MBE Hand Outs

ERODE SENGUNTHAR ENGINEERING COLLEGE
DEPARTMENT OF MANAGEMENT STUDIES

BA7031-MANAGERIAL BEHAVIOUR AND EFFECTIVENESS
UNIT 1-DEFINING THE MANAGERIAL JOB
INTRODUCTION:
Management is the art of getting things done through people in formally organized
groups. Management can thus be defined as the art or skill of directing human activities and
physical resources in the attainment of predetermined goals. Management is a wide term. It
carries different meanings depending on the context in which it is used. It is described as an
activity, a process, and a group of people vested with the authority to make decisions.
Management is practiced with the help of five basic functions listed below.
 Planning
 Organizing
 Staffing
 Directing
 Controlling
According to Peter Drucker, Management implies ‘Effectiveness’ and effectiveness involves

a set of practices that can be learned. Such practices include management of time, focusing on
employees and customers, building on strengths, identifying priorities, making effective
decisions
Effectiveness is what executives are being paid for, whether they work as managers who are
responsible for the performance of others as well as their own, or as individual professional
contributors responsible for their own performance only. Without effectiveness there is no
‘performance’. Ability to perform and survive depends increasingly on the effectiveness of the
people. To be reasonably effective it is not enough for the individual to be intelligent, to work
hard or to be knowledgeable. It consists of small number of practices that managers should adopt
the practices that are presented and discussed in this book.
MANAGERS:
The managers are people who perform the functions of management. A manager is a
person who plans, organizes, leads and controls human, financial, physical, and information
K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 1

resources in the efficient and effective pursuit of specifies organizational goals. A manager is
tasked with overseeing one or more employees or departments to ensure these employees or
departments carry-out assigned duties as required. Depending on the size of the company, there
might be a single, dual or triple management layer involved.
According to Peter Drucker, the manager is a dynamic, life giving elements in business.
His function is to co-ordinate efforts, encourage initiatives and keenness, use each man’s ability
and develop a dynamic and devoted team which functions as a single entity. He should be
endowed with delicate and sensitive perceptions so that he understands the changing needs of the
organization and those of organizational members.
MANAGERIAL JOB:
The managerial job is the job that involves the largest number of managers, supervisors,
or other administrators. So the managerial job demands a wide range of skills and a certain set of
attitudes. Desirable skills and attitudes can be developed by training and development.
Managerial jobs will always be in great demand for those who are well qualified. Every company
needs qualified managerial positions that exist within the job market as a whole.
DESCRIPTIVE DIMENSIONS OF MANAGERIAL JOBS:

Generally the major activity of a manager includes managing and interacting with people,
coaching low performers to improve their work, organizing job tasks, settling disputes and
developing career paths for individual employees. They make decisions, allocate resources, and
direct the activities of others to attain goals. They function on a relatively continuous basis to
achieve a common goal or a set of goals.
Descriptive dimensions of managerial jobs are listed below
 Planning
 Organizing
 Staffing
 Directing
 Controlling
Planning:
Planning is the determination of course of action to achieve the desired output. It refers to
deciding in advance that which will be done in the near future. In the business world, the
organization should achieve the objectives. Planning is the systematic thinking about the ways

and means for the accomplishment of pre-determined objectives. In order to achieve the
objectives, the organization plans what is to be done, when it is to be done, how it is to be done,
and by whom it is to be done.
Planning is a constructive review of future needs so that present actions can be adjusted
in view of the established goal. It is deliberate conscious research used to formulate the design
and orderly sequence of actions through which it is expected to reach objectives. Planning should
take place before doing. Most individual or group efforts are made by determining before any
operative action takes place, what shall be done, where, how and who shall do it.
The process of planning involves the following steps.
• Determination of goals or objectives of the organisation
• Forecasting
• Search of alternative courses of action
• Evaluation of various alternatives and formulation of plan
• Formulation of policies and procedures
• Preparation of schedules, programmes and budgets.
Organizing:
Organising is a managerial activity by which the management brings together the
manpower and material resources for the achievement of pre-determined objectives. It is the
process of establishing relationships among the members of the enterprise. The relationships are
created in terms of authority and responsibility. Repetition and duplication of activities is
avoided, thereby reducing operation cost in the organisation.
According to Henry Fayol, “Organisation is of two kinds i.e., organization of the human
factor and organization of the material factor. Organisation of the human factor covers the
distribution of work to those who are best suitable along with the authority and responsibility.
Organisation of the material factor covers utilization of raw materials, plant and machinery, etc.,
The process of organizing involves the following steps.
• Identification of activities required for the achievement of objectives.
• Grouping of activities
• Assignment of jobs to employees
• Delegation of authority to subordinates.

• Establishment of authority-responsibility relationships throughput the organisation.
Staffing:
Staffing refers to the recruitment, selection, training, development and appraisal of
personnel. Every manager is associated with the employment, training and appraisal of human
resources. Personnel department provides the necessary help to managers in performing their
staffing function efficiently.
The sub-functions of staffing are listed below.
• Manpower planning involving determination of the number and the kinds of personnel
required.
• Recruitment for attracting suitable personnel to seek jobs in the organisation.
• Selection of the most suitable persons for the jobs.
• Placement and orientation of employees
• Transfer and promotion of employees.
• Training and development of employees.
Directing:
The actual performance of a work starts with the function of direction. Planning,
organizing and staffing functions are concerned with the preliminary work for the achievement
of organizational objectives. But the direction deals with making the workers learn techniques to
perform the jobs assigned to them. Directing involves determining the course of action, giving
orders and instructions and providing dynamic leadership. It relates to those activities which deal
directly with influencing, guiding, supervising and motivating sub-ordinates in their jobs.
The sub-functions of directing are listed below
• Communication
• Leadership
• Motivation
• Supervision
Controlling:
Controlling is the process of checking the actual performance against the agree standards
with a view to ensuring satisfactory performance. Henry Fayol viewed control as verifying

whether everything occurs in conformity with the plan. Controlling leads to taking corrective
action if the results do not conform to the plans.
The process of controlling involves the following steps.
 Set standards by which performance will be measured.
 Measure performance
 Compare actual performance with standards and identify any deviations
 Determine the reasons for the deviations.
 Take corrective actions if needed.
FUNCTIONAL DIMENSIONS OF MANAGERIAL JOB:

 Production Management - Design of product, Design of production system, Choice of
plant location, Plant layout, Choice of tools, equipments and machinery, Production
planning and control.
 Financial Management - Investment decisions, Working Capital decisions, Financing

decisions, Dividend decisions
 Marketing Management – Product decisions, Pricing decisions, promotion decisions.
 Human Resource Management – Employment, Training and development,

Compensation, Motivation, Working conditions, Personnel records, Employer-employee
relations
 Purchasing and Materials Management- Analysis of requirements, Search for sources

of supply, Price Determination, Placing the purchase order, Checking of invoices,
Inspection of incoming materials, Disposal of scrap, surplus, unserviceable and obsolete
materials. Purchase records, Relations with vendors
 Legal Function- Rules and regulations framed by the government. It gives advice to the
management in case of disputes with the customers, suppliers and government.
 Public Relations Function - Organises publicity campaigns to increase the image and
goodwill of the business ion society. Maintains relations with the press and other public
media.
ROLE DIMENSIONS OF MANAGERIAL JOBS

Managers must wear many different hats in formulating and implementing task activities
related to their positions. In an attempt to understand the diversity of hats managers must wear,
Henry Mintzberg examined managerial activities on a daily basis. His study enabled him to
identify ten different but, coordinated sets of behavior, or roles, that manager assume. These ten
roles can be separated into three general groupings: interpersonal roles, informational roles, and
decisional roles.
Interpersonal roles:
Three of the manager's roles come into play when the manager must engage in
interpersonal relationships. The three roles of figurehead, leader, and liaison are each necessary
under differing circumstances. Adopting one or another of the three interpersonal roles is made
easier by the formal authority the manager obtains from the organization.
Figurehead:
The figurehead role is enacted when activity of a ceremonial nature is required within
the organization. A baseball manager attending a minor league all-star game, the head chef of a
prominent restaurant greeting customers at the door, and the president of a bank congratulating a
new group of trainees are all examples of the figurehead role. While the figurehead role is
routine, with little serious communication and no important decision making, its importance
should not be overlooked. At the interpersonal level, it provides members and non-members

alike with a sense of what the organization is about and the type of people the organization
recruits.
Leader:
The leader role involves the coordination and control of the work of the manager's
subordinates. The leader role may be exercised in a direct or an indirect manner. Hiring, training,
and motivating may all require direct contact with subordinates. However, establishing
expectations regarding work quality, decision-making responsibility, or time commitments to the
job are all outcomes of the leader role that are indirectly related to subordinates.
Liaison:
Quite often, managers are required to obtain information or resources outside their
authority. The liaison role(coordinating) is enacted when managers make contact with other
individuals, who may or may not reside in the organization, in order to complete the work
performed by their departments or work units. An auto assembly plant supervisor may telephone
a tire supplier to determine the amount of inventory available for next week; a prosecuting
attorney may meet with the presiding judge and defense attorney to discuss the use of motions
and evidence in a libel trial; or a college professor may meet with professors in a separate
department on campus to obtain information on a prospective doctoral student. Ultimately, the
liaison role enables a manager to develop a network for obtaining external information which can
be useful for completing current and future work activities.
Informational Roles
Monitor, disseminator, and spokesperson are the three informational roles that a
manager may assume. These informational roles are created as a result of enacting the set of
interpersonal roles already described. A network of interpersonal contacts with both subordinates
and individuals outside the work unit serves to establish the manager as an informational nerve
center of the unit, responsible for gathering, receiving, and transmitting information that
concerns members of the work unit.
Monitor:
A manager assumes the monitor role by continually scanning the environment for
information or activities and events that may identify opportunities or threats to the functioning
of the work unit. Much of the manager's gathering of information is achieved through the
network of contacts that has been established through the interpersonal roles. Hearing small talk
at a banquet about a competitor's planned marketing program, learning through casual

conversation at a ball game about the negative medical evaluation of an unsigned ball player, or
daily reading of a business periodical are all examples of the kinds of information gathering
involved in the monitor role.
Disseminator:
The information a manager gathers as a monitor must be evaluated and transmitted as
appropriate to members of the organization. The transmittal of information by a manager
activates the disseminator role. Privileged information may be disseminated to subordinates,
peers, or superiors in the organization. The manager may inform the marketing vice-president
about the specific marketing strategy a competitor is planning to implement. A baseball manager
may inform the team owner that an impending trade should be canceled because of the
unfavorable medical report on one of the players. Or reading The Wall Street Journal may inform
the manager that a shipping strike is looming and thus enable her to inform subordinates that
temporary layoffs may occur next month.
Spokesperson:
Occasionally, a manager must assume the spokesperson role by speaking on behalf of
the work unit to people inside or outside the organization. This might involve lobbying for
critical resources or appealing to individuals who have influence on activities that affect the work
unit. A top manager asking the board of directors to keep the work unit together during a
reorganization period or a corporate president speaking to a college audience on the role the
company plays in education would both constitute engaging in the spokesperson role.
Decisional Roles
Both interpersonal and informational roles are really preludes to what are often
considered to be a manager's most important set of roles: the decisional roles of entrepreneur,
disturbance handler, resource allocator, and negotiator.
Entrepreneur:
The entrepreneur role comes into action when the manager seeks to improve the work
unit. This can be accomplished by adapting new techniques to fit a particular situation or
modifying old techniques to improve individual or group activity. Managers usually learn of new
or innovative methods through information gathered in the monitor role. As a result, a supervisor
purchases a new kiln which will shorten the drying process for ceramic tiles; a director of a
youth club trains staff in the use of personal computers to increase file access; or a president
establishes a new pension plan to improve employee morale.

Disturbance handler:
Whereas the entrepreneur role establishes the manager as the initiator of change, the
disturbance handler role establishes the manager as a responder to change. Organizations,
unfortunately, do not run so smoothly that managers are never called upon to respond to
unwelcome pressures. In these cases, the manager is required to act quickly to bring stability
back to the organization. A law partner must settle a disagreement among associates in the firm
on who will present a case before a judge; a personnel director must negotiate with striking
employees dissatisfied with the procedures for laying off employees; or a cannery first-line
manager must respond to a sudden shortage of cans used to package perishable fruit because the
supplier has reneged on a contract.
Resource Allocator:
When a manager is placed in the position of having to decide to whom and in what
quantity resources will be dispensed, the resource allocator role is assumed. Resources may
include money, time, power, equipment, or people. During periods of resource abundance, this
role can be easily performed by a manager. In most cases, however, organizations operate under
conditions of resource scarcity; thus, decisions on the allocation of resources can be critical for
the success of the work unit, division, or organization. As a decision maker, the manager must
strive not only to appropriately match resources with subordinates but also to ensure that the
distribution of resources is coordinated to effectively complete the task to be performed. An
office manager must provide secretaries with appropriate equipment to generate and duplicate
documents. A manager of a fast-food restaurant must coordinate work shifts to have the
maximum number of employees working during the lunch hour. Corporate presidents may
provide their administrative assistants with decision-making responsibility for day-to-day
matters.
Negotiator:
In addition to decisions concerning organizational changes, disturbances, and
resources, the manager must enact a negotiator role. The process of negotiation is possible only
when an individual has the authority to commit organizational resources. Hence, as managers
move up the managerial hierarchy and obtain control over more resources, they become more
involved in the negotiator role. For example, the president of a record company may be called in
to discuss terms of a possible contract with a major rock group; a production manager must
negotiate with the personnel department to obtain employees with specialized skills; or a college
dean must negotiate with department heads over course offerings and the number of faculty to be
hired.

MODEL OF MANAGERIAL JOB:
Mintzberg Model:
Mintzberg developed a model of the manager’s job which represents the manager’s job as
a framework of concentric circles. The model represents seven interrelated roles that comprises
the managerial job.
• Conceiving
• Scheduling
• Communicating
• Controlling
• Leading
• Linking
• Doing

At the center of the model is the person in the job who brings set of values, experiences,
knowledge, competencies to the job. All these components combine to form a manager’s
managerial style which drives him to perform his job effectively.
The next circle contains the agenda of work. It involves the role of scheduling. The frame of the
job and agenda of work are surrounded by the behaviour performed by managers inside and
outside the group/unit they manage. Role – communicating and controlling, linking and leading,
doing the tasks. Manager’s job will vary depending on the nature of work and the approach/style
used by the manager.
Important contributions of this model:
• The model reminds us that managers are after all people.

• It reminds us that the job of managing is complex, multifaceted and integrated.
• It reminds us that managers are people who perform certain roles and they are not a
merely a collection of certain competencies and KSA (knowledge, skills, abilities)
Heuristic Model
It’s a function of ability and motivation of managers and opportunity given to them in the
organizational environment to produce output. It involves personal characteristics and
resourcefulness of managers, expectations on the individual by the structural, administrative and
social environments of the organization and Feedback, incentive and rewards identified by
organizational policies and practices.
Heroic Models of the manager

It involves planning, assigning, monitoring and coordinating the activities of the
organization. Participative decision-making is lacking in this model. It is manager centered and
the success relies heavily on control capabilities.
Manager as Master Technician

This model emphasizes more on technical knowledge for success. Individualistic
attention and expectations are given more importance. Such model becomes applicable in
organizations where knowledge of manager is very wide, interpersonal relations minimal and
where subordinates are not committed, co-operative and highly dependent. The problems that
usually crop up in such a situation is that objective solutions are ignored, subordinates
confidence is undermined and organizational systems are overlooked
Manager as Conductor
Here the manager tries to resolve conflicts between managerial and subordinate thinking.
Involvement in any activities of the organization is higher on the part of subordinates. A key
feature of this model is that acceptance of subordinates precedes action. On the contrary there are
also some weakness attached to this model. The first one would be getting subordinates to buy
ideas may be time consuming. Next the subordinates may also vitiate action through resistance at
discussion stage.
Manager as a developer
As per this model subordinates share managerial and task responsibility. Some of the
merits of this model is that crisis management is possible, new opportunities can be assessed
easily, knowledge and expertise sharing becomes possible, facilitates task performance through
job challenge, creates opportunities for personal learning, develops teams with value sharing
responsibility, continuous development of individual skills through work assignments becomes

possible, discussions, training and lastly accomplishing common goal becomes more effective.
This model helps all, expend efforts appropriately.
TIME DIMENSIONS IN MANAGERIAL JOBS:
Time Management
Many of us let the time manage us rather than managing it. Time perhaps is the most
important resource ever known to the human beings. Interestingly this is the only resource,
which is available in equal measure for everyone. Time is the scarcest resource, and unless it is
managed nothing else can be managed. Time is a unique resource. Time cannot be saved; it can
only be spent wisely. Time past is gone forever. It is nothing but getting the best out of our time..
Time is the most valuable resources available to a person. Time is also irreversible.
Major areas that help in the management of time

There are five major areas, which are imperative to improving the management of time:
 Habitual use of time
 Goal setting
 Priorities
 Proper communication
 Procrastination
Habitual use of time

Man is indeed a creature of habit. The way we spent our time is largely habitual. Most
managers do not consciously think about how they are spending their time. Douglass quotes that,
“The way you spend your time determines how you live your life”. Learning to control our time
means changing some of our time habit. Douglass suggests, keeping a record of how you spend
your time for a week or two. At the end of each week, summarize what you did and check the
percentage of time spent on goal-oriented, prioritized activity and how much activity was
aimless, repetitive or of low priority. Summarizing the log will give us a good idea as to whether
we are controlling our own time or our time is being controlled by outside influences or habit.
Goal setting
After making an analysis of how we are presently spending our time, it should be evident
as to how our lives are balanced in relationship to the various aspects, which comprise our lives.
Plan the time by setting goals, goals about what we want to do, divided into long term
and short term goals. Determine the time we plan to devote to each of the goals we set. Emphasis
should be given to two or three major thing we would like to do. The goals should be specific,
subdivided into concrete objectives, as well as realistically attainable.
That is set objectives, which are smart – SMART

 S – Specific
 M- Measurable
 A – Achievable
 R – Realistic
 T – Timed
Priorities
Once the goals are established, we need to set priorities. The process of setting priorities
involves planning. The priorities should be set on a daily basis. By scheduling the time
effectively we learn to avoid over-committing our self. Learning when and how to say “no”
becomes important because our over commitment dilutes our effectiveness. Inability to
concentrate on important goals is often due to devoting a little time to everything rather than
committing a great deal of time to a few things. Setting priorities forces to delegate
responsibilities to others because to make best use of prime time.
Communication
Once habits have been analyzed, goals identified and priorities decided, do not mean that
managers will automatically use their working hours in the most efficient way possible. The idea
of communicating these goals and objectives to the subordinates also, should be in such a way
that the goals planned will actually be carried out. Effective communication will achieve clarity,
understanding, commitment and creativity. For clarity and understanding to take place, the
vertical channels of communication should be open. Subordinates have the right to know what
their supervisors expect of them. They must be given relevant information, promptly, concisely
and directly. Both upward and downward communication, from subordinate to supervisor should
be there. This can be encouraged by the supervisor through ideas presented; by being flexible in
accommodating improvements suggested by subordinates. A constant, efficient communication
network is necessary in order for subordinates to understand the organization’s needs and goals.
Procrastination
Procrastination is a major stumbling block for almost everyone seeking to improve his
use of time. There are three causes, which lead to procrastination:
 Unpleasantness
 Difficult projects
 Indecision
The solution lies in how the day’s activities are scheduled. Those tasks, which we find most
unpleasant and keep putting off, should be scheduled first. That way we can quickly get them out
of the way, leaving you free to concentrate on the rest of the day’s work. The second cause of
procrastination, difficulty, calls for an approach of breaking down the difficult task into smaller
units and focusing on one part at a time. The third cause of procrastination is indecision.

Everyone wants to make the right decision so as to avoid unsatisfactory results. The best thing to
do is gathering all the information available; make the decision, and then move on from there.
Principles of Time Management

 Establish goals, both long-term and short-term
 Principles of brevity
 Principles of habit
 Principles of proper planning
 Principles of prioritization
 Principles of effectiveness
 Principles of equal distribution
 Time estimates
 Delegation of authority
 Proper implementation
 Follow up
Some of the time wasters

Time wasters can be classified as internal time wasters and external time wasters.
Internal time wasters:
 Poor communication-written and verbal
 Procrastination
 Inability to say ‘No’
 Poor prioritizing
 Inadequate planning
 Failure to delegate
External time wasters

 Visitors
 Meetings
 Papers and correspondence
 Telephone
 Procedures and systems
 Travel
 Subordinates
EFFECTIVE JOB BEHAVIOUR:
Ability to inspire others:

This ability may be due to an internal charisma that is an inborn trait and may not be a
learnable factor.
Motivation:
Effective managers are self-motivated. They have a strong desire to lead. They have drive
defined by ambition, achievement, energy, initiative and persistence. Motivated managers have a
definite goal. As self starters, they energize themselves and passionately target the objectives.
Positive Attitude:
A positive approach indicates a healthy body and mind. It helps the manager be realistic,
take periodic stock, be flexible, and stay open to change. It helps to manage stress. Manager can
balance different aspects of his or her life without creating overlaps or discordant notes. And
when the going gets tough, it ensures that manager can stay calm and collected enough to seek
appropriate solutions.
Communication skills:
Managers who want to make the greatest positive impact on their environment, their
teams and the associates must be persuasive communicators. They need to get the messages
across without distortion. On the other hand, they must be deceptive to what others are saying.
Listening skills, powerful oratory and appropriate body language are the hallmarks of a good
communicator
Problem Solving Skills:

An effective manger has developed the patience and ability to look at the problems from
various angles and get them to the cause of the problem and he tries to solve the problem from its
roots rather than the symptoms of the problems.
Ability To Understand Human Behaviour:

A manager must understand the needs, desires and behavior of the subordinates and
show respect for such desires. He is emotionally supportive and careful enough to avoid ego
threatening behavior. He must be credit to the subordinates when their efforts are successful.
Emotional Intelligence:
Today’s manager is under pressure. Manager’s basic intelligence and technical
competency must be complemented with emotional intelligence. Complete managers are
emotionally mature. They have fortitude, patience, resilience and empathy. To grasp and deal
with dynamic situations, they must be good judge of people, and smart enough to maximize their

potential. Emotionally intelligent managers do not discount emotions, rather, they use emotional
intelligence to harness both their own and other people’s feelings to achieve goals.
Willingness To Take Risk:

Routine work, no matter how well done, never makes a manager. Successful managers
always charter the unknown. They use accept and seek new challenges. However, the risk must
be calculated ones and outcomes of actions be reasonably predicted. Should these risks result in
failure, a manager must take full blame and responsibility and not blame on others, even though
they may be operative factors. He must be willing to tolerate frustration and defeat and learn
from these failures.
Dedication To Organisational Goals:

A manager must demonstrate his dedication and commitment to the organization’s
mission, goals, and objectives by hard work and self sacrifice. He must make sure that his
followers fully understand the organizational objectives and are equally dedicated and willing to
work for these objectives.
Intelligence:
A successful manager must have above average knowledge and intelligence. Mental ability to
think precisely, analyses accurately, interprets clearly and concisely are necessary to consider the
problems in the right perspective.
Foresight and vision:

He should have the capability to look forward and anticipate the events. He should have a
high degree of imagination, moral courage, breadth and determination.
Responsibility:
A manager should be responsible person and must be willing to assume responsibility for
the consequences.
Self Confidence:
Effective mangers are self confident. They have to constantly solve problems, make
decisions and ensure others follow them. A person riddled with self-doubt cannot do this.
INEFFECTIVE JOB BEHAVIOUR:
Motivation by Intimidation:

The most common mismanagement approach is motivating employees by instilling fear
in them, fear of getting shouted at, public humiliation, getting fired, etc., Motivating by
intimidating works only in some situations and with certain groups of employees. There are also
some limitations to this method of management. Firstly, the managers have to be presented to
impose it. Most employees stop working as soon as managers are out of sight. The manager will
need to delegate the job of monitoring to others to ensure the work is done. Effective managers
use the people skills to get things done.
Not knowing associates:

Many managers pride themselves in not knowing much about their employees, their
personal lives, fears, hopes, etc., Everybody has a personal life. Whatever happens in the
personal life of an employee affects his work life as well. An effective manger knows enough
about his associates so he understands what motivates them.
Not Being Open:

Such managers believe that there is just one way of doing things right and that one way is their
way. Not being open to employee suggestions and ideas stifles their creativity. This closed
attitude of a manager stops new and better method from being implemented.
Negative Expectations:
Most managers (especially those belonging to the old economy) are convinced that most
employees are untrustworthy, sneaky, and lazy. This belief makes them constantly monitor
employees and also treat them like children. All this in turn affect the employees adversely and
they come to work forcibly, not willingly. Managers of course, get what they expect.
Punishing everybody For the Fault of a Few:

Organisational policies and procedures are based on the past behavior of a small group of
mischievous employees. Many employees end-up paying the price for the fault of a few. Policies
and procedures sometimes hinder employee work and their behavior. Writing policies and
procedures for all employees is the easy way-out. An effective manager, on the other hand,
would confront the miscreants and counsel them.
Not Communicating:
At the time of yearly performance appraisals, many employees are shocked to learn about
some performance standards that they never knew or were counseled about. Ineffective managers
withhold a lot of important information from employees and then use employee non-compliance
to those standards against them in their performance appraisals. These managers conveniently

disown the responsibility of not communicating and blame the associates for not knowing basic
facts.
Viewing The Management As Separate Entities:

Ineffective managers also strongly believe that they alone constitute the management, and
therefore are always right. Employees, according to them, are separate class of no concern to the
organizations where decisions are involved. Most of the ineffective behavior of managers stems
from this belief. Mangers are humans too and are therefore as prone to making errors as anyone
else, and only organizations that admit their management errors stand a chance of survival
because they correct them. Ineffective managers fail to see the synergistic relationship between
the management and employees. This synergistic relationship is required for the success of any
organisation.
FUNCTIONAL DIFFERENCES IN MANAGERIAL JOB BEHAVIOUR:
(i)Financial Managers:
A financial manager is responsible for providing financial advice and support to clients
and colleagues to enable them to make sound business decisions. Clear budgetary planning is
essential for both the short and long term, and companies need to know the financial implications
of any decision before proceeding. In addition, care must be taken to ensure that financial
practices are in line with all statutory legislation and regulations. Financial managers may also be
known as financial analysts or business analysts.
Typical work activities

 Providing and interpreting financial information;
 Monitoring and interpreting cash flows and predicting future trends;
 Analyzing change and advising accordingly;
 Formulating strategic and long-term business plans;
 Researching and reporting on factors influencing business performance;
 Analyzing competitors and market trends;
 Developing financial management mechanisms that minimize financial risk;
 Conducting reviews and evaluations for cost-reduction opportunities;
 Managing a company's financial accounting, monitoring and reporting systems;

 Liaising with auditors to ensure annual monitoring is carried out;
 Developing external relationships with appropriate contacts, e.g. auditors, solicitors,

bankers and statutory organisations such as the Inland Revenue;
 Producing accurate financial reports to specific deadlines;
 Managing budgets;
 Arranging new sources of finance for a company's debt facilities;
(ii)Marketing Managers:
As the name suggests, a marketing manager is an appointed supervisor of a company’s
marketing department. He/she is assigned the crucial job of creating a demand for the product /
service in the market which will generate a rise in the company’s sales and in turn, provide the
necessary revenue (and profit) needed to keep the organization running. As a marketing
manager, one is involved with creating a market for the specific product / service that the
company provides through collaboration with other departments of the institution such as
engineering and manufacturing.

 Monitoring and analyzing market trends
 Studying competitors' products and services
 Exploring ways of improving existing products and services, and increasing profitability
 Identifying target markets and developing strategies to communicate with them
 Preparing and managing marketing plans and budgets
 Managing the production of promotional material
 Liaising with other internal departments such as sales and distribution
 Producing reports to monitor results
 Presenting findings and suggestions to company directors or other senior managers
 Travelling to trade shows, conferences and sales meetings
 Supporting and managing a marketing team.

(iii) Production Managers:
A production manager is involved with the planning, coordination and control of
manufacturing processes. They ensure that goods and services are produced efficiently and that
the correct amount is produced at the right cost and level of quality.

 Overseeing the production process, drawing up a production schedule;
 Ensuring that the production is cost effective;
 Making sure that products are produced on time and are of good quality;
 Working out the human and material resources needed;
 Drafting a timescale for the job
 Estimating costs and setting the quality standards
 Monitoring the production processes and adjusting schedules as needed
 Being responsible for the selection and maintenance of equipment
 Monitoring product standards and implementing quality-control programmes
 Liaising among different departments, e.g. Suppliers, managers
 Working with managers to implement the company's policies and goals
 Ensuring that health and safety guidelines are followed
 Supervising and motivating a team of workers
 Reviewing worker performance
 Identifying training needs.
(iv)Human Resources Managers:

Human resources managers develop, advise on and implement policies relating to the
effective use of personnel within an organisation. Their aim is to ensure that the organisation
employs the right balance of staff in terms of skills and experience, and that training and

development opportunities are available to employees to enhance their performance and achieve
the employer's business aims.

 Liaising with a wide range of people involved in policy areas such as staff performance
and health and safety;
 Recruiting staff - this includes developing job descriptions and person specifications,
preparing job adverts, checking application forms, short listing, interviewing and
selecting candidates;
 Developing and implementing policies on issues such as working conditions,

performance management, equal opportunities, disciplinary procedures and absence
management;
 Advising on pay and other remuneration issues, including promotion and benefits;
 Undertaking regular salary reviews;
 Administering payroll and maintaining employee records;
 Interpreting and advising on employment law;
 Dealing with grievances and implementing disciplinary procedures;
 Planning, and sometimes delivering, training, including inductions for new staff;
(v)Research and Development Managers:

A Research and Development Manager creates and develops products in accordance with market
demands.

 Researching and developing new or improved product lines;
 Bringing these new products and processes to an industrial scale;

 Developing and modifying the manufacturing and processing plant that produces the
products;
 Designing and commissioning new plant.
LEVEL DIFFERENCES IN MANAGERIAL JOB BEHAVIOUR:

Most organizations have three management levels: lower-level, middle-level, and top-
level managers. These managers are classified in a hierarchy of authority, and perform different
tasks. In many organizations, the number of managers in every level resembles a pyramid. Each
level is explained below in specifications of their different responsibilities and likely job titles.
Top-level management:
Top level management consists of mangers at the highest level in the management
hierarchy. It consists of Board of directors, Chief executive and department heads. They are
responsible for controlling and overseeing the entire organization. They set a tone at the top and
develop strategic plans, company policies, and make decisions on the direction of the business.
In addition, top-level managers play a significant role in the mobilization of outside resources
and are accountable to the shareholders and general public.
Helpful skills of top management vary by the type of organization but typically include a
broad understanding competition, world economies, and politics. In addition, the CEO is
responsible for executing and determining (within the board's framework) the broad policies of
the organization. Executive management accomplishes the day-to-day details, including
instructions for preparation of department budgets, procedures, schedules; appointment of middle
level executives such as department managers; coordination of departments; media and
governmental relations; and shareholder communication. . The success or failure of the
organisation largely depends on their efficiency and decision making.
Functions of top-level management:

• Setting out general objectives and policies of the business.
• Laying down guidelines for the departmental heads.
• Organising the business into various departments for the efficient accomplishment of
goals.
• Reviewing the work of executives at different levels
• They determine the objectives, policies and plans of the organisation.

• They mobilizes (assemble and bring together) available resources.
• The top level management does mostly the work of thinking, planning and deciding.
Therefore, they are also called as the Administrators and the Brain of the organisation.
• They spend more time in planning and organising.
• They prepare long-term plans of the organisation which are generally made for 5 to 20
years.
Middle-level management:
The middle level management consists of the Departmental Heads (HOD), Branch
Managers, and the Junior Executives. The Departmental heads are Finance Managers, Purchase
Managers, etc. The Branch Managers are the head of a branch or local unit. The Junior
Executives are Assistant Finance Managers, Assistant Purchase Managers, etc. The Middle level
Management is selected by the Top Level Management. They are accountable to the top
management for their department's function. They devote more time to organizational and
directional functions.
Functions of middle level management:

 Middle level management gives recommendations (advice) to the top level management.
 They executes (implements) the policies and plans which are made by the top level
management.
 They co-ordinate the activities of all the departments.
 They also have to communicate with the top level management and the lower level
management.
 They spend more time in co-coordinating and communicating.
 They prepare short-term plans of their departments which are generally made for 1 to 5
years.
 The middle Level Management has limited authority and responsibility. They are
intermediary between top and lower management. They are directly responsible to the
chief executive officer and board of directors.
 Require more managerial and technical skills and less conceptual skills.

Lower level management:
It consist of supervisors, section leads, foremen, etc. They focus on controlling and
directing. They usually have the responsibility of assigning employees tasks, guiding and
supervising employees on day-to-day activities, ensuring quality and quantity production,
making recommendations, suggestions, and up channeling employee problems, etc.
Functions of lower level management:

 Lower level management directs the workers / employees.
 They develop morale in the workers.
 It maintains a link between workers and the middle level management.
 They guide the workers about work procedure.
 They arrange for necessary tools, equipments, materials, etc., for the workers.
 They provide on-the-job training to the workers.
 They solve the problems of the workers.
 Communicate the problems of workers to higher levels
 The lower level management informs the workers about the decisions which are taken by
the management. They also inform the management about the performance, difficulties,
feelings, demands, etc., of the workers.
 They spend more time in directing and controlling.
 The lower level managers make daily, weekly and monthly plans.
 They have limited authority but important responsibility of getting the work done from
the workers. They regularly report and are directly responsible to the middle level
management.
 Along with the experience and basic management skills, they also require more technical
and communication skills.

UNIT 2-DESIGNING THE MANAGERIAL JOB
INTRODUCTION:
Human resources are the most important assets of an organization. The success or failure
of an organization is largely dependent on the caliber of the managers and employees working
therein. Without positive and creative contribution from the managers, the organization cannot
progress and prosper. In order to achieve the goals or perform the activities of an organization,
we need to identify and recruit managers with requisite skills, qualifications and experience.
While doing so, the present as well as the future requirement should be kept in mind.
IDENTIFYING MANAGERIAL TALENT:

There's no shortage of advice about finding and attracting the best people to work for you. Or
even about scouring your own organization to identify top performers within the ranks. My
experience in a variety of frontline, supervisory, and other positions has taught me that important
as both of those endeavors are, it's even more vital to look within individual employees for
hidden strengths, especially at times when hiring and promotions are on hold. In short, plumb the
depths of each person you currently manage to fish out the talents that lurk beneath. Here's what
I've seen work:
1. Turn a compliment into an interview:

When an employee does an excellent job, don't merely praise her. Pinpoint the strengths
of her accomplishment and ask her how she did it -- in other words, to share her process. The
interview will bring to consciousness -- both yours and hers -- insights that can be transferred
to new tasks. Depending on the specifics, you might even ask her to give a presentation about
her techniques or to train others in her methods.
2. Analyze how people think, not just what they do:

Performance assessments rightly focus on the achievement of goals and other measurable
markers of success. However, what's often behind such accomplishments is a way of thinking,
particular to an individual, that made success possible. Describe those habits of mind in the
employee's next evaluation. For example, "Lee always gathers all the relevant data, studies them
carefully, and arrives at a solution that emerges from the facts rather than trying to fit them to a
preconceived idea." Articulating this dimension of how Lee's mind works will help you -- and

Lee -- identify the other projects that require his inductive talents. It'll also show him that you
truly understand the value of his contributions.
3. Ask for the reasons behind preferences:

Good managers know what their individual employees like to do (what tasks they enjoy,
which projects motivate them). Great managers find out why someone has those preferences --
i.e., which project characteristics are the root sources of fulfillment. That kind of knowledge
helps a manager strategically match an employee with a project, taking into account both the
essence of the work and the essence of the person rather than just the category or domain where
there appears to be a synergy. For example, Rosa might have enjoyed that customer-feedback
project not because she likes working with surveys but because she has a strong affinity for the
product that was being evaluated. Her next assignment should be related to that product, not a
survey on a different product
RECRUITMENT
Recruitment is the process of searching the candidates for employment and stimulating
them to apply for jobs in the organisation.
Recruitment of candidates is the function preceding the selection, which helps create a
pool of prospective employees for the organisation so that the management can select the right
candidate for the right job from this pool. The main objective of the recruitment process is to
expedite the selection process.
Recruitment is a continuous process whereby the firm attempts to develop a pool of
qualified applicants for the future human resources needs even though specific vacancies do not
exist. Usually, the recruitment process starts when a manger initiates an employee requisition for
a specific vacancy or an anticipated vacancy.
Purpose & Importance of Recruitment:

 Attract and encourage more and more candidates to apply in the organisation.
 Create a talent pool of candidates to enable the selection of best candidates for the
organisation.
 Determine present and future requirements of the organization in conjunction with its
personnel planning and job analysis activities.
 Recruitment is the process which links the employers with the employees.
 Increase the pool of job candidates at minimum cost.
 Help increase the success rate of selection process by decreasing number of visibly under
qualified or overqualified job applicants.
 Help reduce the probability that job applicants once recruited and selected will leave the
organization only after a short period of time.

 Meet the organizations legal and social obligations regarding the composition of its
workforce.
 Begin identifying and preparing potential job applicants who will be appropriate
candidates.
 Increase organization and individual effectiveness of various recruiting techniques and
sources for all types of job applicants
Recruitment Process:
The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organisations. Recruitment process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interviews and requires many resources
and time.
A general recruitment process is as follows:
 Identifying the vacancy:

 Posts to be filled
 Number of persons
 Duties to be performed
 Qualifications required
 Preparing the job description and person specification.
 Locating and developing the sources of required number and type of employees
(Advertising etc).
 Short-listing and identifying the prospective employee with required characteristics.
 Arranging the interviews with the selected candidates.
 Conducting the interview and decision making
Factors Affecting Recruitment:
Recruitment policy of an organization is affected by various factors. These factors may be

divided into dimensions:- internal factors and external factors .
1. Internal Factors
For the internal mechanism of the organization, some of internal factors that affect recruitment
are as follows:
i. Size of the organization

Recruitment process is affected by the size of the organization to a large extent.
Experience suggests that larger organizations recruit more candidates than small ones. Large
organizations find recruitment less problematic than small organizations.

ii. Recruiting Policy
The recruitment policy of the firm also affects the recruitment process. This policy is
concerned with candidates from outside the organization, whereas others want to recruit from
internal sources.
iii. Image of the organization

Image or goodwill of the organization also affects the recruitment. Organizations having
good image can attract potential and competent candidates to a large extent. Good public
relation, rendering public services, etc. help to enhance the image and reputation of the
organization.
iv. Image of job

Jobs having good image in terms of better remuneration, working condition, promotion,
career development opportunities etc can attract the potential and qualified candidates to a large
extent.
2. External Factors
External factors are concerned with the environmental changes that will take place in the
external environment of organization. Some of the external factors that affect recruitment policy
are as follows:
i. Demographic factors
A demography is the study of human population in terms of age, sex, occupation, religion,
composition, ethnicity etc. The demographic factors have profound influence on recruitment
process.
ii. Labor market

Labor market constitutes the force of demand and supply of labor of particular importance. For
instance, if demand for a particular skill is high relative to its supply, the recruitment process
evolves more efforts. Contrary to it, if supply is more than demand, the recruitment process will
be easier.
iii. Unemployment situations

Unemployment rate of particular area is yet another influencing factor of recruitment process. If
the unemployment rate is high, the recruitment process will be simpler and vice versa.
iv. Social and political environment

The forces of social and political environment also influence recruitment policy. For instance,
the change in government can have a direct impact upon recruitment policy of the company due
to change in government rules and regulations.
v. Legal considerations
Legal considerations with regard to employment provision for under-privileged castes etc. will
have a positive impact on recruitment policy of the organization.
SOURCES OF RECRUITMENT:
Internal Sources:
1. Promotions
It refers to promoting or upgrading an employee who is already existed in the pay roll
and contributed for organizational performance. It is done by shifting an employee to a higher
position with high responsibilities, facilities, status and pay. Usually, many companies fill higher
job vacancies by promoting employees who are considered fit for such positions. This is due to
fact that it has a great psychological impact over other employees for their motivation towards
better performance.
2. Transfers
It is an alternative technique to promotion. Under it, employees are internally recruited
through transfer from one work place to another. It means, transfer refers to the process of
interchanging the job duties and responsibilities of employees from one place to another or from
one department to another. It involves shifting of people from one job to another without any
promotion in their position or grade. It is a good source of generating qualified employees from
over-staffed departments.
3. Job Posting
Job posting is an open invitation to all employees in an organization to apply for the
vacant position. It provides an equal opportunity to all employees currently working in the
organization. Today it has become a very common practice in many organizations across the
world. Under this, vacancy announcement is made through bulletin boards or in lists available to
all employees. Interested employees, then apply for the post being advertised. In this way, it has
become one of the cost saving techniques of recruitment.
4. Employee Referrals
Employee referral is recruiting new people based on the reference of current employee.
Under this method, a candidate is appointed on the recommendation of some currently working
employees. Usually this is nomination by supervisors. It is effective generally particularly to find
critically skilled candidate for an organization. It has been a major source of new hires at many
levels including professionals. It can be a good method of internal recruitment when employees
recommend a successful candidate. However, it may be influenced by the tendency of
developing good prospects for their families and friends in the organization.

Merits of Internal Sources
 It is time saving, economical, simple and reliable.
 There is no need of induction training because the candidate already knows everything
about the organisation, the work, the employee, the rules and regulations, etc.
 It motivates the employees of work hard in order to get higher jobs in the same
organisation.
 It increases the morale of the employees and it improves the relations in the organisation.
 It reduce executive turnover.
 It develops loyalty and a sense of responsibility.
Demerits of Internal Sources

 It prevents new blood from entering the organisation.
 New blood brings innovative ideas, fresh thinking and dynamism into the organisation.
 It has limited scope because it is not possible to fill up all types of vacancies from within
the organisation.
 The position of the person who is promoted or transferred will be vacant.
 There may be bias or partiality in promoting or transferring persons from within the
organisation.
 Those who are not promoted will be unhappy.
 The right person may be promoted or transferred only if proper confidential reports of all
employees are maintained. This involves a lot of time, money and energy.
External sources:
Professional or Trade Associations :
Many associations provide placement service to its members. It consists of compiling job
seeker’s lists and providing access to members during regional or national conventions. Also, the
publications of these associations carry classified advertisements from employers interested in
recruiting their members. These are particularly useful for attracting highly educated,
experienced or skilled personnel. Also, the recruiters can zero on in specific job seekers,
especially for hard-to-fill technical posts.
Advertisements :
It is a popular method of seeking recruits, as many recruiters prefer advertisements
because of their wide reach. Want ads describe the job benefits, identify the employer and tell
those interested how to apply. Newspaper is the most common medium but for highly
specialized recruits, advertisements may be placed in professional or business journals.

Advertisements must contain proper information like the job content, working conditions,
location of job, compensation including fringe benefits, job specifications, growth aspects, etc.
The advertisement has to sell the idea that the company and job are perfect for the candidate.
Recruitment advertisements can also serve as corporate advertisements to build company’ image.
It also cost effective.
Employment Exchanges :
Employment Exchanges have been set up all over the country in deference to the
provision of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959. The
Act applies to all industrial establishments having 25 workers or more each. The Act requires all
the industrial establishments to notify the vacancies before they are filled. The major functions of
the exchanges are to increase the pool of possible applicants and to do the preliminary screening.
Thus, employment exchanges act as a link between the employers and the prospective
employees. These offices are particularly useful to in recruiting blue-collar, white collar and
technical workers.
Campus Recruitments:
Colleges, universities, research laboratories, sports fields and institutes are fertile ground
for recruiters, particularly the institutes. Campus Recruitment is going global with companies
like HLL, Citibank, HCL-HP, ANZ Grindlays, L&T, Motorola and Reliance looking for global
markets. Some companies recruit a given number of candidates from these institutes every year.
Campus recruitment is so much sought after that each college; university department or institute
will have a placement officer to handle recruitment functions. However, it is often an expensive
process, even if recruiting process produces job offers and acceptances eventually. A majority
leave the organization within the first five years of their employment. Yet, it is a major source of
recruitment for prestigious companies.
Walk-ins, Write-ins and Talk-ins:

The most common and least expensive approach for candidates is direct applications, in
which job seekers submit unsolicited application letters or resumes. Direct applications can also
provide a pool of potential employees to meet future needs. From employees’ viewpoint, walk-
ins are preferable as they are free from the hassles associated with other methods of recruitment.
While direct applications are particularly effective in filling entry-level and unskilled vacancies,
some organizations compile pools of potential employees from direct applications for skilled
positions. Write-ins are those who send written enquiries. These jobseekers are asked to
complete application forms for further processing. Talk-ins involves the job aspirants meeting
the recruiter (on an appropriated date) for detailed talks. No application is required to be
submitted to the recruiter.
Contractors :
They are used to recruit casual workers. The names of the workers are not entered in the
company records and, to this extent; difficulties experienced in maintaining permanent workers
are avoided.
Consultants :
They are in the profession for recruiting and selecting managerial and executive
personnel. They are useful as they have nationwide contacts and lend professionalism to the
hiring process. They also keep prospective employer and employee anonymous. However, the
cost can be a deterrent factor.
Head Hunters :
They are useful in specialized and skilled candidate working in a particular company. An
agent is sent to represent the recruiting company and offer is made to the candidate. This is a
useful source when both the companies involved are in the same field, and the employee is
reluctant to take the offer since he fears, that his company is testing his loyalty.
Radio, Television and Internet:

Radio and television are used to reach certain types of job applicants such as skilled
workers. Radio and television are used but sparingly, and that too, by government departments
only. Companies in the private sector are hesitant to use the media because of high costs and also
because they fear that such advertising will make the companies look desperate and damage their
conservative image. However, there is nothing inherently desperate about using radio and
television. It depends upon what is said and how it is delivered. Internet is becoming a popular
option for recruitment today. There are specialized sites like naukri.com. Also, websites of
companies have a separate section wherein; aspirants can submit their resumes and applications.
This provides a wider reach.
Competitors:
This method is popularly known as “poaching” or “raiding” which involves identifying
the right people in rival companies, offering them better terms and luring them away. For
instance, several executives of HMT left to join Titan Watch Company. There are legal and
ethical issues involved in raiding rival firms for potential candidates. From the legal point of
view, an employee is expected to join a new organization only after obtaining a ‘no objection
certificate’ from his/ her present employer. Violating this requirement shall bind the employee to
pay a few months’ salary to his/ her present employer as a punishment. However, there are many
ethical issues attached to it.
Mergers and Acquisitions:

When organizations combine, they have a pool of employees, out of whom some may not
be necessary any longer. As a result, the new organization has, in effect, a pool of qualified job
applicants. As a result, new jobs may be created. Both new and old jobs may be readily staffed
by drawing the best-qualified applicants from this employee pool. This method facilitates the
immediate implementation of an organization’s strategic plan.
Merits of External Sources:

 It encourages young blood with new ideas to enter the organisation.
 It offers wide scope for selection. This is because a large number of suitable candidates
will come for the selection process.
 There are less chances of bias or partiality.
 There is no need to maintain confidential records.
Demerits of External Sources:

 It is very costly. This is because advertisements, test, medical examination etc., has to be
conducted.
 It is very time consuming. This is because the selection process is very lengthy. It may
not develop loyalty among the existing managers.
 The existing managers may leave the organisation if outsiders are given higher post.
SELECTION:
Selection can be defined as process of choosing the right person for the right job from a
pool of different candidates who applied for a certain job.
Selection procedure/ process:

There is no hard and fast rule regarding the steps involved in the process of selection. The
number of selection steps depends upon many factors like the size of the organization, level of
job, nature of job, philosophy of management, availability of time, number of applicants, etc.
Some organizations follow a long chain of steps, eliminating unsuitable candidates at every step,
finally left with the candidates who are to be employed on the other hand, some organizations
select their employees just in one go through ‘Walk-in-interviews’. Large organizations, usually
consider the following steps in the process of selection:
1. Application Blank
An application blank is a columnar Performa which constrains information like address,
physical characteristics, educational qualifications, experience, necessary personal information,
references, etc. On the basis of information collected from the application blank, should be
simple and should not contain unnecessary questions.
2. Preliminary Interview
This interview is a brief interview in which candidates external personality and speech
skills are adjudged. Some employers would require the candidates to undergo the remaining

selection formalities if they find that candidates have a good personality and that they can
communicate well.
3. Selection Tests:
Many organisations hold different kinds of selection tests to know more about the
candidates or to reject the candidates who cannot be called for interview. Selection tests
normally supplement the information provided in the application forms. Such forms may contain
factual information about the candidates. Selection tests may give information about their
aptitude, interests, personality,etc., which cannot be known by the application forms.
4. Interview
In an interview, the interviewer puts oral questions to the prospective employees in order
to judge whether they are suitable for the job or not. There are no hard and fast rules of
interviewing candidates interviews, in general, can be conducted in the following ways.
Structured or Patterned Interview:
In such an interview, different sets of questions, having the same pattern and with same
different level, are framed in advance. Different candidates are asked different series of
questions. Each series, having the same pattern and same difficulty level brings about objectivity
in the interview.
Unstructured or Non- directive Interview:
In this interview, questions to be asked are not planned in advance. Questions pertaining
to the job are asked and candidates are expected to respond freely to show their ability for the
job.
Stress Interview:
This interview is held to note how thick skinned the candidate is. The candidates are
asked awkward question and it is seen how they react to such questions and it is seen how they
react to such questions. If they do not lose their balance of mind, they prove their worth as
suitable candidates.
Group Interview.
In this interview, a number of candidates face the interview committee together. The
candidates are asked to opine on an issue or they are asked to discuss a topic. When the
candidates respond and give reasons and counter-reasons, their ability to communicate, presence
of mind, expression, etc, is judged by the interviewers.
5. Reference
References are generally required to inquire about the conduct of these persons who have
been found suitable in the interviews and tests. Reference can be collected from the previous
employers, schools or colleges last attended or from any the reliable source. Before forming a
balance opinion, it is necessary to inquire three to five persons about the conduct of the
prospective employee.
6. Physical Examination
A person should be physically fit for the job for which he she is being considered.
Physical examination is arranged for candidates who have been placed in the selection list. A
candidate suffering from serious diseases, like heart trouble or tuberculosis, is rejected. It is also
seen that the candidate has a good state of health and that he possesses the general physical
characteristics required for the job. The task of physical examination may be handed over to
some reliable medical agency- public or private. In many cases, the organization employed a
doctor who undertakes the work of medical examination.
7. Job offer
The candidates who have been found medically fit are given the job offer, such an offer,
generally, contains the date by which the candidates should join. It also contains other
instructions about the agreement to take place between the candidates and the enterprise.
8. Employment Contract
The selected candidates have to enter into an agreement with the employers, like the job-
emoluments, earning of increments, leave rules, work rules, etc
Selection Tests:
1) Ability tests:
Assist in determining how well an individual can perform tasks related to the job. An
excellent illustration of this is the typing tests given to a prospective employer for secretarial job.
Also called as ‘achievement tests’. It is concerned with what one has accomplished. When
applicant claims to know something, an achievement test is taken to measure how well they
know it. Trade tests are the most common type of achievement test given. Questions have been
prepared and tested for such trades as asbestos worker, punch-press operators, electricians and
machinists. There are, of course, many unstandardised achievement tests given in industries,
such as typing or dictation tests for an applicant for a stenographic position.
2). Aptitude test:

Aptitude tests measure whether an individuals has the capacity or latent ability to learn a
given job if given adequate training. The use of aptitude test is advisable when an applicant has
had little or no experience along the line of the job opening. Aptitudes tests help determine a
person’s potential to learn in a given area. An example of such test is the general management

aptitude tests (GMAT), which many business students take prior to gaining admission to a
graduate business school programme.
Aptitude test indicates the ability or fitness of an individual to engage successfully in any
number of specialized activities. They cover such areas clerical aptitude, numerical aptitude,
mechanical aptitude, motor co-ordination, finger dexterity and manual dexterity. These tests help
to detect positive negative points in a person’s sensory or intellectual ability. They focus
attention on a particular type of talent such as learning or reasoning in respect of a particular
field of work.
Forms of aptitude test:
 Mental or intelligence tests:

They measure the overall intellectual ability of a person and enable to know whether the person
has the mental ability to deal with certain problems.
 Mechanical aptitude tests:
They measure the ability of a person to learn a particular type of mechanical work. These tests
helps to measure specialized technical knowledge and problem solving abilities if the candidate.
They are useful in selection of mechanics, maintenance workers, etc.
 Psychomotor or skills tests:
They measure a person’s ability to do a specific job. Such tests are conducted in respect of semi-
skilled and repetitive jobs such as packing, testing and inspection, etc.
3). Intelligence test:

This test helps to evaluate traits of intelligence. Mental ability, presence of mind
(alertness), numerical ability, memory and such other aspects can be measured. The intelligence
is probably the most widely administered standardized test in industry. It is taken to judge
numerical, skills, reasoning, memory and such other abilities.
4). Interest Test:

This is conducted to find out likes and dislikes of candidates towards occupations,
hobbies, etc. such tests indicate which occupations are more in line with a person’s interest. Such
tests also enable the company to provide vocational guidance to the selected candidates and even
to the existing employees. These tests are used to measure an individual’s activity preferences.
These tests are particularly useful for students considering many careers or employees deciding
upon career changes.
5). Personality Test:

The importance of personality to job success is undeniable. Often an individual who
possesses the intelligence, aptitude and experience for certain has failed because of inability to
get along with and motivate other people. It is conducted to judge maturity, social or
interpersonal skills, behavior under stress and strain, etc. this test is very much essential on case
of selection of sales force, public relation staff, etc. where personality plays an important role.
Personality tests are similar to interest tests in that they, also, involve a serious problem of
obtaining an honest answer.
6). Projective Test:

This test requires interpretation of problems or situations. For example, a photograph or a
picture can be shown to the candidates and they are asked to give their views, and opinions about
the picture.
7). General knowledge Test:

Now days G.K. Tests are very common to find general awareness of the candidates in the
field of sports, politics, world affairs, current affairs.
8). Perception Test:

At times perception tests can be conducted to find out beliefs, attitudes, and mental
sharpness.etc.
9). Graphology Test:

It is designed to analyze the handwriting of individual. It has been said that an
individual’s handwriting can suggest the degree of energy, inhibition and spontaneity, as well as
disclose the idiosyncrasies and elements of balance and control. For example, big letters and
emphasis on capital letters indicate a tendency towards domination and competitiveness. A slant
to the right, moderate pressure and good legibility show leadership potential.
10). Polygraph Test:

Polygraph is a lie detector, which is designed to ensure accuracy of the information given
in the applications. Department store, banks, treasury offices and jewellery shops, that is, those
highly vulnerable to theft or swindling may find polygraph tests useful.
11). Medical Test:

It reveals physical fitness of a candidate. With the development of technology, medical
tests have become diversified. Medical servicing helps measure and monitor a candidate’s
physical resilience upon exposure to hazardous chemicals.

DIFFERENCE BETWEEN RECRUITMENT AND SELECTION:
Basis Recruitment Selection

It is an activity of establishing
It is a process of picking up more
Meaning contact between employers and
competent and suitable employees.
applicants.
It encourages large number of It attempts at rejecting unsuitable
Objective
Candidates for a job. candidates.
Process It is a simple process. It is a complicated process.
The candidates have not to cross

Hurdles Many hurdles have to be crossed.
over many hurdles.
Approach It is a positive approach. It is a negative approach.
Sequence It precedes selection. It follows recruitment.
Economy It is an economical method. It is an expensive method.
Time
Less time is required. More time is required.
Consuming
TECHNIQUES OF MANAGERIAL SKILLS DEVELOPMENT:
Managerial skill development is a systematic process of training and growth by which

individuals gain and apply knowledge, skills, insights and attitudes to manage orientation
effectively.
On-the-Job Techniques:
When an employee learns the job in actual working site in real life situation, and not
simulated environment, it is called on the job training. This type of training, also known as job
instruction training, is the most commonly used method. Under this method, the individual is
placed on a regular job and taught the skills necessary to perform that job. The trainee learns
under the supervision and guidance of a qualified worker or instructor. On-the-job training
methods include job rotation, coaching, job instruction or training through step-by-step and
committee assignments.

1. Job Rotation:
This type of training involves the movement of the trainee from one job to another. The
trainee receives job knowledge and gains experience from his supervisor or trainer in each of the
different job assignments. Though this method of training is common in training managers for
general management positions, trainees can also be rotated from job to job in workshop jobs.
This method gives an opportunity to the trainee to understand the problems of employees on
other jobs and respect them.
Job rotation method has been using in the Indian banking sector mainly by State bank
group for the probationary officers for the period of approximately 2 years to finally post them as
assistant bank manager. Under this method of training candidates are placed in each and every
job starts from clerical job, assistant, cashier and managerial job for the purpose of knowing
importance in nature of every job before handling Asst bank manager position.
2. Coaching:
The trainee is placed under a particular supervisor who functions as a coach in training
the individual. The supervisor provides feedback to the trainee on his performance and offers
him some suggestions for improvement. Often the trainee shares some of the duties and
responsibilities of the coach and relieves him of his burden. A limitation of this method of
training is that the trainee may not have the freedom or opportunity to express his own ideas.
3. Job Instruction:
This method is also known as training through step by step. Under this method, trainer
explains the trainee the way of doing the jobs, job knowledge and skills and allows him to do the
job. The trainer appraises the performance of the trainee, provides feedback information and
corrects the trainee.
4. Committee Assignments:
Under the committee assignment, group of trainees are given and asked to solve an actual
organizational problem. The trainees solve the problem jointly. It develops team work.
5. Apprenticeship:
Apprenticeship is a formalized method of training curriculum program that combines
classroom education with on-the-job work under close supervision. The training curriculum is
planned in advance and conducted in careful steps from day to day. Most trade apprenticeship
programs have duration of three to four years before an apprentice is considered completely
accomplished in that trade or profession. This method is appropriate for training in crafts, trades
and technical areas, especially when proficiency in a job is the result of a relatively long training
or apprenticeship period, e.g., job of a craftsman, a machinist, a printer, a tool maker, a pattern
designer, a mechanic, etc.

6. Internship:
Internship is one of the on-the-job training methods. Individuals entering industry in
skilled trades like machinist, electrician and laboratory technician are provided with thorough
instruction though theoretical and practical aspects. For example, TISCO, TELCO and BHEL
select the candidates from polytechnics, engineering colleges and management institutions and
provide apprenticeship training. Apprenticeship training programmes are jointly sponsored by
colleges, universities and industrial organisations to provide the opportunity to the students to
gain real-life experience as well as employment. Exhibit presents the benefits of apprenticeship
training.
Advantages of On-the-Job Techniques:

 It is directly in the context of job
 It is often informal
 It is most effective because it is learning by experience
 It is least expensive
 Trainees are highly motivated
 It is free from artificial classroom situations
Disadvantages of On-the-Job Techniques:

 Trainer may not be experienced enough to train or he may not be so inclined.
 It is not systematically organized
 Poorly conducted programs may create safety hazards.
Off-the-job techniques:
Off-the-job training is conducted in a location specifically designated for training. It may
be near the workplace or away from work, at a special training center or a resort conducting the
training away from the workplace minimize distractions and allows trainees to devote their full
attention to the material being taught- However, off-the-job training programs may not provide
as much transfer of training to the actual job as do on-the-job programs.
1. Classroom Lectures:
Under the off the job methods of training, classroom method or lecture method is well-
known to train white collar or managerial level employees in the organisation. under this method
employees are called to the room like that of classroom to give training by trainer in the form of
lectures. This method is effectively used for the purpose of teaching administrative aspects or on
management subject to make aware of procedures and to give instructions on particular topic.
Advantage – It can be used for large groups. Cost per trainee is low.
Disadvantages – Low interest of employees. It is not learning by practice. It is One-way
communication. No authentic feedback mechanism. Likely to lead to boredom for employees.
2. Audio-Visual:
Providing training by way of using Films, Televisions, Video, and Presentations etc. This
method of training has been using successfully in education institutions to train their students in
subjects to understand and assimilate easily and help them to remember forever. New companies
have come up for providing audio visual material for students in their concern subjects. In the
corporate sector, mainly in customer care centres employers are giving training to their
employees by using audio visuals material to teach how to receive, talk and behaviour with the
customer.
Advantages – Wide range of realistic examples, quality control possible.
Disadvantages – One-way communication, No feedback mechanism. No flexibility for different
audience.
3. Simulation:
The simulation Method of training is most famous and core among all of the job training
methods. in the simulation training method, trainee will be trained on the especially designed
equipment or machine seems to be really used in the field or job. But, those equipment or
machines are specifically designed for training trainees were making them ready to handle them
in the real field or job. This method of planning is mostly used where very expensive machinery
or equipment used for performing Job or to handle that job.
4. Vestibule Training:
Mostly this method of training will be used to train technical staff, office staff and
employees who deal with tools and machines. Employees learn their jobs on the equipment they
will be using, but the training is conducted away from the actual work floor by bringing
equipments or tools to certain place where training is provided, but not work place. Vestibule
training allows employees to get a full feel for doing task without real world pressures.
Additionally, it minimizes the problem of transferring learning to the job.
Vestibule training is provided to employees when new or advanced equipment or tools

introduced in to the organisation to do a particular job by using them. For this purpose such
equipment is brought to a separate place to give demonstration and train how to use and that
handle it by employees safely.
5. Case Studies:
It is a written description of an actual situation in the past in same organisation or
somewhere else and trainees are supposed to analyze and give their conclusions in writing. This
is another excellent method to ensure full and whole hearted participation of employees and
generates good interest among them. Case is later discussed by instructor with all the pros and
cons of each option. It is an ideal method to promote decision-making abilities within the
constraints of limited data.
6. Role Playing:
During a role play, the trainees assume roles and act out situations connected to the
learning concepts. It is good for customer service and training. This method is also called ‘role-
reversal’, ‘socio-drama’ or ‘psycho-drama’. Here trainees act out a given role as they would in a
stage play. Two or more trainees are assigned roles in a given situation, which is explained to the
group. There are no written lines to be said and, naturally, no rehearsals. The role players have to
quickly respond to the situation that is ever changing and to react to it as they would in the real
one. It is a method of human interaction which involves realistic behaviour in an imaginary or
hypothetical situation. Role playing primarily involves employee-employer relationships, hiring,
firing, discussing a grievance problem, conducting a post appraisal interview, disciplining a
subordinate, or a salesman making presentation to a customer.
7. Programmed Instructions:
This involves two essential elements: (a) a step-by-step series of bits of knowledge, each
building upon what has gone before, and (b) a mechanism for presenting the series and checking
on the trainee’s knowledge. Questions are asked in proper sequence and indication given
promptly whether the answers are correct.
This programme may be carried out with a book, a manual or a teaching machine. It is
primarily used for teaching factual knowledge such as Mathematics, Physics, etc.
Advantages of Off-the-Job Training

 Trainers are usually experienced enough to train
 It is systematically organized
 Efficiently created programs may add lot of value
Disadvantages of Off-the-Job Training:

 It is not directly in the context of job
 It is often formal
 It may not be based on experience.
 It is expensive.
 Trainees may not be much motivated
 It is artificial in nature.
PAY:
Pay or salary is a fixed compensation periodically paid to person for regular work. Pay is
a regular payment usually monthly made to employees as their contributions to the service of the
organisation. It is an important element in directing efforts and performance towards
organizational goals. It is a motivator to the organizational goals.

Pay structures, also known as salary structures, set out the different levels of pay for jobs,
or groups of jobs, by reference to:
 their relative internal value, as established by job evaluation
 external relativities, via market rate surveys
 where appropriate, negotiated rates for the job
Types of pay:
Graded structures – a sequence of overlapping job grades into which jobs of broadly equivalent
size are allocated. Each grade has a range, the maximum of which is usually 20 to 50% above the
minimum.
Broadband – similar to conventional graded structures, but with far fewer and far wider bands.
The maximum of the band can be 100% or more above the minimum.
Job Family Structures – Each job family has a different graded structure. Jobs are allocated to a
job family based on activities carried out; skills and competencies e.g. Information Technology
is a perfect example of a job family for which there is usually a separate grade structure.
Determinants of pay:
1. Knowledge, Skills, Ability and Other Characteristics
The most important factor that influences the rate of pay is the type of job that one does.
Therefore, in classifying or differentiating jobs for purposes of salary payments, the most
important factor is the knowledge and skills possessed by the job holder. Information about the
job such as the qualifications needed can be obtained from the job specifications
2. Type of Entity
Payment rate of salaries will also depend on the type of business the organisation is
engaged in. For some jobs, especially high-level posts, the private sector offers higher salaries
compared to the public sector. Apart from that, the organisation criteria; whether it is based on
profit or not, and the type of goods produced, will also influence and differentiate the rate of pay.
3. Trade union or Non-trade Union Status

Fundamentally speaking, an employee who is a member of a trade union can enjoy a
higher rate of pay. This is because trade unions are more alert to the needs of employees,
especially from the aspects of salary and benefits. Claims that could be made via collective
negotiations will give an advantage to job holders who are trade union members.

4. Capital or Labour Strength
A business that has low labour costs compared to its earnings will be able to offer higher
salary rates. For example, if the labour costs of a business are merely 10% to 15% of its earnings,
the pay for its employees will be higher compared to an organisation whose labour costs ranges
from 35% to 60% of its earnings.
5. Size of Entities
Large entities will usually offer a higher rate of pay than smaller entities. An
organisation will increase in size when demand for its products and services increases. On those
higher sales, the organisation then makes higher profits and is thus able to pay higher salaries to
its employees.
6. Management Philosophy
Management philosophy differs from one employer to the next. Some employers only
pay salaries based on the minimum rate mandated by law. Nevertheless, there are also employers
who are more sensitive to the rights and interests of the employees. These employers will pay
higher salaries to the employees because they believe that by paying competitive salaries, they
can recruit and retain quality employees.
7. Total of Compensation Package

The difference between salaries of the past and those of today is very obvious. Unlike
current practice, salaries paid out in the past were only based on the employees’ basic salaries,
and there were no health insurance, paid leave, paid public holidays or pension schemes. Today’s
total rewards package includes not only basic pay but some or all of the following: bonus, family
health and life insurance, paid vacation, sick days and leave, disability insurance, transport
allowance, relocation expenses and bonus and retirement plan.
8. Supply of and Demand for Labour

The forces of supply and demand jointly determine the wage rate. However, despite the
often higher labour offerings as compared to demand, there are individuals who are head-hunted
constantly by employers. These people are offered high pay to join the organisations. This is due
to the fact that they have the knowledge and skills that employers are always on the look-out for.
9. Company Profit
An employee in an organisation which has a high level of profit will have the opportunity
to get a higher rate of pay.
10. Job Stability

As an employee, what do you hope to get from your organisation, apart from a
commensurate pay? Naturally, you want job and income stability. The income guaranteed by

your employer will allow you to support your family and pay for all your current and future
needs.
11. Gender Differences

The gender factor is a main contributor to the problems of justice and fairness in
payment of salaries. On average, men often earn higher salaries than women. Nevertheless, the
gender gap in wage rate is not too obvious in Malaysia.
12. Period of Service and Employee Performance

In general, an increment in pay is consistent with one’s seniority in job rank, period of
service and work performance.
REWARDS:
All the monetary and non-monetary benefits the employees get from their employees in
return for their services are generally called as reward.
Objectives of Reward:
 Improve organizational effectiveness
 Support and change culture
 Achieve integration
 Motivate employees
 Increased commitment
 Improved skills
 Improved quality
 Develop teamwork
Types of Reward:
Monetary rewards:
The purpose of monetary incentives is to reward associates for excellent job performance
through money. Monetary incentives include profit sharing, project bonuses, stock options and
warrants, scheduled bonuses
Non-monetary rewards:
Non monetary rewards means those rewards of good performance which are not
monetary in nature.
Examples - movie tickets, restaurant coupons, certificates, thanks from the bosses, flexible
schedules, a day off, picnics, recognition of birthdays, and free lunches.
MANAGERIAL MOTIVATION:

Motivation is defined as the process of stimulating people to action, to accomplish
desired goals. It involves arousing needs and desires in people to initiate and direct their
behaviour in a purposive manner.
Importance of Motivation:
Motivation occupies an important place and position in the whole management process.
This technique can be used fruitfully for encouraging workers to make positive contribution for
achieving organizational objectives. Motivation is necessary as human nature needs some sort of
inducement, encouragement or incentive in order to get better performance. Motivation of
employee’s offers may benefits to the Organisation and also to the employees. This suggests the
importance of motivating employees. Motivation acts as a technique for improving the
performance of employees working at different levels. Motivation of employees is one function
which every manager has to perform along with other managerial functions. A manager has to
function as a friend and motivator of his subordinates. Motivation is useful in all aspects of life
and even our family life. The same is the case with business. This dearly suggests that motivation
is extremely important. It is an integral part of management process itself.
THEORIES OF MOTIVATION:
Maslow’s need hierarchy theory:
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in
1943. This theory is a classical depiction of human motivation. This theory is based on the
assumption that there is a hierarchy of five needs within each individual. The urgency of these
needs varies.
Physiological needs- These are the basic needs of air, water, food, clothing and shelter. In other
words, physiological needs are the needs for basic amenities of life.
Safety needs- Safety needs include physical, environmental and emotional safety and protection.
For instance- Job security, financial security, protection from animals, family security, health
security, etc.

Social needs- Social needs include the need for love, affection, care, belongingness, and
friendship.
Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect, confidence,
competence, achievement and freedom) and external esteem needs (recognition, power, status,
attention and admiration).
Self-actualization need- This include the urge to become what you are capable of becoming /
what you have the potential to become. It includes the need for growth and self-contentment. It
also includes desire for gaining more knowledge, social- service, creativity and being aesthetic.
The self- actualization needs are never fully satiable. As an individual grows psychologically,
opportunities keep cropping up to continue growing.
According to Maslow, individuals are motivated by unsatisfied needs. As each of these

needs is significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the
five needs into two categories - Higher-order needs and Lower-order needs. The physiological
and the safety needs constituted the lower-order needs. These lower-order needs are mainly
satisfied externally. The social, esteem, and self-actualization needs constituted the higher-order
needs. These higher-order needs are generally satisfied internally, i.e., within an individual.
Thus, we can conclude that during boom period, the employees lower-order needs are
significantly met.
Implications of Maslow’s Hierarchy of Needs Theory for Managers
 As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. Breaks and eating
opportunities should be given to employees.
 As far as the safety needs are concerned, the managers should provide the employees job
security, safe and hygienic work environment, and retirement benefits so as to retain
them.
 As far as social needs are concerned, the management should encourage teamwork and
organize social events.
 As far as esteem needs are concerned, the managers can appreciate and reward employees
on accomplishing and exceeding their targets. The management can give the deserved
employee higher job rank / position in the organization.
 As far as self-actualization needs are concerned, the managers can give the employees
challenging jobs in which the employees’ skills and competencies are fully utilized.
Moreover, growth opportunities can be given to them so that they can reach the peak.
The managers must identify the need level at which the employee is existing and then
those needs can be utilized as push for motivation.
Limitations of Maslow’s Theory

 It is essential to note that not all employees are governed by same set of needs.
Different individuals may be driven by different needs at same point of time. It is
always the most powerful unsatisfied need that motivates an individual.
 The theory is not empirically supported.
 The theory is not applicable in case of starving artist as even if the artist’s basic
needs are not satisfied, he will still strive for recognition and achievement.
Herzberg’s Two-Factor Theory of Motivation

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in
satisfaction while there are other job factors that prevent dissatisfaction.
Herzberg classified these job factors into two categories-
Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for long-term. But if these
factors are absent / if these factors are non-existent at workplace, then they lead to
dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable
in a job, pacify the employees and do not make them dissatisfied. These factors are extrinsic to
work. Hygiene factors are also called as dissatisfiers or maintenance factors as they are required
to avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene
factors symbolized the physiological needs which the individuals wanted and expected to be
fulfilled. Hygiene factors include pay, company policies, fringe benefits, physical working
conditions, interpersonal relationships, job security, etc.,
Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as

motivators. The motivational factors yield positive satisfaction. These factors are inherent to
work. These factors motivate the employees for a superior performance. These factors are called
satisfiers. These are factors involved in performing the job. Employees find these factors
intrinsically rewarding. The motivators symbolized the psychological needs that were perceived
as an additional benefit. Motivational factors include recognition, sense of achievement,
opportunities for growth, responsibility, etc.,
Implications of Two-Factor Theory:

The Two-Factor theory implies that the managers must stress upon guaranteeing the
adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must
make sure that the work is stimulating and rewarding so that the employees are motivated to
work and perform harder and better. This theory emphasize upon job-enrichment so as to

motivate the employees. The job must utilize the employee’s skills and competencies to the
maximum. Focusing on the motivational factors can improve work-quality.
ERG Theory of Motivation:

To bring Maslow’s need hierarchy theory of motivation in synchronization with
empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG
theory of motivation. He recategorized Maslow’s hierarchy of needs into three simpler and
broader classes of needs:
Existence needs- These include need for basic material necessities. In short, it includes an
individual’s physiological and physical safety needs.
Relatedness needs- These include the aspiration individual’s have for maintaining significant
interpersonal relationships (be it with family, peers or superiors), getting public fame and
recognition. Maslow’s social needs and external component of esteem needs fall under this class
of need.
Growth needs- These include need for self-development and personal growth and advancement.
Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this
category of need.
Implications of the ERG Theory
Managers must understand that an employee has various needs that must be satisfied at
the same time. According to the ERG theory, if the manager concentrates solely on one need at a
time, this will not effectively motivate the employee. Also, the frustration- regression aspect of
ERG Theory has an added effect on workplace motivation. For instance- if an employee is not
provided with growth and advancement opportunities in an organization, he might revert to the
relatedness need such as socializing needs and to meet those socializing needs, if the
environment or circumstances do not permit, he might revert to the need for money to fulfill
those socializing needs. The sooner the manager realizes and discovers this, the more immediate
steps they will take to fulfill those needs which are frustrated until such time that the employee
can again pursue growth.
McClelland’s Theory of Needs

David McClelland and his associates proposed McClelland’s theory of Needs /
Achievement Motivation Theory. This theory states that human behaviour is affected by three
needs - Need for Power, Achievement and Affiliation. Need for achievement is the urge to excel,
to accomplish in relation to a set of standards, to struggle to achieve success. Need for power is
the desire to influence other individual’s behaviour as per your wish. In other words, it is the
desire to have control over others and to be influential. Need for affiliation is a need for open and
sociable interpersonal relationships. In other words, it is a desire for relationship based on co-
operation and mutual understanding.

The individuals with high achievement needs are highly motivated by competing and
challenging work. They look for promotional opportunities in job. They have a strong urge for
feedback on their achievement. Such individuals try to get satisfaction in performing things
better. High achievement is directly related to high performance. Individuals who are better and
above average performers are highly motivated. They assume responsibility for solving the
problems at work. McClelland called such individuals as gamblers as they set challenging targets
for themselves and they take deliberate risk to achieve those set targets. Such individuals look for
innovative ways of performing job. They perceive achievement of goals as a reward, and value it
more than a financial reward.
The individuals who are motivated by power have a strong urge to be influential and
controlling. They want that their views and ideas should dominate and thus, they want to lead.
Such individuals are motivated by the need for reputation and self-esteem. Individuals with
greater power and authority will perform better than those possessing less power. Generally,
managers with high need for power turn out to be more efficient and successful managers. They
are more determined and loyal to the organization they work for. Need for power should not
always be taken negatively. It can be viewed as the need to have a positive effect on the
organization and to support the organization in achieving its goals.
The individuals who are motivated by affiliation have an urge for a friendly and
supportive environment. Such individuals are effective performers in a team. These people want
to be liked by others. The manager’s ability to make decisions is hampered if they have a high
affiliation need as they prefer to be accepted and liked by others, and this weakens their
objectivity. Individuals having high affiliation needs prefer working in an environment providing
greater personal interaction. Such people have a need to be on the good books of all. They
generally cannot be good leaders.
Equity Theory of Motivation

The core of the equity theory is the principle of balance or equity. As per this motivation
theory, an individual’s motivation level is correlated to his perception of equity, fairness and
justice practiced by the management. Higher is individual’s perception of fairness, greater is the
motivation level and vice versa. While evaluating fairness, employee compares the job input (in
terms of contribution) to outcome (in terms of compensation) and also compares the same with
that of another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make such a
comparison.
Assumptions of the Equity Theory
 The theory demonstrates that the individuals are concerned both with their own rewards
and also with what others get in their comparison.
 Employees expect a fair and equitable return for their contribution to their jobs.

 Employees decide what their equitable return should be after comparing their inputs and
outcomes with those of their colleagues.
 Employees who perceive themselves as being in an inequitable scenario will attempt to
reduce the inequity either by distorting inputs and/or outcomes psychologically, by
directly altering inputs and/or outputs, or by quitting the organization.
Goal Setting Theory of Motivation:

In 1960’s, Edwin Locke put forward the Goal-setting theory of motivation. This theory
states that goal setting is essentially linked to task performance. It states that specific and
challenging goals along with appropriate feedback contribute to higher and better task
performance. In simple words, goals indicate and give direction to an employee about what
needs to be done and how much efforts are required to be put in.
The important features of goal-setting theory are as follows:

 The willingness to work towards attainment of goal is main source of job motivation.
Clear, particular and difficult goals are greater motivating factors than easy, general and
vague goals.
 Specific and clear goals lead to greater output and better performance. Unambiguous,
measurable and clear goals accompanied by a deadline for completion avoids
misunderstanding.
 Goals should be realistic and challenging. This gives an individual a feeling of pride and
triumph when he attains them, and sets him up for attainment of next goal. The more
challenging the goal, the greater is the reward generally and the more is the passion for
achieving it.
 Better and appropriate feedback of results directs the employee behaviour and contributes
to higher performance than absence of feedback. Feedback is a means of gaining
reputation, making clarifications and regulating goal difficulties. It helps employees to
work with more involvement and leads to greater job satisfaction.
 Employees’ participation in goal is not always desirable.
 Participation of setting goal, however, makes goal more acceptable and leads to more
involvement.
Expectancy Theory of Motivation:

The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964.
Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The
theory states that the intensity of a tendency to perform in a particular manner is dependent on
the intensity of an expectation that the performance will be followed by a definite outcome and
on the appeal of the outcome to the individual.

The Expectancy theory states that employee’s motivation is an outcome of how much an
individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to
expected performance (Expectancy) and the belief that the performance will lead to reward
(Instrumentality). In short, Valence is the significance associated by an individual about the
expected outcome. It is an expected and not the actual satisfaction that an employee expects to
receive after achieving the goals. Expectancy is the faith that better efforts will result in better
performance. Expectancy is influenced by factors such as possession of appropriate skills for
performing the job, availability of right resources, availability of crucial information and getting
the required support for completing the job.
Instrumentality is the faith that if you perform well, then a valid outcome will be there.
Instrumentality is affected by factors such as believe in the people who decide who receives what
outcome, the simplicity of the process deciding who gets what outcome, and clarity of
relationship between performance and outcomes.
Thus, the expectancy theory concentrates on the following three relationships:
 Effort-performance relationship: What is the likelihood that the individual’s effort be

recognized in his performance appraisal?
 Performance-reward relationship: It talks about the extent to which the employee believes
that getting a good performance appraisal leads to organizational rewards.
 Rewards-personal goals relationship: It is all about the attractiveness or appeal of the
potential reward to the individual.
Reinforcement Theory of Motivation:

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It
states that individual’s behaviour is a function of its consequences. It is based on “law of effect”,
i.e, individual’s behaviour with positive consequences tends to be repeated, but individual’s
behaviour with negative consequences tends not to be repeated.
Reinforcement theory of motivation overlooks the internal state of individual, i.e., the
inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on
what happens to an individual when he takes some action. Thus, according to Skinner, the
external environment of the organization must be designed effectively and positively so as to
motivate the employee. This theory is a strong tool for analyzing controlling mechanism for
individual’s behaviour. However, it does not focus on the causes of individual’s behaviour.
The managers use the following methods for controlling the behaviour of the employees:
Positive Reinforcement- This implies giving a positive response when an individual
shows positive and required behaviour. For example - Immediately praising an employee for
coming early for job. This will increase probability of outstanding behaviour occurring again.

Reward is a positive reinforce, but not necessarily. If and only if the employees’ behaviour
improves, reward can said to be a positive reinforcer. Positive reinforcement stimulates
occurrence of a behaviour. It must be noted that more spontaneous is the giving of reward, the
greater reinforcement value it has.
Negative Reinforcement- This implies rewarding an employee by removing negative /
undesirable consequences. Both positive and negative reinforcement can be used for increasing
desirable / required behaviour.
Punishment- It implies removing positive consequences so as to lower the probability of
repeating undesirable behaviour in future. In other words, punishment means applying
undesirable consequence for showing undesirable behaviour. For instance - Suspending an
employee for breaking the organizational rules. Punishment can be equalized by positive
reinforcement from alternative source.
Extinction- It implies absence of reinforcements. In other words, extinction implies
lowering the probability of undesired behaviour by removing reward for that kind of behaviour.
For instance - if an employee no longer receives praise and admiration for his good work, he may
feel that his behaviour is generating no fruitful consequence. Extinction may unintentionally
lower desirable behaviour.
EFFECTIVE MANAGEMENT CRITERIA:

Effective managers lead to business success
1. Know what is going on.
Manager should be aware of what is happening in their sector, organisation and
team. Knowledge gives the tools to plan ahead. Managers should use resources effectively and
make informed decisions.
2. Create a sense of direction:

Managers should establish clear goals and objectives for the employees and explain how
these fit into an overall plan. They should be ready to alter goals as circumstances change, but
always explain why. They should make sure tasks, projects and meetings have a purpose and an
outcome: a shared sense of direction is the core of a tightly knit, focused team.
3. Make decisions:
Staff look towards managers for effective leadership, and that means making decisions.
Indecisiveness will wear away at manager’s credibility and create uncertainty in the team. By all
means the manager should consult with his staff before making a decision.
4. Lead by example:
Whether you like it or not, you set the tone for your team and they will follow your
example. If you are slack, they will be slack; if you are sharp, they will be, too. It is up to you to

set the standards you want your team to aspire to, and communicate those standards in what you
do, what you say and how you say it.
5. Consult and delegate:

Manager cannot do everything by himself. He should talk to his staff about the
business, listen to what they say and take their ideas on board. Pass work on to people who can
do it and trust them to get the job done.
6. Take responsibility for your team:

Ultimately, managers are responsible for their team’s performance. If they perform poorly,
that’s a reflection on managers. So the manager should be accountable for their performance.
Accepting responsibility will earn employees’ loyalty and respect.
7. Ask your staff what they want to achieve:

Successful organisations harness the interests and ambitions of their staff, who will work
with greater enthusiasm and commitment when they have a personal stake in a business or
project. Find out what they want to achieve and give them the means to achieve it.
8. Praise your staff for work well done:

Never pass up an opportunity to commend your staff for working well and always
acknowledge their contribution to successful projects. A pat on the back costs nothing, but instils
a sense of pride and increases motivation. You might even consider developing some sort of
incentive or reward scheme.
9. Be completely fair:
Favouritism, however subtle, creates jealousy and damages morale. It’s vital that you
don’t show preference for one person over another, and you give your attention equally to your
staff. This doesn’t mean you treat them all in exactly the same way, however: good managers
realise that people respond to different incentives.
10. Deal with errors calmly:

If you lose your temper, you lose credibility. Deal with mistakes calmly and without
rancour. If you have cause to criticise someone, never do so publicly – it is damaging to
individual pride and collective morale.There are also following facts that should be kept in mind
for effective management:
Essentials for effective management:
1. Low competence, high commitment. This bucket tends to contain inexperienced or new team
members. They often lack the training and experience to be highly competent, but they make up
for it in enthusiasm and commitment to the job at hand.
2. Low to moderate competence, low commitment. This bucket contains poor performers as
well as good performers who are temporarily frustrated. Frustration is usually caused by

someone who wants to do a good job but doesn’t yet have the expertise to perform to their
expectations.
3. Moderate to high competence, moderate commitment. This bucket contains solid
performers who are consistent contributors of high value. These are people who have good skills,
but are held back by variable confidence or motivation. This bucket may contain potential
superstars, but only a few are able to put it all together to make it to the next level. Most good
contributors peak in this bucket and never leave.
4. High competence, high commitment. These are the superstars on any team. They are masters
at what they do, they are confident, and they are highly motivated.
PERFORMANCE APPRAISAL MEASURES:

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for some
organizations only. None should be dismissed or accepted as appropriate except as they relate to
the particular needs of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
 Past Oriented Methods
 Future Oriented Methods
Past Oriented Methods
1. Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can
be evaluated, large number of employees covered, no formal training required. Disadvantages –
Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the form of
Yes or No based questions is prepared. Here the rater only does the reporting or checking and
HR department does the actual evaluation. Advantages – economy, ease of administration,
limited training required, standardization. Disadvantages – Raters biases, use of improper weighs
by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are
given and the rater indicates which statement is true or false. The rater is forced to make a

choice. HR department does actual assessment. Advantages – Absence of personal biases
because of forced choice. Disadvantages – Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that
the performance is conformed to normal distribution. Advantages – Eliminates Disadvantages –
Assumption of normal distribution, unrealistic, errors of central tendency.
5. Critical Incidents Method: The approach is focused on certain critical behaviors of

employee that makes all the difference in the performance. Supervisors as and when they occur
record such incidents. Advantages – Evaluations are based on actual job behaviors, ratings are
supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate
improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting
incidents, overly close supervision; feedback may be too much and may appear to be
punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors

determine the points. They are said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance. Advantages – helps overcome rating
errors. Disadvantages – Suffers from distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside employees’ own
department usually from corporate or HR department. Advantages – Useful for managerial level
promotions, when comparable information is needed, Disadvantages – Outsider is generally not
familiar with employees work environment, Observation of actual behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or skills. The
tests may be written or an actual presentation of skills. Tests must be reliable and validated to be
useful. Advantage – Tests may be apt to measure potential more than actual performance.
Disadvantages – Tests may suffer if costs of test development or administration are high.
9. Confidential Records: Mostly used by government departments, however its application in

industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report
(ACR) and may record ratings with respect to following items; attendance, self expression, team
work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness
etc. The system is highly secretive and confidential. Feedback to the assessee is given only in
case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be
manipulated because the evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promoteability of
employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses
and training needs of the employee. Advantage – It is extremely useful in filing information gaps
about the employees that often occur in a better-structured checklist. Disadvantages – It its
highly dependent upon the writing skills of rater and most of them are not good writers. They
may get confused success depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields
to his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers. The
usual techniques used may be ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how
best and why best are not elaborated in this method. It is easy to administer and explanation.
Paired Comparison Methods: In this method each employee is rated with another employee in
the form of pairs. The number of comparisons may be calculated with the help of a formula as
under.
N x (N-1) / 2
Future Oriented Methods
1. Management By Objectives: It means management by objectives and the performance is

rated against the achievement of objectives stated by the management. MBO process goes as
under.
Establish goals and desired outcomes for each subordinate
Setting performance standards
Comparison of actual goals with goals attained by the employee
Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting short-
term goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees potential
for future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other personal characteristics

affecting his performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential. However quality of these appraisals largely
depend upon the skills of psychologists who perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assessees are
requested to participate in in-basket exercises, work groups, computer simulations, role playing
and other similar activities which require same attributes for successful performance in actual
job. The characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self confidence, resistance to stress,
energy level, decision making, sensitivity to feelings, administrative ability, creativity and
mental alertness etc. Disadvantages – Costs of employees traveling and lodging, psychologists,
ratings strongly influenced by assessee’s inter-personal skills. Solid performers may feel
suffocated in simulated situations. Those who are not selected for this also may get affected.
Advantages – well-conducted assessment center can achieve better forecasts of future

performance and progress than other methods of appraisals. Also reliability, content validity and
predictive ability are said to be high in assessment centers. The tests also make sure that the
wrong people are not hired or promoted. Finally it clearly defines the criteria for selection and
promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance data

on an individual group, derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful information on how an
employee does a job may be one of the appraisers. This technique is highly useful in terms of
broader perspective, greater self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer satisfaction and team building
skills. However on the negative side, receiving feedback from multiple sources can be
intimidating, threatening etc. Multiple raters may be less adept at providing balanced and
objective feedback
BALANCED SCORECARD:
A Balanced Scorecard defines what management means by "performance" and measures whether
management is achieving desired results. The Balanced Scorecard translates Mission and Vision
Statements into a comprehensive set of objectives and performance measures that can be
quantified and appraised. These measures typically include the following categories of
performance:
Financial performance (revenues, earnings, return on capital, cash flow)

Customer value performance (market share, customer satisfaction measures, customer loyalty)
Internal business process performance (productivity rates, quality measures, timeliness)
Innovation performance (percent of revenue from new products, employee suggestions, rate of
improvement index)
Employee performance (morale, knowledge, turnover, use of best demonstrated practices)
What Balanced Scorecards do:
 Articulate the business's vision and strategy

 Identify the performance categories that best link the business's vision and strategy to its
results (e.g., financial performance, operations, innovation, employee performance)
 Establish objectives that support the business's vision and strategy
 Develop effective measures and meaningful standards, establishing both short-term
milestones and long-term targets
 Ensure companywide acceptance of the measures
 Create appropriate budgeting, tracking, communication, and reward systems
 Collect and analyze performance data and compare actual results with desired
performance
 Take action to close unfavorable gaps
Companies use Balanced Scorecards to:

 Clarify or update a business's strategy
 Link strategic objectives to long-term targets and annual budgets
 Track the key elements of the business strategy
 Incorporate strategic objectives into resource allocation processes
 Facilitate organizational change
 Compare performance of geographically diverse business units
 Increase companywide understanding of the corporate vision and strategy
FEEDBACK:
Feedback is a process in which information about the past or the present influences the
same phenomenon in the present or future. As part of a chain of cause-and-effect that forms a
circuit or loop, the event is said to "feedback" into itself.
360 degree feedback:

360-degree feedback is an evaluation method that incorporates feedback from the worker,
his/her peers, superiors, subordinates, and customers. Results of these confidential surveys are
tabulated and shared with the worker, usually by a manager. Interpretation of the results, trends
and themes are discussed as part of the feedback. The primary reason to use this full circle of
confidential reviews is to provide the worker with information about his/her performance from
multiple perspectives. From this feedback, the worker is able to set goals for self-development
which will advance their career and benefit the organization. With 360-degree feedback, the
worker is central to the evaluation process and the ultimate goal is to improve individual
performance within the organization. Under ideal circumstances, 360-degree feedback is used as
an assessment for personal development rather than evaluation
Factors Linked to Success
Organizations who experience success with the 360-degree feedback methods have many
environmental attributes present. Some of these are:
 Organizational climate fosters individual growth
 Criticisms are seen as opportunities for improvement
 Proper framing of feedback method by management
 Assurance that feedback will be kept confidential
 Development of feedback tool based on organizational goals and values
 Feedback tool includes area for comments
 Brief workers, evaluators and supervisors about purpose, uses of data and methods of
survey prior to distribution of tool
 Train workers in appropriate methods to give and receive feedback
 Support feedback with back-up services or customized coaching
Factors Linked to Failure
Many organizations have rushed into 360-degree feedback without laying the foundation for
success. Typical errors include:
 Feedback tied to merit pay or promotions
 Comments traced to individuals causing resentment between workers
 Feedback not linked to organizational goals or values
 Use of the feedback tool as a stand alone without follow-up
 Poor implementation of 360-degree tool negatively affects motivation
 Excessive number of surveys are required of each worker with few tangible results
provided to individuals

CAREER MANAGEMENT:
Career Management is the combination of structured planning and the active
management choice of one's own professional career. The outcome of successful career
management should include personal fulfillment, work/life balance, goal achievement and
financial security.
Goals or objectives development
The career management process begins with setting goals/objectives. A relatively specific
goal/objective must be formulated. This task may be quite difficult when the individual lacks
knowledge of career opportunities and/or is not fully aware of their talents and abilities.
However, the entire career management process is based on the establishment of defined
goals/objectives whether specific or general in nature. Utilizing career assessments may be a
critical step in identifying opportunities and career paths that most resonate with someone.
Career assessments can range from quick and informal to more indepth. Regardless of the ones
you use, you will need to evaluate them. Most assessments found today for free (although good)
do not offer an in-depth evaluation.
The time horizon for the achievement of the selected goals or objectives - short term, medium
term or long term - will have a major influence on their formulation.
 Short term goals (one or two years) are usually specific and limited in scope. Short term
goals are easier to formulate. Make sure they are achievable and relate to your longer
term career goals.
 Intermediate goals (3 to 20 years) tend to be less specific and more open ended than short
term goals. Both intermediate and long term goals are more difficult to formulate than
short term goals because there are so many unknowns about the future.
 Long term goals (Over 20 years), of course, are the most fluid of all. Lack of life
experience and knowledge about potential opportunities and pitfalls make the formulation
of long term goals/objectives very difficult. Long range goals/objectives, however, may
be easily modified as additional information is received without a great loss of career
efforts because of experience/knowledge transfer from one career to another.
 Making career choices and decisions – the traditional focus of careers interventions. The
changed nature of work means that individuals may now have to revisit this process more
frequently now and in the future, more than in the past.
 Managing the organizational career – concerns the career management tasks of
individuals within the workplace, such as decision-making, life-stage transitions, dealing
with stress etc.
 Managing 'boundaryless' careers – refers to skills needed by workers whose employment
is beyond the boundaries of a single organisation, a workstyle common among, for
example, artists and designers.

 Taking control of one's personal development – as employers take less responsibility,
employees need to take control of their own development in order to maintain and
enhance their employability.
CURRENT PRACTICES:
Job Rotation:
Job Rotation is a management approach where employees are shifted between two or
more assignments or jobs at regular intervals of time in order to expose them to all verticals of an
organization. It is a pre-planned approach with an objective to test the employee skills and
competencies in order to place him or her at the right place. In addition to it, it reduces the
monotony of the job and gives them a wider experience and helps them gain more insights.
Job rotation is a well-planned practice to reduce the boredom of doing same type of job
everyday and explore the hidden potential of an employee. The process serves the purpose of
both the management and the employees. It helps management in discovering the talent of
employees and determining what he or she is best at. On the other hand, it gives an individual a
chance to explore his or her own interests and gain experience in different fields or operations.
Job Enlargement:
Job enlargement is a job design technique wherein there is an increase in the number of
tasks associated with a certain job. In other words, it means increasing the scope of one’s duties
and responsibilities. The increase in scope is quantitative in nature and not qualitative and at the
same level.
Job enlargement is a horizontal restructuring method that aims at increase in the

workforce flexibility and at the same time reducing monotony that may creep up over a period of
time. It is also known as horizontal loading in that the responsibilities increase at the same level
and not vertically.
Many believe that since the enlargement is horizontal in nature there is not a great need
for training! Contrary to this, job enlargement requires appropriate training especially on time
and people management. Task related training is not required much since the person is already
aware of the same or doing it for some time.
Job Enrichment:
Typically job enrichment involves combining various existing and new tasks into one
large module of work. The work is then handed over to an employee, which means there is an

increase in responsibilities and scope. This increase in responsibility is often vertical. The idea is
to group various tasks together such that natural work units are created.
In addition expanding jobs vertically also gives employee direct control over works units
and employees that were formerly under the jurisdiction of top management only. While on one
hand this increases the ownership of the employees in their work, it also relieves the unnecessary
burden from the top management.
Job enrichment also opens up a feedback channel for the employees. Employees are
frequently apprised of their performance. This keeps them on track and helps them know their
weak and strong points. Performance standards are set for the employees themselves and future
performances are matched against the benchmarks. All this without any serious intervention or
involvement of the top management!
UNIT 3 – THE CONCEPT OF MANAGERIAL EFFECTIVENESS
MANAGERIAL EFFECTIVENESS:
Managerial effectiveness is a leader’s ability to achieve desired results. How well he
applies his skills and abilities in guiding and directing others determines whether he can meet
those results effectively. If he can, his achievements are poised to help the organization gain a
competitive edge against rival organizations heading into the future.
Managerial effectiveness is gauged by the results a leader achieves. Results are generally
believed to be influenced by the organization’s established culture. A good leader must adapt to
the organization’s culture and make sure her skills are aligned with organizational goals in order
to achieve positive results.
Managerial Effectiveness is often defined in terms of output - what a manager achieves.

This result oriented definition leads us to look for the factors that contribute towards the results
Definition:
Managerial effectiveness denotes the extent to which managers actually achieve, in terms
of results, what they are supposed to achieve.
Factors involved in managerial effectiveness:

You.
In the first place, there is you. You bring a unique blend of knowledge, skills, attitudes,
values and experience to your job, and these will influence your effectiveness. If you have been a

manager for some time, you will remember some of the mistakes you made as a new manager,
and can see how your greater skills now help you to be more effective.
Your job
. Then there is the job that you do. It is likely to have many features in common with
other managerial jobs, but just as you are unique, so is your job in its detailed features and some
of its demands on you. There may be a good or bad match between your skills and the demands
of the job, and this affects your potential effectiveness.
The people you work with. The people you work with exert a major influence on how effective
you can be as a manager. Descriptions of a manager include ‘a person who gets work done
through other people’, ‘someone with so much work to do that they must get other people to do
it’, and ‘the person who decides what needs doing, and gets someone else to do it’. Perhaps
surprisingly they get close to the truth with their emphasis on the importance of people for the
achievement of a manager’s work. One measure of managerial effectiveness is the extent to
which a manager can motivate people and coordinate their efforts to achieve optimum
performance. However, in most settings managers do not control people in the way that they can
control the other resources that they need to get their work done. Rather, managers are dependent
on people. Managers’ effectiveness is limited by the qualities, abilities and willingness of these
people.
If we had been writing 50 years ago, we would have mentioned that there are organizations
where commands are frequently given, for example, the military services, the fire service and the
police service. In the twenty-first century there will still be situations where a manager in such
organizations gives an order and expects immediate compliance. However, many of the
processes in organizations such as these now involve so-called ‘softer methods’ of managing
staff.
Your organization.
Finally, the organization you work in determines how effective you can be. How the
organization is structured and your position in it affect your authority and your responsibilities,
and impose constraints on what you are able to achieve. Similarly, the culture of the
organization, with its unwritten norms and ways of working, also influences your ability to be
effective as a manager.
Effectiveness, then, does not come from just learning a few management techniques.
Some techniques are important and necessary, but managerial effectiveness is more complex. It
is influenced by a range of factors – you, the job you do, the people you work with, and the
organization you work in.
PERSON-PROCESS-PRODUCT MODEL:
Every business organization is a part of industry and has to operate in a given economic
system and society. It receives inputs, transforms them and exports the outputs to the

environment. The person, process and product approach indicates how the various managerial
characteristics and resourcefulness acting as inputs is being transformed into outputs through a
transformation process
The managerial grid model (1964) is a behavioral leadership model developed by Robert
R. Blake and Jane Mouton. This model originally identified five different leadership styles based
on the concern for people and the concern for production. The optimal leadership style in this
model is based on Theory Y.
The grid theory has continued to evolve and develop. The theory was updated with two
additional leadership styles and with a new element, resilience. In 1999, the grid managerial
seminar began using a new text, The Power to Change.
The model is represented as a grid with concern for production as the x-axis and concern
for people as the y-axis; each axis ranges from 1 (Low) to 9 (High). The resulting leadership
styles are as follows:
The indifferent (previously called impoverished) style (1,1): evade and elude. In this
style, managers have low concern for both people and production. Managers use this style to
preserve job and job seniority, protecting themselves by avoiding getting into trouble. The main
concern for the manager is not to be held responsible for any mistakes, which results in less
innovative decisions.
The accommodating (previously, country club) style (1,9): yield and comply. This style
has a high concern for people and a low concern for production. Managers using this style pay

much attention to the security and comfort of the employees, in hopes that this will increase
performance. The resulting atmosphere is usually friendly, but not necessarily very productive.
The dictatorial (previously, produce or perish) style (9,1): control and dominate. With a
high concern for production, and a low concern for people, managers using this style find
employee needs unimportant; they provide their employees with money and expect performance
in return. Managers using this style also pressure their employees through rules and punishments
to achieve the company goals. This dictatorial style is based on Theory X of Douglas McGregor,
and is commonly applied by companies on the edge of real or perceived failure. This style is
often used in cases of crisis management.
The status quo (previously, middle-of-the-road) style (5,5): balance and compromise.
Managers using this style try to balance between company goals and workers' needs. By giving
some concern to both people and production, managers who use this style hope to achieve
suitable performance but doing so gives away a bit of each concern so that neither production nor
people needs are met.
The sound (previously, team style) (9,9): contribute and commit. In this style, high
concern is paid both to people and production. As suggested by the propositions of Theory Y,
managers choosing to use this style encourage teamwork and commitment among employees.
This method relies heavily on making employees feel themselves to be constructive parts of the
company.
The opportunistic style: exploit and manipulate. Individuals using this style, which was
added to the grid theory before 1999, do not have a fixed location on the grid. They adopt
whichever behaviour offers the greatest personal benefit.
The paternalistic style: prescribe and guide. This style was added to the grid theory
before 1999. In The Power to Change, it was redefined to alternate between the (1,9) and (9,1)
locations on the grid. Managers using this style praise and support, but discourage challenges to
their thinking.
Person:
 Ability to sustain defeat
 Ambitious
 Capable of good judgment
 Competitive
 Decisive
 Defensive
 Emotional stability
 Extrovert
 Group oriented
 Intelligent
 Optimistic
 Predictable
 Self-controlled
Process:
Answers how managers manage successfully
• Manage work instead of people
• Plan and organize effectively
• Set goals realistically
• Decisions based on consensus but accept responsibility
• Delegate frequently and effectively
• Rely on others to help solve problems
• Communicate precisely
• Cooperate with others
• Display consistent and dependable behavior
• Win with grace
• Express hostility tactfully
Product:
 Answers how managers manage successfully
• Manage work instead of people
• Plan and organize effectively
• Set goals realistically
• Decisions based on consensus but accept responsibility
• Delegate frequently and effectively
• Rely on others to help solve problems
• Communicate precisely
• Cooperate with others
• Display consistent and dependable behavior
• Win with grace
• Express hostility tactfully
BRIDGING THE GAPS IN MANAGERIAL EFFECTIVENESS

Problems vary widely, and so do their solutions. Sometimes a problem and its solution
are clear, but you don’t know how to get from point A to point B. At other times, you may find it
hard to define what’s wrong or how to fix it. Regardless of what a problem is, you can use a six-
step problem-solving model to address it. This model is highly flexible and can be adapted to suit
various types of problems. It also comes with a flexible set of tools to use at each step. The
model is designed to be followed one step at a time, but you may find that some stages don’t
require as much attention as others. This will depend on your unique situation.

The steps in the problem-solving model are as follows:
Define the problem :
Defining the problem is a crucial step that involves digging deeper to identify what it is
that needs to be solved. The more clearly a problem is defined, the easier you’ll find it to
complete subsequent steps. A symptom is a phenomenon or circumstance that results from a
deeper, underlying condition. It’s common to mistake symptoms for problems themselves – and
so to waste a lot of time and effort on tackling consequences of problems instead of their causes.
To define a problem, you can use gap analysis, which involves comparing your current state to
the future state you want to be in, to identify the gaps between them.
Analyze the problem :
You decide what type of problem it is – whether there’s a clear barrier or circumstance
you need to overcome, or whether you need to determine how to reach a goal. You then dig to
the root causes of the problem, and detail the nature of the gap between where you are and where
you want to be. The five-why analysis is a tool that’ll help you get to the heart of the problem.
Ask “Why?” a number of times to dig through each layer of symptoms and so to arrive at the
problem’s root cause. You can get to the root of a more complicated problem using a cause-and-
effect diagram. A cause is something that produces an effect, result, or consequence – or what
contributed to the current state of affairs. Categories of causes include people, time, and the
environment.
Identify as many potential solutions as you can
Brainstorm creatively – ask lots of questions about the who, what, where, when, and how
of the causes to point to various possibilities. Don’t limit yourself by considering practicalities at
this stage; simply record your ideas.
Choose the best solution :
In evaluating your ideas, more options could present themselves. You could do this by
rating each possible solution you came up with in step 3 according to criteria such as how
effective it will be, how much time or effort it will take, its cost, and how likely it is to satisfy
stakeholders.
Plan of action :
During this step, you determine what steps must be taken, designating tasks where
necessary. And you decide on deadlines for completing the actions and estimate the costs of
implementing them. You also create a contingency plan in case of unforeseen circumstances so
that if anything goes wrong with your plan, you have a “plan B” in place. Typically, this stage
involves narrowing down the possible ways to implement the solution you’ve chosen, based on
any constraints that apply. You also should draw up an action plan. The complexity of the plan
will depend on the situation, but it should include the who, what, and when of your proposed
solution.
Implement the solution :
This is an ongoing process. You need to ensure the required resources remain available
and monitor progress in solving the problem; otherwise, all the work you’ve done might be for
nothing.
MEASURING MANAGERIAL EFFECTIVENESS:
1. Build a Motivated Work Place
As a Manager it is important to know why your employees would want to be motivated

by you. If you have the answer to this question, you will find yourself better equipped to engage
your employees and influence their behaviors that in turn will make them more enthusiastic to do
their job at hand well. Secondly, to recognize that motivation is intrinsic. Each employee draws
his/her motivation from within and external factors like work environment, recognition, pay
checks, bonuses etc only affect/ influence that intrinsic motivation. Thirdly, it is imperative for
every manager to inspire employees to be their best, to take risks and unleash the limitless
potential each one of the have. After all, what else but these can set one apart from being only a
manager and being a managerial leader.
2. What Drives People
Managers need to primarily know what drives the employees. It is important to put
people in jobs that help them meet their individual needs while doing their work/job and that will
reward you with a bunch of motivated employees who will perform their best and that will
benefit the organisation. As a manager it is imperative to appreciate every employee is unique
that their uniqueness should be recognized and each employee should be treated accordingly.
Because each one is unique his/her drive/ motivation is unique too. It is hence necessary to shift
gears and manage them uniquely too. Once you know as a manager what drives each employee,
you can use that to make their work more fulfilling and merging their individual needs to those
of the organisation by providing them work that meets their individual needs.
3. Employees Do It For Themselves

As a manager, if you aim to influence the employees’ motivation, you have to first
understand their reason for doing things. Employees are not truly energized or motivated by your
reasons. They need to know what is in it for them. If you can help them connect their personal
goals to those of the organizations, it will affect each employees’ performance on the job that
they do. It will benefit immensely if you are successful in setting up an approach that promotes
personal and purpose for every employee. As a Manager when you emphasize personal growth
and development as a tool to influence employees’ motivation, you help them maximize their
productivity and help them impact organisation achievement in a positive manner.
4. Encourage Intelligent Risk Taking

It is important to remind the employees the benefits of intelligent risk taking, it is critical
to encourage risk taking behavior as a learned behavior. The more risk they learn to take over
time the greater those risks become and if they are coached well to take intelligent risks it
becomes easier over a period of time and the pay offs are sure to benefit the organisation and you
as a manager.
5. Show the people the Larger Business Environment
As an Influential Manager, it is your responsibility to help employees understand the

organization, its finances, operation mechanisms, competition environment, innovative thinking
to name a few of the facets. It is important to share with the employees about the organizations,
the strategic perspectives rather than just about how to do their jobs or complete their
assignments. As an effective manager, you will stand to gain immensely if you aim to develop
smarter, more skilled and highly motivated employees who shoulder stretched targets and impact
the organisation overall performance. To achieve this, sharing the larger business context and its
nuances is mandatory. This will also foster more ownership behavior among the employees. So,
an effective managerial communication is all about sharing he financial dashboards, operational
efficiency indices etc with your employees help improve collaboration at work.
6. Make Employees Feel Like Partners
The Best Managers make their employees feel like Partners in the organisation rather
than mere team members. Why do they do so? because when employees feel the ownership of
something, they care for it more and work for its betterment, often to achieve the best. It is a
defining quality of a good manager to encourage entrepreneurial thinking among the employees,
explain how the business is run and help employees feel as if they own the business. The
transformation in your thinking as a manager increases the employees’ movement from an
employee to a partner in the business.
7. Know Your Competition
Competitive environment energizes employees and when they who and what they are
competing against, their motivation levels automatically rises. It is great tool to bring people
together and make them perform at higher levels than its competitors that in turn help the
organisation grow. As a Manager you will stand to gain if you help employees to compete in the
market by showing them how to compete by teaching them to learn more about the industry and
stay abreast with the current developments in the market place. You may nominate employees to
track competition data, circulate competition analysis reports, creating a learning repository of
competition success factors etc. Being an effective manager, you may want to induce the culture

of knowing the competition and constantly striving to measure up against them and better the
organisation dashboards. As a manager, it is also you responsibility to ensure management
effectiveness.
8. Nurture creative and innovative thinking
The big leap in any group performance happens as a result of a breakthrough in the
collective thought process. The Big idea gives rise to novel actions that impact organisation
results and growth and that takes them to a different dimension. It is a key responsibility of the
manager to nurture innovative and creative thinking in each employee by using tools like
brainstorming, ideation sessions, investigation of innovative and creative ideas, experiment
creative and innovation solutions at work etc. Continuously emphasizing the positive aspects of
creative solution finding and advantages of innovation approach to work will help foster the
culture of innovative and creative thinking among the employees.
CURRENT INDUSTRIAL AND GOVERNMENT PRACTICES IN THE

MANAGEMENT OF MANAGERIAL EFFECTIVENESS
The government and industries have adopted certain practices to ensure the effectiveness of
managers which involves completion of work on time, effective and efficient output,
management of knowledge and information, careful preparations of meetings and presentations
and follow-up with deviations and corrections to ensure that agreements and commitments have
been fulfilled. Specifically some of those adopted are as follows:
 Sets up procedures to ensure high quality of work (e.g., review meetings).
 Arrange for training and executive development programs
 Involvement in career development program of its employees.
 Monitor the quality of work through performance appraisal.
 Verification of information through feedback.
 Checking the accuracy of one’s own and others’ work.
 Developing and using systems to organize and keep track of information or work
progress.
 Carefully preparing for meetings and presentations.
 Organizing information or materials for others.
 Carefully reviewing and checking the accuracy of information in work reports
(e.g., production, sales, financial performance) provided by management,
management information systems, or other individuals and groups.
Some other areas, which require attention of both the government and the industries
in the management of managerial effectiveness, would be:
Developing Initiative
 Drive : High motivation for work and also encourage others to work
towards a common goal.
 Energy : Enthusiastic in work place.
 Self-starter : Does jobs proactively and seizes the opportunities.
Encouraging self management approach

 Team player : Works in a team, supports and encourages team members.
 Leader : Defines goals and standards of performance, delegates and
allocates work according to abilities.
 Develops subordinates : Identifies, train and involves people in all activities.
 Disciplined : Maintains decorum of the workplace, has respect for seniors and juniors.
Facilitating appropriate Communication

 Articulate : Can communicate (verbal & written) in a fashion, which is
understood and appreciated by people.
 Persuasive : Sticks to a problem until it is resolved.
 Supportive : Supports subordinates in their work.
 Confident : Has confidence in his values and action.
By adopting these practices, the industries can definitely develop an effective manager.
The skills and competencies of their managers would help them perform better in certain
core areas like:
 Ability to plan : Formulate, plans and business goals.
 Organize : Divide jobs into logical entities.
 Execute : Works according to plans.
 Meet Deadlines : Follow a strict schedule and completes a job.
EFFECTIVE MANAGER AS AN OPTIMIZER

Effective manager focuses on what he is doing and efficiency deals with how well he
does with minimum wastage of resources. Since managers deal with input resource that is scarce
such as money, people, equipment, and time, they should be more concerned about its efficient
utility, minimizing resource cost and optimizing the output. It is easier to be effective if one
ignores efficiency.
According to Campbell, in his behavioral approach, effective manager is said to be an
optimizer in utilizing all available and potential resources. Effective managerial job behavior
talks about as “any set of managerial actions believed to be optimal for identifying, assimilating
and utilizing both internal and external resources towards the functioning of the organizational
unit and sustaining in the long run, for which a manager has high degree of responsibility”.
Therefore effective manager is expected to work as an optimizer by focusingon low waste and
high goal attainment

• Effective managers do differently from their less-effective counterparts.
• Have high concern for people and productivity
• Effective managers are able to communicate
• Spend Time in Managing
• Using General Style
• Allow Employees to Influence them
• Have influence upward
• Minimize Status Differences
• Spend Time Managing
The effective manager spend most of their time manager . That is they spend most of their
time identifying opportunity for improvement, locating problems, training subordinates ,
developing, etc. contacts with other in the organization, working through interunit differences
The actions he is to take will arise from the answers a manager gives to these questions.
• What is my potential contribution?
• What are my objectives?
• What does it take to be effective here?
• What needs changing?
• What is organization’s philosophy
• What can I do now?
• How can I improve my superior ‘s effectiveness ?
• How can I improve my coworker’s effectiveness ?
• How can I improve my subordinate ‘s effectiveness ?
• How can I change the technology ?
Components making manager an effective optimizer:

Mentoring:
Mentoring is to support and encourage people to manage their own learning in order that
they may maximise their potential, develop their skills, improve their performance and become
the person they want to be.
Mentoring is a powerful personal development and empowerment tool. It is an effective
way of helping people to progress in their careers and is becoming increasing popular as its
potential is realised. It is a partnership between two people (mentor and mentee) normally
working in a similar field or sharing similar experiences. It is a helpful relationship based upon
mutual trust and respect.
A mentor is a guide who can help the mentee to find the right direction and who can help
them to develop solutions to career issues. Mentors rely upon having had similar experiences to
gain an empathy with the mentee and an understanding of their issues. Mentoring provides the
mentee with an opportunity to think about career options and progress.

A mentor should help the mentee to believe in herself and boost her confidence. A
mentor should ask questions and challenge, while providing guidance and encouragement.
Mentoring allows the mentee to explore new ideas in confidence. It is a chance to look more
closely at yourself, your issues, opportunities and what you want in life. Mentoring is about
becoming more self aware, taking responsibility for your life and directing your life in the
direction you decide, rather than leaving it to chance.
Feedback:
Feedback is a process in which information about the past or the present influences the
same phenomenon in the present or future. As part of a chain of cause-and-effect that forms a
circuit or loop, the event is said to "feed back" into itself.
Counseling:
Personnel/Executive Counseling is a discussion with an employee of a problem that
usually has emotional content in order to help the employee cope with it better way. This process
seeks to improve employee mental health. Merit Talks provides both direct and indirect
counseling.
Many companies have integrated the counseling services in their organisations and
making it a part of their culture. Organisations are offering the service of employee counseling to
its employees.
Managers need to provide, if and when needed, advice to individuals on how to maximize
personal assets and minimize liabilities while accomplishing stated enterprise and personal
objectives. Simply put, employee counseling can be explained as providing help and support to
the employees to face and sail through the difficult times in life. At many points of time in life or
career people come across some problems either in their work or personal life when it starts
influencing and affecting their performance and, increasing the stress levels of the individual.
Counseling is guiding, consoling, advising and sharing and helping to resolve their problems
whenever the need arises.
Discipline:
Discipline is a process that is designed to improve performance or change behavior. The
first definition of "discipline" in most dictionaries is to teach or train. The word "disciple"
certainly is thought of as someone who studies and learns from a "master". Think back to your
upbringing or ask a child to define discipline and you'll likely hear "a time out," the denial or
removal of certain privileges or freedoms, "spanking," etc. In fact, the definition of the word
"discipline" has all of these meanings, but socially and particularly in an employment setting,
employees and bosses most often think about discipline as a punishment.
Discipline can also be punishment where, after being warned that either performance had
to improve significantly (consistently achieving minimally acceptable results) or a behavior had
to be changed immediately (too many tardies, last minute call-ins for absences, getting too many
traffic tickets while operating company vehicles, etc.), a negative consequence is applied. When
discipline is punishment, it is usually after the more positive teach/training attempts at discipline
have failed to achieve the desired result/behavior. In the relationship of boss to employee,
"punishment" discipline usually takes the form of a conditional consequence: "If you do it again,
then this will happen" (reprimand, pay reduction, suspension, demotion, termination). Of course,
depending on your Human Resource Policies and company values, there are some behaviors
where there is no disciplinary process because such behaviors will result in immediate
termination (theft, falsification of information, doing bodily injury to a fellow employee, being
under the influence of drugs/alcohol on the job or when operating company vehicles, sexual
harassment, etc.
In most discipline situations, "consequences" may be applied to achieve the desired performance
or behavior. Consequences can be either "positive" or "negative." Positive consequences can take
many forms--too many to list--and can be as simple as a "thank you" to as complex and material
as a promotion, pay increase, and/or an achievement bonus. Negative consequences usually take
one of these forms in the workplace: reprimand, job re-assignment, pay reduction, suspension,
demotion, or termination.
UNIT 4 – ENVIRONMENTAL ISSUES IN MANAGERIAL

EFFECTIVENESS
ORGANISATION :
Meaning and definition:

Organisation is the foundation upon which the whole structure of management is built.
Organisation is related with developing a frame work where the total work is divided into
manageable components in order to facilitate the achievement of objectives or goals. Thus,
organisation is the structure or mechanism (machinery) that enables living things to work
together. In a static sense, an organisation is a structure or machinery manned by group of
individuals who are working together towards a common goal. Alike 'management', the term
'organisation' has also been used in a number of ways. broadly speaking, the term 'organisation'
is used in four different senses: as a process, as a structure of relationship, as a group of persons
and as a system, as given below:
Organisation as a Process: In this first sense, organisation is treated as a dynamic process and a
managerial activity which is essential for planning the utilization of company's resources, plant
an equipment materials, money and people to accomplish the various objectives.

Organisation as a Framework of Relationship: In the second sense organisation refers to the
structure of relationships and among position jobs which is created to release certain objectives.
The definitions of Henry, Urwick, Farland, Northcourt, Lansburgh and Spriegel Breach, Davis,
Mooney and Reily etc., come under this group. For example: According to Mooney and Reily,
"Organisation is the form of every human association for the attainment of a common purpose."
Organisation as a Group of persons: In the third sense, organisation is very often viewed as a
group of persons contributing their efforts towards certain goals. Organisation begins when
people combine their efforts for some common purpose. It is a universal truth that an individual
is unable ability and resources. Barnard has defined 'Organisation' as an identifiable group of
people contributing their efforts towards the attainment of goals.
Organisation as a System: In the fourth sense, the organisation is viewed as system. System
concepts recognize that organizations are made up of components each of which has unique
properties, capabilities and mutual relationship. The constituent element of a system are linked
together in such complex ways that actions taken by one producer have far reaching effect on
others.
In short, organizing is the determining, grouping and arranging of the various activities deemed
necessary for the attainment of the objectives, the assigning of people to those activities, the
providing of suitable physical factors of environment and the indicating of the relative authority
delegated to each individual charged with the execution of each respective activity.
Different authors have defined organisation in different ways. The main definitions of
organisation are as follows:
 According to keith Davis, "Organisation may be defined as a group of individuals, large

of small, that is cooperating under the direction of executive leadership in
accomplishment of certain common object."
 According to Chester I. Barnard, "Organisation is a system of co-operative activities of
two or more persons."
 According to Louis A. Allen, "Organisation is the process of identifying and grouping the
work to be performed, defining and delegating responsibility and authority, and
establishing relationship for the purpose of enabling people to work most effectively
together in accomplishing objectives."
 According to Mooney and Railey, "Organisation is the form of every human association
for the attainment of a common purpose."
Types of organization:

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. A voluntary association is an organization
consisting of volunteers. Such organizations may be able to operate without legal formalities,
depending on jurisdiction, including informal clubs. Organizations may also operate in secret
and/or illegally in the case of secret societies, criminal organizations and resistance movements.
Characteristics of organization:
The main characteristics or Features of organisation are as follows:
Outlining the Objectives: Born with the enterprise are its long-life objectives of profitable
manufacturing and selling its products. Other objectives must be established by the
administration from time to time to aid and support this main objective.
Identifying and Enumerating the Activities: After the objective is selected, the management
has to identify total task involved and its break-up closely related component activities that are to
be performed by and individual or division or a department.
Assigning the Duties: When activities have been grouped according to similarities and common
purposes, they should be organized by a particular department. Within the department, the
functional duties should be allotted to particular individuals.
Defining and Granting the Authority: The authority and responsibility should be well defined
and should correspond to each other. A close relationship between authority and responsibility
should be established.
Creating Authority Relationship: After assigning the duties and delegations of authority, the
establishment of relationship is done. It involves deciding who will act under whom, who will be
his subordinates, what will be his span of control and what will be his status in the organisation.
Besides these formal relationships, some informal organizations should also be developed.
Importance of Organisation:
It Facilitated Administration and management: Organisation is an important and the only tool
to achieve enterprise goals set b administration and explained by management. A sound
organisation increases efficiency, avoids delay and duplication of work, increases managerial
efficiency, increases promptness, motivates employees to perform their responsibility.

It Help in the Growth of Enterprise: Good organisation is helpful to the growth, expansion and
diversifications of the enterprise.
It Ensures Optimum Use of Human Resources: Good organisation establishes persons with
different interests, skills, knowledge and viewpoints.
It Stimulates Creativity: A sound and well-conceived organisation structure is the source of

creative thinking and initiation of new ideas.
A Tool of Achieving Objectives: Organisation is a vital tool in the hands of the management for
achieving set objectives of the business enterprise.
Prevents Corruption: Usually corruption exists in those enterprises which lack sound
organisation. Sound organization prevents corruption by raising the morale of employees. They
are motivated to work with greater efficiency, honesty and devotion.
Co-ordination in the Enterprises: Different jobs and positions are welded together by
structural relationship of the organisation. The organizational process exerts its due and balanced
emphasis on the co-ordination of various activities.
Eliminates Overlapping and Duplication or work: Over lapping and duplication of work
exists when the work distribution is not clearly identified and the work is performed in a
haphazard and disorganized way. Since a good organisation demands that the duties be clearly
assigned amongst workers, such overlapping and duplication is totally eliminated.
Organisational processes:
1.Review plans and objectives.
Objectives are the specific activities that must be completed to achieve goals. Plans shape the activities
needed to reach those goals. Managers must examine plans initially and continue to do so as plans change
and new goals are developed.

2.Determine the work activities necessary to accomplish objectives.
Although this task may seem overwhelming to some managers, it doesn't need to be. Managers simply list
and analyze all the tasks that need to be accomplished in order to reach organizational goals.

3.Classify and group the necessary work activities into manageable units.
A manager can group activities based on four models of departmentalization: functional, geographical,
product, and customer.
4.Assign activities and delegate authority.

Managers assign the defined work activities to specific individuals. Also, they give each individual the
authority (right) to carry out the assigned tasks.
5.Design a hierarchy of relationships.
A manager should determine the vertical (decision‐making) and horizontal (coordinating) relationships of
the organization as a whole. Next, using the organizational chart, a manager should diagram the
relationships.
ORGANISATIONAL CLIMATE:
Organizational climate (sometimes known as Corporate Climate) is the process of

quantifying the “culture” of an organization, it precedes the notion of organizational culture. It is
a set of properties of the work environment, perceived directly or indirectly by the employees,
that is assumed to be a major force in influencing employee behavior
It is the set of properties of the business environment in a workplace observed by staff

that strongly influence their actions and job performance. For example, a perceptive business
manager might take the trouble to survey employees about the organizational climate to identify
and promote those aspects that are most conducive to achieving corporate objectives.
Organizational climate can be defined as employees' shared perceptions or experiences of

the policies, practices, and procedures of their workplace and the behaviors that get rewarded,
supported, and expected there. Climate exists at the group or organization level of analysis.
While the perceptions reside in individuals, they refer to shared contextual phenomena, such as
organizational routines, and measured in the aggregate they indicate group or organization
phenomena. The usefulness of the concept has been due in part to its ability to capture the human
experience in organizations – how organizations look and feel to members – and also to the fact
that such shared perceptions are found to be related to important unit outcomes, particularly
when climate is operationalized in terms of strategic goals of the organization.
Organizational climate is a relatively ending quality of the internal environment that is

experienced by the members, influences their behavior and can described in terms of values of a
particular set of characteristics of the organization
Organizational climate is the set of characteristics that describe an organization and that
(a) distinguish one organization from other organizations; (b) are relatively enduring over time
and (c) influence the behavior of the people in the organization
Compare these two definitions of “Organizational Climate” with a definition of

“Organizational Culture” as given by Stephen P. Robbins (1986): Organizational Culture is a

relatively uniform perception held of the organization, it has common characteristics, it is
descriptive, it can distinguish one organization from another and it integrates individual, group
and organization system variables.
Dimensions of organisational climate:

Orientation:
The dominant orientation of an organization is the main concern of its members, and this
dimension is an important determinant of climate. If the dominant orientation or concern is to
adhere to established rules, the climate will be characterized by control; on the other hand, if the
orientation is to excel, the climate will be characterized by achievement.
Interpersonal relationships.
An organization's interpersonal-relations processes are reflected in the way in which

informal groups are formed, and these processes affect climate. For example, if groups are
formed for the purpose of protecting their own interests, cliques may develop and a climate of
control may result; similarly, if people tend to develop informal relationships with their
supervisors, a climate of dependency may result.
Supervision.
Supervisory practices contribute significantly to climate. If supervisors focus on helping

their subordinates to improve personal skills and chances of advancement, a climate
characterized by the extension motive may result; if supervisors are more concerned with
maintaining good relations with their subordinates, a climate characterized by the affiliation
motive may result.
Problem management.
Problems can be seen as challenges or as irritants. They can be solved by the supervisor
or jointly by the supervisor and the subordinate(s) concerned, or they can be referred to a higher
level. These different perspectives and ways of handling problems contribute to the creation of
an organization's climate.
Management of mistakes:
Supervisors' attitudes toward subordinate mistakes develop the organizational

orientation, which is generally one of annoyance or concern or tolerance. An organization's
approach to mistakes influences the climate.
Conflict management:

Conflicts may be seen as embarrassing annoyances to be covered up or as problems to be
solved. The process of dealing with conflicts has as significant an effect on climate as that of
handling problems or mistakes.
Communication:
Communication, another important determinant of climate, is concerned with the flow of

information: its direction (top-down, bottom-up, horizontal), its dispersement (selectively or to
everyone concerned), its mode (formal or informal), and its type (instructions or feedback on the
state of affairs).
Decision making:
An organization's approach to decision making can be focused on maintaining good

relations or on achieving results. In addition, the issue of who makes decisions is important:
people high in the hierarchy, experts, or those involved in the matters about which decisions are
made. These elements of decision making are relevant to the establishment of a particular
climate.
Trust:
The degree of trust or its absence among various members and groups in the organization
affects climate. The issue of who is trusted by management and to what degree is also relevant.
Management of rewards:
Rewards reinforce specific behaviors, thereby arousing and sustaining specific motives.
Consequently, what is rewarded in an organization influences the motivational climate.
Risk taking:
How people respond to risks and whose help is sought in situations involving risk are
important determinants of climate.
Innovation and change :
Who initiates change, how change and innovation are perceived, and how change is
implemented are all critical in establishing climate.
Factors affecting Organisational climate:

1.Structure - feelings about constraints and freedom to act and the degree of formality or
informality in the working atmosphere.
2.Responsibility - the feeling of being trusted to carry out important work.

3.Risk - the sense of riskiness and challenge in the job and in the organization; the relative
emphasis on taking calculated risks or playing it safe.
4.Warmth - the existence of friendly and informal social groups.
5.Support - the perceived helpfulness of managers and co-workers; the emphasis (or lack of
emphasis) on mutual support.
6.Standards - the perceived importance of implicit and explicit goals and performance
standards; the emphasis on doing a good job; the challenge represented in personal and team
goals.
7.Conflict - the feeling that managers and other workers want to hear different opinions; the
emphasis on getting problems out into the open rather than smoothing them over or ignoring
them.
8.Identity - the feeling that you belong to a company; that you are a valuable member of a
working team.
9.Autonomy - the perception of self-determination with respect to work procedures, goals and
priorities;
10.Cohesion - the perception of togetherness or sharing within the organization setting, including
the willingness of members to provide material risk;
11.Trust - the perception of freedom to communicate openly with members at higher

organizational levels about sensitive or personal issues, with the expectation that the integrity of
such communications will not be violated;
12.Resource - the perception of time demands with respect to task competition and performance
standards;
13.support - the perception of the degree to which superiors tolerate members' behaviour,
including willingness to let members learn from their mistakes without fear of reprisal;
14.Recognition – the perception that members' contributions to the organization are

acknowledged;
15.Fairness - the perception that organizational policies are non-arbitrary
16.Innovation - the perception that change and creativity are encouraged, including risk-taking
into new areas where the member has little or no prior experience.
LEADERSHIP:

Leadership has been described as a process of social influence in which one person can
enlist the aid and support of others in the accomplishment of a common task
The ability of a company's management to make sound decisions and inspire others to
perform well. Effective leaders are able to set and achieve challenging goals, to take swift and
decisive action even in difficult situations, to outperform their competition, to take calculated
risks and to persevere in the face of failure. Strong communication skills, self-confidence, the
ability to manage others and a willingness to embrace change also characterize good leaders.
Leadership in the business world requires harnessing the energy and efforts of a group of
individuals so that their outlook is advanced from an unremarkable Point A to a very desirable
Point B — from bad to good, slow to fast, red to black. During that process, leadership manifests
in projecting your expertise in a way that gains the confidence of others. Ultimately, leadership
becomes about trust — when that confidence inspires them to align their vision and level of
commitment for the betterment of the company.
Leadership is the ability to take an average team of individuals and transform them into
superstars. The best leader is the one who inspires his workers to achieve greatness each and
every day.
Leadership is actions committed by a person or group that produce an output or result. It

simply helps people to get things done. It is not based on position in a hierarchy.
Leadership is the ability to inspire motivation in others to move toward a desirable vision.
While management is focused on tasks, leadership is focused on the person. All in all, the best
leadership drives change and long lasting motivation.
Characteristics of Leadership:
Proactive vs. Reactive
The exceptional leader is always thinking three steps ahead. Working to master his/her
own environment with the goal of avoiding problems before they arise.
Flexible/Adaptable
How do you handle yourself in unexpected or uncomfortable situations? An effective

leader will adapt to new surroundings and situations, doing his/her best to adjust.
A Good Communicator

As a leader, one must listen...a lot! You must be willing to work to understand the needs
and desires of others. A good leader asks many questions, considers all options, and leads in the
right direction.
Respectful
Treating others with respect will ultimately earn respect.
Quiet Confidence
Be sure of yourself with humble intentions.
Enthusiastic
Excitement is contagious. When a leader is motivated and excited about the cause people
will be more inclined to follow.
Open-Minded
Work to consider all options when making decisions. A strong leader will evaluate the
input from all interested parties and work for the betterment of the whole.
Resourceful
Utilize the resources available to you. If you don't know the answer to something find
out by asking questions. A leader must create access to information.
Rewarding
An exceptional leader will recognize the efforts of others and reinforce those actions. We
all enjoy being recognized for our actions!
Well Educated
Knowledge is power. Work to be well educated on community policies, procedures,

organizational norms, etc. Further, your knowledge of issues and information will only increase
your success in leading others.
Open to Change
A leader will take into account all points of view and will be willing to change a policy,
program, cultural tradition that is out-dated, or no longer beneficial to the group as a whole.
Interested in Feedback
How do people feel about your leadership skill set? How can you improve? These are
important questions that a leader needs to constantly ask the chapter. View feedback as a gift to
improve.
Evaluative
Evaluation of events and programs is essential for an organization/group to improve and

progress. An exceptional leader will constantly evaluate and change programs and policies that
are not working.
Organized
Are you prepared for meetings, presentations, events and confident that people around
you are prepared and organized as well?
Consistent
Confidence and respect cannot be attained without your leadership being consistent.
People must have confidence that their opinions and thoughts will be heard and taken into
consideration.
Delegator
An exceptional leader realizes that he/she cannot accomplish everything on his own. A
leader will know the talents and interests of people around him/her, thus delegating tasks
accordingly.
Initiative
A leader should work to be the motivator, an initiator. He/she must be a key element in
the planning and implementing of new ideas, programs, policies, events, etc.
Importance of Leadership:
Initiates action: Leader is a person who starts the work by communicating the policies and plans
to the subordinates from where the work actually starts.
Motivation: A leader proves to be playing an incentive role in the concern’s working. He

motivates the employees with economic and non-economic rewards and thereby gets the work
from the subordinates.
Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to perform
their work effectively and efficiently.

Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates, explaining them clearly their role and giving
them guidelines to achieve the goals effectively. It is also important to hear the employees with
regards to their complaints and problems.
Building morale- Morale denotes willing co-operation of the employees towards their work and
getting them into confidence and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their abilities as they work to
achieve goals.
Builds work environment- Management is getting things done from people. An efficient work
environment helps in sound and stable growth. Therefore, human relations should be kept into
mind by a leader. He should have personal contacts with employees and should listen to their
problems and solve them. He should treat employees on humanitarian terms.
Co-ordination- Co-ordination can be achieved through reconciling personal interests with

organizational goals. This synchronization can be achieved through proper and effective co-
ordination which should be primary motive of a leader.
GROUP INFLUENCES:
Group – Meaning and Definition:

Groups, however, can mean a collection of three or more individuals who interact about
some common problem or interdependent goal and can exert mutual influence over one another.
Another popular definition by Baron and Byrne (1991), say “a group is two or more
interacting persons who share common goals, have a stable relationship and somehow
interdependent and perceive that they are in fact part of the group.”
Criteria:
The following criteria make a group;
 The people interact with one another either directly or indirectly
 They must be interdependent in some regard, i.e. what affects one must affect others to
some extent.
 The relationship must be relatively stable, i.e. must persist over some period of time.
(weeks, months, years).
 Individuals involved must share common goals - Members must perceive themselves as
being part of the group.

Groups and the Individual:
Individuals make a group. Individuals constitute even formal organizations. The
organization brings together skillful individuals and sometimes even those without particular
skills to perform functions that would eventually lead to the attainment of its objectives. Like the
human body, each part must work in cohesion to attain good health. For these objectives to be
attained, they first of all must be made known to members of the organization. There are rules
and regulations that guide the activities of the members towards the goal.
Communication:
To get members of the group to work towards attaining group goals, the goals must be
communicated to them. Sometimes they must be part of formulating the goals. This
communication must be done in simple and clear language for members to understand, because it
is only when they understand, that they can work to achieve the goals. Instructions that are given
should be understood. It is the duty of the giver of instructions to make sure the message is clear,
as well as the responsibility of the receiver to make sure that the instruction given is understood.
When this is achieved, time, money and resources are then effectively utilized to the maximum.
Authority:
There are authority structures in every group. Authority is meant to facilitate the
maintenance of order, and the exercise of power to achieve the group’s goals. If there were no
authority structure, there would be indiscipline, disorder and chaos. Authority is systematically
organized through a hierarchy. It flows from the top to the bottom. For instance, it is not every
one who can exercise authority. The exercise of authority is placed in the hands of people within
the group, who are qualified to do so. They are qualified by education, training and sometimes
length of time in the organization or by election. Age does not matter in the exercise of authority.
All these are done on purpose – to achieve the goals of the organization.
Rules and Regulations:

Every group or organization has rules and regulations. Rules and regulations are the norms that
guide conduct within the group. They stipulate what can, must be done and cannot be done.
Members ought to be aware of these rules and regulations, because when they are violated,
ignorance cannot be cited as an excuse. Keeping the rules bring about consistency, peace and
harmony.
Informal Groups
Informal groups evolve spontaneously within organizations, and they arise from social
relations and interactions between members of the wider organization. The rules governing them
are that of social norms, fellow feeling, goodwill, common interest and kinship. Sometimes,

people come together by class. As individuals pursue organizational goals, they interact.
Individuals as they work together, develop similar and common interests that are not specifically
that of the organization, but their own. It is this condition that leads to the formation of informal
groups within an organization.
The existence of informal groups within an organization can be either positive or

negative with regards to organizational goals, depending on the kind of leadership style that is
practiced within the organization.
The informal group can be a source of maximizing productivity when properly viewed.
When people with the same interest and characteristics converge, they evolve and formulate their
own unwritten codes that guide their conduct. They device ways of motivating themselves, and
are able to achieve goals that they have set for themselves. And subsequently, they are able to
achieve the wider goals of the organization. They take pride in what they have achieved for the
organization as a group and would therefore; function effectively when they are given the right
atmosphere.
Besides, when individuals are made to see the achievement of group goals as a means to
attaining to some extent their individual goals, they would do everything to achieve the goals.
JOB CHALLENGE:
The key challenges faced by managers are listed below.
Employee Relations
Managers are often responsible for screening, interviewing, hiring and training
employees. This can be a time-consuming process. It also can be challenging to match qualified
employees with the appropriate shifts and monitor employee interaction and productivity.
Managers must help employees plan projects, conduct performance evaluations, and, where
appropriate, develop plans for corrective action with employees who need it.
Goal-Setting
A manager is tasked with helping employees set appropriate individual, team and
departmental goals. This involves assessing the abilities of staffers and developing time frames
for the completion of goals. In many instances, goal-setting is done in conjunction with strategic
planning and company-wide budgeting. These functions of management can involve a significant
investment of time.
Client Services
Managers are challenged with keeping clients and customers happy. This might include
handling customer complaints and concerns and ensuring employees receive appropriate and

ongoing customer service training. A manager is often judged by his superiors based on the
business' earnings, which means he must maintain a high level of customer service and
efficiency.
Productivity
A manager has his own professional goals to meet in terms of securing market share,
production quotas and profits. This can be a challenge, particularly in a slow economy, when
competition is high or he is understaffed. A manager’s own income might be tied to the
profitability of the team or division he oversees, which means his own performance is connected
to that of his employees.
Motivation
To get the highest productivity from his team, a manager must motivate employees and
continually build morale. This cab be accomplished through mentoring, professional evaluations
or development of incentive plans. This management function requires significant time and effort
to be successful. Making time for such activities can be challenging for a manager already tasked
with numerous other responsibilities.
Employment Law
Employment law is continually changing, and a manager is challenged with staying

current on state and federal rules and regulations. He might work in conjunction with a human
resources division in a large company, a hiring manager in a small company, or perform this
function on his own. A company can face stiff financial penalties if it violates employment law,
and the challenge of oversight can be a heavy burden for a manager.
COMPETITION:
Businesses exist in a competitive environment. For example, supermarkets are in fierce
competition with each other to provide the best possible value for money goods, and to offer the
most suitable range of products for their customers. Businesses compete in many ways. One of
the most obvious ways is over price. For example, book sellers on the Internet compete to supply
the same book at the cheapest price to customers. However, in addition there are many forms of
non-price competition, e.g. location - being at the most convenient location for customers,
customer service - giving the best personal attention to the needs of customers, customization of
products - providing additional features to products to cater for particular customer groups e.g.
route finding satellite navigation on some models of cars, other forms of non-price competition.
Direct competition exists where organisations produce similar products that appeal to the
same group of consumers. For example when two supermarkets offer the same range of
chocolate bars for sale.

Indirect competition exists when different firms make or sell items which although not in
head to head competition still compete for the same £ in the customers pocket. For example, a
High Street shop selling CD's may be competing with a cinema that is also trying to entice young
shoppers to spend money on leisure activities.
Competitive Advantage:
Competitive advantage seeks to address some of the criticisms of comparative advantage.
Michael Porter proposed the theory in 1985. Porter emphasizes productivity growth as the focus
of national strategies. Competitive advantage rests on the notion that cheap labor is ubiquitous
and natural resources are not necessary for a good economy. The other theory, comparative
advantage, can lead countries to specialize in exporting primary goods and raw materials that
trap countries in low-wage economies due to terms of trade. Competitive advantage attempts to
correct for this issue by stressing maximizing scale economies in goods and services that garner
premium prices
Competitive advantage occurs when an organization acquires or develops an attribute or

combination of attributes that allows it to outperform its competitors. These attributes can
include access to natural resources, such as high grade ores or inexpensive power, or access to
highly trained and skilled personnel human resources. New technologies such as robotics and
information technology can provide competitive advantage, whether as a part of the product
itself, as an advantage to the making of the product, or as a competitive aid in the business
process (for example, better identification and understanding of customers).
Competitive Strategies:
Cost Leadership Strategy
The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in
the industry. The challenge of this strategy is to earn a suitable profit for the company, rather
than operating at a loss and draining profitability from all market players. Companies such as
Walmart succeed with this strategy by featuring low prices on key items on which customers are
price-aware, while selling other merchandise at less aggressive discounts. Products are to be
created at the lowest cost in the industry. An example is to use space in stores for sales and not
for storing excess product.
Differentiation Strategy
The goal of Differentiation Strategy is to provide a variety of products, services, or

features to consumers that competitors are not yet offering or are unable to offer. This gives a
direct advantage to the company which is able to provide a unique product or service that none
of its competitors is able to offer. An example is Dell which launched mass-customizations on
computers to fit consumers' needs. This allows the company to make its first product to be the
star of its sales.
Innovation Strategy
The goal of Innovation Strategy is to leapfrog other market players by the introduction of
completely new or notably better products or services. This strategy is typical of technology
start-up companies which often intend to "disrupt" the existing marketplace, obsolescing the
current market entries with a breakthrough product offering. It is harder for more established
companies to pursue this strategy because their product offering has achieved market acceptance.
Apple has been a notable example of using this strategy with its introduction of iPod personal
music players, and iPad tablets. Many companies invest heavily in their research and
development department to achieve such statuses with their innovations.
Operational Effectiveness Strategy
The goal of Operational Effectiveness as a strategy is to perform internal business

activities better than competitors, making the company easier or more pleasurable to do business
with than other market choices. It improves the characteristics of the company while lowering
the time it takes to get the products on the market with a great start. State Farm Insurance
pursues this strategy by promoting their agents as "good neighbors" who actively help customers.
MANAGERIAL STYLES:
Autocratic:
An autocratic management style is one where the manager makes decisions unilaterally,
and without much regard for subordinates. As a result, decisions will reflect the opinions and
personality of the manager, which in turn can project an image of a confident, well managed
business. On the other hand, strong and competent subordinates may chafe because of limits on
decision-making freedom, the organization will get limited initiatives from those "on the front
lines", and turnover among the best subordinates will be higher.
There are two types of autocratic leaders:
a directive autocrat makes decisions unilaterally and closely supervises subordinates
a permissive autocrat makes decisions unilaterally, but gives subordinates latitude in carrying out
their work
Consultative:
A more paternalistic form is also essentially dictatorial. However, decisions take into
account the best interests of the employees as well as the business. Communication is again

generally downward, but feedback to the management is encouraged to maintain morale. This
style can be highly advantageous when it engenders loyalty from the employees, leading to a
lower labor turnover, thanks to the emphasis on social needs. On the other hand for an autocratic
management style the lack of worker motivation can be typical if no loyal connection is
established between the manager and the people who are managed. It shares disadvantages with
an autocratic style, such as employees becoming dependent on the leader.
Persuasive:
A persuasive management style involves the manager sharing some characteristics with
that of an autocratic manager. The most important aspect of a persuasive manager is that they
maintain control over the entire decision making process. The most prominent difference here is
that the persuasive manager will spend more time working with their subordinates in order to try
to convince them of the benefits of the decision that have been made. A persuasive manager is
more aware of their employees, but it would be incorrect to say that the persuasive style of
management is more inclusive of employees.
Just as there are occasions where the use of an autocratic management style would be
appropriate, there are also instances where a company will benefit from a persuasive
management style. For example, if a task that needs to be completed but it is slightly complicated
it may be necessary to rely upon input from an expert. In such a situation, the expert may take
time to explain to others why events are happening in the order in which they will occur, but
ultimately the way in which things are done will be that person's responsibility. In those
circumstances, they are highly unlikely to delegate any part of the decision making process to
those who are lower down in the hierarchy.
Democratic:
In a democratic style, the manager allows the employees to take part in decision-making:
therefore everything is agreed upon by the majority. The communication is extensive in both
directions (from employees to leaders and vice-versa). This style can be particularly useful when
complex decisions need to be made that require a range of specialist skills: for example, when a
new ICT system needs to be put in place, and the upper management of the business is computer-
illiterate. From the overall business's point of view, job satisfaction and quality of work will
improve, and participatory contributions from subordinates will be much higher. However, the
decision-making process could be severely slowed down unless decision processes are
streamlined. The need for consensus may avoid taking the 'best' decision for the business unless
it is managed or limited. As with the autocratic leaders, democratic leaders are also two types i.e.
permissive and directive.
Management By walking Around:

Management by Walking Around (MBWA) is a classic technique used by managers who
are proactive listeners. Managers using this style gather as much information as possible so that a
challenging situation doesn't turn into a bigger problem. Listening carefully to employees'
suggestions and concerns will help evade potential crises. MBWA benefits managers by
providing unfiltered, real-time information about processes and policies that is often left out of
formal communication channels. By walking around, management gets an idea of the level of
morale in the organization and can offer help if there is trouble.
A potential concern of MBWA is that the manager will second-guess employees'

decisions. The manager must maintain his or her role as coach and counselor, not director. By
leaving decision-making responsibilities with the employees, managers can be assured of the
fastest possible response time.
One downside is that MBWA poses the threat of the manager losing authority as the
employees feel that they can run the business.
UNIT 5 – DEVELOPING THE WINNING EDGE
ORGANISATIONAL AND MANAGERIAL EFFORTS

Business organizations are coming to view knowledge as their most valuable and
strategic resource, and bringing that knowledge to bear on problems and opportunities as their
most important capability. They are realizing that to remain competitive they must explicitly
manage their intellectual resources and capabilities. To this end, many organizations have
initiated a range of knowledge management projects and programs. The primary focus of these
efforts has been on developing new applications of information technology to support the digital
capture, storage, retrieval and distribution of an organization's explicitly documented
knowledge .A smaller number of organizations, on the other hand, believes that the most
valuable knowledge is the tacit knowledge existing within peoples' heads, augmented or shared
via interpersonal interaction and social relationships. To build their intellectual capital, those
organizations are utilizing the "social capital" that develops from people interacting repeatedly
over time . Many are experimenting with new organizational cultures, forms and reward systems
to enhance those social relationships.
The strengths, weaknesses, opportunities, and threats (SWOT) framework is perhaps the
most well-known approach to defining strategy, having influenced both practice and research for
over 30 years. Performing a SWOT analysis involves describing and analyzing a firm’s internal

capabilities – its strengths and weaknesses – relative to the opportunities and threats of its
competitive environment. Organizations are advised to take strategic actions to preserve or
sustain strengths, offset weaknesses, avert or mitigate threats, and capitalize on opportunities.
Strategy can be seen as the balancing act performed by the firm as it straddles the high wire
strung between the external environment (opportunities and threats) and the internal capabilities
of the firm (strengths and weaknesses).
Application of the SWOT framework has been dominated over the last 20 years by Porter’s
"five-forces" model. This model focuses on the external side of strategy, helping firms to analyze
the forces in an industry which give rise to opportunities and threats. Industries structured so as
to enable firms to dictate terms to suppliers and customers, and to provide barriers to new
entrants and substitute products are seen as favorable. Strategy becomes a matter of choosing an
appropriate industry and positioning the firm within that industry according to a generic strategy
of either low cost or product differentiation.
While enjoying much popularity, in no small part because it was perhaps the first attempt to
apply solid economic thinking to strategic management in a practical and understandable way,
Porter's model has come under criticism. The main argument is that the model addresses the
profitability of industries rather than individual firms, and therefore does not help particular
firms to identify and leverage unique and therefore sustainable advantages. Its underlying
economic theory assumes that the characteristics of particular firms, per se, do not matter with
regard to profit performance. Rather it is the overall pattern of relationships among firms in the
industry that makes the difference. If the industry as a whole is structured properly (i.e., with
sufficient barriers and other impediments to competition), then all firms should realize excess
returns.
It turns out, however, that unique characteristics of particular firms within an industry can
make a difference in terms of profit performance. To put balance back into the original notion of
business strategy, recent work in the area of strategic management and economic theory has
begun to focus on the internal side of the equation – the firm’s resources and capabilities . This
new perspective is referred to as the resource-based view of the firm. Strategic management
models traditionally have defined the firm’s strategy in terms of its product/market positioning –
the products it makes and the markets it serves. The resource-based approach suggests, however,
that firms should position themselves strategically based on their unique, valuable and inimitable
resources and capabilities rather than the products and services derived from those capabilities.
Resources and capabilities can be thought of as a platform from which the firm derives various
products for various markets. Leveraging resources and capabilities across many markets and
products, rather than targeting specific products for specific markets, becomes the strategic

driver. While products and markets may come and go, resources and capabilities are more
enduring. Therefore, a resource-based strategy provides a more long-term view than the
traditional approach, and one more robust in uncertain and dynamic competitive environments.
Competitive advantage based on resources and capabilities therefore is potentially more
sustainable than that based solely on product and market positioning.
SELF DEVELOPMENT
Personal development includes activities that improve awareness and identity, develop
talents and potential, build human capital and facilitate employability, enhance quality of life and
contribute to the realization of dreams and aspirations. The concept is not limited to self-help but
includes formal and informal activities for developing others in roles such as teacher, guide,
counselor, manager, life coach or mentor. When personal development takes place in the context
of institutions, it refers to the methods, programs, tools, techniques, and assessment systems that
support human development at the individual level in organizations.
The business-to-business market also involves programs - in this case ones sold to
companies and to governments to assess potential, to improve effectiveness, to manage work-life
balance or to prepare some entity for a new role in an organization. The goals of these programs
are defined with the institution or by the institution and the results are assessed. With the
acceptance of personal development as a legitimate field in higher education, universities and
business schools also contract programs to external specialist firms or to individuals.
A partial list of business-to-business programs might include:
 courses and assessment systems for higher education organizations for their
students
 management services to employees in organizations through:
 training
 training and development programs
 personal-development tools
 self-assessment
 feedback
 coaching
 mentoring

Some consulting firms specialize in personal development but as of 2009 generalist firms
operating in the fields of human resources, recruitment and organizational strategy have entered
what they perceive as a growing market, not to mention smaller firms and self-employed
professionals who provide consulting, training and coaching.
At the level of the individual, personal development includes the following activities:
 improving self-awareness
 improving self-knowledge
 building or renewing identity/self-esteem
 developing strengths or talents
 improving wealth
 spiritual development
 identifying or improving potential
 building employability or human capital
 enhancing lifestyle or the quality of life
 improving health
 fulfilling aspirations
 initiating a life enterprise or personal autonomy
 defining and executing personal development plans
 improving social abilities
The concept covers a wider field than self-development or self-help: personal development
also includes developing other people. This may take place through roles such as those of a
teacher or mentor, either through a personal competency (such as the skill of certain managers in
developing the potential of employees) or a professional service (such as providing training,
assessment or coaching).
Beyond improving oneself and developing others, personal development is a field of practice
and research. As a field of practice it includes personal development methods, learning
programs, assessment systems, tools and techniques. As a field of research, personal

development topics increasingly appear in scientific journals, higher education reviews,
management journals and business books.
Any sort of development , whether economic, political, biological, organizational or personal

requires a framework if one wishes to know whether change has actually occurred. In the case of
personal development, an individual often functions as the primary judge of improvement, but
validation of objective improvement requires assessment using standard criteria. Personal
development frameworks may include goals or benchmarks that define the end-points, strategies
or plans for reaching goals, measurement and assessment of progress, levels or stages that define
milestones along a development path, and a feedback system to provide information on changes.
Employee benefits have the purpose of improving satisfaction, motivation and loyalty.
Employee surveys may help organizations find out personal-development needs, preferences and
problems, and they use the results to design benefits programs. Typical programs in this category
include:
 work-life balance
 time management
 stress management
 health programs
 counseling
Many such programs resemble programs that some employees might conceivably pay for
themselves outside work: yoga, sports, martial arts, money-management, positive psychology,
NLP, etc.
As an investment, personal development programs have the goal of increasing human capital
or improving productivity, innovation or quality. Proponents actually see such programs not as a
cost but as an investment with results linked to an organization’s strategic development goals.
Employees gain access to these investment-oriented programs by selection according to the value
and future potential of the employee, usually defined in a talent management architecture
including populations such as new hires, perceived high-potential employees, perceived key
employees, sales staff, research staff and perceived future leaders. Organizations may also offer
other programs to many or even all employees. Typical programs focus on career-development,
personal effectiveness, teamwork, and competency-development. Personal development also
forms an element in management tools such as personal development planning, assessing one's
level of ability using a competency grid, or getting feedback from a 360 questionnaire filled in
by colleagues at different levels in the organization.
NEGOTIATION SKILLS

It is inevitable that, from time-to-time, conflict and disagreement will arise as the
differing needs, wants, aims and beliefs of people are brought together. Without negotiation,
such conflicts may lead to argument and resentment resulting in one or all of the parties feeling
dissatisfied. The point of negotiation is to try to reach agreements without causing future barriers
to communications.
Stages of Negotiation
In order to achieve a desirable outcome, it may be useful to follow a structured approach

to negotiation. For example, in a work situation a meeting may need to be arranged in which all
parties involved can come together. The process of negotiation includes the following stages:
 Preparation
 Discussion
 Clarification of goals
 Negotiation towards a WIN-WIN situation
 Agreement
 Implementation of a course of action
1. Preparation
Before any negotiation takes place, a decision needs to be taken as to when and where a
meeting will take place to discuss the problem and who will attend. Setting a limited time-scale
can also be helpful to prevent the disagreement continuing.
This stage involves ensuring all the pertinent facts of the situation are known in order to
clarify your own position. In the work example above, this would include knowing the ‘rules’ of
your organisation, to whom help is given, when help is not felt appropriate and the grounds for
such refusals. Your organisation may well have policies to which you can refer in preparation
for the negotiation.
Undertaking preparation before discussing the disagreement will help to avoid further
conflict and unnecessary wasting time during the meeting.
2. Discussion
During this stage, individuals or members of each side put forward the case as they see it,
that is their understanding of the situation. Key skills during this stage are questioning, listening
and clarifying. Sometimes it is helpful to take notes during the discussion stage to record all
points put forward in case there is need for further clarification. It is extremely important to

listen, as when disagreement takes place it is easy to make the mistake of saying too much and
listening too little. Each side should have an equal opportunity to present their case.
3. Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the disagreement
need to be clarified. It is helpful to list these in order of priority. Through this clarification it is
often possible to identify or establish common ground.
4. Negotiate for a WIN-WIN Outcome
This stage focuses on what is termed a WIN-WIN outcome where both sides feel they
have gained something positive through the process of negotiation and both sides feel their point
of view has been taken into consideration. A WIN-WIN outcome is usually the best outcome,
however it may not always be possible but through negotiation it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this

point. Compromises are often positive alternatives which can often achieve greater benefit for
all concerned rather than holding to the original positions.
5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and interests
have been considered. It is essential to keep an open mind in order to achieve a solution. Any
agreement needs to be made perfectly clear so that both sides know what has been decided.
6. Implementing a Course of Action
From the agreement, a course of action has to be implemented, to carry through the
decision. If the process of negotiation breaks down and agreement cannot be reached, then re-
scheduling a further meeting is called for. This avoids all parties becoming embroiled in heated
discussion or argument, which not only wastes valuable time but can also damage future working
relationships.
At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas
or interests should be taken into account and the situation looked at afresh. At this stage it may
also be helpful to look at other alternative solutions and/or bring in another person to mediate.
Apart from situations when it is appropriate to employ this more formal process of
negotiation, you will no doubt encounter one-to-one situations where there is a need to negotiate
informally. At such a time when a difference of opinion arises, it might not be possible or
appropriate to go through the stages set out above in a formal manner. Nevertheless,
remembering the key points in the stages of formal negotiation may be very helpful in a variety
of informal situations.

DEVELOPMENT OF THE COMPETITIVE SPIRIT
Competition is one of the most powerful forces which shape the spiritual, moral and
social lives of both children and adults in our society but, like aspects of spirituality, it is
ambiguous . When it is well managed, competition adds enjoyment to our lives and is a stimulus
for attaining higher quality, but when allowed to fall into the hands of the strong and the able, it
can lead to discouragement and low self esteem for others, and it can serve as an instrument to
widen the gulf between the powerful and the powerless.
Competition takes many forms and is manifest at every level of life, from the biological
right up to the most abstract aspects of our cultural life. My method will be first to clarify the
concept of competition, then to distinguish four layers of competition as it affects our lives
today, and to arrange these four spheres or layers of competition in descending order from
abstract to concrete, showing that the influence permeates down from the higher levels. I shall
accept a broadly Marxian understanding of the spiritual life as being influenced by the material
life rather than the opposite, Hegelian view of the spirit realising itself in human history and
society , but I shall follow Antonio Gramsci , Cornelius Castoriadis and other contemporary
theorists of ideology in suggesting that the influence of the material base upon the spiritual and
cultural super-structure is more mutual than was apparent to the 19th century founders of social
theory. In addition, I will show that the material basis of culture and spirituality in daily work has
itself been spiritualised through the encapsulation of work, especially dead labour, in the form of
money, and that money has become yet further spiritualised and abstracted until reaching the
extra-territorial and globalised forms of today. As we attempt to understand the role of
competition in the lives of young people today we must grasp the fact that the Marxian concept
of inversion has been itself inverted. Using the concept of projection, Marx showed that the
material relations of society produce a mirror-like image in the realm of culture, law, the arts and
especially religion. This inverted social reality in the sense that whereas the mythology declares
that the earthly realm is a replica of the ruling heavenly realm, the truth is exactly the opposite -
the heavenly realm is merely a picture of the earthly realm, confirming and justifying it (Marx,
1992). The secondary inversion, which is the crucial feature in understanding spirituality today,
occurs as work is turned into capital, and capital becomes more and more abstract and
increasingly alienated from work. The layer of highly abstract money which now surrounds the
earth and dominates human culture is not so much a projection of the material base as its
sublimation or distillation into forms which are almost entirely invisible and imperceptible and
yet which shape the immersions, the dreams and the general character of human beings. This
heavenly realm of globalised money is no mere projected picture which can be changed by
attacking the material base from which it springs, but is the most powerful social and political
force in the world, having attained autonomy. The base has been transfigured into the
superstructure. The base can only be reached through the superstructure. Moreover, whereas the
God who reigned in the old projected superstructure was nothing but a reification of material
power, the deity which now reigns in the basic superstructure is no phantom, no mere epic

adventure film shown on the darkened screens of our imagination, but is the actual source of the
power of the world.
Competition occurs when life strives with life for success and mastery. Inanimate things
cannot be said to compete. Although they vary in brightness the stars cannot be said to compete
for our attention. We may, however, say that crowded plants compete for the sunshine and that
the hundreds of thousands of sperm compete for possession of the ovum . When life is conscious,
competition takes more deliberate forms. All competition involves striving but not all strife is
competitive. If I struggle to strengthen my muscles by lifting weights alone in my room, I can
only be said to be competing in the attenuated sense that I may compete with myself. Similarly, I
may play chess against myself, but genuine competition requires the presence of another person
since in real competition there must be a loser as well as a winner. When I play chess against
myself there is no loser. Competition is often contrasted with cooperation but there are many
mixed forms. Opposing sporting teams must cooperate in observation of the rules of the game,
and individual members of a team cooperate with each other to compete with the rival team.
In order to highlight my view about the values of competition cascading downwards, I

will discuss the four spheres of competition in descending order of power. First, we will deal
with pure money competition, then with competition between national and transnational
companies, then with competition between governments or countries and finally we will consider
competition at the immediate of face-to-face relationships, in the home, the school and on the
sporting field.
KNOWLEDGE MANAGEMENT:
Knowledge management (KM) comprises a range of strategies and practices used in an
organisation to identify, create, represent, distribute, and enable adoption of insights and
experiences. Such insights and experiences comprise knowledge, either embodied in individuals
or embedded in organisations as processes or practices. More recently, other fields have started
contributing to KM research; these include information and media, computer science, public
health, and public policy.
Many large companies and non-profit organisations have resources dedicated to internal
KM efforts, often as a part of their business strategy, information technology, or human resource
management departments. Several consulting companies also exist that provide strategy and
advice regarding KM to these organisations.
Knowledge management efforts typically focus on organisational objectives such as

improved performance, competitive advantage, innovation, the sharing of lessons learned,
integration and continuous improvement of the organisation. KM efforts overlap with
organisational learning, and may be distinguished from that by a greater focus on the
management of knowledge as a strategic asset and a focus on encouraging the sharing of

knowledge. It is seen as an enabler of organisational learning and a more concrete mechanism
than the previous abstract research.
History
KM efforts have a long history, to include on-the-job discussions, formal apprenticeship,

discussion forums, corporate libraries, professional training and mentoring programs. More
recently, with increased use of computers in the second half of the 20th century, specific
adaptations of technologies such as knowledge bases, expert systems, knowledge repositories,
group decision support systems, intranets, and computer-supported cooperative work have been
introduced to further enhance such efforts.
In 1999, the term personal knowledge management was introduced which refers to the
management of knowledge at the individual level.
In terms of the enterprise, early collections of case studies recognized the importance of
knowledge management dimensions of strategy, process, and measurement. Key lessons learned
included: people and the cultural norms which influence their behaviors are the most critical
resources for successful knowledge creation, dissemination, and application; cognitive, social,
and organisational learning processes are essential to the success of a knowledge management
strategy; and measurement, benchmarking, and incentives are essential to accelerate the learning
process and to drive cultural change. In short, knowledge management programs can yield
impressive benefits to individuals and organisations if they are purposeful, concrete, and action-
oriented.
More recently with the advent of the Web 2.0, the concept of Knowledge Management
has evolved towards a vision more based on people participation and emergence. This line of
evolution is termed Enterprise 2.0. However, there is an ongoing debate and discussions as to
whether Enterprise 2.0 is just a fad that does not bring anything new or useful or whether it is,
indeed, the future of knowledge management.
Research
KM emerged as a scientific discipline in the earlier 1990s. It was initially supported

solely by practitioners, when Skandia hired Leif Edvinsson of Sweden as the world's first Chief
Knowledge Officer (CKO). Hubert Saint-Onge (formerly of CIBC, Canada), started
investigating various sides of KM long before that. The objective of CKOs is to manage and
maximize the intangible assets of their organisations. Gradually, CKOs became interested in not
only practical but also theoretical aspects of KM, and the new research field was formed.[19]
Discussion of the KM idea has been taken up by academics, such as Ikujiro Nonaka
(Hitotsubashi University), Hirotaka Takeuchi (Hitotsubashi University), Thomas H. Davenport
(Babson College) and Baruch Lev (New York University). In 2001, Thomas A. Stewart, former
editor at FORTUNE Magazine and subsequently the editor of Harvard Business Review,

published a cover story highlighting the importance of intellectual capital in organisations.Since
its establishment, the KM discipline has been gradually moving towards academic maturity.
First, there is a trend towards higher cooperation among academics; particularly, there has been a
drop in single-authored publications. Second, the role of practitioners has changed. Their
contribution to academic research has been dramatically declining from 30% of overall
contributions up to 2002, to only 10% by 2009 (Serenko et al. 2010).
A broad range of thoughts on the KM discipline exist; approaches vary by author and
school. As the discipline matures, academic debates have increased regarding both the theory
and practice of KM, to include the following perspectives:
Techno-centric with a focus on technology, ideally those that enhance knowledge sharing
and creation.Organisational with a focus on how an organisation can be designed to facilitate
knowledge processes best.Ecological with a focus on the interaction of people, identity,
knowledge, and environmental factors as a complex adaptive system akin to a natural ecosystem.
Regardless of the school of thought, core components of KM include people, processes,

technology (or) culture, structure, technology, depending on the specific perspective (Spender &
Scherer 2007). Different KM schools of thought include various lenses through which KM can
be viewed and explained, to include:
 community of practice
 social network analysis
 intellectual capital
 information theory
 complexity science
 constructivism
Dimensions
Different frameworks for distinguishing between different 'types of' knowledge exist.[9]
One proposed framework for categorizing the dimensions of knowledge distinguishes between
tacit knowledge and explicit knowledge. Tacit knowledge represents internalized knowledge that
an individual may not be consciously aware of, such as how he or she accomplishes particular
tasks. At the opposite end of the spectrum, explicit knowledge represents knowledge that the
individual holds consciously in mental focus, in a form that can easily be communicated to
others. Similarly, Hayes and Walsham describe content and relational perspectives of
knowledge and knowledge management as two fundamentally different epistemological
perspectives. The content perspective suggest that knowledge is easily stored because it may be
codified, while the relational perspective recognizes the contextual and relational aspects of
knowledge which can make knowledge difficult to share outside of the specific location where
the knowledge is developed.
Early research suggested that a successful KM effort needs to convert internalized tacit
knowledge into explicit knowledge in order to share it, but the same effort must also permit
individuals to internalize and make personally meaningful any codified knowledge retrieved
from the KM effort. Subsequent research into KM suggested that a distinction between tacit
knowledge and explicit knowledge represented an oversimplification and that the notion of
explicit knowledge is self-contradictory. Specifically, for knowledge to be made explicit, it must
be translated into information. Later on, Ikujiro Nonaka proposed a model (SECI for
Socialization, Externalization, Combination, Internalization) which considers a spiraling
knowledge process interaction between explicit knowledge and tacit knowledge. In this model,
knowledge follows a cycle in which implicit knowledge is 'extracted' to become explicit
knowledge, and explicit knowledge is 're-internalized' into implicit knowledge. More recently,
together with Georg von Krogh, Nonaka returned to his earlier work in an attempt to move the
debate about knowledge conversion forwards
A second proposed framework for categorizing the dimensions of knowledge

distinguishes between embedded knowledge of a system outside of a human individual (e.g., an
information system may have knowledge embedded into its design) and embodied knowledge
representing a learned capability of a human body’s nervous and endocrine systems .
A third proposed framework for categorizing the dimensions of knowledge distinguishes

between the exploratory creation of "new knowledge" (i.e., innovation) vs. the transfer or
exploitation of "established knowledge" within a group, organisation, or community.
Collaborative environments such as communities of practice or the use of social computing tools
can be used for both knowledge creation and transfer.
Strategies:
Knowledge may be accessed at three stages: before, during, or after KM-related

activities. Different organisations have tried various knowledge capture incentives, including
making content submission mandatory and incorporating rewards into performance measurement
plans.Considerable controversy exists over whether incentives work or not in this field and no
consensus has emerged.
One strategy to KM involves actively managing knowledge. In such an instance,

individuals strive to explicitly encode their knowledge into a shared knowledge repository, such
as a database, as well as retrieving knowledge they need that other individuals have provided to
the repository. This is also commonly known as the Codification approach to KM.

Another strategy to KM involves individuals making knowledge requests of experts
associated with a particular subject on an ad hoc basis (pull strategy). In such an instance, expert
individual(s) can provide their insights to the particular person or people needing this This is
also commonly known as the Personalisation approach to KM.
Hansen et al. propose a simple framework, distinguishing two opposing KM strategies:

codification and personalization. Codification focuses on collecting and storing codified
knowledge in previously designed electronic databases to make it accessible to the organization.
Codification can therefore refer to both tacit and explicit knowledge. In contrast, the
personalization strategy aims at encouraging individuals to share their knowledge directly.
Information technology plays a less important role, as it is only supposed to facilitate
communication and knowledge sharing among members of an organization.
Other knowledge management strategies and instruments for companies include:
 Rewards (as a means of motivating for knowledge sharing)
 Storytelling (as a means of transferring tacit knowledge)
 Cross-project learning
 After action reviews
 Knowledge mapping (a map of knowledge repositories within a company accessible by

all)
 Communities of practice
 Expert directories (to enable knowledge seeker to reach to the experts)
 Best practice transfer
 Knowledge fairs
 Competence management (systematic evaluation and planning of competences of

individual organisation members)
 Proximity & architecture (the physical situation of employees can be either conducive or
obstructive to knowledge sharing)
 Master-apprentice relationship
 Collaborative technologies (groupware, etc.)
 Knowledge repositories (databases, bookmarking engines, etc.)

 Measuring and reporting intellectual capital (a way of making explicit knowledge for
companies)
 Knowledge brokers (some organisational members take on responsibility for a specific

"field" and act as first reference on whom to talk about a specific subject)
 Social software (wikis, social bookmarking, blogs, etc.)
 Inter-project knowledge transfer
Motivations:
A number of claims exist as to the motivations leading organisations to undertake a KM effort.

Typical considerations driving a KM effort include:
 Making available increased knowledge content in the development and provision of

products and services
 Achieving shorter new product development cycles
 Facilitating and managing innovation and organisational learning
 Leveraging the expertise of people across the organisation
 Increasing network connectivity between internal and external individuals
 Managing business environments and allowing employees to obtain relevant insights and
ideas appropriate to their work
 Solving intractable or wicked problems
 Managing intellectual capital and intellectual assets in the workforce (such as the
expertise and know-how possessed by key individuals)
Debate exists whether KM is more than a passing fad, though increasing amount of research in
this field may hopefully help to answer this question, as well as create consensus on what
elements of KM help determine the success or failure of such efforts Knowledge sharing remains
a challenging issue for knowledge management, and while there is no clear agreement barriers
may include time issues for knowledge works, the level of trust, lack of effective support
technologies and culture
Technologies
Early KM technologies included online corporate yellow pages as expertise locators and
document management systems. Combined with the early development of collaborative
technologies (in particular Lotus Notes), KM technologies expanded in the mid-

1990s.Subsequent KM efforts leveraged semantic technologies for search and retrieval and the
development of e-learning tools for communities of practice Knowledge management systems
can thus be categorized as falling into one or more of the following groups: Groupware,
document management systems, expert systems, semantic networks, relational and object
oriented databases, simulation tools, and artificial intelligence
More recently, development of social computing tools (such as bookmarks, blogs, and
wikis) have allowed more unstructured, self-governing or ecosystem approaches to the transfer,
capture and creation of knowledge, including the development of new forms of communities,
networks, or matrix organizations. However such tools for the most part are still based on text
and code, and thus represent explicit knowledge transfer. These tools face challenges in distilling
meaningful re-usable knowledge and ensuring that their content is transmissible through diverse
channels.
Software tools in knowledge management are a collection of technologies and are not
necessarily acquired as a single software solution. Furthermore, these knowledge management
software tools have the advantage of using the organisation existing information technology
infrastructure. Organisations and business decision makers spend a great deal of resources and
make significant investments in the latest technology, systems and infrastructure to support
knowledge management. It is imperative that these investments are validated properly, made
wisely and that the most appropriate technologies and software tools are selected or combined to
facilitate knowledge management.
Knowledge management has also become a cornerstone in emerging business strategies

such as Service Lifecycle Management (SLM) with companies increasingly turning to software
vendors to enhance their efficiency in industries including, but not limited to, the aviation
industry.
FOSTERING CREATIVITY AND INNOVATION

There is no doubt that creativity, and innovation, can be measured. It is not necessary to
go into the detail of the range of tests and instruments that have been developed over many years.
What is far more significant is the fact that these measures have been developed across a range
of disciplines — from psychology to business — and must be integrated in order to realize their
potential to foster change. It is highly significant that this discussion takes place against a
backdrop of global economic turmoil. Now, more than ever, individuals and organizations must
be able to harness creativity and innovation in order to rebuild the strength of our economies.
Often the terms 'creativity' and 'innovation' are used interchangeably. Rightly or wrongly,
the two words are treated by many as synonyms. But do they espouse the same concepts? Is there
a difference between the two? What about 'ideas', which is often used in connection to creativity
and innovation? A proper understanding of these three terms is crucial before we attempt to
embrace and practice innovation.
It all begins with an idea. An idea is the starting point of creativity and innovation.
Without ideas there can never be anything creative or innovative. Just like without cells there can
be no living things. Ideas are the building blocks of creativity and innovation. An idea is like a
seed waiting to be planted, waiting to grow and mature into something beautiful. An idea has to
be new and fresh. An old idea is like a dead seed, lifeless and unproductive.
Creativity may be defined as ‘idea generation’. Being creative is to be able to generate or

to come up with ideas. Or even to gather ideas. The new idea can be simple or it can be complex.
When a child thinks of an idea, even if it is a naughty one, he is being creative. Similarly, when a
scientist seizes on an idea, he is exercising creativity. Creativity is hence a process, or a thinking
process to be exact. Creativity comes from the word ‘create’. What is ‘created’ or ‘generated’ is
the idea.
Innovation, on the other hand, can be described as ‘creativity implemented’. Innovation is

putting the idea into practice. While creativity is a thinking process, innovation is a productive
process. Innovation adds value to the idea, which otherwise remains as a mere idea. If the idea is
likened to a seed, then innovation is the plant that results from planting and nurturing the seed.
The truth that must be told is that creativity and innovation is not the private domain or
exclusive territory of any individual or a group of individuals. Creativity and innovation cuts
across all segments of our society. Creativity and innovation can be embraced and practiced by
just about anyone, from students to teachers, from employers to employees, from entrepreneurs
to career-minded people. It is for both young and old, male and female, urban or rural. In other
words, creativity and innovation is for all.
Innovation in our industries is in some ways often taken for granted. Our factories and
manufacturing plants are expected to be in the forefront of innovation. But is this always the
case? As the nation's industries make the transition from one that is labour dependent, to one that
is more capital intensive, the need for innovation is becoming more acute, so that Malaysia can
remain competitive in the global arena.
Creativity vs. Innovation
The main difference between creativity and innovation is the focus. Creativity is about
unleashing the potential of the mind to conceive new ideas. Those concepts could manifest
themselves in any number of ways, but most often, they become something we can see, hear,
smell, touch, or taste. However, creative ideas can also be thought experiments within one
person’s mind.
Creativity is subjective, making it hard to measure, as our creative friends assert.
Innovation, on the other hand, is completely measurable. Innovation is about introducing change
into relatively stable systems. It’s also concerned with the work required to make an idea viable.
By identifying an unrecognized and unmet need, an organization can use innovation to apply its
creative resources to design an appropriate solution and reap a return on its investment.
Organizations often chase creativity, but what they really need to pursue is innovation. Theodore
Levitt puts it best: “What is often lacking is not creativity in the idea-creating sense but
innovation in the action-producing sense, i.e. putting ideas to work.”
Managing Innovation
Because creativity and innovation are often confused, it’s long been assumed that you
cannot force innovation within an organization. It’s either there, or it isn’t. The introduction of a
common language for innovation — design thinking — enables organizations to better measure
milestones in their innovative efforts.
In order to employ design thinking, it’s necessary to understand it as a system of

overlapping spaces, rather than a set of process steps to move through. Those spaces are:
inspiration, during which the problem that motivates solution-finding is identified; ideation, the
process of generating and developing ideas; and implementation, the activities that enable a
creative idea to move from the drawing board to the marketplace. Any design thinking-based
project may loop back to an earlier space more than once as a team explores, develops, and
implements its idea.
Design thinking provides a consistent approach to defining challenges. It helps

organizations identify problems before they even begin the brainstorming sessions most
associated with creativity. Now, organizations can actually see what they were missing when
previous ideas didn’t reach market sustainability.
Using design thinking, organizations can capitalize on creativity by paying attention to

the life of the idea after its initial development. To be of value, applied creativity must always
lead to innovation — linking a great idea with an actual customer need (or, better yet, the needs
of a whole market!). The use of design thinking in this manner also demands the guidance of
engaged leadership.
Leaders are critical to the success of any group’s long-term innovation strategy. It’s their
job to ensure that innovation is consistently pursued and their employees don’t settle into
business as usual. They set the tone for what is, and is not, possible in the business through their
attention and action.
Companies to Model
Organizations serious about fostering innovation have to wrestle with two main issues:
risk-taking and failure aversion. All innovation involves risk, and all risks include the possibility
of failure. Failure should never be seen as a black mark; it is a learning experience. Leaders and
their organizations cannot be afraid of failure — or they will never incorporate the innovation
they need to truly meet customers’ needs. Design thinking offers a path to risk-taking that’s
manageable, repeatable, and driven toward maximizing the effectiveness of the new idea.
Of course, the very term “innovation” connotes something new and different. Still,
paying attention to companies that are consistently innovative in their industries is always a good
practice. Consider these companies that use the principles of design thinking to achieve their
strategic goals:
 Proctor & Gamble embraced innovation under former CEO A.G. Lafley. During his
tenure, P&G’s value increased by more than $100 billion. In 2000, it had 10 billion-dollar
consumer brands; today, it has 22.
 Kaiser Permanente is the largest not-for-profit health provider in the USA. Kaiser’s
National Facilities Services group has, for over five years, been working on the Total
Health Environment, a program applying design thinking to every aspect of Kaiser’s
operations, from medical records to color palettes. The results speak for themselves:
improved patient health, satisfaction, soundness of sleep, speed of healing, and cost
control.
 Square is particularly associated with innovation since its plugin device helps millions of
mobile vendors and small business owners. No longer are they confined to cash payments
or expensive credit card machines. Square noticed that the economy was quickly
becoming paperless and provided customers a way to keep up.
Creativity is important in today’s business world, but it’s really only the beginning.
Organizations need to foster creativity. Driving business results by running ideas through an
innovation process puts those ideas to work — for companies and their customers. Creativity is
the price of admission, but it’s innovation that pays the bills.

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ERODE SENGUNTHAR ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES

UNIT 1-DEFINING THE MANAGERIAL JOB

According to Peter Drucker, Management implies ‘Effectiveness’ and effectiveness involves

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 1

DESCRIPTIVE DIMENSIONS OF MANAGERIAL JOBS:

Descriptive dimensions of managerial jobs are listed below

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 2

The process of planning involves the following steps.

• Determination of goals or objectives of the organisation

• Search of alternative courses of action

• Evaluation of various alternatives and formulation of plan

• Formulation of policies and procedures

• Preparation of schedules, programmes and budgets.

The process of organizing involves the following steps.

• Identification of activities required for the achievement of objectives.

• Assignment of jobs to employees

• Delegation of authority to subordinates.

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 3

The sub-functions of staffing are listed below.

• Recruitment for attracting suitable personnel to seek jobs in the organisation.

• Selection of the most suitable persons for the jobs.

• Placement and orientation of employees

• Transfer and promotion of employees.

• Training and development of employees.

The sub-functions of directing are listed below

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 4

The process of controlling involves the following steps.

 Set standards by which performance will be measured.

 Compare actual performance with standards and identify any deviations

 Determine the reasons for the deviations.

 Take corrective actions if needed.

FUNCTIONAL DIMENSIONS OF MANAGERIAL JOB:

 Financial Management - Investment decisions, Working Capital decisions, Financing

 Marketing Management – Product decisions, Pricing decisions, promotion decisions.

 Human Resource Management – Employment, Training and development,

 Purchasing and Materials Management- Analysis of requirements, Search for sources

ROLE DIMENSIONS OF MANAGERIAL JOBS

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 5

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 6

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 7

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 8

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 9

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 10

Important contributions of this model:

• The model reminds us that managers are after all people.

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 11

Heroic Models of the manager

Manager as Master Technician

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 12

TIME DIMENSIONS IN MANAGERIAL JOBS:

Major areas that help in the management of time

Habitual use of time

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 13

K.T.KALAISELVI, ASSISTANT PROFESSOR, MBA, ESEC, THUDUPATHI. Page 14

Principles of Time Management

Some of the time wasters

External time wasters

EFFECTIVE JOB BEHAVIOUR:

Ability to inspire others: