Principles of Management
Principles of Management
Principles of Management
A Course Material on
PRINCIPLES OF MANAGEMENT
By
Mr. J.RAJESH
ASSISTANT PROFESSOR
PRINCIPLES OF MANAGEMENT
UNIT I OVERVIEW OF MANAGEMENT
Definition - Management - Role of managers - Evolution of Management thought -
Organization and the environmental factors – Trends and Challenges of Management
in Global nario.
UNIT II PLANNING
Nature and purpose of planning - Planning process - Types of plans – Objectives
Managing by objective (MBO) Strategies - Types of strategies - Policies – Decision
Making - Types of decision - Decision Making Process - Rational Decision Making
Process - Decision Making under different conditions.
UNIT IV DIRECTING
Creativity and Innovation - Motivation and Satisfaction - Motivation Theories -
Leadership Styles - Leadership theories - Communication - Barriers to effective
communication - Organization Culture - Elements and types of culture – Managing
cultural diversity.
UNIT V CONTROLLING
Process of controlling - Types of control - Budgetary and non-budgetary control
techniques - Managing Productivity - Cost Control - Purchase Control – Maintenance
Control - Quality Control - Planning operations.
DEFINITION
According to Harold Koontz, “Management is an art of getting things done through and with the
people in formally organized groups. It is an art of creating an environment in which people can
perform and individuals and can co-operate towards attainment of group goals”.
LEVELS OF MANAGEMENT
The three levels of management are as follows
FUNCTIONS OF MANAGEMENT
Management has been described as a social process involving responsibility for economical
and effective planning & regulation of operation of an enterprise in the fulfillment of given
purposes. It is a dynamic process consisting of various elements and activities. These activities
are different from operative functions like marketing, finance, purchase etc. Rather these
activities are common to each and every manger irrespective of his level or status.
Different experts have classified functions of management. According to George & Jerry, “There
are four fundamental functions of management i.e. planning, organizing, actuating and
controlling”. According to Henry Fayol, “To manage is to forecast and plan, to organize, to
command, & to control”. Whereas Luther Gullick has given a keyword ‘POSDCORB’ where P
stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for
reporting & B for Budgeting. But the most widely accepted are functions of management given
by KOONTZ and O’DONNEL i.e. Planning, Organizing, Staffing, Directing and Controlling.
For theoretical purposes, it may be convenient to separate the function of management but
practically these functions are overlapping in nature i.e. they are highly inseparable. Each
function blends into the other & each affects the performance of others.
Planning
It is the basic function of management. It deals with chalking out a future course of
action & deciding in advance the most appropriate course of actions for achievement of
pre-determined goals. According to KOONTZ, “Planning is deciding in advance – what to
do, when to do & how to do. It bridges the gap from where we are & where we want to
be”. A plan is a future course of actions. It is an exercise in problem solving & decision
making. Planning is determination of courses of action to achieve desired goals. Thus,
planning is a systematic thinking about ways & means for accomplishment of pre-
determined goals. Planning is necessary to ensure proper utilization of human & non-
human resources. It is all pervasive, it is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.
Organizing
It is the process of bringing together physical, financial and human resources and
developing productive relationship amongst them for achievement of organizational
goals. According to Henry Fayol, “To organize a business is to provide it with everything
useful or its functioning i.e. raw material, tools, capital and personnel’s”. To organize a
business involves determining & providing human and non-human resources to the
organizational structure. Organizing as a process involves:
Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
Staffing
It is the function of manning the organization structure and keeping it manned. Staffing
has assumed greater importance in the recent years due to advancement of technology,
increase in size of business, complexity of human behavior etc. The main purpose o
staffing is to put right man on right job i.e. square pegs in square holes and round pegs
in round holes. According to Kootz & O’Donell, “Managerial function of staffing involves
manning the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed un the structure”. Staffing involves:
Manpower Planning (estimating man power in terms of searching, choose the
person and giving the right place).
Recruitment, selection & placement.
Training & development.
Remuneration.
Performance appraisal.
Promotions & transfer.
Directing
It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction is that inert-personnel
aspect of management which deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational goals. Direction has
following elements:
Supervision
Motivation
Leadership
Communication
Supervision- implies overseeing the work of subordinates by their superiors. It is the
act of watching & directing work & workers.
Controlling
It implies measurement of accomplishment against the standards and correction of
deviation if any to ensure achievement of organizational goals. The purpose of
controlling is to ensure that everything occurs in conformities with the standards. An
efficient system of control helps to predict deviations before they actually occur.
According to Theo Haimann, “Controlling is the process of checking whether or not
proper progress is being made towards the objectives and goals and acting if necessary,
to correct any deviation”. According to Koontz & O’Donell “Controlling is the
measurement & correction of performance activities of subordinates in order to make
sure that the enterprise objectives and plans desired to obtain them as being
accomplished”. Therefore controlling has following steps:
Establishment of standard performance.
Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if
any.
Corrective action.
ROLES OF MANAGER
Henry Mintzberg identified ten different roles, separated into three categories. The categories he
defined are as follows
a) Interpersonal Roles
The ones that, like the name suggests, involve people and other ceremonial duties. It can be
further classified as follows
Leader – Responsible for staffing, training, and associated duties.
Figurehead – The symbolic head of the organization.
Liaison – Maintains the communication between all contacts and informers that compose
the organizational network.
b) Informational Roles
Related to collecting, receiving, and disseminating information.
Monitor – Personally seek and receive information, to be able to understand the
organization.
Disseminator – Transmits all import information received from outsiders to the members
of the organization.
Spokesperson – On the contrary to the above role, here the manager transmits the
organization’s plans, policies and actions to outsiders.
Decisional Roles
Roles that revolve around making choices.
Entrepreneur – Seeks opportunities. Basically they search for change, respond to it, and
exploit it.
Negotiator – Represents the organization at major negotiations.
Resource Allocator – Makes or approves all significant decisions related to the allocation
of resources.
Disturbance Handler – Responsible for corrective action when the organization faces
disturbances.
Behavioral science and the study of organizational behavior emerged in the 1950s and
1960s. The behavioral science approach was a natural progression of the human relations
movement. It focused on applying conceptual and analytical tools to the problem of
understanding and predicting behavior in the workplace.
The behavioral science approach has contributed to the study of management through
its focus on personality, attitudes, values, motivation, group behavior, leadership,
communication, and conflict, among other issues.
d) SYSTEMS APPROACH:
The simplified block diagram of the systems approach is given below.
MANAGEMENT
Beginning Dates Emphasis
APPROACHS
CLASSICAL APPROACH
BEHAVIORAL APPROACH
Human
1930s workers' attitudes are associated with productivity
Relations
Management
Science Uses mathematical and statistical approaches to
1940s
(Operation solve management problems.
research)
Production This approach focuses on the operation and
and Operations 1940s control of the production process that transforms
Management resources into finished goods and services
RECENT DEVELOPEMENTS
Elements of Scientific Management: The techniques which Taylor regarded as its essential
elements or features may be classified as under:
Scientific Task and Rate-setting, work improvement, etc.
Planning the Task.
Vocational Selection and Training
Standardization (of working conditions, material equipment etc.)
Specialization
Mental Revolution.
Scientific Task and Rate-Setting (work study): Work study may be defined as the
systematic, objective and critical examination of all the factors governing the operational
efficiency of any specified activity in order to effect improvement.
Work study includes.
(a) Methods Study: The management should try to ensure that the plant is laid out in the best
manner and is equipped with the best tools and machinery. The possibilities of eliminating or
combining certain operations may be studied.
(b) Motion Study: It is a study of the movement, of an operator (or even of a machine)
in performing an operation with the purpose of eliminating useless motions.
Time Study (work measurement): The basic purpose of time study is to determine the
proper time for performing the operation. Such study may be conducted after the motion study.
Both time study and motion study help in determining the best method of doing a job and the
standard time allowed for it.
Fatigue Study: If, a standard task is set without providing for measures to eliminate fatigue,
it may either be beyond the workers or the workers may over strain themselves to attain it. It is
necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically
determined intervals.
Rate-setting: Taylor recommended the differential piece wage system, under which workers
performing the standard task within prescribed time are paid a much higher rate per unit than
inefficient workers who are not able to come up to the standard set.
Planning the Task: Having set the task which an average worker must strive to perform to
get wages at the higher piece-rate, necessary steps have to be taken to plan the production
thoroughly so that there is no bottlenecks and the work goes on systematically.
Selection and Training: Scientific Management requires a radical change in the methods
and procedures of selecting workers. It is therefore necessary to entrust the task of selection to
a central personnel department. The procedure of selection will also have to be systematised.
Proper attention has also to be devoted to the training of the workers in the correct methods of
work.
Standardization: Standardization may be introduced in respect of the following.
Tools and equipment: By standardization is meant the process of bringing about uniformity.
The management must select and store standard tools and implements which will be nearly the
best or the best of their kind.
Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely to
result in damage to machinery.
Conditions of Work: To attain standard performance, the maintenance of standard
conditions of ventilation, heating, cooling, humidity, floor space, safety etc., is very essential.
Materials: The efficiency of a worker depends on the quality of materials and the method of
handling materials.
Specialization: Scientific management will not be complete without the introduction of
specialization. Under this plan, the two functions of 'planning' and 'doing' are separated in the
organization of the plant. The `functional foremen' are specialists who join their heads to give
thought to the planning of the performance of operations in the workshop. Taylor suggested
eight functional foremen under his scheme of functional foremanship.
The Route Clerk: To lay down the sequence of operations and instruct the workers
concerned about it.
The Instruction Card Clerk: To prepare detailed instructions regarding different aspects of
work.
The Time and Cost Clerk: To send all information relating to their pay to the workers and to
secure proper returns of work from them.
The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.
The Gang Boss: To assemble and set up tools and machines and to teach the workers to
make all their personal motions in the quickest and best way.
The Speed Boss: To ensure that machines are run at their best speeds and proper tools are
used by the workers.
The Repair Boss: To ensure that each worker keeps his machine in good order and
maintains cleanliness around him and his machines.
The Inspector: To show to the worker how to do the work.
Mental Revolution: At present, industry is divided into two groups – management and
labour. The major problem between these two groups is the division of surplus. The
management wants the maximum possible share of the surplus as profit; the workers want, as
large share in the form of wages. Taylor has in mind the enormous gain that arises from higher
productivity. Such gains can be shared both by the management and workers in the form of
increased profits and increased wages.
a) Sole Proprietorships
The vast majority of small business starts out as sole proprietorships . . . very dangerous. These
firms are owned by one person, usually the individual who has day-to-day responsibility for
running the business. Sole proprietors own all the assets of the business and the profits
generated by it. They also assume "complete personal" responsibility for all of its liabilities or
debts. In the eyes of the law, you are one in the same with the business.
Merits:
Easiest and least expensive form of ownership to organize.
Sole proprietors are in complete control, within the law, to make all decisions.
Sole proprietors receive all income generated by the business to keep or reinvest.
Profits from the business flow-through directly to the owner's personal tax return.
The business is easy to dissolve, if desired.
Demerits:
Unlimited liability and are legally responsible for all debts against the business.
Their business and personal assets are 100% at risk.
Has almost been ability to raise investment funds.
Are limited to using funds from personal savings or consumer loans.
Have a hard time attracting high-caliber employees, or those that are motivated by the
opportunity to own a part of the business.
Employee benefits such as owner's medical insurance premiums are not directly deductible
from business income (partially deductible as an adjustment to income).
b) Partnerships
In a Partnership, two or more people share ownership of a single business. Like proprietorships,
the law does not distinguish between the business and its owners. The Partners should have a
legal agreement that sets forth how decisions will be made, profits will be shared, disputes will
be resolved, how future partners will be admitted to the partnership, how partners can be bought
out, or what steps will be taken to dissolve the partnership when needed. Yes, its hard to think
about a "break-up" when the business is just getting started, but many partnerships split up at
crisis times and unless there is a defined process, there will be even greater problems. They
also must decide up front how much time and capital each will contribute, etc.
Merits:
Partnerships are relatively easy to establish; however time should be invested in developing
the partnership agreement.
With more than one owner, the ability to raise funds may be increased.
The profits from the business flow directly through to the partners' personal taxes.
Prospective employees may be attracted to the business if given the incentive to become a
partner.
Demerits:
Partners are jointly and individually liable for the actions of the other partners.
Profits must be shared with others.
Since decisions are shared, disagreements can occur.
Some employee benefits are not deductible from business income on tax returns.
The partnerships have a limited life; it may end upon a partner withdrawal or death.
c) Corporations
A corporation, chartered by the state in which it is headquartered, is considered by law to be a
unique "entity", separate and apart from those who own it. A corporation can be taxed; it can be
sued; it can enter into contractual agreements. The owners of a corporation are its
shareholders. The shareholders elect a board of directors to oversee the major policies and
decisions. The corporation has a life of its own and does not dissolve when ownership changes.
Merits:
Shareholders have limited liability for the corporation's debts or judgments against the
corporations.
Generally, shareholders can only be held accountable for their investment in stock of the
company. (Note however, that officers can be held personally liable for their actions, such as
the failure to withhold and pay employment taxes.)
Corporations can raise additional funds through the sale of stock.
A corporation may deduct the cost of benefits it provides to officers and employees.
Can elect S corporation status if certain requirements are met. This election enables
company to be taxed similar to a partnership.
Demerits:
The process of incorporation requires more time and money than other forms of
organization.
Corporations are monitored by federal, state and some local agencies, and as a result may
have more paperwork to comply with regulations.
Incorporating may result in higher overall taxes. Dividends paid to shareholders are not
deductible form business income, thus this income can be taxed twice.
f) Government Companies:
A state enterprise can also be organized in the form of a Joint stock company; A government
company is any company in which of the share capital is held by the central government or
partly by central government & party by one to more state governments. It is managed b the
elected board of directors which may include private individuals. These are accountable for its
working to the concerned ministry or department & its annual report is required to be placed
ever year on the table of the parliament or state legislatures along with the comments of the
government to concerned department.
Merits:
It is easy to form.
The directors of a government company are free to take decisions & are not bound by
certain rigid rules & regulations.
Demerits:
Misuse of excessive freedom cannot be ruled out.
The directors are appointed by the government so they spend more time in pleasing their
political masters & top government officials, which results in inefficient management.
ii) Suppliers
An individual or an organization involved in the process of making a product or service available
for use or consumption by a consumer or business user is known as supplier. Increase in raw
material prices will have a knock on affect on the marketing mix strategy of an organization.
Prices may be forced up as a result. A closer supplier relationship is one way of ensuring
competitive and quality products for an organization.
iii) Distributors
Entity that buys non-competing products or product-lines, warehouses them, and resells them
to retailers or direct to the end users or customers is known as distributor. Most distributors
provide strong manpower and cash support to the supplier or manufacturer's promotional
efforts. They usually also provide a range of services (such as product information, estimates,
technical support, after-sales services, credit) to their customers. Often getting products to the
end customers can be a major issue for firms. The distributors used will determine the final price
of the product and how it is presented to the end customer. When selling via retailers, for
example, the retailer has control over where the products are displayed, how they are priced
and how much they are promoted in-store. You can also gain a competitive advantage by using
changing distribution channels.
iv) Customers
A person, company, or other entity which buys goods and services produced by another person,
company, or other entity is known as customer. Organizations survive on the basis of meeting
the needs, wants and providing benefits for their customers. Failure to do so will result in a
failed business strategy.
v) Competitors
A company in the same industry or a similar industry which offers a similar product or service is
known as competitor. The presence of one or more competitors can reduce the prices of goods
and services as the companies attempt to gain a larger market share. Competition also requires
companies to become more efficient in order to reduce costs. Fast-food restaurants McDonald's
and Burger King are competitors, as are Coca-Cola and Pepsi, and Wal-Mart and Target.
vi) Media
Positive or adverse media attention on an organisations product or service can in some cases
make or break an organisation.. Consumer programmes with a wider and more direct audience
can also have a very powerful and positive impact, hforcing organisations to change their
tactics.
b) MACRO ENVIRONMENTAL FACTORS
An organization's macro environment consists of nonspecific aspects in the organization's
surroundings that have the potential to affect the organization's strategies. When compared to a
firm's task environment, the impact of macro environmental variables is less direct and the
organization has a more limited impact on these elements of the environment.
The macro environment consists of forces that originate outside of an organization and
generally cannot be altered by actions of the organization. In other words, a firm may be
influenced by changes within this element of its environment, but cannot itself influence the
environment. The curved lines in Figure 1 indicate the indirect influence of the environment on
the organization.
Macro environment includes political, economic, social and technological factors. A firm
considers these as part of its environmental scanning to better understand the threats and
opportunities created by the variables and how strategic plans need to be adjusted so the firm
can obtain and retain competitive advantage.
i) Political Factors
Political factors include government regulations and legal issues and define both formal and
informal rules under which the firm must operate. Some examples include:
tax policy
employment laws
environmental regulations
trade restrictions and tariffs
political stability
Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of
capital. The following are examples of factors in the macroeconomy:
economic growth
interest rates
exchange rates
inflation rate
Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels,
and influence outsourcing decisions. Some technological factors include:
R&D activity
automation
technology incentives
rate of technological change
DEFINITION
According to Koontz O'Donnel - "Planning is an intellectual process, the conscious
determination of courses of action, the basing of decisions on purpose, acts and considered
estimates".
Nature of Planning
ᜀĀᜀĀ Planning is goal-oriented: Every plan must contribute in some positive way towards
the accomplishment of group objectives. Planning has no meaning without being related to
goals.
ᜀĀᜀĀ Primacy of Planning: Planning is the first of the managerial functions. It precedes all
other management functions.
ᜀĀᜀĀ Pervasiveness of Planning: Planning is found at all levels of management. Top
management looks after strategic planning. Middle management is in charge of administrative
planning. Lower management has to concentrate on operational planning.
ᜀĀᜀĀ Efficiency, Economy and Accuracy: Efficiency of plan is measured by its contribution
to the objectives as economically as possible. Planning also focuses on accurate forecasts.
ᜀĀᜀĀ Co-ordination: Planning co-ordinates the what, who, how, where and why of planning.
Without co-ordination of all activities, we cannot have united efforts.
ᜀĀᜀĀ Limiting Factors: A planner must recognize the limiting factors (money, manpower etc)
and formulate plans in the light of these critical factors.
ᜀĀᜀĀ Flexibility: The process of planning should be adaptable to changing environmental
conditions.
ᜀĀᜀĀ Planning is an intellectual process: The quality of planning will vary according to the
quality of the mind of the manager.
Purpose of Planning
As a managerial function planning is important due to the following reasons:-
To manage by objectives: All the activities of an organization are designed to achieve
certain specified objectives. However, planning makes the objectives more concrete by focusing
attention on them.
To offset uncertainty and change: Future is always full of uncertainties and changes.
Planning foresees the future and makes the necessary provisions for it.
To secure economy in operation: Planning involves, the selection of most profitable course
of action that would lead to the best result at the minimum costs.
To help in co-ordination: Co-ordination is, indeed, the essence of management, the
planning is the base of it. Without planning it is not possible to co-ordinate the different activities
of an organization.
To make control effective: The controlling function of management relates to the
comparison of the planned performance with the actual performance. In the absence of plans, a
management will have no standards for controlling other's performance.
To increase organizational effectiveness: Mere efficiency in the organization is not
important; it should also lead to productivity and effectiveness. Planning enables the manager to
measure the organizational effectiveness in the context of the stated objectives and take further
actions in this direction.
Features of Planning
It is primary function of management.
It is an intellectual process
Focuses on determining the objectives
Involves choice and decision making
It is a continuous process
It is a pervasive function
Classification of Planning
On the basis of content
Strategic Planning
– It is the process of deciding on Long-term objectives of the organization.
– It encompasses all the functional areas of business
Tactical Planning
– It involves conversion of detailed and specific plans into detailed and specific action
plans.
– It is the blue print for current action and it supports the strategic plans.
PLANNING PROCESS
The various steps involved in planning are given below
a) Perception of Opportunities:
Although preceding actual planning and therefore not strictly a part of the planning
process, awareness of an opportunity is the real starting point for planning. It includes a
preliminary look at possible future opportunities and the ability to see them clearly and
completely, knowledge of where we stand in the light of our strengths and weaknesses, an
understanding of why we wish to solve uncertainties, and a vision of what we expect to gain.
Setting realistic objectives depends on this awareness. Planning requires realistic diagnosis of
the opportunity situation.
b) Establishing Objectives:
The first step in planning itself is to establish objectives for the entire enterprise and then
for each subordinate unit. Objectives specifying the results expected indicate the end points of
what is to be done, where the primary emphasis is to be placed, and what is to be accomplished
by the network of strategies, policies, procedures, rules, budgets and programs.
Enterprise objectives should give direction to the nature of all major plans which, by
reflecting these objectives, define the objectives of major departments. Major department
objectives, in turn, control the objectives of subordinate departments, and so on down the line.
The objectives of lesser departments will be better framed, however, if subdivision managers
understand the overall enterprise objectives and the implied derivative goals and if they are
given an opportunity to contribute their ideas to them and to the setting of their own goals.
d) Identification of alternatives:
Once the organizational objectives have been clearly stated and the planning premises
have been developed, the manager should list as many available alternatives as possible for
reaching those objectives.
The focus of this step is to search for and examine alternative courses of action, especially
those not immediately apparent. There is seldom a plan for which reasonable alternatives do
not exist, and quite often an alternative that is not obvious proves to be the best.
The more common problem is not finding alternatives, but reducing the number of alternatives
so that the most promising may be analyzed. Even with mathematical techniques and the
computer, there is a limit to the number of alternatives that may be examined. It is therefore
usually necessary for the planner to reduce by preliminary examination the number of
alternatives to those promising the most fruitful possibilities or by mathematically eliminating,
through the process of approximation, the least promising ones.
e) Evaluation of alternatives
Having sought out alternative courses and examined their strong and weak points, the
following step is to evaluate them by weighing the various factors in the light of premises and
goals. One course may appear to be the most profitable but require a large cash outlay and a
slow payback; another may be less profitable but involve less risk; still another may better suit
the company in long–range objectives.
If the only objective were to examine profits in a certain business immediately, if the future were
not uncertain, if cash position and capital availability were not worrisome, and if most factors
could be reduced to definite data, this evaluation should be relatively easy. But typical planning
is replete with uncertainties, problems of capital shortages, and intangible factors, and so
evaluation is usually very difficult, even with relatively simple problems. A company may wish to
enter a new product line primarily for purposes of prestige; the forecast of expected results may
show a clear financial loss, but the question is still open as to whether the loss is worth the gain.
f) Choice of alternative plans
An evaluation of alternatives must include an evaluation of the premises on which the
alternatives are based. A manager usually finds that some premises are unreasonable and can
therefore be excluded from further consideration. This elimination process helps the manager
determine which alternative would best accomplish organizational objectives.
In the process of planning, several plans are prepared which are known as components of
planning.
Plans can be broadly classified as
Strategic plans
Tactical plans
Operational plans
Operational plans lead to the achievement of tactical plans, which in turn lead to the attainment
of strategic plans. In addition to these three types of plans, managers should also develop a
contingency plan in case their original plans fail.
a) Strategic plans:
A strategic plan is an outline of steps designed with the goals of the entire organization as a
whole in mind, rather than with the goals of specific divisions or departments. It is further
classified as
i) Mission:
The mission is a statement that reflects the basic purpose and focus of the organization which
normally remain unchanged. The mission of the company is the answer of the question : why
does the organization exists?
Properly crafted mission statements serve as filters to separate what is important from what is
not, clearly state which markets will be served and how, and communicate a sense of intended
direction to the entire organization.
Mission of Ford: “we are a global, diverse family with a proud inheritance, providing exceptional
products and services”.
iii) Strategies:
Strategy is the determination of the basic long term objectives of an organization and the
adoption of action and collection of action and allocation of resources necessary to achieve
these goals.
Strategic planning begins with an organization's mission. Strategic plans look ahead over the
next two, three, five, or even more years to move the organization from where it currently is to
where it wants to be. Requiring multilevel involvement, these plans demand harmony among all
levels of management within the organization. Top-level management develops the directional
objectives for the entire organization, while lower levels of management develop compatible
objectives and plans to achieve them. Top management's strategic plan for the entire
organization becomes the framework and sets dimensions for the lower level planning.
b) Tactical plans:
A tactical plan is concerned with what the lower level units within each division must do,
how they must do it, and who is in charge at each level. Tactics are the means needed to
activate a strategy and make it work.
Tactical plans are concerned with shorter time frames and narrower scopes than are strategic
plans. These plans usually span one year or less because they are considered short-term goals.
Long-term goals, on the other hand, can take several years or more to accomplish. Normally, it
is the middle manager's responsibility to take the broad strategic plan and identify specific
tactical actions.
c) Operational plans
The specific results expected from departments, work groups, and individuals are the
operational goals. These goals are precise and measurable. “Process 150 sales applications
each week” or “Publish 20 books this quarter” are examples of operational goals.
An operational plan is one that a manager uses to accomplish his or her job responsibilities.
Supervisors, team leaders, and facilitators develop operational plans to support tactical plans
(see the next section). Operational plans can be a single-use plan or a standing plan.
Single-use plans apply to activities that do not recur or repeat. A one-time
occurrence, such as a special sales program, is a single-use plan because it deals with
the who, what, where, how, and how much of an activity.
Programme: Programme consists of an ordered list of events to be followed to
execute a project.
Budget: A budget predicts sources and amounts of income and how much they are
used for a specific project.
Standing plans are usually made once and retain their value over a period of years
while undergoing periodic revisions and updates. The following are examples of ongoing
plans:
Policy: A policy provides a broad guideline for managers to follow when dealing with
important areas of decision making. Policies are general statements that explain how
a manager should attempt to handle routine management responsibilities. Typical
human resources policies, for example, address such matters as employee hiring,
terminations, performance appraisals, pay increases, and discipline.
Procedure: A procedure is a set of step-by-step directions that explains how
activities or tasks are to be carried out. Most organizations have procedures for
purchasing supplies and equipment, for example. This procedure usually begins with
a supervisor completing a purchasing requisition. The requisition is then sent to the
next level of management for approval. The approved requisition is forwarded to the
purchasing department. Depending on the amount of the request, the purchasing
department may place an order, or they may need to secure quotations and/or bids
for several vendors before placing the order. By defining the steps to be taken and
the order in which they are to be done, procedures provide a standardized way of
responding to a repetitive problem.
Rule: A rule is an explicit statement that tells an employee what he or she can and
cannot do. Rules are “do” and “don't” statements put into place to promote the safety
of employees and the uniform treatment and behavior of employees. For example,
rules about tardiness and absenteeism permit supervisors to make discipline
decisions rapidly and with a high degree of fairness.
Contingency plans
Intelligent and successful management depends upon a constant pursuit of adaptation,
flexibility, and mastery of changing conditions. Strong management requires a “keeping all
options open” approach at all times — that's where contingency planning comes in.
Contingency planning involves identifying alternative courses of action that can be implemented
if and when the original plan proves inadequate because of changing circumstances.
Keep in mind that events beyond a manager's control may cause even the most carefully
prepared alternative future narios to go awry. Unexpected problems and events frequently
occur. When they do, managers may need to change their plans. Anticipating change during the
planning process is best in case things don't go as expected. Management can then develop
alternatives to the existing plan and ready them for use when and if circumstances make these
alternatives appropriate.
OBJECTIVES
Objectives may be defined as the goals which an organisation tries to achieve.
Objectives are described as the end- points of planning. According to Koontz and O'Donnell, "an
objective is a term commonly used to indicate the end point of a management programme."
Objectives constitute the purpose of the enterprise and without them no intelligent planning can
take place.
Objectives are, therefore, the ends towards which the activities of the enterprise are aimed.
They are present not only the end-point of planning but also the end towards which organizing,
directing and controlling are aimed. Objectives provide direction to various activities. They also
serve as the benchmark of measuring the efficiency and effectiveness of the enterprise.
Objectives make every human activity purposeful. Planning has no meaning if it is not related to
certain objectives.
Features of Objectives
The objectives must be predetermined.
A clearly defined objective provides the clear direction for managerial effort.
Objectives must be realistic.
Objectives must be measurable.
Objectives must have social sanction.
All objectives are interconnected and mutually supportive.
Objectives may be short-range, medium-range and long-range.
Objectives may be constructed into a hierarchy.
Advantages of Objectives
Clear definition of objectives encourages unified planning.
Objectives provide motivation to people in the organization.
When the work is goal-oriented, unproductive tasks can be avoided.
Objectives provide standards which aid in the control of human efforts in an
organization.
Objectives serve to identify the organization and to link it to the groups upon which its
existence depends.
Objectives act as a sound basis for developing administrative controls.
Objectives contribute to the management process: they influence the purpose of the
organization, policies, personnel, leadership as well as managerial control.
1) Setting objectives:
For Management by Objectives (MBO) to be effective, individual managers must understand the
specific objectives of their job and how those objectives fit in with the overall company
objectives set by the board of directors.
The managers of the various units or sub-units, or sections of an organization should know not
only the objectives of their unit but should also actively participate in setting these objectives
and make responsibility for them.
Management by Objective (MBO) systems, objectives are written down for each level of the
organization, and individuals are given specific aims and targets.
Managers need to identify and set objectives both for themselves, their units, and their
organizations.
3) Reviewing Progress:
Performance is measured in terms of results. Job performance is the net effect of an employee's
effort as modified by abilities, role perceptions and results produced. Effort refers to the amount
of energy an employee uses in performing a job. Abilities are personal characteristics used in
performing a job and usually do not fluctuate widely over short periods of time. Role perception
refers to the direction in which employees believe they should channel their efforts on their jobs,
and they are defined by the activities and behaviors they believe are necessary.
4) Performance appraisal:
Performance appraisals communicate to employees how they are performing their jobs, and
they establish a plan for improvement. Performance appraisals are extremely important to both
employee and employer, as they are often used to provide predictive information related to
possible promotion. Appraisals can also provide input for determining both individual and
organizational training and development needs. Performance appraisals encourage
performance improvement. Feedback on behavior, attitude, skill or knowledge clarifies for
employees the job expectations their managers hold for them. In order to be effective,
performance appraisals must be supported by documentation and management commitment.
Advantages
Motivation – Involving employees in the whole process of goal setting and increasing employee
empowerment. This increases employee job satisfaction and commitment.
Better communication and Coordination – Frequent reviews and interactions between superiors
and subordinates helps to maintain harmonious relationships within the organization and
also to solve many problems.
Clarity of goals
Subordinates have a higher commitment to objectives they set themselves than those
imposed on them by another person.
Managers can ensure that objectives of the subordinates are linked to the organization's
objectives.
Limitations
There are several limitations to the assumptive base underlying the impact of managing by
objectives, including:
It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes.
It underemphasizes the importance of the environment or context in which the goals are set.
That context includes everything from the availability and quality of resources, to relative
buy-in by leadership and stake-holders.
Companies evaluated their employees by comparing them with the "ideal" employee. Trait
appraisal only looks at what employees should be, not at what they should do.
When this approach is not properly set, agreed and managed by organizations, self-centered
employees might be prone to distort results, falsely representing achievement of targets that
were set in a short-term, narrow fashion. In this case, managing by objectives would be
counterproductive.
STRATEGIES
The term 'Strategy' has been adapted from war and is being increasingly used in
business to reflect broad overall objectives and policies of an enterprise. Literally speaking, the
term 'Strategy' stands for the war-art of the military general, compelling the enemy to fight as
per out chosen terms and conditions.
According to Koontz and O' Donnell, "Strategies must often denote a general programme of
action and deployment of emphasis and resources to attain comprehensive objectives".
Strategies are plans made in the light of the plans of the competitors because a modern
business institution operates in a competitive environment. They are a useful framework for
guiding enterprise thinking and action. A perfect strategy can be built only on perfect knowledge
of the plans of others in the industry. This may be done by the management of a firm putting
itself in the place of a rival firm and trying to estimate their plans.
Characteristics of Strategy
It is the right combination of different factors.
It relates the business organization to the environment.
It is an action to meet a particular challenge, to solve particular problems or to attain
desired objectives.
Strategy is a means to an end and not an end in itself.
It is formulated at the top management level.
It involves assumption of certain calculated risks.
TYPES OF STRATEGIES
According to Michel Porter, the strategies can be classified into three types. They are
Cost leadership strategy
Differentiation strategy
Focus strategy
b) Differentiation Strategy
A differentiation strategy calls for the development of a product or service that offers unique
attributes that are valued by customers and that customers perceive to be better than or
different from the products of the competition. The value added by the uniqueness of the
product may allow the firm to charge a premium price for it. The firm hopes that the higher price
will more than cover the extra costs incurred in offering the unique product. Because of the
product's unique attributes, if suppliers increase their prices the firm may be able to pass along
the costs to its customers who cannot find substitute products easily.
Firms that succeed in a differentiation strategy often have the following internal strengths:
Access to leading scientific research.
Highly skilled and creative product development team.
Strong sales team with the ability to successfully communicate the perceived strengths
of the product.
Corporate reputation for quality and innovation.
The risks associated with a differentiation strategy include imitation by competitors and changes
in customer tastes. Additionally, various firms pursuing focus strategies may be able to achieve
even greater differentiation in their market segments.
c) Focus Strategy
The focus strategy concentrates on a narrow segment and within that segment attempts to
achieve either a cost advantage or differentiation. The premise is that the needs of the group
can be better serviced by focusing entirely on it. A firm using a focus strategy often enjoys a
high degree of customer loyalty, and this entrenched loyalty discourages other firms from
competing directly.
Because of their narrow market focus, firms pursuing a focus strategy have lower volumes and
therefore less bargaining power with their suppliers. However, firms pursuing a differentiation-
focused strategy may be able to pass higher costs on to customers since close substitute
products do not exist.
Firms that succeed in a focus strategy are able to tailor a broad range of product development
strengths to a relatively narrow market segment that they know very well.
Some risks of focus strategies include imitation and changes in the target segments.
Furthermore, it may be fairly easy for a broad-market cost leader to adapt its product in order to
compete directly. Finally, other focusers may be able to carve out sub-segments that they can
serve even better.
POLICIES
Policies are general statements or understandings that guide managers’ thinking in
decision making. They usually do not require action but are intended to guide managers in their
commitment to the decision they ultimately make.
The first step in the process of policy formulation, as shown in the diagram below, is to
capture the values or principles that will guide the rest of the process and form the basis on
which to produce a statement of issues. The statement of issues involves identifying the
opportunities and constraints affecting the local housing market, and is to be produced by
thoroughly analyzing the housing market. The kit provides the user with access to a housing
data base to facilitate this analysis.
The statement of issues will provide the basis for the formulation of a set of housing goals and
objectives, designed to address the problems identified and to exploit the opportunities which
present themselves.
The next step is to identify and analyze the various policy options which can be applied to
achieve the set of goals and objectives. The options available to each local government will
depend on local circumstances as much as the broader context and each local authority will
have to develop its own unique approach to addressing the housing needs of its residents.
An implementation program for realizing the policy recommendations must then be prepared,
addressing budgetary and programming requirements, and allocating roles and responsibilities.
Finally, the implementation of the housing strategy needs to be systematically monitored and
evaluated against the stated goals and objectives, and the various components of the strategy
modified or strengthened, as required.
At each step of the way, each component of the strategy needs to be discussed and debated,
and a public consultation process engaged in. The extent of consultation and the participants
involved will vary with each step.
Importance of Policies
Policies are useful for the following reasons:
They provide guides to thinking and action and provide support to the subordinates.
They delimit the area within which a decision is to be made.
They save time and effort by pre-deciding problems and
They permit delegation of authority to mangers at the lower levels.
DECISION MAKING
The word decision has been derived from the Latin word "decidere" which means
"cutting off". Thus, decision involves cutting off of alternatives between those that are desirable
and those that are not desirable.
In the words of George R. Terry, "Decision-making is the selection based on some criteria from
two or more possible alternatives".
TYPES OF DECISIONS
Programmed and Non-Programmed Decisions: Herbert Simon has grouped organizational
decisions into two categories based on the procedure followed. They are:
Programmed decisions: Programmed decisions are routine and repetitive and are
made within the framework of organizational policies and rules. These policies and rules
are established well in advance to solve recurring problems in the organization.
Programmed decisions have short-run impact. They are, generally, taken at the lower
level of management.
Non-Programmed Decisions: Non-programmed decisions are decisions taken to
meet non-repetitive problems. Non-programmed decisions are relevant for solving
unique/ unusual problems in which various alternatives cannot be decided in advance. A
common feature of non-programmed decisions is that they are novel and non-recurring
and therefore, readymade solutions are not available. Since these decisions are of high
importance and have long-term consequences, they are made by top level management.
Strategic and Tactical Decisions: Organizational decisions may also be classified as
strategic or tactical.
Strategic Decisions: Basic decisions or strategic decisions are decisions which are of
crucial importance. Strategic decisions a major choice of actions concerning allocation of
resources and contribution to the achievement of organizational objectives. Decisions
like plant location, product diversification, entering into new markets, selection of
channels of distribution, capital expenditure etc are examples of basic or strategic
decisions.
Tactical Decisions: Routine decisions or tactical decisions are decisions which are
routine and repetitive. They are derived out of strategic decisions. The various features
of a tactical decision are as follows:
Tactical decision relates to day-to-day operation of the organization and has to
be taken very frequently.
Tactical decision is mostly a programmed one. Therefore, the decision can be
made within the context of these variables.
The outcome of tactical decision is of short-term nature and affects a narrow part
of the organization.
The authority for making tactical decisions can be delegated to lower level
managers because: first, the impact of tactical decision is narrow and of short-
term nature and Second, by delegating authority for such decisions to lower-level
managers, higher level managers are free to devote more time on strategic
decisions.
DECISION MAKING PROCESS
The decision making process is presented in the figure below:
Specific Objective: The need for decision making arises in order to achieve certain specific
objectives. The starting point in any analysis of decision making involves the determination of
whether a decision needs to be made.
Problem Identification: A problem is a felt need, a question which needs a solution. In the
words of Joseph L Massie "A good decision is dependent upon the recognition of the right
problem". The objective of problem identification is that if the problem is precisely and
specifically identifies, it will provide a clue in finding a possible solution. A problem can be
identified clearly, if managers go through diagnosis and analysis of the problem.
Diagnosis: Diagnosis is the process of identifying a problem from its signs and
symptoms. A symptom is a condition or set of conditions that indicates the existence of a
problem. Diagnosing the real problem implies knowing the gap between what is and
what ought to be, identifying the reasons for the gap and understanding the problem in
relation to higher objectives of the organization.
Analysis: Diagnosis gives rise to analysis. Analysis of a problem requires:
Who would make decision?
What information would be needed?
From where the information is available?
Search for Alternatives: A problem can be solved in several ways; however, all the ways
cannot be equally satisfying. Therefore, the decision maker must try to find out the various
alternatives available in order to get the most satisfactory result of a decision. A decision maker
can use several sources for identifying alternatives:
His own past experiences
Practices followed by others and
Using creative techniques.
Evaluation of Alternatives: After the various alternatives are identified, the next step is to
evaluate them and select the one that will meet the choice criteria. /the decision maker must
check proposed alternatives against limits, and if an alternative does not meet them, he can
discard it. Having narrowed down the alternatives which require serious consideration, the
decision maker will go for evaluating how each alternative may contribute towards the objective
supposed to be achieved by implementing the decision.
Choice of Alternative: The evaluation of various alternatives presents a clear picture as to
how each one of them contribute to the objectives under question. A comparison is made
among the likely outcomes of various alternatives and the best one is chosen.
Action: Once the alternative is selected, it is put into action. The actual process of decision
making ends with the choice of an alternative through which the objectives can be achieved.
Results: When the decision is put into action, it brings certain results. These results must
correspond with objectives, the starting point of decision process, if good decision has been
made and implemented properly. Thus, results provide indication whether decision making and
its implementation is proper.
The Rational Decision Making Model is a model which emerges from Organizational Behavior.
The process is one that is logical and follows the orderly path from problem identification
through solution. It provides a structured and sequenced approach to decision making. Using
such an approach can help to ensure discipline and consistency is built into your decision
making process.
4) Generate alternatives
The decision maker generates possible alternatives that could succeed in resolving the
problem. No attempt is made in this step to appraise these alternatives, only to list them.
Virtually all decisions are made in an environment to at least some uncertainty However; the
degree will vary from relative certainty to great uncertainty. There are certain risks involved in
making decisions.
a) Certainty:
In a situation involving certainty, people are reasonably sure about what will happen when they
make a decision. The information is available and is considered to be reliable, and the cause
and effect relationships are known.
b) Uncertainty
In a situation of uncertainty, on the other hand, people have only a meager database, they do
not know whether or not the data are reliable, and they are very unsure about whether or not the
situation may change.
Moreover, they cannot evaluate the interactions of the different variables. For example, a
corporation that decides to expand its Operation to an unfamiliar country may know little about
the country, culture, laws, economic environment, and politics. The political situation may be
volatile that even experts cannot predict a possible change in government.
c) Risk
In a situation with risks, factual information may exist, but it may be incomplete. 1o improve
decision making One may estimate the objective probability of an outcome by using, for
example, mathematical models On the other hand, subjective probability, based on judgment
and experience may be used
All intelligent decision makers dealing with uncertainty like to know the degree and nature of the
risk they are taking in choosing a course of action. One of the deficiencies in using the
traditional approaches of operations research for problem solving is that many of the data used
in model are merely estimates and others are based on probabilities. The ordinary practice is to
have staff specialists conic up with best estimates.
Virtually every decision is based on the interaction of a number of important variables, many of
which has e an element of uncertainty but, perhaps, a fairly high degree of probability. Thus, the
wisdom of launching a new product might depend on a number of critical variables: the cost of
introducing the product, the cost of producing it, the capital investment that will he required, the
price that can be set for the product, the size of the potential market, and the share of the total
market that it will represent.
UNIT III
ORGANIZING
DEFINITION
According to Koontz and O'Donnell, "Organization involves the grouping of activities
necessary to accomplish goals and plans, the assignment of these activities to appropriate
departments and the provision of authority, delegation and co-ordination."
Organization involves division of work among people whose efforts must be co-ordinated to
achieve specific objectives and to implement pre-determined strategies.
a) Determination of Objectives:
It is the first step in building up an organization. Organization is always related to certain
objectives. Therefore, it is essential for the management to identify the objectives before starting
any activity. Organization structure is built on the basis of the objectives of the enterprise. That
means, the structure of the organization can be determined by the management only after
knowing the objectives to be accomplished through the organization. This step helps the
management not only in framing the organization structure but also in achieving the enterprise
objectives with minimum cost and efforts. Determination of objectives will consist in deciding as
to why the proposed organization is to be set up and, therefore, what will be the nature of the
work to be accomplished through the organization.
b) Enumeration of Objectives:
If the members of the group are to pool their efforts effectively, there must be proper
division of the major activities. The first step in organizing group effort is the division of the total
job into essential activities. Each job should be properly classified and grouped. This will enable
the people to know what is expected of them as members of the group and will help in avoiding
duplication of efforts. For example, the work of an industrial concern may be divided into the
following major functions – production, financing, personnel, sales, purchase, etc.
c) Classification of Activities:
The next step will be to classify activities according to similarities and common purposes
and functions and taking the human and material resources into account. Then, closely related
and similar activities are grouped into divisions and departments and the departmental activities
are further divided into sections.
d) Assignment of Duties:
Here, specific job assignments are made to different subordinates for ensuring a
certainty of work performance. Each individual should be given a specific job to do according to
his ability and made responsible for that. He should also be given the adequate authority to do
the job assigned to him. In the words of Kimball and Kimball - "Organization embraces the
duties of designating the departments and the personnel that are to carry on the work, defining
their functions and specifying the relations that are to exist between department and
individuals."
e) Delegation of Authority:
Since so many individuals work in the same organization, it is the responsibility of
management to lay down structure of relationship in the organization. Authority without
responsibility is a dangerous thing and similarly responsibility without authority is an empty
vessel. Everybody should clearly know to whom he is accountable; corresponding to the
responsibility authority is delegated to the subordinates for enabling them to show work
performance. This will help in the smooth working of the enterprise by facilitating delegation of
responsibility and authority.
ORGANIZATION STRUCTURE
An organization structure is a framework that allots a particular space for a particular
department or an individual and shows its relationship to the other. An organization structure
shows the authority and responsibility relationships between the various positions in the
organization by showing who reports to whom. It is an established pattern of relationship among
the components of the organization.
March and Simon have stated that-"Organization structure consists simply of those aspects of
pattern of behavior in the organization that are relatively stable and change only slowly." The
structure of an organization is generally shown on an organization chart. It shows the authority
and responsibility relationships between various positions in the organization while designing
the organization structure, due attention should be given to the principles of sound organization.
FORMAL ORGANIZATION
Chester I Bernard defines formal organization as -"a system of consciously coordinated
activities or forces of two or more persons. It refers to the structure of well-defined jobs, each
bearing a definite measure of authority, responsibility and accountability." The essence of formal
organization is conscious common purpose and comes into being when persons–
Are able to communicate with each other
Are willing to act and
Share a purpose.
Division of labor
Scalar and functional processes
Structure and
Span of control
Thus, a formal organization is one resulting from planning where the pattern of structure has
already been determined by the top management.
INFORMAL ORGANIZATION
Informal organization refers to the relationship between people in the organization based
on personal attitudes, emotions, prejudices, likes, dislikes etc. an informal organization is an
organization which is not established by any formal authority, but arises from the personal and
social relations of the people. These relations are not developed according to procedures and
regulations laid down in the formal organization structure; generally large formal groups give
rise to small informal or social groups. These groups may be based on same taste, language,
culture or some other factor. These groups are not pre-planned, but they develop automatically
within the organization according to its environment.
Characteristics features of informal organization
Informal organization is not established by any formal authority. It is unplanned and arises
spontaneously.
Informal organizations reflect human relationships. It arises from the personal and social
relations amongst the people working in the organization.
Formation of informal organizations is a natural process. It is not based on rules, regulations
and procedures.
The inter-relations amongst the people in an informal organization cannot be shown in an
organization chart.
In the case of informal organization, the people cut across formal channels of
communications and communicate amongst themselves.
The membership of informal organizations is voluntary. It arises spontaneously and not by
deliberate or conscious efforts.
Membership of informal groups can be overlapping as a person may be member of a
number of informal groups.
Informal organizations are based on common taste, problem, language, religion, culture, etc.
it is influenced by the personal attitudes, emotions, whims, likes and dislikes etc. of the
people in the organization.
Types of Staff
The staff position established as a measure of support for the line managers may take the
following forms:
Personal Staff: Here the staff official is attached as a personal assistant or adviser to the line
manager. For example, Assistant to managing director.
Specialized Staff: Such staff acts as the fountainhead of expertise in specialized areas like R
& D, personnel, accounting etc.
General Staff: This category of staff consists of a set of experts in different areas who are
meant to advise and assist the top management on matters called for expertise. For example,
Financial advisor, technical advisor etc.
Disadvantages
Unless the duties and responsibilities of the staff members are clearly indicated by
charts and manuals, there may be considerable confusion throughout the organization
as to the functions and positions of staff members with relation to the line supervisors.
There is generally a conflict between the line and staff executives. The line managers
feel that staff specialists do not always give right type of advice, and staff officials
generally complain that their advice is not properly attended to.
Line managers sometimes may resent the activities of staff members, feeling that
prestige and influence of line managers suffer from the presence of the specialists.
The staff experts may be ineffective because they do not get the authority to implement
their recommendations.
This type of organization requires the appointment of large number of staff officers or
experts in addition to the line officers. As a result, this system becomes quite expensive.
Although expert information and advice are available, they reach the workers through
the officers and thus run the risk of misunderstanding and misinterpretation.
Since staff managers are not accountable for the results, they may not be performing
their duties well.
Line mangers deal with problems in a more practical manner. But staff officials who are
specialists in their fields tend to be more theoretical. This may hamper coordination in
the organization.
a) FUNCTIONAL DEPARTMENTATION
Functional departmentation is the process of grouping activities by functions performed.
Activities can be grouped according to function (work being done) to pursue economies of scale
by placing employees with shared skills and knowledge into departments for example human
resources, finance, production, and marketing. Functional departmentation can be used in all
types of organizations.
Advantages:
Advantage of specialization
Easy control over functions
Pinpointing training needs of manager
It is very simple process of grouping activities.
PRODUCT DEPARTMENTATION
Product departmentation is the process of grouping activities by product line. Tasks can
also be grouped according to a specific product or service, thus placing all activities related to
the product or the service under one manager. Each major product area in the corporation is
under the authority of a senior manager who is specialist in, and is responsible for, everything
related to the product line. Dabur India Limited is the India’s largest Ayurvedic medicine
manufacturer is an example of company that uses product departmentation. Its structure is
based on its varied product lines which include Home care, Health care, Personal care and
Foods.
Advantages
It ensures better customer service
Unprofitable products may be easily determined
It assists in development of all around managerial talent
Makes control effective
It is flexible and new product line can be added easily.
Disadvantages
It is expensive as duplication of service functions occurs in various product divisions
Customers and dealers have to deal with different persons for complaint and information
of different products.
CUSTOMER DEPARTMENTATION
GEOGRAPHIC DEPARTMENTATION
Departmentation by process: -
Advantages
Oriented towards end result.
Professional identification is maintained.
Pinpoints product-profit responsibility.
Disadvantage
Conflict in organization authority exists.
Possibility of disunity of command.
Requires managers effective in human relation
MARTIX DEPARTMENTATION
In actual practice, no single pattern of grouping activities is applied in the organization
structure with all its levels. Different bases are used in different segments of the enterprise.
Composite or hybrid method forms the common basis for classifying activities rather than one
particular method,. One of the mixed forms of organization is referred to as matrix or grid
organization’s According to the situations, the patterns of Organizing varies from case to case.
The form of structure must reflect the tasks, goals and technology if the originations the type of
people employed and the environmental conditions that it faces. It is not unusual to see firms
that utilize the function and project organization combination. The same is true for process and
project as well as other combinations. For instance, a large hospital could have an accounting
department, surgery department, marketing department, and a satellite center project team that
make up its organizational structure.
Advantages
Efficiently manage large, complex tasks
Effectively carry out large, complex tasks
Disadvantages
Requires high levels of coordination
Conflict between bosses
Requires high levels of management skills
SPAN OF CONTROL
Span of Control means the number of subordinates that can be managed efficiently and
effectively by a superior in an organization. It suggests how the relations are designed between
a superior and a subordinate in an organization.
Wide span of control: Wide span of control means a single manager or supervisor oversees
a large number of subordinates. This gives rise to a flat organizational structure.
Advantages:
More Delegation of Authority
Development of Managers
Clear policies
Disadvantages:
Overloaded supervisors
Danger of superiors loss of control
Requirement of highly trained managerial personnel
Block in decision making
CENTRALIZATION:
It is the process of transferring and assigning decision-making authority to higher levels
of an organizational hierarchy. The span of control of top managers is relatively broad, and
there are relatively many tiers in the organization.
Characteristics
Philosophy / emphasis on: top-down control, leadership, vision, strategy.
Decision-making: strong, authoritarian, visionary, charismatic.
Organizational change: shaped by top, vision of leader.
Execution: decisive, fast, coordinated. Able to respond quickly to major issues and changes.
Uniformity. Low risk of dissent or conflicts between parts of the organization.
Advantages of Centralization
Provide Power and prestige for manager
Promote uniformity of policies, practices and decisions
Minimal extensive controlling procedures and practices
Minimize duplication of function
Disadvantages of Centralization
Neglected functions for mid. Level, and less motivated beside personnel.
Nursing supervisor functions as a link officer between nursing director and first-line
management.
DECENTRALIZATION:
It is the process of transferring and assigning decision-making authority to lower levels of
an organizational hierarchy. The span of control of top managers is relatively small, and there
are relatively few tears in the organization, because there is more autonomy in the lower ranks.
Characteristics
Philosophy / emphasis on: bottom-up, political, cultural and learning dynamics.
Decision-making: democratic, participative, detailed.
Organizational change: emerging from interactions, organizational dynamics.
Execution: evolutionary, emergent. Flexible to adapt to minor issues and changes.
Participation, accountability. Low risk of not-invented-here behavior.
Advantages of Decentralization
Raise morale and promote interpersonal relationships
Relieve from the daily administration
Bring decision-making close to action
Develop Second-line managers
Promote employee’s enthusiasm and coordination
Facilitate actions by lower-level managers
Disadvantages of Decentralization
Top-level administration may feel it would decrease their status
Managers may not permit full and maximum utilization of highly qualified personnel
Increased costs. It requires more managers and large staff
It may lead to overlapping and duplication of effort
Centralization and Decentralization are two opposite ways to transfer decision-making power
and to change the organizational structure of organizations accordingly.
There must be a good balance between centralization and decentralization of authority and
power. Extreme centralization and decentralization must be avoided.
DELEGATION OF AUTHORITY
A manager alone cannot perform all the tasks assigned to him. In order to meet the
targets, the manager should delegate authority. Delegation of Authority means division of
authority and powers downwards to the subordinate. Delegation is about entrusting someone
else to do parts of your job. Delegation of authority can be defined as subdivision and sub-
allocation of powers to the subordinates in order to achieve effective results. Elements of
Delegation
Authority - in context of a business organization, authority can be defined as the power and
right of a person to use and allocate the resources efficiently, to take decisions and to give
orders so as to achieve the organizational objectives. Authority must be well- defined. All
people who have the authority should know what is the scope of their authority is and they
shouldn’t misutilize it. Authority is the right to give commands, orders and get the things
done. The top level management has greatest authority. Authority always flows from top to
bottom. It explains how a superior gets work done from his subordinate by clearly explaining
what is expected of him and how he should go about it. Authority should be accompanied
with an equal amount of responsibility. Delegating the authority to someone else doesn’t
imply escaping from accountability. Accountability still rest with the person having the utmost
authority.
Responsibility - is the duty of the person to complete the task assigned to him. A person
who is given the responsibility should ensure that he accomplishes the tasks assigned to
him. If the tasks for which he was held responsible are not completed, then he should not
give explanations or excuses. Responsibility without adequate authority leads to discontent
and dissatisfaction among the person. Responsibility flows from bottom to top. The middle
level and lower level management holds more responsibility. The person held responsible
for a job is answerable for it. If he performs the tasks assigned as expected, he is bound for
praises. While if he doesn’t accomplish tasks assigned as expected, then also he is
answerable for that.
Accountability - means giving explanations for any variance in the actual performance from
the expectations set. Accountability cannot be delegated. For example, if ’A’ is given a task
with sufficient authority, and ’A’ delegates this task to B and asks him to ensure that task is
done well, responsibility rest with ’B’, but accountability still rest with ’A’. The top level
management is most accountable. Being accountable means being innovative as the person
will think beyond his scope of job. Accountability ,in short, means being answerable for the
end result. Accountability can’t be escaped. It arises from responsibility.
DELEGATION PROCESS
The steps involved in delegation are given below
Allocation of duties – The delegator first tries to define the task and duties to the
subordinate. He also has to define the result expected from the subordinates. Clarity of
duty as well as result expected has to be the first step in delegation.
Granting of authority – Subdivision of authority takes place when a superior divides
and shares his authority with the subordinate. It is for this reason; every subordinate
should be given enough independence to carry the task given to him by his superiors.
The managers at all levels delegate authority and power which is attached to their job
positions. The subdivision of powers is very important to get effective results.
Assigning of Responsibility and Accountability – The delegation process does not
end once powers are granted to the subordinates. They at the same time have to be
obligatory towards the duties assigned to them. Responsibility is said to be the factor or
obligation of an individual to carry out his duties in best of his ability as per the directions
of superior. Therefore, it is that which gives effectiveness to authority. At the same time,
responsibility is absolute and cannot be shifted.
Creation of accountability – Accountability, on the others hand, is the obligation of the
individual to carry out his duties as per the standards of performance. Therefore, it is
said that authority is delegated, responsibility is created and accountability is imposed.
Accountability arises out of responsibility and responsibility arises out of authority.
Therefore, it becomes important that with every authority position an equal and opposite
responsibility should be attached.
Therefore every manager, i.e., the delegator has to follow a system to finish up the delegation
process. Equally important is the delegatee’s role which means his responsibility and
accountability is attached with the authority over to here.
STAFFING
Staffing involves filling the positions needed in the organization structure by appointing
competent and qualified persons for the job.
The staffing process encompasses man power planning, recruitment, selection, and training.
a) Manpower requirements:
Manpower Planning which is also called as Human Resource Planning consists of
putting right number of people, right kind of people at the right place, right time, doing the right
things for which they are suited for the achievement of goals of the organization. The primary
function of man power planning is to analyze and evaluate the human resources available in the
organization, and to determine how to obtain the kinds of personnel needed to staff positions
ranging from assembly line workers to chief executives.
b) Recruitment:
Recruitment is the process of finding and attempting to attract job candidates who are
capable of effectively filling job vacancies.
Job descriptions and job specifications are important in the recruiting process because they
specify the nature of the job and the qualifications required of job candidates.
c) Selection:
Selecting a suitable candidate can be the biggest challenge for any organization. The
success of an organization largely depends on its staff. Selection of the right candidate builds
the foundation of any organization's success and helps in reducing turnovers.
RECRUITMENT PROCESS
Recruitment is the process of finding and attempting to attract job candidates who are
capable of effectively filling job vacancies. The recruitment process consists of the following
steps
Identification of vacancy
Preparation of job description and job specification
Selection of sources
Advertising the vacancy
Managing the response
a) Identification of vacancy:
The recruitment process begins with the human resource department receiving requisitions for
recruitment from any department of the company. These contain:
Posts to be filled
Number of persons
Duties to be performed
Qualifications required
c) Selection of sources:
Every organization has the option of choosing the candidates for its recruitment
processes from two kinds of sources: internal and external sources. The sources within the
organization itself (like transfer of employees from one department to other, promotions) to fill a
position are known as the internal sources of recruitment. Recruitment candidates from all the
other sources (like outsourcing agencies etc.) are known as the external sources of the
recruitment.
JOB ANALYSIS
Job Analysis is the process of describing and recording aspects of jobs and specifying
the skills and other requirements necessary to perform the job. The outputs of job analysis are
Job description
Job specification
Job Description
A job description (JD) is a written statement of what the job holder does, how it is done, under
what conditions it is done and why it is done. It describes what the job is all about, throwing light
on job content, environment and conditions of employment. It is descriptive in nature and
defines the purpose and scope of a job. The main purpose of writing a job description is to
differentiate the job from other jobs and state its outer limits.
Contents
A job description usually covers the following information:
Job title: Tells about the job title, code number and the department where it is done.
Job summary: A brief write-up about what the job is all about.
Job activities: A description of the tasks done, facilities used, extent of supervisory help,
etc.
Working conditions: The physical environment of job in terms of heat, light, noise and
other hazards.
Social environment: Size of work group and interpersonal interactions required to do the
job.
Job Specification
Job specification summarizes the human characteristics needed for satisfactory job completion.
It tries to describe the key qualifications someone needs to perform the job successfully. It
spells out the important attributes of a person in terms of education, experience, skills,
knowledge and abilities (SKAs) to perform a particular job. The job specification is a logical
outgrowth of a job description. For each job description, it is desirable to have a job
specification. This helps the organization to find what kinds of persons are needed to take up
specific jobs.
Contents
A job specification usually covers the following information:
Education
Experience
Skill, Knowledge, Abilities
Work Orientation Factors
Age
SELECTION PROCESS
Selecting a suitable candidate can be the biggest challenge for any organisation. The
success of an organization largely depends on its staff. Selection of the right candidate builds
the foundation of any organization's success and helps in reducing turnovers.
Though there is no fool proof selection procedure that will ensure low turnover and high profits,
the following steps generally make up the selection process-
a) Initial Screening
This is generally the starting point of any employee selection process. Initial Screening
eliminates unqualified applicants and helps save time. Applications received from various
sources are scrutinized and irrelevant ones are discarded.
b) Preliminary Interview
It is used to eliminate those candidates who do not meet the minimum eligibility criteria laid
down by the organization. The skills, academic and family background, competencies and
interests of the candidate are examined during preliminary interview. Preliminary interviews are
less formalized and planned than the final interviews. The candidates are given a brief up about
the company and the job profile; and it is also examined how much the candidate knows about
the company. Preliminary interviews are also called screening interviews.
e) References check
Most application forms include a section that requires prospective candidates to put down
names of a few references. References can be classified into - former employer, former
customers, business references, reputable persons. Such references are contacted to get a
feedback on the person in question including his behaviour, skills, conduct etc.
f) Background Verification
A background check is a review of a person's commercial, criminal and (occasionally) financial
records. Employers often perform background checks on employers or candidates for
employment to confirm information given in a job application, verify a person's identity, or
ensure that the individual does not have a history of criminal activity, etc., that could be an issue
upon employment.
g) Final Interview
Final interview is a process in which a potential employee is evaluated by an employer for
prospective employment in their organization. During this process, the employer hopes to
determine whether or not the applicant is suitable for the job. Different types of tests are
conducted to evaluate the capabilities of an applicant, his behaviour, special qualities etc.
Separate tests are conducted for various types of jobs.
h) Physical Examination
If all goes well, then at this stage, a physical examination is conducted to make sure that the
candidate has sound health and does not suffer from any serious ailment.
i) Job Offer
A candidate who clears all the steps is finally considered right for a particular job and is
presented with the job offer. An applicant can be dropped at any given stage if considered unfit
for the job.
Purposes of Orientation
Orientation isn't a nicety! It is used for the following purposes:
1. To Reduce Startup-Costs:
Proper orientation can help the employee get "up to speed" much more quickly, thereby
reducing the costs associated with learning the job.
2. To Reduce Anxiety:
Any employee, when put into a new, strange situation, will experience anxiety that can
impede his or her ability to learn to do the job. Proper orientation helps to reduce anxiety that
results from entering into an unknown situation, and helps provide guidelines for behaviour and
conduct, so the employee doesn't have to experience the stress of guessing.
3. To Reduce Employee Turnover:
Employee turnover increases as employees feel they are not valued, or are put in
positions where they can't possibly do their jobs. Orientation shows that the organization values
the employee, and helps provide tools necessary for succeeding in the job.
4. To Save Time for Supervisor & Co-Workers:
Simply put, the better the initial orientation, the less likely supervisors and co-workers
will have to spend time teaching the employee.
5. To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction:
It is important that employees learn early on what is expected of them, and what to
expect from others, in addition to learning about the values and attitudes of the organization.
While people can learn from experience, they will make many mistakes that are unnecessary
and potentially damaging.
Job specific orientation is best conducted by the immediate supervisor, and/or manager, since
much of the content will be specific to the individual. Often the orientation process will be
ongoing, with supervisors and co-workers supplying coaching.
CARRER DEVELOPMENT
Career development not only improves job performance but also brings about the
growth of the personality. Individuals not only mature regarding their potential capacities but
also become better individuals.
Purpose of development
Management development attempts to improve managerial performance by imparting
Knowledge
Changing attitudes
Increasing skills
The major objective of development is managerial effectiveness through a planned and a
deliberate process of learning. This provides for a planned growth of managers to meet the
future organizational needs.
Development Process:
The development process consists of the following
steps 1. Setting Development Objectives:
It develops a framework from which executive need can be determined.
2. Artaining Development Needs:
It aims at organizational planning & forecast the present and future growth.
Determining Development
Needs: This consists of
Appraisal of present management talent
Management Manpower Inventory
The above two processes will determine the skill deficiencies that are relative to the future
needs of the organization.
4. Conducting Development Programs:
It is carried out on the basis of needs of different individuals, differences in their attitudes
and behavior, also their physical, intellectual and emotional qualities. Thus a comprehensive
and well conceived program is prepared depending on the organizational needs and the
time & cost involved.
5. Program Evaluation:
It is an attempt to assess the value of training in order to achieve organizational objectives.
TRAINING
Training is a process of learning a sequence of programmed behaviour. It improves the
employee's performance on the current job and prepares them for an intended job. Purpose of
Training:
To improve Productivity: Training leads to increased operational productivity and increased
company profit.
To improve Quality: Better trained workers are less likely to make operational mistakes.
To improve Organizational Climate: Training leads to improved production and product
quality which enhances financial incentives. This in turn increases the overall morale of the
organization.
To increase Health and Safety: Proper training prevents industrial accidents.
Personal Growth: Training gives employees a wider awareness, an enlarged skill base and
that leads to enhanced personal growth.
Identifying Training needs: A training program is designed to assist in providing solutions for
specific operational problems or to improve performance of a trainee.
Organizational determination and Analysis: Allocation of resources that relate to
organizational goal.
Operational Analysis: Determination of a specific employee behaviour required for a
particular task.
Man Analysis: Knowledge, attitude and skill one must possess for attainment of
organizational objectives
Getting ready for the job: The trainer has to be prepared for the job. And also who needs to
be trained - the newcomer or the existing employee or the supervisory staff.
Preparation of the learner:
Putting the learner at ease
Stating the importance and ingredients of the job
Creating interest
Placing the learner as close to his normal working position
Familiarizing him with the equipment, materials and trade terms
Presentation of Operation and Knowledge: The trainer should clearly tell, show, illustrate and
question in order to convey the new knowledge and operations. The trainee should be
encouraged to ask questions in order to indicate that he really knows and understands the job.
Performance Try out: The trainee is asked to go through the job several times. This gradually
builds up his skill, speed and confidence.
Follow-up: This evaluates the effectiveness of the entire training effort
TRAINING METHODS
Training methods can be broadly classified as on-the-job training and off-the-job taining
a) On-the-job training
On the job training occurs when workers pick up skills whilst working along side experienced
workers at their place of work. For example this could be the actual assembly line or offices
where the employee works. New workers may simply “shadow” or observe fellow employees
to begin with and are often given instruction manuals or interactive training programmes to work
through.
b) Off-the-job training
This occurs when workers are taken away from their place of work to be trained. This may
take place at training agency or local college, although many larger firms also have their own
training centres. Training can take the form of lectures or self-study and can be used to develop
more general skills and knowledge that can be used in a variety of situations. The various types
of off-the-job training are
Instructor presentation: The trainer orally presents new information to the trainees, usually
through lecture. Instructor presentation may include classroom lecture, seminar, workshop, and
the like.
Group discussion: The trainer leads the group of trainees in discussing a topic.
Demonstration: The trainer shows the correct steps for completing a task, or shows an
example of a correctly completed task.
Assigned reading: The trainer gives the trainees reading assignments that provide new
information.
Exercise: The trainer assigns problems to be solved either on paper or in real situations
related to the topic of the training activity.
Case study: The trainer gives the trainees information about a situation and directs them to
come to a decision or solve a problem concerning the situation.
Role play: Trainees act out a real-life situation in an instructional setting.
Field visit and study tour: Trainees are given the opportunity to observe and interact with the
problem being solved or skill being learned.
CAREER STAGES
What people want from their careers also varies according to the stage of one's career.
What may have been important in an early stage may not be important in a later one. Four
distinct career stages have been identified: trial, establishment/advancement, mid-career, and
late career. Each stage represents different career needs and interests of the individual
Trial stage: The trial stage begins with an individual's exploration of career-related matters
and ends usually at about age 25 with a commitment on the part of the individual to a particular
occupation. Until the decision is made to settle down, the individual may try a number of jobs
and a number of organizations. Unfortunately for many organizations, this trial and exploration
stage results in high level of turnover among new employees. Employees in this stage need
opportunities for self-exploration and a variety of job activities or assignments.
Mid Career Crisis Sub Stage: The period occurring between the mid-thirties and mid-forties
during which people often make a major reassessment of their progress relative to their original
career ambitions and goals.
Maintenance stage: The mid-career stage, which occurs roughly between the ages 45 and
64, has also been referred to as the maintenance stage. This stage is typified by a continuation
of established patterns of work behavior. The person is no longer trying to establish a place for
himself or herself in the organization, but seeks to maintain his or her position. This stage is
viewed as a mid-career plateau in which little new ground is broken. The individual in this stage
may need some technical updating in his or her field. The employee should be encouraged to
develop new job skills in order to avoid early stagnation and decline.
Late-career stage: In this stage the career lessens in importance and the employee plans for
retirement and seeks to develop a sense of identity outside the work environment.
PERFORMANCE APPRAISAL
Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee. The focus of the performance appraisal is measuring
and improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
e) Discussing results:
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The results,
the problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have an
effect on the employees’ future performance. The purpose of the meeting should be to solve the
problems faced and motivate the employees to perform better.
f) Decision making:
The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers etc.
UNIT IV
DIRECTING
DEFINITION
"Activating deals with the steps a manager takes to get sub-ordinates and others
to carry out plans" - Newman and Warren.
Directing concerns the total manner in which a manager influences the actions of subordinates.
It is the final action of a manager in getting others to act after all preparations have been
completed.
Characteristics
Elements of Management
Continuing Function
Pervasive Function
Creative Function
Linking function
Management of Human Factor
Scope of Directing
Initiates action
Ensures coordination
Improves efficiency
Facilitates change
Assists stability and growth
Elements of Directing
The three elements of directing are
Motivation
Leadership
Communication
CREATIVITY AND INNOVATION
Often used interchangeably, they should to be considered separate and distinct.
Creativity can be described as problem identification and idea generation and innovation is
considered as idea selection, development and commercialization.
Creativity is creation of new ideas and Innovation is implementation of the new ideas.
There cannot be innovation without creativity. There can be creativity without innovation but it
has no value.
Steps involved in creativity
Preparation: This is the first stage at which the base for creativity and innovation is defined;
the mind is prepared for subsequent use in creative thinking. During preparation the individual is
encouraged to appreciate the fact that every opportunity provides situations that can educate
and experiences from which to learn.
The creativity aspect is kindled through a quest to become more knowledgeable. This can be
done through reading about various topics and/or subjects and engaging in discussions with
others. Taking part in brainstorming sessions in various forums like professional and trade
association seminars, and taking time to study other countries and cultures to identify viable
opportunities is also part of preparation. Of importance is the need to cultivate a personal ability
to listen and learn from others.
Investigation: This stage of enhancing entrepreneurial creativity and innovation involves the
business owner taking time to study the problem at hand and what its various components are.
Transformation: The information thus accumulated and acquired should then be subjected
to convergent and divergent thinking which will serve to highlight the inherent similarities and
differences. Convergent thinking will help identify aspects that are similar and connected while
divergent thinking will highlight the differences. This twin manner of thinking is of particular
importance in realizing creativity and innovation for the following reasons:
One will be able to skim the details and see what the bigger picture is the
situation/problem's components can be reordered and in doing so new patterns can be
identified.
It will help visualize a number of approaches that can be used to simultaneously tackle
the problem and the opportunity.
One's decision-making abilities will be bettered such that the urge to make snap
decisions will be resisted.
Incubation: At this stage in the quest for creativity and innovation it is imperative that the
subconscious reflect on the accumulated information, i.e. through incubation, and this can be
improved or augmented when the entrepreneur:
Engages in an activity completely unrelated to the problem/opportunity under scrutiny.
Takes time to daydream i.e. letting the mind roam beyond any restrictions self-imposed
or otherwise.
Relax and play
Study the problem/opportunity in a wholly different environment
Illumination: This happens during the incubation stage and will often be spontaneous. The
realizations from the past stages combine at this instance to form a breakthrough.
Verification: This is where the entrepreneur attempts to artain whether the creativity of
thought and the action of innovation are truly effective as anticipated. It may involve activities
like simulation, piloting, prototype building, test marketing, and various experiments. While the
tendency to ignore this stage and plunge headlong with the breakthrough may be tempting, the
transformation stage should ensure that the new idea is put to the test.
MOTIVATION AND SATISFACTION
MOTIVATION
"Motivation" is a Latin word, meaning "to move". Human motives are internalized goals within
individuals. Motivation may be defined as those forces that cause people to behave in certain
ways. Motivation encompasses all those pressures and influences that trigger, channel, and
sustain human behavior. Most successful managers have learned to understand the concept of
human motivation and are able to use that understanding to achieve higher standards of
subordinate work performance.
According to Koontz and O'Donnell, "Motivation is a class of drives, needs, wishes and similar
forces".
IMPORTANCE OF MOTIVATION
A manager's primary task is to motivate others to perform the tasks of the organization.
Therefore, the manager must find the keys to get subordinates to come to work regularly and on
time, to work hard, and to make positive contributions towards the effective and efficient
achievement of organizational objectives. Motivation is an effective instrument in the hands of a
manager for inspiring the work force and creating confidence in it. By motivating the work force,
management creates "will to work" which is necessary for the achievement of organizational
goals. The various benefits of motivation are:-
Motivation is one of the important elements in the directing process. By motivating the
workers, a manager directs or guides the workers' actions in the desired direction for
accomplishing the goals of the organization.
Workers will tend to be as efficient as possible by improving upon their skills and knowledge
so that they are able to contribute to the progress of the organization thereby increasing
productivity.
For performing any tasks, two things are necessary. They are: (a) ability to work and (b)
willingness to work. Without willingness to work, ability to work is of no use. The willingness
to work can be created only by motivation.
Organizational effectiveness becomes, to some degree, a question of management's ability
to motivate its employees, to direct at least a reasonable effort towards the goals of the
organization.
Motivation contributes to good industrial relations in the organization. When the workers are
motivated, contented and disciplined, the frictions between the workers and the
management will be reduced.
Motivation is the best remedy for resistance to changes. When changes are introduced in an
organization, generally, there will be resistance from the workers. But if the workers of an
organization are motivated, they will accept, introduce and implement the changes whole
heartily and help to keep the organization on the right track of progress.
Motivation facilitates the maximum utilization of all factors of production, human, physical
and financial resources and thereby contributes to higher production.
Motivation promotes a sense of belonging among the workers. The workers feel that the
enterprise belongs to them and the interest of the enterprise is their interests.
Many organizations are now beginning to pay increasing attention to developing their
employees as future resources upon which they can draw as they grow and develop.
SATISFACTION
Employee satisfaction (Job satisfaction) is the terminology used to describe whether
employees are happy and contented and fulfilling their desires and needs at work. Many
measures purport that employee satisfaction is a factor in employee motivation, employee goal
achievement, and positive employee morale in the workplace.
Employee satisfaction, while generally a positive in your organization, can also be a downer if
mediocre employees stay because they are satisfied with your work environment.
Factors contributing to employee satisfaction include treating employees with respect, providing
regular employee recognition, empowering employees, offering above industry-average benefits
and compensation, providing employee perks and company activities, and positive management
within a success framework of goals, measurements, and expectations.
Employee satisfaction is often measured by anonymous employee satisfaction surveys
administered periodically that gauge employee satisfaction in areas such as:
management,
understanding of mission and vision,
empowerment,
teamwork,
communication, and
Coworker interaction.
The facets of employee satisfaction measured vary from company to company.
A second method used to measure employee satisfaction is meeting with small groups of
employees and asking the same questions verbally. Depending on the culture of the company,
either method can contribute knowledge about employee satisfaction to managers and
employees.
JOB DESIGN
It is the process of Work arrangement (or rearrangement) aimed at reducing or
overcoming job dissatisfaction and employee alienation arising from repetitive and
mechanistic tasks. Through job design, organizations try to raise productivity levels
by offering non-monetary rewards such as greater satisfaction from a sense of personal
achievement in meeting the increased challenge and responsibility of one's work.
a) Positive Motivation:
This type of motivation is generally based on reward. A positive motivation involves the
possibility of increased motive satisfaction. According to Flippo - "Positive motivation is a
process of attempting to influence others to do your will through the possibility of gain or
reward". Incentive motivation is the "pull" mechanism. The receipt of awards, due recognition
and praise for work-well done definitely lead to good team spirit, co-operation and a feeling of
happiness.
Positive motivation include:-
Praise and credit for work done
Wages and Salaries
Appreciation
A sincere interest in subordinates as individuals
Delegation of authority and responsibility
Negative Motivation:
This type of motivation is based on force and fear. Fear causes persons to act in a certain way
because they fear the consequences. Negative motivation involves the possibility of decreased
motive satisfaction. It is a "push" mechanism. The imposition of punishment frequently results in
frustration among those punished, leading to the development of maladaptive behaviour. It also
creates a hostile state of mind and an unfavourable attitude to the job. However, there is no
management which has not used the negative motivation at some time or the other.
MOTIVATION THEORIES
Some of the motivation theories are discussed below
On analysis of the assumptions it can be detected that theory X assumes that lower-order
needs dominate individuals and theory Y assumes that higher-order needs dominate
individuals. An organization that is run on Theory X lines tends to be authoritarian in nature, the
word “authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to
command.” In contrast Theory Y organizations can be described as “participative”, where the
aims of the organization and of the individuals in it are integrated; individuals can achieve their
own goals best by directing their efforts towards the success of the organization.
All of the needs are structured into a hierarchy and only once a lower level of need has been
fully met, would a worker be motivated by the opportunity of having the next need up in the
hierarchy satisfied. For example a person who is dying of hunger will be motivated to achieve a
basic wage in order to buy food before worrying about having a secure job contract or the
respect of others.
A business should therefore offer different incentives to workers in order to help them fulfill each
need in turn and progress up the hierarchy. Managers should also recognize that workers are
not all motivated in the same way and do not all move up the hierarchy at the same pace. They
may therefore have to offer a slightly different set of incentives from worker to worker.
If people feel that they are not equally rewarded they either reduce the quantity or quality of
work or migrate to some other organization. However, if people perceive that they are rewarded
higher, they may be motivated to work harder.
Importance of Leadership
Aid to authority
Motive power to group efforts
Basis for co operation
Integration of Formal and Informal Organization.
LEADERSHIP STYLES
The leadership style we will discuss here are:
Autocratic style
Democratic Style
Laissez Faire Style
a) Autocratic style
Manager retains as much power and decision-making authority as possible. The manager does
not consult employees, nor are they allowed to give any input. Employees are expected to obey
orders without receiving any explanations. The motivation environment is produced by creating
a structured set of rewards and punishments.
Advantages
Reduced stress due to increased control
A more productive group ‘while the leader is watching’
Improved logistics of operations
Faster decision making
Disadvantages
Short-termistic approach to management.
Manager perceived as having poor leadership
skills Increased workload for the manager
People dislike being ordered around
Teams become dependent upon their leader
b) Democratic Style
Democratic Leadership is the leadership style that promotes the sharing of responsibility,
the exercise of delegation and continual consultation.
Advantages
Positive work environment
Successful initiatives
Creative thinking
Reduction of friction and office politics
Reduced employee turnover
Disadvantages
Takes long time to take decisions
Danger of pseudo participation
Like the other styles, the democratic style is not always appropriate. It is most successful
when used with highly skilled or experienced employees or when implementing operational
changes or resolving individual or group problems.
c) Laissez-Faire Style
This French phrase means “leave it be” and is used to describe a leader who leaves
his/her colleagues to get on with their work. The style is largely a "hands off" view that tends to
minimize the amount of direction and face time required.
Advantages
No work for the leader
Frustration may force others into leadership roles
Allows the visionary worker the opportunity to do what they want, free from interference
Empowers the group
Disadvantages
It makes employees feel insecure at the unavailability of a manager.
The manager cannot provide regular feedback to let employees know how well they are
doing.
Managers are unable to thank employees for their good work.
The manager doesn’t understand his or her responsibilities and is hoping the employees
can cover for him or her.
LEADERSHIP THEORIES
The various leadership theories are
Description
Early research on leadership was based on the study of people who were already great leaders.
These people were often from the aristocracy, as few from lower classes had the opportunity to
lead. This contributed to the notion that leadership had something to do with breeding.
The idea of the Great Man also strayed into the mythic domain, with notions that in times of
need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to people
such as Eisenhower and Churchill, let alone those further back along the timeline, even to
Jesus, Moses, Mohammed and the Buddah.
Discussion
Gender issues were not on the table when the 'Great Man' theory was proposed. Most leaders
were male and the thought of a Great Woman was generally in areas other than leadership.
Most researchers were also male, and concerns about androcentric bias were a long way from
being realized.
Trait Theory:
Assumptions
People are born with inherited traits.
Some traits are particularly suited to leadership.
People who make good leaders have the right (or sufficient) combination of traits.
Description
Early research on leadership was based on the psychological focus of the day, which was of
people having inherited characteristics or traits. Attention was thus put on discovering these
traits, often by studying successful leaders, but with the underlying assumption that if other
people could also be found with these traits, then they, too, could also become great leaders.
McCall and Lombardo (1983) researched both success and failure identified four primary traits
by which leaders could succeed or 'derail':
Emotional stability and composure: Calm, confident and predictable, particularly when under
stress.
Admitting error: Owning up to mistakes, rather than putting energy into covering up.
Good interpersonal skills: able to communicate and persuade others without resort to negative
or coercive tactics.
Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and
narrow-minded) area of expertise.
Behavioral Theory:
Assumptions
Leaders can be made, rather than are born.
Successful leadership is based in definable, learnable behavior.
Description
Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at
what leaders actually do.
If success can be defined in terms of describable actions, then it should be relatively easy for
other people to act in the same way. This is easier to teach and learn then to adopt the more
ephemeral 'traits' or 'capabilities'.
Participative
Leadership: Assumptions
Involvement in decision-making improves the understanding of the issues involved by
those who must carry out the decisions.
People are more committed to actions where they have involved in the relevant decision-
making.
People are less competitive and more collaborative when they are working on joint
goals.
When people make decisions together, the social commitment to one another is greater
and thus increases their commitment to the decision.
Several people deciding together make better decisions than one person alone.
Description
A Participative Leader, rather than taking autocratic decisions, seeks to involve other people in
the process, possibly including subordinates, peers, superiors and other stakeholders. Often,
however, as it is within the managers' whim to give or deny control to his or her subordinates,
most participative activity is within the immediate team. The question of how much influence
others are given thus may vary on the manager's preferences and beliefs, and a whole
spectrum of participation is possible
Situational Leadership:
Assumptions
The best action of the leader depends on a range of situational factors.
Description
When a decision is needed, an effective leader does not just fall into a single preferred style. In
practice, as they say, things are not that simple.
Factors that affect situational decisions include motivation and capability of followers. This, in
turn, is affected by factors within the particular situation. The relationship between followers and
the leader may be another factor that affects leader behavior as much as it does follower
behavior.
The leaders' perception of the follower and the situation will affect what they do rather than the
truth of the situation. The leader's perception of themselves and other factors such as stress
and mood will also modify the leaders' behavior.
Contingency Theory:
Assumptions
The leader's ability to lead is contingent upon various situational factors, including the
leader's preferred style, the capabilities and behaviors of followers and also various
other situational factors.
Description
Contingency theories are a class of behavioral theory that contend that there is no one best way
of leading and that a leadership style that is effective in some situations may not be successful
in others.
An effect of this is that leaders who are very effective at one place and time may become
unsuccessful either when transplanted to another situation or when the factors around them
change.
Contingency theory is similar to situational theory in that there is an assumption of no simple
one right way. The main difference is that situational theory tends to focus more on the
behaviors that the leader should adopt, given situational factors (often about follower behavior),
whereas contingency theory takes a broader view that includes contingent factors about leader
capability and other variables within the situation.
Transactional Leadership:
Assumptions
People are motivated by reward and punishment.
Social systems work best with a clear chain of command.
When people have agreed to do a job, a part of the deal is that they cede all authority to
their manager.
The prime purpose of a subordinate is to do what their manager tells them to do.
Description
The transactional leader works through creating clear structures whereby it is clear what is
required of their subordinates, and the rewards that they get for following orders. Punishments
are not always mentioned, but they are also well-understood and formal systems of discipline
are usually in place.
The early stage of Transactional Leadership is in negotiating the contract whereby the
subordinate is given a salary and other benefits, and the company (and by implication the
subordinate's manager) gets authority over the subordinate.
When the Transactional Leader allocates work to a subordinate, they are considered to be fully
responsible for it, whether or not they have the resources or capability to carry it out. When
things go wrong, then the subordinate is considered to be personally at fault, and is punished for
their failure (just as they are rewarded for succeeding).
h)Transformational Leadership:
Assumptions
People will follow a person who inspires them.
A person with vision and passion can achieve great things.
The way to get things done is by injecting enthusiasm and energy.
Description
Working for a Transformational Leader can be a wonderful and uplifting experience. They put
passion and energy into everything. They care about you and want you to succeed.
Transformational Leaders are often charismatic, but are not as narcissistic as pure Charismatic
Leaders, who succeed through a belief in themselves rather than a belief in others.
One of the traps of Transformational Leadership is that passion and confidence can easily be
mistaken for truth and reality.
Transformational Leaders, by definition, seek to transform. When the organization does not
need transforming and people are happy as they are, then such a leader will be frustrated. Like
wartime leaders, however, given the right situation they come into their own and can be
personally responsible for saving entire companies.
COMMUNICATION
Communication is the exchange of messages between people for the purpose of
achieving common meanings. Unless common meanings are shared, managers find it
extremely difficult to influence others. Whenever group of people interact, communication takes
place. Communication is the exchange of information using a shared set of symbols. It is the
process that links group members and enables them to coordinate their activities. Therefore,
when managers foster effective communication, they strengthen the
connections between employees and build cooperation. Communication also functions to build
and reinforce interdependence between various parts of the organization. As a linking
mechanism among the different organizational subsystems, communication is a central feature
of the structure of groups and organizations. It helps to coordinate tasks and activities within
and between organizations.
DEFINITION
According to Koontz and O'Donnell, "Communication, is an intercourse by words, letters
symbols or messages, and is a way that the organization members shares meaning and
understanding with another".
a) Source:
The source initiates a message. This is the origin of the communication and can be an
individual, group or inanimate object. The effectiveness of a communication depends to a
considerable degree on the characteristics of the source. The person who initiates the
communication process is known as sender, source or communicator. In an organization, the
sender will be a person who has a need or desire to send a message to others. The sender has
some information which he wants to communicate to some other person to achieve some
purpose. By initiating the message, the sender attempts to achieve understanding and change
in the behaviour of the receiver.
b) Encoding:
Once the source has decided what message to communicate, the content of the message must
be put in a form the receiver can understand. As the background for encoding information, the
sender uses his or her own frame of reference. It includes the individual's view of the
organization or situation as a function of personal education, interpersonal relationships,
attitudes, knowledge and experience. Three conditions are necessary for successful encoding
the message.
Skill: Successful communicating depends on the skill you posses. Without the requisite
skills, the message of the communicator will not reach the requisite skills; the message
of the communicator will not reach the receiver in the desired form. One's total
communicative success includes speaking, reading, listening and reasoning skills.
Attitudes: Our attitudes influence our behaviour. We hold predisposed ideas on a
number of topics and our communications are affected by these attitudes.
Knowledge: We cannot communicate what we don't know. The amount of knowledge
the source holds about his or her subject will affect the message he or she seeks to
transfer.
The Message:
The message is the actual physical product from the source encoding. The message contains
the thoughts and feelings that the communicator intends to evoke in the receiver. The message
has two primary components:-
The Content: The thought or conceptual component of the message is contained in the
words, ideas, symbols and concepts chosen to relay the message.
The Affect: The feeling or emotional component of the message is contained in the
intensity, force, demeanour (conduct or behaviour), and sometimes the gestures of the
communicator.
The Channel:
The actual means by which the message is transmitted to the receiver (Visual, auditory, written
or some combination of these three) is called the channel. The channel is the medium through
which the message travels. The channel is the observable carrier of the message.
Communication in which the sender's voice is used as the channel is called oral communication.
When the channel involves written language, the sender is using written communication. The
sender's choice of a channel conveys additional information beyond that contained in the
message itself. For example, documenting an employee's poor performance in writing conveys
that the manager has taken the problem seriously.
f) Decoding:
Decoding means interpreting what the message means. The extent to which the decoding by
the receiver depends heavily on the individual characteristics of the sender and receiver. The
greater the similarity in the background or status factors of the communicators, the greater the
probability that a message will be perceived accurately. Most messages can be decoded in
more than one way. Receiving and decoding a message are a type of perception. The decoding
process is therefore subject to the perception biases.
g) The Receiver:
The receiver is the object to whom the message is directed. Receiving the message means one
or more of the receiver's senses register the message - for example, hearing the sound of a
supplier's voice over the telephone or seeing the boss give a thumbs-up signal. Like the sender,
the receiver is subject to many influences that can affect the understanding of the message.
Most important, the receiver will perceive a communication in a manner that is consistent with
previous experiences. Communications that are not consistent with expectations is likely to be
rejected.
h) Feedback:
The final link in the communication process is a feedback loop. Feedback, in effect, is
communication travelling in the opposite direction. If the sender pays attention to the feedback
and interprets it accurately, the feedback can help the sender learn whether the original
communication was decoded accurately. Without feedback, one-way communication occurs
between managers and their employees. Faced with differences in their power, lack of time, and
a desire to save face by not passing on negative information, employees may be discouraged
from providing the necessary feedback to their managers.
a) Filtering:
Filtering refers to a sender manipulating information so it will be seen more favourably by
the receiver. The major determinant of filtering is the number of levels in an organization's
structure. The more vertical levels in the organization's hierarchy, the more opportunities for
filtering. Sometimes the information is filtered by the sender himself. If the sender is hiding some
meaning and disclosing in such a fashion as appealing to the receiver, then he is "filtering" the
message deliberately. A manager in the process of altering communication in his favour is
attempting to filter the information.
b) Selective Perception:
Selective perception means seeing what one wants to see. The receiver, in the
communication process, generally resorts to selective perception i.e., he selectively perceives
the message based on the organizational requirements, the needs and characteristics,
background of the employees etc. Perceptual distortion is one of the distressing barriers to the
effective communication. People interpret what they see and call it a reality. In our regular
activities, we tend to see those things that please us and to reject or ignore unpleasant things.
Selective perception allows us to keep out dissonance (the existence of conflicting elements in
our perceptual set) at a tolerable level. If we encounter something that does not fit out current
image of reality, we structure the situation to minimize our dissonance. Thus, we manage to
overlook many stimuli from the environment that do not fit into out current perception of the
world. This process has significant implications for managerial activities. For example, the
employment interviewer who expects a female job applicant to put her family ahead of her
career is likely to see that in female applicants, regardless of whether the applicants feel that
way or not.
c) Emotions:
How the receiver feels at the time of receipt of information influences effectively how he
interprets the information. For example, if the receiver feels that the communicator is in a jovial
mood, he interprets that the information being sent by the communicator to be good and
interesting. Extreme emotions and jubilation or depression are quite likely to hinder the
effectiveness of communication. A person's ability to encode a message can become impaired
when the person is feeling strong emotions. For example, when you are angry, it is harder to
consider the other person's viewpoint and to choose words carefully. The angrier you are, the
harder this task becomes. Extreme emotions – such as jubilation or depression - are most likely
to hinder effective communication. In such instances, we are most prone to disregard our
rational and objective thinking processes and substitute emotional judgments.
d) Language:
Communicated message must be understandable to the receiver. Words mean different
things to different people. Language reflects not only the personality of the individual but also
the culture of society in which the individual is living. In organizations, people from different
regions, different backgrounds, and speak different languages. People will have different
academic backgrounds, different intellectual facilities, and hence the jargon they use varies.
Often, communication gap arises because the language the sender is using may be
incomprehensible, vague and indigestible. Language is a central element in communication. It
may pose a barrier if its use obscures meaning and distorts intent. Words mean different things
to different people. Age, education and cultural background are three of the more obvious
variables that influence the language a person uses and the definitions he or she gives to
words. Therefore, use simple, direct, declarative language.
Speak in brief sentences and use terms or words you have heard from you audience. As much
as possible, speak in the language of the listener. Do not use jargon or technical language
except with those who clearly understand it.
e) Stereotyping:
Stereotyping is the application of selective perception. When we have preconceived
ideas about other people and refuse to discriminate between individual behaviours, we are
applying selective perception to our relationship with other people. Stereotyping is a barrier to
communications because those who stereotype others use selective perception in their
communication and tend to hear only those things that confirm their stereotyped images.
Consequently, stereotypes become more deeply ingrained as we find more "evidence" to
confirm our original opinion. Stereotyping has a convenience function in our interpersonal
relations. Since people are all different, ideally we should react and interact with each person
differently. To do this, however, requires considerable psychological effort. It is much easier to
categorize (stereotype) people so that we can interact with them as members of a particular
category. Since the number of categories is small, we end up treating many people the same
even though they are quite different. Our communications, then, may be directed at an
individual as a member of a category at the sacrifice of the more effective communication on a
personal level.
f) Status Difference:
The organizational hierarchy pose another barrier to communication within organization,
especially when the communication is between employee and manager. This is so because the
employee is dependent on the manager as the primary link to the organization and hence more
likely to distort upward communication than either horizontal or downward communication.
Effective supervisory skills make the supervisor more approachable and help reduce the risk of
problems related to status differences. In addition, when employees feel secure, they are more
likely to be straightforward in upward communication.
g) Use of Conflicting Signals:
A sender is using conflicting signals when he or she sends inconsistent messages. A
vertical message might conflict with a nonverbal one. For example, if a manager says to his
employees, "If you have a problem, just come to me. My door is always open", but he looks
annoyed whenever an employee knocks on his door". Then we say the manager is sending
conflicting messages. When signals conflict, the receivers of the message have to decide which,
if any, to believe.
h) Reluctance to Communicate:
For a variety of reasons, managers are sometimes reluctant to transmit messages. The reasons
could be:-
They may doubt their ability to do so.
They may dislike or be weary of writing or talking to others.
They may hesitate to deliver bad news because they do not want to face a negative
reaction.
When someone gives in to these feelings, they become a barrier to effective communications.
i) Projection:
Projection has two meanings.
Projecting one's own motives into others behavior. For example, managers who are
motivated by money may assume their subordinates are also motivated by it. If the
subordinate's prime motive is something other than money, serious problems may arise.
The use of defense mechanism to avoid placing blame on oneself. As a defense
mechanism, the projection phenomenon operates to protect the ego from unpleasant
communications. Frequently, individuals who have a particular fault will see the same fault in
others, making their own fault seem not so serious.
i) Downward Communication
Downward communication involves a message travelling to one or more receivers at the lower
level in the hierarchy. The message frequently involves directions or performance feedback.
The downward flow of communication generally corresponds to the formal organizational
communications system, which is usually synonymous with the chain of command or line of
authority. This system has received a great deal of attention from both managers and behavioral
scientists since it is crucial to organizational functioning.
ORGANIZATIONAL CULTURE
Organizational culture is an idea in the field of organizational studies and management
which describes the psychology, attitudes, experiences, beliefs and values (personal and
cultural values) of an organization. It has been defined as "the specific collection of values and
norms that are shared by people and groups in an organization and that control the way they
interact with each other and with stakeholders outside the organization."
Tough-Guy Culture or Macho Culture (Fast feedback and reward, high risk):
Stress results from the high risk and the high potential decrease or increase of the
reward.
Focus on now, individualism prevails over teamwork.
Typical examples: advertising, brokerage, sports.
The most important aspect of this kind of culture is big rewards and quick feedback. This kind of
culture is mostly associated with quick financial activities like brokerage and currency trading. It
can also be related with activities, like a sports team or branding of an athlete, and also the
police team. This kind of culture is considered to carry along, a high amount of stress, and
people working within the organization are expected to possess a strong mentality, for survival
in the organization.
This type of organization does not involve much risk, as the organizations already consist of a
firm base along with a strong client relationship. This kind of culture is mostly opted by large
organizations which have strong customer service. The organization with this kind of culture is
equipped with specialized jargons and is qualified with multiple team meetings.
Bet Your Company Culture (Slow feedback and reward, high risk):
Stress results from high risk and delay before knowing if actions have paid off.
Focus on long-term, preparation and planning.
Typical examples: pharmaceutical companies, aircraft manufacturers, oil prospecting
companies.
In this kind of culture, the company makes big and important decisions over high stakes
endeavors. It takes time to see the consequence of these decisions. Companies that postulate
experimental projects and researches as their core business, adopt this kind of culture. This
kind of culture can be adopted by a company designing experimental military weapons for
example.
This type of culture does not include the process of feedback. In this kind of culture, the
organization is extremely cautious about the adherence to laws and prefer to abide by them.
This culture provides consistency to the organization and is good for public services.
One of the most difficult tasks to undertake in an organization, is to change its work culture. An
organizational culture change requires an organization to make amendments to its policies, its
workplace ethics and its management system. It needs to start right from its base functions
which includes support functions, operations and the production floor, which finally affects the
overall output of the organization. It requires a complete overhaul of the entire system, and not
many organizations prefer it as the process is a long and tedious one, which requires patience
and endurance. However, when an organization succeeds in making a change on such a
massive level, the results are almost always positive and fruitful. The different types of
organizational cultures mentioned above must have surely helped you to understand them. You
can also adopt one of them for your own organization, however, persistence and patience is
ultimately of the essence.
CONTROL PROCESS
The basic control process involves mainly these steps as shown in Figure
Measurement of Performance:
When managers have taken a measure of organizational performance, their next step in
controlling is to compare this measure against some standard. A standard is the level of activity
established to serve as a model for evaluating organizational performance. The performance
evaluated can be for the organization as a whole or for some individuals working within the
organization. In essence, standards are the yardsticks that determine whether organizational
performance is adequate or inadequate.
d) Taking Corrective Actions:
After actual performance has been measured compared with established performance
standards, the next step in the controlling process is to take corrective action, if necessary.
Corrective action is managerial activity aimed at bringing organizational performance up to the
level of performance standards. In other words, corrective action focuses on correcting
organizational mistakes that hinder organizational performance. Before taking any corrective
action, however, managers should make sure that the standards they are using were properly
established and that their measurements of organizational performance are valid and reliable.
At first glance, it seems a fairly simple proposition that managers should take corrective action
to eliminate problems - the factors within an organization that are barriers to organizational goal
attainment. In practice, however, it is often difficult to pinpoint the problem causing some
undesirable organizational effect.
BUDGETARY CONTROL
Salient features:
a. Objectives: Determining the objectives to be achieved, over the budget period, and the
policy(ies) that might be adopted for the achievement of these ends.
b. Activities: Determining the variety of activities that should be undertaken for achievement of
the objectives.
c. Plans: Drawing up a plan or a scheme of operation in respect of each class of activity, in
physical a well as monetary terms for the full budget period and its parts.
d. Performance Evaluation: Laying out a system of comparison of actual performance by each
person section or department with the relevant budget and determination of causes for the
discrepancies, if any.
e. Control Action: Ensuring that when the plans are not achieved, corrective actions are taken;
and when corrective actions are not possible, ensuring that the plans are revised and objective
achieved
CLASSIFICATION OF BUDGETS
Budgets may be classified on the following bases –
BASED ON CAPACITY:
Fixed Budget
It is a Budget designed to remain unchanged irrespective of the level of activity
actually attained. It operates on one level of activity and less than one set of
conditions. It assumes that there will be no change in the prevailing conditions, which
is unrealistic.
Flexible Budget
It is a Budget, which by recognizing the difference between fixed, semi variable and
variable costs is designed to change in relation to level of activity attained. It consists
of various budgets for different levels of activity
BASED ON COVERAGE:
Functional Budget
Budgets, which relate to the individual functions in an organization, are known as
Functional Budgets, e.g. purchase Budget, Sales Budget, Production Budget, plant
Utilization Budget and Cash Budget.
Master Budget
It is a consolidated summary of the various functional budgets. It serves as the basis
upon which budgeted Profit & Loss Account and forecasted Balance Sheet are built
up.
v) Variable Budget:
The variable budget is based on an analysis of expense items to determine how
individual costs should vary with volume of output.
Some costs do not vary with volume, particularly in so short a period as 1 month, 6
months, or a year. Among these are depreciation, property taxes and insurance, maintenance of
plant and equipment, and costs of keeping a minimum staff of supervisory and other key
personnel. Costs that vary with volume of output range from those that are completely variable
to those that are only slightly variable.
The task of variable budgeting involves selecting some unit of measure that reflects
volume; inspecting the various categories of costs (usually by reference to the chart of
accounts); and, by statistical studies, methods of engineering analyses, and other means,
determining how these costs should vary with volume of output.
Advantages
There are a number of advantages of budgetary control:
Compels management to think about the future, which is probably the most important
feature of a budgetary planning and control system. Forces management to look ahead,
to set out detailed plans for achieving the targets for each department, operation and
(ideally) each manager, to anticipate and give the organization purpose and direction.
Promotes coordination and communication.
Clearly defines areas of responsibility. Requires managers of budget centre’s to be
made responsible for the achievement of budget targets for the operations under their
personal control.
Provides a basis for performance appraisal (variance analysis). A budget is basically a
yardstick against which actual performance is measured and assessed. Control is
provided by comparisons of actual results against budget plan. Departures from budget
can then be investigated and the reasons for the differences can be divided into
controllable and non-controllable factors.
Enables remedial action to be taken as variances emerge.
Motivates employees by participating in the setting of budgets.
Improves the allocation of scarce resources.
Economises management time by using the management by exception principle.
Problems in budgeting
Whilst budgets may be an essential part of any marketing activity they do have a number
of disadvantages, particularly in perception terms.
Budgets can be seen as pressure devices imposed by management, thus resulting in:
bad labour relations
inaccurate record-keeping.
Departmental conflict arises due to:
disputes over resource allocation
departments blaming each other if targets are not attained.
It is difficult to reconcile personal/individual and corporate goals.
Waste may arise as managers adopt the view, "we had better spend it or we will lose it".
This is often coupled with "empire building" in order to enhance the prestige of a
department.
Responsibility versus controlling, i.e. some costs are under the influence of more than
one person, e.g. power costs.
Managers may overestimate costs so that they will not be blamed in the future should
they overspend.
i) Statistical data:
Statistical analyses of innumerable aspects of a business operation and the clear presentation
of statistical data, whether of a historical or forecast nature are, of course, important to control.
Some managers can readily interpret tabular statistical data, but most managers prefer
presentation of the data on charts.
v) PERT:
The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a
is a method to analyze the involved tasks in completing a given project, especially the time
needed to complete each task, and identifying the minimum time needed to complete the total
project.
PRODUCTIVITY
Productivity refers to the ratio between the output from production processes to its input.
Productivity may be conceived of as a measure of the technical or engineering efficiency of
production. As such quantitative measures of input, and sometimes output, are emphasized.
This is a ratio of the amount of product to the resources consumed (usually effort). Product may
be measured in lines of code, classes, screens, or any other unit of product. Typically, effort is
measured in terms of staff hours, days, or months. The physical size also may be used to
estimate software performance factors (e.g., memory utilization as a function of lines of code).
b) Functional Productivity
This is a ratio of the amount of the functionality delivered to the resources consumed
(usually effort). Functionality may be measured in terms of use cases, requirements, features, or
function points (as appropriate to the nature of the software and the development method).
Typically, effort is measured in terms of staff hours, days, or months. Traditional measures of
Function Points work best with information processing systems. The effort involved in
embedded and scientific software is likely to be underestimated with these measures, although
several variations of Function Points have been developed that attempt to deal with this issue.
c) Economic Productivity
This is a ratio of the value of the product produced to the cost of the resources used to
produce it. Economic productivity helps to evaluate the economic efficiency of an organization.
Economic productivity usually is not used to predict project cost because the outcome can be
affected by many factors outside the control of the project, such as sales volume, inflation,
interest rates, and substitutions in resources or materials, as well as all the other factors that
affect physical and functional measures of productivity. However, understanding economic
productivity is essential to making good decisions about outsourcing and subcontracting. The
basic calculation of economic productivity is as follows:
COST CONTROL
Cost control is the measure taken by management to assure that the cost objectives set
down in the planning stage are attained and to assure that all segments of the organization
function in a manner consistent with its policies.
PURCHASE CONTROL
Purchase control is an element of material control. Material procurement is known as the
purchase function. The functional responsibility of purchasing is that of the purchase manager
or the purchaser. Purchasing is an important function of materials management because in
purchase of materials, a substantial portion of the company's finance is committed which affects
cash flow position of the company. Success of a business is to a large extent influenced by the
efficiency of its purchase organization. The advantages derived from a good and adequate
system of the purchase control are as follows:
In short, the basic objective of the effective purchase control is to ensure continuity of supply of
requisite quantity of material, to avoid held up of production and loss in production and at the
same time reduces the ultimate cost of the finished products.
MAINTENANCE CONTROL
Maintenance department has to excercise effective cost control, to carry out the
maintenance functions in a pre-specified budget, which is possible only through the following
measures:
First line supervisors must be apprised of the cost information of the various materials so that
the objective of the management can be met without extra expenditure on maintenance
functions
A monthly review of the budget provisions and expenditures actually incurred in respect of each
center/shop will provide guidlines to the departmental head to exercise better cost control.
The total expenditure to be incurred can be uniformly spread over the year for better budgetary
control. however, the same may not be true in all cases particularly where overhauling of
equipment has to be carried out due to unforseen breakdowns. some budgetary provisions must
be set aside, to meet out unforeseen exigencies.
The controllable elements of cost such as manpower cost and material cost can be discussed
with the concerned personnel, which may help in reducing the total cost of maintenance.
Emphasis should be given to reduce the overhead expenditures, as other expenditures cannot
be compromised.
It is observed through studies that the manpower cost is normally fixed, but the same way
increase due to overtime cost. however, the material cost, which is the prime factor in
maintenance cost, can be reduced by timely inspections designed, to detect failures. If the
inspection is carried out as per schedule, the total failure of parts may be avoided, which
otherwise would increase the maintenance cost. the proper handling of the equipment by the
operators also reduces the frequency of repair and material requirements. Operators, who
check their equipment regularly and use it within the operating limits, can help avoid many
unwanted repairs. In the same way a good record of equipment failures/ maintenance would
indicate the nature of failures, which can then be corrected even permanently.
QUALITY CONTROL
Quality control refers to the technical process that gathers, examines, analyze & report
the progress of the project & conformance with the performance requirements
clear objectives
activities to be delivered
quality standards
desired outcomes
staffing and resource requirements
implementation timetables
a process for monitoring progress.
2 & 16 MARKS QUESTIONS WITH ANSWERS
PRINCIPLES OF MANAGEMENT
Part – A (2 Marks)
UNIT -I
1. What is Management?
Management is the process of planning, Organizing, Directing, Staffing and
controlling the various activities of the people to achieve the objectives of an
organization.
2. Define Management.
“Management is the process of designing and maintaining of an environment in
which individuals working together in groups efficiently accomplish selected aims”.
7. What is authority?
It is the power given to a person to get work from his subordinates.
8. What is responsibility?
It is the amount of work from a man by his superior.
Define “objectives”
The term “objective” or “goals” are often used interchangeably. Objective are the end
results towards which the activities of attain its objectives.
27. What are the factors to be considered while formulating strategies? Mission
and objectives of an organization. Values, aspiration and prejudices of top
level management. Opportunities and threats of the external environment, Strength and
weakness of the firm in various aspects such as funds, organization structure, human
talent, technology etc.
Define “policies”
Policies are general statement or understanding which provide guidance in
decision making to various managers.
What is MBO?
MBO is a process whereby the superior and the superior and the subordinate manager of
an enterprise jointly identify its common goals, define each individuals major areas of
responsibility in terms of result expected of him , and use these measures as guides for
operating the unit and the contribution of each of its members is assessed.
36. Write down any four factors which leads to fail of strategic planning.
Managers are inadequately prepare for strategic planning. The information for
preparing the plans is insufficient for planning for action. The goals of the Organization
are too vague. The business units are not clearly identified.
Define : Recruitment
B. Flippo define recruitment as “The process of searching for prospective employees
and stimulating to apply for jobs in the organization”.
What is selection?
Selection is the process of finding out the most suitable candidate to the job out of the
candidates attracted.
Define creativity.
Creativity is defined as the ability to produce new and useful ideas through the
components in novel and non obvious ways. Creativity exists throughout the populations,
largely independent of age, sex and education.
D – Define problem
O – Open mind and apply creative techniques
I _ Identify best solution
T _ Transform
UNIT - V
83. Define control?
According to Knootz “Controlling to the measurement and correction of performance
in order to make sure that enterprise objectives and the plans devised to attain them are
accomplished”.
What are the Inter –relationship between planning and end with control?
The management process of adjusting future action on the basis of information about
past performance. Control helps in achieving them.
Taylorism is a variation on the theme of efficiency; it is a late 19th and early 20th
century instance of the larger recurring theme in human life of increasing efficiency,
decreasing waste, and using empirical methods to decide what matters, rather than
uncritically accepting pre-existing ideas of what matters. Thus it is a chapter in the larger
narrative that also includes, for example, the folk wisdom of thrift, time and motion
study, Fordism, and lean manufacturing. It overlapped considerably with the Efficiency
Movement, which was the broader cultural echo of scientific management's impact on
business managers specifically.
General approach
Contributions
Elements
Criticisms
Did not appreciate the social context of work and higher needs of workers.
Did not acknowledge variance among individuals.
Tended to regard workers as uninformed and ignored their ideas
and suggestions.
The 9 Levels
Fayol was representing an organisation like a living body (« corps social », ie.
"social body") with main organs hierarchically structured as follow:
Shareholders,
Board of Administration,
General Direction and its General staff (advisors),
Regional/local Directions,
Main Engineers,
Services Managers,
Workshops Managers,
Foremen,
Workers.
It is also mandatory for foreign investors or foreign shareholders, both individuals and
corporate shareholders, to seek Government Approvals for Investing in India In some special
cases Foreign Investment Promotion Board, FIPB Approval for Foreign Investment in India
is required. In other cases Reserve Bank of India, RBI Approvals for Foreign Investment in
India is required. The sectors where RBI Approval for foreign investors is available under
automatic route can be found at FDI in India Sector wise Guide.
There are various steps required to establish a business in India, before and after
incorporation, as mentioned hereinafter. See also the Procedure for Formation of Company
in India. A Company in India can have foreign directors provided some conditions are
fulfilled. The directors of an Indian company, both Indian and foreigner directors, are
required to obtain Director Identification Number - DIN and Digital Signature Certificate -
DSC. There are some restrictions regarding issuing sweat equity for a company incorporated
in India.Also see Annual Corporate Filings in India for corporate maintenance requirements
in India.
Sole proprietorship
Partnership firm
Joint stock companies
Co-operative societies
UNIT - II
Give an account of various steps involved in planning?
Perception of opportunities
Establishing objectives
Planning premises
Identification of alternatives
Evaluation of alternatives
Choice of alternatives
Formulation of supporting plans
Establishing sequence of activities
Steps involved in Planning
Identification of Opportunities
Establishment of Objectives
Identification of Alternatives
Evaluation of Alternatives
Selecting an Alternative
Processof MBO
MBO is a system for achieving organizational objectives, enhancement of employee
commitment and participation.
Setting of Organizational Purpose and Objectives
Key Result Areas
Setting Subordinate Goals
Matching Resources with Objectives
Apprisal
Recycling
Features and Advantages
Unique features and advantage of the MBO process
The principle behind Management by Objectives (MBO) is to create empowered
employees who have clarity of the roles and responsibilities expected from them, understand
their objectives to be achieved and thus help in the achievement of organizational as well as
personal goals.
Some of the important features and advantages of MBO are:
Clarity of goals
Clarity in Organizational actions
Personnel satisfaction
Basis of Organizational Change
Motivation – Involving employees in the whole process of goal setting
and increasing employee empowerment increases employee job
satisfaction and commitment.
Better communication and Coordination – Frequent reviews and
interactions between superiors and subordinates helps to maintain
harmonious relationships within the enterprise and also solve many
problems faced during the period.
well to be supposed if yet this management by objectives has certain advantages as
well as disadvantages, it is a virtual technique for effective management and it takes around
5 years to get mbo yielding results.
Practice
Objectives need quantifying and monitoring. Reliable management information
systems are needed to establish relevant objectives and monitor their "reach ratio" in an
objective way. Pay incentives (bonuses) are often linked to results in reaching the objectives
Limitations
There are several limitations to the assumptive base underlying the impact of
managing by objectives, including:
Time and Cost
Fuilure to teach MBO
Problems in Objecive Setting
Emphasis on Short term Goals
Inlexibility
It over-emphasizes the setting of goals over the working of a plan as a driver of outcomes.
It underemphasizes the importance of the environment or context in which the goals are set. That
context includes everything from the availability and quality of resources, to relative buy-
in by leadership and stake-holders. As an example of the influence of management buy-
in as a contextual influencer, in a 1991 comprehensive review of thirty years of research
on the impact of Management by Objectives, Robert Rodgers and John Hunter concluded
that companies whose CEOs demonstrated high commitment to MBO showed, on
average, a 56% gain in productivity. Companies with CEOs who showed low
commitment only saw a 6% gain in productivity.
Companies evaluated their employees by comparing them with the "ideal" employee. Trait
appraisal only looks at what employees should be, not at what they should do.
It did not address the importance of successfully responding to obstacles and constraints as
essential to reaching a goal. The model didn’t adequately cope with the obstacles of:
Defects in resources, planning and methodology,
The increasing burden of managing the information organization challenge,
The impact of a rapidly changing environment, which could alter the landscape enough to
make yesterday’s goals and action plans irrelevant to the present.
UNIT – III
Organizations are basically clasified on the basis of relationships. There are two types
of organizations formed on the basis of relationships in an organization
Formal Organization - This is one which refers to a structure of well defined
jobs each bearing a measure of authority and responsibility. It is a conscious
determination by which people accomplish goals by adhering to the norms
laid down by the structure. This kind of organization is an arbitrary set up in
which each person is responsible for his performance. Formal organization
has a formal set up to achieve pre- determined goals.
Informal Organization - It refers to a network of personal and social
relationships which spontaneously originates within the formal set up.
Informal organizations develop relationships which are built on likes, dislikes,
feelings and emotions. Therefore, the network of social groups based on
friendships can be called as informal organizations. There is no conscious
effort made to have informal organization. It emerges from the formal
organization and it is not based on any rules and regulations as in case of
formal organization.
Relationship between formal and informal organizations
For a concerns working both formal and informal organization are important. Formal
organization originates from the set organizational structure and informal organization
originates from formal organization. For an efficient organization, both formal and informal
organizations are required. They are the two phase of a same concern. Formal organization
can work independently. But informal organization depends totally upon the formal
organization. Formal and informal organization helps in bringing efficient working
organization and smoothness in a concern. Within the formal organization, the members
undertake the assigned duties in co- operation with each other. They interact and
communicate amongst themselves. Therefore, both formal and informal organizations are
important. When several people work together for achievement of organizational goals,
social tie ups tends to built and therefore informal organization helps to secure co-operation
by which goals can be achieved smooth. Therefore, we can say that informal organization
emerges from formal organization.
Formal Organiation
The formal orgainzation describes the job of each individiual and relationship
between organiational members
Benefits of Formal Organization
Formal Organiation helps in implementing the objectives and policies
Effective Control can be made in these types of formal Organization
Formal Organiation helps to achieve individual goals in the frame work of
organizational goals
It is Larger in size
Informal Organization
There is no definite organization structure for informal orgainzation.
Ininformal organization individula and group goals are more important than
organization goals.
Functions of Informal Organization
It helps to preserve the integrity of the groups as a whole
It acts as an efective communication channel
It provides job satisfaction
It controls the social behaviour of the employees
Benefits of Informal Organization
Informal organizations encourage co-operation
Reduces the work load of managers
Informal Organizations provide job security and stability to an employee.
Disadvantages of Informal Organization
Informal Organization creates conflict between employees and employers
What are the needs for formal organization structure?
ȀȀȀȀȀȀ Facilitating management action
ȀȀȀȀȀȀ Encouraging efficiency
ȀȀȀȀȀȀ Communication
ȀȀȀȀȀȀ Optimum use of organizational resources
ȀȀȀȀȀȀ Stimulating creativity
ȀȀȀȀȀȀ Job satisfaction
3. Departmentation by Customer
In customer departmentaion, separate departments or divisions are made to
serve the needs of particular customers. Customer departmentaion is employed in
large ad complex orgaization.
Advantages
1.Customer departmention aims to satisfy the needs of the customers in
abetter and effective way
2.Managers can become experts in customers area
3.This enables to identify the key customers
4.It enables to understand customers needs.
Disadvantages
It is very difficult to achieve co-ordination across departments
It requires experts to solve customers problems
Grouping of customers into department is a difficult problem
Departmentation by Product
Product departmentation is suitable for large organizations of products or
product lines
5. Departmentation by Process
Activities are grouped according to the process involved. This suitable for
manufacturing enterprises.
For eg: the processes are drilling process, paintin process, etc..
6. Departmentation by Time
Grouping of activites on time basis is more common in many organization. In
organization there may be first shift, second shift and night shift. The tasks performed
by employees in each shift are similar. This type of departmentaion is generally
found in public utility services such as Railways, Hospitals, Call centers and in
Manufacturing Orgainzations.
7. Departmentation by Number
Grouping of activities on the basis of number prescribed for each unit is
known as departmention by numbers
Eg: In armysoldiers are grouped in Battalion, regiments, brigades, so on…
8. Matrix Departmention
A hybrid structure in which two or more forms of departmentaion are used
together is known as matrix departmentaion. In matrix organization there are dual
lines of authority. The matrix departmentaion is applicable in cinstructuion of
bridges, in aerospace projects, etc..
Martix Organiation is otherwuise known as Project Organization
9. Strategic Business Unit
It is a Division of an organization that provides a distinct product or service and
has its own mission and goals
Representations
Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with
the largest and lowest levels of needs at the bottom, and the need for self-
actualization at the top, also the needs for people.
Deficiency needs
The lower four layers of the pyramid contain what Maslow called "deficiency
needs" or "d-needs": physiological (including sexuality), security of position,
friendship and love, and esteem. With the exception of the lowest (physiological)
needs, if these "deficiency needs" are not met, the body gives no physical indication
but the individual feels anxious and tense.
Physiological needs
For the most part, physiological needs are obvious—they are the literal
requirements for human survival. If these requirements are not met (with the
exception of clothing and shelter), the human body simply cannot continue to
function.
Physiological needs include:
Breathing
Food
Sexual activity
Homeostasis
Air, water, and food are metabolic requirements for survival in all animals,
including humans. The intensity of the human sexual instinct is shaped more by
sexual competition than maintaining a birth rate adequate to survival of the species.
The urge to have sex is so powerful that it can drain psychic energy away
from other necessary goals. Therefore every culture has to invest great efforts in
rechanneling and restraining it, and many complex social institutions exist only in
order to regulate this urge. The saying that "love makes the world go round" is a
polite reference to the fact that most of our deeds are impelled, either directly or
indirectly, by sexual needs.
—Mihaly Csikszentmihalyi, Flow: The Psychology of Optimal
Experience Safety needs
With their physical needs relatively satisfied, the individual's safety needs
take precedence and dominate behavior. These needs have to do with people's
yearning for a predictable, orderly world in which injustice and inconsistency are
under control, the familiar frequent and the unfamiliar rare. In the world of work,
these safety needs manifest themselves in such things as a preference for job security,
grievance procedures for protecting the individual from unilateral authority, savings
accounts, insurance policies, and the like.
For most of human history many individuals have found their safety needs
unmet, but as of 2009 "First World" societies provide most with their satisfaction,
although the poor—both those who are poor as a class and those who are temporarily
poor (university students would be an example)—must often still address these needs.
Safety and Security needs include:
Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts
Love and Belonging
After physiological and safety needs are fulfilled, the third layer of human
needs are social and involve feelings of belongingness. This aspect of Maslow's
hierarchy involves emotionally-based relationships in general, such as:
Friendship
Intimacy
Family
Humans need to feel a sense of belonging and acceptance, whether it comes
from a large social group, such as clubs, office culture, religious groups, professional
organizations, sports teams, gangs ("Safety in numbers"), or small social connections
(family members, intimate partners, mentors, close colleagues, confidants). They
need to love and be loved (sexually and non-sexually) by others. In the absence of
these elements, many people become suptible to loneliness, social anxiety, and
clinical depression. This need for belonging can often overcome the physiological
and security needs, depending on the strength of the peer pressure; an anorexic, for
example, may ignore the need to eat and the security of health for a feeling of control
and belonging.
Esteem
All humans have a need to be respected and to have self-esteem and self-
respect. Also known as the belonging need, esteem presents the normal human desire
to be accepted and valued by others. People need to engage themselves to gain
recognition and have an activity or activities that give the person a sense of
contribution, to feel accepted and self-valued, be it in a profession or hobby.
Imbalances at this level can result in low self-esteem or an inferiority complex.
People with low self-esteem need respect from others. They may seek fame or glory,
which again depends on others. Note, however, that many people with low self-
esteem will not be able to improve their view of themselves simply by receiving
fame, respect, and glory externally, but must first accept themselves internally.
Psychological imbalances such as depression can also prevent one from obtaining
self-esteem on both levels.
Most people have a need for a stable self-respect and self-esteem. Maslow
noted two versions of esteem needs, a lower one and a higher one. The lower one is
the need for the respect of others, the need for status, recognition, fame, prestige, and
attention. The higher one is the need for self-respect, the need for strength,
competence, mastery, self-confidence, independence and freedom. The latter one
ranks higher because it rests more on inner competence won through experience.
Deprivation of these needs can lead to an inferiority complex, weakness and
helplessness.
Maslow stresses the dangers associated with self-esteem based on fame and
outer recognition instead of inner competence. He sees healthy self-respect as based
on earned respect.
Self-actualization
“What a man can be, he must be”. This forms the basis of the perceived need
for self-actualization. This level of need pertains to what a person's full potential is
and realizing that potential. Maslow describes this desire as the desire to become
more and more what one is, to become everything that one is capable of becoming..
This is a broad definition of the need for self-actualization, but when applied to
individuals the need is specific. For example one individual may have the strong
desire to become an ideal parent, in another it may be expressed athletically, and in
another it may be expressed in painting, pictures, or inventions. As mentioned before,
in order to reach a clear understanding of this level of need one must first not only
achieve the previous needs, physiological, safety, love, and esteem, but master these
needs. Below are Maslow’s descriptions of a self-actualized person’s different needs
and personality traits.
a.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-
existant 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 / nario.
The hygiene factors symbolized the physiological needs which the individuals
wanted and expected to be fulfilled. Hygiene factors include:
Pay- The pay or salary structure should be appropriate and reasonable. It
must be equal and competitive to those in the same industry in the same domain.
Company Policies and administrative policies- The company policies
should not be too rigid. They should be fair and clear. It should include flexible
working hours, dress code, breaks, vacation, etc.
Fringe benefits- The employees should be offered health care plans
(mediclaim), benefits for the family members, employee help programmes, etc.
Physical Working conditions- The working conditions should be safe,
clean and hygienic. The work equipments should be updated and well-maintained.
Status- The employees’ status within the organization should be familiar
and retained.
Interpersonal relations-The relationship of the employees with his peers,
superiors and subordinates should be appropriate and acceptable. There should be no
conflict or humiliation element present.
Job Security- The organization must provide job security to the
employees.
Sender
Message
Encoding
Channel
Receiver
Decoding
Feed back
The Communication Process
Transmission
Message Encoding Medium Decoding
Feedback Phase
What are the barriers of effective communication? Explain them.
Communication noise
1. Semantic Barriers
Symbols with different meanings
Badly expressed message
Faulty translations
Unclarified assumptions
Specialist language
Emotional or Psychological barriers
Organizational Barriers
Personal Barriers
Over time, technology has progressed and has created new forms of and ideas about
communication. The newer advances include media and communications psychology.
Media psychology is an emerging field of study. These technological advances
revolutionized the processes of communication. Researchers have divided how
communication was transformed into three revolutionary stages:
Email
Mobile Phones
Internet
UNIT - V
22. Explain the steps in the process of controlling.
Management control can be defined as a systematic effort by business management to
compare performance to predetermined standards, plans, or objectives in order to
determine whether performance is in line with these standards and presumably in order to
take any remedial action required to see that human and other corporate resources are
being used in the most effective and efficient way possible in achieving corporate
objectives.
Also control can be defined as "that function of the system that adjusts operations as
needed to achieve the plan, or to maintain variations from system objectives within
allowable limits". The control subsystem functions in close harmony with the operating
system. The degree to which they interact depends on the nature of the operating system
and its objectives. Stability concerns a system's ability to maintain a pattern of output
without wide fluctuations. Rapidity of response pertains to the speed with which a system
can correct variations and return to expected output.
Characteristics of Control
Control is a continuous process
Control is a management process
Control is embedded in each level of organizational hierarchy
Control is forward looking
Control is closely linked with planning
Control is a tool for achieving organizational activities
Actual performance
Measurement of performance
Comparison of actual and standard performance
Identification of deviation
Analysis of caused of deviations
Corrective action plan
Implementation of corrections
Desired performance
A
Absenteeism Any failure of an employee to report for or to remain at work as scheduled, regardless of
reason
Absolute Rating Systems Rating formats that evaluate each employee in terms of performance standards, without
reference to other employees
Acceptance Sample An operation management monitoring tool in which a sample of materials or products is
measured against a benchmark
Action Learning A process in which participants learn through experience and application
A training techniques by which management trainees are allowed to work full time
analyzing and solving problems in other departments
Acting Listening Listening in which five things are done well: taking time to listen, communicating verbally
and nonverbally, not interrupting or arguing, watching for verbal and nonverbal cues, and
summarizing what was said and what was agreed to
Action Programs Programs, including the activities of recruitment, selection, performance appraisal, training,
and transfer that help organization adapt to change in their environment
Adaptability screening A process that aims to assess the assignee’s (and spouse’s) probable success in handling a
foreign transfer
ADEA Age Discrimination in Employment Act of 1967 (ADEA) The act prohibiting arbitrary age
discrimination and specifically protecting individuals over 40 year old
Administration the systematized ordering of affairs and the calculated use of resources, aimed at making
those things happen which we want to happen and simultaneously preventing
developments that fail to square with our industries, generally the word administer means
to serve to manage the affairs of the people
Administrative Control while the administration is supposed toenforcement the government polices ad implement
its programmes for the welfare and development of the state subjects a need arise to
monitor and keep a check on the public administration
Administrative The management approach that examines an organization from the perspective of the
Management managers and executives responsible for coordinating the activities of diverse groups and
units across the entire organization
Adverse Impact The overall impact of employer practices that result in significantly higher percentage of
members of minorities and other protected groups being rejected for employment,
placement, or promotion
Alternative staffing The use of non-traditional recruitment sources
Annual Bonus Plans that are designed to motivate short-term performance of managers and are tied to
company profitability
Application Form The form that provides information on education, prior work, record, and skills
Applicant Group Individuals who are eligible for and interested in selection or promotion
Arbitrator A third party to a negotiation who has the authority to dictate an agreement
Appraisal interview An interview in which the supervisor and subordinate review the appraisal and make plans
to remedy deficiencies and reinforce strengths
Apprenticeship Training A structure process by which people become skilled workers through a combination of class
room instructions and on-the job training
Arbitration The most definitive type of third-party intervention, in which the arbitrator usually has the
power to determine and dictate the settlement terms
At risk variable pay plans Plans that put some portion of the employee’s weekly pay a risk, subject to the firm’s
meeting its financial goals
Assessment centre A process that evaluates a candidates potential for management on the basis of multiple
Method assessment techniques, standardized methods of making inference from such techniques,
and pooled judgements from multiple assessors
Attaché most junior diplomatic ranks, not to be confused with military attaché, or special attaché
B
Baby-boom generation People born between 1946 and 1964, currently 55 percent of the workforce, who believe
that the
Bar chart A chart that compares different groups of data to each other through the use of bars that
represent each group. Bar charts can be simple, in which each group of data consists of a
single type of data, or grouped or stacked, in which the groups of data are broken down
into internal categories
Bargaining unit The group of employees the union will be authorized to represent
BARS Behaviorally Anchored Rating Scale (BARS) An appraisal method that aims at combing the
benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale
with specific narrative examples of good and poor performance
Base Compensation The fixed amount of money the employee expects to receive in a pay Check weekly or
monthly or as an hourly wage
Behaviour Modeling A training techniques in which trainees are first shown good management techniques in a
film are asked to play roles in a simulated situation, and are then given feedback and praise
by their supervisor
Behavioural Interview A series of job-related questions that focus on how they reacted to actual situations in the
past
Benchmarking A technique that involves comparing one's own processes to excellent examples of Similar
Processes in other organizations or departments. Through benchmarking, rapid learning can
occur, and processes can undergo dramatic improvements
Benchmarking A strategic management approach that assess capabilities by comparing the firms, activities
or functions with those of other firms
Benchmark Jobs Jobs that are characterized by stable tasks and stable job specifications also known as key
jobs
A job that is used to anchor the employer’s pay scale and around which other jobs are
arranged in order of relatives worth
Benefits A compensation component that accounts for almost 40 percent of the typical total
compensation package and includes health insurance, pension plans, unemployment
insurance, vacations, sick leave and the like
Bias The tendency to allow individual differences such as age, race, and sex to affect the
appraisal ratings employee receive
BFOQ Bond Fide Occupational Qualification (BFOQ) Requirement that an employee be of a certain
religion, sex, or national origin where that is reasonably necessary to the organization’s
normal operation. Specified by the 1964 Civil Right Act
Bottom-Up-Change organizational change that originates with employees
Boycott The combined refusal by employees and other interested parties to buy or use the
employer’s product
Brand A name, term, design, symbol, or any other feature that identifies one seller's good or
service as distinct from those of other sellers. The legal term for brand is trademark. A
brand may identify one item, a family of items, or all items of that seller. If used for the firm
as a whole, the preferred term is trade name. See also: advertised brand, brand extension,
brand generic, brand image, brand name, brand personality, branded merchandise,
branding, individual, branding, line family, competitive brands, distributor\'s brand, family
brand,
Fighting brand, flanker
Brand Manager A management role that coordinates the on-going activities of marketing branded
consumer products
Broad Banding Consolidating salary grades and ranges into just a few wide levels or bands each of which
contains a relatively wide range of jobs and salary levels.
Brainstorming A technique to generate creative ideas for solving problems by reducing critical and
judgement reactions to ideas from group members. (B) A group method of problem solving,
used in product concept generation. It is sometimes thought to be an open, free-wheeling
idea session, but more correctly is a specific procedure developed by Alex Osborn, with
precise rules of session conduct
Break Even Value The length of time an observed training effect would need to be maintained in order to
recover the cost of the training program
Breakthrough thinking A management technique which emphasizes the development of new, radical Approaches
to traditional constraints, as opposed to incremental or minor changes in thought that build
on the original approach
Bureaucracy A structure with highly routine operating tasks achieved through specialization very
formalized, rules and regulations task, that are grouped into functional departments
centralized authority narrow span of control and decision making that flows to chain of
command
Bureaucratic Management The management approach that examines the entire organizationas a rational entity, using
impersonal rules and procedures for decision making
Bumping/Layoff Detailed procedures that determine who will be laid off if no work is available; generally
Procedures allow employees to use their seniority to remain on the job.
Burnout The total depletion of physical and mental resources caused by excessive striving to reach
an unrealistic work-related goal
Business Specifies the present and/or prospective scope of a strategic business unit's activities in
terms of the boundaries of the arena in which the business elects to compete. The
definition also serves to direct attention to the true function of the business-that is, the way
that the business meets the needs of its target customers. A complete definition requires
choices about the business position a long four dimensions: (1) customer functions-
addressing the benefits being provided; (2) customer segments-specifying the customer
groups seeking similar benefits and sharing characteristics that are strategically relevant; (3)
technology--specifying the alternative ways in which a particular function can be
performed; and (4) vertical business system--specifying where the business chooses to
participate in the sequence of stages in the vertical business system (or value-added
system).
Business Game A situation test in which candidates play themselves, not an assigned role, and are
evaluated within a group
Business Plan The business’s proposal that maps out its business strategy for entering markets and that
explains the business to potential investors
Business Process Redesign A management method which stresses the fundamental rethinking of processes,
or Reengineering questioning all assumptions, in an effort to streamline organizations and to focus on adding
value in core processes
C
Capacity The firm’s ability to produce the product during a given period
Career A sequence of positions occupied by a person during the course of a lifetime: also known as
one’s Objectives career
The occupational positions a person has had over many years
Career Anchors Pivots around which a person’s career swings; require self-awareness of talents and
abilities, motives and needs, and attitudes and values. A concern or value that you will not
give up if a {career} choice has to be made
Career Cycle The various stages a person’s career goes through.
Career Development The lifelong series of activities that contribute to a person’s career exploration,
establishment, success, and fulfilment
Career Management The process for enabling employees to better understand and develop their career skills
and interests most effectively
Career Paths Logical and possible sequences of positions that could be held in an organization, based on
an analysis of what people actually do in the organization
Career Planning A support mechanism to help employees plan out their long-term goals
The deliberate process through which a person becomes aware of personal career related
attributes and the lifelong series of steps that contribute to hisor her career fulfillments
Case study method a development method in which the manager is presented with a written description of an
organizational problem to diagnose and solve
Centralization in any organization concentration of authority and power in the hands of top-management
is referred to as centralization. (b) The location of decision authority at the top of the
organization hierarch. (C) This term describes the concentration of government and political
authority in the capital city and at the national level, as opposed to the sharing of powers
and responsibilities between national, local authorities
Chain of Command The superior –subordinate authority relationship that starts at the top of the organization
hierarchy and extends to the lowest levels. (b) The unbroken line of authority that extends
from the top of the organization to the lowest echelon and clarifies who report to whom
Change agents People who act as catalysts and assume responsibility for management change
Charisma Charisma was used by Weber to describe one of three principal types of political authority.
To Weber charisma was a personal quality of attraction and psychological power, capable of
inspiring deep political loyalty in large numbers of people
Charismatic Leader a term from Max Weber which is used to describe a politician To whom more than natural
qualities of leadership are attributed by his followers. Weber identifies charisma as one of
three main justifications of political authority. The other bases on which people accept the
legitimacy of authority over them has been legality and tradition
Charismatic Leader A leader who can engender a strong emotional attachment from followers; charisma is
associated with admiration, trust and a willingness to believe what the leadersay
Charter Another name for a local constitution; the organic law of local government. It is either
drawn by the legislature, or under the authority of home rule
Civil Law The legal system that relies on a comprehensive set of rules that form part of ahighly
structured code; enforcement and interpretation of laws are made in reference to this code
Civil Service It comprises all the persons employed by government in a civil as contrasted with a military
capacity. It is synonymous with bureaucracy
Civil Service, Recruitment The first country to develop a science system of recruitment for civil servants was china. In
modern times Prussia was the first introduce a system of recruitment for civil servants
gradually replacing the patronage system prevalent in USA. The spoil system was replaced
by the merit, principles by civil service act of 1853
Communication A process that involves the transmission of meaningful information forms one party to
another through the use of shared symbols
Communication Channel Influences the quantity and quality of information that is conveyed to the receiver.
Channels of communication include face to- face conversation group meetings, memos,
policy manuals email, voice mail
Common Law The legal system in which precedents based on past court decisions play a key role in
interpreting the meaning and intent of legal statutes
Conciliator A trusted third party who provides an informal communication link between the negotiator
and opponent
Conceptual Skills The mental ability to analyze and diagnose complex situation
Confrontation Strategy One mean a firm may use to deal with a stakeholder group whose goals are perceived to
threaten company performance; the firm may use the courts, engage n public relations, or
lobby against legislation
Contingency theory The management theory that there is no “best way” to manage and organize an
organization because situational characteristic, called contingencies, differ also, the view
that no HR strategy is good or bad in and of itself but rather depends on the situation or
context in which it used
Controlling The management function that measures performance, compares it to objectives,
implements necessary changes, and monitors progress. (b) Monitoring activities to ensure
they are being accomplished
Control Chart graph of data used to determine when a result should be explored as aspecial cause.
Developed by Dr. Shewart in the 1920's while he worked at Bell Labs. A control chart
has lower control limit and upper control limit and a mean line. Dr. Stewart developed
the control chart to aid in effective exploration and improvement. Often the regular
variation (common cause variation) of a process is taken as something special to be
examined which wastes time. In addition, if action is then taken based on this
exploration, the effects of tampering often exacerbate problems. Using control charts
the only time special because analysis is used is when the result was above the upper
control limit or below the lower control limit. While this is generally true there are
other practices to explore when the data shows odd traits (such as 7 points on one side
of the mean).
Types of Control Charts:
Cooperative behavior Team behavior that is manifested in member’s willingness to share nformation and help
others
Cooperative strategies Establishing partnership or strategic alliances with other firms
Coordination Linking activities so that diverse departments or divisions work in harmony and learn from
each other
Core beliefs A firm’s principles that are widely shared, that operate unconsciously, and that are
considered non negotiable
Core Competency Those things that define what is special about an organization, what sets it apart from other
organizations, Competencies are those things the company or organization does well. Core
competencies are those things that are fundamental to the organization. Without those
core competencies the organization would not be the same organization. Core
competencies of organization provide the organization a competitive advantage in the
marketplace. For example, Dell's efficient, just in time manufacturing system is an core
competency that provides Dell a competitive advantage in the marketplace. Some define
core competencies as "world class." That definition would mean many organizations have
no core competencies. That seems to limit the usefulness of the concept. Some
management consultants suggest organizations focus exclusively on their core
competencies; and outsource other functions to other organizations. I can't say I agree with
that - as a rule. Often an organization is better off performing functions internally rather
than outsourcing them even if the function is not a core competency
Corporate level strategy The corporation’s overall plan concerning the number of businesses the corporation holds,
the variety of markets or industries it serves, the distribution of resources among those
businesses
D
Damage control strategy A means a firm uses to deal with a stakeholder group when it decides that it may have
made mistakes and wants to improve its relationship with the stakeholders and to elevate
its public image
Data Raw facts, such as the number of items sold or the number of hours worked in a
department
Data base computer programs that assign multiple characteristic to data and allow users to sort the
data by characteristic
Data mining the process of determine the relevant factors in the accumulated data to extract the data
that are important to the user
Decentralization Delegation of authority and duties is usually referred to as decentralization in which set up
the organization is divided different sections and departments in order to help the
organization grow scientifically and with a purpose of direction leading to harmony in
relations and healthy atmosphere which generally is absent in centralized system of
organization
Decision acceptance The aspect of decision making that is based on people’s feeling’s decision acceptance
happens when people who are affected by a decision like it
Decision making The process of identifying problems and opportunities and resolving them. (b) Refers to
process of identifying problems for decision, devising alternative courses of action, and
choosing one alternative. It is distinguished from problem-solving by (a) requirement that
problems be sought rather than given, (b) alternative formulated rather than given.
Sometimes distinguished from policy-making by (a) presence of sanctions to compel
compliance with the decision and (b) including not only policy-making in governmental or
political organizations, but all kinds of decisional affair
Decision quality The aspect of decision making that is based on such facts as cost, revenues, and product
design specifications
Decision scope The effect and time horizon of the decision
Decoding Translating the symbolic verbal, written or visual symbols into an undistorted, clear
message
Decline stage Period where many people face having to accept reduced levels of power and
responsibility, and must learn to develop new roles as mentors or confidantes for younger
people
Deferred profit-sharing A plan in which a certain amount of profits is credited to each employee’s account, payable
plan at retirement, termination or death.
Dejobbing Broadening the responsibilities of the company’s jobs, and encouraging employees not to
limit themselves to what’s on their job descriptions
Delegation The transfer of decision making authority from a manger to a subordinate or a team at a
lower level in the organization
Delegation of power transfer of powers, originally vested in one branch of the government, to another
Delphi technique A decision-making technique in which group members are presented with a problem and
complete an anonymous questionnaire soliciting, solution the result are tabulated,
summarized and returned to the group members, and in each is asked again for solutions,
the process continues until a consensus decision is reached
Departmentalization The horizontal basis for organizing jobs into units in an organization
Development phase A career development steps in which actions are designed to help the employee grow and
learn the necessary skills to move along the desired career path
Differentiation strategy Delivering products and services that customers perceive as unique
Direction phase the step in career development that involves determining the steps employees must take to
reach their career goals
Discrimination The unfair treatment of employees because of personal characteristics that are not job
related
Dismissal Involuntary termination of an employee’s employment with the firm.
Disparate treatment A form of discrimination that occurs when an employer treats employees differently
because of his or her protected class status
Diversification strategy A firm’s strategic plan to create and mange a mix of businesses owned by the firm
Diversity The wide spectrum of individual and group differences
Divestiture The corporate process of selling a business in order to generate cash, which the corporation
can better deploy elsewhere, or to refocus on its core related businesses, which are better,
understood by management
Divisional approach a departmentalization approach, sometimes called the product approach, which organizes
employees into units based on common products, services, or markets
Division of labor the production process in which each worker repeats one step over and over, achieving
greater, efficiencies in the use of time and knowledge, also the formal assignment of
authority and responsibility to job holders
Dominating style conflict resolution used when the manager or team member acts assertively and forcefully
and persuades the other party to abandon his or her objectives
Downsizing A management strategy used to reduce the scale and scope of a business to improve its
financial performance
The process of reducing, usually dramatically, the number of people employed bya firm
Downward sending a message or interaction from a high position in the organization (ex. instruction
Communication from Management to his/her subordinate) to an individual or group lower in the hierarchy
Dysfunctional conflict conflict that has a negative effect on team and organizational performance
360 Degree feedback multilayer feedback from peers, supplies, other levels of management, and internal and
external customers
E
E-business The process of conducting business transaction using online resources, also called e-
commerce
E-commerce Any business transaction executed electronically by companies or consumers. (Electronic
mail)
Emotional intelligence the attributes of self-awareness, impulse control, persistence confidence, self-motivation
empathy, social deftness, trustworthiness, adaptability and a talent for collaboration
Empirical validity Statistical evidence that the selection method distinguishes between higher and lower
performing employees
Empowering Employee Putting employees in charge of what to do
Empowerment the process of transferring control of individual work behavior from the supervisor to the
employee
Encounter stage the stage of socialization at which the individual begins to compare expectations about the
firm’s cultural with reality
Entrepreneur an individual who creates an enterprise that becomes a new entry to a market
Entrepreneurship the process of creating a business enterprise capable of entering new or established
markets by deploying resources and people in a unique way to develop a new organization
Enterprise resource a computer program that combines all of a firm’s computerized functions into a single
planning, (ERP) software integrated software program that runs off a single database, allowing various departments
to easily share information and communicate with each other
Environment those instructions or forces outside the organization that potentially affect the organization
performance
Equity Financing a means of obtaining financial resources that involves the sale of part the ownership of the
business to investors
Ethical Policy statement firm formal guidelines that provides specific formula for employee’s ethical conduct
Ethical structure the procedures and the division or department within a company that promotes and
advocates ethical behavior
Ethic training a means of providing employees and managers practice in handing ethical dilemmas that
they are likely to experience
Ethnocentrism A believe that may become prevalent among majority –group employees meaning that they
believe that their way of doing, things their values and their norms are inherently superior
to those of other groups and cultures
Evaluation the organization reexamination of whether training is providing the expected benefits and
meeting the identified needs
Executive Refers to one of the three basic powers of the state, assumed by parts of classis political
science to engage in implementing the will of the legislature. it includes a political apex,
such as the president in the USA and the cabinet in Great Britain and India and the civil
service subordinated to it. Modern political science recognized the essential policy-forming
functions of both parts of the executive which are constantly increasing in most
contemporary states
Exit Interview interviews conducted by the employer immediately prior to the employee leaving the firm
with the aim of better understanding what the employee thinks about the company
Expatriates non-citizen of the country in which they are working
Expert power power delivering from the leader’s unique knowledge or skills
Expert system an advanced information that uses human knowledge captured in a computer to solve
problems that normally require human expertise
External locus of control causing feelings of helplessness and decreasing intensity of goal-seeking efforts in the face
of failure
F
Face-to-face group A term used in social psychology, particularly in group dynamics. It describes a small group
of people in close enough physical proximity for each person in the group to interact
directly with each of the others
Facilities the design and location of an operation facility
Facilities layout the grouping and organization of equipment and employees
Facilities layout design the physical arrangement for the facility that will allow for efficient production
Facts bits of information that can be objectively measured or described, such as the retail price
of a new product, the cost of raw material, the defect rate of manufacturing process, or the
number of employees who quit during a year
Fear of failure A fear that is aroused when someone feels pressured to achieve something. It is particularly
prevalent in people with a high need for achievement
Fear of success mainly used to describe a motive in some women to avoid doing, well and achieving success
Feedback information received back from the receiver, which allows the sender to clarify the message
if its true meaning in not received.(b) the degree to which carry out the work activities
required by a job results in the individual obtaining direct and clear information about the
effectiveness of his/her performance
Field research an important part of market research, it involves the collection of data about products or
advertising from actual or potential customers, usually by means of interview or
questionnaire
Financial year the twelve months chosen by an organization as its accounting period
Firewall a combination of computer hardware and software that controls access to and transmission
of data and information contained in a network
First-line supervisor The supervisor responsible for the management of production workers on the shop floor.
The term refers to anyone at the level above charge hand and it’s most often synonymous
with the term foreman
Flat organization an organization with relatively few levels in its hierarchy
Flexible time under flexible working hours flexible time refers to those periods during which an employee
may choose whether to be at work or not, in contrast to core time where attendance is
mandatory
Flexible working hours a method of organizing working hours which has no fixed starting or finishing times and
which allows people some attitude in deciding when they will work
Flow chart a diagram showing all the parts of a system or the stages in a process and the
interrelationships between them
Formal Communication communication between people through the official channels of an organization, following
the official procedure
Formal Group a group set up by the management of an organization with a written mandate and a well-
defined purpose
Formalization the degree to which written documentation is used to direct and control employees
Formal Organization The outward face of an organization as exhibited in its broucher, annual report rule, book
organization chart and so forth. It represents the official structure of the organization and
the way it is supposed to function
Formal planning a system designed to deliberately identify objectives and to structure the
major task of the organization to accomplish them
Forman a first-line supervisor responsible for a group of workers on the shop floor
Franchising A means of entering new markets similar of licensing,mainly used by service companies, in
which the franchise pays a fee for using the brand name and agrees to strictly follow the
standards and abide by the rules set by the franchise
Fringe benefit a reward beyond the basic pay for the job, examples can range from subsidized meals and
travel to pension, holidays and sickness benefits
Functional Analysis A strategic management approach that establish organizational capabilities for each of the
major functional areas of the business
Functional Authority the authority that is associated with a particular job
Conflict that stimulates team and organizational performance
G
Gantt charts a visual sequence of the process steps used in planning, scheduling, and monitoring
production
General Manager The manager responsible for the whole range of administration in an organization and not
just a specific function
Global shift a term used to characterize the effects of changes in the competitive landscape prompted
by worldwide competition
Golden Handcuffs A financial inducement to an employee to stay, so favorable that he or she would find it
difficult to leave the organization
Golden Handshake a relatively large sum of money given in the forms of severance pay for a departure that is
usually ahead of normal retirement or the end of a contract
Go-Slow A form of industrial action, short of a strike, where workers do not withdraw their labor but
slow down the rate at which the work is done instead, by meticulously following the rule
book
Grade refers to a term which is used in public personnel administration to designate a group of
position classes, no matter how differently the work they represent, that are compensated
within the same salary range
Grievance procedure in industrial relations this is a series of arrangement for settling grievances that employees
have against their employers, either directly or between their management and trade union
representatives
Group A number of individual who are viewed, or who view themselves as a collectivity. (b) Two or
more individual’s interacting and interdependent who have come to gather to achieve
particular objectives
Group dynamics in social psychology this term refers to the study of the way people behave in a group,
especially a small face-to face group
Grouping in statistic this is the process of combining individual scores into categories of putting them
in rank order
Group Mind a hypothetical entity (see hypothesis) sometimes given mystical qualities which has been
suggested as the agency for crowds acting in unison
Group Norm Behavior expected of all the members of a group, in a work group the Hawthorne studies
discovered that this can mean an individual keeping to the same level of productivity as
the other group members
Group Process A term used to describe the interactions within a group and the changes that occur over
time in the relationships between its members
Group selection methods Techniques of selection which aim to assess the ability of individuals to work with other
people in a group. They usually involve the observation of a group of candidates in a
discussion or a problem solving situation
Group Structure The way in which a group is designed and organized. It forms the framework for the group
process and for the performance of the group’s task
Groupthink George Orwell’s term for the totalitarian imposition of authorized thoughts on al the
members of a society. The term has been introduced into social psychology by the
American scientist Irving Janis, where it is sometimes used to describe the way that
members of a very cohesive group can become so describe the way that members of a very
cohesive group can become so preoccupied with maintaining a group consensus of though
that their critical faculties become dulled
Group training methods These are training techniques which use the properties of a group to help individual
members learn. The point of the training may be to have the members learn from each
other’s expertise in tackling a particular problem together, or the point of the group might
be the group process itself from which the members would be encouraged to learn about
themselves and how they are perceived by other, a well as about group behavior in general
Group Working an attempt to increase job satisfaction (as well as productivity) especially among assembly-
line worker, by forming individual into a coherent work group and allowing them more
autonomy over, and responsibility for their work than they would have as a series of
individual. This process often involves job restructuring of individual jobs
H
Habit A learned response to a given situation which occurs in such a regular fashion that it
appears to be virtually automatic. Thus it may at times be mistaken for innate behavior and
considered an instinct
Hacking the unauthorized breaking-in-to the data base of a computer
Hall Test in market research this is the technique of asking people their opinions of the adverting,
packaging and presentation of a product
Handbook A book of instructions on how to operate some machine or procedure. In a more academic
sense it is used of a survey of a particular field that is intended to be authoritative and
comprehensive
Hard copy a copy on paper, often in the form of print-out of data stored electronically in a computer
or word processor
Hard currency a national currency used in international trade because it has a stable or risingexchange
rate and is generally accepted as being easily convertible, e.g American dollar or
Afghanistan Afghani
Hard sell a colloquial term for the aggressive advertising, marketing, promotion and selling of a
product
Hardware the physical components of electronic and mechanical equipment that make up a
computer, e.g. the disk drives, keyboard, printer, screen, etc
Hawthorne effect The finding that paying special attention to employees motivates them to put greater effort
into their jobs (from the Hawthorne management studies, performed from 1924 through
1932 at western electric company’s plant near Chicago).
Health and safety at work an area of work subject to a great deal of detailed legislation in most industrialized
countries because of the importance of labor to productivity
Heavy Industry term applied to traditional industries like steelmaking, coalmining and shipbuilding which
were the basis of western industrialization in the nineteenth century and have always
required heavy physical labor
Hedonism in psychology this refers to the idea that all of our behavior stems from the motivation to
pursue pleasure and avoid pain; in philosophy the doctrine that it is our ethical duty to do
so
Heuristic an idea or method of teaching that stimulates further thinking and discovery
Hidden Agenda Thing which are not listed on the formal agenda of a meeting but which influence the
meeting nonetheless. There may be unspoken-or even unconscious- attitudes that
individual hold on the subjects under discussion or they may form a quite conscious
attempt at manipulating the meeting on behalf of the hidden agenda of an individual or
group interest
Hierarchical task analysis a form of task analysis used in assessing training needs which describe a task in terms of a
hierarchy of the operation necessary for its performance
Hierarchy Any organization structure containing different levels of authority and often responsibility.
(2) Any arrangement of things in succeeding levels each one includes all preceding levels
Hierarchy of Needs a theory of motivation proposed by the American psychologist ABRAHAM MASLOW in the
1940s. He suggested there were five distinct levels of human need arranged in a hierarchy,
starting with the basic physiological needs for food and shelter. As one level of need is
satisfied another is reached
Histogram in statistics this is a form of Bar Chart on which a frequency distribution can be represented
graphically
Horizontal communication Communication between people at the same level of the hierarchy in an organization.
Compare with downward communication and upward communication. 2. Communication
between a sender and a receiver at a similar level in the organization
Horizontal dimension the organizational structure element that is the basis for dividing work into specific jobs and
tasks and assigning jobs into units such as department or teams
Human asset accounting an attempt to measure the value to an organization of its human resources by treating
them as assets as well as costs to the organization and assessing, for example Recruitment
and Training polices and funding in this light
Human Capital the part of an organization’s capital represented by the ability, experience and skills of its
work-force
Human Communication The process of communication between people. A relatively new field of study involving
contributions from computer science, linguistic logic, psychology and social science
Human Relation approach A management approach that views the relationships between employees and supervisors
as the most salient aspect of management
Human Resources All the people who work for an organization in a capacity
Human Resource The responsibility of making the best use of an organization’s employees. One of the major
Management functions of personnel management
Human Resource tactics the implementation of human resources programs to achieve the firm’s vision
Human skills The ability to work with, understand and motivate other people, both individually and in
group
I
Identification In general terms recognizing the identity or nature of someone or something. In
Psychoanalysis it refers to the phenomenon of emulating the behavior of a person with
whom one has a powerful emotional bond
Identity Having essentially unchanging characteristic. The basis unit of a personality, especially the
self-image
Implementation guidelines The planning step that show how the intended actions will be carried out
Incentive in psychology this is the basis of motivation and can refer to any kind of reward or
inducement, in an organization, especially a business organization the term is most often
applied to financial rewards, although promotion and enhanced status may also be used
Increment In personnel management this is a regular and usually automatic, increase in a scale of
pay.2. In ergonomics it may refer to an increase in a stimulus from the environment of a
standard amount
Individualism the degree to which a society values personal goal, autonomy and privacy over group
loyalty, commitment to group norms, involvement in collective activities, social
cohesiveness an intense socialization, ethical decisions based on individualism promote
individual self- interest as long as it does not harm others
Induction The process of introducing new members into an organization. The aims of induction are to
provide them with an overview of the whole organization and their place in it, and to give
them a taste of the organizational cultural and the nature of the psychological contract they
will be making
Industrial action Any form of collective action taken by the employees of an organization-usually organized
by a trade union-most often to do with pay or conditions of employment. Action taken may
include a go-slow strike or work to rule
Industrial relations This term is now used to describe the web of relationships that exists between employees
or their trade UNION representatives, Management, and government. Its usage is therefore
much broader than its original industrial or manufacturing context and extends to issues
and procedure concerning employment in any work environment
Industrial Training in personnel management this term usually refers to the training of new workers in a
particular industry or sector of the economy at all levels of abilityand skills
Inferiority Complex according to the Viennese Psychoanalyst, Alfred Adler, this is an unconscious condition
where an individual feels inadequate and resentful, often because of some physical feature
regarded as a defect
Informal Group unlike a formal group an informal group is not set up by management of an organization but
arises spontaneously in the workforce
Information data that have been gathered and converted into a meaningful context
Information communication between people through the grapevine of an organization
Communication
Information management this is concerned with applying information technology to the flow of information in an
organization with the intention of ordering it in the best way to achieve organizational goals
Information processing A key term in the study of cognition which is used to denote what happens mentally
between stimulates and the response to, it including Perception. Memory, thinking
decision-making and problem-solving
Information richness the potential information carrying capacity of data
Information Technology A relatively new field that combines the technology of the computer with that of
communication. it is concerned with the gathering, recording, storage, processing and
dissemination of information and represents the latest form of Man-Machine interface etc
Infrastructure the network of essential services supporting a modern society that has undergone the
process of industrialization
Innovation The development of something new. It is most often applied to the introduction of new
goods and services to the market, particularly those incorporating some advance in
technology
Input-output analysis this is a set of statistics used in a general sense in economics and more specifically in
marketing and market research, in which patterns of buying and selling between industries
or sector of an economy are analyzed to study changes in their trading relationship over a
given period of time
In-service training the training of staff by the organization they work for in order to enhance their value to the
organization
Institution in social science this term refers to a social, cultural economic or political arrangement
that may be of greater or lesser important to people’s lives- like the family or the
monarchy- but which usually endures over time and reflects some basic values of the
society
Integration The process of organization different parts into a whole of a higher order. It is used widely
in science, from the organization of nervous impulses necessary for any kind of behavior up
to the organization of a whole society
Intelligence Although this concept has been discussed in psychology since the 1870s there is no
universally accepted agreement on what intelligence is. Most psychologists would probably
agree that heredity sets limits of a person’s intelligence and most would also agree that the
ability to think in one form or another (handling abstract ideas, adapting to new situations,
perceiving complex relationships) is to sign of high intelligence-which may not get us very
far but never prevented psychologists from designing new intelligent tests
Interacting Group typical group in which members interact with each other face to face
International refers to the art and sciences of management as applied to the operations of an
Administration international organization especially a public international organization employing
international civil servants
International Civil Service the term used for employees of international organizations who are appointed by the
secretary general of the UN and who, in the words of the UN charter, shall not seek or
receive instructions from any government and shall refrains from any action which might
reflect on their position as international officials responsible only to the organization
Interpersonal conflict the general term for any kind of conflict between individual
Interpersonal contact the general term for any kind of relationships or forms of communication between
individuals
Interpersonal skills A group training methods which emphasizes the skills involved in communication with other
development people in listening to their replies. These skills are obviously important throughout the life
of an organization but are perhaps most visible (on the both sides of the table) in an
interview, especially a performance appraisal interview
Interview In essence an interview is a form of conversation, between one interviewee and one more
interviewers, which is structured to a greater or lesser extent. It is probably the most
widely-used method for the assessment of a person’s ability. It is also the most subjective
method and one which is extremely difficult for the interviewer to do well
IQ the intelligence Quotient; a sore obtained from an intelligence test by dividing the mental
age (MA) obtained on the test by the actual or chronological age(CA) and multiplying by
100, i.e. IQ=Ma 100 an IQ score by itself is meaningless. It doesn’t intelligence the way a
tape measure height, for instance. It is only measure of comparison between all the people
who have taken that particular test, with the average score being arbitrarily at around 100
J
Job A piece of work or an order for a piece of work to be done. The term is also used mor e
widely to describe one’s livelihood. A job is therefore a unit of work large enough to be the
basis of an occupation
Job analysis The process of obtaining information about jobs, including the task to be done on the jobs
as well as the personal characteristics necessary to do the task
Job demand the requirement of a job has and therefore what will expected of the person who perform it
Job Description a written summary of task requirements for a particular job
Job Design the process of relating all the tasks to be performed withinthe organization
Job Enlargement expanding the content of a job to include responsibilities that will usually require training
and the acquisition new skills
Job evaluation assessment of the relative worth of job to a firm
Job satisfaction a pleasurable feeling that results from the perception that a job fulfills or allows for the
fulfillment of its holder’s important job values
Job Specification a written summary of worker requirements for a particular job
Job Title the official name an organization gives to the occupant of a particular job, sales Manager,
HR Manager
Junior Management the term applied to managers who are relatively low in the hierarchy of an organization
because they are junior in age and or/ level of responsibility and authority
Justification the procedure used by a word processor to line up the right hand margin of a page so that
all the lines of script are of equal length
K
Key jobs jobs that are characterized by stable tasks and stable job specifications; also known as
benchmark jobs
Knowledge a blend of information experience and insights that provides a framework that can be
thoughtfully applied when assessing new information or evaluating relevant situations
Knowledge capital the value of the knowledge possessed by people at all levels of an organization
Knowledge Engineering a term sometimes used of a group of techniques, based on theories of artificial intelligence,
which is concerned with the design of intelligent knowledge– based systems
Knowledge Management the process of creating an inclusive, comprehensive, easily accessible organizational
memory, which is often called the organization’s intellectual capital
L
Labor Market a geographical area within which the force of supply (people looking for work) interact with
the forces of demand (employers looking for people) and thereby determine the price of
labor
Labor turnover the percentage of the total labor force of an organization leaving its employment and being
replaced over a given period of time, usually a year
Leadership a widely- applied term that usually refers to the personality characteristic and the behavior
of people with authority and influence and responsibility for leading group
Leadership style this term usually refers to the adoption of an authoritarian management or a depending on
which style is more comfortable to his or her personality
Lead time The time taken to complete a cycle of activity. The term is usually used in reference to the
production process, from the initial idea to the finished product, although it can also refer
to the time-lag in supplying an order
Learning theory in psychology this refers to the systematic attempt to explain the process of learning
Legitimacy a term sometimes used of the leadership of a group or organization when it is fully
accepted by the members
Leniency the tendency to rate every employee high or excellent on all criteria
Licensing a means of entering new markets, primarily used by manufacturing firms, by transferring
the right to produce and sell products overseas to a foreign firm. In return, the licensing
receives a negotiated fee, normally in the form of a royalty
Line and staff concept A term used in organization theory to denote the different functions performed in an
organization by managers who are directly goals (line) and those who perform supportive
functions like marketing or personnel (staff).
Line Authority the control by a manager of the work of subordinates by hiring, discharging, evaluating and
rewarding them
Line Management the term used to describe managers who are responsible for an organization carrying out
its basic function, e.g. marketing production etc
Locus of Control a dimension of personality in which people who have an internal locus feel they have
control over what happens to them, and people with an external locus tend to attribute
their experiences to outside forces or other people
Logistic A term that was originally used in the military sphere to describe the organizing and moving
of troops and equipment. It is now often applied to any detailed planning process in an
organization which entails the distribution or redistribution of resources
M
Make-buy-analysis an operation management tool used to help make the decision as to whether to product n
item or to purchase it
Management making the most effective use of available resources, whether in the form of machine,
money or people, (2) the people responsible for the management of an organization, i.e. for
the directing, planning and running of its operations, for the implementation of its policies
and the attainment of its objectives
Management accounting the preparation of accounting information for use by managers of an organization in
budgeting, decision making, planning and formulating policy
Management by objective a performance appraisal strategy in which employees and supervisors agree on a set of
(MBO): goals to be accomplished for a particular period; performance is then assessed at the end of
the period by comparing actual achievement against the agreed –on-goals
Management change the ongoing managerial process of enhancing the ability of an organization to anticipate and
respond to developments in its external and internal levels to cope with the changes
Management consultant someone who offers a consultancy, service in any area of Management or the running of an
organization
Management The process of identifying, training and generally equipping relatively junior Managers with
Development the experience or skill necessary for senior management, positions with an organization in
the future. it is a process that ideally, should be an integral part of a coherent personnel
policy going from initial recruitment to ultimate retirement
Management information an information system that provides information to managers to use in making decisions(b)
system(MIS) a centralized and usually computerized, information system for use by the managers of an
organization in decision making
Management service the application of scientific methods, and particularly quantitative Methodology to the
practice of science perspective to the study of management
Management style The general approach a manager has to dealing with other people at work, and in particular
the exercising of his or her authority with subordinates. This style is often characterized as
tending towards authoritarian management or democratic management, depending on the
personality of the individual manager, but people can also have somewhat different
approach when faced with different situations
Management training Any form of training in the practices and techniques of management. One important form
of management training is to have mangers study case histories of real-life issues in
organizations and work on solutions to problems; another is to play business games
designed to deal with particular aspects of management. The term is often used
interchangeably with management education, though the emphasis of management
training is generally more focused and less formal or academic
Manger anyone involved in the administration of an organization with the authority to use
organizational resources, whether money, labor, or equipment, in furtherance of the
organization’s objectives
Manager grid a techniques used in management development that was devised by two American
organization psychologists, Robert Blake and Jane Mouton, building on previous
contributions to the study of Human Relations by psychologists like ARGRIS, LEWIN, and
LIKERT. The technique consists of scoring managers on two dimensions at right angles to
each other to form a grid. The dimension is concern for production (or the task in hand) and
concern for people. Each individual’s scores are then plotted on this grid to see how much
of each concern by express
Managerial psychology the systematic study of the role of the Manager in an organization and in particular the
relationships between supervisor and supervisors, this area of study is a part of industrial
part of industrial psychology
Managing diversity establishing a heterogeneous workforce (including white men) to perform to its potential in
an equitable work environment where no members or group of members enjoys an
advantage or suffers a disadvantage
Manpower analysis An analysis of the employee in an organization that attempts to identify pattern and trends
in their employment. It will examine, for instance, the distribution of employees by age, sex,
skill, job title and length of service. It is the stage of systematic manpower planning
Manpower planning the process of forecasting both the numbers and the kinds of employees that an
organization will require over a given period of time and taking steps to ensure their supply,
ideally this should be an integral part of an organization’s personnel policy from
recruitment to retirement, including selection, promotion, and training
Manual skill a skill that requires physical rather than mental ability
Manual worker someone employed on the shop floor of an organization doing physical rather than mental
work, whether the work is skilled or unskilled
Market A situation where buyers and sellers are in communication with each other. This may take
several forms, e.g in person (as in a cattle auction) or electronically (as in the stock
exchange) or through the mass media as in newspaper advertising columns
Marketing the series of process by which demand for goods and services in identified, supplied
anticipated or manipulated, it relies heavily of such functions as advertising and market
research
Marketing concept a philosophy of marketing that emphasizes the supreme important of the custom,
fundamental to this philosophy is an understanding of what the customer wants in any
given market, and this is usually artained by the extensive market research
Marketing environment the set of external factors that affect the market in which an organization operates i.e
cultural, economic, legal, political, geographical etc
Marketing Mix The combination of different aspects of an organization’s strategy for marketing a product,
e.g advertising, market research, production and public relations. The guidelines for the
most appropriate mix are sometimes expressed as the four Ps- product, price
Market leader The organization with largest share in a given market. price (market), position and place.
Market penetration the amount of demand in a given market that is supplied by a particular organization
Market Research Research carried out in the course of marketing, either by an organization itself or by
specialists from an external consultancy, to determine the likely Market for a product or the
effects of past or prospective adverting on consumers. Depending on the kind of
information required, the research may use either quantitative methodology with survey
research on large numbers people or qualitative methodology with large interviews of
individuals and families and group interviews of 5-10 people in a face- face group
Market segmentation The analysis of buyers or potential buyers in a given market along various dimensions.
These usually include demographic like age sex and socio-economic status, buying patterns
with respect to price and quality, and personality factors like conservatism-radicalism, need
for achievement or need for affiliation the objective is to divide market into segments
comprising similar kinds, of people so that marketing efforts can be targeted more
precisely, and the most effective approach used with each segment
Market share the amount of total demand in a market which a particular organization supplies over a
given period of time
Market value the current price that a particular item would fetch in the market
Maslow’s hierarch of the theory that people tend to satisfy their needs in a specified order, from the most to the
needs least basic
Mass Media forms of communication that reach a large-usually nation-wide-audience, i.e., radio,
television and newspapers
Mass Production The production of identical items on a very large scale. It requires the process of
automation, division of labor job simplification, specialization and standardization. In the
twentieth century the prototype for mass production was the assembly line developed in
the car manufactured industry by HENRY FORD
Master of Business The academic qualification in Management Education which is generally accepted in the
Administration United States as a prerequisite for a professional career as a manager. The qualification is
also becoming increasingly soughed after in the United Kingdom-but not in other
industrialized countries like Germany and Japan which have alternative routes into
Management
Matrix organization A flexible form of organization structure often used in situation which requires a mix of
people with different skills and experience to be focused on a particular task, or an unusua l
project that crosses existing departmental boundaries in an organization. The people
involved in this kind of task force will continue to report officially to line Management, but
in their day-to-day work they will be responsible to the project leader
MDW See Measured Day Work
Mean In statistic this is the most commonly used measure of central tendency. It is the arithmetic
average, found by summing the values of a series of numbers and dividing this by the total
number in the series
Measured Day work a management procedure where a daily production target is defined for all the workers on
the shop floor, whose pay is then made up of a fixed regular amount of each day that the
target is met-as opposed to payment-by-result
Measure of central one of three statistical which can each be used as a central value to describe a series of
tendency numbers the mean the median and the mode
Median In statistic this is a measure of central tendency which divides a group of scores in half, with
half the scores falling above the median score and half below
Mediation a process by which a neutral third party attempts to help the parties in a dispute reaches a
settlement of the issues that divide them
Merger an amalgamation of two or more organization into a single new organization by mutual
agreement-as opposed to a take-over
Merit rating A form of reward for members of an organization based on an assessment of their worth
beyond the normally expected performance of their job, on the grounds that different
people doing the same job can have a different value to the organization. The kind of factor
usually taken into account are absenteeism, aptitude, attitude towards management,
length of service, punctuality etc
Merit pay system pay systems most commonly applied to exempt employees under which employees receive
permanent increases, tied to levels of job performance, in their base pay
Middle Management A manager whose position in the hierarchy of an organization is higher than junior
management and lower than senior management is part of middle management, and this
accounts for most managers in most organizations. Middle managers are typically in charge
of the constituent units that make up an organization, responsible for the work of other
people but with little or no say in the making of policy or the taking of organization-wide
decisions
Middleman an individual or an organization acting as a link between others, especially between
producers and consumers or retailer, e.g a furniture wholesaler or literary agent
Monitoring observing environmental changes on a continuous basis to determine whether a clear trend
is emerging
Monoculture the homogeneous organizational cultural that results from turnover of dissimilar employees
Motivation In psychology this is a general term for any part of the hypothetical psychological process
which involves the experiencing of needs and drives and the behavior that leads to the goal
which satisfies them. In more popular usage motivation refer than another
Multimodal distribution in statistics this term refers to a distribution with several modes
Multinational company a commercial organization which operates in more than one country and moves its
resources and activities between them in such a way as to maximize its trading advantages
in such areas as labor costs or taxation benefits
N
Need for achievement a strong drive to accomplish things, in which the individual receives great satisfaction from
personal attainment and goal completion
Need for affiliation a strong desire to be liked by others, to receive social approval, and to establish close
interpersonal relationships
Need for assessment a training tool that is used to determine whether training is needed
Need of power the desire to influence or control other people
Negative reinforcement the removal of unpleasant consequences associated with a desired behavior resulting in an
increase in the frequency of that behavior
Negotiation In industrial relations this is the essence of the collective bargaining process. It refers to the
discussion of terms and conditions of employment by employers and employee, or their
representatives, with a view to reaching a mutually acceptable outcome
Networking linking people scattered geographically into a single work group by electronic means e.g
teleporting
New technology the term often used to describe the applied microelectronic devices to be found in the
electronic office
Niche Marketing the systematic search for a market niche usually by a new market rather than increase
market share of an existing market
Nominal group technique a decision-making technique that helps a group generate and select solutions while letting
(NGT) group members think independently; group members are given the problem and each
presents one solution without discussion, then all solutions are discussed, evaluated and
ranked to determine the best alternative
Non-conforming high a team member who is very individualistic and whose presence is disruptive to the team
performer
Non- executive director a director of an organization who is not a full time employee and who does not have any
executive form of authority
Non-financial reward the component of an organizational reward system that includes everything in a work
environment that enhances a worker’s sense of self-respect and esteem by others, such as
training opportunities, bonus, and involvement in decision making and recognition
Non-governmental this term is usually applied to an organization that operates internationally but it is not
organization supported, in the main, by direct governmental funding e.g amnesty international or the
Red Cross
Non- profit organization any organization whose ownership resides entirely with its members and whose financial
operation are not intended to yield a profit for shareholder
Non-verbal behavior any form of human behavior that does not employ speech or writing
Non-verbal Direct face to face communication between people by any means other than the spoken
communication word. This would include facial expression, bodygestures, hand gestures, body posture and
eye contact
Norm In statistic this is a value representation of a whole set of numbers such as one of the
measures of central tendency (mean, median, and modes).
Norming stage a stage in team development that is characterized by resolution of conflict and agreement
over team goals and values
O
Objective career a sequence of positions occupied by a person during the course of a lifetime, commonly
referred to simply as one’s career
Objectives the goals or targets that the firm wishes to accomplish within a stated amount of time
Office Management is the organization of an office in order to achieve a specified purpose and to make best
case of the personnel by using the most appropriate machine and equipment
Office Manager is one who leads the office and who organizes and control the office activities in such a
manner which ensures efficient service scientifically and economically
Office Personnel it is the office personnel who perform all the activities of the office the office manager,
select trains, assign and control the activities
Off-line The part of a computer system which is not under the immediate control of the central
processing unit and cannot therefore be accessed directly. It is used to produce data that is
only required at relatively long intervals, like a monthly bank statement or a quarterly
electricity bill
Off-job training : training that takes place away from the employment site
On-job training training that takes place in the actual work setting under the guidance of an experienced
works, supervisor, or trainer.(b) a form of training that is given to people at their place of
work, and usually during working hours
Operational action plan a management plan normally created by line managers and employees directly responsible
for carrying out certain task or activities
Operational analysis in the assessment of training needs the level of analysis that attempts to identify the
operational decision
Operational decision decisions with a short time perspective, generally less than a year, and that often are
measured on daily or weekly basis
Operational manger the firm’s lower-level managers who supervise the operation of the organization
Operation management the process an organization uses to obtain the materials or ideas for the product it provides,
it process of transforming them into the product, and the process of providing the final
product to a user
Operation planning short- to-middle range businesses planning that addresses issues associated with the
growth of current or new operations as well as with and specific problems that might
disrupt the pace of planned growth also known as tactical planning
Operation research A branch of management science that applies mathematics to a series of techniques, like
critical path analysis which an organization may use in its planning and decision-making. In
essence operational research is used to see whether the efficiency and cost effectiveness of
a system can be improved by developing a scientific model to study that system and
including within it the factors of chance and risk
Optimizing selecting the best alternative from among multiple criteria
Organic organization a management design that is focused on change and flexibility, emphasizing horizontal
design relationships that involve teams, departments or divisions and provisions to coordinate
these lateral units
Organization A group of people brought together for the purpose of achieving certain objectives. as the
basic unit of an organization is the role rather than the person in it the organization is
maintained in existence, sometimes over a long period of time despite many changes of
member. (b) A consciously coordinated social unit, composed of two or more people that
function on a relatively continuous basis to achieve a common goal or set of goals
Organization chart a graphic depiction that helps summarizes the lines of authority in an organization
Organization design the selection of an organization structure that best fits the strategic goals of the business
Organization politics the exercise of power in an organization to control resources and influence policy
Organization structure The formal system of relationships that determines lines of authority (who reports to
whom) and the tasks assigned to individual and units (who does what task and with which
department).
Organizational goals The formally stated objectives which are the basis for the existence and the maintenance of
an organization and its members. It is usually assumed to be something the individual owes
the organization
Organizing Determining what tasks is to be done who is to do them, how the tasks are to be grouped,
who report to whom and where decisions are to be made
Organizing the management of functions that determines how the firm’s human, financial, physical,
informational and technical resources are arranged and coordinated to perform tasks to
achieve desired goals; the deployment of resources to achieve strategic goals
Overhead any recurrent day-day expenditure incurred in running an organization other than the costs
of labor and material, e.g. rent, heating, and lighting
Overtime any time worked outside normal working hours, for which people are paid at a higher rate
than the basic level of pay
Owners the parties that have invested a portion of their wealth in shares of company stock and
have a financial stake in the enterprise
P
Participant observation Research techniques in social science where an observer becomes anaccepted member of
the group he or she wants to study
Participation the term used to describe the involvement of people in the performance of the organization
they work for, e.g. by employee ownership or profit sharing
Part method a technique of learning in which the material is broken down into smaller parts to be
learned separately and then recombined, compare this with the whole method
Partnership a form of business that is an association of two or more persons acting as co-owner of a
business
Passive –aggressive style of communication whereby individual avoids giving direct responses to other’s
communication requests or feedback
Passive communication style of communication whereby individual does not le others know directly what he or she
want or needs
Pay An amount of money paid on a regular basis to people in regular employment. Payment
may be of wages or salary, in cash or by cheque or by direct bank transfer
Pay incentive compensation that rewards employees for good performance, including variable pay and
merit pay
Peak experience in humanistic psychology this term refers to a moment of great emotional power in which a
person feels something asking to ecstasy, where she is at one with herself and with the
world
Performance the way a job or task is done by an individual, a group or an organization
Performance appraisal an interview between an employee and his or her line manager, usually conducted once a
interview year, at which an assessment is made of the individual’ s job performance and how it
relates to training needs, promotion opportunities etc
Performing stage a stage of team development that is characterized by a focus on the performance of the
tasks delegated to the team
Personality The sum total of all the factors that make an individual human being both individual and
human; the thinking, feeling and characteristic pattern of these elements that makes every
human being unique. Psychologists often emphasize the integration and dynamic nature of
an individual’s personality and the important role of unconscious processes that may be
hidden from the individual but are at least partly perceptible to other people
Personal network the relationships between an entrepreneur and other parties, including other
entrepreneur’s supplies, creditors, investors, friends, form colleagues, and others
Person-job-fit The extent to which the personality of an individual fits harmoniously with the job she does.
One the goodness of fit between the two will depend the crucial factors of work like job
satisfaction, productivity and stress
Persona Non Grata an unwanted person. The declaration of P.N.G is made in a government statement to the
effect that any further stay of the diplomat in question and his family on the territory of the
host country is undesirable
Person Perception the process by which people form impression of others, then flesh these impression out and
make them more coherent- through not necessarily more accurate
Personnel the people employed in an organization (2) the function of dealing with an organization
employees as its human resources
Piecework a form of payment –by-results where workers are paid for each piece of work they do
rather than the number of hours they put in. it was based originally on the scientist
management principle of F.W Taylor
Pilot Study a term sometimes used in market research or survey research, e.g. when a proposed
Questionnaire may be tested on a few respondents before being used on a large-scale
study, to see whether the questionnaire needs revising and whether the study itself is
worth doing
Placement The process of placing someone in a job, ideally with a perfect person-job fit. This is an
important aspect of personnel management
Planning Any attempt systematically to organize the future performance of people or money or
goods and services within a given set of constrains and time horizon. (b) The management
function that assesses the management environment to set future objectives and map out
activities necessary to achieve that objective.(c) includes defining goals establishing,
strategy and developing plans to coordinate activities
Plant The building, equipment and machinery used in the running of an organization, especially in
manufacturing industry
Power The ability to make things happen by exerting influence over people or things. The most
commonly recognized sources of power are physical strength, knowledge, or position in the
hierarchy of an organization. But there are also less concert sources of power such as exist
in personality factors like charisma or the relationships between people in an organization
Power Distance The extent to which individuals expect a hierarchical structure that emphasizes status
differences between subordinates and superiors
Pricing The decisions made by an organization in setting a price for the goods of Service it
provides, taking into account the cost of production and the nature of the Market
Proactive Management a management style in which problems are anticipated before they become pervasive and
time is set aside on both a daily and weekly basis to plan goals and priorities
Proactive strategy a means of dealing with stakeholders when a firm determines that It wants to go beyond
stakeholder expectations
Process the way a product or service will be produced
Process Control systems an operations information system that monitors and runs Machinery and other equipment
Process reengineering a method of changing the entire production process rather than making incremental
changes
Product differentiation The packaging and advertising of different brands of virtually identical products in order to
create differences between them in the mind of the consumer. (2) the process of designing
and producing a range of the same basic products in order to appeal to differentsegments
of the market, e.g. breakfast cereals with or without fiber, fruit sugar etc
Product innovation A product whose production breaks new ground for an organization either because of the
process involved in producing it or the market it is aimed at
Productivity The rate of output of a worker or a machine. (b) A performance measure including
effectiveness and efficiency
Product Life cycle A term used in marketing to describe the different stages that every product goes through
from its initial development and introduction to the market, via its in initial development
and introduction to the market, via its initial sales and its established sales, to its eventual
decline and withdrawal from the market
Product Manager a management role that coordinates the development of new products
Product Mix The range of products and the particular combination of them at any given time, that an
organization products
Product obsolence the final stage of a production cycle when it withdrawal of the product fromthe market
Profession An occupation possessing high social status and characterized by considerable skill and
knowledge, much of which is theoretical and intellectual in nature
Professional socialization the process of socialization that a new recruit to a profession has to undergo
Program Evaluation and The name of a particularly popular technique in critical path analysis. (b) Tool for analyzing
Review Technique the conversion process
Programmed decision Identifying a problem and matching the problem with established routines and procedure
for resolving it
Portfolio analysis an approach to classify the processes of a diversified companywithin a single framework or
taxonomy
Projection In psycho analysis this refers to an EGO DEFENCE where an individual (at the unconscious
level) attributes to other people feelings he her himself if but which are too threatening to
EGO to admit into his consciousness
Project Manager a management role that coordinates work on a scientific, aerospace or construction project
Project team a group that works on a specific project that has a beginning and an end
Promotion An attempt to publicize an organization, its products or its interests, by advertising or public
relations. (2) The process of moving within the same organization to a job of greater
authority pay and status
Promotion in Civil Services Of the most vital importance in the management of public personnel is the system of
promotion. Promotion in words of Dr. White means an appointment from a given position
to a position of higher grade involving a change of duties to a difficult type of work.
Involving a change of duties to a more difficult type of work and greater responsibility,
accompanied by change of title and usually an increase in pay. The promote goesfrom a
lower position to a higher one which means more responsibility higher rank and
incidentally, though not fundamental higher salary
Psychology Most commonly defined at present as the study of human and animal behavior, a definition
that accurately describes the route to increasing our psychological knowledge. An older
definition the science of mental life, focuses on a psychological understanding of what that
behavior is about and how make sense of its most intelligently
Public Administration An old-fashioned term dating from the time when the systematic study of administration
was considered a public sector activity. It has been largely superseded by term business
administration (when followed as part of a master of business administration course) and
administrative science (B). Refers to the activity of a governmental unit in carrying out the
public policy declared in the laws. It is also a field of professional study through which
preparation for public managerial positions is secured
Public offering a means of raising capital by the sale of securities in public marketssuch the New York
Stock Exchange and NASDAQ
Public Relations The systematic attempt by an organization to present itself to best advantage, both to an
external public and to its employees by a process of persuasive communication. It is used to
conjunction with paid advertising and concentrates usually on the mass media. The
objective of the exercise is to build up and maintain good relations between the
organization, its public and its employees.(b) in professional terms the function through
which public and private organizations and institutions seek to win and retain the
understanding sympathy and support of their present or potential public i.e. those groups
with whom they are or may be concerned, such as voters, stockholders, directors,
government officials employees, customers, suppliers and the general public
Punishment an aversive or unpleasant consequence following understand behavior
Q
Quality the term is now used mainly as a way of measuring or describing how good or bad a
product is at performing its function
Quality circles groups of employees who meet regularly to discuss ways to increase quality
Quality Control Any technique, like the quality circle, for helping to maintain a desired level of quality in the
production of a product. Normally this level will be as high as is feasible, but sometimes
control will be exercised to ensure that quality is not too high
Quality Gap the difference between what customers want and what they actually get from the company
Quality Market a market in which the quality of a product is more important to the customer than the price
Quality of working life An approach to work that first became prominent in the 1960s.It is concerned to improve
the quality of life for people in the workplace by emphasizing the importance of good job
design in making work more meaningful for workers and giving them more control over
how they do it
Questionnaire Any set of written questions used in the collecting of information for purposes of
comparison. It is widely used in market research and is the basis of all work in survey
research
Quota sampling In statistic this is the process of sampling data from each subgroup of a given population.
This is a particular form of stratified sampling widely used in market research where an
interviewer is given a set number or quota of interview to carry out in a given stratum of
the population and stops sampling when the quota has been achieved
R
R& D research and Development
Random sampling In statistics this is the process of sampling data at random from a population so that
inference can be made about the population from finding about the sample. The crucial
condition is that each individual in the total population has an equal chance of being chosen
Rank order any series of number items, or individual arranged in order of magnitude, either increasing
or decreasing
Rationalization in psychoanalysis this term is used to describe an EGO DEFENCE in which a person justifies
some action about which he has unconscious guilt feelings because he really knows he
should not have acted in that way. (2) In economics the term is used to denote the
application of the most efficient methods in the use of resources in a creation of a more
effective organization structure, which often implies one that is simpler and cheaper
Rational Management the opposite of participative management the term is usually used to denote a
management style that emphasizes objective measures of input and output rather than
human relations
Reactive management the management style of responding to the most urgent problem first when not enough
time is available
Recruitment The process of identifying possible candidates for a job vacancy. It starts with a job analysis
after which a job description and job specification is drawn up. Likely candidates to meet
the specification are then trawled, perhaps by advertising in an appropriate trade press or
by head hunting. Ideally this process should be the logical outcome of manpower planning
and first stage of a coherent policy of personnel management that continues until
retirement. (b) The process of generating pool of qualified candidates for a particular job
Recruitment pipeline the time frame from the receipt of a resume to the time a new hire starts work
Redeployment the process of moving workers from one location to another, often with the objective of
finding them alternative employment
Red Tape It is official conduct of postponing decisions and delaying implementation of policies,
quoting rules and regulations as hurdles. It is a defect associated with bureaucracy
Redundancy the dismissal of someone from his employment either because his job has ceased toexist or
his skills are no longer required
Reference group in sociology this is the term for a group with which an individual identifies and whose group
norms he follow, whether he is accepted by it or not and whether he is physically part of it
or not
Reference power power derived from the satisfaction people receive by identifying themselves with the
leader
Relationship-building role a lead ship style that focuses on maintaining good interpersonal relationships
Relative judgment a performance appraisal approach in which employees are compared to one other
Relevant labor market determined by which jobs to survey and which markets are relevant for each job,
considering geographical boundaries as well as product-market competitors
Reliability the consistency of results from the selection methods
Research and The first stage of a product life cycle in which science and technology is applied to the
development development of new products. The term is also used more generally to describe any
systematic activity within an organization aimed at gaining it a competitive edge in the
future
Resources allocation the planning step that determines where the resources will come from (for instance,
borrowing versus internally generated funds) and how the resources will be deployed to
achieve the agreed-on objectives
Resource-based view a strategic management viewpoint that basing business strategy on what the firm is capable
of doing provides a more sustainable competitive advantage than basing it on external
opportunities
Responsibility the manager’s duty to perform an assigned task
Restructuring the process of changing a company by selling or buying plants or lines of business or by lying
of employees
Result-oriented system rating formats that place primary emphasis on what an employee produces
Resume A French word which is used an American version of Curriculum Vitae
Resumes Human Skills an automated resume-processing system that use electronic technology to process resume,
Management system input data into an applicant database, and provide online access to resume and skills
information on available job candidates
Retail Audit a market research technique which involves taking a representative sample of retail outlets
and studying them to obtain data on distribution, sales stock etc
Retailing The selling of goods and services, in relatively small quantities directly to the consumer
through a shop or other retail outlet. Compare with wholesaling
Retail price index a figure calculated monthly which reflects that cost of a set of basis goods and services used
by most of the United Kingdom population
Retention initiatives taken by management to keep employees from leaving, such as rewarding
employees for performing their jobs effectively, ensuring harmonious working relations
between employees and managers and maintaining a safe healthy work environment
Retirement the process of finishing one’s full time work life at a designated or generally accepted age
Return on investment (ROI) a measure comparing training programs monetary benefits with its cost
Reward Any kind of return (usually positive) as a result of a given behavior. It is most often used in
employment to refer to monetary gains in return for an individual’s performance at work.
These gains may be in the form of pay or fringe benefits or perks
Reward power power derived from the belief that the leader can provide something that other people
value so that they trade their support for the rewards
Right approach a means of making decisions based on the belief that each person has fundamental human
rights that should be respected and protected
Risk The like hood or the statistical probability of failure in an enterprise; the essence of being
an entrepreneur, and therefore of capitalism. The term is also used of the probability of
damage or loss the essence of insurance. (b) the level of uncertainty as to the outcome of a
management decision
Risk capital capital invested in an enterprise with a high degree of risk, thought usually with the
possibility of a large financial gain
Role A term widely used in social psychology to refer to the kind of behavior expected of a given
person in a given situation. The term has been applied generally to the organization a
workplace. (b) Expectations regarding how teammembers should act in given situations
Role Ambiguity a situation in which an individual is unclear about the role expected of her or his
Role conflict a situation in which an individual is expected to play two or more roles which are in conflict
or in competition with each other
Role differentiation The process of the division of labor and of speciation within a group. The larger and more
complex the group from the family to the multinational company-the greater the degree of
role differentiation
Role expectation the expectation other people have about the way a person will pay her role in a given
situation
Role innovation the process of changing the goals and objectives of a particular role
Role model People after whom an individual will model his/her own performance of a given role. (b)
The leadership mechanism in which managers serve as example of behaviors they would
like employees to follow
Role negotiation this term is sometimes used to describe a process that may take place during an interview
with a candidate for a job where the exact role the individual would play in the organization
is subject to negotiation
Role overload an extreme form of role conflict where the number of different roles expected of an
individual are simply too great for her to contain
Role playing acting the part of another person in a therapeutic or business game situation (b) playing a
certain role for the particular affect it will cause
Role relationship any relationship between two people which is defined by the rolethey each play, e.g. boss
and subordinate
Role reversal a situation in which people agree to switch their usual role relationships
Role set the significant others who have relationships with a given individual
Role structure the extent to which a role is specified and defined or left open
Role transition the process of switching from one role to another, a process in which socialization is of
great importance
S
Salaried staff This term is usually applied to staffs who is white-collar workers and whose pay is
calculated on an annual basis and paid in equal monthly installments. This is in contract to
the blue-collar worker, for example, which might be paid on an hourly basis or by the
amount of worker completed
Salary Structure The arrangement of pay within an organization such that different grades of employees
doing different jobs will receive different rates. These rates would be based (originally) on
the processes of job analysis and job evaluation, and eachwould normally be in the form of
a scale with annual increment of pay
Sales promotion any attempt to increase the sales of a particular product by raising public awareness of it
through advertising or public relations
Sampling In statistic this is the process of analyzing a sample drawn from a particular population
when it is too difficult or expensive to deal with each member of that population. The most
common ways to obtain a sample are by random sampling and stratified sampling including
quota sampling
Sampling error in statistic this is the extent to which a sample is not an accurate representation of the
population from which it has been drawn
Sampling frame the background or catchments area of population from which a sample is to be taken
Satisfying Selecting the first alternative solution that meets a minimum criterion. (b) A term that
originated in Economic to describe the situation in which an organization was sufficiently
satisfied with what it had achieved to stop striving for more even though it had not reached
its ideal or optimal targets. The term is also used more broadly to be almost synonymous
with comprise’ in a situation of conflict where a solution is reached which satisfies all
parties but is less than optimal for any of them
Saving face maintaining one’s self esteem or the self-esteem of one’s group in a situation of individual
or group conflict, or any kind of bargaining
Scanlon plan Named after the American trade union theorist Joseph Scanlon whose plan, first produced
in the late 1930s, and was intended to herald a new form of co-operative relationship
between management and unions. One outcome of the plan was a method whereby
employees would share in the financial benefits of increased productivity by receiving each
month a bonus based on a percentage. The Scanlon plan is regarded as an important
contribution to industrial democracy
Scanning the analysis of general environmental factors that may directly or indirectly be relevant to
the firm’s future
Scientific Management a management method that applies the principles of the scientific method to the
management process, determining the one best way to do a job and sharing the rewards
with the workers.(b) an approach to management, based on the theories of FW TAYLOR,
dealing with the motivation to work. It sees it as a manager’s duty to find out the best way
to do a given job by a process of work measurement, than give each worker individual
instructions which have to be strictly followed. The individual is thus seen as the extension
of his machine, and his rewards are also to be allocated mechanically with more pay
expected regardless of any other factors
Seasonal unemployment a form of unemployment that peaks at certain times of the year due to the nature of the
industry in question; e.g. construction or tourism
Secretary an individual female who supports one or more executive in an organization by typing
filling, arranging meetings, screening telephone calls etc. an Individual usually male, who is
the executive responsible for administrative arrangement (and often the legal and financial
arrangements) of a group or organization e.g. the of the cricket club or secretary of
committee
Segmented flows of information within the firm that is far greater within groups than between groups
communication
Selection The screening process used to decide which job applicant to hire. (b) The process of
choosing someone for a particular job which follows the recruitment of suitable candidates.
The selection process will probably include an interview and may also include tests such as
ability, aptitude, intelligence, personality and physical
Selection perception Type of perception barrier whereby the receiver focuses on the parts of the message that
are most salient to his or interests and ignores other parts that are not relevant. (b)
Literally, the process of seeing what you want to see. The process of perceiving the world as
we need to perceive it, whatever the relation of that perception to objective reality, is the
way we satisfy the need to make sense
Selection ration the percentage of applicants hired, which is used in evaluating the usefulness of any
predictor
Self-actualization According to the American psychologist ABRAHAM MASLOW this term describe the ongoing
striving to fulfill one’s creative capacities. This is considered an important sign of
psychological health
Self –censorship A situation in which people do not say what they really think in a group discussion, for the
sake of group cohesiveness. This is one of the factors contributing to groupthink
Self-concept the entire element that make up a person’s view of herself including her self-image
Self-employment working for one and not being a staff member of an organization
Self esteem The degree to which a person likes herself;how worthy she deems herself to be. High self-
esteem is generally considered to be an important sign of psychological health
Self-fulfilling prophecy the idea that expectations concerning one’s own or other People’s behavior can lead to the
expected behavior appearing, such as in the PYGMALION conflict
Self-image The self a person believes himself to be; one’s self-image is a composite of many things and
may bear little relation to any objective assessment to oneself or the assessment of others.
It begins very early in life and is probably, to a large extent, physical. This early body image
can stay with a person for the rest of his life. The judgment of other people are also
important in the formation of the self-image, but even though someone’s social contacts
and therefore the judgment made of him, may change greatly in later life, he may still think
of himself in terms of the earlier judgment
Self-Knowledge Having an accurate awareness of what our self is really like. Where Such knowledge is
painful we will invest an enormous amount of energy in not knowing
Self-leadership leadership that stresses the individual responsibility of employees to develop their own
work priorities aligned with organizational goals; the manger is a facilitator who enhances
the self-leadership capabilities of subordinates, encouraging them to develop self control
skills
Seller’s market a market situation in which sellers have more power to influence prices and conditions of
sale than buyers, usually because demand exceeds supply
Seniority This term refers either to higher rank or greater length of services in an organization. (b) a
defense against discrimination in which companies with a well-established seniority system
can give more senior workers priority, even if this has an adverse impact on protected class
members
Senior Management the term applied to managers who are relatively high in the hierarchy of an organization
because they are senior in level of responsibility and authority and often in age as well
Severance pay a payment made to an employee either because his contract of employment has ended or
because he has to lose his job through on fault of his own e.g. redundancy
Sex role The different behavior a society expects of a male or female person on the basis of their
sex. As social differences invariably imply prejudice, this is the basic for sexism in society
Sexual Harassment the occurrence of verbal or physical abuse solely on the basis of the sex of the victim. It is
very common in the workplace and almost always by men against women. (b) a form of
discrimination that is broadly interpreted to include sexually suggestive remarks, unwanted
touching, and physical or verbal act that indicates sexual advances or requests sexual favor,
a promise of reward or hidden threats by a supervisor to induce emotional attachment by a
subordinate and a hostile environment base on sex
Shift work The process of divining the whole 24- hour day into work periods, often of eight hours each
e.g., midnight-8:00 am-4:00 pm and 4:00 pm midnight. Shift work is used to obtain
maximum use of plant in manufacturing, or of the work-force in the service sector,
especially that part of it which includes the emergency services where continuous cover is
required
Shop floor A term originally applied to the area of a factory in which production took place. It has been
widened in its applications to indicate the blue-collar workers in an organization as opposed
to the white-collar workers in an organization as opposed to the white-collar workers, or
even the work-force in general as opposed to the management
Shop steward a trade union official elected by fellow workers on the shop floor to represent them in their
day-day dealings with the employers or their Management representatives
Shortlist A list of leading candidates for a particular job or position as the result of a recruitment
process. People on the shortlist will be asked to attend an interview, and will perhaps be
given some tests as well, before the final selection is made
Short-time working A situation in which a workplace is forced to work a reduced working week because of a
shortage of orders. This is seen as a temporary measure to cut labor costs while retaining
the work-force intact
Simulation The creation of a controlled replication of a real life situation for purposed of training,
analysis or policy decision-making. It may be abstract and use sophisticated mathematics
(like a simulation, or model, of the world economy) or concrete and use the business game
Situational context the factors that are outside the control of the subordinate such as the task defining the job,
the formal authority system of the organization, and the work group
Six differences These refer to all differences in behavior or ability between males and females. As with
supposed racial differences there is no evidence that there are any, what like a genetic sex
difference in aggressiveness, for instance is due to a cultural process of learning the sex role
considered appropriate for either males or females
Six sigma a quality standard that is equivalent to generating fewer than 3.4 defects per million
manufacturing or services operations
Skills a learned response, often as the result of specific training, which affords someone the
ability to perform a particular task and achieve a particular goal
Skills inventory a human resource inventory that keeps track of the firm’s internal supply of talent by listing
employees education, training, experience, and language abilities; the firm can use this
information to identify those eligible for promotion or transfer before trying to fill the
position from the external market
Skinner, BF (1940-1990) An American psychologist and the most celebrated exponent of behaviorism, not just in the
study of psychology but as a means of running a society. His own techniques of conditioning
were based on the research of Pavlov and Watson. In recent years he has expounded the
social implications of his views in a number of influential works intended for the general
public
Sloan, Alfred P (1875-* An American industrialist who took over a small and ailing motor manufacturer, General
1966) Motors, in the early 1920s and turned it into one of the biggest corporations in the worl-d
and at the expense of the Ford Motor Company. He did so mainly by introducing the
concept of professional Management to a business world that was still largely run by the
personal proprietor, like Henry Ford, whose company almost went out of business in
competition with GM
Slush fund an informal unofficial and sometimes dubious source or funds from which an organization
can finance a great variety or informal, unofficial and sometimes dubious activities, ranging
from staff outgoing, or bribing public officials
Small business any business that is independently owned and operated, that is small in size, and that is not
dominant in its markets
Smith, Adam (1723-1790) An eighteen century Scottish economist and Philosopher who based his doctrines of the
free market on a rational-economic view of human nature. He argued that, as individual
self-interest was the driving force whose aggregate effects resulted in social harmony, there
should therefore be no state intervention in the market between buyers and sellers. He also
proposed specialization and the division oflabor in manufacturing
Social accounting a particular concern with the social aspects of a cost-benefit analysis
Social anthropology The systematic study of the social system and the culture of different societies, particularly
non-literate societies. Its major research method is participant observation
Social class a rather old-fashioned term for socio-economic status considered crude and gauche n some
quarters, if not downright subversive
Social cohesion a similar process to that of group cohesiveness, though on a larger scale extending to an
entire culture or society
Social comparison The process of evaluating one’s attitudes and behavior by comparing them with those of
other people. In social psychology there is an idea that when people are uncertain of what
to do (or think or feel) in a given situation they are more likely to take their cue from other
people and conform to their behavior
Social control The control that a group or culture, or society exerts upon the individual who comprise it.
This control stems from the process of socialization and is exhibited as conformity pressures
towards social norms
Social deprivation In sociology this term is used to describe the situation of an individual or group lacking the
material benefits which are generally enjoyed in a society. Compare with relative
deprivation
Social distance the degree to social intimacy someone will accept in relation to other individual or groups
Social-emotional leader The individual who may emerge in a small group as the person who keeps up the morale
and facilitates the interpersonal relations of the group. Compare with task leader
Social facilitation The stimulating effects on someone’s behavior of other people-even the mere presence of
other people. The Hawthorne effect isan example of social facilitation
Social influence a basic concept of social psychology which refers to the effects on a person of relations with
others, whether individuals groups, or society in general
Social interaction the mutual social influence that people have on each other’s behavior in a social setting
Socialization the process of internalizing or taking organizational values as one’s own
Social norm Behavior that is expected of all the members of a society. The norm of social behavior is
therefore one way of defining social normally
Social psychology the branch of psychology that deals with social life, the behavior of people in groups, and
the behavior of individuals in social setting
Social skills A set of skills in dealing with other people which determine someone’s effectiveness in a
social or group setting. They include interpersonal skills development as well as
interpersonal relations and non- verbal communication
Social status someone’s general position in society in relation to andas determined by other people
Social stratification in sociology this term refers to the division of a society into a series of strata of differing
social class or social economic status
Social support positive interpersonal relations with colleagues, friends or family which are particularly
helpful in dealing with the effects of stress
Socio-economic status In sociology this term refers to the categories produced from the social stratification of a
society by income and occupation. In the United Kingdom these are six in number and they
are widely used in Advertising, market research and survey research:
A (upper middle class) higher managerial, administrative or professional
B (middle class) intermediate managerial, administrative or professional
C1 (Lower middle class) supervisory, clerical junior managerial, administrative or
professional)
C2 (Skilled working class) skilled manual workers
D (Working class) semi-skilled and unskilled workers
E (lowest level of subsistence) state pensioners, widows, casual and lowest grade workers
Software the computer programs, codes and other support material available for use with particular
hardware
Span of control The number of subordinates who report directly to a given manager and over whose work
he exercises authority generally speaking, the higher a manager is in the hierarchy ofan
organization the smaller the span of control he/she has to deal with. (b) The feature of the
vertical structure of an organization that outlines the number of subordinates who reportto
a manager, the number of managers, and the layer of management within the organization
Specialist an individual who is an expert in one particular field of study or in the use of a certain ability
or skill or even in the performance of a particular task
Specialization In economics this term refers to part of the division of labor in which a given task is broken
down as far as possible into subtasks, each of which then becomes the responsibility of a
specialist worker. Specialization is therefore an important basis for mass production
Spin-off an independent entrepreneurship that produces a product or service that originated in a
large company
Staff This term is most often used to describe the white-collar workers usually full time
employee- of an organization, as opposed to blue-workers. The term refers to a different of
status in term of pay, condition of employment and fringe benefits.(b) the managerial
activities of identifying work requirements within an organization; determining the numbers
of people and the skills mix necessary to do the work; and recruiting, selecting and
promoting qualified candidates
Staff appraisal The assessment of how well a member of staff is doing. It is usual to include a performance
appraisal interview as part of this process
Staff association In terms of industrial relations a staff association is equivalent to a company to a company
union as it usually has no powers of collective bargaining on pay and conditions of
employment. It also has the function of organizing social activities for staff
Staff authority Management functions of advertising, recommending, and counseling line mangers and
others in the organization; it provides specialized expertise and is not directly related to
achieving the strategic goals of the organization
Staff inspection a job analysis of all staff positions in an organization as the first step in a process of
rationalization
Staff Management The management of staff in an organization (2). Managers who have a specialist service or
advisory support function and are not in the chain of command of the organization’s
hierarchy
Staff Manager the level of management that helps line managers achieves bottom-line results while only
indirectly contributing to the outcome
Stakeholders the group or individuals who have an interest in the performance of the enterprise and how
it uses its resources, including employees, customers and shareholders
Standard hour In work study this term refers to a unit of work rather than time. It is the measure of the
performance of a standard operator for a given task over one hour
Standardization The process of production that provides standard machine parts through a wide variety of
manufacturing. This is one of the bases of Mass Production. The process of setting generally
acceptable standards of product of quality
State intervention the intervention by government, either directly or indirectly, in the working of the economy
State-of –the Art The very latest product in its field
Statistical process control The use of statistical techniques to determine the acceptable limits of variation of quality of
a given product, usually involving random sampling of the output. (b) An operations
management monitoring tool that uses quantitative methods and procedures to evaluate
transformation operations and to detect and eliminate deviations
Statistics a form of mathematics used on data gathered in studying behavior and by which
investigators evaluate their findings and make inferences of wider implication than their
study sample
Status The standing of an individual in an organization. This is based on the amount of respect he
is accorded by other people, whether it is because of his position in the hierarchy or
because of personal qualities like charisma. The standing of a document under discussion.
How formal or official is it and what is the appropriate way or responding to it?
Storming stage a stage in team development in which team members voice their differences about team
goals and procedures
Strategic action plan Management plans based on macro approaches for analyzing organizational features,
resources, and the environment and establishing long-term corporate wide action programs
to accomplish the stated objectives in light of that analysis
Strategic alliances cooperative arrangements between competitors or potential competitors form joint
venture or collaboration between firms on specific projects
Strategic compensation compensation practices that best support the firm’s business strategy
Strategic decision decisions that have a long-term perspective of two or five years and affect the entire
organization
Strategic HR Planning The development of a vision about where the company wants to be and how it can use
(SHRP) human resources to get there. (b) an approach to human resource management that has
the goal of using people most wisely with respect to the strategic needs of the
organization, ensuring that people from all the levels of the organization are working to
implement the strategy of the business effectively
Strategic intent the firm’s internally focused definition of how the firm intends to use its resources,
capabilities, and core competencies to win competitive battles
Strategic job analysis future-oriented analysis that identify skill and ability requirements for jobs that do not yet
exist
Strategic Managers the firm’s senior executive who are responsible for overall management
Strategic Meeting bringing people from different departments or divisions together to synchronize plans and
objectives and to coordinate activities
Strategic Mission the firm’s externally focused definition of what it plans to produce and market, utilizing its
internally based core competence
Strategic Planning the basis of a corporate plan or other broad based and long-term assessment of an
organization’s future
Strategizing the management skills of focusing on the firm’s key objectives and on the internal and
external environments and responding in an appropriate and timely fashion
Strategy formulation the design of an approach to achieve the firm’s fashion
Stress Physical and psychological tension and strain usually accumulated over a period of time,
which threatens a person’s ability to go on coping with the demands of a given situation. If
it is not dealt with it will frequently result in psychosomatic disorders
Stress Interview An interview that is deliberately conducted by the interviewer in a harsh and hostile
manner with the supposed intention of testing the interviewee. It is more likely to be the
sign of a man with an inferiority complex testing his manhood
Structural change deep-seated changes that affect very structure of a society, like the industrial inventory
Structural unemployment unemployment that arises from the changing structure of an industry or society (e.g. in the
pattern of demand) that is long term or even permanent, as opposed to seasonal
unemployment or unemployment that is a temporary reflection of prevailing economic
conditions
Structured interview An interview in which the interviewee is led through a fixed series of topics based on a set
of prepared questions, often raised in a particular order. This method emphasizes
comparability of respondents at the expense of flexibility for the interviewer and scope for
amplifying answers by the interviewee
Subcontracting the practice of making an agreement between the main contractor responsible for a project
and another organization which will subcontract to carry out part on it
Subculture a term borrowed from anthropology by sociology to denote aculture within a culture, i.e.
one which shares most of the main features and values of the parent while retaining special
characteristics of its own
Supernumerary someone who is surplus to requirements for an organization at a given time and place, e.g.
result of over manning
Supervisor anyone who supervises the work of others, although a supervisor, like a Forman, is usually
regarded as being on the first level of line management in the hierarchy of an organization
Survey research A technique for gathering data from large numbers of people by the use of questionnaires
and using statistical sampling methods. SWOT (Strengths-Weakness –opportunities-threats
Analysis): a strategic management tool to evaluate the firm, which is accomplished by
identifying its strengths and weakness, identifying its opportunities and threats, and cross-
matching strengths with opportunities, weakness with the threats strengths with threats,
and weakness with opportunities
Sympathy The ability to feel with someone. It is an emotional experience as compared to empathy
Syndicate A group of individuals or organizations who combine for some common goal which is to
their mutual benefit
Synergy Allows individuals to blend complementary skills and talents to produce that are more
valuable than the sum of the individual contributions. (B) A situation in which the co-
operation of two or more individuals groups or organization produces a combined effect
which is greater than could have been produced by the sum of the separate entities eg..
super ordinate goal achieved by two groups
System any series of interconnected elements forming an organized or organic whole with common
objectives, Example can range from an individual central nervous system to a society’s
family and kinship arrangements
System4 a classification of Management style by the American psychologist Rensis Likert, There are
four styles in all arranging from the autocratic (System 1) to the democratic (System4)
System Analysis the attempt to formulate general principles that could be applied to any system by a
comparative analysis of the structures and functions of as wide a variety of system as
possible
System approach an approach to managing human resources that provides a conceptual framework for
intergrading the various components within the framework and for linking the human
resources management (HRM) system with larger organizational needs
Systemic discrimination any business practices that result in the denial of equal employment opportunity
16PF test this is a psychological test of personality, developed by the American psychologist Raymond
Cattell, which attempts to measure sixteen major personality factors (hence 16PF). The test
is sometimes used in occupational psychology for the purpose for selection where the
findings are matched against important personality factors that have some been identified
for various occupations
T
T-Group a form of sensitivity training
Tactical action plans Management action plan at the division or department level at indicates what activities
must be performed, when they must be completed, and what resources will be needed at
the division or departmental level to complete the portions of the strategic action plan that
fall under the purview of that particular organizational subunit
Tactical decisions decisions that have a short-term perspective of one year or less and focus on subunits of
the organization, such as departments or project teams
Tactical Managers the firm’s management staff who are responsible for translating the general goals and plan
developed by strategic managers into specific objectives and activities
Tactical Planning Short- to middle-range business planning that addresses issues associated with the growth
of current or new operations, as well as with any specific problems that might disrupt the
pace of planned growth. Also known as operational planning
Talent inventory the human resources skills, abilities and potential, and analyzes how those resources are
currently being used
Tangible resources assets that can be quantified and observed, including, financial resources, physical assets,
and manpower
Task The major element of work that makes up a job. Each task in a job description is intended to
contribute to the overall objectives of the job
Task The major element of work that makes up a job. Each task in a job description in intended
to contribute to the overall objectives of the job
Task analysis the analysis of a task into its constituent operations for the purposes of identifying the skills
involved and the training necessary to improve them
Task facilitating role the team-member role with the priority of helping the team accomplishments and
performance results
Task force a temporary interdepartmental group formed to study an issue and make
recommendations. (b) A group of people who are brought together for a particular task,
usually involving a special project or unusual problem. The group in normally disbanded
when the task has been successfully completed
Task Identity the extent to which a task is composed of a single, whole and identifiable piece of work
Task leader the individual who may emerge in a small group as the person who tries to keep the
attention of the group focused on its task and who tries to ensure that it gets done
Tax avoidance the legal attempt to reduce the burden of taxation on an individual or organization
Tax deductible any business expense that can be deducted from income before the calculation of tax due
Taylor F.W (1856- 1915) An American engineer who invented work study and founded the scientific Management
approach to the world of work (sometimes known as Taylorism) at the beginning of the
twentieth century. He placed great emphasis on analysis the constituents operations of a
task down to the finest details. Taylor also saw the importance of good selection and
training procedures and argued for better communication between management and the
shop floor and better cooperation in general both sides of industry
Team a small number of people with complementary skills, who are committed to a common
purpose, a set of performance goals, and an approach for which they hold themselves
mutually accountable
Team building A technique that aims to help work groups by improving the quality of their member’s
interpersonal relations as well as their skills at solving problems and accomplishing their
task. This is usually done with the aid of an external consultancy which will diagnose the
way the work group functions, helping members to identify difficulties and suggest
improvements
Team cohesiveness the extent to which members feel a high degree of camaraderie, team sprit and sense of
unity
Team norms share beliefs that regulate the behavior of team members
Technology The means of transforming inputs into products. (b) The practical application of scientific
innovation to industry
Technology transfer the transfer of a technology from an area in which it has been successfully applied to an
area in which it has not yet been tried
Telecommunication any form of communication by electronic means
Teleconference a discussion or conference where participants are geographically scattered and linked by
means of telecommunication such as audio conferencing or video conferencing
Telephone interviewing an adaptation of the interview technique used in survey research where face- to face
interviewing is not possible or advisable
Test Marketing a form of pilot study on a new product, where it is tried out in a limited area first in order to
see whether it would be worth marketing more widely
Thematic Apperception A projective technique developed in the late 1930s by the American psychologist Henry
Test Murray. It consists of vague and ambiguous drawing (usually of one or two human figures)
about each of which the subject has to make up a story. The themes that may emerge from
these stories are then used to diagnose areas of emotional conflict or concern in the
subject. This technique has been widely used in the selection of senior management where,
for example, the incidence of achievement imagery might be of particular interest
Theory X a negative perspective on human behavior(b) in the terminology of Douglas McGregor this
describe the rational-economic view of the human nature that people only work when they
have to and therefore require authoritarian management
Theory Y In the terminology of Douglas McGregor this describes view of human nature in which
people would like to be creative in their work and take more responsibility for it. They
would thus be more responsive to democratic management and it’s enabling function than
is suggested by the proponents of theory X
Theory Z The term suggested by the American writer on organizational theory William Ouchi for
western adaptation of Japanese Management practices. The theory Z organization is
distinguished by several important features: I life time employment: 2. relatively slow
promotion; 3. Concern for the whole person;4. Informal control and leadership; 5.
Individual responsibility; 6. Consensual decision-making;7. Relatively less specialization.
There is some evidence that theory Z organizations have less absenteeism, greater
productivity and better quality output than others
Time budget the preparation of a detailed timetable of work activities in order to help improve time
management and efficiency
Time horizon the degree to which the planning of an organization or an individual manager extends into
the future
Time in Lieu a period of time off work, usually taken at the employees discretion, to make up for time
worked over and above normal working hours, i.e., an exchange of time for the money that
would have been paid for working an overtime rate
Time sharing a situation in which two or more people or organizations make use of the same piece of
equipment (particularly a computer) in order to share costs and to maximize use of the
resource
Tolerance for ambiguity the ability to live with a situation that is not clear cut, where different interpretations of
what is happening are possible and where the outlook is observe, in sum the ability to
accept complexity in human affairs without seeking the comfort of simplistic solutions. In
psychology, high tolerance for ambiguity is usually seen as a sing of psychological health
and maturity
Top-down change organizational change that is initiated by managers
Total factor productivity the measurement of how well an organization utilizes all o f its resources, such as capital,
labor, materials, or energy, to produce its outputs
Total Quality Management An organization wide management approach that focuses on quality as an over searching
(TQM) goal. The basis of this approach is the understanding that all employees and organizational
units should be working harmoniously to satisfy the customer. (b) An approach to and
concern for quality which pervades the organization from to bottom. It was originally
introduced to Japan in the aftermath of the Second World War by the American engineers
W Edwards Deming and Joseph Duran. It is based on close attention to detail, self-
monitoring by workers at each step and a passionate commitment to quality as part of an
organization’s identity, and which is internalized by everyone in it. This approach is
customer driven and aims for Zero in it. This approach is customer driven and aims for zero
defects, while being imbued with the spirit of Kaizen or continuous improvement
Training An area of personnel management concerned with making the best use of the Human
Resources in an organization by providing them with the appropriate instruction to acquire
the necessary skills for their jobs. (2) Planned programs designed to improve performance
at the individual, group and or organizational levels
Training and development the phase of training whose purpose is to design the environment in which to achieve the
phase of training objectives defined in the assessment phase by choosing methods and techniques and by
delivering them in a supportive environment based on sound principles of learning
Training Outcome the effectiveness of a training program based on cognitive, skill-based, affective, and results
outcomes
Training paradox the seemingly contradictory fact that training employees to develop their skills and improve
their performance increases their employability outside the company while simultaneously
increasing their job security and desire to stay with their current employer
Trait any enduring characteristic of an individual’s personality
Trait Appraisal instrument Performance appraisal tools that evaluate employees based on worker characteristic that
tend to be consistent and enduring, such as decisiveness, reliability energy, and loyalty
Trait Theory any approach to the study of leadership which emphasizes the importance of trying to
identify distinguishing characteristic or traits of personality common to successful leaders
Transactional leaders leaders who use legitimate, coercive, or reward powers to elicit obedience and attempt to
instill in followers the ability to question standard modes of operation
Transfer the extent to which competencies learned in training can be applied on the job
Transfer of Training The process whereby the learning achieved in one situation is transferred to another
situation. This can have positive effects (knowing Spanish aids the learning of Italian) or
sometimes negative effects (knowing how to steer a car is detrimental to steering a boat
with a tiller).
Transformational a leadership style characterized by the ability to bring about significant change in an
leadership organization, such as a change in vision, strategy or culture
Trust the willingness of one team members to increase his or her vulnerability to the actions of
another person whose behavior he or she cannot control
Trust –control dilemma the basic problem of delegation faced, at any level, by a manager in an organization of how
much trust to have in the subordinate to whom the work is delegated and how much
control, if any of the work to retain
Tuition assistance support by the firm for employees’ education and development by covering the cost of
programs tuition and other fees for seminars, workshops and continuing education programs
Turnkey project a specialized type of exporting in which the firm handles the design, construction, start-up
operations, and workforce training of foreign plant,and a local client is handed the key to a
plant that is fully operational
Turnover The amount of sales revenue achieved or business transacted during a given period of time.
2. Loss of people from and appointments to the work force during a given periodof time. 3.
The Through put of stock in either manufacturing production or in services
Two-step of the idea that the mass media of communication first influence the opinion leaders in a
communication community who in turn influence the opinions and attitudes of others
Two-way communication communication channels that provide for feedback
Type a personality A set of personality characteristics that have been linked to a particular suptibility to
heart disease. These characteristics include being impatient, always rushing, trying to do
too many things at once, walking, talking and eating fast, being hard-driving at work, having
few interests, outside work and hiding feeling, type A personality in always contracted with
type B personality
Type B Personality a set of personality characteristics that are the opposite of type a personality and therefore
considered to be much less suptible to hear disease. These characteristics include being
casual about appointment, being a good listener, never feeling rushed, slow and deliberate in
manner and speech, easy-going many interests outside work and able to express feelings.
Both types A and B are extreme instances and people would generally fall somewhere
between the two
U
Uncertainty the condition when incomplete information is available and must be to make a
management decision
Unconscious This is the most important concept in psychoanalysis. It is the region of the psyche that
contains impulses and desires which are too threaten to be allowed into consciousness and
from which they have been repressed or inhibited from entering. The effects of this
repression and inhibition are expressed in conscious (and never claimed to have done so),
he systematically probed the dynamic mechanisms involved in its relationship with the
conscious psyche, and did more than anymore else to expose the great amount of
irrationality in human affairs. Unfair dismissal: the verdict of an industrial tribunal which is
sought by an employee who feels he has been wrongfully dismissed by his employer. The
employer has to show that the dismissal was fair and legal
Unit of Command In organizational theory, this is the principle that each member of an organization should
report to only one person. (2) The management concept that a subordinate should have
only one direct supervisor and a decision can be traced back through subordinates to the
manager who originated it
Unstructured interview An interview which is not guided by a set of fixed questions, or perhaps even topics from
the interviewer but in which as free and open a discussion as possible is encouraged within
the constraints of time and the objective of the interview. This method emphasizes
flexibility for the interviewer and scope for expression by the interviewee, at the expense of
comparability across respondents. In practice most interview of whatever kind fall
somewhere between the completely unstructured interview and the totally structured
interview
Upward Communication communication from lower level, of employees up to senior Management in the hierarchy
of an organization. A much difficult proposition than either downward communication or
horizontal communication.(b) sending a message from a position lower in the hierarchy to a
receiver higher in the hierarchy
Utilitarianism a means of making decisions based on what is good for the greatest number of people
V
Validity the measurement of how well a technique used to assess candidates is related to
performance in the job
Value chain analysis: strategic management analysis that breaks the firm down into a sequential
series of activities and attempts to identify the value-added of each activity
Variance In statistic this is the square of the standard deviation. It is used to measure the spread of
scores in a particular test or experiment
Venture capitalists financial investors who specialize in making loans to entrepreneurships that have the
potential for rapid growth but are in high-risk situations with few assets and would
therefore not qualify for commercial bank loans
Vertical Communication a term applied to downward communication, though more usually to upward
communication in an organization
Vertical dimension the organization structure element that indicates who has the authority to make decisions
who is expected to supervise which subordinates
Vertical integration The process whereby a company extends its business interests into each stages of
production of or sales, of its products. Though sometimes a company is able to do this for it,
it is usually accomplished by some form of merger with, or takeover or another firm
concerned with a different stage of the same product, e.g. a publisher may take over a
bookshop
Vertical integration a form of diversification strategy in which a firm integrates vertically by acquiring
strategy businesses that are supply channels or distributors to the primary business; producing its
own inputs is backward integration, and distributing its own output is backward integration,
and distributing its own outputs is forward integration
Videoconferencing a teleconference using video, as well as audio, means of communication
Virtual Corporation a new organization form in which teams of specialists come together through technologyto
work on a project, and disband when the project is finished
Virtual teams Groups that use interactive computer technologies such as the internet, groupware
(software that permits people at different computer workstations to collaborate on a
project simultaneously) and computer-based videoconferencing to work together
regardless of distance
Virtual workplace a new organizational form based on the idea of working anytime, anywhere-in real space or
in cyberspace
Visible cultural the aspect of culture that an observer can hear, feel or see
Visioning conceptualizing what should be happening in the future, and having the ability to excite and
inspire others in making the vision a reality
Visual search in ergonomics, this term refers to the process of scanning display of its operations on a
television screen
Vocational guidance A branch of occupational psychology which helps people to choose an occupation or a
career which will be mutual benefit to them and their prospective employers. It makes use
of the interview technique plus an extensive battery of psychological tests, including tests
of ability, aptitude and need for achievement
Voluntary contracts Because both parties enter the labor contract freely, one party can use the legal system to
enforce the terms of the contract if the other party does not fulfill its responsibilities
Voluntary redundancy a situation in which an employee requests or agrees to redundancy, usually in return for
favorable terms of compensation
Voluntary work unpaid work due by volunteers for a charity or similar organization
Vroom-Yetton Model A contingency theory of leadership that uses a decision tree to identify the most
appropriate leadership style for a given situation. It was developed by two American
industrial psychologists, Vroom and Yetton
W
Welfare function The basic function of personnel management which implies responsibility for the well-being
of an organization’s members, physical, mental and social. At the every least this will
include health and safety at work but, depending on the policy of the organization, it may
also include many other things, like Affirmative action Paternity leave, or the provision of a
crèche for working mothers or small children
Welfare State a country whose government accepts that it has the primary responsibility to look after the
welfare of its citizens; their education health, employment and retirement in particular
White-collar crime criminal offences associated with businessmen or white-collar workers, like embezzlement,
fraud or insider dealing or the stock market
White-collar worker Popular term for any member of staff who works in an office. The name derives from the
practice of (men) wearing a white shirt to work (in the days when men wore white shirts-
with white collars)
Whole method a technique for learning in which the material is learned as a whole an each practice or
repetition
Wholly owned subsidiaries a means of entering new markets in which a firm fully owns its subsidiary in foreign
countries
Wholesaling Acting as an intermediary or middleman between the production of goods and their
retailing to the general public. It usually involves the stocking of relatively large quantities of
goods for onward communication
Win lose bargaining in negotiations, the bargaining posture that assumes that the goals of the parties are
irreconcilable; also known as distributive bargaining
Win Lose Style negotiating style used when there is a single issue that consists of a fixed amount of
resources in which one party attempts to gain at the expense of the other
Win-Win bargaining in negotiation the bargaining posture that assumes that the goals of the parties are not
mutually exclusive, that it is possible for both sides to achieve their objective
Win-Win style Negotiating style requiring all interested parties to convert a potential conflict into a
problem-solving process in which each party seeks to identity common, shared common,
shared or joint goals
Work Any kind of purposive activity whether paid or unpaid, full time or part time, formal or
informal. With reference to an organization it is used about the operations involved in a
particular job or task
Work design the part of the job design process that is concern with the actual working operations, as
opposed to the personnel management aspects
Workers compensation programs that provide payments to workers who are injured on the job, or who contract a
programs work-related illness
Workers sample tests standardized measures of behavior whose primary objective is to assess the ability to do
rather than the ability to know through miniature replicas of actual job requirements
Work experience a period of time spent doing unpaid work in a workplace environment by young people
about to leave school, as preparation for future employment
Work flow the arrangement of jobs in a particular sequence intended to help an organization run
smoothly and productively
Work Group Members of a group who are held accountable for individual work, but they are not
responsible for the output of the entire group
Working class the principal productive force of modern society, the main driving force of the transition
from capitalism to socialism and communism
Work life program an employer-sponsored benefit or working condition that helps employees to balance work
and non-work demands
Work Measurement an integral part of the work study, process in which a variety or (subjective) methods, like
work sampling, are used to fix a standard time for the acceptable performance of a given
task by a trained worker
Work organization any organization which, in the course of trying to fulfill its goals gives paid employment
(whether full-time or part time) to one or more workers
Work Planning identification of the numbers of employees and the skills needed to perform available jobs,
based on an understanding of available competencies and change in jobs required by
corporate goals
Work Sampling a technique used in work measurement and work study for obtaining information about a
particular job or task by the sampling (usually Random Sampling) from the work activities at
various times rather than by continuous observation
Work simplification a process used in organization and methods or work study where a system of work is it’s
examined to see if unnecessary expenditure of energy can be removed
Work utilization a means of identifying whether the composition of the workforce-measured by race and
sex-employed in a particular job category in a particular firm represents the composition of
the entire labor market available to perform that job
References