Organisation Theory and Management
Organisation Theory and Management
Organisation Theory and Management
GEETA MISHRA
Preface
With the rapidly changing socio-economic and political environment and
trend towards globalization of economies, management of human resources
in modern organisations has become a very challenging job. The people in
organisations differ in terms of their attitudes, beliefs, values, background,
knowledge etc and a thorough understanding of these concepts and
processes can be of great value to the modern managers. The present study
material synthesizes the study of the individual, the group and the
organisation system and elaborates the applied behavioral science concepts,
principles and techniques. It also provides an integrated view of modern
organisations, their environment and organizational designs for healthy
organisation and environment interface.
The subject matter has been presented in a simple and lucid manner, keeping
the unique requirements of students in mind. A critical and balanced
coverage is given to all the important topics in ORGANISATION AND
MANAGEMENT. At the end of each chapter, multiple choice questions are
given to enable the students to have self-appraisal of their understanding of
the concepts in the chapter.
I am grateful to all those who have directly or indirectly helped me in
preparing this course material. I sincerely believe that there is always scope
for improvement. Therefore; I invite suggestions for further enriching the
study material.
GEETA MISHRA
INDEX
Chapter
No.
Topic
Page No.
Overview of Management
46
68
The Organization
83
123
Bibliography
166
167
Chapter 1
Topic: - Overview of Management
Contents
SCHOOLS OF MANAGEMENT
Management has been practiced in some form or the other since the dawn of
civilization. Ever since human beings started living and working together in
groups, techniques of organisation and management were evolved. The
Pyramids of Egypt, the Chinese Wall, the Roman Catholic Church and other
such wonders could not be possible without the application of management
principles and techniques.
Despite ancient origins, very little conceptual and organized body of
knowledge could be developed until the end of 19 th century. A scientific and
systematic study and application of management began mainly after the
Industrial Revolution. Since then the development of management thought
has been quite rapid.
The main stages in this development can be classified as follows:
1.
2.
3.
4.
1.1
Classical approach
Neo-classical approach
Systems approach
Contingency approach
CLASSICAL APPROACH
The classical approach offers a convenient framework for the education and
training of managers. First, the observational method of case study is helpful
in drawing common principles out of past experiences with some relevance
for future application.
The second merit of this approach is that it focuses attention on what
managers actually do. Thirdly, this approach highlights the universal nature
of management. Fourthly it provides a scientific basis for management
practice. It also provides a starting point for researchers to verify the validity
and to improve the applicability of management knowledge. Such
knowledge about management is effectively presented. Classical approach
provides a foundation on which the science of management can be built.
from
several
4. Standardization
a. It implies the physical attitude of products should be such that it
meets the requirements & needs of customers.
b. Taylor advocated that tools & equipments as well as working
conditions should be standardized to achieve standard output
from workers.
c. Standardization is a means of achieving economics of
production.
d. It seems to ensure
Critical evaluation
Although it is accepted that the scientific management enables the
management to put resources to its best possible use and manner, yet it has
not been spared of severe criticisms.
Workers Viewpoint:
1. Unemployment - Workers feel that management reduces employment
opportunities from them through replacement of men by machines and
by increasing human productivity less workers are needed to do work
leading to chucking out from their jobs.
2. Exploitation - Workers feel they are exploited as they are not given
due share in increasing profits which is due to their increased
productivity. Wages do not rise in proportion as rise in production.
Wage payment creates uncertainty & insecurity (beyond a standard
output, there is no increase in wage rate).
3. Monotony - Due to excessive specialization the workers are not able
to take initiative on their own. Their status is reduced to being mere
cogs in wheel. Jobs become dull. Workers loose interest in jobs and
derive little pleasure from work.
4. Weakening of Trade Union - To everything is fixed & predetermined
by management. So it leaves no room for trade unions to bargain as
everything is standardized, standard output, standard working
conditions, standard time etc. This further weakens trade unions,
creates a rift between efficient & in efficient workers according to
their wages.
5. Over speeding - the scientific management lays standard output, time
so they have to rush up and finish the work in time. These have
adverse effect on health of workers. The workers speed up to that
standard output, so scientific management drives the workers to rush
towards output and finish work in standard time.
Employer's Viewpoint:
1.
2.
Some experts believe that Taylors contribution has been somewhat overemphasised .The originality of his ideas has been doubted. Business
managers have opposed the idea of replacing judgment with
prefabricated techniques. The term scientific management is not
acceptable to many persons, because it is nothing but a scientific
approach to management.
In the final analysis, Taylor made a lasting contribution to making jobs
and their management more efficient and productive. Scientific
management was developed by engineers and scientists and their concern
for efficiency led to better methods and tools. Many of the Taylors
contributions provide the essence of modern management practice.
According to Peter Drucker scientific management is one of the great
liberating and pioneering insights. Without it a real study of human
beings at work would be impossible. Taylor laid the foundation of
modern management as a science. He is therefore, rightly known as the
father of scientific management.
PLANNING
Planning is the most basic or primary function of management. It precedes
other functions because a manager plans before he acts. Planning involves
determining the objectives and selecting a course of action to achieve them.
It implies looking ahead and deciding in advance what is to be done, when
and where it is to be done and by whom it is to be done. Planning is a mental
process requiring the use of intellectual faculties, foresight, imagination and
sound judgment. It consists of forecasting, decision-making and problem
solving. A plan is a predetermined future course of action. Drawing up plans
of actions that combine unity, continuity, flexibility and precision given the
organisation's resources, type and significance of work and future trends.
Creating a plan of action is the most difficult of the five tasks and requires
the active participation of the entire organisation. Planning must be
coordinated on different levels and with different time horizons;
ORGANISING
Once plans are formulated, the next step is that of organizing. Organising is
the process of establishing harmonious authority-responsibility relationships
among the members of the enterprise. It is the function of creating a
structure of duties and responsibilities. The network of authorityresponsibility relationships is known as organization structure. Such a
structure serves as the framework within which people can work together
effectively for the accomplishment of common objectives.
According to Fayol, To organize a business is to provide it with everything
useful to its functioning-raw materials, tools, capital and personnel. A
sound organisation helps to avoid duplication of work and overlapping of
effort. Providing capital, personnel and raw materials for the day-to-day
running of the business, and building a structure to match the work.
COMMANDING
Optimizing return from all employees in the interest of the entire enterprise.
Successful managers have personal integrity, communicate clearly and base
their judgments on regular audits. Their thorough knowledge of personnel
creates unity, energy, initiative and loyalty and eliminates incompetence;
COORDINATING
Unifying and harmonizing activities and efforts to maintain the balance
between the activities of the organisation as in sales to production and
procurement to production. Fayol recommended weekly conferences for
department heads to solve problems of common interest;
CONTROLLING
Identifying weaknesses and errors by controlling feedback, and conforming
activities with plans, policies and instructions. Fayol's management process
went further than Taylor's basic hierarchical model by allowing command
functions to operate efficiently and effectively through co-ordination and
control methods. For Fayol, the managing director overlooked a living
organism that requires liaison officers and joint committees.
BUREAUCRACY (1864-1920)
Hawthorne Experiments
The Hawthorne Studies (also knows as the Hawthorne Experiments) were
conducted from 1927 to 1932 at the Western Electric Hawthorne Works in
Cicero, Illinois (a suburb of Chicago). This is where Professor Elton Mayo
examined the impact of work conditions in employee productivity. Elton
Mayo started these experiments by examining the physical and
environmental influences of the workplace (e.g. brightness of lights,
humidity) and later, moved into the psychological aspects (e.g. breaks, group
pressure, working hours, managerial leadership) and their impact on
employee motivation as it applies to productivity.
The girls complained that their work rhythm was broken by the
frequent pauses
6. The workday was shortened to end at 4.30 p.m. instead of 5.00 p.m.
o
Output increased
8. Finally, all the improvements were taken away, and the original
conditions before the experiment were reinstated. They were
monitored in this state for 12 more weeks.
The major finding of the study was that almost regardless of the
experimental manipulation, worker production seemed to continually
improve. One reasonable conclusion is that the workers were happy to
receive attention from the researchers who expressed an interest in them.
Originally, the study was expected to last one year, but since the findings
were inexplicable when the researchers tried to relate the worker's efficiency
to manipulated physical conditions, the project was incrementally extended
to five years.
BEHAVIORAL APPROACH
Human relations movement focused on interpersonal relations and
overlooked the wider subject of organizational behavior. Organisational
behavior involves the study of attitudes, behavior and performance of
individuals and groups in organizational setting. Behavioral approach
includes the issue of organizational behavior. It is also known as human
resource approach because it stresses development of human beings for the
benefit of both the individual and the organisation.
The main propositions of behavioral science approach are as follows:
1. An organisation is a sociotechnical system
2. Individuals differ in terms of their attitudes, perceptions and value
systems. Therefore they react differently to the same situation.
3. People working in an organisation have their needs and goals which may
differ from the organisations needs and goals. Management should achieve
fusion between organizational goals and human needs.
4. A wide range of factors influence relations among people.
5. Peoples behavior as individuals may be different from their behavior as
members of a group.
6. Persons working together in an organisation form their own informal
groups. Such groups have their own norms, culture and communication
systems.
7. Informal groups exercise a significant influence on the attitudes, behavior
and performance of employees.
Thus behavioral approach is an extension and improvement of human
relations movement. It has made significant contribution towards the
development of management thought.
Feedback
People-oriented Definitions:
Management is the art of getting things done through and with people in
formally organized groups
Function-oriented Definitions:
MANAGERIAL ROLES
Henry Mintzberg has studied the work roles of the chief executive and has
categorized these roles into three areas. These areas are interpersonal
relationships, information processing and disseminating and decision
making. Each of these areas are further sub divided into various roles. These
roles are:
(B)
Information Processing
Decision Making
Because both are managers, both will plan, organize, lead and control but
how they do so will differ.
Since management is universally needed in all organisations, we have a
vested interest in improving the way organisations are managed. We interact
with organisations every single day of our lives.
Organizations that are well managed develop a loyal customer base, grow
and prosper. Those that are poorly managed find themselves with a declining
customer base and reduced revenues. By studying management one will be
able to recognize poor management and work to get it corrected. In addition
one will be able to recognize good management and encourage it, whether
its in an organisation with which one is simply interacting or whether its in
an organisation in which one is employed.
Rewards
Create a work environment in
which
organizational
members can work to the best
of their ability
Have opportunities to think
creatively
and
use
imagination.
Have opportunities to think
creatively
and
use
imagination.
Help others find meaning and
fulfillment
In work.
Support, coach, and nurture
others.
Work with a variety of people.
Challenges
Do hard work
Have to deal with a variety of
personalities.
Often have to make do with
limited resources.
Motivate workers in chaotic
and uncertain situations.
Successfully blend knowledge,
skills,
ambitions
and
experiences of a diverse work
group.
Success depends on others
work performance.
What might be called the "efficiency expert" school of management was for
the most part supplanted around the 1960s by a more "humanistic" approach,
whose classical exponent was the psychologist Abraham Maslow. The
changes in management thinking in this decade reflected the more educated
workforce and greater respect for democracy that grew out of World War II.
In the 1970s Robert Greenleaf invented Servant Leadership, and in the
1990s Peter Block carried this concept forward to Stewardship. These ideas
revolutionized the mental model for managers by suggesting that they
replace thinking about how to get people to do things with thinking about to
help people do things.
Best practice management concepts in the late 20th century also included
excellence and total quality management, reengineering, systems thinking,
cross functional teams, empowerment and flat organization charts, learning
organization, dialogue, reinventing work, and diversity. As knowledge in
general increased with "Internet speed," management thought, already
heavily influenced by psychological sciences, and received infusions from
numerous disciplines. Moreover, cross-fertilization between academia and
the business community created a vast increase in management related
research activity.
Some of these trends such as TQM and reengineering - seemed by 2000 to
have run their course. The permanent value of the new thinking underlying
them, however, should not be denied; and 21st century versions of these
movements should actually be welcomed.
Others trends such as learning and diversity progressed to the point
where "second generation" (learning organization) or "new" (diversity)
versions appeared. In the early 21st century, it was even easy to see the
development of a "third wave" in these well-established concepts.
Just as the 21st century has seen new types of organizations and new ways
of doing business arise, so, too, will there be new management trends, ideas,
and techniques. While running after every trendy idea is hardly a
recommendable strategy, the wise manager will learn, study, and apply the
best current thinking.
At the start of the 21st century, the following rate to be the most important
ideas regarding management:
Management is for everyone. As educational levels rise and information
technology accelerates, the distinction between "managers" and "workers"
will fade away and management knowledge will be everyone's
responsibility.
Management is for learners. As information becomes the chief product
of every business and as knowledge continues to explode, everyone will be a
learner and the manager's foremost task will to promote learning.
Management is based on communicating. As techniques for planning,
strategizing, decision-making, and problem solving become the common
province of everyone in the organization, the need for improving
communication will be paramount and managers will be increasingly using
dialogue and other communication tools.
Management is about change. As technology and information reshape all
our lives, change management will be "business as usual" and managers will
be change agents who guide everyone to find and embrace the best new
practices.
Management is broad based. As boundaries disappear within
organizations and in the world at large, the scope of management will grow
and managers will be organizational development experts, diversity experts,
facilitation experts, consultation experts and much else.
Chapter 1
END
CHAPTER
QUIZZES
Q5. Weber coined the term .to identify large organisations that operated
on a rational basis.
(a)Autocracy
(b)Diplomacy
(c)Bureaucracy
(b)Units
(c)Quantity
Q10.Who identified the three types of managerial roles, namely
interpersonal, informational and decision roles?
(a)Peter Drucker
(b)Henry Mintzberg
(c)Max Weber
Chapter - 2
Contents
2.2 Ethics
2.4 Values
TABLE
INDUCEMENTS AND CONTRIBUTIONS OF ORGANISATIONAL
STALEHOLDERS
Stakeholder
Contribution to the
Organisation
Inducement to
Contribute
INSIDE
Shareholders
Managers
Workforce
Dividends and
appreciation
Salaries, bonuses, status
and power
Wages, bonuses, stable
employment, and
promotion
OUTSIDE
Customers
Suppliers
Government
Unions
Community
General public
Outside stakeholders
Outside stakeholders are people who do not own the organisation, are not
employed by it, but do have some interest in it. Customers, suppliers, the
government, trade unions, local communities, and the general public are all
outside stakeholders.
vehicle. This reliability is a result of the use of component parts that meet
incredibly stringent quantity control standards. In addition, Japanese parts
suppliers are constantly improve their performance. The close relationship
between the large Japanese automakers and their suppliers is a stakeholder
relationship that pays long-term dividends for both parties. Realizing this, in
the last decade U.S. car manufacturers have also moved to establish strong
relationships with their suppliers to increase quality, and the reliability of
their vehicles has increased as result.
2.2 ETHICS
engaging in illegal acts. However an organisation that always follows the rules
and is known for its ethical business practices over and above strict legal
requirements will have a good reputation valuable asset that makes people
want to deal with it. Although unethical organisations might reap short
term benefits, they are penalized in the long run because eventually people
will refuse to deal with them.
Why Does Unethical Behavior Occur?
If there are good reasons for individuals and organisations to behave
ethically, why do we see so many instances of unethical behavior?
Lapses in Individual Ethics
In the theory, individuals learn ethical principles and codes of morality as
they mature. Ethics are learned from family, friends, religious institutions,
schools, professional associations, and other organisations. From their
experiences, people learn to differentiate right from wrong. However,
imagine that your father is a mobster, your other is a political terrorist, or
your family belongs to a warring ethnic or religious group. Brought up in
such a context, you may believe that it is ethical to do anything and to
perform any act - including murder to benefit your family, friends, or
group. In a similar way, individuals within an organisation may come to
believe that any action that promotes or protects the organisation is
acceptable, even if it does harm to others. That sort of thinking prompted the
Beech Nut management team to approve the sale of sugar water labeled as
apple juice.
Ruthless Pursuit of Self- Interest
We normally confront ethical issues when we weigh our personal interests
against the effects that our actions will have on others. Suppose you will be
promoted to vice president of your company if you can secure a $100
million contract, but that to get the contact, you must bribe the contractor
with $1 million. Your career and future will probably be assured if you
perform this act. What harm will it do? you ask yourself. Bribery is
common, and if you dont pay the million dollars, you are certain that
somebody else will. So what do you do? Research suggests that people who
believe they have the most at stake are the ones most likely to act
unethically. Similarly, it has been shown that organisations that are doing
badly economically and are struggling to survive are the ones most likely to
commit unethical and illegal acts such as price fixing or bribery, although
many other organisations will do so if they are given the opportunity.
Outside Pressure
Simply by increasing prices they can make all the money they want with the
products they already have.
The social costs of unethical behavior are hard to measure but can easily be
seen in the long run. They take the form of mismanaged organisations that
become less innovative and spend less and less on research and development
and more and more on advertising or managerial salaries. When new
competitors arrive who refuse play the game, the mismanaged organisation
starts to crumble.
4
5
6
7
2.4 Values
Values are so embedded that they can be inferred from peoples behavior and
their perception, personality and motivation. They generally influence their
behavior. Values are relatively stable and enduring. This is because of the
way in which they are originally learnt.
The values learnt can be divided into two broad categories: (i) terminal
values, and (ii) instrumental values Terminal values lead to ends to be
achieved, e.g., comfortable life, family security, self respect and sense of
accomplishment. Instrumental value; relate to means for achieving desired
ends, e.g., ambition, courage, honesty and imagination. Terminal values
reflect what person is ultimately striving to achieve, whereas instrumental
values reflect how the person gets there.
Instrumental
(means)
Comfortable life
Ambition
Sense of accomplishment
Courage
Family security
Honesty
Mature love
Helpfulness
Self- respect
Independence
wisdom
Imagination
Values
Types of Values
All port and his associates have categorized values into six types as follows:
sixth. This is very important from the point of view of understanding the
behavior of people. The fact that people in different occupations have
different value systems has led the progressive organisations to improve the
values- job fit in order to increase employee performance and satisfaction.
Sources of Values
Parents, friends, teachers and external reference group can influence
individual values. Indeed, a persons values develop as a product of learning
and experience in the cultural setting in which he lives. As learning and
experiences vary from one person to another, value differences are the
inevitable result. Not only the values but also their ranking in terms of
importance differs from person to person.
A person learns and develops values because of the following factors:
(i)
(ii)
(iii)
CHAPTER
(a)Moral
(b)Amoral
(c)Immoral
Q6.An ..audit involves the systematic assessment of conformance to
organizational ethical policies, an understanding of those policies and the
identification of serious deviations in conduct that require remedial action.
(a)Social
(b)Ethics
(c)Organisation
Q7.An organisations responsibility is towards its:
(a)Shareholders
(b)Stakeholders
(c)Employees
Q8.Which of the following refers to the ability of a corporation to relate its
operations and policies to the social environment in ways that are mutually
beneficial to the company and to the society.
(a)Social Responsibility
(b)Social Responsiveness
(c)Social Obligation
Q9.An organisations stakeholder refers to:
(a)Anyone who has an interest in the organization
(b)To the employees of the organization
(c)To the customers of the organization
Chapter 3
Bases of power
The bases of power can be classified as follows:
Coercive power
The coercive power base is defined by French and Raven as being
dependent on fear. One reacts to this power out of fear of the negative results
that might occur if one had failed to comply. It rests on the application, or
the threat of application, of physical sanctions such as the infliction of pain,
the generation of frustration through restriction of movement, or the
controlling by force of basic physiological or safety needs.
In the 1930s, when John Dillinger went into a bank, held a gun to a
tellers head, and asked for money, he was incredibly successful at getting
compliance with his request. His power base was coercive. A loaded gun
gives its holder power because others are fearful that they will lose
something that they hold dear their lives.
At the organizational level, A has coercive power over B if A can dismiss,
suspend, or demote B, assuming that B values his or her job. Similarly, if A
can assign B work activities that B finds unpleasant or treat B in a manner
that B finds embarrassing, A possesses coercive power over B.
Reward power
The opposite of coercive power is reward power. People comply with the
wishes or directives of another because doing so produces positive benefits;
therefore, one who can distribute rewards that others view as valuable will
have power over them. These rewards can be anything that another person
values. In an organizational context, we think of money, favourable
Legitimate power
In formal groups and organizations, probably the most frequent access to
one or more of the power bases is ones structural position. This is called
legitimate power. It represents the power a person receives as a result of his
or her position in the formal hierarchy of an organization.
Positions of authority include coercive and reward powers. Legitimate
power, however, is broader than the power to coerce and reward.
Specifically it includes acceptance by members of an organization of the
authority of a position. When school principals, bank presidents, or army
captains speak (assuming that their directives are viewed to be within the
authority of their positions), teachers, tellers and first lieutenants listen and
usually comply.
Expert power
Expert power is influence wielded as a result of expertise, special skill, or
knowledge. Expertise has become one of the most powerful sources of
influence as the work has become more technologically oriented. As jobs
Referent power
The last category of influence that French and Raven identified was referent
power. Its base is identification with a person who has desirable resources or
personal traits. If I admire and identify with you, you can exercise power
over me because I want to please you.
Referent power develops out of admiration of another and a desire to be like
that person. In a sense, then, it is a lot like charisma. If you admire someone
to the point of modelling your behaviour and attitudes after him or her, that
person possesses referent power over you. Referent power explains why
celebrities are paid millions of dollars to endorse products in commercials.
Marketing research shows that people like Bill Cosby, Elizabeth Taylor, and
Michael Jordan have the power to influence your choice of photo processors,
perfume and athletic shoes. With a little practice, you or I could probably
deliver as smooth a sales pitch as these celebrities, but the buying public
doesnt identify with you and me. In organizations, if you are articulate,
domineering, physically imposing, or charismatic, you hold personal
characteristics that may be used to get others to do what you want.
policies are mandatory and top management must be careful to apply them
consistently. Otherwise, politics can evolve as a primary competitive
approach in which empire building predominates. If this occurs, it would be
difficult to develop teamwork and cooperation among various units of the
organization
attached to the decision that they refuse to recognise when its time to
move on .In todays dynamic environment this type of thinking
doesnt work.
Practice the 5 whys. When the environment is highly uncertain, one
way to encourage good decision making is to get people to think more
broadly and deeply about the issues. Because of the intense time
pressure that managers face, it may be tempting to do just a superficial
analysis. The five whys approach suggests that employees learn to
ask why not just once, but five times. Asking the first time, why this
is happening usually results in a superficial explanation for the
problem; subsequent whys force decision makers to probe more
deeply into the causes of the problem and possible solutions.
Be an effective decision maker. An effective decision-making process
has these six characteristics (1) It focuses on whats important;(2) Its
logical and consistent;(3) It acknowledges both subjective and
objective thinking and blends analytical with intuitive thinking;(4) It
requires only as much information and analysis as is necessary to
resolve a particular dilemma;(5) It encourages and guides the
gathering of relevant information and informed opinion; and (6) Its
straightforward, reliable, easy to use, and flexible.
CHAPTER 3
END CHAPTER QUIZZES
Q1.gives managers access to more information and knowledge.
(a)Individual decision making
(b)Group decision making
(c)Operational decision making
Q2.In which of the following steps of the decision making process
Is the brain storming technique used?
(a)Generating alternative solutions
(b)Evaluating alternatives
(c)Selecting an alternative
Q3..is the first step in the decision making process.
(a)Identifying resources and constraints
(b)Determining the problem
(c)Selecting an alternative
Q4..power is based on the influencers ability to punish the influence
for not meeting the requirements.
(a)Referent
(b)Coercive
(c) Expert
Q5refers to the desire of the influencee to identify with
or imitate the influencer.
(a)Expert Power
(b)Referent Power
(c)Legitimate Power
Q6.Which of the following powers stems from a positions
Place in a managerial hierarchy and the authority vested in the position.
(a)Legitimate Power
(b)Reward Power
(c)Expert Power
Q7.A superior officer evaluates the performance of his subordinates
in order to decide who should be promoted. What type of power can
the superior be said to have in this case?
(a)Reward Power
(b)Coercive Power
(c)Expert Power
Q8.refers to the ability of individuals or groups to influence
The beliefs or actions of other individuals or groups
(a)Discipline
(b)Power
(c)Responsibility
Q9..describes the process by which a course of action is
Selected to deal with a specific problem
(a)Decision making
(b)Strategic Planning
(c)Goal setting
Q10.An employee of ABC Company went on leave for a month
without informing his superiors. When he came back he was fired from
his job by his superior. Which type of power did the superior
use in sacking the employee.
(a)Coercive
(b)Reward
(c)Expert
Chapter 4
4.1 Motivation
4.2 Motivational Theories
4.3 Concept of Organisation structure
4.4 Components of Organisation Structure
4.5 Types of Organisation Structure
4.6 Dimensions of Organisation Structure
4.7 Organisational Design
4.8 Organisational Culture Concept & Dimensions
4.9 Level of organizational Culture
4.10 Organisation Culture at NIIT
4.1 Motivation
Motivation is a process that starts with a physiological or psychological need
that activates a behavior or a drive that is aimed at a goal.
Every employee is expected to show increased and qualitative productivity
by the manager. To achieve this behavior of the employee is very important.
The behavior of the employees is influenced by the environment in which
they find themselves. Finally, an employee's behavior will be a function of
that employee's innate drives or felt needs and the opportunities he or she
has to satisfy those drives or needs in the workplace
If employees are never given opportunities to utilize all of their skills, then
the employer may never have the benefit of their total performance. Work
performance is also contingent upon employee abilities. If employees lack
the learned skills or innate talents to do a particular job, then performance
will be less than optimal. A third dimension of performance is motivation.
Motivation is the act of stimulating someone or oneself to get desired
course of action, to push right button to get desired reactions.
The following are the features of motivation:
1
2
3
4
5
6
7
8
9
MOTIVATIONAL FACTORS
There are several factors that motivate a person to work. The motivational
factors can be broadly divided into two groups:
1 I. MONETARY FACTORS:
0 Salaries or wages:
Salaries or wages is one of the most important
motivational factors. Reasonable salaries must be paid on
time. While fixing salaries the organization must consider
such as :
1 Cost of living
2 Company ability to pay
3 Capability of company to pay etc,
1
2 Bonus:
It refers to extra payment to employee over and above salary
given as an incentive. The employees must be given adequate
rate of bonus.
1 Incentives:
2 The organization may also provide additional incentives such as
medical allowance, educational allowance, hra ,allowance, etc.
1 Special individual incentives:
The company may provide special individual incentives. Such
incentives are to be given to deserving employees for giving
valuable suggestions.
1 II. NON MONETARY FACTORS:
0
1 Status or job title:
By providing a higher status or designations the employee must
be motivated. Employees prefer and proud of higher
designations.
1 Workers participation:
Inviting the employee to be a member of quality circle, or a
committee, or some other form of employee participation can
also motivate the work-force.
1 Cordial relations: Good and healthy relations must exist
throughout the organization. This would definitely motivate
the employees.
1 Good superiors: Subordinates want their superiors to be
intelligent, experienced, matured, and having a good
personality. In fact, the superior needs to have superior
knowledge and skills than that of his subordinates. The very
presence of superiors can motivate the subordinates.
2
3 Other factors:
There are several other factors of motivating the employees:
1
2
3
4
5
6
Higher efficiency
Reduce absenteeism.
Reduces employee turnover.
Improves a corporate image.
Good relations.
6
7
8
9
Improved morale.
Reduced wastages and breakages.
Reduced accidents.
Facilitates initiative and innovation.
Money as a motivator
It is normally believed that money acts as a motivator. In general the role of
money as a motivator depends upon certain factors:
1 Money fails to motivate people, when there is no direct
relationship between reward and effort.
2 Economic conditions of people influence the Importance of
money. For poor person, the value of certain amount of money is
quite high as compared to rich.
1 Money is a significant motivator at lower level of employees
level however money may not be a significant factor for senior
executives who have already fulfilled their lower level needs.
2 Employees are concerned not only with the amount of money
paid to them, but it should be fair and equitable as paid to that of
other employees of same level or status.
1 Social attitudes towards money and wealth also decide the
motivation to earn more and more.
has a felt need. This felt need sets up both psychological and
physical tensions that manifest themselves in overt behaviors
directed at reducing those tensions (getting something to eat).
Once the hunger is sated, the tension is reduced, and the need
for food ceases to motivate. At this point (assuming that other
physiological requirements are also satisfied) the next higher
order need becomes the motivating need.
Safety needs include a desire for security, stability, dependency,
protection, freedom from fear and anxiety, and a need for structure,
order, and law.. In the workplace this needs translates into a need for
at least a minimal degree of employment security; the knowledge that
we cannot be fired on a whim and that appropriate levels of effort and
productivity will ensure continued employment. Thus, safety needs -the needs for shelter and security -- become the motivators of human
behavior.
Social needs include the need for belongingness and love.
2
After social needs have been satisfied, ego and esteem needs become
the motivating needs.
Esteem needs include the desire for self-respect, self-esteem, and the
esteem of others. When focused externally, these needs also include
the desire for reputation, prestige, status, fame, glory, dominance,
recognition, attention, importance, and appreciation.
3
Alderfer's Hierarchy of Motivational Needs: ERG Theory
Clayton Alderfer reworked Maslow's Need Hierarchy to align it more
closely with empirical research. Alderfer's theory is called the ERG theory -Existence, Relatedness, and Growth.
1 Existence refers to our concern with basic material existence
requirements; what Maslow called physiological and safety needs.
2 Relatedness refers to the desire we have for maintaining
interpersonal relationships; similar to Maslow's social/love need,
and the external component of his esteem need.
3 Growth refers to an intrinsic desire for personal development;
the intrinsic component of Maslow's esteem need, and selfactualization
same time. ERG theory does not assume a rigid hierarchy where a lower
need must be substantially satisfied before one can move on.
Alderfer also deals with frustration-regression. That is, if a higher-order need
is frustrated, an individual then seeks to increase the satisfaction of a lowerorder need.
According to Maslow an individual would stay at a certain need level until
that need was satisfied. ERG theory counters by noting that when a higherorder need level is frustrated the individuals desire to increase a lower- level
need takes place. Inability to satisfy a need for social interaction, for
instance, might increase the desire for more money or better working
conditions. So frustration can lead to a regression to a lower need.
In summary, ERG theory argues, like Maslow, that satisfied lower- order
needs lead to the desire to satisfy higher-order needs; but multiple needs can
be operating as motivators at the same time, and frustration in attempting to
satisfy a higher- level need can result in regression to a lower- level need.
Alderfer's Hierarchy of Motivational Needs
The
determinants
of
job
4 salary
5 interpersonal relations
6 working conditions
From the results Herzberg concluded that the replies people gave
when they felt good about their jobs were significantly different from
the replies given when they felt bad. Certain characteristics tend to be
consistently related to job satisfaction and others to job dissatisfaction.
Intrinsic factors, such as work itself, responsibility and achievement
seem to be related to job satisfaction. Respondents who felt good
about their work tended to attribute these factors to themselves. On
the other dissatisfied respondents tended to cite extrinsic factors such
as supervision, pay, company policies and working condition.
Herzberg proposed that his findings indicated the existence of a dual
continuum: the opposite of satisfaction is No satisfaction and the
opposite of Dissatisfaction is No Dissatisfaction.
According to Herzberg, the factors leading to Job satisfaction are
separate and distinct form those that lead to job dissatisfaction.
Therefore, managers who seek to eliminate factors that can create job
dissatisfaction may bring about peace but not necessarily motivation.
They will be placating their workforce rather than motivating them.
As a result, conditions surrounding the job such as quality of
supervision, pay , company policies, physical working conditions
relations with others and job security were characterized by Herzberg
as hygiene factors, when theyre adequate, people will not be
dissatisfied ; neither will they be satisfied. If we want to motivate
people on their jobs, Herzberg suggested emphasizing factors
associated with the work itself or to outcomes directly derived form it,
such as promotional opportunities, opportunities for personal growth,
recognition, responsibility and achievement. These are the
characteristics that people find intrinsically rewarding.
CONCEPT
Organisation structure may be defined as the established pattern of
relationships among the components of the organisation. Organisation
structure in this sense refers to the network of relationships among
individuals and positions in an organisation. Jennifer and Gareth have
defined organisation structure as the formal system of task and reporting
relationships that controls, coordinates and motivates employees so that they
cooperate and work together to achieve an organisations goals. In fact
organisation structure describes the organisation framework. Just as human
beings have skeletons that define their parameters, organisations
have structures that define-theirs. It is like the architectural plan of a
building. Just as the architect
considers various factors like cost, space, special features needed etc. while
designing a good structure, the managers too must look into factors like
benefits of specialisation, communication problems, problems in creating
authority levels etc., before designing the organisation structure.
The manager determines the work activities to get the job done, writes job
descriptions, and organises people into groups and assigns them to superiors.
He fixes goals and deadlines and establishes standards of performance.
Operations are controlled through a reporting system. The whole structure
store, for instance may follow a structure that leaves pricing, sales
promotion and other matters largely up to individual departments to ensure
that various departmental conditions are considered.
Proper Balancing: Organisation structure creates the proper balance and
emphasizes on coordination of group activities. Those more critical aspects
for the success of the enterprise may be given higher priority in the
organisation. Research in a pharmaceutical company, for instance, might be
singled out for reporting to the general manager or the managing director of
the company. Activities of comparable importance might be given, roughly
equal levels in the structure to give them equal emphasis.
Stimulating Creativity: Sound organisation structure stimulates creative
thinking and initiative among organisational members by providing well
defined patterns of authority. Everybody knows the area where he specialises
and where his efforts will be appreciated.
Encouraging Growth: An organisation structure provides the framework
within which an enterprise functions. If it is flexible, it will help in meeting
challenges and creating opportunities for growth. A sound organisation
structure facilitates growth of the enterprise by increasing its capacity to
handle increased level of activity.
Making use of Technological Improvements: A sound organisation
structure which is adaptable to change can make the best possible use of
latest technology. It will modify the existing pattern of authority
responsibility relationships in the wake of technological improvements. In
short, existence of good organisation structure is essential for better
management. Properly designed organisation can help in improving team
work and productivity by providing a framework within which the people
can work together most effectively. Therefore, an organisation structure
should be developed according to the needs of the people in the organisation.
COMPONENTS OF ORGANISATION STRUCTURE
Organisation structures influence the division of the tasks, grouping of
activities, coordinating the activities and the overall accomplishment of the
through other people. The organisations of today are not only large but also
complex in character. No manager can claim to have all the skills and
expertise to perform all the diverse kinds of jobs. Again, large scale business
activities are not confined to one place. It may have several branches and
units at several places. Delegation becomes a necessity for running these
branches. An organisation is continuity. Managers may go and come but the
organisation continues. Delegation provides continuity of operations in the
organisation. The process of delegation helps managerial development in an
organisation.Thus, delegation is important for any organisation because it
reduces the burden of the managers and leaves him free to look after
important matters of the organisation. It is a method by which subordinates
can be developed and trained to take up higher responsibilities. It provides
continuity to the organisation and creates a healthy organisational climate by
creating better understanding among the employees.
The major benefits of delegation are:
Delegation leads to professionalism.
Managerial decisions may involve creativeness and innovativeness.
The competitive environment may be created in the organisation.
The mangers may take quick decisions.
The limitations of delegation of authority are:
The managers may resist delegating authority.
The managers may require training for taking decisions and the costs of
training may be higher.
Every person may not be able to take high level of decision in the effective
way.
The administrative costs may also increase.
Despite these limitations, delegation of authority enhances efficiency in the
organisation.
Departmentation
The division of labour divides the jobs into smaller activities. In order to
coordinate these activities, they are grouped together. The basis by which
these activities are grouped together are known as departmentalization. It
may be defined as the process of forming departments or grouping activities
of an organisation into a number of separate units for the purpose of efficient
functioning. This term vary a great deal between different organisations. For
example, in business undertaking, terms are division, department and
section; in Government these are called branch, department and section; in
military, regiment, battalion groups and company.
The impact of departmentation is a delineation of executive responsibilities
and a grouping of operating activities. Every level in the hierarchy below the
apex is departmentalized and each succeeding lower level involves further
departmental differentiation.
The major benefits of departmentalization are:
Specialisation: Departmentation leads to the benefits of specialisation as
various organisational activities are grouped according to their relation with
the specific functions or objectives. Every departmental manager specialises
in the tasks assigned to him.
Administrative control: Departmentation helps in effective managerial
control because the standards of performance for each and every department
can be laid down precisely. Every department has a specific objective. This
also facilitates keeping expenditure within limits.
Fixation of responsibility: Since organisation work is divided into
manageable units, and authority and responsibility are precisely defined, it is
easier to fix the accountability of different managers for the performance of
various tasks.
Freedom or autonomy: The departments created through departmentation
are semi-autonomous units. Their heads are given a sufficient degree of
authority to run their departments. This increases the efficiency of the
departments.
The formulation and implementation of new rules may face great resistance
by the employees. Despite these limitations formalization has been widely
used in the organisation. The formalized structure helps in smooth
functioning of the organisation. Well defined jobs and relationships enhance
the efficiency of the organisation.
Centralization: There are some organisations, where top management
makes all the decisions and middle and lower level managers merely
implement the decisions taken by the top management. At the other extreme,
there are some organisations in which decisions are made at all levels of
management. The first case fits into the centralized structure where as the
second one is highly decentralized. One of the fourteen principles of Henry
Fayol happens to be centralization. According to him, decreasing the role of
subordinates in decision-making is centralization; increasing their role is
decentralization. Fayol believed that managers should retain final
responsibility but at the same time give their subordinates enough authority
to do their jobs properly. The problem is to find the proper degree of
centralization in each case. Thus, centralization refers to the degree to which
decision making is centralized in the organisation. In centralization little
delegation of authority is the rule; power and discretion are concentrated in a
few executives. Control and decision-making reside at the top levels of
management. However, absolute centralization is untenable because it would
mean that subordinates have no duties, power or authority. Centralization
may be essential in small organisation to survive in a highly competitive
world. But as the organisation becomes more complex in terms of increasing
size, interdependence of work-flow, complexity of tasks and spatial physical
barriers within and among groups, a function requisite for efficiency is to
move decision-making centers to the operating level. Thus, the larger the
size of an organisation, the more urgent is the need for decentralization. This
does not mean that decentralization is good and centralization is bad. On the
other hand, decentralization is the systematic effort to delegate to the lowest
levels all authority except that which can be exercised at central points. It is
the pushing down of authority and power of decision-making to the lower
levels of organisation. The centers of decision-making are dispersed
throughout the organisation. The essence of decentralization is the
control. John Invancevich and Michael Matteson have analysed that the high
formalization reflects high specialisation, delegated authority, functional
departments and wide span of control. The high centralization reflects the
high specialisation, centralized authority, functional departments and wide
span of control. The high complexity reflects high specialisation, delegated
authority, territorial, customer and product departments and narrow spans of
control. The low formalization, centralization and complexity reflect the
opposite characteristics.
The Team Structure: The team structure uses the team as the central device
to coordinate work activities. Robins defines work team as a group whose
individual efforts result in a performance greater than the sum of the
individual inputs. The primary characteristics of the team structure are that it
breaks down departmental barriers and decentralizes decision making to the
level of the work team. One of the prerequisites of the team structure is that
the employees have to be both generalists as well as specialists. In India
some of the well known multinationals like Xerox, Motorola and the IT
giant H.P uses cross functional teams.
The Virtual Organisation: In the age of specialisation no organisation can
survive without outsourcing. The core activity remains with the main
organisation whereas parts are performed by others. The virtual organisation
(also known as network or modular organisation) goes a step ahead by
outsourcing major business function. In structural terms the virtual
organisation is highly centralized, with little or no departmentation. When
large organisations use virtual structure, they frequently use it to outsource
manufacturing activities. This is the reason why do some of the very large
organisations do business of cores of rupees without having manufacturing
activities.
The Boundaryless Organisation: The credit for coining the term boundary
less organisation goes to Mr. Jack Welch of General Electrics (GE). He
wanted GE to become boundary less organisation. The type of organisation,
which seeks to eliminate the chain of command, have limitless span of
control and replace departments with empowered teams.
By removing vertical boundaries, management flattens the hierarchy, status,
and ranks are minimized. G.E. has been using cross-hierarchical teams,
participative decision making practices and 360-degree performance
appraisal system to break vertical boundaries. It is the networked computers
(with the help of internet and intra-net), which makes the boundary less
organisation possible by allowing people to communicate across interorganisational and intra-organisational boundaries. Electronic Mail for
example permits hundreds of employee to share information simultaneously
and allows ranks and file workers to communicate directly with senior
executives.
Organisational and Mechanistic Designs
There are two extreme models of organisational design i.e., mechanistic
model and organic model. Robins has identified following characteristics of
mechanistic and organic model of
Organisational Design:
Mechanistic Model: The major features of mechanistic model are as follow:
Extensive departmentalization
High formalization
A limited information network; and
Centralization
The activities are grouped together based on the strategies of the
departmentation like functional, division, adaptive; etc. There are
standardized policies, procedures, rules and decision making styles. The
flow of information is very limited. The decision making style is highly
centralized. Thus, the mechanistic model endeavors to achieve efficiency
because of its structural characteristics.
Organic Model: The major features of organic model are as follow:
Cross hierarchical and cross functional teams
Low formalization
Comprehensive information network
High participation in decision making
In the organic model teams emerge from different hierarchy and in the
organic model teams emerge from different hierarchy and functional areas.
The tasks, rules, procedures and decision making are in a fluid situation and
changeable. The information flow across the organisation. There exists
CHAPTER 4
END CHAPTER QUIZZES
Q1. Who proposed that human needs develop in a hierarchical manner?
(a) Abraham Maslow
(b) Elton Mayo
(c) Chris Argyris
Q2. The ..of an organization provides guidelines for its policies and
practices.
(a)Corporate Culture
(b)Corporate rules
(c)Corporate program
Q3.Which of the following structures is a type o departmentalization that
superimposes a horizontal set of divisional reporting relationships on a
hierarchical structure?
(a)Matrix
(b)Hybrid
(c)Divisional
Q4.is a type of departmentation in which positions are grouped
according to their main functional areas.
(a)Matrix
(b)Divisional
(c)Functional
Q5organization structure has a wide span of control and only a few
hierarchical levels
(a)Tall
(b)Narrow
(c) Flat
Q6.Organisation Culture is an aspect of the .environment of the
organization.
(a)General
(b)Internal
(c)Task
Q7.The force that energizes behavior, gives direction to behavior and
underlies the tendency to persist is known as
(a)Motivation
(b)Morale
(c) Drive
Q8.In the ERG theory..need pertain to the desire to be creative,make
useful and productive contributions and have opportunities for personal
development.
(a)Growth
(b)Power
(c)Existence
Q9.
.,
proposed
by
Douglas
McGregor,has
positive,dynamic,flexible and optimistic view of employees.
(a) Theory X
(b) Theory Y
(c) Theory Z
Q10. In Maslows hierarchy of needs,..refer to the desire to become
what one is capable of becoming.
(a)Esteem needs
(b)Self actualization needs
(c)Social needs
Chapter 5
Contents
(i)
3.
4.
5.
6.
7.
4. People are different from each other. They vary in abilities, nature,
personality; religion etc. people are also influenced by social economic and
environmental factors.
Human resources have to be acquired, developed and motivated to give
higher performances and also must be retained.
5.
What are the emerging challenges of HRM? The world order is changing
dramatically and is in the process of complete transformation. The
impossible things of yesterdays have become possible today and the
impossible things of today will become possible tomorrow. That is why it is
said that change is the only permanent aspect of nature. The concept of selfsufficient nations is losing importance and the concept of Global Village is
emerging. Management of economics and organizations is bound to cope up
with the radical transformation by developing new techniques and practices
in the global perspective after carefully analyzing the real challenges being
faced by the professional managers.
Modern organizations are faced with the following environmental
challenges:
The human resource manager will have to ensure that the mission of
an organization becomes the mission of each person working in the
organization and the objectives are set to fulfill the same. Objectives
are specific aims which must be in line with the mission of the
organization and all the actions of each person must be consistent with
the objective defined.
2. Building Core Competency
The human resource manager has a great role to play in developing core
competency by the firms. A core competence is a unique strength of an
organization which may not be shared by others. This may be in the form
of human resources, marketing capability, or technological capability. If
the business is organized on the basis of core competency, it is likely to
generate competitive advantage. Because of this reason, many
organizations have restructured their businesses by divesting those
businesses which do not match core competence or acquiring those
businesses which fit core competency such as Ambuja acquiring cement
companies and Reliance Industries acquiring yarn companies.
Organization of business around core competence implies leveraging the
limited resources of a firm. It needs creative, courageous and dynamic
leadership having faith in the organizations human resources.
4. Facilitation
of Change
The work-force in future will comprise more of educated and selfconscious workers. They will ask for higher degree of participation and
avenues for self-fulfillment. Moreover, the proportions of professional and
technical employees will increase in relation to blue-collar workers. The
ratio of female employees in the total workforce will also rise. Integration of
women within managerial ranks will itself be a problem. Money will no
longer be the sole motivating force for majority of the workers. Nonfinancial incentives will also play an important role in motivating the
workforce. In short, human resources will be treated as assets which will
appear in Balance Sheets of business organizations in future.
Two important trends among the employees which need mention briefly
discussed below:
with the help of technical knowledge will be required for this purpose. Top
management will become more actively involved in the development of
human resources.
8. Total
1
Forecasting future manpower requirements, where we use
mathematical projections you might have studied in business economics
and quantitative techniques paper, to project trends in the economic
environment and development of the industry.
1
Making an inventory of present manpower resources and
assessing the extent to which these resources are employed optimally.
Procuring competent personnel requires positive recruitment efforts and the
development of a variety of recruitment sources. These sources must
consider not only the nature and conditions of the external labor market, but
also the presence of qualified personnel who are available to fill vacancies
through internal promotions or transfers.
1
Anticipating manpower problems by projecting present resources
into the future and comparing them with the forecast of requirements to
determine their adequacy, both quantitatively and qualitatively; and
2
Planning the necessary programmes of requirement, selection,
training, development, utilization, transfer, promotion, motivation and
compensation to ensure that future manpower requirements are properly
met.
Thus, we can summarize that: HRP is a kind of risk management. It
involves realistically appraising the present and anticipating the future (as
far as possible) in order to get the right people into right jobs at the right
time. (Reiterating the view of Geisler).
Significance of Human Resource Planning:
Human Resource Planning is a highly important and useful activity .If
used properly; it offers a number of benefits:
1. Reservoir of Talent. The organisation can have a reservoir of talent
at any point of time. People with requisite skills are readily
available to carry out the assigned tasks.
2. Prepare People for Future. People can be trained, motivated and
developed in advance and this helps meeting future needs for highquality employees quite easily. Likewise, manpower shortages can
also be met comfortably through proper human resource planning.
3. Expand or Contract. If the organisation wants to expand its scale of
operations, it can go ahead easily. Advance planning ensures a
continuous supply of people with requisite skills who can handle
challenging jobs easily.
4. Cut Costs. Planning facilitates the preparation of an appropriate
manpower budget for each department or division. This in turn
helps
in controlling manpower
costs
by avoiding
shortages/excesses in manpower supply. The physical facilities
such as canteen, quarters, school, medical help etc, can also be
planned in advance.
5. Succession Planning. Human Resource Planning as pointed out
previously prepares people for future challenges. The stars can be
picked up and kept ready for further promotions whenever they
arise. All multinational companies for example, have this policy of
having a hot list of promising candidates prepared in advance.
Such candidates are rolled over various jobs and assessed and
assisted continuously. When the time comes, such people switch
hats quickly and replace their respective losses without any
problem.
5.7 Recruitment
According to Edwin B.Flippo, Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the
organisation. It is a linking activity that brings together those offering jobs
and those seeking jobs.
Dale S.Beach observed, Recruitment is the development and maintenance
of adequate manpower resources. It involves the creation of a pool of
available labour upon whom the organisation can draw when it needs
additional employees.
There are two broad methods of Recruitment which are as follows:
1. External Recruitment
2. Internal Recruitment
External Recruitment
Every enterprise has to tap external sources for various positions. Running
enterprises have to recruit employees from outside for filling the positions
whose specifications cannot be met by the present employees, and for
meeting the additional requirements of manpower.
their organisation. Also, the office bearers of trade unions are often aware of
the suitability of candidates. Management can inquire these leaders for
suitable jobs. In some organizations these are formal agreements to give
priority in recruitment to the candidates recommended by the trade union.
RECRUITMENT
AT
FACTORY
GATE
Unskilled workers may be recruited at the factory gate these may be
employed whenever a permanent worker is absent. More efficient among
these may be recruited to fill permanent vacancies.
Internal recruiting is the search for in-house employees who have the
abilities and the attitudes to fulfill the requirements needed and to help the
organization achieve its objectives.
Although internal recruiting is often neglected, and the Internet hardly offers
any useful discussions for this recruiting strategy, it is crucial not to overlook
this strategy. The discussion of internal recruiting provides the advantages
and disadvantages of this recruiting technique in comparison to the external
method.
Advantages of internal recruiting:
5.8 SELECTION
Nature and Purpose of Selection
Selection involves a series by which the candidates are screened for
choosing the most suitable persons for vacant posts. The process of
selection leads to employment of persons who possess the ability and
qualifications to perform the jobs which have fallen vacant in an
organization. It divides the candidates for employment into two
categories, namely, those who will be offered employment and those
who will not be. This process should be called rejection since more
candidates may be turned away than employed. That is why, selection is
frequently described as a negative process in contrast with the positive
nature of recruitment.
The most basic purpose of the selection process is to choose right type of
candidates to man various positions in the organization. In order to
achieve this purpose, a well-organized selection procedure involves many
steps and at each step, unsuitable candidates are rejected. In other words,
The benefits of selecting right kinds of people for various jobs are as
follows:
(i)
Recruitment Vs Selection
Both recruitment and selection are the two phases of the employment
process. The differences between the two are:
1. Recruitment is the process of searching the candidates for
employment and stimulating them to apply for jobs in the
organisation WHEREAS selection involves the series of steps by
which the candidates are screened for choosing the most suitable
persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of
candidates to enable the selection of best candidates for the
organisation, by attracting more and more employees to apply in
the organisation WHEREAS the basic purpose of selection process
is to choose the right candidate to fill the various positions in the
organisation.
5.9 TRAINING
Training is a process of learning a sequence of programmed behavior. It is
the application of knowledge & gives people an awareness of rules &
procedures to guide their behavior. It helps in bringing about positive change
in the knowledge, skills & attitudes of employees.
Thus, training is a process that tries to improve skills or add to the existing
level of knowledge so that the employee is better equipped to do his present
job or to mould him to be fit for a higher job involving higher
responsibilities. It bridges the gap between what the employee has & what
the job demands.
Since training involves time, effort & money by an organization, so an
organization should to be very careful while designing a training program.
The objectives & need for training should be clearly identified & the method
or type of training should be chosen according to the needs & objectives
established. Once this is done accurately, an organization should take a
feedback on the training program from the trainees in the form of a
structured questionnaire so as to know whether the amount & time invested
on training has turned into an investment or it was a total expenditure for an
organization.
Training is a continuous or never ending process. Even the existing
employees need to be trained to refresh them & enable them to keep up with
the new methods & techniques of work. This type of training is known as
Refresher Training & the training given to new employees is known as
strategies to be sure that the employees in the organization have the required
Knowledge, Skills, and Attributes (KSAs) based on the future KSAs
requirements at each level.
Significance of training
To impart to the new entrants the basic knowledge & skills they
need for an intelligent performance of definite tasks.
To prepare employees for more responsible positions.
To bring about change in attitudes of employees in all directions.
To reduce supervision time, reduce wastage & produce quality
products. To reduce defects & minimize accident rate.
To absorb new skills & technology. Helpful for the growth &
improvement of employee's skills & knowledge.
METHODS OF TRAINING:
The most widely used methods of training used by organizations
are classified into two categories: On-the-Job Training & Off-theJob
Training.
ON-THE-JOB TRAINING is given at the work place by
superior in relatively short period of time. This type of training is
cheaper & less time-consuming. This training can be imparted by
basically
four
methods:
Coaching is learning by doing. In this, the superior guides his
sub-ordinates & gives him/her job instructions. The superior
points out the mistakes & gives suggestions for improvement.
Job Rotation: - In this method, the trainees move from one job to
another, so that he/she should be able to perform all types of jobs.
E.g. In banking industry, employees are trained for both back-end
& front-end jobs. In case of emergency, (absenteeism or
resignation), any employee would be able to perform any type of
job.
OFF THE JOB TRAINING: - is given outside the actual work
place.
Lectures/Conferences:- This approach is well adapted to convey
specific information, rules, procedures or methods. This method is
useful, where the information is to be shared among a large
number of trainees. The cost per trainee is low in this method.
Films: - can provide information & explicitly demonstrate skills
that are not easily presented by other techniques. Motion pictures
are often used in conjunction with Conference, discussions to
clarify & amplify those points that the film emphasized.
Simulation Exercise: - Any training activity that explicitly places
the trainee in an artificial environment that closely mirrors actual
working conditions can be considered a Simulation. Simulation
STRAIGHT
RANKING
METHOD
This is one of the oldest and simplest techniques of performance
appraisal. In this method, the appraiser ranks the employees from the
PAIRED
COMPARISON
A better technique of comparison than the straight ranking method,
this method compares each employee with all others in the group, one
at a time. After all the comparisons on the basis of the overall
comparisons, the employees are given the final rankings.
4.
CRITICAL INCIDENTS
METHODS
In this method of performance appraisal, the evaluator rates the
employee on the basis of critical events and how the employee
behaved during those incidents. It includes both negative and positive
points. The drawback of this method is that the supervisor has to note
down the critical incidents and the employee behaviour as and when
they occur.
5.
FIELD
REVIEW
In this method, a senior member of the HR department or a training
officer discusses and interviews the supervisors to evaluate and rate
their respective subordinates. A major drawback of this method is that
it is a very time consuming method. But this method helps to reduce
the superiors personal bias.
6.
CHECKLIST
METHOD
The rater is given a checklist of the descriptions of the behaviour of
the employees on job. The checklist contains a list of statements on
the basis of which the rater describes the on the job performance of
the employees.
7.
GRAPHIC RATING
SCALE
In this method, an employees quality and quantity of work is assessed
in a graphic scale indicating different degrees of a particular trait. The
factors taken into consideration include both the personal
characteristics and characteristics related to the on-the-job
performance of the employees. For example a trait like Job
Knowledge may be judged on the range of average, above average,
outstanding or unsatisfactory.
8.
FORCED
DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator
is asked to distribute the employees in some fixed categories of
ratings like on a normal distribution curve. The rater chooses the
appropriate fit for the categories on his own discretion.
Modern Methods:
Modern Methods were devised to improve upon the traditional methods.
Modern methods attempt to remove the short comings of the old methods
such as subjectivity, bias etc. Some of the modern methods are:
1.
BEHAVIORALLY
ANCHORED
RATING
SCALES
2..Management By Objectives(MBO)
The concept of Management by Objectives (MBO) was first given by
Peter Drucker in 1954. It can be defined as a process whereby
the employees and the superiors come together to identify
common goals, the employees set their goals to be achieved, the
standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action
to
be
followed.
The essence of MBO is participative goal setting, choosing course
of actions and decision making. An important part of the MBO is
the measurement and the comparison of the employees actual
performance with the standards set. Ideally, when employees
themselves have been involved with the goal setting and the
choosing the course of action to be followed by them, they are
more likely to fulfill their responsibilities.
THE MBO PROCESS
Realistic
Time bound
The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.
The focus is on future rather than on past. Goals and standards are set
for the performance for the future with periodic reviews and feedback.
1.
2.
3.
4.
Self
Superiors
Subordinates
Peer
appraisal
appraisal
appraisal
appraisal.
5.
HUMAN
RESOURCE
ACCOUNTING
METHOD
CHAPTER 5
END CHAPTER QUIZZES
Q1is the organization function of planning for human resource needs,
recruiting and training candidates and evaluating their performance.
(a)Resource Management
(b)Human Resource Management
(c) Manpower Management
Q2.Which of the following involves estimating the size and makeup of the
future workforce and helping the organization acquire the right number and
right kind of people when they are needed.
(a)Human Resource Planning
(b) Human Requirements Planning
(c)Work Force Planning
best
meet
the
(a)Staffing
(b)Recruitment
(c)Selection
Q6.Job rotation is an.training process.
(a)On the Job
(b)Off the Job
(c)None of the above
Q7..is also known as a multirater feedback approach of performance
appraisal.
(a)360-Degree
(b)MBO
(C)180-Degree
Q8.MBO was first suggested by:
(a)Peter Drucker
(b)Henry Fayol
(c)F.W Taylor
Q9.Advertisement is asource of recruitment
(a)External
(b)Internal
(c)Both the above
Q10. Comparing an individuals job performance against standards or
objectives developed for the individuals position is known as..
(a) Job appraisal
(b) Evaluation
(c) Performance appraisal
Bibliography
1. Singh B.P.,Chhabra T.N,2004,Organisation Theory and Behavior,
Dhanpat Rai & Co. (Pvt.) Ltd.
2. Robbins S., Coulter M,2005 ,Management ,Prentice Hall of India Pvt.
Ltd.
3. Chhabra T.N,2005,Human Resource Management ,Concepts and Issues
Dhanpat Rai &Co.(P)Ltd.
4.Rao VSP,2000,Human Resource Management Text and Cases,
Excel Books
5.Shukla M,2006,Understanding Organisations:Organisational Theory
And Practices in India.PHI
6. Aggarwal Tanuja,2007,Strategic Human Resource Management.
Oxford University Press.
7. Barat, N.1998, Emerging Issues in Management, Excel Books ,India
ASSIGNMENT A
Q1. What do you understand by administrative management theory? How is
it different from scientific management theory?
Q2. Satisfying the claims of shareholders should be the paramount concern
of a company. Discuss the arguments for and against this statement.
Q3.Discuss the factors that affect ethical and unethical behavior.
Q4. On what grounds can you suggest that all business houses must assume
social responsibility?
Q5. What is power? Explain the various sources of power giving suitable
example.
ASSIGNMENT B
CASE STUDY
ASSIGNMENT C
(c) 1930-1980
Q7. Era of Human Relations:
(a)1930-40
(b) 193080
(c) 1930-50
Q8. Which of the following skills is important in all levels of an
organisation?
(a)Conceptual
(b) Human
(c)Technical
Q9. In the.approach to management, managerial practice depends on
circumstances.
(a) Systems
(b) Contingency/Situational
(c) Empirical
Q10 Which of the following theories give managers a new way of looking
At an organisation as a whole and as a part of the larger external
Environment:
(a) Contingency theory
(b) Systems theory
(c) Theory X and Y
Q11. Who proposed that human needs develop in a hierarchical manner?
(a)Elton Mayo
(b)Abraham Maslow
(c) Chris Argyris
Q12. Decreasing the role of subordinates in decision making is known as
(a)Decentralisation
(b) Centralisation
(c) Organisation
Q13. Weber coined the term .to identify large organisations that
operated on a rational basis.
(a)Autocracy
(b)Diplomacy
(c)Bureaucracy
Q14. Which of the following determines a persons ethical or unethical
behavior?
(a)Values
(b) Procedures
(c) Rules
Q15 In which of the following situations does an intensity of an ethical
issue increase?
(a)Everyone agrees that the action is right
(b)Many people will be harmed by the action
(c)When the action has no serious impact on people.
Q16. Which level of Managers is involved in the development of plans?
(a)Top-level managers
(b) Middle-level managers
(c) All the above
Q17. Organisations use contingency plans to cope with..?
(a) Anticipated events
(a)Culture
(b)Philosophy
(c)Rules
Q24. Which of the following is not an activity in the human resource
management
Process?
(a)Training
(b)Human Resource Planning
(c)Mission Formulation
Q25. .is the organisation function of planning for human resource
needs,
recruiting and training candidates and evaluating their performance.
(a)Resource Management
(b)Human Resource Management
( c) Employee Manangement
Q26.Which of the following involves estimating the size and makeup of the
future
workforce,and helping the organisation acquire the right number and
right kind of
people when they are needed?.
(a) Human Resource Planning
(b) Workforce Planning
(c) Organisational Planning
Q27. is formally defined as a planned effort to improve the
performance of
The employee in his area of work.
(a) Development
(b) Training
(c) Staffing
Q28 ..consists of a set of activities aimed at attracting and
selecting individuals for positions in a way that will facilitate the
achievement of organizational goals
(a)Recruitment
(b) Selection
(c)Staffing
Q29. Comparing an individuals job performance against standards or
objectives
developed for the individuals position is known as..
(d) Job appraisal
(e) Evaluation
(f) Performance appraisal
Q30. .
is the process of identifying and attempting to
attract candidates who are capable of effectively filling job vacancies.
(a)Recruitment
(b)Staffing
(c )Selection
Q31. ...involves choosing the candidates who best meet the
qualifications and have the greatest aptitude for the job.
(a) Staffing
(b) Recruitment
(c) Selection
Q32 .,proposed by Douglas McGregor,has a
positive,dynamic,flexible
And optimistic view of employees.
(d) Theory X
(e) Theory Y
(f) Theory Z
Q33. In Alderfers ERG theory,ERG stands for
(a) Existence-Relatedness gain
(b) Existence-Relatedness growth
(c) Endurance-Relatedness growth
Q34. According to Herzberg,.are job content factors which lead to
job satisfaction.
(a)Motivators
(b)Hygiene factors
(c)Context factors
Q35. In the organisation structure,positions are combined into
units on the basis of similarity of expertise,skills and work activities.
(a)Matrix
(b)Divisional
(c)Functional
Q36. The first real task in designing an organisation structure is to identify
all the activities of the organisation and group them properly.This
process of grouping
The activities is commonly known as
(a) Departmentation
(b) Centralisation
(c) Organisation.
Q37. Organisation Culture is an aspect of the ..environment of an
organisation.
(a) Task
(b) Internal
(c) External
Q38. Which management approach can be classified as
scientific,administrative and bureaucratic approach.
(a)Classical
(b)Neo-Classical
(c) Modern
Q39. Which of the following systems consists of sets of interacting
elements operating without any exchange with the environment in
which it exists
(a)Closed
(b)Open
(c)Flexible
Q40. Company G adopted a performance appraisal approach that includes
assessment
of individuals performance by his her superiors,subordinates and
peers.Which of the following method of appraisal is Company C
following?
(a)90-degree appraisal
(b)180-degree appraisal
(c)360-degree appraisal
Answer Keys
Q1.(b) Q2.(c) Q3.(b) Q4.(c)Q5.(a) Q6.(b) Q7.(c) Q8.(b)
Q9.(b) Q10.(b) Q11.(b) Q12.(b) Q13.(c)Q14.(a)Q15.(b) Q16.(c)Q17.(c)Q18.
(a)
Q19.(c)Q20.(a)Q21.(a) Q22.(a) Q23.(a)Q24.(c)Q25.(b)Q26.(a)Q27.(b)Q28.
(c)
Q29.(c) Q30.(a)Q31.(c) Q32.(b)Q33.(b)Q34.(b)Q35.(c)Q36.(a)Q37.(b)Q38.
(a)
Q39.(a)Q40.(c)