centralized or decentralized.

Page | 43

3.8 QUESTIONS FOR DISCUSSIONS

1. What is organizing? Explain the process of organizing. 2. Explain division of labor. 3. Differentiate between authority and delegation.

4. What are the differences between formal and informal organizational structures? 5. Discuss pros and cons of centralization and decentralization. 6. What is the importance of organizational structure in the success of an enterprise? 7. Explain different approaches of organizational structures.

Page | 44

CHAPTER -4

STAFFING AND HUMAN RESOURCE MANAGEMENT

Learning objectives

After reading this chapter, you will be able to understand:

� What is staffing and human resource management

� How human resource planning � Importance recruitment and selection

� Selection process

� Types of interviews � Training and methods � Performance appraisal

4.1 INTRODUTION

―Getting the right people in the right jobsǁ is more important function of

management, the right people is source to create opportunities and solve problems—the wrong people are problem makers. Once organization‘s structural design is in place, it needs people with the right skills, knowledge, and abilities to fill in that structure. Human resources are most important resource and asset to any organization and are either make or wreck enterprise . If the organization getting continually the best people means it is doesn‘t by accident, it is a systematic process that organization following.

Staffing is a function deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals.

Human resource management (HRM), or staffing, is the management

function devoted to acquiring, training, appraising, and compensating employees. In effect, all managers are human resource managers, although human resource specialists may perform some of these activities in large organizations.

Competitive advantage is key domain that all enterprises are looking for, human resources have become key that can provide a competitive advantage but getting skilled employees is a key challenge to the organizations now a days. The most common challenges in front of HR management are as follows:

� Changes in economic and technological environment

Page | 45

� Deficiency in work force availability and quality

� Demographical issues � Organizational restructuring.

As the importance of human factor in organizational effectiveness is being increasingly recognized, staffing is gaining acceptance as a distinct function of management managers must perform the staffing function with as much concern as any other function. Staffing comprises several sub-functions as following.

� Human resource planning and Analysis.

� Recruitment � Selection

� Placement, induction and orientation. �

Transfers, promotions, termination and layoff. �

Training and development 4.2 HUMAN RESOURCE PLANNING

HR planning and analysis is the first step in the staffing process involves and it has several facets. HR planning facilitates managers

attempt to anticipate forces that will influence the future supply of and demand for employees.

Human resource planning (HRP)is the process of analyzing and

identifying the need for and availability of human resources so that the organization can meet its objectives. The function of HRP begins with job analysis, Job description and job specifications presented figure

4.1.

Figure-4.1: Job Analysis

Page | 46

4.3 JOB ANALYSIS

Job analysis is a systematic way to gather and analyze information which about the content and the human requirements of jobs, and the context in which jobs is performed. It contains descriptions of all jobs (tasks) and the qualifications needed for each position are developed.

Job description

It is a written statement of what a jobholder does, how it‘s done, and why it‘s done. Simply, it is Identification of the tasks, duties, and responsibilities of a job and typically portrays job content, environment, and conditions of employment.

Job specification

Job specification states the minimum acceptable qualifications an incumbent must possess to perform a given job successfully. It identifies the knowledge, skills, and abilities needed to do the job effectively.

4.4 RECRUITMENT AND SELECTION

Recruiting and selection involves choosing the person with the right talents and interests for a given job.

Recruiting

Employment rate can decide nature of recruitment either easy or

challenging. Recruiting becomes much more challenging in the past few

years, many reasons we can state to this tough situation such as quality

of labor (knowledge, skills and abilities), rules and legal system,

loyalty and etc.,. Recruitment includes all the activities of an organization

may use to attract a pool of viable candidates and it is the process of

generating a pool of qualified applicants for organizational jobs.

If the number of aspirants equals number of people to be hired it

is not real selection, the real section is done when number of

candidates more than number of jobs. Study of labor market makes

a perfect understanding on recruitment. There are many ways

to identify labor markets, including by geographical area, type of

skill, and educational level. Simply, labor market is an external source

that provides employees to organizations. Keep in mind that recruiting

strategies differ among organizations. Two types of recruitment methods

are in practice in all organizations-external and internal recruiting.

Page | 47

Table-4.1: Sources

planning

Sources of

Recruiting

Internal Sources � Promotion and Transfer � Current

Employee Referrals � Recruiting Former Employees and Applicants � Internal Recruiting Database

External Sources � School Recruiting �College Recruiting �

Labor Unions � Media

Sources � Trade and Competitive Sources �

Employment Agencies � Executive Search Firms � Internet

Recruiting Although one may instantly think of campus recruiting as a typical recruiting activity, many organizations use internal recruiting, or promote-from-within policies, to fill their high-level positions. Open positions are posted, and current employees are given preferences when these positions become available. Internal recruitment is less costly than an external search. It also generates higher employee commitment, development, and satisfaction because it offers opportunities for career advancement to employees rather than outsiders.

If internal sources do not produce an acceptable candidate, many external recruiting strategies are available, including the following Newspaper advertising, Employment agencies (private, public, or temporary agencies), Executive recruiters (sometimes called headhunters), Unions, Employee referrals, Internship programs, Internet employment sites.

Selection

Having the right people on staff is crucial to the success of an organization. Selection is the process of choosing best applicants who have relevant qualifications and skills to fill and perform jobs in an organization. Figure 4.2explains critical steps involved in selection process.

Page | 48

4.5 SELECTION PROCESS

Screening Application forms Figure-4.2: selection process

For most employers, the application form is Initial screening of applications the first step in the selection Application provide a record of salient about applicants for positions, and also furnish personnel

process. forms

Testing

information

Interview

data for

Reference

check up

research.

Interviewers may use Terms and conditions of Job offer responses from the

application for follow

interview. requests

up questions during an These forms range from for basic

Medical Exam

Traini

ng

information, such as Placement names, addresses, and

telephone numbers, to comprehensive personal history profiles detailing applicants‘ education, job experience skills, and accomplishments.

Managers should make sure that their application forms do not ask questions that are irrelevant to job success, or these questions may create an adverse impact on protected groups. For example, employers should not ask whether an applicant rents or owns his or her own home, because an applicant‘s response may adversely affect his or her chances at the job. Minorities and women may be less likely to own a home, and home ownership is probably unrelated to job performance. On the other hand, asking about the CPA exam for an accounting position is appropriate, even if only one-half of all female or minority applicants have taken the exam versus nine-tenths of male applicants. Testing

Testing is another method of selecting competent future employees. Although testing use has ebbed and flowed during the past two

Page | 49

decades, recent studies reveal that more than 80 percent of

employers use testing as part of their selection process.

These tests must be valid and reliable; As a result, a manager needs to make sure that the test measures only job-relevant dimensions of applicants.

Most tests focus on specific job-related aptitudes and skills, such as math or motor skills. Typical types of exams include the following:

� Integrity tests measure factors such as dependability,

carefulness, responsibility, and honesty. These tests are used to learn about the attitudes of applicants toward a variety of job -related subjects. In their place, attitude tests are being used to assess attitudes about honesty and, presumably, on -the-job behaviors.

� Personality tests measure personality or temperament. These

tests are among the least reliable. Personality tests are problematic and not very valid, because little or no relationship exists between personality and performance.

� Knowledge tests are more reliable than personality tests because

they measure an applicant‘s comprehension or knowledge of a subject. A math test for an accountant and a weather test for a pilot are examples. Human relations specialists must be able to demonstrate that the test reflects the knowledge needed to perform the job. For example, a teacher hired to teach math should not be given a keyboarding test.

� Performance simulation tests are increasing in popularity. Based on job analysis data, they more easily meet the requirement of job relatedness than written tests. Performance simulation tests are made up of actual job behaviors. The best-known performance simulation test is known as work sampling, and other credible simulation processes are performed at assessment centers.

� An assessment is a selection technique that examines candidates‘

handling of simulated job situations and evaluates a candidate‘s potential by observing his or her performance in experiential activities designed to simulate daily work.

� Assessment centers, where work sampling is often completed,

utilize line executives, supervisors, or trained psychologists to evaluate candidates as they go through exercises that simulate real problems that these candidates would confront on their jobs. Activities may include interviews, problem-solving exercises, group discussions, and business-decision games. Assessment centers have consistently demonstrated results that accurately predict later job performance in managerial positions.

Page | 50

� Work sampling is an effort to create a miniature replica of a job, giving applicants the chance to demonstrate that they possess the necessary talents by actually doing the tasks.

Interviews

Another widely used selection technique is the interview, a formal,

in-depth conversation conducted to evaluate an applicant‘s acceptability. In general, the interviewer seeks to answer three broad questions:

1. Can the applicant do the job?

2. Will the applicant do the job? 3. How does the applicant compare with others who are being considered for the job?

Interviews are popular because of their flexibility. They can be adapted to unskilled, skilled, managerial, and staff employees. They also allow a two-way exchange of information where interviewers can learn about the applicant and the applicant can learn about the employer.

Interviews do have some shortcomings, however. The most noticeable flaws are in the areas of reliability and validity. Good reliability means that the interpretation of the interview results does not vary from interviewer to interviewer. Reliability is improved when identical questions are asked. The validity of interviews is often questionable because few departments use standardized questions.

Managers can boost the reliability and validity of selection interviews by planning the interviews, establishing rapport, closing the interview with time for questions, and reviewing the interview as soon as possible after its conclusion.

Reference checking allows employers to verify information supplied by the candidate. However, obtaining information about potential candidates is often difficult because of privacy laws and employer concerns about defamation lawsuits.

Medical exams identify health problems that increase absenteeism and accidents, as well as detecting diseases that may be unknown to the applicant.

Orientation and Training Programs

Orientation means providing new employees with basic information about the employer. Training programs are used to ensure that the new employee has the basic knowledge required to perform the job satisfactorily.

Page | 51

Orientation programs not only improve the rate at which employees are able to perform their jobs but also help employees satisfy their personal desires to feel they are part of the organization‘s social fabric. The HR department generally orients newcomers to broad organizational issues and fringe benefits. Supervisors complete the orientation process by introducing new employees to coworkers and others involved in the job. A buddy or mentor may be assigned to continue the process.

Training needs

Training programs are used to ensure that the new employee has the basic knowledge required to perform the job satisfactorily. Simply hiring and placing employees in jobs does not ensure their success. In fact, even tenured employees may need training, because of changes in the business environment. Here are some changes that may signal that current employees need training:

� Introduction of new equipment or processes �

A change in the employee‘s job responsibilities

� A drop in an employee‘s productivity or in the quality of output �

An increase in safety violations or accidents

� An increased number of questions �

Complaints by customers or coworkers

Training methods Most training takes place on the job due to the simplicity and lower cost of on-the-job training methods. Two popular types of on -the-job training include the following:

� Job rotation. By assigning people to different jobs or tasks to

different people on a temporary basis, employers can add variety and expose people to the dependence that one job has on others. Job rotation can help stimulate people to higher levels of contributions, renew people‘s interest and enthusiasm, and encourage them to work more as a team.

� Mentoring programs. A new employee frequently learns his or her

job under the guidance of a seasoned veteran. In the trades, this type of training is usually called an apprenticeship. In white -collar jobs, it is called a coaching or mentoring relationship. In each, the new employee works under the observation of an experienced worker.

Sometimes, training goals cannot be met through on-the-job training; the employer needs to look to other resources.

Page | 52

Off-the-job training can rely on outside consultants, local college faculty, or in-house personnel. The more popular off-the-job training methods are classroom lectures, videos, and simulation exercises. Thanks to new technologies, employers can now facilitate some training, such as tutorials, on the employees‘ own computers, reducing the overall costs.

In addition to training, employers should offer development plans, which include a series of steps that can help employees acquire skills to reach long-term goals, such as a job promotion. Training, on the other hand, is immediate and specific to a current job.

Placement

Once training is completed employees are placed in different positions. Placing the employee in the right job is critical step of placement process. It is last step of selection process; here after employee performance is evaluated on daily, weekly, monthly and yearly.

Evaluating Employee Performance

Employee performance should be evaluated regularly. Employees want feedback—they want to know what their supervisors think about their work. Regular performance evaluations not only provide feedback to employees, but also provide employees with an opportunity to correct deficiencies. Evaluations or reviews also help in making key personnel decisions, such as the following:

� Justifying promotions, transfers, and terminations

� Identifying training needs

� Providing feedback to employees on their performance

� Determining necessary pay adjustments Most organizations utilize employee evaluation systems; one such system is known as a

4.6 PERFORMANCE APPRAISAL

A performance appraisal is a formal, structured system designed to measure the actual job performance of an employee against designated performance standards. Although performance appraisals systems vary by organizations, all employee evaluations should have the following three components:

� Specific, job-related criteria against which performance can be

compared

� A rating scale that lets employees know how well they‘re meeting the criteria

Page | 53

� Objective methods, forms, and procedures to determine the rating

Traditionally, an employee‘s immediate boss conducts his or her performance appraisal. However, some organizations use other devices, such as peer evaluations, self-appraisals, and even customer evaluations, for conducting this important task.

The latest approach to performance evaluation is the use of 360degree feedback. The 360-degree feedback appraisal provides

performance feedback from the full circle of daily contacts that an employee may have. This method of performance appraisal fits well into organizations that have introduced teams, employee involvement, and TQM programs.

4.7 SUMMARY

―Getting the right people in the right jobsǁ is more important function of

management, the right people is source to create opportunities and solve problems—the wrong people are problem makers. Staffing is a function deals with the design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals.HR planning and analysis is the first step in the staffing process involves and it has several facets.

The function of HRP begins with job analysis, Job description and job specifications presented figure 4.1.Recruiting and selection involves

choosing the person with the right talents and interests for a given job. Selection is the process of choosing best applicants who have relevant qualifications and skills to fill and perform jobs in an organization. Figure 4.2presented critical steps involved in selection process. Orientation means providing new employees with basic information about the employer. Training programs are used to ensure that the new employee has the basic knowledge required to perform the job satisfactorily. Placing the employee in the right job is critical step of placement process. A performance appraisal is a formal, structured system designed to measure the actual job performance of an employee against designated performance standards

4.8 QUESTIONS FOR DISCUSSION

1. How does staffing relate to human resource management? 2. What is human resource planning? 3. What is job analysis and job specification? 4. Briefly discuss a model of human resource selection. 5. Describe recruitment and explain some of sources of requirement. 6. Explain two types of interviews.

7. What is training and discuss methods of trying.

8. What is performance appraisal?

Page | 54

CHAPTER-5

COMMUNICATION

Learning objectives

After reading this chapter, you will be able to understand:

� Nature of Communication

� The importance of communication

� Communication process

� The role of communication in the organization

� Communication Methods

� Barriers in communication

5.1 INTRODUCTION

Communication is key element of any organization which coordinates all business activities. The purpose of communication is unique that it exchanges messages between people to achieve common goals. So communication is an indispensible activity in business. Simply put a manager does not manage well in the absence of effective communication. Therefore, when managers foster effective communication, they strengthen the connections between employees and build cooperation. Communication serves major functions that are controlling, motivation and emotional expression. No manager can handle conflict, negotiate successfully, and succeed at leadership without being a good communicator.

"Communication may be defined as the process of meaningful interaction among human beings. It exchange of fact, ideas, opinions or emotions by persons.

"Communication is essential to all managerial actions and it is the process of imparting ideas and making oneself understood by others".Theo Haimann.

"Communication is an intercourse by words, letters symbols or messages, and is a way that the organization members shares meaning and understanding with another". - Koontz and O'Donnell

5.2 THE IMPORTANCE OF COMMUNICATION

Enterprises are fully dependent on communication, without

communication, organizations would not function. Organizations are

effective in performance when is accurate and timely, on other side if

communication is inferior organizations would not function.

Communication is vital to the entire management process for four

primary reasons:

Page | 55

� Links managerial functions: Communication links all managerial functions of planning, organizing, staffing, directing, and controlling. Communication is the heart of all organizations

� Effective decisions: Effective decisions are often reliant upon the

quality and quantity of the information received. If the information on which a decision is based is poor or incomplete, the decision will often be incorrect.

� The most time-consuming activity: Managers spend between

most of their time communicating with employees and other internal and external customers.

� Information and communication represent power in

organizations. An employee cannot do anything constructive in a work unit unless he or she knows what is to be done, when the task is to be accomplished, and who else is involved. The staff members who have this information become centers of power.

5.3 THE COMMUNICATION PROCESS

The aim of communication is transmission of information and meaning prom one person to other person. This process has three major components- sender; medium and receiver.Figure-5.1 shows a general process of communication. A sender sends a message through a medium to the receiver, in this process the sender first creates an idea, which is encoded and composed as message and them transmitted to the targeted party. The sender use appropriate medium to transmit information to the other party. Once message is reached to the other party, he/she decodes the message to get understanding. Developing a message is referred to as encoding and interpreting the message is called as decoding. Figure 5.1 shows steps in communication process.

Figure -5.1: Communication process

Sender: Sender is the source of ideas to communicate message. The

source may be an individual, group, corporation, special committee,

Page | 56

or even a nonhuman speech generator. Each source possesses its own field of experience.

Message: The message is the content that the speaker communicates. It

contains the thoughts and feelings that the communicator intends to evoke in the receiver.

Transmission: The transmission is the means by which the message is

carried. It is also called channel. Visual, auditory, written or some combinations of these three are used to transmit information.

Recipient: Recipient decodes message by interpretation. Decoding is

reliant on the receiver individual ability. The receiver must decode symbols in order to understand the message.

Receiver: The receiver is the object to whom the message is directed.

Feed back: Feedback is the reply communicated by the receiver to the

sender of the message.

If the receiver does not respond to message it is described only one way communication. When a person receives a message, the receiver has to reply to it than sender can understand whether message has reached accurately or not. Hence, feedback is an important component of effective communication. Feedback is most important to a manager to manage his/her daily functions. For example manager has to know how subordinates respond to plans and directions, how work is progressing, how they fell about working conditions, and what their expectations are.

Effective communication, therefore, occurs when the intended message of the sender and the interpreted message of the receiver are one and the same. Although this should be the goal in any communication, it is not always achieved. The most efficient communication occurs at a minimum cost in terms of resources expended. Time, in particular, is an important resource in the communication process.

5.4 THE ROLE OF COMMUNICATION IN THE ORGANIZATION

Effective communication is important in gaining and maintaining the competitive edge in organizations. Communication between manager and subordinate is critical to achieve organizational objectives. Hence, communication is important in the organizations for several reasons, few of them as following.

� To direct employees: Manager is able to direct and

guide subordinate to get the expected work from them, if manger is fail to communicate properly employees perform poor because they do not understand what is expected of them.

Page | 57

� To motivate people: Good manager should have effective

communicating abilities to motivate employees.

� Convincing customers: Effective communication is the key to convincing a customer to purchase a product or service. � To absorb

the ideas of subordinates: Managers should intact with all level of

employees and must able to understand and accept subordinates

ideas and viewpoints.

5.5 METHODS OF COMMUNICATION

The process communication includes speaking or writing message by a sender and listening or reading the receiver which contains nonverbal, oral and written communication. However, some forms of communication do not directly involve spoken or written language.

Nonverbal communication

Nonverbal communication consists of actions, gestures, and behaviors that are not coded into words. Nonverbal communication includes all elements of communication such as physical appearance, gestures, and facial expressions that does not make words or language. It is recognized as a powerful medium of transmitting messages.

At times, a person's body may be ―talkingǁ even as he or she

maintains silence. And when people do speak, their bodies may sometimes say different things than their words convey. A mixed message occurs when a person's words communicate one message,

while non-verbally; he or she is communicating something else.

The actions of management are especially significant because subordinates place more confidence in what managers do than what they say. Unless actions are consistent with communication, a feeling of distrust will undermine the effectiveness of any future social exchange.

Oral communication

The day of a manager mostly engaged with conversing with other managers and employees, presentation to large audience, and meeting with several individuals. Oral communication occurs in face to face communication, telephone conversation and formal presentation of speeches. For example, oral communication skills are used when a Human resource manager must make conduct interviews, perform employee evaluations, and hold press conferences.

Oral communication has the advantage of fast, immediate and direct feedback when compare to written communication.

Page | 58

Managers prefer oral communication because communication tends to be more complete and thorough when talking face -to-face. For example, in face-to-face interactions, manager can notice the other party reactions, can ask questions and clarify points, and immediate feedback. Face-to-face communication permits not only the exchange of words, but also the opportunity to see the nonverbal communication.

However, oral communicating also has disadvantage. Disadvantages include face-to-face can be time-consuming and also leads to spontaneous ill-considered statements.

Written communication

Written communication occurs through variety of means, includes memos, letters, reports and other written documents. Written communication has several advantages that are the message can be received several times, proving records, references, and saves times to manger and receiver has more time to analyze. Written communication is an inexpensive means of providing identical messages to a large number of people. The major disadvantage of written communication is sender does not receive immediate feedback and it may take long time to know whether message has been received and properly understood.

Developing writing skills are often difficult, writing simple, clear, and direct document is key job of good written communication. And believe it or not, poorly written documents cost money. For example, a manager does not prepare letters, memos, sales reports, and other written documents may spell the failure of communication and results in huge loss to the company. For effective written communication following are key points to be mind.

� Develop the message with the receivers in mind

� Draft should contain simple words and short, clear, sentences and paragraphs

� Avoid ―floweryǁ language, euphemisms, and trite expressions

Interpersonal Communication Interpersonal communication is real-time, face-to-face or voice-tovoice

conversation that allows immediate feedback. Interpersonal communication plays a large role in any manager's daily activities, but especially in organizations that use teams.

Managers must facilitate interpersonal communication within teams and reduce barriers to interpersonal communications. Common barriers to interpersonal communication include the following:

Page | 59

� Expectations of familiarity (or hearing what one is expected tohear). After hearing the beginning comments, employees may not listen to the remainder of the communication because they think they already know what a manager's going to say.

� Preconceived notions. Many employees ignore information that conflicts with what they ―know.ǁ Often referred to as selective perception, it's the tendency to single out for attention those aspects of a situation or person that reinforce or appear consistent with one's existing beliefs, value, or needs. Selective perception can bias a manager's and employee's view of situations and people.

� Source's lack of credibility. Some employees may negatively size up or evaluate the sender based on stereotypes. Stereotyping is assigning

attributes commonly associated with a category, such as age group, race, or gender to an individual. Classifying is making assumptions

about an individual based on a group he or she fits into. Characteristics commonly associated with the group are then assigned to the individual. Someone who believes that young people dislike authority figures may assume that a younger colleague is rebellious.

� Differing perceptions caused by social and cultural backgrounds. The process through which people receive and interpret information from the environment is called perception. Perception acts as a screen or filter through which information must pass before it has an impact on communication. The results of this screening process vary, because such things as values, cultural background, and other circumstances influence individual perceptions. Simply put, people can perceive the same things or situations very differently. And even more important, people behave according to their perceptions.

� Semantics and diction. The choice and use of words differ significantly among individuals. A word such as ―effectivenessǁ may mean ―achieving high productionǁ to a factory superintendent and ―employee satisfactionǁ to a human resources specialist. Many

common English words have an average of 28 definitions, so communicators must take care to select the words that accurately communicate their ideas.

� Emotions that interfere with reason. Tempers often interfere

with reason and cause the roles of sender and receiver to change to that of opponent and adversary.

� Noise or interference. Noise does not allow for understanding between sender and receiver.

Page | 60

5.6 BARRIERS IN COMMUNICATION

Managers frequently find breakdowns in the communications that are caused by several factors. Communication barriers distort successful communication. The more prominent communication barriers that manger should aware are given bellow.

� Filtering the message: Number of levels in the organizational

structure cause filtering of messages. The more vertical levels in the organization's hierarchy, the more opportunities for filtering. Sometimes the information is filtered by the sender himself.

� Lack of planning: Communication is frequently takes place without

thinking, planning and stating the purpose of the message. Lack

of choosing appropriate medium and time also cause distort of message. � Receiver emotions: The state of mind and emotional conditions are influence receiver how he interprets the information. � Words

ambiguity: Words selection in drafting message should not have

ambiguity. Language must understandable to the receiver.

Language reflects not only the personality of the individual but also the culture of society in which the individual is living.

� Stereotyping: Stereotyping is a barrier to communications because those who stereotype others use selective perception in their communication and tend to hear only those things that confirm their stereotyped images.

� Conflicting Signals: A sender is using conflicting signals when he or

she sends inconsistent messages. A vertical message might conflict with a nonverbal one.

� The Halo Effect: The term "halo effect" refers to the process of

forming opinions based on one element from a group of elements and generalizing that perception to all other elements.

� Poorly expressed messages: Poorly expressed messages contain

poorly chosen words, awkward sentence structure and platitudes due to this message lacks clarity.

5.7 SUMMARY

Communication is key element of any organization which coordinates all business activities. The purpose of communication is unique that it exchanges messages between people to achieve common goals. "Communication may be defined as the process of meaningful interaction among human beings. It exchange of fact, ideas, opinions or emotions by persons. Organizations are effective in performance when is accurate and timely, on other side if communication is inferior organizations would not function. Communication process has three major components- sender, medium and receiver presented figure 5.1.

Page | 61

Effective communication is important in gaining and maintaining the competitive edge in organizations. The process communication includes speaking or writing message by a sender and listening or reading the receiver which contains nonverbal, oral and written communication. Managers frequently find breakdowns in the communications that are caused by several factors. Communication barriers distort successful communication.

5.8 QUESTIONS FOR DISCUSSION

1. What is communication? Briefly describe the communication process model. 2. Explain interpersonal communication.

3. Briefly describe the role of communication in the organization. 4. What are the methods of communication? Discuss the best method of communication that is used in all organizations. 5. What are the barriers of communication? How can we avoid communication barriers? 6. What are the advantage and disadvantages of written communication?

Page | 62

CHAP

TER-6

MOTIVATIO

N Learning objectives

After reading this chapter, you will be able to understand:

� Define motivation

� The nature of the Motivation

� Motivation and its importance

� Theories of motivation

� Managerial problems in motivation

6.1 INTRODUCTION

Since a manager is accountable for the performance of subordinates, motivation is a vital element of the manager‘s job. Motivation is the key input to managerial success and encourages people to give their finest performance and aid in reaching organizational goals. The manager in general has to get the work done through others. In order to perform this job, a manager has to modify the behavior of his subordinates so as to direct it towards enterprise goals. Motivation is an internal force that energizes, direct and sustains a person‘s efforts. A person behavior is the result of motives, we cannot measure it directly. Every human being has certain needs. These needs prompt him into action which is observed in his behavior. A strong positive motivation will allow the increased output of employee but a negative motivation will lessen their performance. Most successful managers have awareness of the idea of motivation and are bright to use that to attain best subordinate performance. This chapter has discussed on concepts and theories of motivation.

6.2 DEFINITION

The term motivation has been derived from the word motive. Motive is anything that initiates or sustains activity. It is an inner state that energizes, activates or moves and that directs or channels behavior towards goals. Motive is a psychological force within an individual that sets him in motion. Behind every human action there is a motive. Many authors have given variety of definitions on motivation; few of them are given in the following.

Motivation is the willingness to exert high levels of effort toward organizational goals, conditioned by the effort‘s ability to satisfy some individual need. - Stephen P. Robbins

Page | 63

"Motivation is the work a manager performs to inspire, encourage and impel people to take required action".-Lewis Allen

Motivation means a process of stimulating people to action to accomplish desired goals.-William G Scott

Motivation is a general term applying to the entire class of drives, needs, wishes and similar forces.-Koontz and O'Donnell,

6.3 NATURE OF MOTIVATION

� Motivation is a personal and internal feeling which generates within

an individual.

� Motivation produces goal-directed behavior that directs people towards certain goals and actions.

� Since motivation related to needs we have to understand people need

to satisfy them.

� Motivation is a continuous and never ending process because Human needs are unlimited.

� Individuals differ in their motivation that makes motivation complex.

� A person cannot be partly motivated as he is a self-contained and inseparable unit.

� Motivation can be either positive or negative because to satisfy human needs while negative motivation emphasizes penalties, e.g., reprimands, threat of demotion, fear of loss of job, etc.

� Motivation is different from job satisfaction, since motivation is the

process while satisfaction is the outcome or consequence.

6.4 IMPORTANCE OF MOTIVATION

Manager motivates employees to perform the tasks of the organization so that motivation is an imperative part of managing process. Motivation makes people will to work that result in attainment of individual and organizational goals. Manager cannot inspire employees and create confidence without using motivation. Motivation is an unavoidable tool that a manager has to keep to manage workforce. Employees are motivated because of the following reasons.

� Motivated employees make desired actions from the employees and

optimum employ of available resources for achieving enterprise objectives.

� Motivation is directly related to the level of efficiency of employees.

Page | 64

� Motivation makes employees optimum use of their energy and other

abilities to raise the existing level of efficiency.

� Motivation develops good industrial relations in the organization and

is the best remedy for resistance to changes.

� Motivated makes employees goal-directed behavior.

� Motivated employees have sense of belongingness that helps to

reduce absenteeism and labor turnover.

� Effectively motivated employees get more job satisfaction.

� Motivation helps employees to get ability to work and willingness to

work.

6.5 THEORIES OF MOTIVATION

Understanding motivation and managing humans is very complex job. Managers, social scientists, behaviorists and psychologists have been finding new facts and techniques of motivation. Numbers of theories have been born in this process although none of theory is universally applicable. Present concept of the chapter has emphasized few important theories in the following.

6.5.1 EARLY THEORIES OF MOTIVATION

Hierarchy of needs theory

It is discussed in chapter one, the evolution of management movement concept.

Hygiene Theory of Motivation

This theory was developed by Frederick Hertzberg known as need based approach and called as Two-factor theory of motivation. In the late 1950s, the approach has developed by interviewing 200 employees (engineers and accountants) in Pittsburgh. All these employees are asked to relate elements of their jobs when they had been dissatisfied and less motivated. Analysis of their answers was discovered set of factors related to feelings of dissatisfaction and satisfaction of the job. The findings of the study found two set of factors: maintenance and motivational factors are causing either satisfaction or dissatisfaction among employees. Employees do not get satisfaction of maintenance factors but their absence will dissatisfy them. Therefore, these factors are called dissatisfies. These are not inherent parts of a job but they are related to conditions under which a job is performed. On the contrary, motivational factors influencing satisfaction and these are intrinsic parts of the job.

Page | 65

Any increase of these factors will satisfy the employees and help to improve performance. But a decrease in these factors will not cause dissatisfaction. Both these factors are given in the table 6.1.

As conclusion, Hertzberg recommended manger has to take care of maintenance factors first, since employees are not dissatisfied with salary, working conditions and security manager can focus on motivational factors include opportunities for advancement, recognition, advancement and growth. Exclusively, he recommends job enrichment as a means of enhancing the availability of motivation factors.

The theory has been criticized by other researchers because it is failed to differentiate between satisfaction and motivation and adequate focus on differences between individuals. Other researchers who measured satisfaction and dissatisfaction based on different aspects reached very different conclusions

Table-6.1: Hertzberg two factors

Maintenance factors 1. Company Policy & Administration 2. Technical Supervision 3. Inter-Personal Relations with Peers 4. Inter-relationship with Supervisors 5. Inter-relationship with Subordinates 6. Salary

Motivating factors 1. Achievement 2. Recognition 3. Advancement 4. Opportunity for Growth 5. Responsibility 6. Work itself

7. Job Security

8. Personal

Life 9. Working

Conditions

10. Status Theory X & Theory Y

It is discussed in chapter one the evolution of management movement.

6.5.2 CONTEMPORARY THEORIES OF MOTIVATION

Alderfer’s ERG Theory Clayton Alderfer of Yale University has proposed hierarchy of needs by reworking Maslow‘s need hierarchy theory -called ERG theory of motivation. According to Alderfer ERG stands for Existence,Relatedness and Growth. Figure 6.1 has presented.

Page | 66

Existence - Providing our basic material existence requirements.

The existence needs it includes physiological and safety needs.

Relatedness - Interpersonal relationships, Social and status desires

require interaction with others if they are to be satisfied. As per Maslow‘s it includes Social need and external component of esteem needs.

Growth - An intrinsic desire for personal development.

As per Maslow‘s include intrinsic esteem component and self actualization.

ERG theory says - More than one need may be operative at the same time. If the gratification of a higher level needs is stifled the desire to satisfy a lower-level need increases.

McClelland’s Theory of Needs

McClelland and his associates have contributed theory of motivation known as McClelland‘s needs theory. This theory focus on motivation by identifying three types of motivating needs. These are classified as need for power, need for affiliation and need for achievement. Need for power

According to theory people with a high need for power have great concern for exercising influence and control. Individuals with high power enjoy being ‗in charge‘ strive for influence over others, prefer to be placed into competitive and status oriented situations. Such types of individuals generally look for positions of leadership, they act effectively, are outspoken, have a stubborn character and Figure-6.1: ERG versus Maslow’s exert authority.

theory Need for affiliation

The need for affiliation means people with desire for friendly and close interpersonal relationships. This people

strive for prefer

friendship, cooperative

situations rather than competitive one and desire relationship that involve a high degree of mutual understanding.

Page | 67

Need for achievement

People with a high need for achievement, always feel ambitious to be successful, have an intense desire for success and an equally fear of failure. They want face challenging situations and set arduous goals. They are prone to take calculated risks; and possess a high sense of personal responsibility in getting jobs done. These people are concerned with their progress, and feel inclined to put in longer hours of work" Failures never dishearten them and they are always ready to put in their best efforts for excellent performance.

Goal Setting Theory:

This approach to motivation has developed by Edwin Locke and his associates in 1960s and refined in 1980s. The theory suggests that specific and difficult goals should set for an individual on a regular basis, as suggested by MBO which lead to higher performance. Goals tell an employee what need to be done and how much effort will need to be expended.

The key characteristics of the theory as following: �

Goal setting increases performance � Difficult goals

result in higher performance � Participation of

employees in goal has mixed result. � feedback of

results leads to better performances

� Employee participation of setting goals can increase goal acceptance and involvement.

The theory has found tow important factors that influence the performance: goal commitment and Self-efficiency. The only goal setting does not ensure higher levels of motivation among employees. In fact, there seem to be three important criteria that goals must meet if they are to influence the behavior of organization members. They are goal specificity, goal difficulty and goal acceptance. Goal Specificity-

Goals must be specified to motivate effective performance. Goals must be set in terms of measurable criteria of work performance. Goal Difficulty/Challenge - challenging and difficult goals ensure higher

level of performance and motivation. Employees can work beyond the capacity to meet difficult goals, hence it leads to higher performance. Setting very difficult goals unable to motivate since it is beyond the capacity of the concerned individual. Goal Acceptance- an employee

can feel goal ownership when he is accessed to participate goal setting and it influence motivation and performance, commitment to achieve it

Page | 68

Equity theory

It is developed by J. Stacy Adams called as equity theory of motivation. According to this employee motivations arise out of simple desire to be treated fairly. Individuals compare their job inputs (effort, experience, education, competence) and outcomes (salary level, raises, recognition) with those of others and then respond to eliminate any inequities. Equity can be defined as an individual's belief that he is being treated fairly relative to the treatment of others.

Employees generally balance their input and output with others of the same in such case if rewards are equitable enables continue the same level of output and performance and inequitable rewards lead to dissatisfaction, performance is reduced and possibility to leave the organization.

There is four step process that employees use to compare equity.

Self - inside: an employee evaluates the way he is being treated in a

different position inside his current organization.

Self- outside: An employee‘s experiences in a situation or position outside

his or her current organization.

Other - inside: Another individual or group of individuals inside the employee‘s organization.

Other- outside: Another individual or group of individuals outside the

employee‘s organization.

Historically equity theory focused on distributive justice - perceived

fairness of the amount and allocation of rewards among individuals.

But, equity should also consider procedural justice -perceived fairness of the process used to determine the distribution of rewards.

Evidence indicates that distributive justice has a greater influence on employee satisfaction than procedural justice. But, procedural justice affect org commitment, OCB, trust on boss and organization by employees. So managers need to openly share information on how allocation decisions are made.

Victor Vroom's Expectancy theory

Another approach of motivation expectancy theory was developed byVictor Vroom. Vroom argued that motivation as a- process of governing choices. The theory attempts to clarify how and why people select a particular behavior over an alternative. It suggests that motivation depends on two things: how much an individual desires a particular goal and how likely he thinks he can get it.

Page | 69

It means motivation is the product of strength of an individual to achieve the goal and expectations to achieve it.

The theory has four assumptions:

� First assumption is that the behavior of people is determined by a blend of forces in the individual and in the environment.

� Secondly people make decisions about their own behavior in

organizations.

� Thirdly different people have different types of needs, desires and goals.

� Fourth assumption states that people make choices from among

alternative plans of behavior based on their perceptions of the extent to which a given behavior will lead to desired outcomes.

The theory has three importance variables: valance- it is the strength of

an individual‘s preference for an outcome. Zero valance results in an individual are different about achieving a certain goal, negative valence occurs when the person would rather not achieve the goal. Expectancypeople have expectations about their particular actions that

will lead to desired outcome. At zero and negative expectancy people have no motivation to achieve their goals. Force- can be measured in

strength of a person‘s motivation. The force an individual applies to achieve something reliant on both valance and expectancy. For instance, a commerce graduate looking for a job and find an advertisement for accounting manager position with a starting salary of Rs.5,oo,ooo per annum. He is not interested to apply the job because he though little chance of getting it. Next day he read another advertisement is for typist for a salary of Rs. 2, 00,000 per year. Even he does not apply because probably get the job but, he doesn't want it. Next he sees another advertisement for accountant with a starting salary of Rs.3, 00,000 per year. He chooses to apply for this job because he wants it and also thinks that he has a reasonable chance of getting it. Therefore, Outcomes are results of efforts, individual ability, environmental factors and performance. Finally, an individual develop some sense of these expectations before they exhibit motivated or non-motivated behavior. 6.6 PROBLEMS IN MOTIVATION

Manager has difficulties in motivating various levels of employees. He must be skillful to motivate and manage professional, skilled employees, contingent workers, diversified workforce, low skilled works and high respective tasks performing employees. Following section is presented briefly on these issues.

Page | 70

1. Motivating Professional

Very tough task motivating profession because they are loyal to their profession than to their employer. This category is posing low priority on money and promotions. They like to keep themselves update in their field- so organization should provide them with challenging projects. In order to motive professional manger should give them autonomy & allow them to structure their job. Reward them with educational opportunity training, workshops, attending conferences that allow them to update. Reward them with recognition & ask question to demonstrate that you are sincerely interested in what they are doing. These are only few techniques useful to motivate professionals.

2. Motivating contingent workers

Few important reasons are coded why contingent works are motivated very less. First-contingent employees don‘t have the security or stability that permanent employees have, secondly-they don‘t identify themselves with the organization and thirdly-these workers are provided with little or

no health care, pensions or similar benefits.

Motivation for this category is obviously a complex task to the manager. The techniques that motivate contingent workers include the job he/she is doing for can help develop salable skills and temporary employees based on their performance can be given option to become permanent 3. Motivating the diversified workforce

Money and promotions are not successful always in motivating employees. Regard to employees‘ requirement motivational techniques should be developed. Since motivating diversified workforce is not motivated by monetary and promotional benefits we should give them flexibility in the work. For instance, employees who are attending college, place high value on flexible work schedules and hours, job sharing and flexible leave policy. There for key for motivating diversified workforce is ―FLEXIBLITYǁ.

4. Motivating low-skilled service workers

As low skilled worker having less opportunity to increase their pay ,limited education & skills, and pay levels are little above minimum wage motivating skills used to other category of employees do not helpful. In general two approaches can be worked out to motivate this category of workers. Traditional approach- More flexible work schedules &

filling these jobs with teenagers and retirees who have lesser financial needs. Non-traditional approach- celebrating employees interest like - to exhibit their art, read their poetry, explain their volunteer work and introduce their new babies.

Page | 71

5. Motivating people doing highly repetitive tasks

It is easy to Motivating people in this job but careful selection should made work environment and structure. Motivating them include providing clean and attractive work surroundings ample work breaks and opportunity to socialize with colleagues during breaks.

6.7 SUMMARY

Motivation is the key input to managerial success and encourages people to give their finest performance and aid in reaching organizational goals. The manager in general has to get the work done through others. According Lewis to Allen ―Motivation is the work a manager performs to inspire, encourage and impel people to take required action". Individuals differ in their motivation that makes motivation complex Managers, social scientists, behaviorists and psychologists have been finding new facts and techniques of motivation. Manager has difficulties in motivating various levels of employees. He must be skillful to motivate and manage professional, skilled employees, contingent workers, diversified workforce, low skilled works and high respective tasks performing employees. Finally, motivation is different from job satisfaction, since motivation is the process while satisfaction is the outcome or consequence.

6.8 QUESTIONS FOR DICUSSION

1. What do you mean by Motivation? Why it is important.

2. Bring out the nature of Motivation.

3. In brief explain Maslow‘s need hierarchy theory 4.

Contrast ERG theory and Maslow‘s need hierarchy theory 5.

What are the problems in motivation?

6. Critically examine Maslow's need priority theory. How far up the hierarchical ladder do most people progress?

7. Distinguish between motivators and hygiene factors. Why is it important to make this distinction?

Page | 72

CHAPTER-7

LEADING

Learning objectives

After reading this chapter, you will be able to understand:

� Leading and its importance

� Characteristics of leaders

� History of leading � Leading theories

� Leadership approaches

� Models of leadership and management � Leadership in Indian organizations � Leadership

in India in 21st century � Leadership in public

and private sector in India

7.1 INTRODUCTION

Leading one of key functions of management, most of times managers are failed to be successful leaders. Leader is a one who influences his follower to attainment of goals. Leadership is the stretch ofchanging things that can be changed, of providing new thinking, new energy, to the current situation. It means facing the reality of your department, your practice, and deciding to bite that bullet. Fire the underproductive but well-liked person who has not responded to reasonable corrective action. Face the issues that need faced, recurrently, even when it would be easier to delay, procrastinates or ignores sustained, recurrent action over time. A good leader creating a positive change; providing the impetus that creates an atmosphere of change that improves the world, or at least the small part of the world around us. The concepts of leader and leadership are elaborately clearly discussed in chapter.

7.2 DEFINITION

Leader should influence his followers, can join up the aid and support of others in the accomplishment of a common task. Leadership has different meanings to various authors. Some of them are discussed in this chapter.

Page | 73

Leader is defined someone who can visualize a better world in the future and is able to convince others to join him/her on the journey Deborah Allen

Leadership is the ability to guide and motivate a group of people to a common purpose-Bruce Bagley

Leadership means making a difference; leadership is characterized by sustained action over time (Heroism is for the onetime event)-Marjorie Bowman.

Leadership is defined as the opportunity to change the world, hopefully for the better- English H. Gonzalez

Leadership is the act of influencing the behavior of others in an intended direction-Robert Graham

Leadership is defined as that it is an opportunity for a person to assume a role in which they can interact with colleagues to achieve a certain end or goal.-Pat Harr

7.3 HISTORY

The role of leadership in solving both coordination and collective action problems involving varying degrees of conflict allows us to speculate about the scale and importance of leadership in human evolution. Human leaders not only initiate group action but also motivate, plan, organize, direct, monitor, and punish to achieve group action. They may lead democratically or despotically, from the front or from the back, and lead small or very large groups. Although there are phylogenetic consistencies between human and non-human leadership, the expansion of the human brain and the associated increase in human group size has created a unique selection environment for human leadership.

A review of the human and nonhuman leadership literatures suggests at least five major transitions in the evolution of human leadership:

1) Leadership emerged in pre-human species as a mechanism to solve simple group coordination problems where any individual initiated an action and others followed. 2) Leadership was co-opted to foster collective action in situations involving significant conflicts of interest such as internal peacekeeping in which dominant or socially important individuals emerged as leaders.

Page | 74

3) Dominance was attenuated in early human egalitarian societies which paved the way for democratic and prestige-based leadership facilitating group coordination.

4) The increase in human group size selected for powerful social cognitive mechanisms, such as theory of mind and language, providing new opportunities for leaders to attract followers through manipulation and persuasion. 5) The increase in social complexity of societies that took place after the agricultural revolution produced the need for more powerful and formal leaders to manage complex intra- and inter group relations-the chiefs, kings, presidents, and CEOs-who at best provide important public services and at worst abuse their position of power to dominate and exploit followers.

7.4 IMPORTANCE OF LEADERSHIP

As the global economy gathers pace, more public and private sector organizations are realizing that their main assets are their people and that remaining, or becoming, competitive depends increasingly on the development of a highly skilled workforce. This requires trained and committed leaders but they, in turn, need the leadership of highly effective managers and the support of other senior and middle level leaders and managers.

The leadership is widely recognized as having crucial importance for performance. Indeed, there is a wide range of issues relating to supporting and promoting the provision of effective leadership in both public and private sector organizations, including those around recruitment, roles and responsibilities, retention, succession planning, governance, continuing professional development and reward.

The way in which successful leaders apply leadership quality practices will be influenced by a number of factors, including their judgments about the conditions for working and learning in the organizations, the confidence and experience of their staff; and the behavior, aspirations and attainment levels of the employees. There is a strong association between leadership practices and performance of the employees in the organizations.

The successful leadership practices improve employee‘s outcomes through their values, virtues, dispositions, attributes and competences as well as what they do in terms of the strategies they select and the ways in which they adapt their leadership practices to their unique context in order to achieve the excellent performance.

Page | 75

While there is global interest in leadership and management, because of its perceived importance in developing and maintaining successful organizations and business environments systems, there is much less clarity about which leadership behaviors are most likely to produce the most favorable outcomes. Awareness of alternative approaches is essential to provide a set of tools from which discerning leaders can choose when facing problems and dealing with day-to-day issues.

Leadership is essentially the core and spirit of organizations. As the people in charge, they not only manage the organization's affairs but also deal with the general employees face to face. Entrusted with the task to communicate organizational goals, visions and ideas to employees, leaders are responsible for maintaining and implementing organizational rules and systems and even have the final say on promotion, retention and dismissal. Therefore, in a sense, leaders at all levels are spokespersons of their own organizations, serving as the bridge and link connecting employees.

Leadership styles and management methods across the world are diverse and are influenced by specifications dominant in the environment. Different studies and researches in different countries have emphasized compliance of leadership style in terms of success conditions. The relationship between managers and culture, and leaders and culture is different. Managers tend to be the people who get things done, and the corporate culture is the mechanism they use to understand how to communicate, how to work and what to expect on a day to day basis.

The managerial staff knows what the current culture expects, how to feed and nurture the existing culture and how strong or weak the culture is. Managers of transnational organizations should necessarily show flexibility proportional to culture differences, respect to the differences, recognize motivates of the people, and select a suitable style of leadership in accord to situations and then take action with regard to the individuals under their supervision to realize defined objectives.

7.5 CHARACTERISTICS OF LEADERS

One of the most important characteristics of leaders is to have an insight with which they can see what occurs in the group, organization or society and diagnose the way it could be resolved. Such an insight gives leaders energy and power to work. This energy and power can be created in them by inspiring their followers and motivating them. This inspiration defines their beliefs and converts them to reality.

Page | 76

Leaders inspire their followers to recognize desirable ways and ask them to recognize their leader and to reach to the desirable state that he has specified - Zahedi (1999). The key characteristics of the leaders are:

� Leaders Have Direction: They are focused on their job and they aren‘t

easily distracted. Leaders work proactively, seeking new ideas and ways to improve things. They don‘t get bogged down with smaller problems and they provide others with direction as well. When people see a good leader and their dedication to the job, it inspires them to be dedicated too.

� Effective Leaders Inspire and Motivate Others: They help others see

the importance of what they are doing and motivate them to do their best. A good leader understands that everyone works differently and takes note of others‘ preferred work methods. They are able to use this knowledge to get more out of their employees and coworkers and show that they value them for their contributions.

� Leaders Are Good Communicators: They interact well with others despite different personality types and they know how to confidently and effectively convey messages to others. In addition, effective leaders make an effort to remember bits of personal information about others, take note of their interests, skills and experience. Taking a personal interest in someone strengthens their working relationship and encourages them to be more dedicated.

� Leaders are positive. They don‘t focus on the negative, but

inspire others by letting them see how important their contributions are. This doesn‘t mean they never have any problems to deal with, but when they do, they do not get wrapped up in the negative- they look for the best solution and focus on reaching it.

� Successful leaders are solutions-driven. They see the problem

and work for a solution, and they encourage others to help them. Leaders see the bigger picture and are constantly moving toward a specific goal. 7.6 THEORIES

Leadership is "organizing a group of people to achieve a common goal". The leader may or may not have any formal authority. Students of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence, among others. Somebody whom people follow: somebody who guides or directs others.

Page | 77

Early Western History

The search for the characteristics or traits of leaders has been ongoing for centuries. History's greatest philosophical writings from Plato's Republic to Plutarch's Lives have explored the question "What qualities distinguish an individual as a leader?" Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. This idea that leadership is based on individual attributes is known as the "trait theory of leadership".

The trait theory was explored at length in a number of works in the 19th

century. Most notable are the writings of Thomas Carlyle and Francis Galton, whose works have prompted decades of research. In Heroes and Hero Worship, Carlyle identified the talents, skills, and physical characteristics of men who rose to power. In Galton's Hereditary Genius, he examined leadership qualities in the families of powerful men. After showing that the numbers of eminent relatives dropped off when moving from first degree to second degree relatives, Galton concluded that leadership was inherited. In other words, leaders were born, not developed. Both of these notable works lent great initial support for the notion that leadership is rooted in characteristics of the leader.

Rise of Alternative Theories In the late 1940s and early 1950s, however, a series of qualitative studies prompted researchers to take a drastically different view of the driving forces behind leadership. In reviewing the extant literature, Stogdill and Mann found that while some traits were common across a number of studies, the overall evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other situations. Subsequently, leadership was no longer characterized as an enduring individual trait, as situational approaches (see alternative leadership theories below) posited that individuals can be effective in certain situations, but not others. This approach dominated much of the leadership theory and research for the next few decades. Reemergence of Trait Theory

New methods and measurements were developed after these influential reviews that would ultimately reestablish the trait theory as a viable approach to the study of leadership. For example, improvements in researchers' use of the round robin research design methodology allowed researchers to see that individuals can and do emerge as leaders across a variety of situations and tasks. Additionally, during the 1980s statistical advances allowed researchers to conduct meta-analyses, in which they could quantitatively analyze and summarize the findings from a wide array of studies.

Page | 78

This advent allowed trait theorists to create a comprehensive picture of previous leadership research rather than rely on the qualitative reviews of the past.

Attribute Pattern Approach

Considering the criticisms of the trait theory outlined above, several researchers have begun to adopt a different perspective of leader individual differences—the leader attributes pattern approach. In contrast to the traditional approach, the leader attribute pattern approach is based on theorists' arguments that the influence of individual characteristics on outcomes is best understood by considering the person as an integrated totality rather than a summation of individual variables. In other words, the leader attribute pattern approach argues that integrated constellations or combinations of individual differences may explain substantial variance in both leader emergence and leader effectiveness beyond that explained by single attributes, or by additive combinations of multiple attributes. Behavioral and Style Theories

In response to the early criticisms of the trait approach, theorists began to research leadership as a set of behaviors, evaluating the behavior of successful leaders, determining behavior taxonomy, and identifying broad leadership styles. David McClelland, for example, posited that leadership takes a strong personality with a well-developed positive ego. To lead, self-confidence and high self-esteem are useful, perhaps even essential.

Kurt Lewin, Ronald Lipitt, and Ralph White developed in 1939 the seminal work on the influence of leadership styles and performance. The researchers evaluated the performance of groups of eleven-year-old boys under different types of work climate. In each, the leader exercised his influence regarding the type of group decision making, praise and criticism (feedback), and the management of the group tasks (project management) according to three styles: authoritarian, democratic, and laissez-faire.

The managerial grid model is also based on a behavioral theory. The model was developed by Robert Blake and Jane Mouton in 1964 and suggests five different leadership styles, based on the leaders' concern for people and their concern for goal achievement.

Page | 79

Positive Reinforcement

B.F. Skinner is the father of behavior modification and developed the concept of positive reinforcement. Positive reinforcement occurs when a positive stimulus is presented in response to a behavior, increasing the likelihood of that behavior in the future. The following is an example of how positive reinforcement can be used in a business setting. Assume praise is a positive reinforce for a particular employee. This employee does not show up to work on time every day. The manager of this employee decides to praise the employee for showing up on time every day the employee actually shows up to work on time. As a result, the employee comes to work on time more often because the employee likes to be praised. In this example, praise (the stimulus) is a positive reinforce for this employee because the employee arrives at work on time (the behavior) more frequently after being praised for showing up to work on time.

Situational and Contingency Theories

Situational theory also appeared as a reaction to the trait theory of leadership. Social scientists argued that history was more than the result of intervention of great men as Carlyle suggested. This theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions."

Some theorists started to synthesize the trait and situational approaches. The authoritarian leadership style, for example, is approved in periods of crisis but fails to win the "hearts and minds" of followers in day-to-day management; the democratic leadership style is more adequate in situations that require consensus building; finally, the laissez-faire leadership style is appreciated for the degree of freedom it provides, but as the leaders do not "take charge", they can be perceived as a failure in protracted or thorny organizational problems. Thus, theorists defined the style of leadership as contingent to the situation, which is sometimes, classified as contingency theory. Four contingency leadership theories appear more prominently in recent years: Fiedler contingency model, Vroom-Yetton decision model, the path-goal theory, and the Hersey-Blanchard situational theory.

The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency. This results from the

interaction of leadership style and situational favorability (later called

Page | 80

situational control). The theory defined two types of leader: those who

tend to accomplish the task by developing good relationships with the group (relationship-oriented), and those who have as their prime concern carrying out the task itself (task-oriented). According to Fiedler, there is no ideal leader. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation. When there is a good leader-member relation, a highly structured task, and high leader position power, the situation is considered a "favorable situation". Fiedler found that task-oriented leaders are more effective in extremely favorable or unfavorable situations, whereas relationship-oriented leaders perform best in situations with intermediate favorability.

Victor Vroom, in collaboration with Phillip Yetton and later with Arthur Jago, developed a taxonomy for describing leadership situations, which was used in a normative decision model where leadership styles were connected to situational variables, defining which approach was more suitable to which situation. This approach was novel because it supported the idea that the same manager could rely on different group decision making approaches depending on the attributes of each situation. This model was later referred to as situational contingency theory.

The path-goal theory of leadership was developed by Robert House and was based on the expectancy theory of Victor Vroom. According to House, the essence of the theory is "the meta proposition that leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance". The theory identifies four leader behaviors, achievement-oriented, directive, participative, and supportive, that is contingent to the environment factors and follower characteristics. In contrast to the Fiedler contingency model, the pathgoal model states that the four leadership behaviors are fluid, and that leaders can adopt any of the four depending on what the situation demands. The path-goal model can be classified both as a contingency theory, as it depends on the circumstances, and as a transactional leadership theory, as the theory emphasizes the reciprocity behavior between the leader and the followers

The situational leadership model proposed by Hersey and Blanchard suggests four leadership-styles and four levels of follower-development. For effectiveness, the model posits that the leadership-style must match the appropriate level of follower-development. In this model, leadership behavior becomes a function not only of the characteristics of the leader, but of the characteristics of followers as well.

Page | 81

Functional Theory

Functional leadership theory is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. This theory argues that the leader's main job is to see that whatever is necessary to group needs is taken care of; thus, a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion. While functional leadership theory has most often been applied to team leadership, it has also been effectively applied to broader organizational leadership as well. These functions include environmental monitoring, organizing subordinate activities, teaching and coaching subordinates, motivating others, and intervening actively in the group's work.

A variety of leadership behaviors are expected to facilitate these functions. In initial work identifying leader behavior, it is observed that subordinates perceived their supervisors' behavior in terms of two broad categories referred to as consideration and initiating structure. Consideration includes behavior involved in fostering effective relationships. Examples of such behavior would include showing concern for a subordinate or acting in a supportive manner towards others. Initiating structure involves the actions of the leader focused specifically on task accomplishment. This could include role clarification, setting performance standards, and holding subordinates accountable to those standards.

Emotions

Leadership can be perceived as a particularly emotion-laden process, with emotions entwined with the social influence process. In an organization, the leader's mood has some effects on his/her group. These effects can be described in three levels:

1) The mood of individual group members. Group members with leaders in a positive mood experience more positive mood than do group members with leaders in a negative mood. The leaders transmit their moods to other group members through the mechanism of emotional contagion. Mood contagion may be one of the psychological mechanisms by which charismatic leaders influence followers.

2) The affective tone of the group. Group affective tone represents the consistent or homogeneous affective reactions within a group. Group affective tone is an aggregate of the moods of the individual members of the group and refers to mood at the group level of analysis.

Page | 82

Groups with leaders in a positive mood have a more positive affective tone than do groups with leaders in a negative mood.

3) Group processes like coordination, effort expenditure, and task strategy. Public expressions of mood impact how group members think and act. When people experience and express mood, they send signals to others. Leaders signal their goals, intentions, and attitudes through their expressions of moods. The expressions of positive moods by leaders signal that leaders deem progress toward goals to be good. The group members respond to those signals cognitively and behaviorally in ways that are reflected in the group processes.

Neo-Emergent Theory

The Neo-emergent leadership theory (from the Oxford school of leadership) espouses that leadership is created through the emergence of information by the leader or other stakeholders, not through the true actions of the leader himself. In other words, the reproduction of information or stories, form the basis of the perception of leadership by the majority. It is well known that the great naval hero Lord Nelson often wrote his own versions of battles he was involved in, so that when he arrived home in England he would receive a true hero's welcome. In modern society, the press, blogs and other sources report their own views of a leader, which may be based on reality, but may also be based on a political command, a payment, or an inherent interest of the author, media, or leader. Therefore, it can be contended that the perception of all leaders is created and in fact does not reflect their true leadership qualities at all.

7.7 APPROACHES OF LEADERSHIP

The Trait Approach to Leadership The Trait Approach arose from the ―Great Manǁ theory as a way

of identifying the key characteristics of successful leaders. It was believed that through this approach critical leadership traits could be isolated and that people with such traits could then be recruited, selected, and installed into leadership positions. This approach was common in the military and is still used as a set of criteria to select candidates for commissions.

The table 7.1 below lists the main leadership traits and skillsidentified by Stogdill in 1974.

Page | 83

The Behavioral School

The results of the trait studies were inconclusive. Traits, amongst other things, were hard to measure. After the publication of the late Douglas McGregor's classic book The Human Side of Enterprise in 1960, attention shifted to ‗behavioral theories‘. McGregor was a teacher, researcher, and consultant whose work was considered to be "on the cutting edge" of managing people. He influenced all the behavioral theories, which emphasize focusing on human relationships, along with output and performance.

Table -7.1: Leadership traits and skills

Traits -Adaptable to situations -Alert to social environment - Ambitious and achievementorientated - Assertive -Cooperative -Decisive pendable - Dominant (desire to influence

Skills - Clever (intelligent) -Conceptually skilled - Creative -Diplomatic and tactful - Fluent in speaking - Knowledgeable about group task Organized (administrative ability) - Persuasive - Socially skilled others)

- Energetic (high activity

level) - Persistent

- Self-confident -

Tolerant of stress - Willing to assume responsibility

Page | 84

Blake and Mouton's Managerial Grid

The Managerial Grid developed by Robert Blake and Jane Mouton focuses on task (production) and employee (people) orientations of managers, as well as combinations of concerns between the two extremes. A grid with concern for production on the horizontal axis and concern for people, on the vertical axis and plots five basic leadership styles. The first number refers to a leader's production or task orientation; the second, to people or employee orientation. Figure 7.1 has presented different managerial styles.

Figure-7.1: Blake and Mouton’s Grid

Blake and Mouton propose that ―Team Managementǁ - a

high concern for both employees and production - is the most effective type of leadership behavior.

The Contingency or Situational School

Whilst behavioral theories may help managers develop particular leadership behaviors they give little guidance as to what constitutes effective leadership in different situations. Indeed, most researchers today conclude that no one leadership style is right for every manager under all circumstances. Instead, contingency-situational theories were developed to indicate that the style to be used is contingent upon such factors as the situation, the people, the task, the organization, and other environmental variables. The major theories contributing towards this school of thought are described below.

Page | 85

Fiedler's Contingency Model

Fiedler's contingency theory postulates that there is no single best way for managers to lead. Situations will create different leadership style requirements for a manager. The solution to a managerial situation is contingent on the factors that impinge on the situation. For example, in a highly routine (mechanistic) environment where repetitive tasks are the norm, a relatively directive leadership style may result in the best performance, however, in a dynamic environment a more flexible, participative style may be required.

Fiedler looked at three situations that could define the condition of a managerial task:

1. Leader member relations: How well do the manager and the employees get along? 2. Task structure: Is the job highly structured, fairly unstructured, or somewhere in between? 3. Position power: How much authority does the manager possess?

Managers were rated as to whether they were relationship oriented or task oriented. Task oriented managers tend to do better in situations that have good leader-member relationships, structured tasks, and either weak or strong position power. They do well when the task is unstructured but position power is strong. Also, they did well at the other end of the spectrum when the leader member relations were moderate to poor and the task was unstructured. Relationship oriented managers do better in all other situations. Thus, a given situation might call for a manager with a different style or a manager who could take on a different style for a different situation.

These environmental variables are combined in a weighted sum that is termed "favorable" at one end and "unfavorable" at the other. Task oriented style is preferable at the clearly defined extremes of "favorable" and "unfavorable" environments, but relationship orientation excels in the middle ground. Managers could attempt to reshape the environment variables to match their style.

Another aspect of the contingency model theory is that the leader-member relations, task structure, and position power dictate a

leader's situational control. Leader-member relations are the amount of loyalty, dependability, and support that the leader receives from

employees. It is a measure of how the manager perceives him or her and the group of employees is getting along together. In a favorable

relationship the manager has a high task structure and is able to reward

Page | 86

and or punish employees without any problems. In an unfavorable relationship the task is usually unstructured and the leader possesses limited authority. The spelling out in detail (favorable) of what is required of subordinates affects task structure.

Positioning power measures the amount of power or authority the manager perceives the organization has given him or her for the purpose of directing, rewarding, and punishing subordinates. Positioning power of managers depends on the taking away (favorable) or increasing (unfavorable) the decision-making power of employees.

The task-motivated style leader experiences pride and satisfaction in the task accomplishment for the organization, while the relationship-motivated style seeks to build interpersonal relations and extend extra help for the team development in the organization. There is no good or bad leadership style. Each person has his or her own preferences for leadership. Task-motivated leaders are at their best when the group performs successfully such as achieving a new sales record or outperforming the major competitor. Relationship-oriented leaders are at their best when greater customer satisfaction is gained and a positive company image is established.

The Hersey-Blanchard Model of Leadership

The Hersey-Blanchard Leadership Model also takes a situational perspective of leadership. This model posits that the developmental levels of a leader's subordinates play the greatest role in determining which leadership styles (leader behaviors) are most appropriate. Their theory is based on the amount of direction (task behavior) and socioemotional support (relationship behavior) a leader must provide given the situation and the "level of maturity" of the followers:

� Task behavior is the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group. This behavior includes telling people what to do, how to do it, when to do it, where to do it, and who's to do it. In task behavior the leader engages in one-way communication.

� Relationship behavior is the extent to which the leader engages in two-way or multi-way communications. This includes listening, facilitating, and supportive behaviors. In relationship behavior the leader engages in two-way communication by providing socio-emotional support.

Page | 87

� Maturity is the willingness and ability of a person to take responsibility for directing his or her own behavior. People tend to have varying degrees of maturity, depending on the specific task, function, or objective that a leader is attempting to accomplish through their efforts.

In summary therefore leader behaviors fall along two continua presented 7.2:

Table-7.2: Directive and Supportive Behavior

Directive Behavior

� One-Way

Communication �

Followers' Roles Clearly

Communicated �

Close Supervision of

Performance

Supportive Behavior

� Two-Way

Communication �

Listening, providing

support and

encouragement �

Facilitate interaction Involve follower in

decision-making.

For Blanchard the key situational variable, when determining the appropriate leadership style, is the readiness or developmental level of the subordinate(s). As a result, four leadership styles result: � Directing: The leader provides clear instructions and specific direction. This style is best matched with a low follower readiness level.

� Coaching: The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level.

� Supporting: With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level.

� Delegating: This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level.

Page | 88

To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behavior and increase relationship behavior until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behavior but also relationship behavior. Once the maturity level is identified, the appropriate leadership style can be determined. Tannenbaum and Schmidt’s Leadership Continuum

One criticism of early work on leadership styles is that they looked at styles too much in black and white terms. The autocratic and democratic styles or task-oriented and relationship-oriented styles which they described are extremes, whereas in practice the behavior of many, perhaps most, leaders in business will be somewhere between the two. Contingency theorists Tannenbaum and Schmidt suggested the idea that leadership behavior varies along a continuum and that as one moves away from the autocratic extreme the amount of subordinate participation and involvement in decision taking increases. They also suggested that the kind of leadership represented by the democratic extreme of the continuum will be rarely encountered in formal organizations.

Four main leadership styles can be located at points along such a continuum:

� Autocratic: The leader takes the decisions and announces them; expecting subordinates to carry them out without question (the Telling style).

� Persuasive: At this point on the scale the leader also takes all the decisions for the group without discussion or consultation but believes that people will be better motivated if they are persuaded that the decisions are good ones. He or she does a lot of explaining and 'selling' in order to overcome any possible resistance to what he or she wants to do. The leader also puts a lot of energy into creating enthusiasm for the goals he or she has set for the group (the Selling style).

� Consultative: In this style the leader confers with the group members before taking decisions and, in fact, considers their advice and their feelings when framing decisions. He or she may, of course, not always accept the subordinates' advice but they are likely to feel that they can

Page | 89

have some influence. Under this leadership style the decision and the full responsibility for it remain with the leader but the degree of involvement by subordinates in decision taking is very much greater than telling or selling styles (the Consulting style).

� Democratic: Using this style the leader would characteristically lay the problem before his or her subordinates and invite discussion. The leader's role is that of conference leader, or chair, rather than that of decision taker. He or she will allow the decision to emerge out of the process of group discussion, instead of imposing it on the group as its boss (the Joining style).

What distinguishes this approach from previous discussions of leadership style is that there will be some situations in which each of the above styles is likely to be more appropriate than the others.

� Telling: In an emergency, a telling style may be most appropriate and would normally be considered justified by the group (as long as the general climate of that group is supportive and mature).

� Selling: The selling style would tend to fit situations in which the group leader, and he or she alone, possesses all the information on which the decision must be based and which at the same time calls for a very high level of commitment and enthusiasm on the part of group members if the task is to be carried through successfully.

� Consulting: The consulting style is likely to be most appropriate when there is time in which to reach a considered decision and when the information on which the decision needs to be based lies among the members of the group.

� Joining: The joining style is appropriate under similar conditions, with the important exception that this is likely to be appropriate only in those instances where the nature of the responsibility associated with the decision is such that group members are willing to share it with their leader, or alternatively the leader is willing to accept responsibility for decisions which he or she has not made personally. Adair’s Action-Centered Leadership Model

John Adair has a long pedigree in the world of leadership. The Adair model is that the action-centered leader gets the job done through the work team and relationships with fellow managers and staff. According to Adair's explanation an action-centered leader must: � Direct the job to be done (task structuring)

Page | 90

� Support and review the individual people doing it

� Co-ordinate and foster the work team as a whole

Figure-7.2: Adair‘s Action-Centered Leadership Model

Figure-7.2: Adair’s Action-Centered Leadership

Model

His famous three circle diagram is a simplification of the variability of human interaction, but is a useful tool for thinking about what constitutes an effective leader/manager in relation to the job he/she has to do. The effective leader/manager carries out the functions and exhibits the behaviors depicted by the three circles. Situational and contingent elements call for different responses by the leader. Hence imagine that the various circles may be bigger or smaller as the situation varies i.e. the leader will give more or less emphasis to the functionallyoriented behaviors according to what the actual situation involves. The challenge for the leader is presented in the table 7.3.

Page | 91

7.8 MODELS OF LEADERSHIP AND

MANAGEMENT Managerial Leadership Leithwood, et. al., (1999) defines this model as:

Managerial leadership assumes that the focus of leaders ought to be on functions, tasks and behaviors and that if these functions are carried out competently the work of others in the organization will be facilitated. Most approaches to managerial leadership also assume that the behavior of organizational members is largely rational. Authority and influence are allocated to formal positions in proportion to the status of those positions in the organizational hierarchy.

Caldwell (1992) argues that managers and leaders of self-managing educational institutions must be able to develop and implement a cyclical process involving seven managerial functions.

� Goal setting � Needs identification � Priority-setting � Planning and Budgeting � Implementing � Evaluating

It is significant to note that this type of leadership does not include the concept of vision, which is central to most leadership models. Managerial leadership is focused on managing existing activities successfully rather than visioning a better future for the institution.

Page | 92

This approach is very suitable for institutional leaders working in centralized systems as it prioritizes the efficient implementation of external imperatives, notably those prescribed by higher levels within the bureaucratic hierarchy.

Bureaucracy and by implication managerial leadership, is the preferred model for many education systems. This approach is associated with ‗authoritarian, hierarchical and inaccessible management styles‘ and that the principal‘s authority is perceived to be ‗god-given‘ and ‗juridical‘. This model can be regarded as the starting point for the study and practice of educational management, in South Africa, Europe, and North America.

Managerial leadership has certain advantages, notably for bureaucratic systems, but there are difficulties in applying it too enthusiastically to schools and colleges because of the professional role of teachers. If principals and educators do not ‗own‘ innovations but are simply required to implement externally imposed changes, they are likely to do so without enthusiasm, leading to possible failure.

Transformational Leadership

Bass, B. M (1990), links three leadership models to his ‗collegial‘ management model. The first of these is ‗transformational leadership‘. This form of leadership assumes that the central focus of leadership ought to be the commitments and capacities of organizational members. Higher levels of personal commitment to organizational goals and greater capacities for accomplishing those goals are assumed to result in extra effort and greater productivity.

Bass, B. M (1990) conceptualizes transformational leadership along eight dimensions:

� Building vision � Establishing goals � Providing intellectual stimulation � Offering individualized support � Modeling best practices and important organizational values � Demonstrating high performance expectations � Creating a productive culture � Developing structures to foster participation in decisions

Charbonneau D (2001), argue that transformational leadership is essential for business organizations. Transformational leaders succeed

Page | 93

in gaining the commitment of followers to such a degree that higher levels of accomplishment become virtually a moral imperative.

The powerful capacity for transformational leadership is required for the successful transition to a system of self managing organizations. The transformational model is comprehensive in that it provides a normative approach to leadership, which focuses primarily on the process by which leaders seek to influence organizations‘ outcomes rather than on the nature or direction of those outcomes. However, it may also be criticized as being a vehicle for control over leaders and more likely to be accepted by the leader than the led Friedman, A. A (2004) Allix (2000) goes further and alleges that transformational leadership has the potential to become ‗despotic‘ because of its strong, heroic and charismatic features. He believes that the leader‘s power ought to raise ‗moral qualms‘ and serious doubts about its appropriateness for democratic organizations.

The politicians and bureaucrats are inclined to use the language of ‗transformation‘ to achieve their own policy objectives. The English system increasingly requires institutional leaders to adhere to government prescriptions, which affect aims, curriculum content and pedagogy as well as values. There is ―a more centralized, more directed, and more controlled educational system that has dramatically reduced the possibility of realizing a genuinely transformational organization and leadershipǁ.

However, there is a chasm between the rhetoric and the reality of transformation. Lemon (2004) is one of several writers who claim that national policies have been rich in the political symbolism of equity and redress but with ‗very limited implementation of change on the ground‘. The Task Team on Management Development observes that ‗real transformation will depend on the nature and quality of internal management. Self-management must be accompanied by an internal devolution of power within the organization and by transformational leadership‘.

A transformational leadership approach has the potential to engage all stakeholders in the achievement of organizational objectives. The aims of leaders and followers coalesce to such an extent that it may be realistic to assume a harmonious relationship and a genuine convergence leading to agreed decisions. ‗Transformation‘ requires action at all levels and there are limits to what managers can achieve in the absence of appropriate physical, human and financial resources.

Page | 94

Participative Leadership

Participative leadership assumes that the decision-making processes of the group ought to be the central focus of the group. This model is underpinned by three assumptions. � Participation will increase effectiveness; � Participation is justified by democratic principles; and � In the context of site-based management, leadership is potentially available to any legitimate stakeholder.

Vroom, V. H. and Jago, A. G (1984) points the importance of a participative approach. This will succeed in ‗bonding‘ employees together and in easing the pressures on managers. ―The burdens of leadership will be less if leadership functions and roles are shared and if the concept of leadership density were to emerge as a viable replacement for manager leadershipǁ. Ivey G. W., Theresa J.B. and Kline

T (2010) points out the need for co-operation between managers and General Bodies (GBs), if governance is to be effective.

Political and Transactional Leadership:

Miller, T.W., and Miller, J.M (2003) links the transactional leadership to his political model. In political models, there is conflict between stakeholders, with disagreement being resolved in favor of the most powerful protagonists.

Transactional leadership is leadership in which relationships with employees are based upon an exchange for some valued resource. To the employee, interaction between managers and employees is usually episodic, short-lived and limited to the exchange transaction.

Miller and Miller‘s (2001) definition refers to transactional leadership as an exchange process. Exchange is an established political strategy for members of organizations. Leaders possess authority arising from their positions as the formal leaders of their organizations. However, the head requires the cooperation of employees to secure the effective management of the organization. Political theories have obvious relevance to the extended period of struggle against the Apartheid

regime.

Harms, P.D., and Marcus Credé (1995) argue that a constant feature of organizational resistance has been what may be termed the politics of opposition. Key aspects of this politics have been mass mobilization and organization and mass action in pursuit of particular policy objectives and a non-racial and non-sexist democratic social order.

Page | 95

Trade unions act to protect the perceived interests of their members. The GB itself is a political forum because it provides for the representation of sectional interests, creating the conditions for the increasing fragmentation of the corporate system.

Post-Modern Leadership:

Bush (2003) note that post-modern leadership aligns closely with his subjective model of management. Similarly, Keough and Tobin (2001) say that ―current postmodern culture celebrates the multiplicity of subjective truths as defined by experience and revels in the loss of absolute authorityǁ.

The post-modern model suggests that leaders should respect, and give attention to, the diverse and individual perspectives of stakeholders. They should also avoid reliance on the hierarchy because this concept has little meaning in such a fluid organization.

Starratt (2001) aligns post modernity with democracy and advocates a ―more consultative, participatory, inclusionary stanceǁ, an approach

consistent with participative leadership. Managers need to facilitate participation by employees, executives, social groups and community in all issues that affect their interests.

Moral Leadership:

This model assumes that the critical focus of leadership ought to be on the values, beliefs, and ethics of leaders themselves. Authority and influence are to be derived from defensible conceptions of what is right or good. Sergiovanni (1984) says that ―excellent organizations have central zones composed of values and beliefs that take on sacred or cultural characteristicsǁ. Subsequently, he adds that ‗administering‘

is a ‗moral craft‘.

West-Burnham (1997) discusses two approaches to leadership, which may be categorized as ‗moral‘. The first he describes as ‗spiritual‘ and relates to ―the recognition that many leaders possess what might be called ‗higher order‘ perspectives. Such leaders have a set of principles, which provide the basis of self-awareness. The second category is ‗moral confidence‘, the capacity to act in a way that is consistent with an ethical system and is consistent over time.

Both moral and managerial leadership are required to develop a learning community: In the management the challenge of leadership is to make peace with two competing imperatives, the managerial and the moral.

Page | 96

The two imperatives are unavoidable and the neglect of either creates problems. Business organizations must be run effectively if they are to survive.

Instructional Leadership:

Instructional leadership differs from the other models reviewed in this chapter because it focuses on the direction of influence, rather than its nature and source. The increasing emphasis on managing teaching and learning as the core activities of educational institutions has led to this approach being endorsed, notably by the English National College for School Leadership, which includes it as one of its ten leadership propositions. Southworth (2002) says that ―instructional leadership ... is strongly concerned with motivating and learning as well as organization growthǁ.

Bush and Glover‘s (2002) definition stresses the direction of the influence process: Instructional leadership focuses on motivating and learning and on the behavior of employees in working places. The emphasis is on the direction and impact of influence rather than the influence process itself.

Instructional leadership is a very important dimension because it targets the organization‘s central activities. However, this paradigm underestimates other aspects of organizational life, such as socialization, employee‘s welfare, and self esteem.

Contingent Leadership:

The contingent model provides an alternative approach, recognizing the diverse nature of business contexts and the advantages of adapting leadership styles to the particular situation, rather than adopting a ‗one size fits all‘ stance:

This approach assumes that what is important is how leaders respond to the unique organizational circumstances or problems. There are wide variations in the contexts for leadership and that, to be effective, these contexts require different leadership responses, individuals providing leadership, typically those in formal positions of authority, are capable of mastering a large repertoire of leadership practices. Their influence will depend, in large measure, on such mastery.

India has one of the most diverse business systems in the world. It ranges from well-endowed large sized organizations, comparable to the best in developed countries, to tiny and small organizations without access to the most basic facilities, such as water, power, lighting and

Page | 97

sanitation. Given such disparities, it is unwise to prescribe one universal approach to organizational leadership and management. It is much better to equip principals with a ‗tool kit‘ of skills and the wisdom to know which approaches should be applied in the particular circumstances they are required to manage

Yukl (2002) note that ―the managerial job is too complex and unpredictable to rely on a set of standardized responses to eventsǁ.

Leadership requires effective diagnosis of problems, followed by adopting the most appropriate response to the issue or situation Morgan, (1997). This reflexive approach is particularly important in periods of turbulence when leaders need to be able to assess the situation carefully and react as appropriate rather than relying on a standard leadership model.

7.9 NATURE OF LEADERSHIP IN INDIAN ORGANIZATIONS

The Indian society is a traditional society and accordingly the value system of Indian leaders is strongly influenced by the joint family system and the concept of karta (head of Hindu undivided family) for many centuries. The head of the family has the control over all other family members. This importance and respect of power and authority of karta spread throughout the family including business organizations.

Although this trend of respect for the position of power is uniformly present throughout India, yet the leadership styles in the Indian business organizations vary with the form of the organization. Broadly, the business leadership in the Indian context has been classified into the following three types:

� Leadership in professionally managed organizations: here there is a significant degree of participative approach is visible in the leadership style of the managers.

� Leadership in public sector organizations: here the bureaucratic style of leadership is followed as these organizations are led by civil servants. The implications of this leadership are difference in status, large power gaps between superiors and subordinates, adherence to procedures and rules and impersonal relations.

� Leadership in family managed organizations: This type of business organizations have autocratic or benevolent authoritative style of leadership. These organizations have management by inheritance or management by chromosomes. As a result the sons and grandsons of entrepreneurs are automatically promoted without considering their actual competencies. These organizations are highly centralized, family

Page | 98

oriented organizational structure and authoritative in their approach towards employees.

In the initial stages of organizational evolution an authoritarian style is suitable but if the successors adopt the same style without any change or modification even when there is a significant growth in the organization, the results may not be impressive.

7.10 FACTORS AFFECTING BUSINESS LEADERSHIP IN INDIA IN 21ST CENTURY

The leadership scenario in India has undergone a significant transformation after liberalization and Privatization. Certain factors must be borne by the managers leading the Indian organizations in new millennium are as under:

� Employees today are more educated and aware about the things than in the past.

� Employees have more job opportunities available with them than in the past

� Employees have varied expectations from organizations and leadership and from nature of work than in the past.

� There is increased professionalism in employees and they expect same from their managers and leaders.

� The Indian managers believe that the subordinates can work only with supervision and does not have any sense of responsibility.

� Indian managers have a belief in group based participative decision making and they have little faith in the capacity of their employees for taking initiative and responsibility.

7.11 DIFFERENCES IN LEADERSHIP IN PUBLIC AND PRIVATE SECTOR IN INDIA

PUBLIC SECTOR

A public sector organization is assumed to operate in a different way than a private sector organization. By implication, the attitudes and behaviors of employees of those two types of organizations have been contrasted. Differences in culture, structure, interpersonal relations are highlighted. Leadership is an important and crucial variable that leads to

Page | 99

enhanced management capacity, as well as organizational performance. The leaders in public sector need to achieve several objectives like reduction in inter-regional disparities, earning a reasonable rate of return for generating surpluses for further investment, building infrastructure for development, generation of employment opportunities, diversification of economy and promotion of rapid economic growth. A public sector enterprise may be defined as any commercial or industrial undertaking owned and managed by the government with a view to maximize social welfare and uphold the public interest.

Characteristics of Public Sector Organizations:

� Government Ownership - The ownership and management of the organization will be with the Central government or state government or local authority or partly to private players. E.g. NTPC, ONGC � Financed From Government Funds - The public enterprises get funds from the Government funds and the government has to allocate funds in its budget. � Public Welfare - These organizations motive is not for profit but focuses on providing commodity or service at reasonable prices. E.g. Indian Oil Corporation, Steel Authority of India. � Public Utility Services - These organizations are for providing public utility services like telecommunications, infrastructure and transport.

PRIVATE SECTOR

In the last two decades there have been remarkable changes in the world economy as many countries are emphasizing upon the public sector in the economic domain of their respective economies found a new mantra of economic progression by giving more importance to privatization.

Deputy Chairman of the Planning Commission of India Motek Singh Ahluwalia30 writes about the economic strategy in the preface of the Eleventh Plan that as in most market economies, the dominant impulse for growth will come from the private sector. India is fortunate in having a strong private sector capability ranging from agriculture, which is entirely dependent on private farmers, most of whom have modest land holdings, through small and medium entrepreneurs in industry and services to larger domestic corporate entities, many of which benefit from FDI to varying degrees. The Eleventh Plan must ensure a policy environment that is supportive of this vibrant and globalized private sector which has an important contribution to make in India‘s future development.

Page | 100

It is found that the private sector is gradually stepping up its participation in new areas like infrastructure ranging from the road construction, electricity generation and distribution to the social sector like health, education and rural development. Anupam Rastogi31

notes that ―After more than a decade of liberalization, one can witness some private sector investments in the provisioning of infrastructure services at varied levels. The sectors such as telecom, roads and sea ports, oil and gas etc., which were opened to private sector earlier, are very competitive and service providers are going out of their way to get business. The consumers have shown increased sophistication over the years. They are price savvy and demanding in other waysǁ.

The Indian economy is now enjoying the benefit of the demographic dividend that would help it in being more competitive in the coming years where the private sector would be bestowedwith the supply of cheap and continuous flow of skilled labor force.

Differences of leadership in public and private enterprises

Public sector organizations are usually as complex as private sector organizations and it therefore is logical to find that the global leadership profile in private and public sector are similar to a very large extent. Leaders from the public and private sectors are indeed equally firm when it comes to making decisions, persuading interlocutors and leading and motivating teams. The differences observed are most of the time small, be it certainly not without some major consequences.

Private sector leaders have a clear tendency to go for short term results, being prepared to take calculated risks and to be optimistic about the outcome they can expect. In contrast, public sector leaders take way more distance from the problems they have to face, look strategically at the longer term and opt for a thoughtful, innovative and risk-aversive approach of solving problems.

These differences are clearly linked to the typical contexts in which these leaders have to operate. The following are the differences in leadership in Public and private sector32. � Leaders in the public sector are more focused on creating a long term strategy than on ‗winning in the short term. � Private sector leaders are essentially focused on the short-term and on quick results. � Public sector leaders are more inclined to 'control'; private sector leaders to 'believe and trust'. � Public sector leaders are less optimistic about the outcome of their actions, but they go for a more thoughtful approach.

Page | 101

� In the public sector, women leaders demonstrate a more outspoken profile. � Younger managers in the private sector get more opportunities and more room for self-development.

7.12 SUMMARY

Leader is a one who influences his follower to attainment of goals. Leadership is the stretch of changing things that can be changed, of providing new thinking, new energy, to the current situation. According to Deborah Allen ―Leader is defined someone who can

visualize a better world in the future and is able to convince others to join him/her on the journeyǁ. The leadership is widely recognized as having crucial importance for performance. One of the most important characteristics of leaders is to have an insight with which they can see what occurs in the group, organization or society and diagnose the way it could be resolved. Such an insight gives leaders energy and power to work. The Indian society is a traditional society and accordingly the value system of Indian leaders is the head of the family has the control over all other family members Public sector organizations are usually as complex as private sector organizations and it therefore is logical to find that the global leadership profile in private and public sector are similar to a very large extent.

7.13 QUESTIONS FOR DISCUSSION

1. What is the importance of leadership in and organization? 2. Explain characteristics of a leader? 3. Briefly discuss Reemergence of Trait Theory. 4. Discuss Situational and Contingency Theories. 5. Explain importance in the Hersey-Blanchard Model of Leadership. 6. Discuss any five important models of leadership. 7. What is the nature of leaders in Indian organizations? 8. What are the key factors differing in public and private organizations‘‘ leadership styles?

Page | 102

CHAPTE

R-8

CONTROLLING

Learning objectives

After reading this chapter, you will be able to understand:

� Why Controlling? And definitions � The control process

� Types of organizational controls �

Requirements for effective control �

Controlling techniques

� The control pyramid 8.1 INTRODUCTION

� Strategies for achieving organizational control

Simply speaking controlling is key element for every human being for success, if one not having control means he/she does not meet desired goals and loss survival. Before you control any human or machine first you should have proper control on you thank can provide controlling skills. Either manager or leader controlling people is very important to meet goals and objectives. It is simply ordering of our activities in order to meet out desired end by matching actual with desired.

For organizations controlling is an important function of management which guiding and managing an organization in repose to organizational and environmental changes. It measures current performance and comparing with predetermined standards. However, controlling function simply facilitate conditions knowing what is actually happening in comparison to present standards and then making any necessary corrections. In fact planning and controlling functions are closely related and these cannot be separated because plans and strategies can to be carried out in the absence of control. Hence controlling is the process of measuring progress toward planned performance and applying corrective measures.

In today‘s business we cannot step forward business functions without controlling, for example manager must control their people, inventories, costs, qualities and etc., these just few responsibilities and a lot more to do.

Page | 103

8.2 DEFINITION

Controlling is the process if measuring progress toward planned performance and applying corrective measures to ensure the performance

is in line with manager‘s objectives. —

Thomas.S.Batemen and Scott.A.Snell.

Simply put, controlling is defined as process of ensuring organizational activities are going according to plan, comparing actual performance to standards, and then taking corrective actions to deviations--- Leslie W.Rue and Lloyd L.Byars.

In the words of Koontz and O'Donnell - "Managerial control implies measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans."

In the words of Henry Fayol - "Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and the principles established. Its object is to find out the weakness and errors in order to rectify them and prevent recurrence. It operates on everything, i.e., things, people and actions".

It is simple to put few words on control form the above definitions. Many authors notion is same that controlling is a function that compares actual performance with standard or planned performance and taking remedial actions if deviations are found.

8.3 WHY CONTROLLING?

Managers at any level face critical problems. For example top level manager encounter problems when organization‘s goals are not being met, middle and lower level managers are facing problem when the departmental objective and production standards are not being met. In order to overcome these problems controlling function is designed to give the manager information regarding progress. Hence, manager can utilize to do following:

1. To make plans effective

2. To make organizational actives consistent. 3.

Controlling helps to prevent crises and update planes 4.

Control provides freed back and project status 5. Aids in

decision making 6. Provides standardize outputs and protect the organization ‘s assets.

Page | 104

8.4 THE CONTROL PROCESS

The process of control has three basic requirements: (1) Setting standards, (2) Measuring actual performance and Comparing with standard performance, and (3) Corrective actions for deviations.

Setting standards

Standard is a benchmark to measure performance. A standard delineates expected performance of the job or individual. Objectives are sources of setting standards. To meet organizational or individual objective standards are being established. In many cases standards draw out from objectives, in some cases objectives are used as standards and in other cases standards are determined by different methods and analysts. In any case standard should be flexible to adopt changing conditions.

Following points should be considered while setting standards: 1.

Standards should be easy to measure and define. 2. Standards

should be accurate, precise, acceptable and workable. 3. Standards

should be flexible. In general organizations prepare standards in areas like profitability, productivity, market share, product leadership and etc.,

Measuring actual performance

Developing standards is simple but it is most difficult task for manager measuring current performance because they are many activities that are hard to measure, for instance employee attitude. Employee attitude is associated with nature of the job they are doing, production goals they are assigned and befits given to them. The main purpose of measuring performance is to gather data and detect problem areas, finally the type of checks to be made.

After measuring performance compare actual activities to performance standards. While comparing the actual performance with the standards fixed, the manager has to find out not only the extent of variations but also the causes of variations.

Taking corrective actions for deviations

The third and last step of the control process, taking corrective actions, without actions there is no control. This step ensures where significant variances are discovered and where necessary operations to achieve the initially planned results. When performance deviates from standards, managers must determine what changes, if any, are necessary and how to apply them.

Page | 105

In the productivity and quality-centered environment, workers and managers are often empowered to evaluate their own work. After the evaluator determines the cause or causes of deviation, he or she can take the fourth step—corrective action. The most effective course may be prescribed by policies or may be best left up to employees' judgment and initiative.

8.5 TYPES OF ORGANIZATIONAL CONTROLS

Control can focus on events before, during, or after a process. For example, a local automobile dealer can focus on activities before, during, or after sales of new cars. Careful inspection of new cars and cautious selection of sales employees are ways to ensure high quality or profitable sales even before those sales take place. Monitoring how salespeople act with customers is a control during the sales task. Counting the number of new cars sold during the month and telephoning buyers about their satisfaction with sales transactions are controls after sales have occurred. These types of controls are formally called feed forward, concurrent, and feedback, respectively.

� Feed forward controls

Feed forward control is future oriented and aim to prevent problems before they arise. Sometimes called preliminary or preventive controls, attempt to identify and prevent deviations in the standards before they occur. Feed forward controls focus on human, material, and financial resources within the organization. These controls are evident in the selection and hiring of new employees. For example, organizations attempt to improve the likelihood that employees will perform up to standards by identifying the necessary job skills and by using tests and other screening devices to hire people with those skills.

� Concurrent controls

Concurrent control monitors ongoing employee activity to ensure consistency with quality standards. These controls rely on performance standards, rules, and regulations for guiding employee tasks and behaviors. Their purpose is to ensure that work activities produce the desired results. As an example, many manufacturing operations include devices that measure whether the items being produced meet quality standards. Employees monitor the measurements; if they see that standards are not being met in some area, they make a correction themselves or let a manager know that a problem is occurring.

Page | 106

� Feedback controls

Feedback control involves reviewing information to determine whether performance meets established standards. For example, suppose that an organization establishes a goal of increasing its profit by 12 percent next year. To ensure that this goal is reached, the organization must monitor its profit on a monthly basis. After three months, if profit has increased by 3 percent, management might assume that plans are going according to schedule.

8.6 REQUIREMENTS FOR EFFECTIVE CONTROL

1. Suitable The control system should be tailored to fit the requirement of the business. In simple words, the control system should be suitable to the needs of activity, organizational structure and managerial practices. It should reflect the plans that the organization designed to follow.

2. Timeliness

Information is life blood to any system. An effective control system should ensure timely information to required manager. For example sales managers preparing sales forecasts on quarterly, monthly and weekly basis, if the information used in theses forecast many not be accurate when compared with to accounting records prepared at the close of the period, the process of forecasting and revising forces the manager to generate and rely on timely information. Timeless should be the option for effective control of operations when choice made between timeliness and accuracy.

3. Ensure flexibility

Changes in plans, unpredicted circumstances and outright failures generally appear due to changes in business and market but control system should remain workable to these changes, if control remain effective it make flexible failures, development and changes of plans.

4. Economy of controls

Economy is key requisite of every control. A manager may faces intricacy and great deal in ascertaining a particular control system is worth or what it costs because the benefit organization gets from a control system should be more than its cost. If control system is tailored to the enterprise and its job, control will most likely be economical.

Page | 107

5. Fit to the organizational culture

An effective control system should fit to the organizational culture. For example, in free rein management employees are having freedom to take decisions and a tight control may go so strongly against the grain that it will be doomed to failure. On the other hand, participative management style employees are free to participate in decision making, a generalized and permissive control system will hardly succeed. Hence, any control technique or system should have compatibility with organizational structure and culture.

8.7 CONTROLLING TECHNIQUES

Management Audits

Management audit is used to evaluate effectiveness and efficiency of various systems within an enterprise. Management audits may be external or internal. External audit is conducted by other

organizations to evaluate company‘s position. Any company can conduct external audit to know competitors for strategic decisions. For example, a) determining strengths and weaknesses of competitor to find competitive advantage; and b) studying soundness of suppliers that to be select one as your supplier. Internal Audit related to

assessment of company‘s management functions; planning, organizing, leading and controlling. For example, internal audit asses 1) what company has done to improve customer service, 2) what the company has done for itself, like wise number of factors may be evaluated.

Budgetary control

One of most widely recognized and used device of managerial control is the budget. Budges are statements of anticipated results, either financial or non-financial. Financial budget deals with revenue and expenses, non-financial budgets deals with direct labor hours, materials, and sales volume

Types of budgets may be classified into several types:1) Sales budget, 2) Production budget, 3)Cost production budget, 4)cash budget, and 5) Master budget.

Page | 108

8.8 THE CONTROL PYRAMID

The idea of control pyramid relates to implementation of different controls in the organization. Controlling is used in all levels of organization but its nature vary rely upon the job. This concept describes simple controls first and then move to complex controls. Controls are divided into five types as presented bellow and shown in figure 8.1.

1. Foolproof controls: Deals with respective activities and requires

little thought (Example: Switch off lights).

2. Automatic controls: This type of control having machine or

computer based controlling and require monitoring of activities (Example: Regulation of plant temperature).

3. Operator controls: Operator controls require human response to

make it meaningful for the controller (Example: Accountant checking records).

4. Supervisory controls: Where in the control deals with the person or

persons implementing the controls (Example: Department manager checking employee performance).

5. Informational controls: This is the ultimate feedback loop in which the

manager should pool up the information given by the other controls (Example: Report summaries).

Figure-6.1: The Control Pyramid

Page | 109

8.9 STRATEGIES FOR ACHIEVING ORGANIZATIONAL CONTROL

According to William Ouchi manager can apply three types of strategies for achieving organizational control.

a) Bureaucratic Controls: Bureaucratic control approach uses rules,

regulations and legitimate authority aimed at performance standards. This approach produces best results where tasks are certain and workers are independent.

b) Market Controls: Studying market, prices, and profits is inevitable for

businesses. Market control approach relies on market mechanisms and regulates organizational activities such as specified goods and services. It works out best where tangible output can be identified and market can be established between parties.

c) Clan Controls: Unlike first two approaches, it does not assume that

the interest of the organization and individuals. It involves the use of culture, values, tradition, beliefs, trust, expectations and informal relationships of employees. Works best where there is ―no best wayǁ to

do a job and where employees are empowered to make decisions.

8.10 SUMMARY

Controlling is key element for every human being for success, if one not having control means he/she does not meet desired goals and loss survival. For organizations controlling is an important function of management which guiding and managing an organization in repose to organizational and environmental changes. In the words of Koontz and O'Donnell - "Managerial control implies measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans."The process of control has three basic requirements: (1) Setting standards, (2) Measuring actual performance and Comparing with standard performance, and (3) Corrective actions for deviations. Types of controls are formally called feed forward, concurrent, and feedback, respectively. The idea of control pyramid relates to implementation of different controls in the organization. At the end word we cannot step forward business functions without controlling.

Page | 110

8.11 QUESTIONS FOR DISCUSSION

1. Define controlling. Why it is significant?

2. What is the management control? And describe a model of the controlling process.

3. Describe different categories of control methods. 4. How control

pyramid useful to a manger in controlling? 5. What are the

strategies for achieving organizational control? 6. Discuss

requirements for effective controlling.

Page | 111

CHAPTER-9

ROLE OF INFORMATION SYSTEMS IN MANAGEMENT

Learning objectives

After reading this chapter, you will be able to understand:

� Business perspective on information systems � Companies need of information systems � Information

systems types

� How information systems are used in business perspective

� Necessity of information security

9.1INTRODUCTION

Information technology and business innovations were swiftly moved the nature of business in the global business. So, information is considered as most precious component an enterprise and technology is treated as driving force of both information and business. Observation of today business is evidence how business is relying upon technology. For example, high-speed Internet connections, portable computers and wireless networks are using in businesses for e-mail, information gathering and instant decision making. In addition, the rising internet cultures make available goods and services online and providing communication possibilities any time of the day over the internet among vendors, customers and employees.

“Management information system (MIS) refers to a planned system that helps to carry out management functions by collecting, storing and disseminating data.”MIS is system approach and need based system, has

multiple objectives such as data capturing processing, Storage, Retrieval and dissemination.

“Management information system also called as Management reporting

system, is designed to produce information needed for successful management of a process and departmentǁ.

9.2 INFORMATION SYSTEMS (IS) IN BUSINESS PERSPECTIVE

The applications of information technology integrates information processed activities, business process, and managerial activities to achieve strategic position and profitability of firm. As a manager, you‘ll need to know how information systems can make your business more competitive, efficient, and profitable. Many of you will work for firms that are intensively using information systems and making large investments in information technology.

Page | 112

Managers and business firms invest in information technology and systems because they provide real economic value to the business. Investment in information systems will benefit number of ways as following.

� To raise the ability to implement corporate strategies and achieve corporate goals

� Helps to increase market share

� Support to produce high-quality or low-cost

producer � To develop new products

� To increase employee productivity

� To get timely and quality of information in the

organization. � Increases return on investment � To create value for the firm.

� To improve execution of business processes

In addition three activities in an information system produce the information that organizations need to make decisions, control operations, analyze problems, and create new products or services. Few cases are compelling business must invest in information systems include to cope with governmental regulations or other environmental demands and to stay in business.

9.3 NEED FOR IS IN COMPANY

Information systems and information technology are two important components to any enterprise success. Like core functional areas of business such as marketing, finance, production and operation and human resources information systems also regarded as major functional area. Thus it is important to understand the area of information system just like any other functional area in the business. MIS is vital because all businesses have a must for information about the tasks which are to be performed. Information and technology is used as a tool for solving problems and providing opportunities for increasing productivity and quality.

To make easy the management decision making at all levels of company, the MIS must be incorporated. MIS units are companywide. MIS is available for the Top management. The top management of company should play an active role in designing, modifying and maintenance of the total organization wide management information system. Following are key function that MIS support to the organizations. � MIS support the Business Process: IS provides various kinds

of information systems for business process and to perform the daily routine transactions necessary to conduct business

Page | 113

� To support Operation of a Business Organization: Timely information is most precious to present business world. MIS facilitate not only timely information but also maintenance and enhancement which provide flexibility in the operation of organizations.

� Support Decision Making: IS helps managers to make decisions

that are unique, rapidly changing, and not easily specified in advance. Employees and manager are reliant on information systems for their operations and to meet the goals and objective of the organization.

� Support strategies for an Organization: Today each business

is running in a competitive market. MIS supports the organization to evolve appropriate strategies for the business to assent in a competitive environment.

9.4 TYPES OF INFORMATION SYSTEMS

No single system can provide and support all the information an organization needs. There are different interests, specialties, and levels in an organization, there are different kinds of systems. Types of information systems include transaction processing systems, decision support systems, group decision support systems, and executive support systems.

Transaction processing systems (TPS)

Transaction processing system is design serve the operational level of the organization and substitute computer for manual record keeping. By definition transaction processing requires highly structured decision because at the operational level, tasks, resources, and goals are predefined and highly structured TPS performs and records the daily routine transactions necessary to conduct business. Examples include payroll, sales order entry, billing, and employee record keeping. Decision support systems (DSS)

Decisions are inevitable to any manager of an organization. DSS server the management to take variety of decisions and it is designed to assist decisions that are unique, rapidly changing, and not easily specified in advance. DSS address critical problems where the procedure for arriving at a solution may not be fully predefined in advance. Decision support systems have more analytical power than other systems and allow managers to use computers directly to retrieve information for decisions on semi-structured problems.

DSS are designed so that users can work with them directly; these systems explicitly include user-friendly software. DSS are interactive; the user can change assumptions, ask new questions, and include new data.

Page | 114

DSS systems referred to as business intelligence systems because they focus on helping users make better business decisions.

Group decision support systems (GDSS)

Group decision support system is designed to support decisions on unstructured problems by a set of decision makers working together as a group. GDSS use Web-based tools for videoconferencing and electronic meetings and can support some group decision processes, but their focus is primarily on removing common communication barriers. GDSS make meetings more productive by using key elements: hardware, software and people. Many kinds of GDSS tools are available in the market for example Electronic questionnaires, Tools for voting or setting priorities, Idea organizers and etc.

But the underlying problems in group decision making have been the explosion of decision-maker meetings, the growing length of those meetings, and the increased number of attendees.

Executive support systems (ESS)

Executive support systems enable senior manager to make decisions at strategic level of the organization. These are designed to address nonroutine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution.

9.5 SYSTEMS FROM A BUSINESS FUNCTIONAL PERSPECTIVE

Information systems can be classified by the specific organizational function they serve as well as by organizational level. Almost all types of business organizations have accounting, marketing, finance, and human resources functions and information system to each function has developed.

Human resource information system

The human resources information system helps managers manage human resource of the organization -- identifying potential employees, recruiting and hiring, maintaining complete records on existing employees, creating programs to develop employee's talents and skills, termination, and benefit administration. For example at operational level it helps to train employees by tracking employee training skills and performance appraisal. Strategic level management use human resource information supports to human resource planning and management level it helps compensation analysis.

Sales and marketing information system

A Sales and marketing information system is a computer-based system that responsible for selling the organization‘s products or services to support the firm's management in solving problems that relate to the

Page | 115

marketing mix. Sales and marketing system is used in a number of ways. For example it At the strategic level, sales and marketing systems monitor trends affecting new products and sales opportunities, support planning for new products and services, and monitor the performance of competitors. At the management level, sales and marketing systems support market research, advertising and promotional campaigns, and pricing decisions. They analyze sales performance and the performance of the sales staff. At the operational level, sales and marketing systems assist in locating and contacting prospective customers, tracking sales, processing orders, and providing customer service support. Finance and accounting information system

The finance information system is capable of managing all finance related functions includes cash, stocks, bonds, and other investments, to maximize the return on these financial assets. The accounting information system performs functions includes financial records— receipts, disbursements, depreciation, payroll—to account for the flow of funds in a firm. The finance and accounting information systems found in large organizations because at all level of organization: strategic, management and operational levels finance and accounting information system are applied.

Manufacturing system

Producing goods and service is core function of manufacturing system. Manufacturing systems deal with the planning, development, and maintenance of production facilities; the establishment of production goals; the acquisition, storage, and availability of production materials; and the scheduling of equipment, facilities, materials, and labor required to fashion finished products. Example includes at operational level it deals with control the actions of machines and equipment. At management level, production planning and control and strategic level deal manufacturing goals of the firm.

9.6 INFORMATION SECURITY

Before computer introduced into business organizations were maintained and secured as paper records dispersed in separate business or organizational units. When computer has introduced in to business it is played a critical role in business and large amounts of data are stored in electronic form to make Information potentially be accessed by large numbers of people and by groups outside of the organization. Development of communications networks, information systems in different locations can be interconnected. This regard in order to make information secured firms need to make security and control a top priority.

Page | 116

Security refers to the policies, procedures, and technical measures used to prevent unauthorized access, alteration, theft, or physical damage to information systems.

Information systems are easily vulnerable because in an organizations technical, organizational, and environmental factors compounded by poor management decisions. It is possible to access data by unauthorized ways flowing over techniques includes tapping, sniffing, message alteration, hacking, virus and worms, theft and fraud, vandalism and denial of server attacks.

Protection of information resources requires a well-designed set of controls. Computer systems are controlled by a combination of general controls and application controls. General controls include software controls, physical hardware controls, computer operations controls, data security controls, controls over the systems implementation process, and administrative controls. Application controls include both automated and manual procedures that ensure that only authorized data are completely and accurately processed by that application.

9.7 SUMMARY

Management information system is a planned system that helps to carry out management functions by collecting, storing and disseminating data. Information and technology is treated as driving force of both information and business. Observation of today business is evidence how business is relying upon technology. The applications of information technology integrates information processed activities, business process, and managerial activities to achieve strategic position and profitability of firm.

Information systems and information technology are two important components to any enterprise success. To make easy the management decision making at all levels of company, the MIS must be incorporated. Types of information systems include transaction processing systems, decision support systems, group decision support systems, and executive support systems. Almost all types of business organizations have accounting, marketing, finance, and human resources functions and information system to each function has developed. When computer has introduced in to business it is played a critical role in business and large amounts of data are stored due to this Information is easily vulnerable. To protect information resources requires a well-designed set of controls.

Page | 117

9.8 QUESTIONS FOR DISCUSSION

1. What is management information system? 2. Briefly describe business perspectives on information system. 3. Distinguish between decision support system and MIS. 4. What is the need of MIS to a company? 5. Explain several types of information system in business perspective. 6. Compare transaction processing system with MIS. 7. What is information security?

Page | 118

CHAPTER-10

INTERNATIONAL MANAGEMENT

Learning objectives

After reading this chapter, you will be able to understand:

� The nature of international management

� Challenges of international manager

� What are multinational companies?

� Why management practices vary? � Management practices across nations in selected countries

10.1 INTRODUCTION

It is interesting to know international management practices. Previous chapters have explained all management theories and concepts but international management practices are varying country to country. This chapter has emphasized importance of international management, why management practices vary in countries and management practices of selected countries.

The structure of the business has seen dramatic growth after World War II this growth continuous to accelerate and expand business to all continents of the world. It results in activities exporting goods to other countries, importing raw materials, selling products or services to customers abroad, and transfer of funds to subsidiaries in other countries. Likewise international business operations started. Hence, international business refers to profit related activities conducted across national boundaries.

In recent years international management has accelerating its

importance, corporate community become more international. The

underlying reasons are a) Improvements in transportation and

communication b) Low production costs, c) Global markets are

more accessible and d) Availability of cheap labor and technology.

The concept of international management focuses on

international managerial issues related to the flow of people, goods and

money, managing better these in cross national boundaries.

International management is the process of managing business functions such as planning, organizing, leading and controlling in international business and pursuing of organizational objectives in more than one nation.

Page | 119

10.2 CHALLENGER OF INTERNATIONAL MANAGER

Executing responsibilities is a challenging task for global manager. Diversity appears in all functions of management du tot cultural, demographical and social factors. Hence, global managers have to make many adjustments in order to achieve organizational objectives. Following are key problems which challenges an international manager.

a) Cultural conflicts

b) Unfavorable political climate c) Unstable national economy d) Instable and inefficient government e) Knowledge and skill of work force f) Raw material scarcity g) Unfamiliar legal system h) Employee conflicts i) Gender biases

10.3 MULTINATIONAL CORPORATIONS (MNCS)

If an enterprise operating business in many countries and having headquarter in one country it called as multination corporations (MNCs).MNCs having three key characteristics; a) Large scale business units- turnover, assets, and volume of sales are quite large, b) Productive organizations-They produce goods and sales them in one brand name of trademark all over the world, and c) Operate globally-MNCs operate globally.Table10.1 is presented MNCs examples.

So many reasons that assist many companies become MNCs but the remarkable growth of transportation, communication and technology particularly during the last two decades made the world as a global village due to this reason during last two decades particularly world trade has increased, mutual dependence among the countries has raised and transportation development made distance among countries shorter and geographical barriers are wiped out.

MNCs are also called global or international or transnational corporations. As their names suggest, they have their roots in their down country, but have branches in many other countries. For example: the Unilever Company has its branch in Britain, but it has its subsidiary in Nepal, India, and Pakistan and other many counties. Thus a multinational company refers to those business organizations which have their main operation in a country and subsidence operation in many other countries.

There are four categories of multinational corporations

A. Multinational corporations: A decentralized corporation with strong

home country presence

Page | 120

B. Global companies: A centralized corporation that acquires cost

advantage through centralized production wherever cheaper resources are available. C. International company: A company that builds on the parent

corporation‘s technology. D. Transnational enterprise: A company which combines the

previous three approaches.

10.4 WHY MANAGEMENT PRACTICES VARY?

Table-10.1: MNCs Examples

Company Headquarters Industry

Quintiles United States health care/services

Microsoft United States information technology and software

Hitachi Tokyo Electronics

Diageo United Kingdom products, beverages, and tobacco

Hilti Liechtenstein production and building materials

Telefonica Spain telecommunications c

Roche Switzerland pharmaceuticals

Novo Nordisk Denmark pharmaceuticals

Atento Spain telephone support/sales

Renault Paris Motor Vehicles

A simple answer to this question is, ―a society is not staticǁ, and

changes are forever. People in the world having diversified cultures, behaviors, work attitudes, values and so on, it means human are one in body feature but many in behaviors. In addition market conditions, competitive environment and cost management issues are vary drastically. Like we can add geographic, demographic and economic, technical, legal and culture reasons to this question. The following concept has presented management practices in selected countries.

Page | 121

10.5 MANAGEMENT PRACTICES ACROSS NATIONS

Culture is the key energy that always influencing and guiding management practices of a country. None of management practice is universally applicable because the practices are not unique or not universal or not without any critics. We have witnessed in the recent past the introduction of various management theories, techniques, approaches and management styles. In this chapter the present session has discussed on management practices of United States, Japan, India and China.

U.S. Management style

U.S. style of management practices individualistic approach and Decision making is individual because managers are accountable for the decisions made within their areas of responsibility. American managers are more likely to take no notice of the opinions of subordinates which results in frustrations. Organizations have formal bureaucratic organizational structure and individual responsibility and accountability is key preference.

Planning of U.S style emphasis on short term and mangers prefer

individual Decision making, decision initiated at the top and flowing down, process of decision making swift but implementation process is slow. Organizations follow formal bureaucratic organizational structure and individual have responsibility and accountability on decisions. Staffing of the people out of schools and other companies and job of employee is not secured; promotion based on short term performance, primarily based on individual performance, loyalty to the profession. Leader acting as a decision maker and head of the group and follows directive style of leadership. Superior is controller of employees, focus on individual performance, and limited use of quality control circles. Japanese Management Style

Japanese management practices are different from the world managerial practices. Japan has had immense success in the industrialized world. It is the second largest economy in the world. Companies like Toyota, Sony, and Honda are multi-billion dollar companies. Japanese have an eye for quality and usually their management is comprised of old time technical people. Hence, Japan became leading industrial nations in this world. Japanese management was reliant on the philosophy and organization culture that emphasize, Japanese accepts ambiguity, uncertainty, and imperfection as much more of a given organization life. Hard work for common goals, consultative

and consensus decision making are key success factors of Japanese organizations. Characteristics of japans management style are the following.

Page | 122

Planning: group decision making with consensus allows many people in preparing and making the decision. Organizing: collective responsibility and accountability and informal organization structure. Staffing: young people hired out of school; hardly any mobility of people among companies, slow promotion through the ranks and Loyalty to the company. Leading: Leader acting as social facilitator and group member, paternalistic style and common values facilitating cooperation. Controlling: Control by peers, focus on group performance, and extensive use of Quality control circles.

Chinese Management Style

China is considered as an emerging tiger in the globalize world among the truly developed country. Behind the success of the Chinese there have some management factors which played an important role for assisting Chinese to be unique one in the modern competitive world. Management style of Chinese is not characterized as an exclusive one but the combination of Japanese and American.

Chinese planning is generally a short-term process with strong past and future orientations and decision-making is extremely centralized and strongly hierarchical. The Chinese generally believe that an established system is the best guard against the instability and conflict that can arise from unforeseen events. The enterprises are well equipped with a body of formalized regulations and rules about how things should be done, and tasks are highly structured. Staffing of employees is often hired because of personal connections. Employees are clearly assigned their duties and tasks and motivated through group rather than individual achievement.

Indian management style

In the history there were distinct Indian management dating from the times of Mauryas and Mughalas. Vidura Neeti from Mahabharata, Kautilya‘s Artha Shastra and other texts contain many relevant ideas on administration, leadership, strategies and system. At present India is a very young capitalist economy. The country for a long time tried embracing Soviet socialism. The country started to liberalize the economy in 1990's.The Indian companies‘ management style now is based on global models. And since they have been acquiring companies abroad over the past decade, the management style changes are inevitable. But old companies were very bureaucratic. The organizations promoted seniority and not potential and the global focus was missing. But Indian management style is still being explored and developed. Few management characteristics written bellow that are commonly found in Indian business.

Page | 123

In India, planning both short-term and long-term based on past success is important. Decisions making by the highest-ranking officials, since many companies are family run, this often includes only family members. Structures of Indian corporations are rigidly organized and hierarchical, and they maintain a highly centralized power structure. Indian companies are not accustomed to providing formal job descriptions for their workforce. The style of delegation varies according to a manager's taste. While some managers are comfortable delegating duties to select employees, others are not. Employee performance evaluations are a relatively new concept in Indian business. 10.6 SUMMARY

The structure of the business has seen dramatic growth after World War II this growth continuous to accelerate and expand business to all continents of the world. In recent years international management has accelerating its importance, corporate community become more international. International management is the process of managing business functions such as planning, organizing, leading and controlling in international business and pursuing of organizational objectives in more than one nation. Executing responsibilities is a challenging task for global manager. Diversity appears in all functions of management du tot cultural, demographical and social factors. Multination corporations are operating business in many countries and having headquarters in one country. None of management practice is universally applicable because the practices are not unique or not universal or not without any critics Culture is the key energy that always influencing and guiding management practices of a country.

10.7 QUESTIONS FOR DISCUSSION

1. What are the challenges of international manager? 2. Why management practices vary nation to nation? Explain with examples.

3. What are the key characteristics of American, Japanese, Chinese and Indian management practices? 4. Explain the nature of multinational companies.

5. Which county management style do your when become entrepreneur? Why?

Page | 124

CASE STUDY -1

Mr.Prajith is an assistant in an insurance company, is in charge of a group of clerical workers who review changed policies, endorsements, and riders, calculate commissions, and maintain records. He is very careful in work, and everything coming out of his group is perfect. He does not delegate authority and responsibility but rechecks in detail all the work turned out by his group. Mr.Prajith keeps turning back to them careless and inaccurate work until it is perfect. As a result he is busy from early morning until late at night doing detail work and neglecting his role as supervisor.

His workers have figured him out and are taking it easy. They do slapdash work and correct it as often as he returns it. The Manager is afraid that Mr.Prajith is overworking and heading for a nervous breakdown. Manager has told him in general terms to delegate authority and responsibility and to discipline his group. He says that you just can‘t find people any more who have pride in their work or concern for the company and that if he fires any of his people or they quit the replacements would probably be worse.

Questions:

1. What are some of the reasons why people do not delegate authority and responsibility?

2. What is Mr.Prajith‘ responsibilities as a supervisor?

3. What are some of the leadership characteristics that Mr.Prajith lacks?

CASE STUDY -2

Mr.pal supervise a group of 20 people of various specialists who were drawn from other groups in the company and brought together four months ago to work on a project. The work requires steady interaction between the various specialists in the group. They were cooperating well until three weeks ago when, on April 1, you brought up the subject of scheduling their summer vacations. You told them to decide among themselves when each one should take his vacation, since they knew which people could be absent at the same time without troublemaking the work. You gave them sheets listing the amount of vacation each was entitled to because of length of service. The periods are two weeks, three weeks, and four weeks. You reminded them that company policy forbids split vacations, off-season vacations, and vacation scheduling that disrupts production.

Page | 125

Although seniority governs vacation scheduling for hourly workers in the shop, it has never been established as a policy in salaried groups such as yours. The company has always stated that the requirements of the word govern the scheduling. Since you turned over the vacation scheduling to your group, the opportunists are buzzing around making deals that will fix themselves up with the choice schedules. People are aligning first with one faction and then with another, whichever will give them best deal. A few are refusing to deal on the grounds that their seniority or status should entitle them to first choice. All this political maneuvering is taking up time and interfering with the cooperation that is essential to the progress of the work.

Questions:

a. How should a supervisor go about setting up policies in a newly formed group?

b. What cautions should a supervisor observe in bringing subordinates into decision making?

c. How can the supervisor ward off problems of conflict between status and seniority?

CASE STUDY -3

There were five major banks in the city. All of them were affected in various degrees by a cost squeeze prevalent in the banking industry. Two of the banks laid-off several hundred employees. Pal Peter‘s Bank released 320 people, including 120 officers. Alex group released 700 employees, including 100 officers. Best Trust permeated the industry and many employees were worried about their jobs. The Heavy Trust, the fourth largest bank in the city, announced the release of 500 employees, 180 of whom were officers. Now the Best trust became really heavy. The Samuel Trust Company, second largest in the city, had no intention of releasing any employees. Even in the deep depression of the 1930s, no employee had ever been released because of poor business. The senior management of Samuel Trust simply planned to let a no-hiring rule and normal attrition handle the problem.

They were a conservative group and felt that any announcement of their decision might appear to be flamboyant in the banking community, so no mention was made to the press or to the employees of the bank. It was felt the employees would understand the bank‘s tradition of no releases due to business conditions, which wasn‘t a stated policy but had a long history. Over the next several weeks, many supervisors reported poor morale, jittery employees, and a drop in productivity. All of this was traced to retrenchments in competitor banks and the everpresent worry that Hawthorne would be next.

Page | 126

Questions:

a. Comment on senior management‘s decision not to announce their decision to either employees or the press.

b. If you were employed as a supervisor at Samuel Trust, what would you do to cope with the problem?

CASE STUDY -4

Henry Johnson is the chief engineer of AP Electric and Power, a large

utility company. AP, a progressive company, had been conducting

research for several years in a search for more effective ways to produce

electricity. Most of the plants used either oil or natural gas to develop

energy, and it was obvious that the other sources had to be explored.

Henry had been with AP Electric for 25 years, and he was considered an

excellent, innovative engineer who was very conservative in his

relationships with peers, superiors, and subordinates. During the last

three years he served on the company‘s research committee which

monitored both the research efforts and the budget needed to support

them. Among the projects being studied were solar energy, methane gas

derived from garbage and other vegetable waste such as corn stalks and

nuclear energy. The most promising possibility seemed to be

nuclear fuel. Many other utilities were using it and they appeared to

have few problems with its use. Records of other plants around the

country were checked, and after considerable deliberation top

management decided to go ahead and file for a permit with the public

utility commission (PUC). Henry was asked to assemble an

engineering team to work on the project, and he turned to his

brightest people, all of whom he believed would jump at the chance to

work on the project. He was right about the first four he spoke to.

When he asked Cris Kock, a brilliant young engineer, he was met

with a cold stare. ―If this company wants to go nuclear, I‘m not going to

help itǁ: What‘s more, I‘II testifies against the permit at the PUC hearingǁ.

Questions:

a. What should Henry do about Cris Kock?

b. If an employee is unhappy with his company‘s plans should he do more than quit?

c. To what extent is Cris Kock being unreasonable?

Page | 127

CASE STUDY -5

Mr. Siva was an excellent supervisor of stores in the Dawan Retail Store. He knew the well, maintains store up to date records and was willing to work overtime whenever necessary. Owner of the Retail store very much impressed with overall performance of Siva and was promoted to manager of the new store which was started in other city of the state. Almost from his first day in the new position trouble began to occur. Siva started too complained about his subordinates‘ lack of motivation and dedication, feeling that they were overpaid and that many should be fired.

This caused difficulty to Siva in the department to manage employees, and two of the better employees quit abruptly. Siva‘s boss discussed these problems with her, but after several such discussions Siva Helen still couldn‘t understand why she should approach her job differently. Finally his boss offered Siva his old job back as supervisor with no cut in pay. At first Siva was happy about this switch back to his old job. No more problems with those lazy employees. . But then he became worried about his lack of success as a manager, and this caused his performance to fall. Even though his boss reinforced him on several occasions, telling him that not everyone can succeed as a manager and that excellent sales people are very valuable to the store, nothing seemed to give assurance to Siva.

Questions:

a. Should he have been demoted back to his old position? Why? Why not?

b. Why was he promoted in the first place?

c. What might her boss have done to help Siva in the managerial assignment?

CASE STUDY -6

Miss. Sireesha had been with the company three years when she was promoted to manager of the HR department. Sireesha started with the company when she graduated from college as an HR major. She entered the organization as a management trainee, and during the one-year program she demonstrated considerable leadership ability as an informal leader her peers. Mary also impressed many senior managers in the company with her sense of responsibility and her willingness to work hard. All of her training assignments were completed on time with considerable skill for an inexperienced person.

After two years she is promoted as HR manager of the company. First three months of her job was successful and then she started facing problem of employees overwhelming.

Page | 128

In order to know the roots of the problem she was ordered a team to find facts. The results were surprising. People are working too hard (40% of men work more than 50 hours per week and 80% would like to work fewer hours), they are too distracted (mobile device users check their phones 150 times per day), and they are flooded with too many emails, conference calls, meetings, and other distractions. Results also ravels that the average office worker can only focus for seven minutes at a time before them either switch windows or check Face book. This became a major challenge to the HR manager.

Questions:

1. How Sireesha solve this problem as a less experienced

manager? 2. What are the reasons of employee overwhelming? CASE STUDY -7

XYZ IT solutions, it is a US based company established in 1999. Company idea was "having a diversity of perspectives leads to better decision-making, more relevant products, and makes work a whole lot more interesting." Mr. Steve was HR manager a fresh graduate from college directly appointed. Steve did not have experience in the job. accordance to idea company Steve had done recruitment and employees were as followed ratios: : 2 percent of employees were black and 3 percent Hispanic, women account for 37 percent of the workforce and whites make up only 50 percent of employees. Asians make up more than a third overall workforce. There appears to be a ceiling in the company that transcends demography. 23 percent of women, 78 percent of its U.S, only 19 percent of Asians have made it into senior-level positions leadership positions. But no black and Hispanic were given leadership positions.

Now company had a problem of leadership comparison. Employees compare that some groups in leadership do match their level of representation in the rest of the company. And also comparison rose internally among diversified people. This problem caused to poor performance of employees and company, so many projects were pending. New projects are not started yet. In Board of directors meeting Steve is asked remedies for the problem but he did not answer any solution. Finally Steve strongly warned and given 15 days time to solve the problem.

Page | 129

Questions:

1. Why employees care and compare the top level leadership with rest of the companies and inside other employees groups?

2. Assume your manager of the XYZ IT solutions, how can u solve the problem?

3. Is it possible to Mr. Steve solves the problem within 15 days? How?

Case Study-8

Sarada (who works for I-Apparels), and Aruna, (who works for Fashion Apparels), are employed as production managers. Both attend a Corporate committee meeting organized by a Production Management Institute (a professional body), of which they are members. During the lunch break, Sarada and Aruna discussed the various leadership styles that they were following in their respective organizations. Aruna told Sarada that she had a sociable personality and was optimistic that she will get on well with the workers in the factory. She went on to say that a total of 300 workers are employed, with 140 of them having been employed with the business for over 20 years, 100 are new trainees and the others, mostly unskilled. Aruna shared her opinion that she is failed to motivate unskilled workers and they are harder to motivate. Aruna is aware that new Health & Safety regulations are due to be implemented and this will require discipline in the workforce. She is thinking of adopting a more autocratic leadership style. Sarada told Aruna that she was newly appointed to the role of HR, and was relatively inexperienced. She pointed out that she manages a team of sixty workers, grouped into project teams with highly skilled and experienced staff in each team. Sarada mentioned that her predecessor was ostracized with the workforce since he adopted an autocratic style of leadership. In view of this, she had been thinking of adopting a democratic leadership style.

Questions:

1. Discuss whether or not Sarada and Aruna should adopt their proposed new leadership styles within their respective organizations. 2. With reference to each organization discuss the role of management in motivation.

Page | 130

References:

1. A Victor Cabot and Donald L. Harnett (1977), ―An Introduction to

Management Scienceǁ, Addison Wesley Publishing, Sydney. 2. Ahluwalia, Montek S. 2000. ‗Economic Performance of States in

Post-Reforms Period‘; Economic and Political Weekly, Vol. 35(19),

pp. 1637-1648

3. Allix, N.M., 4. Andrew J. Dubrin Business Publishing, Texas, 2nd Edition.

(2000), Despotic?ǁ Educational Management and

Administration, 28:pp. 7-20. ―Transformational Leadership: Democratic or (1985),ǁ Contemporary Applied Managementǁ

5. Anu Singh Lather, Shilpa Jain, and Anju Dwivedi Shukla (2010),

―Cross cultural conflict resolution styles: An extensive literature reviewǁ,

Asian Journal of Management Research, PP: 130-139.

6. Anwelsh (1981),ǁSkills of Managementǁ, AMA COM, New York, 1st

Edition.

7. Arther G.Bedeian (1989), ―Managementǁ, the Dryden Press, Chicago,

2nd Edition.

8. Bernard W. Taylor (1986), ―Introduction to Management Scienceǁ,

WMC Brown publisher, Lowa, 3rd Edition.

9. Caldwell, B., (1992), ―The Principal as Leader of the Self-Managing

School in Australiaǁ, Journal of Educational Administration, 30: pp. 619.

10. David H. Holt (1993), ―Management: Principles and Practicesǁ, PHI,

New Jersey, 3rd Edition.

11. Donald S. Miller, Stephen E.Catt, and James R.Carlsen (1996),

―Fundamentals of Managementǁ, West Publishing Company, New York.

12. Emer H. Burack and Nicholas J. Myths (1983), ―Introduction

to Managementǁ, John Wiley Sons, New York. 13. Frederic N. Firestone (1960), ―The Managerial Aspects of

Management practicesǁ, MSO Business Studies.

14. G.A. Cole (1990), ―Management Theory and Practiceǁ, DA Publishing

Ltd, London, 3rd Edition.

15. Geegory B Northcraff and Margaret A. Neale (1994), ―Organizational

Behavior: A Management Challengeǁ, The Dryden press, Florida,

2nd Edition.

16. Harold knoontz, Cryic O.Donnell and Heinz Weihrich (1980),

―Managementǁ, McGraw-Hill International Book Company, New

York, 7th Edition.

Page | 131

17. Harold Koontz and Heinz Weihrich (2004), ―Essentials of

Managementǁ, Tata McGraw-Hill Publishing Company, New Delhi, 6th

Edition.

18. Heinz Weihrich and Harold Knootz (1993),ǁ Management: A Global

Perspectiveǁ, McGraw-Hill International book company, New York, 1o Th

Edition.

19. Henry L. Tosi, John R. Rizzo and Stephen J. Carroll

(1990),ǁManaging Organizational Behaviorǁ, Harper and Row Publishing,

New York, 2nd Edition.

20. Ibid. Harms, P.D., and Marcus Credé (2010), ―Emotional

Intelligence and Transformational and Transactional Leadership: A

Meta-Analysisǁ Journal of Leadership & Organizational Studies, 17(1):pp.

5-17. 21. Ibid., Sun, Qian and Wilson H. S. Tong.2002.

‗Malaysia Privatization: A Comprehensive Study‘, Financial

Management, Vol. 31(4), pp. 79-105

22. Ivey G. W., Theresa J.B. and Kline T., (2010),ǁ Transformational and

Active Transactional Leadership in the Canadian Militaryǁ Leadership

& Organization Development Journal, 31 (3):pp. 246-262. 23. J.Cliftion

Williams, Andrew J. Dubrin, and Henry L.Sisk (1985),

―Management and Organizationǁ, South-Western Publishing Co., Ohio,

5th Edition.

24. James A.F Stonner (1982), ―Managementǁ PHI, New Jersey,

2nd Edition.

25. James A.F.Stonner and Cahrles Wankel (1986), ―Managementǁ, PHI,

New Jersey, 3nd Edition.

26. James A.Stonner and R.Edward Freeman (1989),ǁ Managementǁ

PHI, New Jersey, 4th Edition.

27. James A.Stonner and R.Edward Freeman (1992),ǁ Managementǁ

PHI, New Jersey, 5th Edition.

28. James H. Donnelly et.al (1984), ―Fundamentals of

Managementǁ, Business Publishing Inc, Texas, 5th Edition.

29. James H. Donnelly et.al (1992), ―Fundamentals of

Managementǁ, IRWIN Publishing, Boston, 8th Edition.

30. James M. Higgins (1994), ―The Management Challengesǁ, Macmillan

Publishing, New York, 2nd Edition.

31. Jay B. Barney and Ricky W.Griffin (1979), ―The Management

of Organizationsǁ, Houghton Miffin Company, Dallas.

32. John m. Irancevich, Peter Lorenzi, and Steven J. Sinner

(1994), ―Management: Quality and competitivenessǁ, Irwin Publishing,

Australia.

Page | 132

33. John M. Ivancevich, James H. Donnelly and James L. Gibson

(1989), ―Management: Principles and foundationsǁ, BPI-Irwin

publishing, Boston, 4th Edition.

34. John R.Schermerhorn, R. Julian Cattaneo, and Robert E.

Smith (1988), ―Management for Productivityǁ, John Wiley and Sons, New

York, 1st Edition.

35. Jon Katzenbach and Douglas K Smith, ―The Wisdom of

Teamsǁ, Creating the High-Performance Organization, Harvard Business

Review Press, 2003 36. K. N. Pradip (1995),ǁManagement Stylesǁ, Tata Mc Graw - Hill

Publishing Co. Ltd, New Delhi.

37. Kathryan M. Bartol and David C. Martin (1991),

―Managementǁ, McGraw Hill Inc, New York, 2nd Edition.

38. Kathryan M. Bartol and David C. Martin (1991),

―Managementǁ, McGraw-Hill, Inc., New York.

39. Keough, T., & Tobin, B. (2001). "Postmodern Leadership and

the policy Lexicon: From theory, proxy to practice" 40. L.M.Prasad (2003), ―Principles and Practices of Managementǁ,

Sultan Chan & Sons, New Delhi, 3rd Edition.

41. Lauriej Mullins (2002), ―Management and Organizational Behaviorǁ,

Pearson Education Ltd., Harlow, 6th Edition.

42. Lee. S.M (1987), ―An analysis of Japanese Success in productivity

and its implication.ǁ International Journal of Management. 43. Leithwood, K., (1994), ―Leadership for School Restructuringǁ,

Educational Administration Quarterly, 30: pp. 498-518. 44. Lemon, A.,

(2004), ―Redressing School Inequalities in the Eastern Cape South

Africaǁ, Journal of South African Studies, 30:pp. 269-290. 45. Leon C.

Megginson, Donald C. Mosley, and Paul H.Pietri (1992),

―Management: Concepts and Applicationsǁ, Harper Collins

Publishing, New York, 4th Edition.

46. Leslie W Rue and Lloyd L.Byars (2003), ―Management Skills

and Applicationǁ, McGraw-Hill, Inc., New York, 10th Edition. 47. Leslie

W. Rue and Lloyd L.Byars (1992), ―Management Skills and

Applicationsǁ, Irwin Publishing, Australia, 6th Edition.

48. Louis E. Boone and David L. Kurtz 1984), ―Principles of Managementǁ, Random House Business Division, New York, 2nd

49. Management: Concepts, Practice & Cases, By Dr. Karminder

Ghumanz pp-408-411, 2010

Page | 133

50. Max Taylor (1992),ǁCoverdale on Managementǁ, Butter Worth

Heinemann Ltd., Oxford, 2nd Edition.

51. Md Golam Mohiuddin (2012), ―A Comparative Study on

Different Styles of Managementǁ, European Journal of Business and

Management, 4(16), Pp: 45-57.

52. Michael A. Hitt, R.Dennis Middmist and Robert L.mathis

(1989),ǁManagement: Concept and Effective practicesǁ, West publishing

company, New York, 3rd Edition. 53. Michael Z .Broke (1994), ―International Managementǁ, Stankey

thornes Publishing Ltd, UK, 2nd Edition.

54. Miller, T.W., and Miller, J.M., (2001), ―Educational Leadership in the

New Millennium: A Vision for 2020ǁ, International Journal of Leadership

in Education, 4:pp.181-189

55. Morgan, G., (1997), ―Images of Organizationǁ, Sage Publication,

Newbury Park, C A.

56. Neinz Weihrich and Harold Knootz (2005), ―Management: A Global

Perspectiveǁ Tata McGraw Hill Publishing, New Delhi, 2nd Edition. 57. Pameela S.Lewis, Stephen H. Goodman, and Patricia M. Fandt

(1995), ―Management Challenges in 21st centuryǁ, West Publishing

Company.

58. Patrick M. Wright and Raymond A. Noe (1996), ―Management

of organizationsǁ, Irwin Publishing.

59. Peter F. Drucker (1980), ―Managing in trouble timeǁ, Harper and

row Publishing, New York.

60. Peter F. Drucker (1986), ―The Frontiers of Managementǁ, Thrumass

Tally books, New York.

61. Peter F. Drucker (1998), ―The Practices of Managementǁ,

Butter worth -Heinemann, Oxford.

62. Raghu Nadh (1988), ―Competitive Management: Regional Viewǁ,

Ballinger Publishing company, New York.

63. Rastogi, Anupam. 2004. ‗The Infrastucture Sector in India, 2002-3‘;

in India Infrastructure Report 2004 - Ensuring Value for Money; Oxford

University Press, New Delhi, pp. 22-51

64. Richar M. Hodgeth, and Donald F.Kurattco (1986),

―Management, Harcourt Brace Jovanovich Publishing, San Diego, 2nd

Edition. 65. Richard L. Daft (1993), ―Managementǁ, The Dryden Press,

Florida, 3rd Edition.

66. Richard L. Draft and Patricia A. Fitzgerald (1992), ―Managementǁ,

the Dryden Press, Florida, 1st Edition.

Page | 134

67. Rickey W. Griffin (1990), ―Managementǁ, Houghton Mifflin

Company, Boston, 3rd Edition.

68. Ricky W. Giffen (1999),ǁ Managementǁ, Houghton Miffin Company,

Boston, 6th Edition.

69. Robert kreitner (1995), ―Managementǁ, Houghton Mifflin Company,

Boston, 6th Edition. 70. Robert M. Fulmer (1988), ―The New Managementǁ, Macmillan

Publishing Company, New York, 4th Edition.

71. Robert N. Lussier (1997), ―Management: Concepts, Applications and

Skill Developmentǁ South Western College Publishing, Ohio. 72. Robert

P. Gatewad et.al (1995), ―Managementǁ, Irwin Publishing, Boston.

73. Ronald S. Burke and Lester R. Bittel (1981), ―Introduction to

Management Practiceǁ, McGraw Hill, New York.

74. Rose Mary Stewart (1991, ―Managing Today and Tomorrowǁ,

Macmillan Publishing, London.

75. Rose Mary Stewart (1997), ―The Reality of Managementǁ,

ButterWorth-Heineman, Oxford, 3rd Edition.

76. Ross A. Webber (1979), ―Management: Basic elements of managing

and organizationsǁ, Richar D.Irwin Inc., Illinois.

77. Samuel C. Certo (1985), ―Principles of Modern Managementǁ, WMC

Brown Company Publishing, LOWA, 3rd Edition.

78. Samuel C. Certo and Stress H. Appelbaum (1983), ―Principles

of Modern Management: A Canadian Perspectiveǁ, WMC Brown Company

Publishing, LOWA.

79. Samuel C.Certo (1980), ―Principles of Modern Managementǁ, WMC

Brown Company Publishing, LOWA.

80. Samuel C.Certo et.al (1989), ―Modern Management in Canadaǁ, PHI,

Canada, 4th Edition.

81. Sergiovanni, T.J. (1984), ―Leadership and Excellence in Schoolingǁ,

Educational Leadership, 41(5):pp. 4-13.(Repeat)

82. Starratt, R.J., (2001), ―Democratic Leadership Theory in Late

Modernity: An Oxymoron or Ironic Possibility?ǁ, International Journal of

Leadership in Education, 4:pp.333-352.

83. Stephen P. Robbins (1988), ―Managementǁ, Prentice Hall Inc., New

Jersey, 2nd edition.

84. Stephen P. Robbins (1991), ―Managementǁ, Prentice Hall Inc., New

Jersey, 3rd Edition.

Page | 135

85. Stephen P. Robbins (1997), ―Management Todayǁ, Prentice Hall Inc.,

New Jersey. 86. Stephen P. Robbins and Mary Coulter (1996), ―Managementǁ,

Prentice Hall Inc., New Jersey, 5th Edition.

87. Stephen P. Robbins and Mary Coulter (2002), ―Managementǁ,

Prentice Hall Inc., New Delhi, 7th Edition.

88. T. Rama Swamy (2005), ―Principles of Managementǁ, Himalaya

Publishing House, New Delhi, 7th Edition.

89. Thomas J. Atchison and Winston W.Hill (1978), ―Management

Todayǁ, Harcourt Brace Jovanovich Inc, New York.

90. Thomas S.Batmen and Scott A. Snell (1999),ǁ Management: Building

Competitive Advantageǁ, McGraw-Hill, Inc., New York, 4th Edition. 91. Tony J. Watson (1994),ǁ In Search of Managementǁ, Routledge

publishing, London.

92. W.Jack Duncan (1983), ―Managementǁ, Random House

Business Division, New York.

93. William A. Preshing, ―Business Management in Canadaǁ, John

Wiley publisher, Canada, 2nd Edition.

94. William L. Dejon (1978), ―Principle of Management: Text and Casesǁ,

Benjamin/Cummings Publishing Company Inc, California. 95. www.nios.ac.in/srsec319new/319EL8.pdf 96. www.oecd.org/dataoecd/0/34/2434104.pdf 97. Bass, B. M., 18(4); pp. 19-31. (1990), ―From Transactional to Transformational Leadership: Learning to Share the Visionǁ, Organizational Dynamics,

98. Bass, B. M., (1990), ―Handbook of Leadership: A Survey of Theory

and Researchǁ, Free Press, New York, USA

99. Bush, T., and Glover, D., (2002), ―School Leadership: Concepts and

Evidence‘, National College for School Leadership, Nottingham. 100. Charbonneau, D., (2001), ―Influence Tactics and Perceptions of

Transformational Leadershipǁ, The Leadership & Organization

Development Journal, 25(7): pp. 565-576.

101. Friedman, A. A., (2004). Beyond Mediocrity: Transformational

Leadership within a Transactional Frameworkǁ, International

Journal Leadership in Education, 7(3): pp. 203-224. 102. Southworth, G., (2002), ―Instructional Leadership in Schools:

Reflections and Empirical Evidenceǁ, School Leadership and

Management, p. 22.

Page | 136

103. Trent Keough and Brian Tobin (2001), ―Postmodern Leadership

and the Policy Lexicon: From Theory, Proxy to Practiceǁ Laval University,

Quebec City.

104. Vroom, V. H. and Jago, A. G.,(1988), 105. West-Burnham, J., Reengineering pp.231-243.

―The New Leadership: Managing Participation in Organizationsǁ,

Prentice-Hall, New Delhi. (1997), ―Leadership for Learning: ‗Mind Setsǁ, School Leadership and Management, 17: 106. Yukl, G. A., (2002), ―Leadership in Organizationsǁ, 5th Edition,

Prentice-Hall. Upper Saddle

107. Zahedi, Shamsolsadat (1999), "Comparative Study on Leadership

Styles", Governmental Management, 45&46(2): pp. 14-32. 108. http://www.forbes.com/sites/joshbersin/2014/03/15/whycompanies-

fail-to-engage-todays-workforce-the-overwhelmed-employee/ 109. http://www.washingtonpost.com/blogs/the

switch/wp/2014/07/24/tech-companies-diversity-problems-are-

evenworse-at-the-leadership-level/

Page | 137

Acknowledgement

In developing this book, we have been greatly aided by many individuals to whom we owe a great debt of gratitude.

We thank to so many people who helped us though out this book.

We deeply appreciate the support we receiving our publishing editor and team.

A special thank goes to my wife Mrs. Sireesha Pandu for valuable support to write this book.

We are indebted to our families, friends and colleagues for their numerouscomments, ideas and support that they have been provided.

We express our thanks to all who helped us in writing this book successfully.

We eagerly look forward for suggestions for improvements in this book.