HUT 310 Management for Engineers

MODULE 2

Management Process, Planning types, Mission, Goals, Strategy, Programmes, Procedures,

Organising, Principles of Organisation, Delegation, Span of Control, Organisation Structures,
Directing, Leadership, Motivation, Controlling

Qn) MANAGEMENT PROCESS

Management process is basically a process of setting goals, planning, organizing,

controlling and leading the execution of any type of activities, such as a project or a process.
It is a process which brings the scarce human and material resources together and motivates
people for the achievement of objectives of the organization. Management is not a onetime
act but an on-going series of interrelated activities. The sum total of these activities is known
as management process. It consists of a set of interrelated operations or functions necessary to
achieve desired organizational goals. A process is a systematic way of doing things. It is
concerned with conversion of inputs into outputs. An analysis of management process will
enable us to know the functions which managers perform.

Qn) DEFINE PLANNING

Planning is keystone management function. No organization can operate properly

without planning. Planning is a preparatory step for action. It means systematized pre-
thinking for determining a course of action to achieve some desired result. It is essentially a
process of deciding in advance what is to be done, when and where it is to be done, and how
it is to be done, and by whom. To plan is to look ahead and chalk out the future course of
operations of an enterprise.
Planning is the process by which the managers of an organization set objectives, make
an overall assessment of the future, and chart the courses of action with a view to achieving
the organizational goals. From this definition it follows that the planning process involves:
i) The determination of appropriate goals and objectives,
(ii) The specification of the actions needed to reach the established objectives; and
(ii) The optimum period of time for achieving them.

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Qn) PURPOSE OF PLANNING (NEED)
[Link] increasing time spans between present decisions and future results
[Link] organization complexity
3. Increased external change
4. Planning and other management functions

Qn) IMPORTANCE OF PLANNING

Planning is the first and most important functions of management. It is needed at every
level of management. Absence of planning may result in uncertain course of action and
difficulty in achieving the organization’s goals.
1. Planning provides direction- Define objectives clearly and decide step by step activity is
not possible without planning. It provides direction to attain desired outcome.
2. Planning reduces risk of uncertainty- Planning helps to understand possible changes in
future and various activities are planned in detail to choose the best alternative course of
action. Thus risk of uncertainty can be minimized.
3. Planning reduces uncertainty and wasteful activities- It oriented towards goals,
undesirable action may be avoided. Only under uncertainty, wasteful activities will be
performed and money and time spent becomes higher.

4 Planning promotes innovative ideas- Planning helps innovative and creative thinking
among the managers because many new ideas come to the mind of manager when he is
planning.
5. Planning facilitates decision making-Decision making is the process of choosing the
actions that are to be performed. It also lays down the criteria for evaluating the course of
action.
6. Planning establishes standards for controlling –control can be easily established to
increase responsibility and efficiency of the workers
7. Economical –Planning assists in reducing the cost of performance by the selection of only
one course of action among the different courses
8. Utilization of resources-Planning makes effective and proper utilization of all available
resources and makes optimum use of all these resources
9. Effectiveness- Planning promotes organizational effectiveness which ensures that the
organization is in a position to achieve its objective due the increased efficiency
10. Coordination –Various departments work in accordance with the overall plan of the
organization.

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Qn) ADVANTAGES OF PLANNING
 Unproductive work and waste of resources can be minimized.
 Planning enables a company to remain competitive with other rivals in the industry.
 Through careful planning crisis can be anticipated and delays can be avoided.
 Planning can point out the need for future change.
 Planning enables the systematic and thorough investigation of alternative methods or
solutions to a problem. Thus we can select the best alternative

Qn) DISADVANTAGES OF PLANNING

 Planning is based on forecasts which may prove to be inexact due to uncertainty of

future.
 Planning cannot give perfect insurance against uncertainty.
 Planning is costly as it involves data collection, forecast, analysis etc.
 Planning needs accurate data from internal and external sources.
 Planning is a lengthy process and hence planning can delay actions

Qn) TYPES OF PLANS

Plans are classified as

1. Purposes ( Mission)-Each organization has mission. It identifies the basic functions of any
organization. Eg. , the purpose of college is teaching and providing services to the
community
The mission statement should possess the following characteristics:
1. Impossible statements do not motivate people.
2. A mission statement should be realistic and achievable.
3. It should neither be too broad not be too narrow. If it is broad, it will become
meaningless. A narrower mission statement restricts the activities of organization.
4. The mission statement should be precise.
5. A mission statement should not be ambiguous. It must be clear for action.
Highly philosophical statements do not give clarity.
6. A mission statement should be distinct. If it is not distinct, it will not have
any impact. Copied mission statements do not create any impression.

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 7. It should have societal linkage. Linking the organization to society will build long
term perspective in a better way.
8. It should not be static. To cope up with ever changing environment, dynamic
aspects should be considered.
It should be motivating for members of the organization and of society. The employees
of the organization may enthuse themselves with mission statement
2. Goals (objectives)
 Objectives are the ends toward which activity is aimed
 Management wishes the organization to achieve
 Objectives are specific targets to be reached by an organization
 They are translation of an organization mission into concrete terms against which
results can be measured. Eg. University can decide to admit a certain number of
students.
 The goal of an organization may is to increase the sales. Then the specific objective
would be to increase the salary by 5% per year.
3. Strategies – It is defined as the determination of the basic long term objectives of an
enterprise and the adoption of courses of action and allocation of resources necessary to
achieve these goals. Strategies analyse the organizational strengths and weakness and environ
mental opportunities and threads and provide optimal match between the organization and
environment.
Business plan can be classified as Strategic plan, tactical plan, and operational plan.
a) Strategic plan:
 A strategic plan outline the broad goals for the whole organization and also state its
vision (purpose of existence).
 Tope level management develops the strategic plan for the entire organization.
 These plans can be prepared for the next two or even more years to move the
organization. (Long term)
 For e.g a firms strategic plan may involve penetrating a new market

b) Tactical plan:
 Tactical plan can defined as how an organized sequence of steps designed to execute
strategic plans. i.e. ,it is derived from strategic plans.

 Normally it is middle managers responsibility to take the broad strategic plan and
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 identify specific tactical actions.
 These plans can be prepared for one year or less than that because they are
considered short to medium term goals.
 For e.g a firms tactical plan may include designing and testing equipment for a new
product.
c) Operational plan:
 Operational plan is one that a manager uses to accomplish his or her job responsibilities.
 These plans are formulated by department managers, supervisors, team leaders and other low
level managers for carrying out the strategic and tactical plans.
 These plans can be prepared for a week, month or a year. (short term)
 E.g Purchase plan, financial plan, recruitment plan, facilities plan etc

4 Policies
Policies are general statements that guide in decision making. It is a verbal, written guide
setting up boundaries that supply the general limits and direction in which managerial
function will takes place. Policies provide a frame work within which decisions must be
made by the management in different spheres. A policy is a standing plan that furnishes broad

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guidelines for taking action consistent with reaching organisational objectives. E.g Hiring
policies, compensation policies and performance evaluation policies etc.
5. Procedures
Procedures establish a required method of handling future activities. The college policy may
grant vacation for staff members. But procedures for implementing this policy will provide
for scheduling vacation to avoid disruption of work.
[Link]
Rules show specific required actions, allowing no discretion. No smoking is a rule. The rule
reflects a managerial decision that some action should be taken or should not be taken. Rules
allow no discretion in their applications. In sanctioning overtime to worker, in regulating TA,
a uniform way of handling with the case has to be followed. These are covered by rules
7. Programmes
Programmes include all the activities required for achieving a given objective. Programmes
are drawn in conformity with the objectives and are made up of policies, procedures, budgets
etc. Eg. Opening 5 branches in different parts of the country, Deputing its employee for
training, installing new machines in the factory
The most important elements for the programme are [Link] phasing (specific date should be
laid down for completion of each successive stage of a programme [Link]

[Link]- It is statement of expected results. Eg. Sales budget-Expected sales of finished

goods for a period. The cash budget reflects expected flow of cash for a period in advance.
Budgets are very useful in organization.

Qn) WHAT ARE PLANNING PREMISES. Explain classification of planning premises

 Being aware of opportunities

 Establishing objectives
 Developing planning premises

Internal Premises:- These are the factors that influence the plan which are inside the firm
such as organizational policies, resources of government etc.
External premises:- These are the factors that influence the plan which are outside the firm
such as economic conditions. Policies etc.
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  Identifying alternated course of actions
 Evaluating the alternative courses
 Selecting the best course of action
 Establishing the sequence of activities
 Reviewing the planning process

Qn) WHAT ARE THE STEPS USED IN PLANNING

A plan is essentially today's design for tomorrow's action and an outline of the steps to
be taken in future. A good plan must be simple, balanced and flexible, and make utmost use
of the existing resources. It must be based on clearly defined objectives. For preparation of
such a plan, following steps has to be followed:

1 Perception of the Opportunities: The manager must first identify the opportunity that calls for
planning and action. This is very important for the planning process because it leads to formulation of
plans by providing clue as to whether opportunities exist for taking up particular [Link] provides
an opportunity to set the objectives in real sense.
2. Establishment of the Objectives: The next step in the planning process lies in the setting
up of objectives to be achieved by the enterprise in the clearest possible terms keeping in
view its strength and limitation. Objectives specify the results expected in measurable terms
and 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 various types of plans.
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[Link] planning premises
Planning premises supply important facts and information relating to the future such as
1. Population trends
[Link] general economic condition
[Link] costs and prices
Planning premises are the assumptions about the environment in which the plan is to be
carried out. Forecasting is important in planning like
 What kinds of market exists?
 What is the volume of sales?
 What are products?
 What are the prices to be fixed
4 .Identifying alternatives
It is important to search for alternative courses of actions for any type of problem. There will
be reasonable alternatives. Hence planner must make a preliminary examination to discover
the most fruitful courses of action.
5. Evaluation of the Alternatives:
Various alternative courses that are considered feasible in terms of preliminary
criteria have to be taken for detailed evaluation. Alternative courses of action can be
evaluated against the criteria of cost, risks, benefit and organisational facilities. The strong
and weak points of every alternative should be analysed [Link] example, one
alternative may be the most profitable but requires heavy investment; another may be less
profitable but also involves less risk.
6. Choice of the Course of Action:
Among all alternative courses, a best course of action is selected. Quantitative techniques and
operations research are useful or choosing the best course of action.
7. Formulating derivative plan
When the decision is made, a derivative plan is to be made to support the basic plan.
Derivative plan is day- to- day operations of organization.
[Link] plans by budgeting
After decisions are made and plans are set, it is necessary to numberize them by converting
them into budgets. Overall budget represent the sum total of income and expenses with major
balance sheet items such as cash and capital expenditure which will come under the overall
budget.
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Qn) DESCRIBE LEVELS OF PLANNING
The 3 levels of planning are
1. Top level planning (over all or strategic planning )-It is done by top level corporate
management. It encompasses the long range objectives and policies or organization and is
concerned with corporate results
2. Second level planning (Tactical planning )
It is done by middle level managers & heads . Middle level plans are tactical plans which are
concerned with how the resources of the organization will be utilized to achieve the
organizational strategic goal. These plans are generally made for 1- 5 years.
3. Third level planning- It is carried out by departmental managers and supervisors. These
plans are operational plans which are prepared for achieving operational goals. It is usually
for a short term that is up to 1 years.

Qn) DISTINGUISH BETWEEN OBJECTIVES AND POLICY

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Qn) DISTINGUISH BETWEEN STRATEGY AND POLICY

Qn) DISTINGUISH BETWEEN PROCEDURES AND POLICIES

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Qn) DISTINGUISH BETWEEN RULES AND POLICIES

Qn) DEFINE ORGANISING

Organising is that managerial process which seeks to define the role of each individual
towards the attainment of enterprise objectives. It refers to the process of identifying and
grouping of activities to be performed and dividing them among the individuals and creating
authority and relationship among responsibility them for the accomplishment of
organisational objectives.

Qn) GIVE IMPORTANCE OF ORGANIZING IN AN ORGANISATION

1. Benefits of Specialization
Under organising, the whole work is systematically allocated and divided into different parts.
Right man is put at the right job. It increases the efficiency of workers and motivates them to
put their best into the work.
2. Clarity in Working Relationships -
Organising helps in establishing working relationship and clearly defines the lines of
communication and also who specifies is to report to whom.
3. Optimum Utilization of Resources -Organising provides fuller and efficient use of all
human, physical and financial resources. Proper allocation of jobs helps in avoiding
overlapping of work and ensures optimum use of resources without any wastage.

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4. Adaptation to changes Organising helps business enterprises to adjust to environmental
changes. In order to ensure smooth of functioning the enterprise, organising suitably modifies
the organisational structure and various inter-relationships existing in the enterprise.
Moreover, it also provides stability in the enterprise so that it continues to grow and survive
of changes.
5. Effective Administration Organising helps in bringing about administrative efficiency
because: It leads to specialization which brings effectiveness in administration. (i) It clarifies
centres of authority & power and thus results in proper execution of work. (1ii) It provides a
clear description of jobs and related duties which results in avoiding duplication of work.
6. Development of Personnel Organising creates structure of an organisation. Effective
delegation allows managers to assign jobs of routine nature to their subordinates. The
reduction in workload enables the managers to develop new methods and techniques of
performing the jobs efficiently and to explore new areas for the growth of an organisation. On
the other hand, delegation develops an ability among the subordinates to deal effectively with
the challenges and also helps them grow to realize their full potential.
7. Expansion and Growth Organising promotes growth and diversification of an
enterprise. It enables the enterprise to take up new challenges e.g. more job positions,
departments, new product lines and also new geographical territories etc. for increasing sales
and profit.

Qn) EXPLAIN PRINCIPLES OF ORGANIZATION

Principle #1. Attention to Objectives: An organization is a mechanism to accomplish certain
goals. The objectives of an organization play an important role in determining the type of
structure which should be developed. Clearly defined objectives facilitate grouping of
activities, delegation of authority and consequently effective coordination.
Principle # 2. Authority and Responsibility: Authority should commensurate with
responsibility. While assigning the responsibility, authority should also be assigned. If
authority is not granted, the subordinates cannot discharge their responsibility properly.
Principle # 3. Continuity: The form of organization structure should be such which is able to
serve the enterprise to attain its objectives for a long period of time.
Principle #4. Coordination: The principal of coordination underlines that there should be
proper liaison and cooperation between different departments and units of work. Unity of
efforts for the accomplishment of desired objectives is the main aim of organization.
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Principle # 5. Decentralization: Decentralization implies selective dispersal of authority to
help departments and units to run effectively and efficiently without frequent interruptions
from the top of the enterprise. Decentralization, as such, embraces all areas of management
and evidently is of overwhelming significance in organization structure.
Principle # 6. Departmentation: It is the process of grouping activities into units for purposes
of administration. In other words, it denotes grouping of related jobs and activities without
violating the principle of homogeneity over which an executive has authority to exercise and
assert. The main advantages of departmentation are that it enables individual executive to
manage his subordinates effectively since a manageable number of persons are brought under
the direct supervision of individual executive.
Principle #7. Division of Work: While structuring organization, division of work, at the very
outset, should be considered as the basis of efficiency. It is an established fact that group of
individuals can secure better results by having division of work.
Principle# 8. Efficiency: The organization should be able to attain the predetermined
objectives at the minimum cost. It is done so; it will satisfy the test of efficiency. From the
point of view of an individual, a good organization should provide the maximum work
satisfaction. Similarly, from the social point of view, an organization will be efficient when it
contributes the maximum towards the welfare of the society.
Principle # 9. Flexibility: While designing the organization it should be kept in mind that
organizational structure should not be regarded as static. Every organization is a living entity
in a living environment which is fast changing. As such there must be sufficient room for
changing and modifying the structure in the light of environmental changes.
Principle # 10. Management by Exception:This principle signifies that problems of unusual
nature only should be referred upward and decided by higher level executives in the
managerial hierarchy, whereas the routine problems should be passed on to lower levels and
resolved there. Application of this principle as such, certainly requires adhering to the
principle of delegation of authority. The principle of exception is thus of significant practical
utility and applies to all levels in the organization structure.
Principle # 11. Proper Balance: It is important to keep various segment or departments of an
organization in balance. The problem of balance basically arises when an activity or a
department is further divided and subdivided into smaller segments. The problems of
balancing also crops up with the growing of any organization in its size and functioning.

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Principle # 12. Scalar Principle Scalar chain refers to the vertical placement of superiors
starting from the chief executive at the top through the middle level to the supervisory level at
the bottom. Proper scalar chain or line of command is prerequisite for effective organization.
Principle #13. Span of Management: Span of management also refers to span of control
signifying the number of subordinates reporting directly to any executive. It is an established
fact that larger the number of subordinates reporting directly to the executive, the more
difficult it tends to be for him to supervise and coordinate them effectively. This important
principle of management should also be kept in mind.
Principle # 14. Unity of Command: Organization structure should also be designed in such a
way that there exists unity of command in the sense that a single leader is the ultimate source
of authority. This facilitates consistency in directing, coordinating and controlling to achieve
the end objectives.
Principle #15. Unity of Direction: This means that each group of activities having the same
objectives should have one plan and one head. There should be one plan or programme for
each segment of work which is to be carried under the control and supervision of one head or
superior. If different plans or policies are followed in one department by the subordinates,
confusion is bound to occur.

Qn) LIST NATURE OF ORGANIZING

 Goal directed activity
 Differentiating activity
 Grouping activity
 Assigning or delegating activity
 Integrating activity
 Dynamic and constantly evolving activity.

Qn) WHAT ARE STEPS IN THE PROCESS OF ORGANIZING

 Identifying the work to be performed
 Classify the work or group the work
 Assigning activities to the groups or individuals( allocation of work)
 Deciding the hierarchy of authority.

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Qn) EXPLAIN FORMAL ORGANIZATION AND INFORMAL ORGANIZATION
Formal organization:
 Formal organization refers to the structure of jobs and positions with clearly defined
functions and relationships as prescribed by the top management.
 This type of organization is built by the management to realize the objectives of an
enterprise and is bound by rules, syste4ms and procedures.
 Everybody is assigned a certain responsibility for the performance of the given task
and given the required amount of authority for carrying it out.

Informal Organization:
 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.
 Informal organization refers to the relationship between people in the organization
based on personal attitudes, emotions, prejudices, likes and dislikes etc.
 These relations are not developed according to the procedures and regulations laid
down in the formal organization structure.
 Informal organization may not have any well-defined tasks.
 Many things which cannot be achieved through formal organization can be achieved
through informal organization.
Qn) DIFFERENTIATE BETWEEN FORMAL ORGANIZATION AND INFORMAL
ORGANIZATION:

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Qn) EXPLAIN IMPORTANCE OF DELEGATION IN MANAGEMENT
Delegation is an important management skill to work on through your career. The
process of delegation starts from the chief executive of an organisation who has the total
responsibility for the achievement of goals. In order to share the responsibility of
accomplishing goals, he further delegates the work to his subordinates. These subordinates,
finding the work assigned to them by their superior exceeds their "Span of Control" assign a
portion of their works to their own subordinates. This process continues till all the tasks and
activities are assigned to those who have the appropriate physical, psychological and
professional abilities to do it.

Qn) LIST OUT ELEMENTS OF DELEGATION

1. Assignment of Duties or Tasks: A manager has to assign a part of his duties to
others under him or her because he cannot himself perform all the work. So, when
assigning duties he should ensure that the subordinates, to whom work is assigned,
perform their tasks sincerely and competently. Even after that a manager assigns duties
and tasks to his subordinates; he continues to be ultimately responsible for the proper
performance of these duties and tasks
2. Delegation of Authority: While the duties and tasks are entrusted to the subordinates
by the superior, the authority should be granted them to perform those duties and tasks
well. It is called as "delegation of authority". This delegation of authority is considered
as an essential to take all actions, which lead to accomplish their duties successfully,
and the organisational goals.
3. Accountability for Performance of Duties and Exercise of Authority: The person
to whom any responsibility is assigned and authority is delegated should also be made
accountable or answerable for the proper performance of the assigned responsibility
and for proper exercise of the delegated authority.

Qn) EXPLAIN SPAN OF CONTROL

Span of control is defined as the number of subordinates who are working under one
manager. The principle span of control implies that no single executive should have more
people looking to him for guidance and leadership than he can reasonably be expected to

serve. There will be many subordinates who report to their manager in a wider span of
control, while a manager has fewer subordinates in a narrow span of control.
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Qn) DESCRIBE FACTORS DETERMINING SPAN OF CONTROL
1. The Capacity and Ability of the Executive: The characteristics and abilities such as
leadership, administrative capabilities, ability to communicate, to Judge, to listen, to
guide and inspire, physical vigour etc. differ from person to person. A person having
better abilities can manage
2. Competence and Training of Subordinates: Subordinates who are skilled, efficient,
knowledgeable, trained and competent require less supervision, and therefore, the
supervisor may have a wider span in such cases as compared to inexperienced and
untrained subordinates who require greater supervision.
3. Nature of Work: Nature and importance of work to be supervised is another factor
that influences the span of supervision. The work involving routine, repetitive,
unskilled and standardized operations will not call much attention and time on the part
of the supervisor. As such, the supervisors at the lower levels of organization can
supervise the work of a large number of subordinates. On the other hand, at higher
levels f management, the work involves complex and a variety of Jobs and as such the
number of subordinates that can be effectively managed should be limited to a lesser
number.
4. Time Available for Supervision: The capacity of a person to supervise and control a
large number of persons is also limited on account of time available at his disposal to
supervise them. The span of control would be generally narrow at the higher levels of

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 management because top managers have to spend their major time on planning,
organizing, directing and controlling and the time available at their disposal for
supervision will be lesser..
5. Degree of Decentralization and Extent of Delegation: If a manager clearly
delegates authority to undertake a well-defined task, a well-trained subordinate can do
it with a minimum of supervisor's time and attention. As such, the span could be wide.
6. Effectiveness of Communication System: The span of supervision is also influenced
by the effectiveness of the communication system in the organization. Faulty
communication puts a heavy burden on manager's time and reduces the span of
control. On the other hand, if the system of communication is effective, larger number
of managerial levels will be preferred as the information can be transmitted easily.
Further, a wide span is possible if a manager can communicate effectively.
7. Quality of Planning: If plans and policies are clear and easily understandable, the
task of supervision becomes easier and the span of management can be wider.
Effective planning helps to reduce frequent calls on the superior for explanation,
instructions and guidance and thereby saves in time available at the disposal of the
supervisor enabling him to have a wider span. Ineffective plans, on the other hand,
impose limits on the span of management. of
8. Degree of Physical Dispersion: If all persons to be supervised are located at the same
place and within the direct supervision of thee manager, he can supervise relatively
more people as compared to the one who has to supervise people located at different
places.
9. Assistance of Experts: The span of supervision may be wide where the services of
experts are available to the subordinate on various aspects of work. the In case such
services are not provided in the organization, the supervisor has to spend a lot of time
in providing assistance to span of control would be the workers himself and as such
the narrow.
10. Control Mechanism: The control procedures followed in an influence the
organization also span of control. The use of enables an objective standards supervisor
quick information of 'management by exception' by providing deviations or variances.
11. Dynamism or Rate of Change: Certain enterprises change much more rapidly .The
span of control tends to be narrow where the policies and practices do not remain
stable.
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12. Need for Balance: According to Koontz and O 'Donnel, "There is a limit in each
managerial position to the number of persons an individual can effectively manage,
but the exact number in each case will vary in accordance with the effect of
underlying variable and their impact on the time requirements of effective
managing.".

Qn) EXPLAIN ORGANISATION STRUCTURES

The first major task of managers engaged in organizing is the development of an
organizational design. Organizational design involves the creation of a new
organizational structure or modifications of an existing organizational structure to enable
the organization to achieve its goals. Organisation structure is the pattern of
organisational hierarchy based on authority responsibility relationship. It is mechanism
through which management directs co-ordinates and controls the business. It is the
foundation of management."

Qn) EXPLAIN FEATURES AND CHARACTERISTICS OF ORGANISATION

STRUCTURE
1. It facilitates co-ordination of organisational activities and tasks.
2. It states the pattern of formal relationships and duties among people at different
positions in the organisation.
3. In elaborates the hierarchical relationship among different levels of management within
the organisation.
4. It facilitates the implementation of policies, practices, procedures, standards evaluation
systems etc. that guide the activities and relationship among people in the organisation.
5. It states the activities and tasks assigned to different departments and people in the
organisation

Qn) ILLUSTRATE DIFFERENT TYPES OF ORGANISATION STRUCTURES

A. Line Organisation -It is also known as scalar organization, military organization,

vertical organization etc. This is the simplest and oldest form of structure. The main
characteristic of this type is superior sub ordinate relationship. Authority flows
vertically from top level person to all the persons responsible for the execution of

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 work. Everybody is responsible for his work and is accountable to his boss. Since
authority and responsibility flow in an unbroken straight line, it is called line
organization.

Advantages of Line Organization:

o The line organization structure is very simple to understand and simple to operate.
o Communication is fast and easy and feedback can be acted upon faster.
o Responsibility is fixed and unified at each level and authority and accountability are
clear-cut, hence each individual knows to whom he is responsible and who is or in truth
responsible to him.
o Since it is especially useful when the company is small in size, it provides for greater
control and discipline in the organization.
o It makes rapid decisions and effective coordination possible. So it is economic and
effective.
o The people in line type of organization get to know each other better and tend to feel
close to each other.
o The system is capable of adjusting itself to changing conditions for the simple reason that
each executive has sole responsibility in his own sphere.

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Disadvantages of Line Organization:
a. It is a rigid and inflexible form of organization.
b. There is a tendency for line authority to become dictatorial.
c. It overloads the executive with pressing activities so that long-range planning and policy
formulation are often neglected.,
d. There is no provision for specialists and specialization, which is essential for growth and
optimisation.
e. Different departments may be much interested in their self. interests, rather than overall
organizational interests and welfare.
f. It is likely to encourage nepotism.
g. It does not provide any means by which a good worker may be rewarded and a bad one
punished.
B LINE AND STAFF ORGANISATION
This type of organization structure is in large enterprises. The functional specialists are added
to the line in line and staff organization. Staff is basically advisory in nature and usually does
not possess any command authority over line managers.
In the line and staff organisation, staffs assist the line managers in their duties in order to
achieve the high performance. So, in an organization which has the production of textiles, the
production manager, marketing manager and the finance manager may be treated as line
executives, and the department headed by them may be called line departments
On the other hand, the personnel manager who deal with the recruitment, training and
placement of workers, the quality control manager who ensure the quality of products and the
public relations manager are the executives who perform staff functions.

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Advantages of Line and Staff Organisation:
a. Line officers can concentrate mainly on the doing function as the work of planning and
investigation is performed by the staff. Specialisation provides for experts’ advice and in
management efficiency
b. Since the organisation comprises line and staff functions decisions can be taken easily.
c. The staff officers supply complete factual data to the line officers covering activity within
and without their own units. This will help to greater co-ordination.
d. It provides an adequate opportunity for the advancement of workers.
e. The staff services provide a training ground for the different positions. f. Adequate
organisation a balance among the various activities can be attained easily.
g. The system is flexible for new activities may be undertaken by the staff without forcing
early adjustments of line arrangements.
h. Staff specialists are conceptually oriented towards looking ahead and have the time to do
programme and strategic planning and analyse the possible effects of expected future events.
Disadvantages of Line and Staff Organisation:
a. Confusion and conflict may arise between line and staff. Because the allocation of
authority and responsibility is not clear and members of the lower levels may be confused by
various line orders and staff advices.
b. Staff generally advise to the lines, but line decides and acts. Therefore the staffs often feel
powerless.
c. Too much reliance on staff officers may not be beneficial to the business because line
officials may lose much of their judgment and imitative.
d. Normally, staff employees have specialised knowledge and expert. Line makes the final
decisions, even though staff give their suggestions. Staff officers, therefore, may be resented.
e. Staff officers are much educated so their ideas may be more theoretical and academic
rather than practical.
f. Although expert advice is available it reaches the workers through the managers. Here it is
liable to create a greater deal of misunderstanding and misinterpretation.
g. Since staff specialists demand higher payments, it is expensive.
h. The staff is unable to carry out its plan or recommendations because of lack of authority.
So they become ineffective
C. FUNCTIONAL ORGANISATION

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The line organization suffers from a number of drawbacks. The expansion of business and
large-scale production has necessitated the use of experts in different fields. As the name
implies, under functional authority relationships, the whole task of management is divided
according to the type of work involved.
The normal operations to be performed in a business house are production, research and
development, personnel, purchasing, finance, etc., these activities are assigned to various
departments and functional experts are appointed to look after those activities.
Features of Functional Organisation
a. Each worker receives instructions not only from one superior, but also from a group of
specialists.
b. Three types of authority relationships are in the functional organisation such as line
authority, staff authority and functional authority.
c. Staff specialists are given the authority to decide and do things in a limited way.
d. The scope of the work is kept limited but the area of authority is left unlimited.
e. There is a grouping of activities of the enterprise into certain major functional departments.

Advantages of Functional Organisation:

a. Each manager is an expert in his field. He has to perform a limited number of
functions. Socomplete specialisation will be in functional organisation.
b. The greater degree of specialisation leads the improvement in the quality of product.
c. Since the job requirements are definite and tangible, organisation can achieve the
intensive utilization of the principle of specialisation of labour at the managerial level.
d. Specialisation will lead for mass production and standardisation.

23
e. Since experts get sufficient time for creative thinking, planning and supervision are
madeefficient.
f. It increases the work satisfaction for specialists who presumably do what they like to do.

Disadvantages of Functional Organisation:

a. Since there is no direct boss or controller of the workers, co-ordination is hard to achieve.
b. Since workers are under different bosses, discipline is hard to achieve. As results there will
be low morale on the part of the workers.
c. The non-supervisory employees are uncertain as to whom they should turn for advice and
aid when problem call for analysis.
d. Due to that control is divided, action cannot be taken immediately.
e. Since there will be many foreman of equal rank in the same department, the conflicts of
leadership may arise.
f. It reduces the opportunities for the training of all-round executives to assume further
leadership in the firm.

D. PROJECT ORGANISATION
This organisational structure are temporarily formed for specific projects for a specific period
of time, for the project of achieving the goal of developing new product, the specialists from
different functional departments such as production, engineering, quality control, marketing
research etc., will be drawn to work together. These specialists go back to their respective
duties as soon as the project is completed. Really, the project organisation is set-up with the
object of overcoming the major weakness of the functional organisation, such as absence of
unity of command, delay in decision making, and lack of coordination.

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E. MATRIX ORGANISATION

A matrix structure is a type of departmentalization that superimposes a orizontal set of

divisional reporting relationship onto a hierarchical functional structure. This organization is
also called is a grid organization. Thus, a matrix structure can be termed to the both
functional and divisional at the same time. A matrix structure has two chains of command-
Vertical and horizontal.

Advantages of Matrix Organisation:

1. Since there is both vertical and horizontal communication it increases the coordination and this
coordination leads to greater and more effective control over operations.
2. Since the matrix organisation is handling a number of projects, available resources will be used fully.
3. It focuses the organisational resources on the specified projects, thus enabling better planning and
control.
4. It is highly flexible as regards adherence to rules, procedures etc. Here experience is the best guide to
establishing rules and procedures.
5. As any department or division has to harness its effort towards accomplishment of a single project,
employees are effectively motivated.
Disadvantages of Matrix Organisation:
1. Since, there is more than one supervisor for each worker, it causes confusion and
conflictsand reduce effective control.
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 2. There is continuous communication both vertically as well horizontally, which
increasespaper work and costs.
3. It is difficult to achieve a balance below on the projects technical and
administrativeaspects.

QN) DESCRIBE THE FACTORS AFFECTING THE SELECTION OF ORGANIZATION

STRUCTURES

Although many things can affect the choice of an appropriate structure for an organization,
the following five factors are the most common: size, life cycle, strategy, environment, and
technology.

Organizational size

The larger an organization becomes, the more complicated its structure. When an
organization is small such as a single retail store, a two‐person consulting firm, or a restaurant
— its structure can be simple.

As an organization grows, however, it becomes increasingly difficult to manage without more

formal work assignments and some delegation of authority. Therefore, large organizations
develop formal structures.

Organization life cycle

Organizations, like humans, tend to progress through stages known as a life cycle. Like
humans, most organizations go through the following four stages: birth, youth, midlife, and
maturity. Each stage has characteristics that have implications for the structure of the firm.

Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not
yet have a formal structure.

Youth: In this phase, the organization is trying to grow. It is during this phase that the formal
structure is designed, and some delegation of authority occurs.

Midlife: This phase occurs when the organization has achieved a high level of success. An
organization in midlife is larger, with a more complex and increasingly formal structure.
Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less
interested in expanding, and more interested in maintaining itself in a stable, secure
environment. The emphasis is on improving efficiency and profitability.

26
 Although an organization may proceed sequentially through all four stages, it does not have
to.
Strategy
How an organization is going to position itself in the market in terms of its product is
considered its strategy. A company may decide to be always the first on the market with the
newest and best product (differentiation strategy), or it may decide that it will produce a
product already in the market more efficiently and more cost effectively (cost‐leadership
strategy). Each of these strategies requires a structure that helps the organization reach its
objectives. In other words, the structure must fit the strategy.

Environment
The environment is the world in which the organization operates, and includes conditions that
influence the organization such as economic, social‐cultural, legal‐political, technological,
and natural environment conditions. Environments are often described as either stable or
dynamic.

In a stable environment, the customers' desires are well understood and probably will remain
consistent for a relatively long time. Examples of organizations that face relatively stable
environments include manufacturers of staple items such as detergent, cleaning supplies, and
paper products.
In a dynamic environment, the customers' desires are continuously changing—the opposite of
a stable environment. This condition is often thought of as turbulent. In addition, the
technology that a company uses while in this environment may need to be continuously
improved and updated. An example of an industry functioning in a dynamic environment is
electronics. Technology changes create competitive pressures for all electronics industries,
because as technology changes, so do the desires of consumers.

Technology

Advances in technology are the most frequent cause of change in organizations since they
generally result in greater efficiency and lower costs for the firm. Technology is the way
tasks are accomplished using tools, equipment, techniques, and human know‐how.
Qn) EXPLAIN DIRECTING
Directing is a function of management, which is guiding and leading people to work
efficiently and effectively for the attainment of organizational objectives. Direction is telling
people what to do and seeing that they do it to the best of their ability. It includes making

27
assignments, corresponding procedures, seeing that mistakes are corrected, providing on-the-
job instruction and of course issuing orders. Direction involves communicating and providing
leadership to the subordinates and motivating them to contribute to the best of their capability
for the achievement of organizational objectives.

Qn) EXPLAIN PRINCIPLES OF DIRECTION

1. Direct Supervision: Direct supervision improves the motivation and morale of
employees, increases their loyalty and provides the immediate feedback.
2. Participative Managerial Style: The subordinate's morale will be higher when their
views are seriously incorporated into the managerial decision-making. This will
assist the direction process easier since the direction, then, is not taken as a
command but as a form of guidance for improvements.
3. Unity of Direction: The direction must be clear and unambiguous and from a single
chain of command, otherwise the authority will be undermined, resulting in disorder
and confusion.
4. Follow-Through: Direction is a continuous process. More issuing of orders and
instructions is not enough and it is essential to ensure that the work is done in the
desired manner. Therefore, a manager should follow through the whole performance
of his subordinates.
5. Appropriate Techniques: The techniques used for direction should be appropriate to
the people, the task and the situation. Standard operating procedures are not always
helpful in direction.
Qn) DESCRIBE ELEMENTS (OR) TECHNIQUES OF DIRECTION

1. Issuing Orders and Instructions: A manager is required to issue a number of orders to

his subordinates to initiate, modify or halt any action. He is also required to guide and instruct
workers in performance of their task towards the achievement of desired goals. Instructions
are important in directing subordinates. Orders and instructions reflect the decisions of
managers.
A good order or instruction should have the following characteristics: (a) It should be
simple, unambiguous and clear. (b) It should be brief but complete. (c) It should be
reasonable and enforceable. (d) It should be convincing and acceptable. (e) It should invoke

co-operation. (f) It should be compatible with the objectives of the organization. (g) It should
"be in written form as far as possible. (h) It should be backed up by follow-up action.

28
2. Leadership: Leadership is "the process by which an executive or manager imaginatively
directs/guides and influences the work of others in choosing and attaining specified goals by
mediating between the individual and organization in such a manner that both will get
maximum satisfaction." . Different situations may demand different types of leadership viz.,
autocratic leadership, democratic leadership and free-rein leadership.
3. Communication: Communication constitutes a very important element of directing.
Communication is the means by which the behaviour of the subordinates is modified and
change is effected in their action. The essence of communication is getting the receiver and
the sender tuned together for a particular message. Communication refers to the exchange of
ideas, feelings, emotions, knowledge and information between two or more persons. In
management ideas, objectives, orders, appeals, observations, instructions, suggestions etc.
have to be exchanged among the managerial personnel and their subordinates operating at
different levels of the organization for the purpose of planning and executing the business
policies. Directing will mainly depend upon the effectiveness of communication. In case the
orders and instructions are not properly conveyed then these may not be properly
implemented.
4. Motivation: It is an important element of directing function. Motivation encourages
persons to give their best performance and help in reaching enterprise goals. It is the degree
of readiness for undertaking assigned task and doing it in the best possible way. Directing
function tries to make best use of various factors of production available in the organization.
This can be achieved only when employees co-operate in this task. Efforts should be made to
make employees contribute their maximum.
5. Supervision: It consists of the process and technique involved in issuing instructions and
confirming that operations are carried as originally planned. Supervision is a continuing
activity and performed at every level of activity. It is inevitable at every level of management
for putting the managerial plans and policies into action. In a way supervision is a sort of
control as the supervisor is supposed to take corrective measures if the work is not in line
with the plan.
6. Co-ordination: Co-ordination is an orderly arrangement of group effort to provide unity of
action in pursuit of common purpose. The purpose of directing is to get various activities
coordinated for achieving common goals. It involves the integration of various parts of the

29
organization. In order to achieve goals of an enterprise, both physical as well as mental co-
ordination should be secured. Co-ordination is a part of directing exercise and helps in
synchronization of various efforts.

Qn) DESCRIBE LEADERSHIP

Leadership might be defined as the art of influencing the behaviour and performance
of followers towards the most enthusiastic attainment of common objectives through
inspiring people by the leader's charism, conduct and behaviour.

LEADERSHIP FUNCTIONS:
1. Setting Goals: A leader is expected to perform creative function of laying out goals and
policies to persuade the subordinates to work with zeal and confidence.
2. Organizing: The second function of a leader is to create and shape the organization on
scientific lines by assigning roles appropriate to individual abilities with the view to make its
various components to operate sensitively towards the achievement of enterprise goals.
3. Initiating Action: The next function of a leader is to take the initiative in all matters of
interest to the group. He should not depend upon others for decision and judgment. He should
float new ideas and his decisions should reflect original thinking.
4. Co-Ordination: A leader has to reconcile the interests of the individual members of the
group with that of the organization. He has to ensure voluntary co-operation from the group
in realizing the common objectives.
5. Direction and Motivation: It is the primary function of a leader to guide and direct his
group and motivate people to do their best in the achievement of desired goals, he should
build up confidence and zeal in the work group.
6. Link between Management and Workers : A leader works as a necessary link between
the management and the workers. He interprets the policies and programmes of the
management to his subordinates and represents the subordinates' interests before the
management. He can prove effective only when he can act as the true guardian of the
interests of his subordinates.

Qn) EXPLAIN QUALITIES OF A GOOD LEADER:

A successful leader secures desired behaviour from his followers. It depends upon the quality
of leadership he is able to provide. A leader to be effective must possess certain basic
30
qualities. A number of authors have mentioned different qualities which a person should
possess to be a good leader.
1. Good personality.
2. Emotional stability.
3. Sound education and professional competence.
4. Initiatives and creative thinking.
5. Sense of purpose and responsibility.
6. Ability to guide and teach.
[Link] understanding and sound judgment.
8. Communicating skill.
9. Sociable.
10. Objective and flexible approach.
11. Honesty and integrity of character.
12. Self-confidence, diligence and industry.
13. Courage to accept responsibility

Qn) EXPLAIN TYPES OF LEADERSHIP STYLES

Three major leadership styles are: 1. Authoritarian or Autocratic 2. Participative or
Democratic 3. Free-rein or Delegate

31
Authoritarian Style: When the leaders tell their subordinates/followers at their own what
work they want to get done, and how - it is known as authoritarian or autocratic leadership
style. It works well if the leader is competent and knowledgeable enough to decide about
each and every thing. All decision making powers are centralised in the leader, as with
autocratic leaders. No suggestions or initiatives from subordinates are acceptable.
Participative Style: A Participative Leader, rather than taking autocratic decisions, seeks to
involve other people including subordinates, peers, superiors and other stakeholders in the
process. Here the leader takes his subordinates into confidence about what to do and how to
do, but the final authority vests in the leader. This style can be divided into two - one, where
leader consults, and two, where decision is taken through consensus. Use of this style by a
leader is not a sign of weakness. It is the strength, your subordinates will respect. This style is
used when the employees are knowledgeable and skilful. This style is also known as
consultative, empowerment, joint decision-making, democratic leadership, Management by
Objective (MBO) and power-sharing. It helps in ascertaining and identifying future leaders
among the subordinates. Also, it keeps a team's spirit and morale high, as the team members
feel that their opinions are valued by their leader.
Free-rein Leadership Style:
A free-rein leader does not lead, but leaves the group entirely to itself. Such a leader allows
maximum freedom to subordinates, i.e., they are given a free hand in deciding their own
policies and methods. It is used when the leader has full trust and confidence in the abilities
of his subordinates. Since a leader cannot do everything. He prioritises the work and
delegates certain tasks. This style may be used but with caution. This style is also known as
laissez faire. To illustrate, a manager has newly joined a firm. He is still learning how various
things move in the organization. In such a situation, he relies on the suggestions and opinions
of his team members and lets them do the things the way they are used to, till the time he is
able to gain sufficient knowledge and can suggest some more feasible changes. Good leaders
should be able to master all the styles, to be a better leader. He must be able to use all the
styles depending upon the forces in operation among the leader, followers and the situation. If
the existing procedure is not working go in for authoritarian to establish a new one; if their
ideas and input are to be taken use participative and using delegate style while delegating the
procedure to them for execution. Normally one of styles will be dominant. But bad leaders
tend to stick to one style only.

32
Qn) DIFFERENCE BETWEEN MANAGER AND LEADER

QN) EXPLAIN PROCESS OF COMMUNICATION

It is the process of passing information and understanding one person to another. It is a two
way process. i.e exchange of information between 2 or more person

1. Sender & receiver are terminals

2. Encoder : translates the human thought into a language.
3. Medium : Through which a sender send message to receiver.

33
 4. Decoder : Translates the message into an interpretable form.
5. A manager to be successful must develop an effective system of communication. So
that he may issue instructions receive the reaction of subordinates and to guide and
motivate them. Importance of communication

QN) EXPLAIN TYPES OF COMMUNICATION

 Formal communication -It is used for official purpose. It is used for passing
information or getting work done. It can be written or oral. It may be either vertical or
horizontal communication.
 Vertical communication: It involves downward & upward communication.
 Downward communication means the flow of communication from the top level to
lower level of employees – Warning Upward communication means the flow of
communication from workers to higher management level giving work
accomplishment report or other feedback information – suggestions, opinions,
complaints.
 Horizontal communication -Communication between positions of the same level. i.e.
interdepartmental communication, permits exchange of jobs, related experience and
knowledge
 Informal communication: Any communication other than formal communication –
unofficial
QN) EXPLAIN MANAGERIAL GRID
The managerial grid was developed by Robert Blake and Jane mouton.

 Various managerial styles are described through managerial grid.

 The grid has two dimensions viz., Concern for people and concern for production
 Concern for production means the attitudes of a manager towards a wide variety of
things such as procedures and processes, efficiency of work and volume of output.
 Concern for people includes such elements as creating good working conditions and
building up and maintaining satisfactory inter personal relations.
 The horizontal axis in the grid represents concern for production whereas the vertical
axis represents concern for people.

34
The managerial grid identifies five leadership styles
 Impoverished style: This style located at the lower left hand
corner of the grid cell(1,1) is characterised by low concern for
both people and production.
 Authoritarian style: This style located at the lower right hand
corner of the grid cell(9,1) is identified by high concern for
production and low concern for people.
 Country club style: This style located at the upper left
hand corner of the gridcell(1,9) is identified by low concern
for production and high concern for people.
 Team manager style: This style located at the upper right
hand corner of the gridcell (9,9) is identified by high concern
for both production and people.
 Middle of the road style: This style located at the middle
of the grid cell (5,5)maintains a balance between workers need
and organisations productivity goals.

It is a popular approach for defining leadership styles. They use the

 managerial grid as a framework to help managers identify their
leadership style and to track their movement toward the ideal
management style.
Transactional leadership, also known as managerial leadership,
is a leadership style where leaders rely on rewards and punishments to
achieve optimal job performance from their subordinates. The
transactional executive leadership model is based on an exchange or
transaction.

Qn) EXPLAIN MOTIVATION

Motivation is an important factor which encourages persons to give their best
performance and help in reaching enterprise goals. A strong positive motivation will
enable the increased output of employees but a negative motivation will reduce their
performance. A key element in personnel management is motivation.
Qn) IMPORTANCE OF MOTIVATION
1. Greater efficiency:
Motivation enhances the efficiency of the employees and of organization. When
employees are motivated, they can perform with commitment and dedication.
2. Reduction in absenteeism and labour turnover:
Motivated employees may not remain absent or leave the organization. They develop
a sense of belonging towards the organization and thus improve their overall
performance.
3. Team spirit:
Motivation improves team spirit of employees, and this improves the work
environment and the overall performance of the employee and the organization.
4. Reduction in wastages and breakages:
Motivated employees take great care in handling machines and other resources. This
will reduce wastages and breakages, thus resulting in higher benefits to the
organization.
5. Cordial relations:
Motivation enables cordial and healthy relationship in the organization. Motivation
helps reduce labour grievances and disputes. It ensures sound relations between the
management and the labour. It improves the overall efficiency of the organization.
6. Promotion of innovation:
Motivated employees use their initiative to find out innovative ways in the
performance of their operations. Such employees are more creative and help the
organization to gain the competitive advantage.
[Link] use of resources:
Motivation leads to greater employee involvement and lesser wastages. This leads to
optimum utilization of resources.
8. Corporate image
Motivated employees are more loyal to the organization. They work with a sense of
commitment and dedication. This improves the overall performance of the employee,
which enables better results for the company. This results in better relations with all
the stakeholders.
Qn)TYPES OF MOTIVATION
If a manager wants to get work done by his employees ,he may either give a promise
of a reward for doing work in better way .He may utilize positive or negative
motivation.
1. POSITIVE MOTIVATION
It leads to good team spirit, cooperation and feeling of happiness .Eg. Praise credit
for work done, completion, appreciation and good pay
[Link] MOTIVATION
All management use negative motivation occasionally not always. Fear motivation is
‘PUSH mechanism’. Punishment results in frustration.
3. EXTRINSIC MOTIVATION
It is concerned with external motivators such as pay, promotion, retirement plan and
health insurance
[Link] MOTIVATION
It is concerned with psychology. Eg; Praise, Recognition
Qn) EXPLAIN MOTIVATION THEORIES

A. Maslow's Need Hierarchy Theory

Maslow's Need Hierarchy Theory

Motivation is influenced by the needs of a person. There is a priority of certain needs
over others. The importance of needs will influence the level of motivation. A.H.
Maslow, An American social scientist, has given a framework that helps to explain
the strength of certain needs. He has categorized human needs into five categories.
He is of the opinion that a person tries to achieve first category first and then moves
on to the next and so on.
1. Physiological Needs
These needs are most essential for the survival and maintenance of body. These
include food, clothing, drinking, shelter, rest, exercise, etc. A man will try to satisfy
these needs first. Unless physiological needs are satisfied no other needs will
motivate him. Once these needs are satisfied then these will cease to motivate him
and he will want to satisfy the other needs.
2. Safety Needs:
Once physiological needs are satisfied then safety needs take the precedence. These
are the needs to be free from physical danger and the fear of loss of job, property,
shelter, etc. One would like to be free from economic worries like loss of job,
sickness, old age pension etc. The physical safety against murder, accident, fire, etc.
is also essential. The physical and economic needs act as motivators up to the time
they are not properly met.
According to McGregor, "Safety needs may serve as motivators in such
circumstances as arbitrary management actions, behaviour which arouses uncertainty
with respect to continued unemployment and unpredictable administration of policy.
The organization can meet safety needs by installing safety devices at work and can
start pension scheme, insurance plan etc."
3. Social Needs:
Since people are human beings, they need to belong, to be accepted by others. When
social needs become dominant, human being will strike to have meaningful
association with others. In an organization workers may form informal groups for
exchange of ideas. If management tries to have close supervision and control then
workers may retort against such environment. The communication among workers
should be encouraged to remove the irritants.
4. Esteem or Ego Needs:
The needs are concerned with self-respect, self-confidence feeling of being unique,
recognition, etc. The satisfaction of these needs brings confidence, power, control
and prestige. Some of the social problems have their roots in the un-fulfilment of
these needs.
5. Self-Fulfilment or Actualization Needs:
Self-fulfilment is the highest need in Maslow's hierarchy. This refers to the needs
which help an individual to develop his potentialities. He tries to do whatever he can
and has a sort of self- development. A person tries to do whatever he is capable of
doing. He tries to bring out something hidden in him. The self-fulfilment needs give
satisfaction to the person concerned and are good for the society also.
Maslow has categorized the needs in order of priority. An individual spends money
from one need to another. When one need is satisfied then the other becomes the
motivator. All the needs are interdependent. It is not necessary that only one need is
satisfied at one time. A person may move to other needs even if earlier needs are not
fully satisfied. When the peak of a need passes then it causes to be a motivator.

B. Herzberg's Two Factors or Motivation-Hygiene Theory

The psychologist Frederick Herzberg extended the work of Maslow and proposed a
new motivation theory popularly known as Herzberg's Motivation Hygiene (Two-
Factor) Theory. Herzberg conducted a widely reported motivational study on 200
accountants and engineers employed by firms in and around Western Pennsylvania.
He asked these people to describe two important incidents at their jobs:
(1) When did you feel particularly good about your job, and
(2) When did you feel exceptionally bad about your job?
He used the critical incident method of obtaining data. The responses when analysed
were found quite interesting and fairly consistent. The replies respondents gave when
they felt good about their jobs were significantly different from the replies given
when they felt bad. Reported good feelings were generally associated with job
satisfaction, whereas bad feeling with job dissatisfaction. Herzberg labelled the job
satisfiers motivators, and he called job dissatisfies hygiene or maintenance factors.
Taken together, the motivators and hygiene factors have become known as
Herzberg’s two-factor theory of motivation
Herzberg’s motivational and hygiene factors have been shown in the Table:
HERZBERG'S MOTIVATION- MAINTENANCE FACTORS
According to Herzberg, the opposite of satisfaction is not dissatisfaction. The
underlying reason, he says, is that removal of dissatisfying characteristics from a job
does not necessarily make the job satisfying. He believes in the existence of a dual
continuum. The opposite of 'satisfaction' is 'no satisfaction' and the opposite of
'dissatisfaction' is 'no dissatisfaction'. According to Herzberg, today's motivators are
tomorrow's hygiene because the latter stop influencing the behaviour of persons when
they get them. Accordingly, one's hygiene may be the motivator of another. However,
Herzberg's model is labelled with the following criticism also:
1. People generally tend to take credit themselves when things go well. They blame
failure on the external environment.
2. The theory basically explains job satisfaction, not motivation.
3. Even job satisfaction is not measured on an overall basis. It is not unlikely that a
person may dislike part of his/ her job, still thinks the job acceptable.
4. This theory neglects situational variable to motivate an individual. Because of its
ubiquitous nature, salary commonly shows up as a motivator as well as hygiene.
Regardless of criticism, Herzberg's 'two-factor motivation theory' has been widely
read. The main use of his recommendations lies in planning and controlling of
employee’s work.

C. Mc. GREGOR'S THEORY X AND THEORY Y

Douglas Mc. Gregor has presented two opposite views of human behaviour in the
organisation in the form of what he calls Theory "X' and Theory "Y'. Theory "X
represents the traditional view of human nature and behaviour, and emphasises the
need for control and direction over man. On the other hand, Theory Y indicates the
individual and organisation behaviour both and highlights the need for improving and
utilizing inner motivation. The basic assumptions about human nature and behaviour
in working according to both these theories are given below:
Theory X:
According to the traditional view of human behaviour, the following assumptions
hold good about the work behaviour of people:
1. The average individual has an inherent dislike of work and will avoid it if he can.
2. Most people must, therefore, be pressurized, controlled, directed, and threatened
by punishment by their superiors to get them put forth adequate efforts towards
organisational objectives.
3. The average human being prefers to be led, wishes to avoid responsibility, and has
relatively little ambition.
4. The average person actually prefers to be directed to being led on his own.
5. Most people are by nature resistant to change and look for security above all.
6. An average human being is inherently self-centred, and indifferent to
organisational goals
The above assumptions are negative in nature. According to Mc. Gregor, an
organisation built upon Theory 'X approach will be one in which there is close
supervision and control of subordinates and high centralisation of authority.
Leadership in such organisation will tend to be autocratic, and the workers will have
very little say in decisions affecting them.
Theory Y:
Mc. Gregor recognised certain needs that Theory X fails to take into account. These
relate to self-fulfilment, ego satisfaction and the social needs of the individual
workers. To meet these human needs in the organisation, Mc. Gregor suggested a
counter- approach to motivation in management called Theory Y'. Theory Y' is based
on the following assumptions:
1. People like to work. It is as natural as rest or play.
2. Man will exercise self-direction and self-control in the service of objectives to
which he is committed. External control or threat of punishment is not the only
means of motivating people to work and achieve organisational goals.
3. People commit themselves to those objectives which promise them the
satisfactions they want.
4. The average human being learns, under proper conditions, not only to accept
responsibility but also to seek it.
5. The capacity to exercise a relatively high degree of imagination, ingenuity and
creativity in the solution of organisational problems is widely distributed in the
population.
6. Under conditions of modern industrial life, the intellectual potentialities of people
are only partially utilised. In reality, people have unlimited potential.
7. Since the other needs of most of the people in work organisations are pretty well-
satisfied, the management authority can achieve better results through them by
appealing to their ego and development needs.
Theory 'Y' represents a modern and dynamic nature of human beings. According to
this theory, the manager is in charge of work, not people. So, he delegates freedom
rather than authority. An organisation designed on the basis of Theory Y is
characterised by decentralisation of authority, job enrichment, participative
leadership and two-way communication system.
The focus is on self-control and responsible jobs. Theory X places exclusive reliance
on external control of human behaviour, while Theory 'Y' relies on self- regulation. If
we relate Theory 'X and Theory 'Y to Maslow's hierarchy of needs theory, it may be
said that Theory X may be more applicable where a man is concerned with the lower
level of needs. Once he has an adequate level of satisfaction of the basic
physiological and safety needs, Theory "Y may be used for making an appeal to the
higher-level needs.
Qn) EXPLAIN CONTROLLING
Controlling is one of the managerial functions and it is an important element of the
management process. After the planning, organising staffing and directing have been
carried out, the final managerial function of controlling assures that the activities
planned are being accomplished or not. So, the function of controlling helps to
achieve the desired goals by planning. Management must, therefore, compare actual
results with pre-determined standards and take corrective action of necessary.
Control can be defined as the process of analysing whether actions are being taken as
planned and taking corrective actions to make these to confirm to planning.
QN) EXPLAIN AIMS OF CONTROLLING:
1. To find out the progress of the work-the work already completed and the work in
progress.
2. To compare the actual performance of the work at different stages with the
particulars indicated in the plans and policies.
3. To ascertain the time within which the work is completed.
4. To verify quantity and testing quality of the products.
5. To know the delays or interruptions, if any, in the performance of work and trace
the cause of such delay or breakdown.
6. To see that causes of delay are eradicated and operations are suitably re-scheduled.
7. To ensure that variations in the contents and methodology of work are remedied by
appropriate adjustments.
8. To assess the cost of materials and labour used and ensure that direct costs and
indirect costs do not exceed the budget provisions.
9. To pinpoint the responsibility on individuals at different levels for slackness,
indifference, or negligence, if any in the expected levels of performance.
10. To evaluate the value of the work performed and recognize the contributions of
the staff towards realisation of the goals of the enterprise.
11. To maintain discipline and morale in the organisation.
Qn) LIMITATIONS OF CONTROLLING
1. Difficulty in Setting Quantitative Standards:
It becomes very difficult to compare the actual performance with the predetermined
standards, if these standards are not expressed in quantitative terms. This is especially
so in areas of job satisfaction, human behaviour and employee morale.
2. No Control on External Factors:
An organization fails to have control on external factors like technological changes,
competition, government policies, changes in taste of consumers etc.
3. Resistance from Employees:
Often employees resist the control systems since they consider them as curbs on their
freedom. For example, surveillance through closed circuit television (CCTV).
4. Costly Affair:
Controlling involves a lot of expenditure, time and effort, thus it is a costly affair.
Managers are required to ensure that the cost involved in installing and operating a
control system should not be more than the benefits expected from it.
Qn) EXPLAIN STEPS IN CONTROLLING FUNCTIONS( PROCESS)
 The basic control process, wherever it is found
 Establishment of standards
 Measuring actual performance
 Comparing actual performance against the standards
 Taking corrective actions.
ESTABLISHMENT OF STANDARDS
 The first step in the processof controlling is
concerned with setting performance standards.
 These standards are the basis for measuring the actual performance.
 Thus, standards act as a lighthouse that
warns & guides the ships at sea.
 Standards are the benchmarks towards which
efforts of entire organization are directed.
 These standards can be expressed both in quantitative and qualitative
terms.
MEASURING ACTUAL PERFORMANCE
 Once the standards have been determined, the next step is to measure the
actual performance.
 The various techniques for measuring are sample checking,
performance reports, personal observation etc.
 However, in order to facilitate
easy comparison, the performance should be measured on
same basis that the standards have.

COMPARING ACTUAL PERFORMANCE AGAINST THE STANDARDS.

 This step involves comparing the actual performance
with standards laid down in order to find the deviations.
 For example, performance of a salesman in terms of unit sold in a week can
be easily measured against the standard output
 for the week.
TAKING CORRECTIVE ACTIONS.

The last step in the process of controlling involves taking corrective

action. If the deviations are within acceptable limits, no corrective
measure is required. However, if the deviations exceed acceptable
limits, they should be immediately brought to the notice of the
management for taking corrective measures, especially in the
important areas.