1. How do you define Management?

/ How would you

define Management? October-2010, November-
2007
Management in all business and organizational activities is the act of getting people
together to accomplish desired goals and objectives using available resources
efficiently and effectively. Management comprises planning, organizing, staffing,
leading or directing, and controlling an organization (a group of one or more people
or entities) or effort for the purpose of accomplishing a goal. Resourcing
encompasses the deployment and manipulation of human resources, financial
resources, technological resources, and natural resources.

Since organizations can be viewed as systems, management can also be defined as

human action, including design, to facilitate the production of useful outcomes from
a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to
attempting to manage others.

Management is the process of reaching organizational goals by working with and

through people and other organizational resources.

Management has the following 3 characteristics:

1. It is a process or series of continuing and related activities.

2. It involves and concentrates on reaching organizational goals.
3. It reaches these goals by working with and through people and other
organizational resources.

Some definitions of management are:

Organization and coordination of the activities of an enterprise in

accordance with certain policies and in achievement of clearly defined
objectives. Management is often included as a factor of production along with
machines, materials, and money. According to the management guru Peter
Drucker (19092005), the basic task of a management is twofold: marketing and
innovation.

Directors and managers have the power and responsibility to make decisions
to manage an enterprise when given the authority by the shareholders. As a
discipline, management comprises the interlocking functions of formulating
corporate policy and organizing, planning, controlling, and directing the firm's
resources to achieve the policy's objectives. The size of management can range
from one person in a small firm to hundreds or thousands of managers in
 multinational companies. In large firms the board of directors formulates the
policy which is implemented by the chief executive officer.

Management

Management is
1. the act or manner of managing; handling, direction, or control.
2.skill in managing; executive ability: great management and tact.
3.the person or persons controlling and directing the affairs of a business,
institution, etc.: The store is under new management.
4.executives collectively, considered as a class ( distinguished from labor).
In general, management is the activity of resolving a disorderly situation into an
intentionally orderly situation, to achieve pre-determined (i.e., purposeful)
outcomes.

Since disorder continuously arises from creativity, destruction, decay, variance,

versioning, chaos, and other natural and intentional changes, resolving that disorder
into an intended order requires continuous tracking and adjustments in the
"architecture" of the intended order's parts, part relationships, and part and
relationship attributes.

Management is a practice of utilizing all available resources to obtain a desired

result.

Management is necessary because 1) A desired result must be established, and 2)

Someone must be delegated, or assume the authority, to obtain, organize, guide,
and direct those resources toward the desired result. Someone must "manage" the
entire process. For that reason, all persons involved must agree to the desired
result, and even if not in total agreement with the plan being advocated, still agree
to the plan so as not to consciously or unconsciously sabotage the journey.

Assuming that you are talking about management in our industry, I might expand
that I've found less problems within our own companies but more problems with
customers and subcontractors - all integral parts of "process" and desired "result."

The problem with subcontractors, when they occur, was because their own
priorities, important or trivial, trumped "our" desired result. They just didn't care.
The problem with customers was one of two, and sometimes included both: Either
they were sleazy, or they just could not grasp the significance of every single
aspect of the "process" of the project.

I think it's safe to say that the success of any managed project is determined in
direct ratio to the control of all resources utilized, especially human resources. In
our industry, we have less control over subtrontractors, suppliers and customers
than those in our own "house." And if one cannot even control one's own house, then
there will never be control over anyone else's house.

Management is the art of getting things done from others. Management is a

universal phenomenon and it exists in all the sectors. In case of private sector the
management is very transparent. The goals are properly defined and all the
employees are very well aware of their goals and are rewarded well for hard work.
In case of public sector, theres not that much transparency.

2. To be successful in management arena, top

management should have a clear vision- Explain.
October-2010
Vision: Defines the way an organization or enterprise will look in the future. Vision is a
long-term view, sometimes describing how the organization would like the world to be in
which it operates. For example, a charity working with the poor might have a vision
statement which reads "A World without Poverty."

A Vision statement outlines what the organization wants to be, or how it wants
the world in which it operates to be. It concentrates on the future. It is a source of
inspiration. It provides clear decision-making criteria.

Features of an effective vision statement include:

Clarity and lack of ambiguity

Vivid and clear picture
Description of a bright future
Memorable and engaging wording
Realistic aspirations
Alignment with organizational values and culture

To become really effective, an organizational vision statement must (the theory states)
become assimilated into the organization's culture. Leaders have the responsibility of
communicating the vision regularly, creating narratives that illustrate the vision, acting as
role-models by embodying the vision, creating short-term objectives compatible with the
vision, and encouraging others to craft their own personal vision compatible with the
organization's overall vision. In addition, mission statements need to be subjected to an
internal assessment and an external assessment. The internal assessment should focus on
how members inside the organization interpret their mission statement. The external
assessment which includes all of the businesses stakeholders is valuable since it
offers a different perspective. These discrepancies between these two assessments can
give insight on the organization's mission statement effectiveness.

Vision and Mission

Vision
To be a customer-oriented organization that value-adds its way to leadership through people, effective
communication channels and technology management.

Mission
Customer satisfaction and employee empowerment in tandem with innovation and excellence are the key factors
propelling NPT forward. To work together with our customers to help them achieve their goals. Our success lies in
your success.

Values
Honesty, integrity, dedication and commitment will always be our priority and trademark. Dignity and respect to
all will be our guiding principles in every dealing with customers and suppliers.
3. What are the basic activities those comprise the
management process? April-2007
What are the four basic activities that comprise the management process? How are they
related to one another?

" The four basic activities that comprise the management process are as follows:

Planning and Decision Making, Organizing, Leading, and Controlling. Managers engage
in these activities to combine human, financial, physical, and information resources
efficiently (using resources wisely and in a cost-effective way) and effectively (making
the right decisions and successfully implementing them) and to work toward achieving
the goals of the organization.

Planning and Decision Making set the organization's goals and decides how best to
achieve them. Organizing then determines how best to group activities and resources.
Leading motivates members of the organization to work in the best interests of the
organization. Controlling monitors and corrects ongoing activities to facilitate goal
attainment."

4. Explain each of the activities of management process?

April-2007
Main Functions of Management
By Ashani Wijesinghe

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There are four main functions of management.

1. Planning.
2. Organizing.
3. Leading.
4. Controlling.

Planning.

Planning is an important managerial function. It provides the design of a desired future

state and the means of bringing about that future state to accomplish the organization's
objectives. In other words, planning is the process of thinking before doing. To solve the
problems and take the advantages of the opportunities created by rapid change, managers
must develop formal long- and short-range plans so that organizations can move toward
their objectives.

It is the foundation area of management. It is the base upon which the all the areas of
management should be built. Planning requires administration to assess; where the
company is presently set, and where it would be in the upcoming. From there an
appropriate course of action is determined and implemented to attain the company's goals
and objectives

Planning is unending course of action. There may be sudden strategies where companies
have to face. Sometimes they are uncontrollable. You can say that they are external
factors that constantly affect a company both optimistically and pessimistically.
Depending on the conditions, a company may have to alter its course of action in
accomplishing certain goals. This kind of preparation, arrangement is known as strategic
planning. In strategic planning, management analyzes inside and outside factors that may
affect the company and so objectives and goals. Here they should have a study of
strengths and weaknesses, opportunities and threats. For management to do this
efficiently, it has to be very practical and ample.

Characteristics of planning.

Goal oriented.
Primacy.
Pervasive.
Flexible.
Continuous.
Involves choice.
Futuristic.
Mental exercise.
Planning premises.

Importance of planning.

* Make objectives clear and specific.

* Make activities meaningful.
* Reduce the risk of uncertainty.
* Facilitators coordination.
* Facilitators decision making.
* Promotes creativity.
* Provides basis of control.
* Leads to economy and efficiency.
* Improves adoptive behavior.
* Facilitates integration.

Formal and informal planning.

Formal planning usually forces managers to consider all the important factors and focus
upon both short- and long-range consequences. Formal planning is a systematic planning
process during which plans are coordinated throughout the organization and are usually
recorded in writing. There are some advantages informal planning. First, formalized
planning forces managers to plan because they are required to do so by their superior or
by organizational rules. Second, managers are forced to examine all areas of the
organization. Third, the formalization it self provides a set of common assumptions on
which all managers can base their plans.

Planning that is unsystematic, lacks coordination, and involves only parts of the
organizations called informal planning. It has three dangerous deficiencies. First, it may
not account for all the important factors. Second, it frequency focuses only on short range
consequences. Third, without coordination, plans in different parts of the organization
may conflict.
Stages in planning.

The sequential nature of planning means that each stage must be completed before the
following stage is begun. A systematic planning progress is a series of sequential
activities that lead to the implementation of organizational plans.

The first step in planning is to develop organizational objectives.

Second, planning specialists and top management develop a strategic plan and
communicate it to middle managers.
Third, use the strategic plans to coordinate the development of intermediate plans
by middle managers.
Fourth, department managers and supervisors develop operating plans that are
consistent with the intermediate plans.
Fifth, implementation involves making decisions and initiating actions to carry
out the plans.
Sixth, the final stage, follow-up and control, which is critical.

The organizational planning system.

A coordinated organizational planning system requires that strategic, intermediate, and

operating plans be developed in order of their importance to the organization. All three
plans are interdependent with intermediate plans based on strategic plans and operating
planes based on intermediate plans. Strategic plans are the first to be developed because
they set the future direction of the organization and are crucial to the organization's
survival. Thus, strategic plans lay the foundation for the development of intermediate and
operating plans. The next plans to be developed are the intermediate plans; intermediate
plans cover major functional areas within an organization and are the steppingstones to
operating plans. Last come operating plans; these provide specific guidelines for the
activities within each department.

Organizing.

The second function of the management is getting prepared, getting organized.

Management must organize all its resources well before in hand to put into practice the
course of action to decide that has been planned in the base function. Through this
process, management will now determine the inside directorial configuration; establish
and maintain relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the
different divisions or departments. They also see to the harmonization of staff, and try to
find out the best way to handle the important tasks and expenditure of information within
the company. Management determines the division of work according to its need. It also
has to decide for suitable departments to hand over authority and responsibilities.

Importance of the organization process and organization structure.

 1. Promote specialization.
2. Defines jobs.
3. Classifies authority and power.
4. Facilitators' coordination.
5. Act as a source of support security satisfaction.
6. Facilitators' adaptation.
7. Facilitators' growth.
8. Stimulators creativity.

Directing (Leading).

Directing is the third function of the management. Working under this function helps the
management to control and supervise the actions of the staff. This helps them to assist the
staff in achieving the company's goals and also accomplishing their personal or career
goals which can be powered by motivation, communication, department dynamics, and
department leadership.

Employees those which are highly provoked generally surpass in their job performance
and also play important role in achieving the company's goal. And here lies the reason
why managers focus on motivating their employees. They come about with prize and
incentive programs based on job performance and geared in the direction of the
employees requirements.

It is very important to maintain a productive working environment, building positive

interpersonal relationships, and problem solving. And this can be done only with
Effective communication. Understanding the communication process and working on
area that need improvement, help managers to become more effective communicators.
The finest technique of finding the areas that requires improvement is to ask themselves
and others at regular intervals, how well they are doing. This leads to better relationship
and helps the managers for better directing plans.

Controlling.

Managerial control is the follow-up process of examining performance, comparing actual

against planned actions, and taking corrective action as necessary. It is continual; it does
not occur only at the end of specified periods. Even though owners or managers of small
stores may evaluate performance at the end of the year, they also monitor performance
throughout the year.

Types of managerial control:

* Preventive control.

Preventive controls are designed to prevent undesired performance before it occurs.

* Corrective control.
Corrective controls are designed to adjust situations in which actual performance has
already deviated from planned performance.

Stages in the managerial control process.

The managerial control process is composed of several stages. These stages includes

1. Determining performance standards.

2. Measuring actual performance.
3. Comparing actual performance against desired performance (performance
standards) to determine deviations.
4. Evaluating the deviations.
5. Implementing corrective actions.

2) Describe how this each function leads to attain the organizational objectives.

Planning

Whether the system is an organization, department, business, project, etc., the process of
planning includes planners working backwards through the system. They start from the
results (outcomes and outputs) they prefer and work backwards through the system to
identify the processes needed to produce the results. Then they identify what inputs (or
resources) are needed to carry out the processes.

* Quick Look at Some Basic Terms:

Planning typically includes use of the following basic terms.

NOTE: It is not critical to grasp completely accurate definitions of each of the following
terms. It is more important for planners to have a basic sense for the difference between
goals/objectives (results) and strategies/tasks (methods to achieve the results).

Goals

Goals are specific accomplishments that must be accomplished in total, or in some

combination, in order to achieve some larger, overall result preferred from the system, for
example, the mission of an organization. (Going back to our reference to systems, goals
are outputs from the system.)

Strategies or Activities

These are the methods or processes required in total, or in some combination, to achieve
the goals. (Going back to our reference to systems, strategies are processes in the
system.)

Objectives
Objectives are specific accomplishments that must be accomplished in total, or in some
combination, to achieve the goals in the plan. Objectives are usually "milestones" along
the way when implementing the strategies.

Tasks

Particularly in small organizations, people are assigned various tasks required to

implement the plan. If the scope of the plan is very small, tasks and activities are often
essentially the same.
Resources (and Budgets)

Resources include the people, materials, technologies, money, etc., required to implement
the strategies or processes. The costs of these resources are often depicted in the form of a
budget. (Going back to our reference to systems, resources are input to the system.)

Basic Overview of Typical Phases in Planning

Whether the system is an organization, department, business, project, etc., the basic
planning process typically includes similar nature of activities carried out in similar
sequence. The phases are carried out carefully or -- in some cases -- intuitively, for
example, when planning a very small, straightforward effort. The complexity of the
various phases (and their duplication throughout the system) depends on the scope of the
system. For example, in a large corporation, the following phases would be carried out in
the corporate offices, in each division, in each department, in each group, etc.

1. Reference Overall Singular Purpose ("Mission") or Desired Result from System.

During planning, planners have in mind (consciously or unconsciously) some overall

purpose or result that the plan is to achieve. For example, during strategic planning, it is
critical to reference the mission, or overall purpose, of the organization.

2. Take Stock Outside and Inside the System.

This "taking stock" is always done to some extent, whether consciously or unconsciously.
For example, during strategic planning, it is important to conduct an environmental scan.
This scan usually involves considering various driving forces, or major influences, that
might effect the organization.

3. Analyze the Situation.

For example, during strategic planning, planners often conduct a "SWOT analysis".
(SWOT is an acronym for considering the organization's strengths and weaknesses, and
the opportunities and threats faced by the organization.) During this analysis, planners
also can use a variety of assessments, or methods to "measure" the health of systems.
4. Establish Goals.

Based on the analysis and alignment to the overall mission of the system, planners
establish a set of goals that build on strengths to take advantage of opportunities, while
building up weaknesses and warding off threats.

5. Establish Strategies to Reach Goals.

The particular strategies (or methods to reach the goals) chosen depend on matters of
affordability, practicality and efficiency.

6. Establish Objectives Along the Way to Achieving Goals.

Objectives are selected to be timely and indicative of progress toward goals.

7. Associate Responsibilities and Time Lines with Each Objective.

Responsibilities are assigned, including for implementation of the plan, and for achieving
various goals and objectives. Ideally, deadlines are set for meeting each responsibility.

8. Write and Communicate a Plan Document.

The above information is organized and written in a document which is distributed

around the system.

9. Acknowledge Completion and Celebrate Success.

This critical step is often ignored -- which can eventually undermine the success of many
of your future planning efforts. The purpose of a plan is to address a current problem or
pursue a development goal. It seems simplistic to assert that you should acknowledge if
the problem was solved or the goal met. However, this step in the planning process is
often ignored in lieu of moving on the next problem to solve or goal to pursue. Skipping
this step can cultivate apathy and skepticism -- even cynicism -- in your organization. Do
not skip this step.

To Ensure Successful Planning and Implementation:

A common failure in many kinds of planning is that the plan is never really implemented.
Instead, all focus is on writing a plan document. Too often, the plan sits collecting dust on
a shelf. Therefore, most of the following guidelines help to ensure that the planning
process is carried out completely and is implemented completely -- or, deviations from
the intended plan are recognized and managed accordingly.

Involve the Right People in the Planning Process

Going back to the reference to systems, it is critical that all parts of the system continue
to exchange feedback in order to function effectively. This is true no matter what type of
system. When planning, get input from everyone who will responsible to carry out parts
of the plan, along with representative from groups who will be effected by the plan. Of
course, people also should be involved in they will be responsible to review and authorize
the plan.

Write Down the Planning Information and Communicate it Widely

New managers, in particular, often forget that others do not know what these managers
know. Even if managers do communicate their intentions and plans verbally, chances are
great that others will not completely hear or understand what the manager wants done.
Also, as plans change, it is extremely difficult to remember who is supposed to be doing
what and according to which version of the plan. Key stakeholders (employees,
management, board members, founders, investor, customers, clients, etc.) may request
copies of various types of plans. Therefore, it is critical to write plans down and
communicate them widely.

Goals and Objectives Should Be SMARTER

SMARTER is an acronym, that is, a word composed by joining letters from different
words in a phrase or set of words. In this case, a SMARTER goal or objective is:

Specific:

For example, it is difficult to know what someone should be doing if they are to pursue
the goal to "work harder". It is easier to recognize "Write a paper".

Measurable:

It is difficult to know what the scope of "Writing a paper" really is. It is easier to
appreciate that effort if the goal is "Write a 30-page paper".

Acceptable:

If I am to take responsibility for pursuit of a goal, the goal should be acceptable to me.
For example, I am not likely to follow the directions of someone telling me to write a 30-
page paper when I also have to five other papers to write. However, if you involve me in
setting the goal so I can change my other commitments or modify the goal, I am much
more likely to accept pursuit of the goal as well.

Realistic:

Even if I do accept responsibility to pursue a goal that is specific and measurable, the
goal will not be useful to me or others if, for example, the goal is to "Write a 30-page
paper in the next 10 seconds".
Time frame:

It may mean more to others if I commit to a realistic goal to "Write a 30-page paper in
one week". However, it will mean more to others (particularly if they are planning to help
me or guide me to reach the goal) if I specify that I will write one page a day for 30 days,
rather than including the possibility that I will write all 30 pages in last day of the 30-day
period.

Extending:

The goal should stretch the performer's capabilities. For example, I might be more
interested in writing a 30-page paper if the topic of the paper or the way that I write it
will extend my capabilities.

Rewarding:

I am more inclined to write the paper if the paper will contribute to an effort in such a
way that I might be rewarded for my effort.

Build in Accountability (Regularly Review Who is Doing What and By When?)

Plans should specify who is responsible for achieving each result, including goals and
objectives. Dates should be set for completion of each result, as well. Responsible parties
should regularly review status of the plan. Be sure to have someone of authority "sign
off" on the plan, including putting their signature on the plan to indicate they agree with
and support its contents. Include responsibilities in policies, procedures, job descriptions,
performance review processes, etc.

Note Deviations from the Plan and Replan Accordingly

It is OK to deviate from the plan. The plan is not a set of rules. It is an overall guideline.
As important as following the plan is noticing deviations and adjusting the plan
accordingly.

Evaluate Planning Process and the Plan

During the planning process, regularly collect feedback from participants. Do they agree
with the planning process? If not, what do not they like and how could it be done better?
In large, ongoing planning processes (such as strategic planning, business planning,
project planning, etc.), it is critical to collect this kind of feedback regularly.

During regular reviews of implementation of the plan, assess if goals are being achieved
or not. If not, were goals realistic? Do responsible parties have the resources necessary to
achieve the goals and objectives? Should goals be changed? Should more priority be
placed on achieving the goals? What needs to be done?
Finally, take 10 minutes to write down how the planning process could have been done
better. File it away and read it the next time you conduct the planning process.

Recurring Planning Process is at Least as Important as Plan Document

Far too often, primary emphasis is placed on the plan document. This is extremely
unfortunate because the real treasure of planning is the planning process itself. During
planning, planners learn a great deal from ongoing analysis, reflection, discussion,
debates and dialogue around issues and goals in the system. Perhaps there is no better
example of misplaced priorities in planning than in business ethics. Far too often, people
put emphasis on written codes of ethics and codes of conduct. While these documents
certainly are important, at least as important is conducting ongoing communications
around these documents. The ongoing communications are what sensitize people to
understanding and following the values and behaviors suggested in the codes.

Nature of the Process Should Be Compatible to Nature of Planners

A prominent example of this type of potential problem is when planners do not prefer the
"top down" or "bottom up", "linear" type of planning (for example, going from general to
specific along the process of an environmental scan, SWOT analysis,
mission/vision/values, issues and goals, strategies, objectives, timelines, etc.) There are
other ways to conduct planning. For an overview of various methods, see (in the
following, the models are applied to the strategic planning process, but generally are
eligible for use elsewhere).

Critical -- But Frequently Missing Step -- Acknowledgement and Celebration of Results

It's easy for planners to become tired and even cynical about the planning process. One of
the reasons for this problem is very likely that far too often, emphasis is placed on
achieving the results. Once the desired results are achieved, new ones are quickly
established. The process can seem like having to solve one problem after another, with no
real end in sight. Yet when one really thinks about it, it is a major accomplishment to
carefully analyze a situation, involve others in a plan to do something about it, work
together to carry out the plan and actually see some results.

Organizing.

Organizing can be viewed as the activities to collect and configure resources in order to
implement plans in a highly effective and efficient fashion. Organizing is a broad set of
activities, and often considered one of the major functions of management. Therefore,
there are a wide variety of topics in organizing. The following are some of the major
types of organizing required in a business organization.

A key issue in the design of organizations is the coordination of activities within the
organization.
 Coordination

Coordinating the activities of a wide range of people performing specialized jobs is

critical if we wish avoid mass confusion. Likewise, various departments as grouping of
specialized tasks must be coordinated. If the sales department sells on credit to anyone
who wished it, sales are likely to increase but bad-debt losses may also increase. If the
credit department approves sales only to customers with excellent credit records, sales
may be lower. Thus there is a need to link or coordinate the activities of both departments
(credits and sales) for the good of the total organization.

Coordination is the process of thinking several activities to achieve a functioning whole.

Leading

Leading is an activity that consists of influencing other people's behavior, individually

and as a group, toward the achievement of desired objectives. A number of factors affect
leadership. To provide a better understanding of the relationship of these factors to
leadership, a general model of leadership is presented.

The degree of leader's influence on individuals and group effectiveness is affected by

several energizing forces:

1. Individual factors.
2. Organizational factors.
3. The interaction (match or conflict) between individual and organizational factors.

A leader's influence over subordinates also affects and is affected by the effectiveness of
the group.

* Group effectiveness.

The purpose of leadership is to enhance the group's achievement. The energizing forces
may directly affect the group's effectiveness. The leader skills, the nature of the task, and
the skills of each employee are all direct inputs into group achievement. If, for example,
one member of the group is unskilled, the group will accomplish less. If the task is poorly
designed, the group will achieve less.

These forces are also combined and modified by leader's influence. The leader's influence
over subordinates acts as a catalyst to the task accomplishment by the group. And as the
group becomes more effective, the leader's influence over subordinates becomes greater.

There are times when the effectiveness of a group depends on the leader's ability to
exercise power over subordinates. A leader's behavior may be motivating because it
affects the way a subordinate views task goals and personal goals. The leader's behavior
also clarifies the paths by which the subordinate may reach those goals. Accordingly,
several managerial strategies may be used.
First, the leader may partially determine which rewards (pay, promotion, recognition) to
associate with a given task goal accomplishment. Then the leader uses the rewards that
have the highest value for the employee. Giving sales representatives bonuses and
commissions is an example of linking rewards to tasks. These bonuses and commissions
generally are related to sales goals.

Second, the leader's interaction with the subordinate can increase the subordinate's
expectations of receiving the rewards for achievement.

Third, by matching employee skills with task requirements and providing necessary
support, the leader can increase the employee's expectation that effort will lead to good
performance. The supervisor can either select qualified employees or provide training for
new employees. In some instances, providing other types of support, such as appropriate
tools, may increase the probability that employee effort leads to task goal
accomplishment.

Fourth, the leader may increase the subordinate's personal satisfaction associated with
doing a job and accomplishing job goals by

1. Assigning meaningful tasks;

2. Delegating additional authority;
3. Setting meaningful goals;
4. Allowing subordinates to help set goals;
5. Reducing frustrating barriers;
6. Being considerate of subordinates' need.

With a leader who can motivate subordinates, a group is more likely to achieve goals; and
therefore it is more likely to be affective.

Controlling.

Control, the last of four functions of management, includes establishing performance

standards which are of course based on the company's objectives. It also involves
evaluating and reporting of actual job performance. When these points are studied by the
management then it is necessary to compare both the things. This study on comparison of
both decides further corrective and preventive actions.

In an effort of solving performance problems, management should higher standards. They

should straightforwardly speak to the employee or department having problem. On the
contrary, if there are inadequate resources or disallow other external factors standards
from being attained, management had to lower their standards as per requirement. The
controlling processes as in comparison with other three, is unending process or say
continuous process. With this management can make out any probable problems. It helps
them in taking necessary preventive measures against the consequences. Management
can also recognize any further developing problems that need corrective actions.
Although the control process is an action oriented, some situations may require no
corrective action. When the performance standard is appropriate and actual performance
meets that standard, no changes are necessary. But when control actions are necessary,
they must be carefully formulated.

An effective control system is one that accomplishes the purposes for which it was
designed.

Controls are designed to affect individual actions in an organization. Therefore control

systems have implications for employee behavior. Managers must recognize several
behavioral implications and avoid behavior detrimental to the organization.

It is common for individuals to resist certain controls. Some controls are designed
to constrain and restrict certain types of behavior. For example, Dress codes often
evoke resistance.
Controls also carry certain status and power implications in organizations. Those
responsible for controls placed on important performance areas frequently have
more power to implement corrective actions.
Control actions may create intergroup or interpersonal conflict within
organizations. As stated earlier, coordination is required for effective controls. No
quantitative performance standards may be interpreted differently by individuals,
introducing the possibility of conflict.
An excessive number of controls may limit flexibility and creativity. The lack of
flexibility and creativity may lead to low levels of employee satisfaction and
personal development, thus impairing the organization's ability to adapt to a
changing environment.

Managers can overcome most of these consequences through communication and proper
implementation of control actions. All performance standards should be communicated
and understood.

Control systems must be implemented with concern for their effect on people's behavior
in order to be in accord with organizational objectives. The control process generally
focuses on increasing an organization's ability to achieve its objectives.

Effective and efficient management leads to success, the success where it attains the
objectives and goals of the organizations. Of course for achieving the ultimate goal and
aim management need to work creatively in problem solving in all the four functions.
Management not only has to see the needs of accomplishing the goals but also has to look
in to the process that their way is feasible for the company.

Article Source: http://EzineArticles.com/?expert=Ashani_Wijesinghe

5. How prophetic style of management can ensure better
result than that of conventional style of management in
any organization? Explain with Examples. April 2007
ISLAMIC MANAGEMENT AND BUSINESS ETHICS IN THE MEDITERRANEAN
by Thomas Giudicelli
Published in English, Studies,
on 12/04/2010
Country: Arab-Islamic World, Europe, Italy,
Tags: Development, Economics, Euro-Mediterranean Partnership, Islamic Finance,
Islamic Management, Mediterranean, Union for the Mediterranean
Stampa questo articolo

To more and more European companies, the Mediterranean area is seen becoming
attractive in terms of commercial outlets, cost-effectiveness and partnership
opportunities. This is one of the key outcomes of an A. T. Kearney research carried out in
May 2009 on geographical changes in delocalization, which stated that the difference
in workforce prices is now in favour of MED countries, as Eastern Europe gradually
becomes more expensive and less attractive.

Despite some cyclical difficulties, the UfM (Union for the Mediterranean) project,
launched in 2008 by President Sarkozy, is the most recent step of an economic
regionalization process taking place all over the world. This latest stage has been
characterized by the acknowledgment that large economic areas must integrate
developing countries in order to survive and be sufficiently competitive, or else they will
lack the assets they need to address the challenges of globalization.

As far as the emerging economies from the Southern shore are concerned, globalization
itself requires clinging to the EU rather than remaining isolated. For this reason,
regionalization is nothing but a networking process aimed at connecting national
economic systems to one another within a transnational framework, in order to open them
and to spur domestic economies through external factors (financing, know-how,
organization and management structure), thereby creating additional wealth.

In this context, teaching and research have logically been included among the UfM six
priority action plan. So far, however, other than the European Commissions funding of
the Euro-Mediterranean University of Protoroz in Slovenia, efforts in this direction have
been limited. As for the teaching of management, it has been left to private actors and no
plan has been foreseen to support a common approach.
It is more convenient therefore to look for a common basis in management practices that
could help to develop economic exchanges. From this point of view, it seems necessary to
take into account current trends in management practices around the Mediterranean, and
to foster a common managerial approach that could be called Euro-Mediterranean
management.

The emergence of Islamic management might be a good starting point for this, as the
values it conveys, inspired by ethics more than by religion, show what a scholar has
called Market Islam: a special access lane to globalization for the Muslim world.(I)
Examining Market Islam will help to better understand the need for shared business
ethics, which should raise awareness about the negative impact of some North European
companies practices, and which should on the contrary foster co-sustainable
development. (II).

1. 1. Taking into account the emergence of Islamic business

At the end of the 19th century, the psychological shock caused by colonialism, a symbol
of Western economic and technological leadership, led to greater awareness within the
Muslim world, which tried to discover its own access to modernity. The Manar (the
lighthouse) review, to which many Muslim reformist thinkers such as Muhammad Abdu
and Rachid Rida collaborated, intended to demonstrate that Islam contains all elements of
modernity.

This particular way of drawing lessons for renewal from a comparison with the West
seems to have repeated itself one century later, and not surprisingly, the Muslim
Brotherhood, which took over the review in 1935, are today indirect yet important actors
in transforming Islamism from politics to economics.

Over the last years, Islamic business has emerged, and its most important developments
may be observed in the field of finance and marketing.

11. New Muslim managers

The way all fields of management seem to have been influenced by values conveyed by
Islam has been perfectly described in the book Market Islam [1]. After a description of
the context how political Islam is gradually running out and Islamic activism has been
called into question due to the lack of flexibility and efficiency of its authoritarian and
pyramidal structures , the author explains how a new way of thinking has emerged under
the aegis of a new actor: the frustrated Islamist. Though remaining sincerely religious,
this actor has distanced himself from the political movements in which he was formerly
active, and has turned out to be a kind of cultural mediator, who no longer points at an
(Islamic) alternative, but rather at an Islamic redefinition of Western culture.

The interaction between politics and religion, which is a key element of political Islam, is
thus turning into a new interaction between religion and economics, which provides this
new Islam with supports and means to spread through the market. The objective is no
longer to convince people about what the supreme truth is, but to adapt a religious offer
to the new expectations real or supposed of target audiences.

This new religious manager wants to break with fatalism and localism, both often
associated with traditional Islam, and advocates a market-friendly, upper-class,
cosmopolitan and pro-active religion, which aims at fostering the Islamic capitalist spirit
in order to make them more competitive on a global scale.

Market Islam is thus located in a universe where cosmopolitism, piety and wealth,
through a prosperity theology free from inhibition as far as making money is
concerned, are now one step forward from traditional and political Islam ascetic
conceptions and ideals of social justice. However, we should not consider this movement
as the result of a self-interest and commercial strategy: beyond concerns about material
welfare, there is a collective symbolic challenge in building a new Muslim pride on an
individual scale, which has more to do with economic success than with politics.

1.1 Islamic business developments

The issue of the relationship between marketing and Islam has been dealt with in a
research paper [2], which showed the importance of Islamic values, as well as the role of
religious authorities in adapting and rethinking Islam in this context. The result is a large
variety of marketing patterns and consumer behaviours, as well as competitive strategies
to respond to this complex environment.

An example is given by an Islamic alternative to one of globalization leading products,

that is to say Coca Cola. In November 2002, Mecca Cola was created by a French-
Tunisian businessman, Tawfiq Mathlouti. In a contesting attitude, this French company
announced its intention to turn part of its profits to humanitarian associations, particularly
those working in the Palestinian Occupied Territories. The companys founder, inspired
by Zam Zam Cola, a similar Iranian product which had already taken over the market in
Saudi Arabia and Bahrein, decided to launch his own brand as he got no positive answer
from the Iranian company from which he had requested a distribution contract. Mecca
Cola, in turn, has inspired the creation of Qibla Cola in the UK, as well as Arab Cola and
Muslim Up in France. Mecca Cola is now distributed in 60 countries and its slogan is
displayed on its label Drink engaged! -, which is a perfect illustration of the products
spirit and objective.

Mecca Cola may be specific, because of its mixed character between market-oriented
ways of thinking and political ideology, but it should not be considered an isolated case,
since the European Muslim community itself has also to do with the wider phenomenon
of self-identity consumption patterns, or ethical business.

This phenomenon has mainly to do with the food industry, although the textile industry
seems to have equally high potential. It is also leading to changes as far as retailing
patterns are concerned, as these moved from traditional channels (groceries and hallal
butcheries) to mass-market retailing, sometimes watering down some of the products
Muslim peculiarity. The 17th of August 2009 a commercial was broadcast on TV that
showed for the first time a young couple of beurgeois (high income North African third
generation immigrants) advertising some ready meals produced by Zakia Hallal, a brand
designed for a Muslim public but sold in large retail stores: they were lasagnes and
hachis parmentier, two typical European meals, but cooked in a legal (hallal) way for
Muslims.

This trend shows how Islamic business, which had been on the fringes of global market,
is now gradually becoming integrated. Economic competition is indeed putting pressure
on large retail stores to take on a market which potentially represents many millions of
consumers, most of whom are already their customers. As for producers, they cannot stay
outside a retail network that reaches consumers who do not have enough time to dedicate
to traditional small shops, though they wish to remain faithful to their roots.

These new opportunities have fostered the emergence of specialized agencies such as
Islah Consulting in France or Etnocom, the first advertising agency in Italy specialized on
multiethnic and multicultural communication. There is no doubt that Islamic business is
expected to grow rapidly and deserves an in-depth analysis. An example is given by the
increasing success of Muslim community websites and forums (such as oumma.com),
which may be useful to influence consumer practices, and support advertising and survey
panels.

1.2 The development of Islamic finance

Islamic Finance, which is based on Muslim law, relies on two pilasters: the interdiction of
interest rates, and the concept of social responsibility. Financial return on investment is
linked with the results of the related project. Islam forbids civilian or commercial
transactions relying on interest (riba), speculation (gharar) or risk (massir).

The value of Islamic Finance in the world is estimated to amount from 600 and 800
billion USD in 2006 or 2007, and may rise up to 1000 billion in 2010, according to the
projections published in 2008 [3]. In Europe, France is currently trying to catch up with
the UK: the Strasbourg Management School was the first to devote a master program to
Islamic Finance, and has been recently followed by the University of Paris-Dauphine.

A study carried out on this subject [4] showed that, far from representing an handicap,
ethical and religious constraints imposed on Islamic banks have actually allowed them to
grow rapidly: the authors show how, in fact, competition and financial institutions foster
new strategies as well as product innovations which enable these banks to address the
challenge of global competition, while at the same time taking advantage of the
increasing willingness of the public to consume ethical products.

Generally speaking, growth dynamics make them focus less on the Islamic dimension, so
as to reach a new audience of non-Muslim consumers as well. As far as the producers are
concerned, the fact itself of targeting non-Muslim consumers advocates for a limitation of
the products Islamic visibility and a use of ethics as a more inclusive concept, speaking
of values (individual effort and meritocracy at the individual level, justice, equity and
solidarity at the collective level) instead of religious prescriptions.

In other words, we may consider that Islamic management has been able to transform
itself into a set of deontological and universal principles, in a similar way to that of North
Mediterranean companies increasingly interested in sustainable development and fair
trade.

To what extent does an increased awareness about ethics on both sides of the
Mediterranean mean fulfilling one of the basic conditions of sustainable co-development
in the area? At this stage, it is necessary to wonder about the difficulties that might hinder
or slow down the achievement of this particular objective.

1. 2. Promoting business ethics to support sustainable development in the

Mediterranean

Many difficulties actually hinder the spreading of ethical behaviours to support a

sustainable development of economic exchanges: deriving from the gap existing in social
and legal situations, they lead to a variety of negative effects that cannot be overcome,
except within the framework of an increased level of social responsibility from
companies.
2.1. Ethical and universal rules the Gresham law

In the context of North-South economic relationship, which are still deeply influenced by
the heritage of colonialism initiated in the XIX century, European companies could tend
to see themselves as being the messengers of universal business ethics, notwithstanding
these actually have Anglo-Saxon origins. By ethics we mean here a set of common
rules related to accounting and finance, intellectual property, law, etc., which sometimes
conflicts with other traditions and habits.

One of the issues to be addressed is whether a company should abide by the laws of its
country of origin or, on the contrary, should only refer to those of the country where its
business is located which are usually less restrictive. For instance, US law forbids
bribery both inside the US and abroad while, in other countries, bribery is considered a
common practice to make business. Similar difficulties may occur concerning labour
laws or children workforce, HSE, duration of working hours, wages, or discriminations.

In this respect, the implementation of the OECD anti-bribery convention helped to be

more aware of some pitfalls:

- on the one hand, some companies were trying to be seen as exemplary under such
a profile, but that was mainly for communication purposes, with the aim of discrediting
their competitors and accusing them of bad practices;

- on the other hand, the risk of losing a bid due to disrespect of local habits was
leading other companies to find out new ways to operate, by-passing the new regulations.

We may conclude that as far as ethics are concerned, Greshams law, which states that
bad practices drive out good ones under legal tender laws (bad money drives out good),
often applies: in a competitive environment, the companies that will survive are well
aware that they are mainly expected to maximize profits; they may thus get into a vicious
circle that eventually does not foster ethics.

Yet, non-respect of ethics is undoubtedly of more concern in the Arab-Islamic world, as it

has been going through political tensions and social violence for many decades.
2.2 Negative effects of Greshams Law

The attack that caused the death of several members of DCN (nota: a French Defence
industrial company) staff in Pakistan illustrated how dramatic security issues could be for
western companies operating in the Muslim world, although we still do not know what
the conclusions of the inquiry will be (and could either confirm the hypothesis of a
retaliation act due to non-respect of a secret bribery agreement, or bring some evidence
about the involvement of an extremist Islamic group not directly linked with the context
of DCN activities in the country).

Terrorist attacks and political or criminal kidnappings are now one of the threats
multinational companies are faced with, and this has led consulting firms to offer both
risk assessment services and operational solutions aimed at making their clients
international development safer protecting their staff and physical infrastructures.

On the other hand, a number of small and medium enterprises, which do not have enough
resources to face this kind of risks, are sometimes obliged to give up the idea of investing
in a given country, due to unstable business environment: beyond the terrorist threat that
we previously referred to, they also consider that the importance of the underground
economy in South Mediterranean countries makes it difficult for them to open local
branches.

We do not aim here to launch a debate about the reason for such an unstable political and
economic environment; yet, we may point out the fact that the same consulting firms
have perfectly understood the link between criminal risk management and sustainable
development, and now include this dimension in their services. It is obvious that cynical
investors, who prefer to rely on corrupted local ruling elites, are in part responsible for
the reactions of Islamic opposition groups, which are all the more prone to violence as
they have no other opportunity to give their views and make their voices heard. Whether
involved or not in condemnable practices, multinational companies have unfortunately
become the target of regular attacks, as they are seen to convey behaviours opposed to
ethics and Muslim dignity.

We may express the same idea under the form of a paradox: non-respect of ethics from
multinational companies systematically legitimizes radical Islamist groups, while these
are gradually running out and giving way to a new phenomenon- the emergence of
Islamic management- from which multinational companies should profit.

2.3 Ethics and cross-cultural management to support sustainable development

As managing risk through promoting sustainable development consists mainly of raising
awareness about ethics, it may be translated into concrete actions:

- A commitment to safeguard the environment in operation areas (see some oil industry
companies called into question by NGO for their polluting practices) ;

- Implementation of humanitarian policies for the benefit of local people;

- Elaboration of anti-corruption codes;

- etc.

Obviously, using codes of ethics for marketing and communication purposes only would
be a mistake which could have serious and negative impact. The principle of
responsibility should consequently prevail, so that Greshams Law does not apply to
Euro-Mediterranean relationships.

The objective of a better acknowledgement of ethics will also be achieved through

enhanced cross-cultural management, which could help to fight all kinds of
misunderstandings and prejudices that hinder trade development.

From this point of view, Southern entrepreneurs undoubtedly have a better understanding
of Northern societies than the other way round, and European schools and universities
should make an effort to learn managers how to operate within the Euro-Mediterranean
framework.

It does not seem excessive to state that to many Europeans no other area inspires more
negative clichs and negative images than does the Southern Mediterranean. In one of his
books about Islamism [5], political scientist Franois Burgat provided a rigorous criticism
of mass media responsibilities in lumping together Muslims, Islamists and terrorists.

In comparison, we can state that people perceive Asia in a far more positive way: China
and Japan are seen as exotic countries and therefore raise curiosity. As far as the Muslim
world is concerned, on the contrary, the images that mainly come to mind have negative
connotations; we may quote three of them, which come up quite frequently: religious
fanatism; the status of women; supposed inclination to corruption (c.f. the most used
word bakchich, which derives from Persian and Arabic) and to cheat and deceive,
associated with a supposed Oriental psychology.

As Edward Said noted in his famous book on Orientalism [6], these images were built
over centuries and are therefore difficult to eradicate. In this context, we should rather
encourage education to address the Muslim world without prejudices and to show that its
values are fully coherent with European managers.

Final remarks and proposals

Networks such as UNIMED and the Rseau Mditerranen des Ecoles de Management
(Mediterranean Schools of Management Network RMEM) are expected to convey such
business ethics in the Mediterranean area, as a fundamental condition for sustainable
development in the region. In this regard, many ways may be envisaged, which have to
do with research and education.

Enhancing research on Islam and corporate management

Up to now, most of the research conducted on Islam has rarely addressed the issue of
corporate management, except for aspects mentioned in the first part of this article. It
mainly comes from experts specialized in political and social issues, having little
interaction with business schools. However, this is an interesting and strategic issue, and
many aspects are still to explore, both theoretically and empirically, as far as traditional
management is concerne.

On the theoretical level, a new reading of Quran, of sunna (the tradition, i.e the sayings
and living habits of Prophet Muhammad) and sra (biography) of the Prophet with a
corporate perspective will first allow us to highlight the reference embodied by
Muhammad himself for the new Muslim managers, who focus on the fact that he was a
successful entrepreneur operating with his wife Khadija, as well as a very good manager,
both in conducting war and organizing the Islamic state.

Theoretical aspects will also include:

- the decision-making process and dispute resolution in Islam, where shra

(conciliation) is part of the summons made by Allah to Muhammad [7] and thereby of
Muslim law;

- trade ethics, widely dealt with in fiqh, which establishes the prohibition of selling
goods without owning them, speculating on the market without purchase intentions,
selling fruits still hanging on the tree, and so on;
- the importance of membership feeling belonging to the Muslim community
(umma) -, which marketing and Islamic finance try to capitalize on;

- female managers (cf. Khadija, already quoted above);

- the re-discovery of Sufism in a way that is similar to the European interest in

different personal development techniques.

From an empirical point of view, we need to elaborate case-studies that help to address
some specific issues, as has been done to relate the successful implementation of a total
quality management plan in a Moroccan branch of a multinational company [8].

On this issue, it could be useful to study success stories of Muslim businessmen, to

analyse their links with Islam as a religion and the way they claim it played a positive
role in their carrier as businessmen. There are many examples, but some of them may be
quoted, such as Saudi prince al-Walid bin Talal bin Abdulaziz al-Saoud, a well-known
top-ranking businessman whose success has more to do with his talent than with his
initial heritage, and who is presented as a devout person willing to act for the sake of his
community.

An appropriate educational framework to meet contradictory requirements

The Islamic banks referred to in the Part 1 were the first to advocate setting up of an
Islamic MBA, since they were having difficulties selecting professionals that would be
trained both in general management and sharia: most often, the second category would
prevail. The demand for a specific course of study seems thus to be extremely high from
banks, insurance companies and hedge funds.

The question is to understand if such a programme might prove successful in North

Africa and in the Middle East, while best students generally choose to study in the US or
in Europe; yet, the low development of Islamic finance in these countries may hinder
their capacity to take full advantage of their training. On the other hand, European
students who are likely to deal with Islamic finance at a certain stage of their carrier,
seem reluctant to study in Saudi Arabia or in any other Gulf state, but European Schools
of Management offer them very few opportunities in this particular demain.

The first attempt to respond the challenge of a multicultural teaching that could be
adapted to audiences coming from both sides of the Mediterranean was given by the
Euro-Arab School of Management (EAMS), established in 1994 in Granada within a
joint initiative of the European Commission, the Arab League and the Spanish
government, but it closed in 2006. Let me quote the comments posted by Professor
Walter Baets on the Euromed blog on the 26th of September 2007 [9]:
It proved extremely difficult to create an MBA that would at the same time address a
large community (hence being mainly virtual) and being culturally relevant for Europe
and the Arab world. The school was mentioned in the Barcelona declaration as an
example of Euro-Arab cooperation. In the meantime, it was closed last year. Not since
there would not be any interest, but most probably since we are not yet able to define an
MBA that is culturally relevant for non mainstream thinkers..

Another priority is to carry out an in-depth analysis of the reasons for EAMS failure,
beyond some anecdotic factors which might have played a role [10]. What was the
percentage of students by geographical origin? What were their expectations? Was their
satisfaction rate tested? What kind of openings were given after this course, etc. These
are some of the questions, both quantitative and qualitative, to which a research work
should try to give answers.

In any case, while it seems that the main difficulty consists of bringing people from
different cultural origins to work together even in a virtual place, as was the case of
EAMS- the solution might consist of new agreements between schools and universities,
allowing them to deliver courses on demand, without the limitation of insufficient
internal resources and keeping in mind the objective of solving the problem of
geographic selection (Europe-US vs. Universities of the Southern shore). From this point
of view, a networking strategy can be the only basis on which to build a kind of
Mediterranean course (with a degree as a potential recognition), which would allow to
share the investment needed to achieve such a goal.

6. Is Management science or an art? Explain. November-

2007, October-2010
One of the enduring questions in the field of management is whether it is an art or
a science. Webster's College Dictionary defines an art as "skill in conducting any
human activity" and science as "any skill or technique that reflects a precise
application of facts or a principle." Reflected in the differences in these definitions
is the use of precision in science, in that there is a particular, prescribed way in
which a manager should act. Thus, management as a science would indicate that in
practice, managers use a specific body of information and facts to guide their
behaviors, but that management as an art requires no specific body of knowledge,
only skill. Conversely, those who believe management is an art are likely to believe
that there is no specific way to teach or understand management, and that it is a
skill borne of personality and ability. Those who believe in management as an art are
likely to believe that certain people are more predisposed to be effective managers
than are others, and that some people cannot be taught to be effective managers.
That is, even with an understanding of management research and an education in
management, some people will not be capable of being effective practicing
managers.

FOUNDATIONS OF THE MANAGEMENT AS A SCIENCE PERSPECTIVE

Practicing managers who believe in management as a science are likely to believe

that there are ideal managerial practices for certain situations. That is, when faced
with a managerial dilemma, the manager who believes in the scientific foundation of
his or her craft will expect that there is a rational and objective way to determine
the correct course of action. This manager is likely to follow general principles and
theories and also by creating and testing hypotheses. For instance, if a manager has
a problem with an employee's poor work performance, the manager will look to
specific means of performance improvement, expecting that certain principles will
work in most situations. He or she may rely on concepts learned in business school
or through a company training program when determining a course of action,
perhaps paying less attention to political and social factors involved in the situation.

Many early management researchers subscribed to the vision of managers as

scientists. The scientific management movement was the primary driver of this
perspective. Scientific management, pioneered by Frederick W. Taylor, Frank and
Lillian Gilbreth, and others, attempted to discover "the one best way" to perform
jobs. They used scientific processes to evaluate and organize work so that it
became more efficient and effective. Scientific management's emphasis on both
reducing inefficiencies and on understanding the psychology of workers changed
manager and employee attitudes towards the practice of management. See Exhibit 1
for a summary of the principles of scientific management.

FOUNDATIONS OF THE MANAGEMENT AS AN ART PERSPECTIVE

Practicing managers who believe in management as an art are unlikely to believe

that scientific principles and theories will be able to implemented in actual
managerial situations. Instead, these managers are likely to rely on the social and
political environment surrounding the managerial issue, using their own knowledge of
a situation, rather than generic rules, to determine a course of action. For example,
as a contrast to the example given previously, a manager who has a problem with an
employee's poor work performance is likely to rely on his or her own experiences
and judgment when addressing this issue. Rather than having a standard response
to such a problem, this manager is likely to consider a broad range of social and
political factors, and is likely to take different actions depending on the context of
the problem.

Henry Mintzberg is probably the most well-known and prominent advocate of the
school of thought that management is an art. Mintzberg is an academic researcher
whose work capturing the actual daily tasks of real managers was ground breaking
research for its time. Mintzberg, through his observation of actual managers in
their daily work, determined that managers did not sit at their desks, thinking,
evaluating, and deciding all day long, working for long, uninterrupted time periods.
Rather, Mintzberg determined that mangers engaged in very fragmented work, with
constant interruptions and rare opportunities to quietly consider managerial issues.
Thus, Mintzberg revolutionized thinking about managers at the time that his work
was published, challenging the prior notion that managers behaved rationally and
methodically. This was in line with the perspective of management as an art,
because it indicated that managers did not necessarily have routine behaviors
throughout their days, but instead used their own social and political skills to solve
problems that arose throughout the course of work.

Another scholar that promoted the notion of management as an art was David E.
Lilienthal, who in 1967 had his series of lectures titled Management: A Humanist
Art published. In this set of published lectures, Lilienthal argues that management
requires more than a mastery of techniques and skills; instead, it also requires that
managers understand individuals and their motivations and help them achieve their
goals. Lilienthal believed that combining management and leadership into practice,
by not only getting work done but understanding the meaning behind the work, as
effective managerial behavior. Thus, he promoted the idea of the manager as a
motivator and facilitator of others. This manager as an artist was likely to respond
differently to each employee and situation, rather than use a prescribed set of
responses dictated by set of known guidelines.

Another proponent of the management as art school of thought is Peter Drucker,

famed management scholar who is best known for developing ideas related to total
quality management. Drucker terms management "a liberal art," claiming that it is
such because it deals with the fundamentals of knowledge, wisdom, and leadership,
but because it is also concerned with practice and application. Drucker argues that
the discipline (i.e., the science) of management attempts to create a paradigm for
managers, in which facts are established, and exceptions to these facts are ignored
as anomalies. He is critical of the assumptions that make up the management
paradigm, because these assumptions change over time as society and the business
environment change. Thus, management is more of an art, because scientific "facts"
do not remain stable over time.
Exhibit 1 Frederick W. Taylor's Principles of Scientific
Management
1. Managers must study the way that workers perform their tasks and
understand the job knowledge (formal and informal) that workers have, then
find ways to improve how tasks are performed.
2. Managers must codify new methods of performing tasks into written work
rules and standard operating procedures.
3. Managers should hire workers who have skills and abilities needed for the
tasks to be completed, and should train them to perform the tasks according
to the established procedures.
4. Managers must establish a level of performance for the task that is
acceptable and fair and should link tit to a pay system that reward workers
who perform above the acceptable level.

ART AND SCIENCE IN MANAGEMENT RESEARCH

Noted researcher Thomas Kuhn, in his book The Structure of Scientific

Revolutions, addresses issues associated with the state of current scientific
research and the opportunities for scientific discovery. Kuhn, in his previous
editions of this text, drew distinctions between mature and immature fields of
study. In mature fields of study, many of the central questions of that field have
been answered, and strong consensus exists among researchers regarding the
fundamental assumptions of that field. Conversely, in immature fields of study,
there is still a great deal of debate on major questions in the field, and gains in
knowledge come sporadically. In many ways, management is an immature science.
While its foundations in psychology, sociology, and other related areas give it a long
and rich history, the nature of the areas of study renders it immature. That is, due
to the difficulties of studying human behavior in a number of disparate settings,
the study of management is still very young when compared to other fields of
research (e.g., in the physical sciences). In fact, many scholars have argued that
the social sciences (e.g., management research) suffer from envy of the physical
sciences, in which "truths" are able to be determined through research. As such,
social sciences researchers may strive to create a more "scientific" approach to
their fields in order to grant them more legitimacy.

Despite its relative immaturity, some consistent answers have been developed in
the field of management. In many ways this is due to the increased sophistication
of management research. However, there are still a number of research gaps in
management; despite our increased knowledge in some areas, there is still a great
deal of disagreement and confusion in other areas. In these circumstances, the
practice of management is likely to be dictated by the perspective of management
as an art. Because there are no hard and fast rules in certain circumstances,
individual managers' experiences and skills must guide them.

Today, much of the management research conducted in academic institutions blends

the notion of management as an art and as a science. Some of these trends in
management research that have pushed the field in either directionnamely
increased statistical sophistication and the emphasis on contextual influencesare
described below.

INCREASED STATISTICAL SOPHISTICATION.

As computer technology continues to improve, the ability of management

researchers to conduct sophisticated statistical analyses has also been enhanced.
Powerful statistical computing packages are now readily available for desktop
computers, allowing for high-speed analysis of complex statistical models.
Additionally, new statistical modeling techniques, such as structural equations
modeling, have gained footing in management research. Thus, management
researchers are now better able to empirically test more complex research
hypotheses, and management as a science is perpetuated.

The improvement in researchers' ability to analyze statistics more quickly has

resulted in an increase in information about theories of management. Practicing
managers may now know of certain relationships that have received strong support
through decades of empirical research. Such "truths" may become guiding principles
that practicing managers see as ideal solutions to a variety of situations. For
instance, numerous empirical studies over several recent decades have supported
the relationship between appropriate goal setting and higher work performance.
This relationship has been tested in a variety of situations, with a number of
contextual influences present, yet the statistical relationship holds in nearly all of
them. Thus, a practicing manager may see this body of empirical research and, in a
work situation, see the benefits of goal setting on performance as a scientific ideal.
He or she may then implement goal setting in a number of practical situations,
bolstered by the confidence afforded by decades of research supporting such
actions.

Meta-analysis, in particular, is a methodological procedure that has contributed

significantly to the study of management. Meta-analysis is a statistical technique
that allows a researcher to combine findings from multiple studies, correct for
errors in study design, and determine an "average" statistical relationship among
variables. Meta-analysis first gained a foothold in management research in studies
of the validity of selection techniques for different jobs in different organizations.
Before the application of meta-analysis to research on the validity of different
selection techniques, there was a belief in the situational specificity of these
selection methods. That is, studies of the accuracy of selection techniques in
predicting subsequent job performance had such disparate results that academics
concluded that validity of a standardized test, for example, would differ
dramatically in each selection situation (e.g., with different job applicants, in
different organizations, in different geographic regions). This myth was dispelled,
however, with the application of meta-analysis to the results of the collected body
of research on the validity of selection methods. The use of meta-analysis
established that the differences in findings were due primarily to limitations of
research design, such as small sample size, unreliability of measures, and other
correctable problems. When meta-analysis was applied to this group of studies,
they were combined to determine that validates of selection techniques were
general across jobs and organizations. Thus, the use of meta-analysis helped to
establish that cognitive ability tests and structured interviews were highly valid
selection methods in nearly every job.

Meta-analysis has now been applied to many different areas of management

research, including training, recruitment, fairness, and many other topics.
Additionally, there have been a number of refinements to the statistical
corrections used in meta-analysis. This increased acceptance of and use of meta-
analysis in management research supports the notion of management as a science.
Meta-analysis provides for "truths" in managementrelationships between
variables that hold strong regardless of the people or situation involved. For
instance, one consistent finding is that structured selection interviews, ones in
which applicants are asked the same set of predetermined questions, and in which
responses are evaluated using the same criteria, are a more valid predictor of
future job performance than are unstructured interviews, in which applicants are
asked different questions and responses are evaluated using different criteria.
Meta-analysis has been used to establish this finding, and thus a practicing manager
may use this information as a scientific "fact" when conducting selection interviews.

CONTEXTUAL INFLUENCES.

While improvements in management researchers' ability to conduct statistical

analysis in their studies has promoted the notion of management as a science, in
some ways it has also promoted management as an art. Because of the capability to
statistically analyze and interpret larger, more complex models of behavior,
researchers are now testing models with this increased complexity. In particular,
there is an increased emphasis on contextual influences. That is, rather than
focusing solely on how behaviors are linked to outcomes, many researchers now
include individual, social, and political variables in research models to have a richer
understanding of behavior. Thus, there are more complex recommendations that
can be made from recent research, rather than basic "truths."

For example, one of the most prominent areas of contextual research in recent
years is in person-organization fit. Person-organization fit is a part of the
attraction-selection-attrition model that suggests that certain types of individuals
are attracted to particular organizations, selected by those organizations, and
either adapt to become an effective part of the organization, or leave if they do
not fit with the organization. Person-organization fit (p-o fit) is the notion that the
particular skills, attitudes, values, and preferences of an individual employee should
fit with those of the organization in order for that employee to have high job
satisfaction and performance. The p-o fit model indicates that this fit is likely to
be as important as an assessment of applicants' abilities when hiring. Previous
models of selection emphasized a strict interpretation of applicant skills, with the
use of valid selection tests as most important. However, the p-o fit model indicates
that, even if skills and abilities have been appropriately measured, that hiring the
applicant with the best skills is not always the best course of action, but that hiring
an individual who fits into the culture of the organization could be more
advantageous.

This move towards including contextual influences in management research models

promotes the notion of management as an art. Rather than indicating that there are
specific principles and guidelines that can guide management practice, it suggests
that managerial behavior should change based on the social and political context of
the situation.

ART AND SCIENCE IN MANAGEMENT EDUCATION AND DEVELOPMENT

Management education and development, which attempt to prepare today's

managers for organizational challenges, are guided by both the notion of
management as an art and as a science. The approach to management education and
development is likely to differ dramatically depending on the belief one has as to
the nature of the practice of management. The perspective of management as an
art assumes to some extent that a manager has a disposition or experiences that
guide him or her in managerial decisions and activities. Thus, with this perspective,
many managers may be successful without any formal education or training in
management. The perspective of management as a science, however, would indicate
that management skills can be taught through an understanding of theory and
principles of management. Many of today's educational institutions and workplaces
blend the notion of management as a science and an art in their approach to
preparing employees for management.
Primarily, formal management education for practicing managers, such as with
bachelors and masters degrees, emphasizes the science of management.
Management education in today's universities primarily emphasizes management as
a science. Textbooks are used in management courses for bachelors' degrees, and
these texts emphasize many of the consistent findings of many decades of
management research. And, as these degrees increase in popularity, it is likely that
more practicing managers will have a set of established management ideals with
which they operate.

While formal management education may promote management as a science, many

development efforts support the notion of management as an art. To cultivate
management talent, organizations offer mentoring, overseas experiences, and job
rotation. These activities allow managers to gain greater social and political insight
and thus rely on their own judgment and abilities to improve their management
style. Much of mentoring involves behavior modeling, in which a protg may learn
nuances of managerial behavior rather than a set of specific guidelines for
managing. Overseas experiences are likely to involve a great deal of manager
adaptation, and the general rules by which a manager might operate in one culture
are likely to change when managing workers in other countries. Finally, job rotation
is a technique that requires a manager to work in a variety of settings. Again, this
encourages a manager to be flexible and adaptive, and likely rely more on his or her
personal skill in managing.

The foundations of management as an art and management as a science are evident

in today's educational institutions and work organizations. Management as a science
was primarily influenced by researchers in the area of scientific management, such
as Frederick Taylor, and continues today in much of the empirical research on
management issues. Management as an art has been influenced by scholars such as
Henry Mintzberg and Peter Drucker, and is often evident in complex theories of
management. Many scholars and practitioners blend art and science to more
effectively cultivate managerial talent. This is evident in recent theories of
management, research in workplaces, and education and development of managers.

Art and Science

Management is both art and science. It is the art of making people more effective
than they would have been without you. The science is in how you do that. There are
four basic pillars: plan, organize, direct, and monitor.

Make Them More Effective

Four workers can make 6 units in an eight-hour shift without a manager. If I hire
you to manage them and they still make 6 units a day, what is the benefit to my
business of having hired you? On the other hand, if they now make 8 units per day,
you, the manager, have value.

The same analogy applies to service, or retail, or teaching, or any other kind of
work. Can your group handle more customer calls with you than without? Sell higher
value merchandise? Impart knowledge more effectively? etc. That is the value of
management - making a group of individual more effective.

Basic Management Skill #1: Plan

Management starts with planning. Good management starts with good planning. And
proper prior planning prevents well, you know the rest of that one.

Without a plan you will never succeed. If you happen to make it to the goal, it will
have been by luck or chance and is not repeatable. You may make it as a flash-in-
the-pan, an overnight sensation, but you will never have the track record of
accomplishments of which success is made.

Figure out what your goal is (or listen when your boss tells you). Then figure out the
best way to get there. What resources do you have? What can you get? Compare
strengths and weaknesses of individuals and other resources. Will putting four
workers on a task that takes 14 hours cost less than renting a machine that can do
the same task with one worker in 6 hours? If you change the first shift from an 8
AM start to a 10 AM start, can they handle the early evening rush so you don't
have to hire an extra person for the second shift?

Look at all the probable scenarios. Plan for them. Figure out the worst possible
scenario and plan for that too. Evaluate your different plans and develop what, in
your best judgement, will work the best and what you will do if it doesn't.

TIP: One of the most often overlooked management planning tools is the most
effective. Ask the people doing the work for their input.

Basic Management Skill #2: Organize

Now that you have a plan, you have to make it happen. Is everything ready ahead of
your group so the right stuff will get to your group at the right time? Is your group
prepared to do its part of the plan? Is the downstream organization ready for what
your group will deliver and when it will arrive?

Are the workers trained? Are they motivated? Do they have the equipment they
need? Are there spare parts available for the equipment? Has purchasing ordered
the material? Is it the right stuff? Will it get here on the appropriate schedule?

Do the legwork to make sure everything needed to execute the plan is ready to go,
or will be when it is needed. Check back to make sure that everyone understands
their role and the importance of their role to the overall success.

Basic Management Skill #3: Direct

Now flip the "ON" switch. Tell people what they need to do. I like to think of this
part like conducting an orchestra. Everyone in the orchestra has the music in front
of them. They know which section is playing which piece and when. They know when
to come in, what to play, and when to stop again. The conductor cues each section to
make the music happen. That's your job here. You've given all your musicians
(workers) the sheet music (the plan). You have the right number of musicians
(workers) in each section (department), and you've arranged the sections on stage
so the music will sound best (you have organized the work). Now you need only to
tap the podium lightly with your baton to get their attention and give the downbeat.

Basic Management Skill #4: Monitor

Now that you have everything moving, you have to keep an eye on things. Make sure
everything is going according to the plan. When it isn't going according to plan, you
need to step in and adjust the plan, just as the orchestra conductor will adjust the
tempo.

Problems will come up. Someone will get sick. A part won't be delivered on time. A
key customer will go bankrupt. That is why you developed a contingency plan in the
first place. You, as the manager, have to be always aware of what's going on so you
can make the adjustments required.

This is an iterative process. When something is out of sync, you need to Plan a fix,
Organize the resources to make it work, Direct the people who will make it happen,
and continue to Monitor the effect of the change.
Is It Worth It

Managing people is not easy. However, it can be done successfully. And it can be a
very rewarding experience. Remember that management, like any other skill, is
something that you can improve at with study and practice.

7. How Prophetic Style of Management can ensure better

result than that of conventional style of management in
any organization? Explain with examples. November-2007

8. How is Islamic Management different from Conventional

Management? August-2008, October-2010

9. What management skills does a manager need? Explain

how the importance of these skills changes depending on
management level. August-2008

10. Is there any best style of management? Why or why

not? August-2008

11. Define Islamic Management and discuss its importance.

February-2009

Islamic management may be defined as achieving the halal objectives of an

organization through group efforts following the Islamic principle of mutual
consultation(Shura) and regulations( Shariah) with a view to having the blessings
and satisfaction of Allah(STA).

What Is Management By Islam?

Management by Islam (MBI) is an Islam-centric management approach for God-conscious

professionals. MBI offers a balanced approach in implementing, managing and sustaining
personal and organizational roles and responsibilities. It is a governance model that provides
a positive spiritual dimension to existing management principles for restoring the balance in
everyday management decision making processes; enjoining that which is good and
forbidding that which is wrong.

In today's business world there is an increasing emphasis towards return on capital (ROC).
Financial profitability and risks associated with material wellbeing has taken on a central
role in our business decision making processes. Social justice, public trust and civic
responsibilities are frequently traded for economic gains. Corporate scorecards are
myopically evaluated by stakeholders, only to focus in on year end profits. Performance,
quality and customer satisfaction are viewed only in terms of their impact to financial
bottom lines. Year end profit and loss (P&L) statements have become the only guiding tool
for economic health and performance measures. Transparency and accountability although is
offered by myriad operational frameworks and management philosophies, yet the focus
tends to always be the promise of a greater return on investment (ROI).

For a God-conscious individual, what greater ROI can there be than conducting righteous
deeds and forbidding the wrong. As evident by a saying of Prophet Muhammed, "The
essence of the Religion of Islam is giving good counsel". Counseling in this context, relates
to us being good role models for others to follow. Role modeling is not just verbal lip
service; it is synchronizing our intensions with our actions. Whether it's an organization or
an individual, when it comes to governance and management of affairs, how can faith-
conscious professionals be the right role models for other's to emulate?

I would like to define Islamic Management as follows:

" Integrated activities of thinking, planning, organizing, leading and controlling,

interconnected with decisions, involving the use of resources - human, financial,
time, information, and physical, with the objectives of attaining the goals of
Maqasid al-Shariah, by means of effective and efficient methods"

12. State the salient features of Islamic Management.

February-2009
Islamic management may be defined as achieving the halal objectives of an
organization through group efforts following the Islamic principle of mutual
consultation(Shura) and regulations( Shariah) with a view to having the blessings
and satisfaction of Allah(STA).
Salient Features of Islamic Management:
The above definition of Islamic management articulates the following salient
features:
1. Islamic management always aims at achieving halal objectives.
2. Islamic management always adopts halal procedures, methods, tools and
techniques.
3. Islamic management always follow the rules and regulations of Islam.
4. Islamic management emphasizes group efforts and group co-operation.
 5. Islamic management recognizes human as the most important and valuable
resource.
6. Islamic management put emphasis on mutual consultation amongst
stakeholders.
7. Ultimate aim and objective of Islamic management, is to have the blessings
and satisfaction of Allah, the Almighty and most Merciful.

13. How does Islamic Management help rendering

Haqqullqh and Haqqul Ibad? February-2009

Huqqu'llh (Arabic: , "Right of God"), sometimes called the Law of Huqq is

a socio-economic and spiritual law of the Kitb-i-Aqdas, a charter document of the Bah'
Faith, written by Bah'u'llh. In its most basic form, it states that Bah's should make a
19% voluntary payment on any wealth in excess of what is necessary to live comfortably,
after the remittance of any outstanding debt, to the head of the Bah' Faith. The money is
then disbursed to social and economic development projects, or similar philanthropic
purposes.

History

[edit] Gradual implementation

See also: Gradualism in Bah'_laws and Timeline of the institution of
Huqqu'llh

Bah'u'llh wrote down the law of Huqqu'llh in the Kitb-i-Aqdas in 1873, but he
did not accept any payments initially. In 1878 he appointed the first trustee of the
Huqqu'llh, who had the responsibility of receiving the Huqq from the Bah's in
Iran. Later this was expanded to the Bah's the Middle East. In 1985 information
about the Huqq was distributed worldwide and in 1992 the law was made
universally applicable. As the number of payments increased, deputies and
representatives to receive the payments have been appointed. In 1991 the central
office of Huqqu'llh was established at the Bah' World Centre in Haifa, Israel.[1] In
2005 the International Board of Trustees of uqqullh was formed "to guide and
supervise the work of Regional and National Boards of Trustees of uqqullh
throughout the world." [2]
[edit] Recipients

During the lifetime of Bahullh, the offerings were made directly to him, and
following his death, to `Abdu'l-Bah. In his Will and Testament, `Abdu'l-Bah
provided that Huqqu'llh be offered after him through the Guardian of the Cause of
God. Though now without a Guardian, it is offered through the Universal House of
Justice as the Head of the Faith.[3]

[edit] Trustees

Hj Shh-Muhammad Manshdi, Amnul-Bayn (trustee of the Bayn; d.

1881)

Hj Amn (Abdul-Hasan Ardikn), Amn-i-Ilhi (trustee of God; 1881-1928)

Hj Ghulm-Rid, Amn-i-Amn (trustee of the trustee; 1928-38)

Valyu'llh Varq (1938-55)

`Al-Muhammad Varq (1955-2007)[1]

[edit] Purpose

Huqqu'llh is said to enable the individual to purify ones riches and earthly
possessions, insuring the collection of sufficient funds that the general Treasury is
strengthened, which makes it possible to promote the interests of the Cause
throughout the Bah world, and eventually provide for the relief of the poor, the
disabled, the needy, and the orphans, and other philanthropical purposes.[1]

The offering of Huqqu'llh is a spiritual obligation, the fulfillment of which has

been left to the conscience of each Bah. Moreover, Huqqu'llh is only to be
accepted if it is given with "utmost joy, radiance and good pleasure". While the
community may be reminded of the requirements of the law of Huqqu'llh, it is a
principle that no Bah may be appealed to nor solicited to pay it. This offering is to
be considered separate from giving to the various Bah funds and takes precedence
over them.[1]

[edit] Calculation

The payment of Huqqu'llh is based on the calculation of the value of the

individuals possessions, which includes ones merchandise, property and income,
after all necessary expenses have been paid. If a person has possessions or wealth in
 excess of what is necessary, equal in value to at least nineteen mithqls of gold (19
mithqls equal to 2.2246 ounces, currently roughly US$3,000), it is a spiritual
obligation to pay nineteen percent of the total amount, once only, as Huqqu'llh.
Thereafter, whenever an individual acquires more possessions or wealth from income
by the amount of at least nineteen mithqls of gold, one is to pay nineteen percent of
this increase, and so on for each further increase.[1]

[edit] Exemptions

Certain categories of possessions are exempt from the payment of the Huqqu'llh,
such as ones residence, necessary household furnishings, business or professional
equipment and furnishings, and others.[1] Bah'u'llh has left it to the individual to
decide which items are considered necessary and which are not. Specific provisions
are outlined to cover cases of financial loss, the failure of investments to yield a profit
and for the payment of the Huqqu'llh in the event of the persons death.

14. How is Islamic concept of Management superior to

Conventional Management? February-2009

15. Management is nothing but the art of getting things

done through people- Explain. March-2010

16. What are the basic functions of management? March-

2010
MANAGEMENT FUNCTIONS:

The 4 basic management functions that make up the management process are
described in the following sections:

1. PLANNING
2. ORGANIZING
3. INFLUENCING
4. CONTROLLING.
PLANNING: Planning involves choosing tasks that must be performed to attain
organizational goals, outlining how the tasks must be performed, and indicating
when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what

organizations should do to be successful. Planning is concerned with the success of
the organization in the short term as well as in the long term.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning

stages, to various individuals or groups within the organization. Organizing is to
create a mechanism to put plans into action.

People within the organization are given work assignments that contribute to the
companys goals. Tasks are organized so that the output of each individual
contributes to the success of departments, which, in turn, contributes to the
success of divisions, which ultimately contributes to the success of the
organization.

INFLUENCING:

Influencing is also referred to as motivating,leading or directing.Influencing can be

defined as guiding the activities of organization members in he direction that helps
the organization move towards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work

situations usually generate higher levels of production over the long term than do
task oriented work situations because people find the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

1. Gather information that measures performance

2. Compare present performance to pre established performance norms.
3. Determine the next action plan and modifications for meeting the desired
performance parameters.

Controlling is an ongoing process.

Basic functions

Management operates through various functions, often classified as planning,

organizing, staffing, leading/directing, controlling/monitoring and motivation.

Planning: Deciding what needs to happen in the future (today, next week,
next month, next year, over the next five years, etc.) and generating plans for
action.
Organizing: (Implementation) making optimum use of the resources required
to enable the successful carrying out of plans.
Staffing: Job analysis, recruitment, and hiring for appropriate jobs.
Leading/directing: Determining what needs to be done in a situation and
getting people to do it.
Controlling/monitoring: Checking progress against plans.
Motivation: Motivation is also a kind of basic function of management,
because without motivation, employees cannot work effectively. If motivation
does not take place in an organization, then employees may not contribute to
the other functions (which are usually set by top-level management).

17. Discuss the objectives of management. March-2010

The main objectives of management are:

1. Getting Maximum Results with Minimum Efforts - The main objective of

management is to secure maximum outputs with minimum efforts &
resources. Management is basically concerned with thinking & utilizing
human, material & financial resources in such a manner that would result in
best combination. This combination results in reduction of various costs.
2. Increasing the Efficiency of factors of Production - Through proper
utilization of various factors of production, their efficiency can be
increased to a great extent which can be obtained by reducing spoilage,
wastages and breakage of all kinds, this in turn leads to saving of time,
effort and money which is essential for the growth & prosperity of the
enterprise.
3. Maximum Prosperity for Employer & Employees - Management ensures
smooth and coordinated functioning of the enterprise. This in turn helps in
providing maximum benefits to the employee in the shape of good working
condition, suitable wage system, incentive plans on the one hand and higher
profits to the employer on the other hand.
4. Human betterment & Social Justice - Management serves as a tool for the
upliftment as well as betterment of the society. Through increased
 productivity & employment, management ensures better standards of living
for the society. It provides justice through its uniform policies.

18. Explain the difference between x theory and y

theory of management? Which one do you think is
suitable for Islamic Banks? March-2010

19. Banking is nothing but management of risks.

Explain. March-2010

20. How many major risks does a banker should consider

in banking transactions? March-2010

21. Draw a chart of Risk Management Unit of IBBL Head

Office. March-2010

22. What do you mean by the risk Management in the

context of Banking? Explain briefly. October-2010

23. What are the core risk areas in banking to be managed

prudently according to the prudential guidelines of the
central Bank? Discuss each of item precisely. October-
2010

24. How the prophetic management style is superior to the

conventional management practices? Justify through your
own arguments. October-2010
25. What is meant by the term Management theory
jungle? April-2011

26. Differentiate between Manager, Leader and

Entrepreneur. April-2011

27. Describe different managerial skills in relation to

hierarchy in the organization. April-2011

28. How system approach to management process can

produce better functional harmony toward achievement of
verifiable goals? Explain in brief. April-2011

29. Who is known as the father of Scientific Management?

What is his contribution in the field of management
process development? Explain. April-2008, April-2011

30. Who is known as the father of Modern Management

Theory? What is his contribution in the field of Modern
Management development? Explain. April-2008

31. What are the managerial functions according to Modern

Management Practices? How Prophetic Style of
Management is superior to the Modern Management
Practices? Explain citing examples from the life times of
Prophet (Sm.) and his companions to present day society.
April-2008
32. What do you mean by a pluralistic society? What are
the challenging roles of business managers to be played
in a pluralistic society comprising of conflicting interest
groups? Explain. April-2008

33. What do you mean by Corporate Social Responsibility

(CSR)? April-2008, October-2010
Definitions
Corporate Social Responsibility (CSR) is becoming an increasingly important initiative of
businesses both nationally and internationally. There exists no universally accepted
definition of CSR.

The European Commission's definition of CSR is:

"A concept whereby companies integrate social and environmental concerns in their business
operations and in their interaction with their stakeholders on a voluntary basis."

As per WikiPedia, Ideally, CSR policy would function as a built-in, self-regulating

mechanism whereby business would monitor and ensure its support to law, ethical standards,
and international norms. Consequently, business would embrace responsibility for the impact
of its activities on the environment, consumers, employees, communities, stakeholders and
all other members of the public sphere. Furthermore, CSR-focused businesses would
proactively promote the public interest by encouraging community growth and development,
and voluntarily eliminating practices that harm the public sphere, regardless of legality.
Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making,
and the honoring of a triple bottom line: People, Planet, Profit.

The definition of CSR by the World Business Council for Sustainable Development offers an
acceptable definition. They state that "corporate social responsibility is the continuing
commitment by business to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their families as well as of the local
community and society at large.

Lotus Holdings defines CSR as, The integration of the interests of the stakeholders all
those affected by a companys conduct into the companys business policies and actions,
with a focus on the social, environmental, and financial success of a company, the so-called
triple bottom-line with the goal being to positively impact society while achieving business
success.
The reference site Source Watch defines, Corporate social responsibility (CSR) is
commonly described by its promoters as aligning a company's activities with the social,
economic and environmental expectations of its stakeholders.

Business Blogger Sunil B. says, CSR is about authority and accountability, duty and delivery,
risk and reputation, transparency and trust, obligation and opportunity, but ultimately its
about Sustainability. Its about how the world works for the better.

According to the CSR specialized firm CSR Network, Corporate social responsibility (CSR)
is about how businesses align their values and behavior with the expectations and needs of
stakeholders - not just customers and investors, but also employees, suppliers, communities,
regulators, special interest groups and society as a whole. CSR describes a company's
commitment to be accountable to its stakeholders.

According to consultancy firm STENUM GmbH, Corporate Social Responsibility (CSR)

pertains to a companys societal responsibility. The CSR concept takes the idea of
sustainability and combines its three pillars economy, ecology and society with concrete
corporate action. CSR is a central economic factor and a sustainable competition factor,
[Diagram] This diagram explains the components of CSR and how they come together in CSR
reporting which dictates the future viability of a company. Corporate Social Responsibility
encompasses all activities of the company in the fields of social, ethical and ecological
responsibility, with which sustainable development will be implemented in the daily life of
the business.

34. How CSR is related to social responsibility? Explain.

April-2008
BENEFITS
The scale and nature of the benefits of CSR for an organization can vary depending on the
nature of the enterprise, and are difficult to quantify, though there is a large body of
literature exhorting business to adopt measures beyond financial ones (e.g., Deming's
Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes found a correlation
between social/environmental performance and financial performance. However, businesses
may not be looking at short-run financial returns when developing their CSR strategy.

The definition of CSR used within an organization can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable efforts
and volunteering. CSR may be based within the human resources, business development or
public relations departments of an organisation, or may be given a separate unit reporting to
the CEO or in some cases directly to the board. Some companies may implement CSR-type
values without a clearly defined team or programme.
"Some see this work as charity, philanthropy, or an allocation of resources that could better
be donated by shareowners themselves," writes Debra Dunn, Hewlett Packard Senior Vice
President for Global Citizenship in the company's 2005 report. "But to us, it is a vital
investment in our future, essential to our top-line and bottom-line business success."

KPMG's International Survey of Corporate (Social) Responsibility Reporting 2005, which

surveyed more than 1,600 companies worldwide, presents the following top ten motivators
of CSR:
Economic considerations
Ethical considerations
Innovation and learning
Employee motivation
Risk management or risk reduction
Access to capital or increased shareholder value
Reputation or brand
Market position or share
Strengthened supplier relationships
Cost savings

There are other benefits too:

A good reputation makes it easier to recruit employees.
Employees may stay longer, reducing the costs and disruption of recruitment and
retraining.
CSR helps ensure you comply with regulatory requirements.
Activities such as involvement with the local community are ideal opportunities to
generate positive press coverage.
Good relationships with local authorities make doing business easier.
Understanding the wider impact of your business can help you develop new products
and services.
CSR can make you more competitive and reduces the risk of sudden damage to your
reputation (and sales). Investors recognize this and are more willing to finance you.

35. Give 5 (five) arguments in favour of social involvement

of Business Organization established for profit. April-2008
The Advantages & Disadvantages of Corporate Social Responsibility
Jagg Xaxx has been writing since 1983. His primary areas of writing include
surrealism, Buddhist iconography and environmental issues. He is interested in
wilderness preservation, the history of technology and the potential of art to save
the world. Xaxx holds a Doctor of Philosophy in art history from the University of
Manchester in the U.K.
By Jagg Xaxx, eHow Contributor

CSR has its adherents and its opponents.

Corporate social responsibility, or CSR, is a movement designed to make private
corporations more answerable to public, social and environmental concerns.
Advocates of CSR believe that corporations, because they benefit from being a
part of society, have an ethical obligation to give back to society through
philanthropic activities that go above and beyond private business interests. CSR
can help corporations develop positive relationships with society, but in some cases
it can lead to charges of hypocrisy.

1. Advantage to Corporations: Public Relations

o Corporations use their involvement in socially responsible organizations to

increase their public profile and to associate their brands with activities and
movements that are seen as altruistic and public-spirited. The reputation of
a corporation among the consuming public is vitally important to its economic
health, and CSR is one method of improving that reputation. By giving money
to organizations that help poor people, supporting environmental initiatives
such as tree planting and alternative energy, or initiating aid programs in
developing countries, corporations balance their primary roles as
shareholder-owned, profit-making entities with activities involving public
giving.

2. Advantage to Society: Funding

o Because of the enormous economic strength of large corporations, their

donations to nonprofit groups and public initiatives can make an enormous
difference in the financial health of such organizations. Nonprofit
organizations that focus on providing services and resources to
environmental initiatives or the underprivileged usually depend on
government grants and donations for their survival. Because their activities
are not focused on profit-making enterprises, they need to get their money
from elsewhere. Although many people question the motivations of
corporations that make large donations, it can't be denied that these
donations are extremely helpful to various social initiatives.

1. Disadvantage to Corporations: Backlash

o Many people will question the underlying motives for everything that a
large corporation does. Given the track records of many corporations, this is
a somewhat cynical but justifiable stance. When a corporation becomes
involved in CSR, it opens itself to accusations of hypocrisy. When a company
gets involved in a movement that contradicts the public perception of its
corporate activities -- such as when Weyerhaeuser plants trees or
ExxonMobil cleans up beaches -- some sectors of the public will react
negatively and make charges of greenwashing. Whether these charges are
 justified or simply reflect the bitter attitudes of alienated people is a
matter of ongoing debate.

2. Disadvantage to Society: Co-optation

a. When charges of greenwashing are justified and a corporation
becomes involved in a social movement while simultaneously engaging in
damaging social or environmental activities, the movements that it supports
are in danger of being co-opted by the corporation's underlying agenda. This
is particularly true in the case of corporate support for public media. Once a
public radio or television station becomes dependent on the financial support
of an industry, pressure can be applied to prevent any criticism of that
industry from being broadcast.

36. How does CSR help to attain organizational objectives?

October-2010

37. What is the social responsibility of a business? State

the social responsibility of IBBL Management from Islamic
perspective of view. April-2011

38. What do you understand by the word Ethics in

Business? Why Ethical Practices are getting prominence
in Business? Explain with examples. April-2008

39. What do you mean by the code of ethics? Explain why

the ethical considerations are going to get prominence in
the management of business day by day? October-2010
An ethical code is adopted by an organization in an attempt to assist those in the
organization called upon to make a decision (usually most, if not all) understand the
difference between 'right' and 'wrong' and to apply this understanding to their decision.
The ethical code therefore generally implies documents at three levels: codes of business
ethics, codes of conduct for employees and codes of professional practice.

Code of ethics (corporate or business ethics)

A code of business ethics often focuses on social issues. It may set out general principles
about an organization's beliefs on matters such as mission, quality, privacy or the
environment. It may delineate proper procedures to determine whether a violation of the
code of ethics has occurred and, if so, what remedies should be imposed. The
effectiveness of such codes of ethics depends on the extent to which management
supports them with sanctions and rewards. Violations of a private organization's code of
ethics usually can subject the violator to the organization's remedies (such as restraint of
trade based on moral principles). The code of ethics links to and gives rise to a code of
conduct for employees.

Code of conduct (employee ethics)

A code of conduct for employees sets out the procedures to be used in specific ethical
situations, such as conflicts of interest or the acceptance of gifts, and delineate the
procedures to determine whether a violation of the code of ethics occurred and, if so,
what remedies should be imposed. The effectiveness of such codes of ethics depends on
the extent to which management supports them with sanctions and rewards. Violations of
a code of conduct may subject the violator to the organization's remedies which can under
particular circumstances result in the termination of employment.

[edit] Code of practice (professional ethics)

A code of practice is adopted by a profession or by a governmental or non-governmental

organization to regulate that profession. A code of practice may be styled as a code of
professional responsibility, which will discuss difficult issues, difficult decisions that will
often need to be made, and provide a clear account of what behavior is considered
"ethical" or "correct" or "right" in the circumstances. In a membership context, failure to
comply with a code of practice can result in expulsion from the professional organization.
In its 2007 International Good Practice Guidance, Defining and Developing an Effective
Code of Conduct for Organizations, the International Federation of Accountants [1]
provided the following working definition: "Principles, values, standards, or rules of
behavior that guide the decisions, procedures and systems of an organization in a way
that (a) contributes to the welfare of its key stakeholders, and (b) respects the rights of all
constituents affected by its operations."

General notes

Ethical codes are often adopted by management, not because of some over-riding
corporate mission to promote a particular moral theory, but accepted as pragmatic
necessities in running an organization in a complex society in which moral concepts play
an important part.
They are distinct from moral codes that may apply to the culture, education, and religion
of a whole society.

Of course, certain acts that constitute a violation of ethical codes may also violate a law
or regulation and can be punishable at law or by government agency remedies.

Even organizations and communities that may be considered criminal may have their
own ethical code of conduct, be it official or unofficial. Examples could be hackers,
thieves, or even street gangs.

Examples
Code of Conduct for the International Red Cross and Red Crescent Movement
and NGOs in Disaster Relief
Code of the U.S. Fighting Force
Declaration of Geneva
Eight Precepts
Ethic of reciprocity (Golden Rule)
Five Precepts
Hippocratic Oath
ICC Cricket Code of Conduct
Institute of Internal Auditors, Code of Ethics
International Code of Conduct against Ballistic Missile Proliferation (ICOC or
Hague Code of Conduct)
Journalist's Creed
Moral Code of the Builder of Communism
Patimokkha
Pirate code of the Brethren
Israel Defense Forces - Code of Conduct
Rule of St. Benedict
Silver Rule
Thomas Percival
Ten Commandments
Ten Indian commandments
Ten Precepts (Buddhism)
Ten Precepts (Taoism)
Warrior code
Bushid
Uniform Code of Military Justice
Aviators Model Code of Conduct
40. What are the inner strengths of IBBL behind their
tremendous success within a short period of 25 years?
Explain each of the strengths. April-2008, August-2008

41. Mention the weaknesses and challenges of IBBL and

also suggest the measure to overcome the weaknesses
and to face the challenges in future. August-2008

42. Keeping the example of IBBL in view, explain the

importance of value orientation in achieving the
organizational goal. October-2010

43. What do you mean by MBO? April-2008, February-2009

The concept of Management by Objectives (MBO) was first given by Peter
Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to
be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the
comparison of the employees actual performance with the standards set. Ideally,
when employees themselves have been involved with the goal setting and the
choosing the course of action to be followed by them, they are more likely to fulfill
their responsibilities.

THE MBO PROCESS

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered
employees who have clarity of the roles and responsibilities expected from
them understand their objectives to be achieved and thus help in the
achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

 Clarity of goals With MBO, came the concept of SMART goals i.e. goals
that are:

Specific
Measurable
Achievable
Realistic, and Time bound.

The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for
the performance for the future with periodic reviews and feedback.
Motivation Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job satisfaction and
commitment.

Better communication and Coordination Frequent reviews and interactions

between superiors and subordinates helps to maintain harmonious relationships
within the enterprise and also solve many problems faced during the period.
45. State the advantages and disadvantages of MBO April-
2008, February-2009
Management by Objectives (MBO) is a process of defining objectives within an
organization so that management and employees agree to the objectives and
understand what they need to do in the organization.

The term "management by objectives" was first popularized by Peter Drucker in his
1954 book 'The Practice of Management'.[1]

The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the
comparison of the employees actual performance with the standards set. Ideally,
when employees themselves have been involved with the goal setting and choosing
the course of action to be followed by them, they are more likely to fulfill their
responsibilities.

According to George S. Odiorne, the system of management by objectives can be

described as a process whereby the superior and subordinate managers of an
organization jointly identify its common goals, define each individual's major areas
of responsibility in terms of the results expected of him, and use these measures
as guides for operating the unit and assessing the contribution of each of its
members.[2]

Features and Advantages

Unique features and advantages of the MBO process

The basic principle behind Management by Objectives (MBO) is for employees to

have a clear understanding of the roles and responsibilities expected of them. They
can then understand how their activities relate to the achievement of the
organization's goal. MBO also places importance on fulfilling the personal goals of
each employee.

Some of the important features and advantages of MBO are:

1. Motivation Involving employees in the whole process of goal setting and

increasing employee empowerment. This increases employee job satisfaction
and commitment.
2. Better communication and Coordination Frequent reviews and interactions
between superiors and subordinates helps to maintain harmonious
relationships within the organization and also to solve many problems.
3. Clarity of goals
4. Subordinates tend to have a higher commitment to objectives they set for
themselves than those imposed on them by another person.
5. Managers can ensure that objectives of the subordinates are linked to the
organization's objectives.

Domains and levels

Objectives can be set in all domains of activities (production, marketing, services,

sales, R&D, human resources, finance, information systems etc.).

Some objectives are collective, for a whole department or the whole company,
others can be individualized.

Practice

Objectives need quantifying and monitoring. Reliable management information

systems are needed to establish relevant objectives and monitor their "reach ratio"
in an objective way. Pay incentives (bonuses) are often linked to results in reaching
the objectives.

Limitations
There are several limitations to the assumptive base underlying the impact of
managing by objectives, including:

1. It over-emphasizes the setting of goals over the working of a plan as a driver of

outcomes.

2. It underemphasizes the importance of the environment or context in which the

goals are set. That context includes everything from the availability and quality of
resources, to relative buy-in by leadership and stake-holders. As an example of the
influence of management buy-in as a contextual influencer, in a 1991 comprehensive
review of thirty years of research on the impact of Management by Objectives,
Robert Rodgers and John Hunter concluded that companies whose CEOs
demonstrated high commitment to MBO showed, on average, a 56% gain in
productivity. Companies with CEOs who showed low commitment only saw a 6% gain
in productivity.

3. Companies evaluated their employees by comparing them with the "ideal"

employee. Trait appraisal only looks at what employees should be, not at what they
should do.

When this approach is not properly set, agreed and managed by organizations, self-
centered employees might be prone to distort results, falsely representing
achievement of targets that were set in a short-term, narrow fashion. In this case,
managing by objectives would be counterproductive.

The use of MBO must be carefully aligned with the culture of the organization.
While MBO is not as fashionable as it was before, it still has its place in
management today. The key difference is that rather than 'set' objectives from a
cascade process, objectives are discussed and agreed upon. Employees are often
involved in this process, which can be advantageous.

A saying around MBO -- "What gets measured gets done", Why measure
performance? Different purposes require different measures -- is perhaps the
most famous aphorism of performance measurement; therefore, to avoid potential
problems SMART and SMARTER objectives need to be agreed upon in the true
sense rather than set.

Arguments Against

MBO has its detractors, notably among them W. Edwards Deming, who argued that
a lack of understanding of systems commonly results in the misapplication of
objectives.[3] Additionally, Deming stated that setting production targets will
encourage resources to meet those targets through whatever means necessary,
which usually results in poor quality.[4]

Point 7 of Deming's key principles encourages managers to abandon objectives in

favour of leadership because he felt that a leader with an understanding of
systems was more likely to guide workers to an appropriate solution than the
incentive of an objective. Deming also pointed out that Drucker warned managers
that a systemic view was required [5] and felt that Drucker's warning went largely
unheeded by the practitioners of MBO.

46. What do you mean by TOWS matrix? How it can help

us in determining the strategies for setting the
organizational goal having variable objectives? Explain.
April-2008, February-2009

Using the TOWS Matrix

Developing strategic options from an external-internal analysis

TOWS Analysis is a variant of the classic business tool, SWOT Analysis. TOWS and
SWOT are acronyms for different arrangements of the words Strengths,
Weaknesses, Opportunities and Threats.

By analyzing the external environment (threats and opportunities), and your

internal environment (weaknesses and strengths), you can use these techniques to
think about the strategy of your whole organization, a department or a team. You
can also use them to think about a process, a marketing campaign, or even your own
skills and experience.

Our article on SWOT Analysis helps you perform a thorough SWOT/TOWS

Analysis. At a practical level, the only difference between TOWS and SWOT is
that TOWS emphasizes the external environment whilst SWOT emphasizes the
internal environment. In both cases, this analysis results in a SWOT (or TOWS)
Matrix like the one shown below:

In this article, we look at how you can extend your use of SWOT and TOWS to
think in detail about the strategic options open to you. While this approach can be
used just as well with SWOT as TOWS, it's most often associated with TOWS.

Identifying Strategic Options

SWOT or TOWS analysis helps you get a better understanding of the strategic
choices that you face. (Remember that "strategy" is the art of determining how
you'll "win" in business and life.) It helps you ask, and answer, the following
questions: How do you:

Make the most of your strengths?

Circumvent your weaknesses?
Capitalize on your opportunities?
Manage your threats?

A next step of analysis, usually associated with the externally-focused TOWS

Matrix, helps you think about the options that you could pursue. To do this you
match external opportunities and threats with your internal strengths and
weaknesses, as illustrated in the matrix below:

TOWS Strategic Alternatives Matrix

This helps you identify strategic alternatives that address the following additional
questions:

Strengths and Opportunities (SO) How can you use your strengths to
take advantage of the opportunities?
Strengths and Threats (ST) How can you take advantage of your
strengths to avoid real and potential threats?
Weaknesses and Opportunities (WO) How can you use your
opportunities to overcome the weaknesses you are experiencing?
Weaknesses and Threats (WT) How can you minimize your weaknesses
and avoid threats?
Using the Tool

Step 1: Print off our free SWOT Worksheet and perform a TOWS/SWOT
analysis, recording your findings in the space provided. This helps you understand
what your strengths and weaknesses are, as well as identifying the opportunities
and threats that you should be looking at.

Step 2: Print off our free TOWS Strategic Options Worksheet, and copy the key
conclusions from the SWOT Worksheet into the area provided (shaded in blue).

Step 3: For each combination of internal and external environmental factors,

consider how you can use them to create good strategic options:
 Strengths and Opportunities (SO) How can you use your strengths to
take advantage of these opportunities?
Strengths and Threats (ST) How can you take advantage of your
strengths to avoid real and potential threats?
Weaknesses and Opportunities (WO) How can you use your
opportunities to overcome the weaknesses you are experiencing?
Weaknesses and Threats (WT) How can you minimize your weaknesses
and avoid threats?

Note:
The WT quadrant weaknesses and threats is concerned with defensive
strategies. Put these into place to protect yourself from loss, however don't rely on
them to create success.

The options you identify are your strategic alternatives, and these can be listed in
the appropriate quadrant of the TOWS worksheet.

Tip:
When you have many factors to consider, it may be helpful to construct a matrix to
match individual strengths and weaknesses to the individual opportunities and
threats you've identified. To do this, you can construct a matrix such as the one
below for each quadrant (SO, ST, WO, and WT).

This helps you analyze in more depth options that hold the greatest promise. Note
any new alternatives you identify on the TOWS Strategic Alternatives worksheet.

Step 4: Evaluate the options you've generated, and identify the ones that give the
greatest benefit, and that best achieve the mission and vision of your organization.
Add these to the other strategic options that you're considering.

Tip:
See the Mind Tools Strategy and Creativity Sections for other useful techniques
for understanding your environment, and analyzing your strategic options. And see
our Problem Solving and Decision Making Sections for techniques for understanding
these options in more detail, and deciding between them.
Key Points:

The TOWS Matrix is a relatively simple tool for generating strategic options. By
using it, you can look intelligently at how you can best take advantage of the
opportunities open to you, at the same time that you minimize the impact of
weaknesses and protect yourself against threats.

Used after detailed analysis of your threats, opportunities, strength and

weaknesses, it helps you consider how to use the external environment to your
strategic advantage, and so identify some of the strategic options available to you.

47. State the decision making process under Japanese

Management Style. Mention the advantages and
disadvantages in adopting the same in our
environment. April-2008, February-2009

48. Why timely decision making is so important for an

effective management? April-2011

49. Who is a creative manager? Is a creative manager

always useful for the organization? April-2011

50. Why the Managers of todays business organization is

expected of highly ethical in dealing with customers?
April-2011

51. What is Gantt Chart? Mention the importance of Gantt

Chart along with its areas of application. October-2010
 52. What is SOWT? Why and how the analysis is done?
Mention its importance pin-pointing the benefits to be
derived out of the process October-2010

53. Why green banking concept in banking is growing

worldwide popular? April-2011

54. What is organizational culture? November-2007

Organizational culture is an idea in the field of organizational studies and

management which describes the psychology, attitudes, experiences, beliefs and
values (personal and cultural values) of an organization. It has been defined as "the
specific collection of values and norms that are shared by people and groups in an
organization and that control the way they interact with each other and with
stakeholders outside the organization."[1] Ravasi and Schultz (2006) state that
organizational culture is a set of shared mental assumptions that guide
interpretation and action in organizations by defining appropriate behavior for
various situations. Although its difficult to get consensus about the definition of
organizational culture, several constructs are commonly agreed upon that
organizational culture is holistic, historically determined, related to anthropological
concepts, socially constructed, soft, and difficult to change.

This definition continues to explain organizational values, described as "beliefs and

ideas about what kinds of goals members of an organization should pursue and
ideas about the appropriate kinds or standards of behavior organizational
members should use to achieve these goals. From organizational values develop
organizational norms, guidelines, or expectations that prescribe appropriate
kinds of behavior by employees in particular situations and control the
behavior of organizational members towards one another." [1]

Strong/weak cultures

Strong culture is said to exist where staff respond to stimulus because of their
alignment to organizational values. In such environments, strong cultures help firms
operate like well-oiled machines, cruising along with outstanding execution and
perhaps minor tweaking of existing procedures here and there.

Conversely, there is weak culture where there is little alignment with organizational
values and control must be exercised through extensive procedures and
bureaucracy.

Research shows that organizations that foster strong cultures have clear values
that give employees a reason to embrace the culture. A "strong" culture may be
especially beneficial to firms operating in the service sector since members of
these organizations are responsible for delivering the service and for evaluations
important constituents make about firms. Research indicates that organizations
may derive the following benefits from developing strong and productive cultures:

Better aligning the company towards achieving its vision, mission, and goals
High employee motivation and loyalty
Increased team cohesiveness among the companys various departments and
divisions
Promoting consistency and encouraging coordination and control within the
company
Shaping employee behavior at work, enabling the organization to be more
efficient

Where culture is strongpeople do things because they believe it is the right thing
to dothere is a risk of another phenomenon, Groupthink. "Groupthink" was
described by Irving L. Janis. He defined it as "...a quick and easy way to refer to a
mode of thinking that people engage when they are deeply involved in a cohesive in-
group, when members' strive for unanimity override their motivation to realistically
appraise alternatives of action." This is a state where people, even if they have
different ideas, do not challenge organizational thinking, and therefore there is a
reduced capacity for innovative thoughts. This could occur, for example, where
there is heavy reliance on a central charismatic figure in the organization, or where
there is an evangelical belief in the organizations values, or also in groups where a
friendly climate is at the base of their identity (avoidance of conflict). In fact
group think is very common, it happens all the time, in almost every group. Members
that are defiant are often turned down or seen as a negative influence by the rest
of the group, because they bring conflict.

Innovative organizations need individuals who are prepared to challenge the status
quobe it group-think or bureaucracy, and also need procedures to implement new
ideas effectively.

Characteristics of healthy organizational cultures

Organizations should strive for what is considered a healthy organizational

culture in order to increase productivity, growth, efficiency and reduce employee
turnover and other counterproductive behavior. A variety of characteristics
describe a healthy culture, including:

Acceptance and appreciation for diversity

Regard for and fair treatment of each employee as well as respect for each
employees contribution to the company
Employee pride and enthusiasm for the organization and the work performed
Equal opportunity for each employee to realize their full potential within the
company
Strong communication with all employees regarding policies and company
issues
Strong company leaders with a strong sense of direction and purpose
Ability to compete in industry innovation and customer service, as well as
price
Lower than average turnover rates (perpetuated by a healthy culture)
Investment in learning, training, and employee knowledge

Additionally, performance oriented cultures have been shown to possess

statistically better financial growth. Such cultures possess high employee
involvement, strong internal communications and an acceptance and encouragement
of a healthy level of risk-taking in order to achieve innovation. Additionally,
organizational cultures that explicitly emphasize factors related to the demands
placed on them by industry technology and growth will be better performers in
their industries.
According to Kotter and Heskett (1992), organizations with adaptive cultures
perform much better than organizations with unadaptive cultures. An adaptive
culture translates into organizational success; it is characterized by managers
paying close attention to all of their constituencies, especially customers, initiating
change when needed, and taking risks. An unadaptive culture can significantly
reduce a firm's effectiveness, disabling the firm from pursuing all its
competitive/operational options.

Typologies

Several methods have been used to classify organizational culture. While there is
no single type of organizational culture and organizational cultures vary widely
from one organization to the next, commonalities do exist and some researchers
have developed models to describe different organizational cultures. Some are
described below:

Hofstede (1980[2]) demonstrated that there are national and regional cultural
groupings that affect the behavior of organizations.

Hofstede looked for national differences between over 100,000 of IBM's

employees in different parts of the world, in an attempt to find aspects of culture
that might influence business behavior.

Hofstede identified four dimensions of culture in his study of national influences:

Power distance - The degree to which a society expects there to be

differences in the levels of power. A high score suggests that there is an
expectation that some individuals wield larger amounts of power than others. A
low score reflects the view that all people should have equal rights.
Uncertainty avoidance reflects the extent to which a society accepts
uncertainty and risk.
Individualism vs. collectivism - individualism is contrasted with collectivism,
and refers to the extent to which people are expected to stand up for
themselves, or alternatively act predominantly as a member of the group or
organization. However, recent researches have shown that high individualism
may not necessarily mean low collectivism, and vice versa [citation needed]
. Research
indicates that the two concepts are actually unrelated. Some people and
 cultures might have both high individualism and high collectivism, for example.
Someone who highly values duty to his or her group does not necessarily give a
low priority to personal freedom and self-sufficiency
Masculinity vs. femininity - refers to the value placed on traditionally male
or female values. Male values for example include competitiveness,
assertiveness, ambition, and the accumulation of wealth and material
possessions[citation needed].

Two common models and their associated measurement tools have been developed
by OReilly et al and Denison.

ORielly, Chatman & Caldwell (1991) developed a model based on the belief that
cultures can be distinguished by values that are reinforced within organizations.
Their Organizational Profile Model (OCP) is a self reporting tool which makes
distinctions according seven categories - Innovation, Stability, Respect for People,
Outcome Orientation, Attention to Detail, Team Orientation, and Aggressiveness.
The model is not intended to measure how organizational culture effects
organizational performance, rather it measures associations between the
personalities of individuals in the organization and the organizations culture.

Daniel Denisons model (1990) asserts that organizational culture can be described
by four general dimensions Mission, Adaptability, Involvement and Consistency.
Each of these general dimensions is further described by the following three sub-
dimensions:

Mission -Strategic Direction and Intent, Goals and Objectives and Vision
Adaptability -Creating Change, Customer Focus and Organizational Learning
Involvement - Empowerment, Team Orientation and Capability Development
Consistency -Core Values, Agreement, Coordination/Integration

Denisons model also allows cultures to be described broadly as externally- or

internally-focused as well as flexible versus stable. The model has been typically
used to diagnose cultural problems in organizations.
Deal and Kennedy

Deal and Kennedy[3] defined organizational culture as the way things get done
around here. In relation to its feedback this would mean a quick response and also
measured organizations in ition, such as oil prospecting or military aviation.

The Process Culture occurs in organizations where there is little or no

feedback. People become bogged down with how things are done not with what is
to be achieved. This is often associated with bureaucracies. While it is easy to
criticize these cultures for being overly cautious or bogged down in red tape,
they do produce consistent results, which is ideal in, for example, public
services.

Charles Handy

Charles Handy[4] (1985) popularized the 1972 work of Roger Harrison of looking at
culture which some scholars have used to link organizational structure to
organizational culture. He describes Harrison's four types thus:

A Power Culture which concentrates power among a few. Control radiates

from the center like a web. Power and influence spread out from a central
figure or group. Power desires from the top person and personal relationships
with that individual matters more than any formal title of position. Power
Cultures have few rules and little bureaucracy; swift decisions can ensue.
In a Role Culture, people have clearly delegated authorities within a highly
defined structure. Typically, these organizations form hierarchical
bureaucracies. Power derives from a person's position and little scope exists
for expert power. Controlled by procedures, roles descriptions and authority
definitions. Predictable and consistent systems and procedures are highly
valued.
By contrast, in a Task Culture, teams are formed to solve particular
problems. Power derives from expertise as long as a team requires expertise.
These cultures often feature the multiple reporting lines of a matrix structure.
It is all a small team approach, who are highly skilled and specialist in their own
markets of experience.
A Person Culture exists where all individuals believe themselves superior to
the organization. Survival can become difficult for such organizations, since the
 concept of an organization suggests that a group of like-minded individuals
pursue the organizational goals. Some professional partnerships can operate as
person cultures, because each partner brings a particular expertise and
clientele to the firm.

Edgar Schein

Edgar Schein,[5] an MIT Sloan School of Management professor, defines

organizational culture as:

"A pattern of shared basic assumptions that was learned by a group as it solved its
problems of external adaptation and internal integration, that has worked well
enough to be considered valid and, therefore, to be taught to new members as the
correct way you perceive, think, and feel in relation to those problems "(Schein,
2004, p. 17).

According to Schein, culture is the most difficult organizational attribute to

change, outlasting organizational products, services, founders and leadership and all
other physical attributes of the organization. His organizational model illuminates
culture from the standpoint of the observer, described by three cognitive levels of
organizational culture.

At the first and most cursory level of Schein's model is organizational attributes
that can be seen, felt and heard by the uninitiated observer - collectively known as
artifacts. Included are the facilities, offices, furnishings, visible awards and
recognition, the way that its members dress, how each person visibly interacts with
each other and with organizational outsiders, and even company slogans, mission
statements and other operational creeds.

Artifacts comprise the physical components of the organization that relay cultural
meaning. Daniel Denison (1990) describes artifacts as the tangible aspects of
culture shared by members of an organization. Verbal, behavioral and physical
artifacts are the surface manifestations of organizational culture. Rituals, the
collective interpersonal behavior and values as demonstrated by that behavior,
constitute the fabric of an organizations culture. The contents of myths, stories,
and sagas reveal the history of an organization and influence how people understand
what their organization values and believes. Language, stories, and myths are
examples of verbal artifacts and are represented in rituals and ceremonies.
Technology and art exhibited by members or an organization are examples of
physical artifacts.

The next level deals with the professed culture of an organization's members - the
values. Shared values are individuals preferences regarding certain aspects of the
organizations culture (e.g. loyalty, customer service). At this level, local and
personal values are widely expressed within the organization. Basic beliefs and
assumptions include individuals impressions about the trustworthiness and
supportiveness of an organization, and are often deeply ingrained within the
organizations culture. Organizational behavior at this level usually can be studied
by interviewing the organization's membership and using questionnaires to gather
attitudes about organizational membership.

At the third and deepest level, the organization's tacit assumptions are found.
These are the elements of culture that are unseen and not cognitively identified in
everyday interactions between organizational members. Additionally, these are the
elements of culture which are often taboo to discuss inside the organization. Many
of these 'unspoken rules' exist without the conscious knowledge of the
membership. Those with sufficient experience to understand this deepest level of
organizational culture usually become acclimatized to its attributes over time, thus
reinforcing the invisibility of their existence. Surveys and casual interviews with
organizational members cannot draw out these attributesrather much more in-
depth means is required to first identify then understand organizational culture at
this level. Notably, culture at this level is the underlying and driving element often
missed by organizational behaviorists.

Using Schein's model, understanding paradoxical organizational behaviors becomes

more apparent. For instance, an organization can profess highly aesthetic and moral
standards at the second level of Schein's model while simultaneously displaying
curiously opposing behavior at the third and deepest level of culture. Superficially,
organizational rewards can imply one organizational norm but at the deepest level
imply something completely different. This insight offers an understanding of the
difficulty that organizational newcomers have in assimilating organizational culture
and why it takes time to become acclimatized. It also explains why organizational
change agents usually fail to achieve their goals: underlying tacit cultural norms are
generally not understood before would-be change agents begin their actions. Merely
understanding culture at the deepest level may be insufficient to institute cultural
change because the dynamics of interpersonal relationships (often under
threatening conditions) are added to the dynamics of organizational culture while
attempts are made to institute desired change.

Robert A. Cooke

The Organizational Culture Inventory: Culture Clusters

Robert A. Cooke, PhD, defines culture as the behaviors that members believe are
required to fit in and meet expectations within their organization. The
Organizational Culture Inventory measures twelve behavioral of norms that are
grouped into three general types of cultures:

Constructive Cultures, in which members are encouraged to interact with

people and approach tasks in ways that help them meet their higher-order
satisfaction needs.
Passive/Defensive Cultures, in which members believe they must interact
with people in ways that will not threaten their own security.
Aggressive/Defensive Cultures, in which members are expected to approach
tasks in forceful ways to protect their status and security.

The Constructive Cluster

The Constructive Cluster includes cultural norms that reflect expectations for
members to interact with others and approach tasks in ways that will help them
meet their higher order satisfaction needs for affiliation, esteem, and self-
actualization.

The four cultural norms in this cluster are:

Achievement
Self-Actualizing
Humanistic-Encouraging
Affiliative
Organizations with Constructive cultures encourage members to work to their full
potential, resulting in high levels of motivation, satisfaction, teamwork, service
quality, and sales growth. Constructive norms are evident in environments where
quality is valued over quantity, creativity is valued over conformity, cooperation is
believed to lead to better results than competition, and effectiveness is judged at
the system level rather than the component level. These types of cultural norms
are consistent with (and supportive of) the objectives behind empowerment, total
quality management, transformational leadership, continuous improvement, re-
engineering, and learning organizations.

The Passive/Defensive Cluster

Norms that reflect expectations for members to interact with people in ways that
will not threaten their own security are in the Passive/Defensive Cluster.

The four Passive/Defensive cultural norms are:

Approval
Conventional
Dependent
Avoidance

In organizations with Passive/Defensive cultures, members feel pressured to think

and behave in ways that are inconsistent with the way they believe they should in
order to be effective. People are expected to please others (particularly superiors)
and avoid interpersonal conflict. Rules, procedures, and orders are more important
than personal beliefs, ideas, and judgment. Passive/Defensive cultures experience a
lot of unresolved conflict and turnover, and organizational members report lower
levels of motivation and satisfaction.

The Aggressive/Defensive Cluster

The Aggressive/Defensive Cluster includes cultural norms that reflect

expectations for members to approach tasks in ways that protect their status and
security.

The Aggressive/Defensive cultural norms are:

 Oppositional
Power
Competitive
Perfectionistic

Organizations with Aggressive/Defensive cultures encourage or require members to

appear competent, controlled, and superior. Members who seek assistance, admit
shortcomings, or concede their position are viewed as incompetent or weak. These
organizations emphasize finding errors, weeding out "mistakes" and encouraging
members to compete against each other rather than competitors. The short-term
gains associated with these strategies are often at the expense of long-term
growth.

Factors and elements

G. Johnson[6] described a cultural web, identifying a number of elements that can be

used to describe or influence Organizational Culture:

The Paradigm: What the organization is about; what it does; its mission; its
values.
Control Systems: The processes in place to monitor what is going on. Role
cultures would have vast rulebooks. There would be more reliance on
individualism in a power culture.
Organizational Structures: Reporting lines, hierarchies, and the way that
work flows through the business.
Power Structures: Who makes the decisions, how widely spread is power,
and on what is power based?
Symbols: These include organizational logos and designs, but also extend to
symbols of power such as parking spaces and executive washrooms.
Rituals and Routines: Management meetings, board reports and so on may
become more habitual than necessary.
Stories and Myths: build up about people and events, and convey a message
about what is valued within the organization.

These elements may overlap. Power structures may depend on control systems,
which may exploit the very rituals that generate stories which may not be true.
According to Schein (1992), the two main reasons why cultures develop in
organizations is due to external adaptation and internal integration. External
adaptation reflects an evolutionary approach to organizational culture and suggests
that cultures develop and persist because they help an organization to survive and
flourish. If the culture is valuable, then it holds the potential for generating
sustained competitive advantages. Additionally, internal integration is an important
function since social structures are required for organizations to exist.
Organizational practices are learned through socialization at the workplace. Work
environments reinforce culture on a daily basis by encouraging employees to
exercise cultural values. Organizational culture is shaped by multiple factors,
including the following:

External environment
Industry
Size and nature of the organizations workforce
Technologies the organization uses
The organizations history and ownership

Organizational values, role models, symbols and rituals shape organizational culture.
Organizations often outline their values in their mission statements, although this
does not guarantee that organizational culture will reflect them. The individuals
that organizations recognize as role models set, by example, the behavior valued by
the organization. In addition, tangible factors such as work environment act as
symbols, creating a sense of corporate identity.

The founding of an organization is a critical period in the life of the organization

and the development of its culture. An organizations founder or chief executive
has an influential impact on the development of the organizations culture since that
person is likely to have control in hiring people with the same values and influence
the choice of strategy. By screening candidates for a cultural fit, organizations
select those employees that will be able to uphold the organizational culture.
Additionally, leaders embed culture in organizations by what they pay attention to,
measure, and control; how they react to critical incidents and crises; the behaviors
they model for others; and how they allocate rewards and other scarce resources.
Additionally, the legacy of an organizational founder may be reflected in the
culture long after that person leaves through the processes of cultural
transmission (e.g. rites, stories) where the culture perpetuates itself. The values of
founders and key leaders shape organizational cultures, but the way these cultures
affect individuals is through shared practices.

Impacts

Research suggests that numerous outcomes have been associated either directly or
indirectly with organizational culture. A healthy and robust organizational culture
may provide various benefits, including the following:

Competitive edge derived from innovation and customer service

Consistent, efficient employee performance
Team cohesiveness
High employee morale
Strong company alignment towards goal achievement

Although little empirical research exists to support the link between organizational
culture and organizational performance, there is little doubt among experts that
this relationship exists. Organizational culture can be a factor in the survival or
failure of an organization - although this is difficult to prove considering the
necessary longitudinal analyses are hardly feasible. The sustained superior
performance of firms like IBM, Hewlett-Packard, Proctor and Gamble, and
McDonald's may be, at least partly, a reflection of their organizational cultures.

A 2003 Harvard Business School study reported that culture has a significant
impact on an organizations long-term economic performance. The study examined
the management practices at 160 organizations over ten years and found that
culture can enhance performance or prove detrimental to performance.
Organizations with strong performance-oriented cultures witnessed far better
financial growth. Additionally, a 2002 Corporate Leadership Council study found
that cultural traits such as risk taking, internal communications, and flexibility are
some of the most important drivers of performance, and may impact individual
performance. Furthermore, innovativeness, productivity through people, and the
other cultural factors cited by Peters and Waterman (1982) also have positive
economic consequences.
Denison, Haaland, and Goelzer (2004) found that culture contributes to the success
of the organization, but not all dimensions contribute the same. It was found that
the impacts of these dimensions differ by global regions, which suggests that
organizational culture is impacted by national culture. Additionally, Clarke (2006)
found that a safety climate is related to an organizations safety record.

Organizational culture is reflected in the way people perform tasks, set objectives,
and administer the necessary resources to achieve objectives. Culture affects the
way individuals make decisions, feel, and act in response to the opportunities and
threats affecting the organization.

Adkins and Caldwell (2004) found that job satisfaction was positively associated
with the degree to which employees fit into both the overall culture and subculture
in which they worked. A perceived mismatch of the organizations culture and what
employees felt the culture should be is related to a number of negative
consequences including lower job satisfaction, higher job strain, general stress, and
turnover intent.

It has been proposed that organizational culture may impact the level of employee
creativity, the strength of employee motivation, and the reporting of unethical
behavior, but more research is needed to support these conclusions.

Organizational culture also has an impact on recruitment and retention. Individuals

tend to be attracted to and remain engaged in organizations that they perceive to
be compatible. Additionally, high turnover may be a mediating factor in the
relationship between culture and organizational performance. Deteriorating
company performance and an unhealthy work environment are signs of an overdue
cultural assessment.

Organizational Culture Assessment Instrument

Robert Quinn and Kim Cameron researched what makes organizations effective and
successful. Based on the Competing Values Framework, they developed the
Organizational Culture Assessment Instrument that distinguishes four culture
types. See their book: Diagnosing and Changing Organizational Culture.
Competing values produce polarities like: flexibility versus stability and internal
versus external focus. These two polarities were found to be most important in
defining organizational success.

The polarities construct a quadrant with four types of culture:

Clan Culture
-Internal focus and flexible - A friendly workplace where leaders act like
father figures.
Adhocracy Culture
-External focus and flexible - A dynamic workplace with leaders that
stimulate innovation.
Market Culture
-External focus and controlled - A competitive workplace with leaders like
hard drivers
Hierarchy Culture
-Internal focus and controlled - A structured and formalized workplace
where leaders act like coordinators.

Cameron & Quinn found six key aspects that will make up a culture. These can be
assessed in the Organizational Culture Assessment Instrument (OCAI) thus
producing a mix of these four archetypes of culture. Each organization or team will
have its unique mix of culture types.

Clan cultures are most strongly associated with positive employee attitudes and
product and service quality, whereas market cultures are most strongly related
with innovation and financial effectiveness criteria. The primary belief in market
cultures is that clear goals and contingent rewards motivate employees to
aggressively perform and meet stakeholders expectations; a core belief in clan
cultures is that the organizations trust in and commitment to employees facilitates
open communication and employee involvement. These differing results suggest that
it is important for executive leaders to consider the fit, or match, between
strategic initiatives and organizational culture when determining how to embed a
culture that produces competitive advantage. By assessing the current
organizational culture as well as the preferred situation, the gap and direction to
change can be made visible. This can be the first step to changing organizational
culture.

Change

When an organization does not possess a healthy culture, or requires some kind of
organizational culture change, the change process can be daunting. Culture change
may be necessary to reduce employee turnover, influence employee behavior, make
improvements to the company, refocus the company objectives and/or rescale the
organization, provide better customer service, and/or achieve specific company
goals and results. Culture change is impacted by a number of elements, including the
external environment and industry competitors, change in industry standards,
technology changes, the size and nature of the workforce, and the organizations
history and management.

There are a number of methodologies specifically dedicated to organizational

culture change such as Peter Senges Fifth Discipline. These are also a variety of
psychological approaches that have been developed into a system for specific
outcomes such as the Fifth Disciplines learning organization or Directive
Communications corporate culture evolution. Ideas and strategies, on the other
hand, seem to vary according to particular influences that affect culture.

Burman and Evans (2008) argue that it is 'leadership' that affects culture rather
than 'management', and describe the difference.[7] When one wants to change an
aspect of the culture of an organization one has to keep in consideration that this
is a long term project. Corporate culture is something that is very hard to change
and employees need time to get used to the new way of organizing. For companies
with a very strong and specific culture it will be even harder to change.

Prior to a cultural change initiative, a needs assessment is needed to identify and

understand the current organizational culture. This can be done through employee
surveys, interviews, focus groups, observation, customer surveys where appropriate,
and other internal research, to further identify areas that require change. The
company must then assess and clearly identify the new, desired culture, and then
design a change process.
Cummings & Worley (2005, p. 491 492) give the following six guidelines for
cultural change, these changes are in line with the eight distinct stages mentioned
by Kotter (1995, p. 2)3:

1. Formulate a clear strategic vision (stage 1,2 & 3 of Kotter, 1995, p. 2)

In order to make a cultural change effective a clear vision of the firms new
strategy, shared values and behaviors is needed. This vision provides the intention
and direction for the culture change (Cummings & Worley, 2005, p. 490).

2. Display Top-management commitment (stage 4 of Kotter, 1995, p. 2)

It is very important to keep in mind that culture change must be managed from the
top of the organization, as willingness to change of the senior management is an
important indicator (Cummings & Worley, 2005, page 490). The top of the
organization should be very much in favor of the change in order to actually
implement the change in the rest of the organization. De Caluw & Vermaak (2004,
p 9) provide a framework with five different ways of thinking about change.

3. Model culture change at the highest level (stage 5 of Kotter, 1995, p. 2)

In order to show that the management team is in favor of the change, the change
has to be notable at first at this level. The behavior of the management needs to
symbolize the kinds of values and behaviors that should be realized in the rest of
the company. It is important that the management shows the strengths of the
current culture as well, it must be made clear that the current organizational does
not need radical changes, but just a few adjustments. (See for more: (Deal &
Kennedy, 1982; Sathe, 1983; Schall; 1983; Weick, 1985; DiTomaso, 1987)

This process may also include creating committee, employee task forces, value
managers, or similar. Change agents are key in the process and key communicators
of the new values. They should possess courage, flexibility, excellent interpersonal
skills, knowledge of the company, and patience. As McCune (May 1999) puts it,
these individual should be catalysts, not dictators.

4. Modify the organization to support organizational change

The fourth step is to modify the organization to support organizational change.
This includes identifying what current systems, policies, procedures and rules need
to be changed in order to align with the new values and desired culture. This may
include a change to accountability systems, compensation, benefits and reward
structures, and recruitment and retention programs to better align with the new
values and to send a clear message to employees that the old system and culture
are in the past.

5. Select and socialize newcomers and terminate deviants (stage 7 & 8 of Kotter,
1995, p. 2)

A way to implement a culture is to connect it to organizational membership, people

can be selected and terminate in terms of their fit with the new culture (Cummings
& Worley, 2005, p. 491).

Encouraging employee motivation and loyalty to the company is key and will also
result in a healthy culture. The company and change managers should be able to
articulate the connections between the desired behavior and how it will impact and
improve the companys success, to further encourage buy-in in the change process.
Training should be provided to all employees to understand the new processes,
expectations and systems.

6. Develop ethical and legal sensitivity

Changes in culture can lead to tensions between organizational and individual

interests, which can result in ethical and legal problems for practitioners. This is
particularly relevant for changes in employee integrity, control, equitable treatment
and job security (Cummings & Worley, 2005, p. 491).

It is also beneficial, as part of the change process, to include an evaluation process,

conducted periodically to monitor the change progress and identify areas that need
further development. This step will also identify obstacles of change and resistant
employees and to acknowledge and reward employee improvement, which will also
encourage continued change and evolvement. It may also be helpful and necessary
to incorporate new change managers to refresh the process. Outside consultants
may also be useful in facilitating the change process and providing employee
training.
Change of culture in the organizations is very important and inevitable. Culture
innovations is bound to be because it entails introducing something new and
substantially different from what prevails in existing cultures. Cultural innovation [8]
is bound to be more difficult than cultural maintenance. People often resist changes
hence it is the duty of the management to convince people that likely gain will
outweigh the losses. Besides institutionalization, deification is another process that
tends to occur in strongly developed organizational cultures. The organization itself
may come to be regarded as precious in itself, as a source of pride, and in some
sense unique. Organizational members begin to feel a strong bond with it that
transcends material returns given by the organization, and they begin to identify
with in. The organization turns into a sort of clan.

Entrepreneurial culture

Stephen McGuire[9] defined and validated a model of organizational culture that

predicts revenue from new sources. An Entrepreneurial Organizational Culture
(EOC) is a system of shared values, beliefs and norms of members of an
organization, including valuing creativity and tolerance of creative people, believing
that innovating and seizing market opportunities are appropriate behaviors to deal
with problems of survival and prosperity, environmental uncertainty, and
competitors threats, and expecting organizational members to behave accordingly.

Elements

People and empowerment focused

Value creation through innovation and change

Attention to the basics

Hands-on management

Doing the right thing

Freedom to grow and to fail

Commitment and personal responsibility

Emphasis on the future[10]

Critical views

Writers from Critical management studies have tended to express skepticism about
the functionalist and unitarist views of culture put forward by mainstream
management thinkers. While it's not necessarily denying that organizations are
cultural phenomena, they would stress the ways in which cultural assumptions can
stifle dissent and reproduce management propaganda and ideology. After all, it
would be naive to believe that a single culture exists in all organizations, or that
cultural engineering will reflect the interests of all stakeholders within an
organization. In any case, Parker[11] has suggested that many of the assumptions of
those putting forward theories of organizational culture are not new. They reflect
a long-standing tension between cultural and structural (or informal and formal)
versions of what organizations are. Further, it is perfectly reasonable to suggest
that complex organizations might have many cultures, and that such sub-cultures
might overlap and contradict each other. The neat typologies of cultural forms
found in textbooks rarely acknowledge such complexities, or the various economic
contradictions that exist in capitalist organizations.

One of the strongest and widely recognized criticisms of theories that attempt to
categorize or 'pigeonhole' organizational culture is that put forward by Linda
Smircich[citation needed]
. She uses the metaphor of a plant root to represent culture,
describing that it drives organizations rather than vice versa. Organizations are
the product of organizational culture, we are unaware of how it shapes behavior and
interaction (also recognized through Scheins (2002) underlying assumptions) and so
how can we categorize it and define what it is?

Organizational communication perspective on culture

The organizational communication perspective on culture is divided into three areas:

Traditionalism: Views culture through objective things such as stories,

rituals, and symbols
Interpretivism: Views culture through a network of shared meanings
(organization members sharing subjective meanings)
Critical-Interpretivism: Views culture through a network of shared
meanings as well as the power struggles created by a similar network of
competing meanings

There are many different types of communication that contribute in creating an

organizational culture:
 Metaphors such as comparing an organization to a machine or a family
reveal employees shared meanings of experiences at the organization.
Stories can provide examples for employees of how to or not to act in
certain situations.
Rites and ceremonies combine stories, metaphors, and symbols into one.
Several different kinds of rites that affect organizational culture:

Rites of passage: employees move into new roles

Rites of degradation: employees have power taken away
from them
Rites of enhancement: public recognition for an employees
accomplishments
Rites of renewal: improve existing social structures
Rites of conflict reduction: resolve arguments between
certain members or groups
Rites of integration: reawaken feelings of membership in
the organization

Reflexive comments are explanations, justifications, and criticisms of

our own actions. This includes:

Plans: comments about anticipated actions

Commentaries: comments about action in the present
Accounts: comments about an action or event that has
already occurred

Such comments reveal interpretive meanings held by the speaker as well as the
social rules they follow.
Fantasy Themes are common creative interpretations of events that
reflect beliefs, values, and goals of the organization. They lead to
rhetorical visions, or views of the organization and its environment held
by organization members.

Schema

Schemata (plural of schema) are knowledge structures a person forms from past
experiences, allowing the person to respond to similar events more efficiently in
the future by guiding the processing of information. A person's schemata are
created through interaction with others, and thus inherently involve communication.

Stanley G. Harris argues that five categories of in-organization schemata are

necessary for organizational culture:

Self-in-organization schemata: a persons concept of themselves within

the context of the organization, including her/his personality, roles, and
behavior.
Person-in-organization schemata: a persons memories, impressions. and
expectations of other individuals within the organization.
Organization schemata: subset of person schemata, a persons
generalized perspective on others as a whole in the organization.
Object/concept-in-organization schemata: knowledge an individual has
of organization aspects other than of other persons.
Event-in-organization schemata: a persons knowledge of social events
within an organization.

All of these categories together represent a persons knowledge of an organization.

Organizational culture is created when the schematas (schematic structures) of
differing individuals across and within an organization come to resemble each other
(when any one person's schemata come to resemble another person's schemata
because of mutual organizational involvement). This is primarily done through
organizational communication, as individuals directly or indirectly share knowledge
and meanings.

Mergers, organizational culture, and cultural leadership

One of the biggest obstacles in the way of the merging of two organizations is
organizational culture. Each organization has its own unique culture and most often,
when brought together, these cultures clash. When mergers fail employees point to
issues such as identity, communication problems, human resources problems, ego
clashes, and inter-group conflicts, which all fall under the category of cultural
differences. One way to combat such difficulties is through cultural leadership.
Organizational leaders must also be cultural leaders and help facilitate the change
from the two old cultures into the one new culture. This is done through cultural
innovation followed by cultural maintenance.
 Cultural innovation includes:

Creating a new culture: recognizing past cultural differences and

setting realistic expectations for change
Changing the culture: weakening and replacing the old cultures

Cultural maintenance includes:

Integrating the new culture: reconciling the differences between the

old cultures and the new one
Embodying the new culture: Establishing, affirming, and keeping the
new culture

Corporate culture vs. organizational culture

Corporate culture is the total sum of the values, customs, traditions, and meanings
that make a company unique. Corporate culture is often called "the character of an
organization", since it embodies the vision of the companys founders. The values of
a corporate culture influence the ethical standards within a corporation, as well as
managerial behavior.[12]

Senior management may try to determine a corporate culture. They may wish to
impose corporate values and standards of behavior that specifically reflect the
objectives of the organization. In addition, there will also be an extant internal
culture within the workforce. Work-groups within the organization have their own
behavioral quirks and interactions which, to an extent, affect the whole system.
Roger Harrison's four-culture typology, and adapted by Charles Handy, suggests
that unlike organizational culture, corporate culture can be 'imported'. For
example, computer technicians will have expertise, language and behaviors gained
independently of the organization, but their presence can influence the culture of
the organization as a whole. Corporate culture as humorously defined by the
authors of "Death to All Sacred Cows" takes an interesting twist. Beau Fraser,
David Bernstein and Bill Schwab introduce the term 'Sacred Cow' as the ultimate
sin to corporate culture. Their book is dedicated to killing these "fundamental
tenets of commerce by emphasizing that these 'Sacred Cows' "survive by keeping
[13] [14]
everything the same."
Organizational culture and corporate culture are often used interchangeably but it
is a mistake to state that they are the same concept. All corporations are also
organizations but not all organizations are corporations. Organizations include
religious institutions, not-for-profit groups, and government agencies. There is even
the Canadian Criminal Code definition of "organized crime" as meaning "a group
comprised of three or more persons which has, as one of its primary activities or
purposes, the commission of serious offences which likely results in financial gain."
Corporations are organizations and are also legal entities. As Schein (2009), Deal &
Kennedy (2000), Kotter (1992) and many others state, organizations often have
very differing cultures as well as subcultures.

55. Briefly discuss the common dimensions of

organizational culture by citing the context of Islamic
Banks? November-2007
Archive for Dimensions of Organizational Culture
DIMENSIONS OF OC 2

November 14, 2008 at 12:47 pm Filed under Businesss, Dimensions of Organizational

Culture, Finance, Management, Organization, Organizational Climate Tagged
Dimensions of Organizational Culture, Management, Organization

Today, we are discussing in briefly about common dimensions here.

Individual Autonomy: This refers to the individuals freedom to exercise his

or her responsibility. In other words, individual autonomy is the degree to
which employees are free to manage themselves; to have considerable
decision making power; and not to be continually accountable to higher
management.

Position Structure: This refers to the extent of direct supervision,

formalizations and centralization in an organization. In other words, position
structure is the degree to which objectives of the job and methods for
accomplishing it are established and communicated to the individual by
supervisors.

Reward Orientation: This refers to the degree to which an organization

rewards individuals for hard work or achievement. An organization which
orients people to perform better and rewards them for doing so, will have an
OC characterized by high reward orientation.
Consideration, Warmth and Support: This refers to the extent of
stimulation and support received by an individual from other organization
members. In other words, if there is a sense of team spirit among the
members of an organization, the OC is likely to be perceived as considerate,
warm and supportive.

Conflict: This refers to the extent to conflict present between individuals and
the willingness to be honest and open about interpersonal differences.

Progressiveness and Development: This aspect refers to the degree to

which organization conditions foster the development of the employees, allow
scope for growth and application of new ideas methods.

Risk Taking: The degree to which an individual feels free to try out new
ideas and otherwise take risks without fears of reprisal, ridicule or other form
of punishments, indicate the risk-taking dimension of OC. This dimension is
akin to cautious versus venturesome quality of an organization.

Control: This dimension refers to the degree to which control over the
behavior of organizational members is formalized. In a highly bureaucratic
organization, control systems are well defined. In a low- control organization,
most of the controls are self-regulated, i.e., individuals monitor their own
behavior. You can think of this dimension as tightness versus looseness of
an organization.

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DIMENSIONS OF OC-1

November 13, 2008 at 9:30 am Filed under Administration, Businesss, Dimensions of

Organizational Culture, Management, Organization, Organizational Climate Tagged
Dimensions of Organizational Culture, Organization, Organizational Climate,
Organizational culture

You have seen that OC refers to a set of some commonly experienced stable
characteristics of an organization which constitutes the uniqueness of that
organization and differentiates it from other. You might have faced some
difficulty in identifying this set of characteristics because you do not yet know
the various dimensions or factors of OC in which you should look for these
characteristics. In the last two decades, extensive studies have been
conducted which have helped us to identify some key factors of OC. Some of
these common dimensions are listed below:

- Individual Autonomy
- Position Structure
- Reward Orientation
 - Consideration, Warmth and Support
- Conflict
- Progressiveness and Development
- Risk Taking
- Control

These eight dimension account for most of the research findings, but they do
not account for all that we intuitively feel to be present in the Climate or
Culture of an organization. For example, you may perceive an organization
culture to be paternalistic, or a climate to be impersonal. Though the
fourth OC dimension (considerations, warmth and support) may cover both
these different qualities, yet the richness that you find in the two qualities
is not fully reflected in that dimension. However, the identification of these
eight dimension (which are not absolutely independent of each other) do help
us mapping measuring OC.

We will discuss descriptively on each dimensions in next post..

56. According to your view, what should be the major social

responsibilities of any private financial institution in
Bangladesh? November-2007

57. What are the features of Islamic organizing system?

February-2009

58. What is departmentation? State the various basis of

departmentation. February-2009
Departmentation - Presentation Transcript
1. Departmentation
o Departmentation by enterprise function means grouping of activities
according to the functions of an enterprise, such as production , selling and
financing
o Departmentation is a means of dividing a large organization into smaller ,
flexible units

Er.Sartaj Singh Bajwa

2. Advantages
o Increase the efficiency of the organization as various activities are grouped
together
 o Furnishes means of tight control at the top.
o Simplifies training.
o It provides for fixation of standards of performance and ensures effective
control
o Creates opportunities for the departmental heads to take initiative

Er.Sartaj Singh Bajwa

3. Disadvantages
o Reduces coordination between functions as the organization is divided into
various parts
o Responsibilities for profits is at top only.
o Slow adaptation to change in environment.
o It increases the levels of management which is expensive and thus
increases the gap between the top management and the workers
o Departmentation creates difficulties of communication among the various
departments of the organization

Er.Sartaj Singh Bajwa

4. Factors affecting Departmentation

o To get the benefits of specialization
o Control should be effective so as to ensure clear authority and
responsibility
o Coordination should be taken into consideration
o Key activities need to be separated
o Expenses involved in creating separate departments

Er.Sartaj Singh Bajwa

5. Basis Of Departmentation
o Functional Departmentation
o Product wise Departmentation
o Territorial or Geographical Departmentation
o Process wise Departmentation
o Customer wise Departmentation
o Time wise Departmentation

Er.Sartaj Singh Bajwa

6. Functional Departmentation
o Grouping of common or homogeneous activities to form an organization
unit is known as functional departmentation
o Further functions in an organization are divided in two categories basic
and secondary functions
 o Basic functions are those which are necessary for the smooth running of
the business like production ,marketing , finance
o When span of management is too large then further departments are
created within the main departments they take care of secondary functions
o In this case like the basic function is marketing but it may further be
divided into advertisement , sales , market research

Er.Sartaj Singh Bajwa

7. Product wise Departmentation

o Product departmentation involves the grouping together of all the
activities necessary to manufacture a product or product line
o Eg In an automobile organization the departmentation could be car
division , truck division , bus division

Er.Sartaj Singh Bajwa

8. DEPARTMENTATION BY TERRITORY OR GEOGRAPHY

o Departmentation by territory or geography means
o Grouping of activities by area or territory is common in enterprises
operating over wide geographic areas.
o Organizations which are involved in banking , insurance , transportation
o Eg India could be divided into north , south , east , west , central zones
o Further North zone can be divided into Chandigarh , new Delhi , Jalandhar
, Ajmer divisions

Er.Sartaj Singh Bajwa

9. Process Departmentation
o In this processes involved in production or various type of equipments
used are taken as basis of departmentation
o The basic aim to do process departmentation is to achieve economic
benefit
o Eg process departmentation in case of textile organization can be by
dividing the production into spinning , dyeing , weaving , finishing
departments

Er.Sartaj Singh Bajwa

10. Customer wise Departmentation

o Grouping of activities around marketing channels involves making an
organization structure reflect the ways an organization reaches the ultimate
customer
o Advantage of this type is that it focuses on customer who are the ultimate
suppliers of money to the organization
 o Eg in pharmaceutical companies different customers could be doctors ,
hospitals , government , retail stores
o Further it could be wholesale , retail , export

Er.Sartaj Singh Bajwa

11. Time wise Departmentation

o In some organizations where work is performed through day and night ,
the work is divided into shifts
o Thus when an organization may operates on three shifts, three different
departments may exist

Er.Sartaj Singh Bajwa

Departmentation refers to the organizational tool of classifying the activities or operations

of an undertaking into functionalized categories. Departments or sections are created for
all big or major activities of the undertaking to bring the administrative and operational
functions within compact compass of specialization and in the range of managerial
convenience.
Departmentation enables large firms to derive the benefits of small functional
organisation and at the same time departmentation, limits the number of persons to be
managed by inducting them into different departments. Process of departmentations starts
with identification of tasks or duties to be performed, analysis of details of each task,
description of the functions, entrusting the groups of functions to separate heads and
providing them with suitable staff and delineation of scope of authority and responsibility
of departmental heads.
Departments can be on the basis of functions, products, territory, customer, process and
appropriate combination of all. Major factors in Departmentation are taking advantage of
specialization, facilitating control, aid to coordination, balancing the costs, preparation
for departmentation.
In functional departmentation the departmental heads will have to report to the Chief
Executive. Productwise departmentation is where specialization is required in respect of
particular products of the company. Territorial departmentation is good when its purpose
is to encourage local participation in decision-making and to take advantage of certain
economies of localized operation.

59. State the advantages and disadvantages of

deparmentation by function. February-2009
Advantages

a. Increase the efficiency of the organization as various activities are grouped

together
b. Furnishes means of tight control at the top.
c. Simplifies training.
d. It provides for fixation of standards of performance and ensures effective
control
e. Creates opportunities for the departmental heads to take initiative

Disadvantages

f. Reduces coordination between functions as the organization is divided into

various parts
g. Responsibilities for profits is at top only.
h. Slow adaptation to change in environment.
i. It increases the levels of management which is expensive and thus
increases the gap between the top management and the workers
j. Departmentation creates difficulties of communication among the various
departments of the organization

60. Define organization. March-2010

An organization (or organisation see spelling differences) is a social group which

distributes tasks for a collective goal. The word itself is derived from the Greek
word organon, itself derived from the better-known word ergon - as we know
`organ` - and it means a compartment for a particular job.

1862 Diagram of the Federal Government and American Union.

There are a variety of legal types of organizations, including: corporations,

governments, non-governmental organizations, international organizations, armed
forces, charities, not-for-profit corporations, partnerships, cooperatives, and
universities. A hybrid organization is a body that operates in both the public sector
and the private sector, simultaneously fulfilling public duties and developing
commercial market activities. As a result the hybrid organization becomes a
mixture of a government and a corporate organization.

In the social sciences, organizations are the object of analysis for a number of
disciplines, such as sociology, economics, political science, psychology, management,
and organizational communication. The broader analysis of organizations is
commonly referred to as organizational structure, organizational studies,
organizational behavior, or organization analysis. A number of different
perspectives exist, some of which are compatible:

From a process-related perspective, an organization is viewed as an entity is

being (re-)organized, and the focus is on the organization as a set of tasks or
actions.
From a functional perspective, the focus is on how entities like businesses or
state authorities are used.
From an institutional perspective, an organization is viewed as a purposeful
structure within a social context.

In management and organizational studies

Main article: Organizational studies

Management is interested in organization mainly from an instrumental point of view.

For a company, organization is a means to an end to achieve its goals, which are to
create value for its stakeholders (stockholders, employees, customers, suppliers,
community). moreover, (Samson, p 25. 2005) describes organising as the
management function concerned with assigning tasks, grouping tasks into
departments, and allocating resources to departments

In sociology

Sociology can be defined as the science of the institutions of modernity; specific

institutions serve a function, akin to the individual organs of a coherent body. In
the social and political sciences in general, an "organization" may be more loosely
understood as the planned, coordinated and purposeful action of human beings
working through collective action to reach a common goal or construct a tangible
product. This action is usually framed by formal membership and form (institutional
rules). Sociology distinguishes the term organization into planned formal and
unplanned informal (i.e. spontaneously formed) organizations. Sociology analyzes
organizations in the first line from an institutional perspective. In this sense,
organization is a permanent arrangement of elements. These elements and their
actions are determined by rules so that a certain task can be fulfilled through a
system of coordinated division of labor.
An organization is defined by the elements that are part of it (who belongs to the
organization and who does not?), its communication (which elements communicate
and how do they communicate?), its autonomy (which changes are executed
autonomously by the organization or its elements?), and its rules of action
compared to outside events (what causes an organization to act as a collective
actor?).

By coordinated and planned cooperation of the elements, the organization is able to

solve tasks that lie beyond the abilities of the single elements. The price paid by
the elements is the limitation of the degrees of freedom of the elements.
Advantages of organizations are enhancement (more of the same), addition
(combination of different features) and extension. Disadvantages can be inertness
(through co-ordination) and loss of interaction.

Organizational structures
Main article: Organizational structure

The study of organizations includes a focus on optimizing organizational structure.

According to management science, most human organizations fall roughly into four
types:

Pyramids or hierarchies
Committees or juries
Matrix organizations
Ecologies

Pyramids or hierarchies

A hierarchy exemplifies an arrangement with a leader who leads other individual

members of the organization. This arrangement is often associated with
bureaucracy.

These structures are formed on the basis that there are enough people under the
leader to give him support. Just as one would imagine a real pyramid, if there are
not enough stone blocks to hold up the higher ones, gravity would irrevocably bring
down the monumental structure. So one can imagine that if the leader does not have
the support of his subordinates, the entire structure will collapse. Hierarchies were
satirized in The Peter Principle (1969), a book that introduced hierarchiology and
the saying that "in a hierarchy every employee tends to rise to his level of
incompetence."

Committees or juries

These consist of a group of peers who decide as a group, perhaps by voting. The
difference between a jury and a committee is that the members of the committee
are usually assigned to perform or lead further actions after the group comes to a
decision, whereas members of a jury come to a decision. In common law countries,
legal juries render decisions of guilt, liability and quantify damages; juries are also
used in athletic contests, book awards and similar activities. Sometimes a selection
committee functions like a jury. In the Middle Ages, juries in continental Europe
were used to determine the law according to consensus amongst local notables.

Committees are often the most reliable way to make decisions. Condorcet's jury
theorem proved that if the average member votes better than a roll of dice, then
adding more members increases the number of majorities that can come to a
correct vote (however correctness is defined). The problem is that if the average
member is subsequently worse than a roll of dice, the committee's decisions grow
worse, not better: Staffing is crucial.

Parliamentary procedure, such as Robert's Rules of Order, helps prevent

committees from engaging in lengthy discussions without reaching decisions.

Matrix organization
See also: matrix management

This organizational type assigns each worker two bosses in two different
hierarchies. One hierarchy is "functional" and assures that each type of expert in
the organization is well-trained, and measured by a boss who is super-expert in the
same field. The other direction is "executive" and tries to get projects completed
using the experts. Projects might be organized by products, regions, customer
types, or some other schema.

As an example,(this is not reliable) a company might have separate individuals with

overall responsibility for Product X and Product Y, and different individuals with
overall responsibility for Engineering, Quality Control, etc. Individuals responsible
for quality control of project X with therefore have two reporting lines.

Ecologies

This organization has intense competition. Bad parts of the organization starve.
Good ones get more work. Everybody is paid for what they actually do, and runs a
tiny business that has to show a profit, or they are fired.

Companies who utilize this organization type reflect a rather one-sided view of
what goes on in ecology. It is also the case that a natural ecosystem has a natural
border - ecoregions do not in general compete with one another in any way, but are
very autonomous.

The pharmaceutical company GlaxoSmithKline talks about functioning as this type

of organization in this external article from The Guardian.

Organization theories

Among the theories that are or have been most influential are:

Enterprise architecture, is the conceptual model that defines the

coalescence of organizational structure and organizational behavior.
Actor-Network Theory
Agency theory (sometimes called principal - agent theory)
Contingency theory
Complexity theory and organizations
Critical management studies
Economic sociology
Garbage Can Model
Human Relations Studies (going back to the Hawthorne studies, Maslow and
Herzberg)
Labour Process Theory
Marxist organization analysis
Network analysis
New institutionalism and new institutional economics
Organizational culture
 Organization ecology (or demography of organizations)
Scientific management (mainly following Frederick W. Taylor)
social entrepreneurship
Transaction cost economics
Weberian organization theory (refer to Max Weber's chapter on
Bureaucracy in his book 'Economy and Society')

Leadership in organizations
Main article: Leadership

A leader in a formal, hierarchical organization, who is appointed to a managerial

position, has the right to command and enforce obedience by virtue of the
authority of his position. However, he must possess adequate personal attributes to
match his authority, because authority is only potentially available to him. In the
absence of sufficient personal competence, a manager may be confronted by an
emergent leader who can challenge his role in the organization and reduce it to that
of a figurehead. However, only authority of position has the backing of formal
sanctions. It follows that whoever wields personal influence and power can
legitimize this only by gaining a formal position in the hierarchy, with commensurate
authority.[1]

Leadership in formal organizations

An organization that is established as a means for achieving defined objectives has

been referred to as a formal organization. Its design specifies how goals are
subdivided and reflected in subdivisions of the organization. Divisions, departments,
sections, positions, jobs, and tasks make up this work structure. Thus, the formal
organization is expected to behave impersonally in regard to relationships with
clients or with its members. According to Weber's definition, entry and subsequent
advancement is by merit or seniority. Each employee receives a salary and enjoys a
degree of tenure that safeguards him from the arbitrary influence of superiors or
of powerful clients. The higher his position in the hierarchy, the greater his
presumed expertise in adjudicating problems that may arise in the course of the
work carried out at lower levels of the organization. It is this bureaucratic
structure that forms the basis for the appointment of heads or chiefs of
administrative subdivisions in the organization and endows them with the authority
attached to their position.[2]

Leadership in informal organizations

In contrast to the appointed head or chief of an administrative unit, a leader

emerges within the context of the informal organization that underlies the formal
structure. The informal organization expresses the personal objectives and goals of
the individual membership. Their objectives and goals may or may not coincide with
those of the formal organization. The informal organization represents an
extension of the social structures that generally characterize human life the
spontaneous emergence of groups and organizations as ends in themselves. [2]

In prehistoric times, man was preoccupied with his personal security, maintenance,
protection, and survival. Now man spends a major portion of his waking hours
working for organizations. His need to identify with a community that provides
security, protection, maintenance, and a feeling of belonging continues unchanged
from prehistoric times. This need is met by the informal organization and its
emergent, or unofficial, leaders.[1]

Leaders emerge from within the structure of the informal organization. Their
personal qualities, the demands of the situation, or a combination of these and
other factors attract followers who accept their leadership within one or several
overlay structures. Instead of the authority of position held by an appointed head
or chief, the emergent leader wields influence or power. Influence is the ability of
a person to gain cooperation from others by means of persuasion or control over
rewards. Power is a stronger form of influence because it reflects a person's
ability to enforce action through the control of a means of punishment. [1]

61. What are the different influences that affect the

activities of an organization? March-2010

62. How does a banking organization differ from other

service organizations? March-2010
 63. Draw the organizational structure of IBBL: and
elaborate the functional activities of its departmentation.
March-2010

64. What is meant by staffing? March-2010, April-2011

The managerial function of staffing involves manning the organization structure through
proper and effective selection, appraisal and development of the personnels to fill the
roles assigned to the employers/workforce.

According to Theo Haimann, Staffing pertains to recruitment, selection, development

and compensation of subordinates.

Nature of Staffing Function

i) Staffing is an important managerial function- Staffing function is the most
important mangerial act along with planning, organizing, directing and
controlling. The operations of these four functions depend upon the manpower
which is available through staffing function.
ii) Staffing is a pervasive activity- As staffing function is carried out by all mangers
and in all types of concerns where business activities are carried out.
iii) Staffing is a continuous activity- This is because staffing function continues
throughout the life of an organization due to the transfers and promotions that take
place.
iv) The basis of staffing function is efficient management of personnels- Human
resources can be efficiently managed by a system or proper procedure, that is,
recruitment, selection, placement, training and development, providing
remuneration, etc.
v) Staffing helps in placing right men at the right job. It can be done effectively
through proper recruitment procedures and then finally selecting the most suitable
candidate as per the job requirements.
vi) Staffing is performed by all managers depending upon the nature of business,
size of the company, qualifications and skills of managers,etc. In small
companies, the top management generally performs this function. In medium and
small scale enterprise, it is performed especially by the personnel department of
that concern.

65. Describe the importance of staffing in Islamic financial

institutions. March-2010
Staffing is one of the important management functions which is mainly concerned with
proper arrangement and management of the required manpower for the organisation.
After having prepared plans, as well as the structure of organisation for seeking the
objectives, various positions are created.

"Effectiveness is not uni dimensional or one sided. To be effective in work setting people
must do many things well and they as people must derive same value from their efforts.
to have an effective staffing process, it requires as a first step the explicit specification of
exactly what is that people must do well and what they will be offered in reward for
doing it." - Benjamin Schneider

Staff function of the management consists of the following features -

To prepare manpower planning.

To determine manpower requirements of organisation in terms of quantity and
quality.
To make all necessary arrangement for acquiring needed human force through
proper and effective recruitment and selection.
To maintain human force in organisation for a period of time.
To formulating effective labour policies for long period.
To implementing the labour policies in various projects.
To develop manpower to its maximum by providing scientific training and
conducting various development programmes.

Importance of Staffing:

The following are the importance of Staffing -

To fill up the gap between organisational design and human power.

To utilise all physical resources through human resources.

Staffing process and policies play a vital and considerable role specially with regard to
development of executives and non-executives employees.

Effective staffing functions also helps in matching the expenditure incurred in

maintaining human resource and the benefit derived out of it.
Elements of Staffing Process:

The processes involved in staffing may be grouped under the following major heads of

Manpower planning

Job Analysis

Recruitment

Selection

Placement and orientation

Performance Appraisal

Manpower Development - training, promotion and transfers of employees.

What Are The Importance Of Staffing?

Human Capital Management

The term staffing may be defined as the managerial function of hiring and
developing the required personnel to fill in various positions in an organization. This
function involves the determination of the size and categories of staff requirement. It is
also concerned with employing the right type of people and developing their skills
through training. The staffing function focuses on maintaining and improving the
manpower in an organization.

Nature of Staffing: The managerial function of staffing is of continuous nature. The

managers have to give attention to the staffing needs of the organization. The staffing
policy of the organization has to be developed on the basis of long term requirement of
the organization.

Importance of Staffing:

1. Key to other managerial functions. Staffing function is very closely related to other
managerial areas of the business. It greatly influences the direction and control in the
organization. The effectiveness of other managerial functions depends on the
effectiveness of the staffing function.

2. Building healthy human relationships. Staffing function helps to build proper human
relationships in the organization. Smooth human relations is the key to better
communication and co-ordination of managerial efforts in an organization.

3. Human resources development: Skilled and experienced staff is the best asset of a
business concern. The staffing function helps developing this asset for the business. It
inculcates the corporate culture into the staff which in turn ensures smooth functioning of
all the managerial aspects of the business.

Long Term effect: Staffing decisions have long term effect on the efficiency of an
organization. Qualified, efficient and well motivated staff is an asset of the organization.
Staffing function assumes special significance in the context of globalization which
demands high degree of efficiency in maintaining competitiveness.

5. Potential contribution

Staff selection should be based on the ability of the prospective employees to meet the
future challenges that the organization need to address. Therefore the potential
contribution of the staff in their anticipated future roles should also be taken into account
in staff selection.

66. State the necessities of staffing function of

management for an organization like bank. April-2011

67. Write the differences between Line management and

Staff management. April-2011
What's the Difference between Line and Staff
Management?
Line Management or Staff Management? - brainloc
Managers have different titles in various organizations. No matter what the label is, there
is a difference in authority between line and staff management.

A person in a management position might be called a manager, a supervisor, a director,

even a coordinator or some other label that identifies him as a person with authority to
make decisions. There are two basic kinds of management positions: line and staff.

Since the earliest days of establishing organizations, a manager has emerged at each level
or branch of work to be done. This was true in managing farms in the Roman Empire and
managing medieval abbeys. It's still true in the large multinational firms today.

Although there have been many theories about flattening organizations, or about a more
collective, consensual way of operating, there are still two kinds of managers who take
responsibility for ensuring that the work is done. Their relationship is often based on their
understanding of their authority.

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What is Line Management?

The most common of all formal relationships in organizations today is the supervisor-
subordinate one. This line or operational supervisor, whatever his title, has the power and
authority to direct the actions of the subordinate who is accountable for carrying out
certain duties.

The supervisor might use any one or combination of many management styles in working
with his staff, but he will see that there are results. It's those results that produce revenue,
whether it's profit from a business or non-profit grants from the government.

What is Staff Management?

The staff manager or supervisor is in a position that supports line management. He is

usually a specialist of some kind. Examples are the manager of the IT department, and the
director of HR. Managers in these positions do not have the authority to tell the line staff
how to do the work for which the organization exist. Instead, the staff manager or
supervisor is responsible for making sure all the supports are in place so the line staff are
hired, trained, equipped and supported while they carry out the actual operations.
Read This Next
Administrative Employee Overtime: Maybe, Maybe Not!
Basic Management Process Four Functions of Management
Staffing Model for Small Non-Profit Service Organization

Staff management authority is very different from line management authority. While the
line manager makes sure that there is revenue, the staff manager often has to spend that
money to support further operations. This can lead to tensions in the workplace,
especially when there is no clear understanding of the difference in the authority of the
positions.

Relationship Between Line and Staff Management

There are four ways of looking at the relationship a staff manager has with a line
manager.

Prescribe. To do this, a staff manager can prescribe certain procedures in his

specialist area. For example, he can develop and implement recruiting policies
and procedures that are used across the organization. The line manager is
expected to follow those organizational procedures unless he has a solid rationale
for exceptions.
Concur or veto. The staff manager has the right to veto any proposal within his
specialization. For example, a line manager might propose that two of his staff
attend certain management courses. The staff manager of the training section can
concur with or veto this proposal as it is within his specialty.
Be heard. A staff manager has the right, the authority, to participate in the
discussions, if not the decision-making, pertaining to his specialty. For example,
the manage in HR maybe not have a veto vote on a new recruit, but he does have
the right to voice his opinion on the suitability of the candidate.
Be informed. This function authorizes the staff manager to be informed within
certain areas of activity. A common example of this is the position of director of
finance. An operations, line manager has full authority to spend funds as he
pleases within his budget, but he is required to keep the director of finance
informed.

In many organizations, there is a lack of clarity between the authority of the operational,
line manager and that of the staff manager. Often, these authorities appear to overlap.
This is when it is time for senior management to thoroughly review the structure and
activities of the organization to make sure everyone understands his management position
and the authority that goes with it.

Read more at Suite101: What's the Difference between Line and Staff Management? |
Suite101.com http://constancewoloschuk.suite101.com/whats-the-difference-between-
line-and-staff-management-a293793#ixzz1YN61U9OV
 68. Explain in brief the different methods of recruitment.
April-2011
Traditional Recruitment Methods

1. Written job application in response to an advertised position - directly to the

company.
This is the most common method of recruiting. Many people still seem to think that a
written application means a hand written application. If a company does want a
handwritten letter they will say so. Go to Letter writing guide and see an example of an
advertised position and how to set out a letter. See also advanced information on how to
apply for an advertised job at Application Letter - Advertised Job and Job Application Letter - Using
Marketing Techniques

2. Written job applications to recruitment / employment agencies

Treat this the same as a letter to an employer, however, refer to the employer as Your
client as they are a second party in this process.
See Application Letter - Advertised Job

3. Registering with a Job Recruitment / Employment Agencies

Job Recruitment / Employment Agencies are an effective recruitment tool. Agencies
advertise a position on behalf of the employer and conduct the interview to short list
stage. This could be a pool or the best 3-4 applicants.
Recruitment agencies may specialise in in one industry or occupation.

In Australia it is illegal for applicants to pay a recruitment agency to find a job. The
employer pays the fee and there is a trial period. Recruitment Agencies do not get full
payment until the end of the trial period, so they are very selective and good job
references are one of the most important job criteria.
This job search strategy requires less work and allows you to access to job
opportunities you might not have found on your own.
Recruitment or employment agencies specialise only in recruitment.
They generally deal with high demand jobs and often specialise in job areas such
as IT, accountancy and administration.
The recruitment screening standard is high.
Generally Recruitment / Employment Agencies tend to advertise most positions in the
newspaper and through internet job boards or websites such as Seek and CareerOne
(Australia), and Monster (USA). However, if you register personally with these agencies
and present well, with clear employment goals, you may be matched to a job through
their electronic job vacancy database. This is why it is so important to have an
electronically friendly resume, showing key words that dont get altered in the
scanning process. See Online Submissions
Once the jobseeker registers with an agency, they can ring the company if they see a job
they are interested in, and advise them that they have been interviewed and that their
details are on file.

Recruitment processes vary. Before you decide to register with a specific employment
or recruitment agency, phone them first and check their minimum employment
requirements. This may be a car licence, typing speed, computer knowledge or other
specific job criteria. Ask if you can send in your resume. If so, send a cover letter setting
out clearly you employment needs and credentials and ask for an interview. The
recruitment screening standard is high and your application and resume must also be
high.

The disadvantage of this recruitment method is that the agency is working for the
employer, and will need to satisfy all their criteria. Nevertheless, Recruitment
Consultants who have developed a good rapport with a client may ask an employer to
look at a "wildcard' - a person who may not meet all the criteria, but has potential.
You can test your typing speed through employment agencies.

4. Registering with a Job Search Firm

These are more exclusive employment agencies at the top end of the market - mainly
executive recruitment. As part of their hiring strategy Recruitment Consultants
"headhunt" applicants from other firms on behalf of their clients. They often do career
transition programmes for retrenched workers on behalf of companies. Expect some type
of psychological screening test.

5. Labour Hire Companies

Labour hire companies have companies generally meet short to medium term labour
hiring needs in the blue collar job categories. Workers are contracted out and labour hire
companies pay all insurance etc.

This was once a smaller section of the recruitment market. With the change in Industrial
laws and recruitment patterns, business rationalisation and cost cutting, plus the range of
work these companies receive, they are becoming a more attractive and popular
recruitment method and contracts can be ongoing. Some tips for using these agencies:-
Hourly rate will vary as the company take a proportion -so check around.
You need to fill out an application form and supply good referees. Make sure you
take your resume with you to copy from. The agency may also keep your resume
on file.
They generally want people with current driver's licences.
They will want your tax number before they can register you.
You must have a valid working visa
job seekers should ensure that the agency covers insurance, and only use
reputable companies. Since Industrial law changes some labour hire companies
have come under fire regarding workplace legislative requirements. This may
change in the future under proposed new government industrial relations
initiatives.
6. Temporary Staff Recruitment / Employment Agencies
This should be a popular recruitment method yet many job seekers feel
it is too insecure. These agencies can make arrangements to transfer an
employee to the company full time if required (at a fee to employer).
Often companies use agencies to 'trial employees' as they do not have
to deal with Industrial relations issues. Points to consider:-
Many people have been placed in good permanent jobs after
proving themselves.
Often the company will make the approach to the agency to
employ the temporary staff member full time. It is all about
"fitting in" with the company's organisational culture. Usually
this arrangement is considered a 'perfect match' for both the
employer and employee.
Temporary agencies are very selective in their recruitment. job
seekers will have to do a range of work related tests.
job seekers may need to establish themselves and build
credibility with an agency to be selected for some of the better
positions.
A wise jobseeker would take any assignment and use these
placements to build a good employment profile.
Some unemployed people are afraid of the security of accepting
temporary assignments. If they have good skills they should not
be deterred by going down this path.
7. Group recruitment requiring telephone interviews
This recruitment method is used by employment agencies on behalf of
a client and some Government Departments to short list candidates
from a large pool. For example , through public service tests, or the
opening of a new company and in Government the introduction of a
new policy initiative or increase in budget for new substantive
positions). Potential employees will be given a time when someone will
ring them and they will have to answer a series of questions. The
company will generally send an information package showing them
what to expect. Some facts:-
Telephone Interviewing for group recruitment can often screen
out good candidates. Applicants must prepare carefully for these
interviews.
 The interviewer will have a script so that everyone is asked the
same questions.
The interviewer will use a ratings matrix and will give the
applicant a value, or a mark. This will determine if they have
passed the screening process to go on to an interview.
The interviewer needs to be very experienced to be able to
evaluate answers at the same time as asking questions and may
miss a potential match
This is a pretty hard job so the applicant needs to make it easy for the
interviewer, or they may be unfairly rated. Answers need to be
constructed almost the same as in selection criteria writing using
processes used to make a decision. Pro-Active Human Resource
Management can offer a tutorial in this area.Contact us
9. Group recruitment - information sessions
If a company is doing group recruitment they may ask you to attend an information
session if you pass the telephone interview. They may do recruitment testing or simply
get you to play silly games meant as a recruitment assessment technique. I can only say
"good luck". An arsenal of psychology tests are available for use, the main one is to find
out if candidates are team players. If a jobseeker is attending these interview days I
recommend reading up on assessment tests such as team building. Many recruitment
agencies are staffed by people with psychology degrees, and use these tests as they
look impressive and costly and they need to justify their qualifications.

Other recruitment practitioners from the Human Resource Management stream,

including academics, do not believe they have much validity It is a much debated topic.
You can manipulate these tests as most are visual. Google " psychological testing",
"psychometric testing" or recruitment or team building assessment tests, for example.

A very good career assessment tool is Future Proof Your Career Take the test to
see your strengths. Find out where you are coming from in a more positive
environment.

A warning about unscheduled screening calls in response to written applications or

phone applications.

9. Telephone or screening interviews

A screening interview may be conducted legitimately by a
government agency or a new company who are bulk recruiting as
already discussed and you will be advised in advance when this is
to take place. (see above)
There is another type of screening interview that the jobseeker may
not realise is happening. An employer, (and also an employment
agency/recruitment firm), may ring the jobseeker to talk or "chat"
about their application. This is really telephone interviewing.
Consider this as an important screening interview. From this contact
you will either be put on a shortlist for a face-to-face interview, or
your application will be discarded. So if a company/agency phones
you to talk about your application make sure you know what job
they are referring to. Dont be afraid to question them and to
ensure you know the job and the requirements.
If you are not ready to focus on a screening interview ask if you can call
them in 10-15 minutes.
Ensure they know you want to speak to them but you need to refresh your
memory. You can say that you have several jobs you have applied for and
you want to be able to refresh your memory about their requirements.
Look at the job and your application again and ring them back.

So you can see the need to answer the telephone professionally at all times
and keep good records of your job search activities.

10. Applying for jobs requiring selection criteria

If an advertisement states that you should send for the selection criteria you can
be confident that it is a Government or Statutory Authority position or an agency
funded by the Government. If you have any doubts about your suitably you
should ring the contact person to check it out. The package they send out will tell
you how to set out and write the application. This is very difficult if you havent
done it before. It must be done correctly or they will not, and cannot, look at your
application under State and Federal Legislation. Although Pro-Active Human
Resource Management does not generally advertise this service, we do, however,
offer a service to polish up your application.

For comprehensive information on how selection criteria is used see Selection

Criteria before you even look at this method. Note: Graduate recruitment
comes under this category, and the standard of job applications is getter
higher, but could improve.

11. Phone application in response to an advertised position

Generally this recruitment method used by smaller companies. If you are asked to
phone (as opposed to submitting a written application) you must do so
immediately. You will probably be screened by the receptionist who may take job
and personal details. They will tell you that the employer will ring you back. This is
a hit and miss method of recruitment and used by many smaller companies and
very frustrating for job seekers. (See screening interviews)
12. Applications by e-mail to recruitment websites or job boards
The two most well known examples of a job bank are Seek and CareerOne
(Australia) and Monster but other job boards are increasing at a rapid rate such as
Job-is -Job (Australia), an American compoany that is expanding rapidly. When
you use these job boards ensure you use the method if the employer requests. In
todays world everyone is afraid of viruses and will delete any messages they
cannot recognise. Make sure that the subject line states that it is an advertised
position and give the position title. Follow the employers directions.

13. Accepting applications from job seekers cold calling

In the past most smaller employers were impressed by the applicant who
cold called, by visiting the company and leaving their resume. (from my
personal experience as a Consultant). Research confirms a view that has
been held for a long time, that job seekers who cold call are considered to
be highly motivated with a lot of initiative and confidence and really wanted
to work. The extensive use of the internet for looking for work may have
changed this view somewhat, and this is because it is not being done
correctly.

The attitude to cold calling may change and can be spam if you do not do it
correctly. All cold calling letters that come to this office can be classified as
spam, albeit they are not filtered by the ISP unless they are using an
internet provider with a bad reputation. They are thoughtless, meaningless
letters that show how lazy and uninformed the applicant is. They deserve to
be ignored and deleted. If you really want to cold call do it properly. --->
How to cold call

14. Industry/Corporate Websites

A good example is mining companies and larger organisations. Most have
vacancies advertised on their site. So do your Market Research

15. Job Network (Australia)

If you are receiving unemployment benefits in Australia you will know all
about job network. Private companies and community based organisations
(and some private companies) are paid by the Federal Government to help
place unemployed customers/clients.

However, many agencies will take private recruitment contracts for higher
level positions and you do not need to be registered and receiving benefits
to use this service. Job Network generally operates at the mid -lower skill
level, although there are some surprisingly good jobs that come,
depending on where you live. Refer to Job network and check out your
local agency. In the current economic climate the use of these agencies
may increase, as they are free to the employer.

16. Employee referral

This method of recruitment occurs more often than you may think and can be a
traditional method of employment for many companies. The advantage is that an
employee would not recommend someone they know that is not up to the job as it
reflects back on them. Used more in USA than Australia. It was first tried as a
traditional recruitment method by American Express over 30 years ago.

17. Networking
This is a very good job finding technique and is covered separately---->
Networking

69. Distinguish between Recruitment and Selection. April-

2011

Difference Between Recruitment And Selection

Both recruitment and selection are the two phases of the employment process. The differences
between the two are:
1) Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the
organisation WHEREAS selection involves the series of steps by
which the candidates are screened for choosing the most suitable
persons for vacant posts.
2) The basic purpose of recruitments is to create a talent pool of
candidates to enable the selection of best candidates for the
organisation, by attracting more and more employees to apply in the
organisation WHEREAS the basic purpose of selection process is to
choose the right candidate to fill the various positions in the
organisation.
3) Recruitment is a positive process i.e. encouraging more and more
employees to apply WHEREAS selection is a negative process as it
involves rejection of the unsuitable candidates.
4) Recruitment is concerned with tapping the sources of human
resources WHEREAS selection is concerned with selecting the most
suitable candidate through various interviews and tests.
5) There is no contract of recruitment established in recruitment
WHEREAS selection results in a contract of service between the
employer and the selected employee.

70. Do you feel that IBBLs recruitment policy is most

scientific and it caters to the need of modern staff
management? April-2011
 71. As a Manager what steps would you take to get all the
officials of your Branch involved in the activities of the
Branch? April-2011

72. State the different sources of manpower recruitment

with special reference to IBBL. March-2010
Types of Recruitment
Recruitment is of 2 types
1. Internal Recruitment - is a recruitment which takes place within the concern or
organization. Internal sources of recruitment are readily available to an
organization. Internal sources are primarily three - Transfers, promotions and Re-
employment of ex-employees. Re-employment of ex-employees is one of the
internal sources of recruitment in which employees can be invited and appointed
to fill vacancies in the concern. There are situations when ex-employees provide
unsolicited applications also.

Internal recruitment may lead to increase in employees productivity as their

motivation level increases. It also saves time, money and efforts. But a drawback
of internal recruitment is that it refrains the organization from new blood. Also,
not all the manpower requirements can be met through internal recruitment.
Hiring from outside has to be done.

Internal sources are primarily 3

a. Transfers
b. Promotions (through Internal Job Postings) and
c. Re-employment of ex-employees - Re-employment of ex-employees
is one of the internal sources of recruitment in which employees can be
invited and appointed to fill vacancies in the concern. There are
situations when ex-employees provide unsolicited applications also.

2. External Recruitment - External sources of recruitment have to be solicited from

outside the organization. External sources are external to a concern. But it
involves lot of time and money. The external sources of recruitment include -
Employment at factory gate, advertisements, employment exchanges,
employment agencies, educational institutes, labour contractors,
recommendations etc.
a. Employment at Factory Level - This a source of external recruitment in
which the applications for vacancies are presented on bulletin boards
outside the Factory or at the Gate. This kind of recruitment is applicable
generally where factory workers are to be appointed. There are people
who keep on soliciting jobs from one place to another. These applicants
 are called as unsolicited applicants. These types of workers apply on their
own for their job. For this kind of recruitment workers have a tendency to
shift from one factory to another and therefore they are called as badli
workers.
b. Advertisement - It is an external source which has got an important place
in recruitment procedure. The biggest advantage of advertisement is that it
covers a wide area of market and scattered applicants can get information
from advertisements. Medium used is Newspapers and Television.
c. Employment Exchanges - There are certain Employment exchanges
which are run by government. Most of the government undertakings and
concerns employ people through such exchanges. Now-a-days recruitment
in government agencies has become compulsory through employment
exchange.
d. Employment Agencies - There are certain professional organizations
which look towards recruitment and employment of people, i.e. these
private agencies run by private individuals supply required manpower to
needy concerns.
e. Educational Institutions - There are certain professional Institutions
which serves as an external source for recruiting fresh graduates from
these institutes. This kind of recruitment done through such educational
institutions, is called as Campus Recruitment. They have special
recruitment cells which helps in providing jobs to fresh candidates.
f. Recommendations - There are certain people who have experience in a
particular area. They enjoy goodwill and a stand in the company. There are
certain vacancies which are filled by recommendations of such people.
The biggest drawback of this source is that the company has to rely totally
on such people which can later on prove to be inefficient.
g. Labour Contractors - These are the specialist people who supply
manpower to the Factory or Manufacturing plants. Through these
contractors, workers are appointed on contract basis, i.e. for a particular
time period. Under conditions when these contractors leave the
organization, such people who are appointed have to also leave the
concern.

73. What
does SPD signify in the manpower assessment?
March-2010

74. Differentiate between Human Resource Management and

Human Resource development. March-2010
 75. What is motivation? / What do you mean by motivation?
November-2007, April-2008, October-2010

Motivation is the driving force by which humans achieve their goals. Motivation is said
to be intrinsic or extrinsic.[1] The term is generally used for humans but it can also be used
to describe the causes for animal behavior as well. This article refers to human
motivation. According to various theories, motivation may be rooted in a basic need to
minimize physical pain and maximize pleasure, or it may include specific needs such as
eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to
less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality.
Conceptually, motivation should not be confused with either volition or optimism.[2]
Motivation is related to, but distinct from, emotion.

Motivation concepts

[edit] Intrinsic and extrinsic motivation

Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the

task itself, and exists within the individual rather than relying on any external pressure.
Intrinsic motivation has been studied by social and educational psychologists since the
early 1970s. Research has found that it is usually associated with high educational
achievement and enjoyment by students evaluation theory.[clarification needed] Students are
likely to be intrinsically motivated if they:

attribute their educational results to factors under their own control (e.g., the effort
expended),
believe they can be effective agents in reaching desired goals (i.e. the results are
not determined by luck),
are interested in mastering a topic, rather than just rote-learning to achieve good
grades.

Extrinsic motivation comes from outside of the individual. Common extrinsic

motivations are rewards like money and grades, coercion and threat of punishment.
Competition is in general extrinsic because it encourages the performer to win and beat
others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the
individual and trophies are also extrinsic incentives.

Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation. In one study
demonstrating this effect, children who expected to be (and were) rewarded with a ribbon
and a gold star for drawing pictures spent less time playing with the drawing materials in
subsequent observations than children who were assigned to an unexpected reward
condition and to children who received no extrinsic reward Self-determination theory
proposes that extrinsic motivation can be internalised by the individual if the task fits
with their values and beliefs and therefore helps to fulfill their basic psychological needs.
[edit] Self-control

The self-control of motivation is increasingly understood as a subset of emotional

intelligence; a person may be highly intelligent according to a more conservative
definition (as measured by many intelligence tests), yet unmotivated to dedicate this
intelligence to certain tasks. Yale School of Management professor Victor Vroom's
"expectancy theory" provides an account of when people will decide whether to exert self
control to pursue a particular goal.

Drives and desires can be described as a deficiency or need that activates behavior that is
aimed at a goal or an incentive. These are thought to originate within the individual and
may not require external stimuli to encourage the behavior. Basic drives could be sparked
by deficiencies such as hunger, which motivates a person to seek food; whereas more
subtle drives might be the desire for praise and approval, which motivates a person to
behave in a manner pleasing to others.

By contrast, the role of extrinsic rewards and stimuli can be seen in the example of
training animals by giving them treats when they perform a trick correctly. The treat
motivates the animals to perform the trick consistently, even later when the treat is
removed from the process.

[edit] Motivational theories

[edit] Incentive theory

A reward, tangible or intangible, is presented after the occurrence of an action (i.e.

behavior) with the intent to cause the behavior to occur again. This is done by associating
positive meaning to the behavior. Studies show that if the person receives the reward
immediately, the effect is greater, and decreases as duration lengthens. Repetitive action-
reward combination can cause the action to become habit. Motivation comes from two
sources: oneself, and other people. These two sources are called intrinsic motivation and
extrinsic motivation, respectively.

Reinforcers and reinforcement principles of behavior differ from the hypothetical

construct of reward. A reinforcer is any stimulus change following a response that
increases the future frequency or magnitude of that response. Positive reinforcement is
demonstrated by an increase in the future frequency or magnitude of a response due to in
the past being followed contingently by a reinforcing stimulus. Negative reinforcement
involves stimulus change consisting of the removal of an aversive stimulus following a
response. Positive reinforcement involves a stimulus change consisting of the
presentation or magnification of an appetitive stimulus following a response. From this
perspective, motivation is mediated by environmental events, and the concept of
distinguishing between intrinsic and extrinsic forces is irrelevant.
Applying proper motivational techniques can be much harder than it seems. Steven Kerr
notes that when creating a reward system, it can be easy to reward A, while hoping for B,
and in the process, reap harmful effects that can jeopardize your goals.

Incentive theory in psychology treats motivation and behavior of the individual as they
are influenced by beliefs, such as engaging in activities that are expected to be profitable.
Incentive theory is promoted by behavioral psychologists, such as B.F. Skinner and
literalized by behaviorists, especially by Skinner in his philosophy of Radical
behaviorism, to mean that a person's actions always have social ramifications: and if
actions are positively received people are more likely to act in this manner, or if
negatively received people are less likely to act in this manner.

Incentive theory distinguishes itself from other motivation theories, such as drive theory,
in the direction of the motivation. In incentive theory, stimuli "attract", to use the term
above, a person towards them. As opposed to the body seeking to reestablish homeostasis
pushing it towards the stimulus. In terms of behaviorism, incentive theory involves
positive reinforcement: the stimulus has been conditioned to make the person happier.
For instance, a person knows that eating food, drinking water, or gaining social capital
will make them happier. As opposed to in drive theory, which involves negative
reinforcement: a stimulus has been associated with the removal of the punishment-- the
lack of homeostasis in the body. For example, a person has come to know that if they eat
when hungry, it will eliminate that negative feeling of hunger, or if they drink when
thirsty, it will eliminate that negative feeling of thirst.

[edit] Drive-reduction theories

There are a number of drive theories. The Drive Reduction Theory grows out of the
concept that we have certain biological drives, such as hunger. As time passes the
strength of the drive increases if it is not satisfied (in this case by eating). Upon satisfying
a drive the drive's strength is reduced. The theory is based on diverse ideas from the
theories of Freud to the ideas of feedback control systems, such as a thermostat.

Drive theory has some intuitive or folk validity. For instance when preparing food, the
drive model appears to be compatible with sensations of rising hunger as the food is
prepared, and, after the food has been consumed, a decrease in subjective hunger. There
are several problems, however, that leave the validity of drive reduction open for debate.
The first problem is that it does not explain how secondary reinforcers reduce drive. For
example, money satisfies no biological or psychological needs, but a pay check appears
to reduce drive through second-order conditioning. Secondly, a drive, such as hunger, is
viewed as having a "desire" to eat, making the drive a homuncular beinga feature
criticized as simply moving the fundamental problem behind this "small man" and his
desires.

In addition, it is clear that drive reduction theory cannot be a complete theory of behavior,
or a hungry human could not prepare a meal without eating the food before he finished
cooking it. The ability of drive theory to cope with all kinds of behavior, from not
satisfying a drive (by adding on other traits such as restraint), or adding additional drives
for "tasty" food, which combine with drives for "food" in order to explain cooking render
it hard to test.