KOSHYS INSTITUTE OF MANAGEMENT STUDIES

MANAGEMENT BEHAVIORAL PROCESS

UNIT-01: Introduction to principles of management-Management – Meaning, Scope & Functions-Levels
of Management.-Planning, Organizing, Staffing, Directing, Controlling-General Principles of
Management-Taylor’s & Fayol’s Principles.-Scientific Management, Managerial Skills.

Management
 MEANING
 Is An Art Of Getting Work Done Through Others.
The attainment of organizational goals in an effective and efficient manner through planning, organizing,
staffing, directing and controlling organizational resources. Organizational resources include men(human
beings), money, machines and materials.
Scope Management:
Office Management: folks that hold workplace management positions conduct special studies and
supported the results of those special studies, they develop reports. Excluding developing reports, they
additionally give input of management on the event of policies and procedures. Workplace management
may additionally offer paraprofessional support and should draft correspondence for management
schedule appointments etc.
Financial Management: financial Management may be outlined as- “The management of the finances of
a business or organization so as to attain financial objectives.” Taking an advert business because the
most typical structure, they key objectives of economic management would be to
Production Management: planning, implementation and management of business production processes
to confirm sleek and economical operation. Production management techniques are employed in each
producing and services industries. Production management responsibilities include the standard 5 M’ S
men and girls, machines, methods, materials and cash. Managers are expected to take care of an
economical production method with a manpower which will without delay adapt to new instrumentality
and schedules. They will use engineering ways, like time and motion studies, to design economical work
ways. They’re answerable for managing each physical material and knowledge materials (paperwork or
electronic documentation). of their duties involving cash, inventory control is that the most vital.
Personal Management: Personal management is answerable for providing specialist personnel and
human resource management informative services to schools, colleges and services. It additionally
develops and implements a relevant, coherent and fashionable framework of employment policies and
practices throughout the university.
Each member of personnel management is answerable for providing these specialist services to variety of
selected departments or in respect to a selected space of labor. This distribution is understood because the
personnel management portfolio, that additionally includes Equality and variety Equality and variety
portfolios.
Personnel Management is additionally answerable for delivering the human resource strategy and
associated programmes of work.
Marketing Management: marketing management could be a business discipline that is targeted on the
sensible application of marketing techniques and also the management of a firm marketing resources and
activities. There is more information about Managers as a Decision Maker in Business Management
Functions of Management
There are five major functions of management which are given below:

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1. Planning
2. Organising
3. Staffing
4. Directing
5. Controlling
6. Other Functions of Management

Planning- It involves anticipating all possible future conditions and deciding the future course of action.
In other words, planning involves setting future goals and objectives and devising the methods and means
for achieving those objectives. The function is carried out at all levels of an organisation i.e., top, middle
and lower management levels, and in all divisions, departments, business units and sub-units.
Organising- It involves two major activities: one is to establish an organisational structure and the other
is to arrange all necessary resources (such as men, machines, materials, methods, money and market) so
that work can be performed effectively.
An organisational structure is a diagrammatic representation of how different roles, powers, authorities
and responsibilities are assigned in an organisation. You will study the organisational structure and its
functions in detail later in the book.
Staffing- This function is all about recruiting people with the required skill sets. It involves evaluating the
existing skills and knowledge of candidates before offering them specific job roles. Staffing is an ongoing
function as employees keep on leaving and joining an organisation.
Directing- After the managers have established goals, created the organisational structure, recruited
people and trained them, it is time for directing the employees and facilitating coordination among them
so that work can be performed on time in order to meet the set goals.

Controlling- This function involves ensuring that work is performed as per the plans developed and
instructions issued. The controlling function includes three main activities, which are:
 Establishing the required performance standards
 Assessing the current performance level and comparing it with the established standards
 Take corrective actions in case the actual performance deviates from the established standards.
Other Functions of Management
1. Coordinating
2. Reporting
3. Budgeting

Coordinating- This key function of management implies interrelating the various work components and
processes to ensure smooth functioning in an organisation. Coordination is used to synchronise and
integrate the activities, responsibilities, command control, structures and resources of an organisation to
achieve organisational objectives.

Reporting- This function of management is significant for controlling and planning functions. The
reporting function involves giving a regular update to the superiors about the progress of the work
assigned to subordinates. The information is disseminated through records or inspection.
Budgeting
The budgeting function of management comprises all the activities that fall under auditing, accounting,
fiscal planning and control. Budgeting is used to do all forms of planning related to the sources of
income, accounting and control of expenditures.
It is the process of creating a plan to spend the available money. It is used to determine in advance
whether an organisation has enough money to execute activities smoothly or not.

Levels of Management

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Management involves a set of functions performed by people in an organisation who are bound together
in a hierarchy of relationships. Every person in the organisational hierarchy is responsible for the
successful completion of particular tasks. To perform these tasks successfully and make decisions,
individuals are given a certain degree of authority, which lead to the creation of different levels in the
organisational hierarchy.

Top-level management
This level is comprised of corporate heads, such as chief executive officer (CEO), chief financial officer
(CFO), chief operating officer (COO), and chief information officer (CIO), president, vice president,
chairman, managing directors and executive directors. These corporate heads are responsible for
performing the following functions:
 Determining organisational goals and objectives and formulating plans, strategies and policies
accordingly
 Organising and arranging resources
 Communicating with the public, government and other external agencies
 Controlling and overseeing organisational activities
 Preparing long-term plans (usually for 5 years or more) and making strategic (strategy-level) decisions
Middle-level management
This level comprises business heads, such as departmental heads, general managers and regional
managers. These business heads are responsible for performing the following functions:
 Subordinating the top-level management
 Supervising the lower-level management
 Organising departmental activities
 Recruiting and selecting the workforce
 Controlling resources and executing organisational plans
 Ensuring adherence to the organisation’s policies
 Acting as a connecting link between the top-level and lower-level management
 Co-ordinating and communicating
 Preparing short-term plans (usually for 1-5 years or more)
 Compiling the relevant data and generating reports for top-level management

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 Motivating lower-level managers

Lower-level management
This level includes functional heads, such as supervisors and team leaders, who are primarily responsible
for the following functions:
 Supervising baseline workers and putting plans into actions
 Helping middle-level managers in the recruitment and selection process
 Making operational or functional-level decisions
 Controlling and directing the work of baseline workers
 Communicating with baseline workers about the decisions of middle and top levels of management.
 Preparing daily, weekly or monthly plans
PLANNING
MEANING:
Planning is the process of thinking regarding the activities required to achieve a desired goal.
Planning is based on foresight, the fundamental capacity for mental time travel. The evolution of
forethought, the capacity to think ahead, is considered to have been a prime mover in human evolution.

Increases efficiency: Planning makes optimum utilization of all available resources. It helps
to reduce the wastage of valuable resources and avoids their duplication. It aims to give the
highest returns at the lowest possible cost. It thus increases the overall efficiency.
Reduces business-related risks: There are many risks involved in any modern business.
Planning helps to forecast these business-related risks. It also helps to take the necessary

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precautions to avoid these risks and prepare for future uncertainties in advance. Thus, it
reduces business risks.
Facilitates proper coordination: Often, the plans of all departments of an organization are
well coordinated with each other. Similarly, the short-term, medium-term and long-term
plans of an organization are also coordinated with each other. Such proper coordination is
possible only because of efficient planning.
Aids in Organizing: Organizing means to bring together all available resources, i.e. 6 Ms.
Organizing is not possible without planning. It is so, since, planning tells us the number of
resources required and when are they needed. It means that planning aids in organizing in an
efficient way.
Gives right direction: Direction means to give proper information, accurate instructions
and useful guidance to the subordinates. It is impossible without planning. It is because
planning tells us what to do, how to do it and when to do it. Therefore, planning helps to
give the right direction.
Keeps good control: With control, the actual performance of an employee is compared with
the plans, and deviations (if any) are found out and corrected. It is impossible to achieve
such control without the right planning. Therefore, planning becomes necessary to keep
good control.
Helps to achieve objectives: Every organization has certain objectives or targets. It keeps
working hard to fulfill these goals. Planning helps an organization to achieve these aims, but
with some ease and promptness. Planning also helps an organization to avoid doing some
random ( done by chance) activities.
Motivates personnel: A good plan provides various financial and non-financial incentives
to both managers and employees. These incentives motivate them to work hard and achieve
the objectives of the organization. Thus, planning through various incentives helps to
motivate the personnel of an organization.
Encourages creativity and innovation: Planning helps managers to express their creativity
and innovation. It brings satisfaction to the managers and eventually a success to the
organization.
Helps in decision-making: A manager makes many different plans. Then the manager
selects or chooses the best of all available strategies. Making a selection or choosing
something means to take a decision. So, decision-making is facilitated by planning.

STEPS / PROCESS OF PLANNING

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1] Recognizing Need for Action

An important part of the planning process is to be aware of the business opportunities in the firm’s
external environment as well as within the firm. Once such opportunities get recognized the
managers can recognize the actions that need to be taken to realize them. A realistic look must be
taken at the prospect of these new opportunities and SWOT analysis should be done.
Say for example the government plans on promoting cottage industries in semi-urban areas. A firm
can look to explore this opportunity.
2] Setting Objectives
This is the second and perhaps the most important step of the planning process. Here we establish
the objectives for the whole organization and also individual departments. Organizational objectives
provide a general direction, objectives of departments will be more planned and [Link]
can be long term and short term as well. They indicate the end result the company wishes to
achieve. So objectives will percolate down from the managers and will also guide and push
the employees in the correct direction.
Planning is always done keeping the future in mind, however, the future is always uncertain. So in
the function of management certain assumptions will have to be made. These assumptions are the
premises. Such assumptions are made in the form of forecasts, existing plans, past policies, etc.
4] Identifying Alternatives
The fourth step of the planning process is to identify the alternatives available to the managers.
There is no one way to achieve the objectives of the firm, there is a multitude of choices. All of
these alternative courses should be identified. There must be options available to the
[Link] he chooses an innovative alternative hoping for more efficient results. If he does
not want to experiment he will stick to the more routine course of action. The problem with this step

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is not finding the alternatives but narrowing them down to a reasonable amount of choices so all of
them can be thoroughly evaluated.
5] Examining Alternate Course of Action- The next step of the planning process is to evaluate and
closely examine each of the alternative plans. Every option will go through an examination where all
there pros and cons will be weighed. The alternative plans need to be evaluated in light of the
organizational objectives.
For example, if it is a financial plan. Then it that case its risk-return evaluation will be done.
Detailed calculation and analysis are done to ensure that the plan is capable of achieving the
objectives in the best and most efficient manner possible.
6] Selecting the Alternative-Finally, we reach the decision making stage of the planning process.
Now the best and most feasible plan will be chosen to be implemented. The ideal plan is the most
profitable one with the least amount of negative consequences and is also adaptable to dynamic
situations.
The choice is obviously based on scientific analysis and mathematical equations. But a managers
intuition and experience should also play a big part in this decision. Sometimes a few different
aspects of different plans are combined to come up with the one ideal plan.
7] Formulating Supporting Plan-Once you have chosen the plan to be implemented, managers will
have to come up with one or more supporting plans. These secondary plans help with the
implementation of the main plan. For example plans to hire more people, train personnel, expand
the office etc are supporting plans for the main plan of launching a new product. So all these
secondary plans are in fact part of the main plan.
8] Implementation of the Plan- And finally, we come to the last step of the planning process,
implementation of the plan. This is when all the other functions of management come into play and
the plan is put into action to achieve the objectives of the organization. The tools required for such
implementation involve the types of plans- procedures, policies, budgets, rules, standards etc.
OBJECTIVES OF PLANNING

Forecast’s the Course:

The most important ingredient of planning is forecasting. This is basically plan development as
per policies and requirement of the organization.

Forward Bearing:

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Planning provides specific forward momentum to all the activities in the organization by chalking
out the future working procedure.

Assured Activities:
Planning drafts the policies, working procedure and decides controlling process for the activities in
an organization so that confidence level increases in employees & management regarding the
accomplishment of predefined goals.

Forecast’s the Risk:

Planning forecasts the future threats, therefore technical strategies are most often planned and
decided in advance to overcome the inconsistency or tackle the problems successfully.

Helps in Establishing Co-ordination:

Planning is the forefront initiator in any organization regarding coordination. This coordinates all
the departments and also policies, procedures, objectives, etc. in business or industrial unit.

Develops in Facing Competition:

Assists and develops the organization to face competitions of all sorts and in all aspects. This
strategic process is part of the objectives of planning.

Managing Budgetary Targets:

Budgetary Targets are executed & achieved as per the planning. It is a helping hand in planned
budget utilization.

Present Important Information’s:

Planning makes available adequate information and communicates it to the employees in the
organization as well as presents a positive picture of organization, its policies, functioning and
results to the outside world.

Economy in Management:
Having better coordination in an organization between employees & management the pre decided
goals proceed as per the requirement, all types of wastage's is brought to the minimum. This helps
in achieving the efficiency in the overall economy of management.

Supports in Maintaining Healthy Competition:

The employees in an organization are in continuous competition among the fellow employees of
any specific department because actual job performance & achievement is the base criteria for any
future incentive or promotion. This may bring jealousy or utilization of unfair job hindering
techniques in performing different activities to the fellow employees, which ultimately slows the
overall goals of any business or industrial unit.

TYPES OF PLAN

STRATEGIC PLANS
To best understand the relationship between the different types of plans, let's start at the top. Strategic
plans are designed with the entire organization in mind and begin with an organization's mission. Top-

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level managers, such as CEOs or presidents, will design and execute strategic plans to paint a picture of
the desired future and long-term goals of the organization. Essentially, strategic plans look ahead to where
the organization wants to be in three, five, even ten years. Strategic plans, provided by top-level
managers, serve as the framework for lower-level planning.
Tommy is a top-level manager for Nino's Pizzeria. As a top-level manager, Tommy must use strategic
planning to ensure the long-term goals of the organization are reached. For Tommy, that means
developing long-term strategies for achieving growth, improving productivity and profitability, boosting
return on investments, improving customer service and finding ways to give back to the community in
which it operates.
For example, Tommy's strategic plans for achieving growth, improving productivity and profitability and
boosting return on investments are all part of the desired future of the pizzeria. Strategic plans also tend to
require multilevel involvement so that each level of the organization plays a significant role in achieving
the goals being strategically planned for. Top-level managers, such as Tommy, develop the organizational
objectives so that middle- and lower-level managers can create compatible plans aligned with those
objectives.
Tactical Plans
Now that you have a general idea for how organizational planning evolves, let's look at the next level of
planning, known as tactical planning. Tactical plans support strategic plans by translating them into
specific plans relevant to a distinct area of the organization. Tactical plans are concerned with the
responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.
For example, when Martha, the middle-level manager at Nino's, learns about Tommy's strategic plan for
increasing productivity, Martha immediately begins to think about possible tactical plans to ensure that
happens. Tactical planning for Martha might include things like testing a new process in making pizzas
that has been proven to shorten the amount of time it takes for prepping the pizza to be cooked or perhaps
looking into purchasing a better oven that can speed up the amount of time it takes to cook a pizza or even
considering ways to better map out delivery routes and drivers. As a tactical planner, Martha needs to
create a set of calculated actions that take a shorter amount of time and are narrower in scope than the
strategic plan is but still help to bring the organization closer to the long-term goal.
Operational Plans
Operational plans are the plans that are made by frontline, or low-level, managers. All operational plans
are focused on the specific procedures and processes that occur within the lowest levels of the
organization. Managers must plan the routine tasks of the department using a high level of detail.
Frank, the frontline manager at Nino's Pizzeria, is responsible for operational planning. Operational
planning activities for Frank would include things like scheduling employees each week; assessing,
ordering and stocking inventory; creating a monthly budget; developing a promotional advertisement for
the quarter to increase the sales of a certain product (such as the Hawaiian pizza) or outlining an
employee's performance goals for the year.
Operational plans can be either single-use or ongoing plans. Single-use plans are those plans that are
intended to be used only once. They include activities that would not be repeated and often have an
expiration.
Decision making

Decision making is the process of making choices by identifying a decision, gathering information,
and assessing alternative resolutions. Using a step-by-step decision-making process can help you

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make more deliberate, thoughtful decisions by organizing relevant information and defining
alternatives.

Decision making is a process of selecting the best course of action or plan from different
alternatives available. It is a means through which managers takes action for solving the problem.
This is an integral part of the management system of the company which aims at improving
efficiency. Decision making is the one through which managers are able to take right decisions at
right time.

Importance of Decision Making

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Selection Of Best Alternative

Decision making has an important role in the selection of the best course of action timely. There
are different solutions available to tackle any problem. Selection of best action involves proper
analysis of the situation by decision-maker using various accounting, financial and statistical
tools. Proper decision making enables the decision-maker to properly analyse all aspects and
choose the most appropriate action.
Ensures Continuity Of Business
Every business is required to take different decisions routinely for the successful operation of its
activities. Taking the right decision timely is important for every business and any wrong
decision would lead to negative consequences. Business is required to decide various courses of
action related to its production, marketing, sales and various expansion programmes. In today’s
high competition, market business can only exist if takes appropriate decisions. Decision-making
process helps businesses in facing this competition by taking the right decisions.
Fuller Utilisation Of Resources
Efficient utilisation of all resources of an organisation is a must for achievement of its goals and
objectives. Every organisation has the following main resources: men, money, material, machine,
method, market and information. All these resources should be properly utilised without any
wastage. Managers through efficient decision making are able to take corrective actions
regarding using these resources. It helps in ensuring that all resources are fully utilised thereby
improving productivity.
Formulation Of Plans And Policies
Decision making process has direct relation with the establishment of plans and policies. Every
organisation operates to achieve certain goals. For the achievement of these goals, framing
proper plans and policies is a must. Plan and policies are the initial part of decision making
process. Proper decision making enables the managers in proper implementation of these policies
to achieve the desired goals.
Achievement Of Objectives
Proper Decision making helps in achievement of goals and objectives of the organisation. All
organisations strive hard to attain their objectives. These objectives are termed as guiding factors
for all operations of the business. Taking of proper actions at a proper time helps in the

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achievement of these objectives. Decision making process helps the managers in properly
analysing the situation and selecting the most appropriate action.
Facilitates Innovation
Innovation is something which is required to be adopted by every business as per market
changes. Proper decision making facilitates innovation. Innovation brings new products, new
process and new ideas in every organisation. Implementing these changes require proper
planning and decision making. Rational decisions taken by management help in adopting these
innovative ideas easily.
Helps In Business Growth
Quick and rational decision taking helps in improving the productivity and efficiency of
business. It helps in fuller and efficient utilisation of resources. Better decision making helps the
business in easily facing the challenges and problems of the market. All these eventually lead to
the achievement of business goals and also help in business growth.
Evaluates Managerial Performance
Decision making is primary function performed by every management team. Number of right
decisions taken by managers determines the quality of management. Effectiveness of decisions
clearly tells how far the managers are delivering their roles and duties. Wrong decisions taking
clearly depict the failures of management in performing their function. This way decision
making helps in evaluating the performance of management team
DECISION MAKING PROCESS OR STEPS

7 Steps in Decision Making Process


 Identification of Problems

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 Analysis of Problems
 Development of Alternatives
 Evaluation of Alternatives
 Selection of Best Alternative
 Implementation of Alternative
 Review of Implementation

Step 1: Identification of Problems
The first and most important step of the decision-making process is to identify the main problems.
Problems may arise due to the internal and external factors of an organization.

It is believed that the identification of problems is the completion of half of the decision-making
process. Identifying the problem is similar to diagnosing a disease, which helps in providing the
right medicine to the patients. And when a problem is correctly understood, it becomes easy to
solve.

Step 2: Analysis of Problems

After completing the first step another step of the decision-making process is analyzing the
identified problems. For this, a decision-maker has to accumulate all the facts, data, and
information related to problems.
Analyzing the problems is a part of the decision-maker to study the main reasons of problems and
their impact on short as well as long term organizational performance. A quick analysis of the
problem by accumulating all the related facts, data, and information is a must to find out the actual
source of problems.

Step 3: Development of Alternatives

A problem may have various alternatives solutions. The decision-maker has to identify and study
all the possible solutions. A decision-maker should be creative and innovative to identify all the
alternative solutions.
He can identify the alternatives from the various sources like records and files of problems,
opinions, and views of experts, the discussions with subordinates, creditors, customers, etc.
The more clearly identified alternatives provide more freedom for brainstorming. A manager
should concentrate on developing and finding those alternatives, which are strategic to the
problems. Therefore, the development of alternative solutions is mental and creative work that
requires discussion and creativity.

Step 4: Evaluation of Alternatives

Here every alternative is evaluated and studied in terms of the decision-making process. All
alternatives should be studied by considering the efforts involved and the outcome expected.
Generally, the following queries are taken into consideration while evaluating any alternative
solution, firstly, whether the alternative solution is feasible in terms of costs, time, legal,
constraints, human and other resources, secondly, whether the alternative is satisfactory for solving
problems, thirdly, whether the consequences of alternative are favorable to the organization.

Step 5: Selection of Best Alternative

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This is the final stage of the decision-making process after the evaluation of various alternatives.
Here the best feasible alternative is being selected. For the best alternative manager should
consider short-term as well as long-term impacts on organizational performance.
The decision-maker has to consider the above approaches to analyze and select the best solution.
He has to select an alternative considering the feasibility, satisfactoriness, and financial soundness
of the organization. The selection of the best solution helps for implementation and to gain positive
outcomes in organizational objectives.

Step 6: Implementation of Alternative

This is the operational part of the decision-making process. A decision can be made by evaluating
the alternatives with the help of available resources but implementing them is quite difficult. The
efficiency of the decision-maker is measured in terms of effective implementation of the decision.
Step 7: Review of Implementation
Reviewing the implementation means knowing its actual performance it. As decision-making is a
continuous process it is necessary to evaluate the performance from time to time.
A follow-up and review of actual achievement are essential. In case the implementation does not
give the desired results, it is necessary to involve in the modification of procedures and techniques
that can be made to bring the work to the desired track. It also helps in taking an appropriate
decision at the right time.

Directing
Directing refers to a process or technique of instructing, guiding, inspiring, counselling, overseeing
and leading people towards the accomplishment of organizational goals. It is a continuous
managerial process that goes on throughout the life of the organization.
Principles of Directing
1. Maximum Individual Contribution
One of the main principles of directing is the contribution of individuals. Management should adopt
such directing policies that motivate the employees to contribute their maximum potential for the
attainment of organizational goals.
2. Harmony of Objectives
Sometimes there is a conflict between the organizational objectives and individual objectives. For
example, the organization wants profits to increase and to retain its major share, whereas, the
employees may perceive that they should get a major share as a bonus as they have worked really
hard for it.
Here, directing has an important role to play in establishing harmony and coordination between the
objectives of both the parties.
3. Unity of Command
This principle states that a subordinate should receive instructions from only one superior at a time.
If he receives instructions from more than one superiors at the same time, it will create confusion,
conflict, and disorder in the organization and also he will not be able to prioritize his work.
4. Appropriate Direction Technique
Among the principles of directing, this one states that appropriate direction techniques should be used
to supervise, lead, communicate and motivate the employees based on their needs, capabilities,
attitudes and other situational variables.

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5. Managerial Communication
According to this principle, it should be seen that the instructions are clearly conveyed to the
employees and it should be ensured that they have understood the same meaning as was intended to
be communicated.
6. Use of Informal Organization
Within every formal organization, there exists an informal group or organization. The manager should
identify those groups and use them to communicate information. There should be a free flow of
information among the seniors and the subordinates as an effective exchange of information are really
important for the growth of an organization.
7. Leadership
Managers should possess a good leadership quality to influence the subordinates and make them work
according to their wish. It is one of the important principles of directing.
8. Follow Through
As per this principle, managers are required to monitor the extent to which the policies, procedures,
and instructions are followed by the subordinates. If there is any problem in implementation, then the
suitable modifications can be made.
CONTROLLING
Controlling is a function of management which helps to check errors in order to take corrective
actions. This is done to minimize deviation from standards and ensure that the stated goals of the
organization are achieved in a desired manner.
STEPS /PROCESS IN CONTROLLING

1. Setting Performance Standards:

Standards are the criteria, against which actual performance would be measured. These serve as
benchmarks, towards which an organisation strives to [Link] first step of the control process
is to establish standards, against which actual results are to be evaluated. Standards are set in
quantitative as well as qualitative terms. But, managers should try to set standards in quantitative
terms, which can be easily measured and compared later on. If standards are set in qualitative
terms, an effort must be made to define them clearly for easy measurement. Due to changes
taking place in internal and external environment, standards need to be revised regularly.
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2. Measurement of actual performance: Once the standards are fixed, the next step is to
measure the actual performance. Generally, it is conducted by the managers to analyse the
overall efficiency level of the employees. While measuring the performance, objective and
reliable methods should be used, such as sample checking, preparing reports, personal
observation, etc.
Measurement should be done after the task is completed. However, sometimes performance can
be measured during the performance to ensure regular control over the activities. Usually, in
large organisations, certain pieces are checked at random, instead of checking the whole lot. This
is called sample checking.
3. Comparing Actual Performance with Standards: This step involves comparison of actual
performance with the standard. Such comparison helps in revealing the deviations between
actual and desired results. Comparison becomes easier when standards are set in quantitative
terms.
4. Analysing Deviations: Under this step, deviations in key areas of business need to be attended
on urgent basis as compared to deviations in certain insignificant areas. There is a need to
determine the acceptable range of deviations in all operational areas. Following points should be
kept in mind, while analysing deviations:
Critical point control: According to this principle, control system should first focus on Key
Result Areas (KRAs) which are critical to the success of the organisation. It is because, it is not
possible to keep a check on all the activities of the enterprise. Therefore, if anything goes wrong
at the critical points or key areas, immediate action should be taken.
Management/control by Exception: It suggests that, if manager tries to control everything, he
may end up in controlling nothing.
[Link] corrective Action: This is the final step in which manager takes corrective measures to bring
back everything on track in the organisation i.e. according to set plans, corrections are required in KRAs,
which are critical to the success of the success of the organisation, or, in areas where deviations go
beyond the permissible [Link] action may involve training of employees, hiring labour for extra
time, replacement of machinery, etc. sometimes, if deviations cannot be corrected despite the best efforts
of managers, standards may be revised.
ESSENTIALS OF EFFECTIVE CONTROL SYSTEM
Setting Up Standards
First of all, the standard is set up by managers. These basically include the goals and objectives
of the concerned business which it needs to attain. These become the parameters for measuring
the performance and helps in finding out the deviations.
Measurement Of The Performance Of The Organization
It involves measuring and monitoring the actual performance of the organization. This step is
important as unless and until performance is not measured it can’t be known whether standards
are met or not.
Comparison Of The Performance

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It starts with matching the above-measured performance with the pre-set standards. It helps in
finding out the percentage and degree of deviations in performance and deciding whether the
outcome should be accepted or not.
Analyzing The Deviations
It involves accessing the deviations in the outcome and finding out their reasons and nature. It
helps in finding outsource of deviations in performance.
Taking Remedial ActionsOnce deviations are found in the performance, the managers take steps
to remove these deviations so the actual standards can be met and also make changes in the
overall processes.
Control Based On Feedback
It starts with gathering the complete information once the work is finished, checking that
information collected and taking steps to improve the work quality in future.
Control Based On Concurrent
It is termed as real-time controlling. It involves accessing the operations and activities from time
to time and taking action accordingly to avoid any loss.
Control Based On Prediction
It involves predicting the future conditions and taking actions accordingly before any wrong
situation arrived so that performance is not affected.
Organizing
Definition: Organizing is the second key management function, after planning, which
coordinates human efforts, arranges resources and incorporates the two in such a way which
helps in the achievement of objectives. It involves deciding the ways and means with which the
plans can be implemented.
Importance of Organizing
A comprehensive approach to organizing helps the management in many ways. Organizing aligns the
various resources towards a common mission.
Efficient Administration
It brings together various departments by grouping similar and related jobs under a single specialization.
This establishes coordination between different departments, which leads to unification of effort and
harmony in work.
It governs the working of the various departments by defining activities and their authority relationships
in the organizational structure. It creates the mechanism for management to direct and control the various
activities in the enterprise.
Resource Optimization
Organizing ensures effective role-job-fit for every employee in the organization. It helps in avoiding
confusion and delays, as well as duplication of work and overlapping of effort.
Benefits Specialization
It is the process of organizing groups and sub-divide the various activities and jobs based on the concept
of division of labor. This helps in the completion of maximum work in minimum time ensuring the benefit
of specialization.
Promotes Effective Communication
Organizing is an important means of creating coordination and communication among the various
departments of the organization. Different jobs and positions are interrelated by structural relationship. It
specifies the channel and mode of communication among different members.

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Creates Transparency
The jobs and activities performed by the employees are clearly defined on the written document called job
description which details out what exactly has to be done in every job. Organizing fixes the authority-
responsibility among employees. This brings in clarity and transparency in the organization.
Expansion and Growth
When resources are optimally utilized and there exists a proper division of work among departments and
employees, management can multiply its strength and undertake more activities. Organizations can easily
meet the challenges and can expand their activities in a planned manner.

PRINCIPLES OF ORGANIZING

Work Specialization
Also called division of labor, work specialization is the degree to which organizational tasks are divided
into separate jobs. Each employee is trained to perform specific tasks related to their specialized function.
Specialization is extensive, for example running a particular machine in a factory assembly line. The
groups are structured based on similar skills. Activities or jobs tend to be small, but workers can perform
them efficiently as they are specialized in it.
Authority
Authority is the legitimate power assigned to a manager to make decisions, issue orders, and allocate
resources on behalf of the organization to achieve organizational objectives.
Authority is within the framework of the organization structure and is an essential part of the manager’s
job role. Authority follows a top-down hierarchy. Roles or positions at the top of the hierarchy are vested
with more formal authority than are positions at the bottom.
The extent and level of authority is defined by the job role of the manager. Subordinates comply with the
manager’s authority as it is a formal and legitimate right to issue orders.
Chain of Command
The chain of command is an important concept to build a robust organization structure. It is the unbroken
line of authority that ultimately links each individual with the top organizational position through a
managerial position at each successive layer in between.
It is an effective business tool to maintain order and assign accountability even in the most casual working
environments. A chain of command is established so that everyone knows whom they should report to and
what responsibilities are expected at their level. A chain of command enforces responsibility and
accountability. It is based on the two principles of Unity of command and Scalar Principle.
Unity of command states that an employee should have one and only one manager or supervisor or
reporting authority to whom he is directly accountable to. This is done to ensure that the employee does

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not receive conflicting demands or priorities from several supervisors at once, placing him in a confused
situation.
Delegation
Another important concept closely related to authority is delegation. It is the practice of turning over work-
related tasks and/or authority to employees or subordinates. Without delegation, managers do all the work
themselves and underutilize their workers. The ability to delegate is crucial to managerial success.
Delegation as a process involves establishment of expected outcomes, task assignment, delegation of
authority for accomplishing these tasks, and exaction of responsibility for their accomplishment.
Delegation leads to empowerment, as employees have the freedom to contribute ideas and do their jobs in
the best possible ways.
Span of Control
Span of control (also referred to as Span of Management) refers to the number of employees who report
to one manager. It is the number of direct reportees that a manager has and whose results he is accountable
for.
Span of control is critical in understanding organizational design and the group dynamics operating within
an organization. Span of control may change from one department to another within the same organization.
The span may be wide or narrow. A wide span of control exists when a manager has a large number of
employees reporting to him. Such a structure provides more autonomy. A narrow span of control exists
when the number of direct reportees that a manager has is small. Narrow spans allow managers to have
more time with direct reports, and they tend to spark professional growth and advancement.
Staffing
Staffing is the process of hiring eligible candidates in the organization or company for specific positions. In
management, the meaning of staffing is an operation of recruiting the employees by evaluating their skills,
knowledge and then offering them specific job roles accordingly.
Importance of Staffing
Efficient Performance of Other Functions
For the efficient performance of other functions of management, staffing is its key. Since, if an organization
does not have the competent personnel, then it cannot perform the functions of management like planning,
organizing and control functions properly.
Effective Use of Technology and Other Resources
What is staffing and technology’s connection? Well, it is the human factor that is instrumental in the effective
utilization of the latest technology, capital, material, etc. the management can ensure the right kinds of
personnel by performing the staffing function.
Optimum Utilization of Human Resources
The wage bill of big concerns is quite high. Also, a huge amount is spent on recruitment, selection, training,
and development of employees. To get the optimum output, the staffing function should be performed in an
efficient manner.
Development of Human Capital
Another function of staffing is concerned with human capital requirements. Since the management is required
to determine in advance the manpower requirements. Therefore, it has also to train and develop the existing
personnel for career advancement. This will meet the requirements of the company in the future.
The Motivation of Human Resources
In an organization, the behaviour of individuals is influenced by various factors which are involved such as
education level, needs, socio-cultural factors, etc. Therefore, the human aspects of the organization have
become very important and so that the workers can also be motivated by financial and non-financial
incentives in order to perform their functions properly in achieving the objectives.
Building Higher Morale
The right type of climate should be created for the workers to contribute to the achievement of the
organizational objectives. Therefore, by performing the staffing function effectively and efficiently, the

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management is able to describe the significance and importance which it attaches to the personnel working in
the enterprise.
Steps involved in Staffing Process
1. Manpower Planning
2. Recruitment
3. Selection
4. Placement
5. Training
6. Development
7. Promotion
8. Transfer
9. Appraisal
10. Determination of Remuneration
Now, the process of Staffing can be explained in the following ways as follows-
1. Manpower Planning
Manpower planning can be regarded as the quantitative and qualitative measurement of labour force required
in an enterprise. Therefore, in an overall sense, the planning process involves the synergy in creating and
evaluating the manpower inventory and as well as in developing the required talents among the employees
selected for promotion advancement
2. Recruitment
Recruitment is a process of searching for prospective employees and stimulating them to apply for jobs in the
organization. It stands for finding the source from where potential employees will be selected.
3. Selection
Selection is a process of eliminating those who appear unpromising. The purpose of this selection process is
to determine whether a candidate is suitable for employment in the organization or not. Therefore, the main
aim of the process of selection is selecting the right candidates to fill various positions in the organization. A
well-planned selection procedure is of utmost importance.
4. Placement
Placement means putting the person on the job for which he is selected. It includes introducing the employee
to his job.
5. Training
After selection of an employee, the important part of the programmed is to provide training to the new
employee. With the various technological changes, the need for training employees is being increased to keep
the employees in touch with the various new developments.
6. Development
A sound staffing policy provides for the introduction of a system of planned promotion in every organization.
If employees are not at all having suitable opportunities for their development and promotion, they get
frustrated which affect their work.
7. Promotions
The process of promotion implies the up-gradation of an employee to a higher post involving increasing rank,
prestige and responsibilities. Generally, the promotion is linked to increment in wages and incentives but it is
not essential that it always relates to that part of an organization.
8. Transfer
Transfer means the movement of an employee from one job to another without increment in pay, status or
responsibilities. Therefore this process of staffing needs to evaluated on a timely basis.
9. AppraisalAppraisal of employees as to how efficiently the subordinate is performing a job and also to
know his aptitudes and other qualities necessary for performing the job assigned to him.
10. Determination of Remuneration
This is the last process which is very crucial as it involves in determining remuneration which is one of the
most difficult functions of the personnel department because there are no definite or exact means to determine
correct wages.

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HENRI FAYOLTHE FOURTEEN PRINCIPLES OF MANAGEMENT

Henry Fayol, also known as the ‘father of modern management theory’ gave a new perception of the concept
of management. He introduced a general theory that can be applied to all levels of management and every
department. The Fayol theory is practised by the managers to organize and regulate the internal activities of
an organization. He concentrated on accomplishing managerial efficiency.
1. Division of Work-Henri believed that segregating work in the workforce amongst the worker will enhance
the quality of the product. Similarly, he also concluded that the division of work improves the productivity,
efficiency, accuracy and speed of the workers. This principle is appropriate for both the managerial as well as
a technical work level.
2. Authority and Responsibility-These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible for the work done under their
guidance or leadership.
3. Discipline-Without discipline, nothing can be accomplished. It is the core value for any project or any
management. Good performance and sensible interrelation make the management job easy and
comprehensive. Employees good behaviour also helps them smoothly build and progress in their professional
careers.
4. Unity of Command-This means an employee should have only one boss and follow his command. If an
employee has to follow more than one boss, there begins a conflict of interest and can create confusion.
5. Unity of Direction-Whoever is engaged in the same activity should have a unified goal. This means all the
person working in a company should have one goal and motive which will make the work easier and achieve
the set goal easily.
6. Subordination of Individual Interest-This indicates a company should work unitedly towards the interest
of a company rather than personal interest. Be subordinate to the purposes of an organization. This refers to
the whole chain of command in a company.
7. Remuneration-This plays an important role in motivating the workers of a company. Remuneration can
be monetary or non-monetary. However, it should be according to an individual’s efforts they have made.
8. Centralization-In any company, the management or any authority responsible for the decision-making
process should be neutral. However, this depends on the size of an organization. Henri Fayol stressed on the
point that there should be a balance between the hierarchy and division of power.
9. Scalar Chain-Fayol on this principle highlights that the hierarchy steps should be from the top to the
lowest. This is necessary so that every employee knows their immediate senior also they should be able to
contact any, if needed.
10. Order-A company should maintain a well-defined work order to have a favourable work culture. The
positive atmosphere in the workplace will boost more positive productivity.
11. Equity-All employees should be treated equally and respectfully. It’s the responsibility of a manager that
no employees face discrimination.
12. Stability-An employee delivers the best if they feel secure in their job. It is the duty of the management to
offer job security to their employees.
13. Initiative-The management should support and encourage the employees to take initiatives in an
organization. It will help them to increase their interest and make then worth.
14. Esprit de Corps-It is the responsibility of the management to motivate their employees and be supportive
of each other regularly. Developing trust and mutual understanding will lead to a positive outcome and work
environment.
Taylor Principles of Scientific Management
Principles of Scientific Management by Taylor:
F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father of scientific management’ proved
with his practical theories that a scientific method can be implemented to management. Taylor gave much
concentration on the supervisory level of management and performance of managers and workers at an
operational level. Let’s discuss in detail the five principles of management by F.W Taylor.

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1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and
not with the ‘Rule of Thumb’ method. Taylor believed that even a small activity like loading paper sheets
into boxcars can be planned scientifically. This will save time and also human energy. This decision
should be based on scientific analysis and cause and effect relationships rather than ‘Rule of Thumb’
where the decision is taken according to the manager’s personal judgement.
2. Harmony, Not Discord-
Taylor indicated and believed that the relationship between the workers and management should be
cordial and completely harmonious. Difference between the two will never be beneficial to either side.
Management and workers should acknowledge and understand each other’s importance. Taylor also
suggested the mental revolution for both management and workers to achieve total harmony.
3. Mental Revolution-
This technique involves a shift of attitude of management and workers towards each other. Both should
understand the value of each other and work with full participation and cooperation. The aim of both
should be to improve and boost the profits of the organisation. Mental Revolution demands a complete
change in the outlook of both the workers and management; both should have a sense of togetherness.
4. Cooperation, not Individualism-
It is similar to ‘Harmony, not discord’ and believes in mutual collaboration between workers and the
management. Managers and workers should have mutual cooperation and confidence and a sense of
goodwill. The main purpose is to substitute internal competition with cooperation.
5. Development of Every Person to his Greatest Efficiency-
The effectiveness of a company also relies on the abilities and skills of its employees. Thus, implementing
training, learning best practices and technology, is the scientific approach to brush up the employee skill.
To assure that the training is given to the right employee, the right steps should be taken at the time of
selection and recruiting candidates based on a scientific selection.
Managerial Skills:
[Link] skill(top level)
2. interpersonal skill(top level)(middle)(low)
3. conceptual skill()
4. diagnostic skill
5. political skill
technical skill can contribute to management ability to succeed. Managers whom understand a specific
activity that involves methods, processes, procedures, or techniques is considered a good manager. In
order for a manager to conquer their goal he or she must prepare a spread sheet analysis, upload
information onto a social networking site, develop a marketing campaign, and demonstrate a piece of
electronic equipment.
interpersonal skills:
Human relations skills are the interpersonal skills managers use to accomplish goals through the use of
human resources. This set of skills includes the ability to understand human behavior, to communicate
effectively with others, and to motivate individuals to accomplish their objectives. Giving positive
feedback to employees, being sensitive to their individual needs, and showing a willingness to empower
subordinates are all examples of good human relations skills. Identifying and promoting managers with
human relations skills are important for companies. A manager with little or no people skills can end up
using an authoritarian leadership style and alienating employees.
 Awareness (of yourself and others)
 Caring about other people.
 Collaborating and working well together with others.
 Comforting people when they need it.
 Clear communication skills.
 Conflict management and resolution skills

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Conceptual skills include the ability to view the organization as a whole, understand how the various
parts are interdependent, and assess how the organization relates to its external environment. These skills
allow managers to evaluate situations and develop alternative courses of action. Good conceptual skills
are especially necessary for managers at the top of the management pyramid, where strategic planning
takes place.

Management Behavioral Process

UNIT-02 -BUREAUCRATIZATION OF ORGANIZATIONS
Organisational Behaviour-concepts, determinants, models, challenges and opportunities of
[Link] cost and organizational behaviours Contributing disciplines to the [Link]
Behaviour: Foundations of individual behaviour, values, attitudes, personality and [Link]
Argyris behaviour patterns, Perceptual process.
MEANING OF ORGANISATIONAL BEHAVIOUR
Organizational Behavior (OB) can be defined as the understanding, prediction and management
of human behavior both individually or in a group that occur within an organization.
Internal and external perspectives are the two theories of how organizational behavior can be
viewed from an organization’s point of view. In this tutorial, we will be learning in detail about
both the theories.
Features of Organizational Behavior (Characteristics or Nature of OB)
 A Separate Field of Study and not a Discipline Only.
 An Interdisciplinary Approach.
 Applied Science.
 Normative Science.
 A Humanistic and Optimistic Approach.
 A Total System Approach.
a.A Separate Field of Study and not a Discipline Only
By definition, a discipline is an accepted science that is based on a theoretical foundation. But,
OB has a multi-interdisciplinary orientation and is, thus, not based on a specific theoretical
[Link], it is better to reason to call OB a separate field of study rather than a
discipline only.
[Link] Interdisciplinary Approach
Organizational behavior is essentially an interdisciplinary approach to study human behavior at
[Link] tries to integrate the relevant knowledge drawn from related disciplines like
psychology, sociology, and anthropology to make them applicable for studying and analyzing
organizational behavior.
[Link] Applied Science
The very nature of OB is [Link] OB basically does is the application of various research
to solve the organizational problems related to human [Link] basic line of difference
between pure science and OB is that while the former concentrates on fundamental research, the
latter concentrates on applied [Link] involves both applied research and its application in
organizational [Link], OB can be called both science as well as art.

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d.A Normative Science

Organizational Behavior is a normative science also. While positive science discusses the only
cause-effect relationship, OB prescribes how the findings of applied research can be applied to
socially accepted organizational [Link], OB deals with what is accepted by individuals and
society engaged in an organization. Yes, it is not that OB is not normative at [Link] fact, OB is
normative as well which is well underscored by the proliferation of management theories.
e.A Humanistic and Optimistic Approach
Organizational Behavior applies a humanistic approach towards people working in the
organization. It deals with the thinking and feeling of human [Link] is based on the belief
that people have an innate desire to be independent, creative and [Link] also realizes that
people working in the organization can and will actualize these potentials if they are given
proper conditions and [Link] environment affects performance or workers working in
an organization.
f.A Total System Approach
The system approach is one that integrates all the variables, affecting organizational
[Link] systems approach has been developed by behavioral scientists to analyze human
behavior in view of his/her socio-psychological [Link]’s socio-psychological framework
makes the man a complex one and the systems approach tries to study his/her complexity and
find a solution to it.
Objectives of Organizational Behavior
 Job Satisfaction.
 Finding the Right People.
 Organizational Culture.
 Leadership and Conflict Resolution.
 Understanding the Employees Better.
 Understand how to Develop Good Leaders.
 Develop a Good Team.
 Higher Productivity

[Link] Satisfaction
Understanding organizational behavior can shed light on the factors that can foster or hamper
job satisfaction, such as physical settings, organizational rewards and punishments or work-
group [Link] satisfaction, in turn, can foster higher productivity and reduced
turnover, while providing more leverage for the recruitment of top talent.
[Link] the Right People
A ship with all sails and no anchors would flounder, one with all anchors and no sails would not
get [Link] behavior can help find the right mix of talents and working
styles required for the achievement of the task at [Link] can assist in deciding who to include
in a team or task force, as well as in deciding who to promote to a leadership position or even the
ideal profile for new hires.
[Link] Culture
As organizations grow larger, it may become difficult to keep a sense of common purpose and
unity of [Link] behavior is useful for understanding and designing the
communication channels and leadership structures that can reinforce organizational [Link]
rapidly evolving business environments force organizations to adapt, entering, for example, into

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global markets or utilizing virtual workforce, organizational behavior can assist in maintaining a
clear identity without losing flexibility and adaptability.
[Link] and Conflict Resolution
Playing by the book and not making waves may be fine for some organizations, but the
command-and-control mentality of the manufacturing age may become counterproductive in the
knowledge [Link] behavior can assist in fostering leadership, pro-activity and
creative [Link] creativity is allowed, the divergence of opinions is unavoidable,
but organizational behavior can provide the leadership and the arbitrage dynamics required for
turning conflicts into constructive idea exchanges.
[Link] the Employees Better

Organizational behavior studies help us understand why employees behave the way they do, and
also thereby predict how they are going to behave m the future.
[Link] how to Develop Good Leaders
Organizational behavior patterns help in predicting who among the employees have the potential
to become [Link] also teach us how to mold these employees so that their leadership
potential is utilized to its fullest.
[Link] a Good Team
An organization is only as good as the weakest member of its team. All members of the
teamwork in coordination and must be motivated to work together to achieve the best [Link]
teamwork theories of organizational behavior are an essential tool in the hands of any manager.
[Link] Productivity
All of this leads us to the most important goal of achieving the highest productivity in realizing
the visions and goals of any [Link] implemented well, the organizational behavior
principles help in motivating all the members to do their best. The levels of motivation can be the
difference between a good and a bad result.
CONCEPT OF OB
concept of OB is based on two key elements namely −
 Nature of people
 Nature of the organization
Nature of People
In simple words, nature of people is the basic qualities of a person, or the character that personifies
an individual they can be similar or unique. Talking at the organizational level, some major factors
affecting the nature of people have been highlighted. They are
1. Individual differences idea comes from psychology. Every person is different from the day of
birth, every person is unique and personal experiences make a person more different than the other.
Every individual differs in many ways like intelligence, physique, personality, learning capability,
communicative ability etc. Therefore only an individual can take responsibility and make
decisions, whereas a group is powerless until all the individuals within the group act accordingly.
2. A whole person indicates that when an individual is appointed in an organisation, he/she is not
hired only on the basis of skills, but also on likes and dislikes, pride and prejudices. An individual’s
way of living in a family cannot be separated from organisational life. This is why the organisations
need to provide their employees with a proper work environment where they can work hard to
progress and develop their abilities to become a better employee and also a better person in terms
of growth and fulfillment.

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3. Caused behavior indicates that when an individual behaves in an unmannerly fashion then there
is a cause behind it. Anything could be the reason of this cause such as personal problems at home
within the family, or problems with coming early to the office etc. If an individual starts reacting
in an unmannerly fashion with other staff members then a manager should understand that there is
definitely a cause behind it. Managers should investigate about the cause and tackle the issue at
the root level.
4. Human dignity indicates that every individual needs to be treated differently. It shows human
dignity because people at every level of professional ladder want to be treated with respect and
dignity. Every job needs to be done with respect and recognition this helps every individuals
aspirations and abilities to improve. The concept of human dignity rejects the idea of using
employees as economic tools.
5. Organisations are social systems indicates that from sociology we know that organisations are
social systems; therefore the activities within the organisations are governed by social and
psychological laws. Organisations have formal and informal social systems. Social systems in an
organisation indicate that the company has dynamic change ability rather than static set of
relations. Every part in the system is interdependent on each other.
6. Mutuality of interest indicates that both the organisation and people need each other.
Organisations are formed and maintained on the basis of some mutuality of interest among the
participants. People require organisations to reach their goals, while organisation needs people to
reach organisational objectives. Lack of mutual interest causes disorientation among the
participants and the group. Mutual interest provides a common goal for all the participants, which
results in encouragement of the people to tackle problems of the organisation instead of raising
fingers at each other.
7. Holistic concept indicates that when all the above six concepts of organisational behavior are
placed together a holistic concept arises. This concept interprets the relationship between people
and organisation in terms of the whole person, entire group, entire organisation and the whole
social system. Views of different people are taken into account in an organisation to understand
the factors that influence their behavior. Issues are analyzed in terms of the total situation affecting
them rather than in terms of an event or problem.
Nature of Organization
Nature of organization states the motive of the firm. It is the opportunities it provides in the global
market. It also defines the employees’ standard; in short, it defines the character of the company
by acting as a mirror reflection of the company. We can understand the nature of any firm with its
social system, the mutual interest it shares and the work ethics.
Let us take a quick look at all these factors −
 Social system − Every organization socializes with other firms, their customers, or simply
the outer world, and all of its employees - their own social roles and status. Their behavior
is mainly influenced by their group as well as individual drives. Social system are of two
types namely −
o Formal − Groups formed by people working together in a firm or people that
belong to the same club is considered as formal social system. Example − A
success party after getting a project.
o Informal − A group of friends, people socializing with others freely, enjoying,
partying or chilling. Example − Birthday party.
 Mutual interest − Every organization needs people and people need organizations to
survive and prosper. Basically it’s a mutual understanding between the organization and

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the employees that helps both reach their respective objectives. Example − We deposit
our money in the bank, in return the bank gives us loan, interest, etc.
 Ethics − They are the moral principles of an individual, group, and organization. In order
to attract and keep valuable employees, ethical treatment is necessary and some moral
standards need to be set. In fact, companies are now establishing code of ethics training
reward for notable ethical behavior.
[Link]
DETERMINANTS OF OB

here are three major factors that affect OB. The working environment being the base for all three
factors, they are also known as the determinants of OB. The three determinants are
 People
 Organizational Structure
 Environment
 Technology

People
An organization consists of people with different traits, personality, skills, qualities, interests,
background, beliefs, values and intelligence. In order to maintain a healthy environment, all the
employees should be treated equally and be judged according to their work and other aspects that
affects the firm.
Example − A company offers campus placement to trainees from different states like Orissa,
Haryana, Arunachal Pradesh and many more. However, during and after training, all trainees are
examined only on the basis of their performance in the tasks assigned.
Organizational Structure
Structure is the layout design
n of an organization. It is the construction and arrangement of relationships, strategies according
to the organizational goal.
Example − Organizational structure defines the relation of a manager with employees and co-
workers.

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Technology
Technology can be defined as the implementation of scientific knowledge for practical usage. It
also provides the resources required by the people that affect their work and task performance in
the right direction.
Example − Introduction of SAP, big data and other software in the market determines individual
and organizational performance.
Environment
All companies function within a given internal and external environment. Internal environment
can be defined as the conditions, factors, and elements within an enterprise that influences the
activities, choices made by the firm, and especially the behavior of the employees. While external
environment can be defined as outside factors that affect the company's ability to operate. Some
of them can be manipulated by the company’s marketing, while others require the company to
make adjustments.
Some examples of internal environment include employee morale, culture changes, financial
changes or issues, and some examples of external environment include political factors, changes
to the economy and the company itself.
ORGANIZATIONAL BEHAVIOR MODEL
Meaning of Organizational Behavior Model: – Organizational behavior model is a basic structure that
shows the relations between employees at different levels in the organization. Organizational behavior
model reflects the behavior of the people and management all together, it is considered as field study not
just a discipline. Organization analyze behavior of employees into three basic levels known as OB Model,
they are: – Individual level, Group level and Organizational system level.
ORGANIZATIONAL BEHAVIOR MODEL

Autocratic Model: –

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The autocratic model is the model that relies on strength, power and formal authority. The autocratic
model depends on power. Managers see authority as the only means to get the things done and employees
are expected to follow orders. So it results in the higher dependence on the boss.
In an autocratic organization, the people (management/owners) managing the functions in an organization
have formal authority to control the employees working under them. These lower-level employees have
little control over the job assignments. His ideas and innovations are generally not welcomed, as major
decisions are made at the top management level.
The guiding principle behind this model is that management/owners have extensive business expertise,
and the average employee has a relatively low level of skill and needs to be thoroughly directed. This type
of autocratic management system was common in factories during the Industrial Revolution era.
One of the more significant problems associated with the autocratic model is that the management team
needs to micro-manage the employees – where they have to look at all the details and make every single
decision. Clearly, in a more modern-day organization, where highly paid specialists are hired, an
autocratic system becomes impractical and highly inefficient.
The autocratic model also opposes job satisfaction and employee morale. This is because employees do
not feel valued and part of the overall team. This leads to low level of performance. While the Autocratic
model may be suitable for some very automated factory situations, it is out of date for most modern
outfits.
Custodial Model: –
Workers being managed under the autocratic model often feel insecure and disappointed. They may also
show aggression towards their boss and their family and neighbours. So progressive managers felt that
something must happen ways to develop better employee relations so that insecurities and
frustrationscould be removed. The custodial approach induces employees now to show their dependency
and loyalty towards the company and not to the boss or managers, or supervisors. The employees in this
environment are more psychologically contended and preoccupied with their rewards, but it is not
necessary they would be strongly motivated to give the performance.
To overcome the shortcomings of autocratic model, it came into existence. This model is reward based.
More emphasis is on economic rewards and benefits to motivate employees.
The custodial model is based on the concept of providing economic security for employees – through pay
and other benefits that will create employee loyalty and motivation. In some countries, many professional
companies offer health benefits, corporate cars, financial packaging of salaries, etc. – these are incentives
designed to attract and retain quality employees.
Supportive Model: –
The basic idea behind this theory is that leadership drives people to work not the power of money as in
the custodial model. Through leadership Management provides an environment to help employees
develop and fulfil the interests of the organization, rather than the only things to support employee benefit
payment as per custodial approach.

It works in the public sector organization which is dependent on effective leadership. Here, it is assumed
that workers are self directed and creative. Importance in this model is given to psychological needs, self
esteem, job satisfaction and friendly relations between superior-subordinate.
Under the supportive model, workers feel a sense of participation and work participation in the
organization. The role of the manager is to help the employee and solve their problems and get their work

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done. This model has been found to be effective in prosperous countries where workers are more
concerned about their higher levels need affiliation and esteem.
The supportive model is widely accepted chiefly in the developed nations where the needs of the
employees are different as it fulfills many of the employees emerging needs. This approach is less
successful in the developing nations where the social and economic need of the working class is different.
In short, in the supportive model, money is not which retain the satisfaction of the employees, but it is a
part of the organization’s life that has been put to the use and makes other people feel wanted.
Collegial Model: –
A useful extension of the supportive model is the collegial model. This word collegial means a body of
individuals with a common purpose. The collegial model, which embodies a term concept, first achieved
widespread applications in research laboratories and similar work environments. This is a best model
based on the partnership between workers and management in which both work together as a team and
respect each other. Workers are satisfied by their job and they are committed to the organisation.
The collegial model is quite effective in organizations that need to find new approaches – marketing
teams, research and development, technology/software – virtually anywhere the competitive landscape is
constantly changing and ideas and innovation are key competitive success factors.
System Model: –
The final organizational model is known as the system model. It is the most contemporary model of the
five models discussed in this article. In the system model, the organization looks at the overall structure
and team environment, and assumes that individuals have different goals, talents, and abilities. The
system model aims to try to balance the goals of the individual with the goals of the organisation.
Individuals obviously want good remuneration, job security, but also want to work in a positive work
environment where the organization adds value to the community and/or its customers. The model system
should be a holistic partnership of managers and employees with a common goal, and where everyone
feels they have a stake in the organization.
(Autocratic Model
The root level of this model is power with a managerial orientation of authority. The employees in
this model are oriented towards obedience and discipline. They are dependent on their boss. The
employee requirement that is met is subsistence. The performance result is less.
The major drawbacks of this model are people are easily frustrated, insecurity, dependency on the
superiors, minimum performance because of minimum wage.
Custodial Model
The root level of this model is economic resources with a managerial orientation of money. The
employees in this model are oriented towards security and benefits provided to them. They are
dependent on the organization. The employee requirement that is met is security.
This model is adapted by firms having high resources as the name suggest. It is dependent on
economic resources. This approach directs to depend on firm rather than on manager or boss. They
give passive cooperation as they are satisfied but not strongly encouraged.
Supportive Model
The root level of this model is leadership with a managerial orientation of support. The employees
in this model are oriented towards their job performance and participation. The employee
requirement that is met is status and recognition. The performance result is awakened drives.
This model is dependent on leadership strive. It gives a climate to help employees grow and
accomplish the job in the interest of the organization. Management job is to assist the employee’s
job performance. Employees feel a sense of participation.

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Collegial Model
The root level of this model is partnership with a managerial orientation of teamwork. The
employees in this model are oriented towards responsible behavior and self-discipline. The
employee requirement that is met is self-actualization. The performance result is moderate zeal.
This is an extension of supportive model. The team work approach is adapted for this model. Self-
discipline is maintained. Workers feel an obligation to uphold quality standard for the better image
of the company. A sense of “accept” and “respect” is seen.)
Challenges and Opportunities of Organizational Behavior
 Improving Peoples' Skills. ...
 Improving Quality and Productivity. ...
 Total Quality Management (TQM) ...
 Managing Workforce Diversity. ...
 Responding to Globalization. ...
 Empowering People. ...
 Coping with Temporariness. ...
 Stimulating Innovation and Change.

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DISCIPLINES THAT CONTRIBUTE TO THE OB FIELD
Organizational behavior is an applied behavioral science built on contributions from a number of
behavioral disciplines, mainly psychology and social psychology, sociology, and anthropology.
Psychology’s contributions have been mainly at the individual or micro level of analysis, while the other
disciplines have contributed to our understanding of macro concepts such as group processes and
organization. Above is an overview of the major contributions to the study of organizational behavior.

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Psychology
Psychology seeks to measure, explain, and sometimes change the behavior of humans and other animals.
Those who have contributed and continue to add to the knowledge of OB are learning theorists,
personality theorists, counseling psychologists, and, most important, industrial and organizational
psychologists.
Early industrial/organizational psychologists studied the problems of
fatigue, boredom, and other working conditions that could impede efficient work performance. More
recently, their contributions have expanded to include learning, perception, personality, emotions,
training, leadership
effectiveness, needs and motivational forces, job satisfaction, decision-making processes, performance
appraisals, attitude measurement, employee-selection techniques, work design, and job stress.
Social Psychology
Social psychology, generally considered a branch of psychology, blends concepts from both psychology
and sociology to focus on peoples’ influence on one another. One major study area is change —how to
implement it and how to reduce barriers to its acceptance. Social psychologists also contribute to

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measuring, understanding, and changing attitudes; identifying communication patterns; and building trust.
Finally, they have made important contributions to our study of group behavior, power, and conflict.
Sociology
While psychology focuses on the individual, sociology studies people in relation to their social
environment or culture. Sociologists have contributed to OB through their study of group behavior in
organizations, particularly formal and complex organizations. Perhaps most important, sociologists have
studied organizational culture, formal organization theory and structure, organizational technology,
communications, power, and conflict.
Anthropology
Anthropology is the study of societies to learn about human beings and their activities. Anthropologists’
work on cultures and environments has helped us understand differences in fundamental values, attitudes,
and behavior between people in different countries and within different organizations. Much of our
current understanding of organizational culture, organizational environments, and differences among
national cultures is a result of the work of anthropologists or those using their methods.
Individual behavior
Individual behavior can be defined as a mix of responses to external and internal stimuli. It is the way a person reacts in different
situations and the way someone expresses different emotions like anger, happiness, love, etc
.
FOUNDATIONS OF INDIVIDUAL BEHAVIOR
Level of OB analysis
Three Levels of Analysis in OB

Organization systems level

Group level
Individual-level
1. Individual-Level Analysis:
It is the first level of analysis. Individuals working in organizations are the building blocks for group
formation. They are very different in nature. In reality, organizations are the purposeful association of
individuals. The major contributing discipline at this level is psychology.
The individual-level analysis includes the characteristics and behaviors of employees as well as the
thought processes that are attributed to them, such as motivation, perceptions, personalities. attitudes, and
[Link] level analyses the individual’s performance in the company’s output. It is also called the

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micro-level of study which studies those individuals’ variables. This way, OB can find out whether the
employee is good for the company or not.
2. Group (Team) Level Analysis:
Most of the individuals work in a group/team. A group is defined as two or more individuals interacting
and interdependent, who have come together to achieve particular objectives. Groups can be either formal
or informal. It is a macro-level of study.
Major contributing disciplines at this level are sociology, social psychology, and anthropology. The
group-level analysis focuses on the way people interact. This level includes group dynamics, decisions,
power, organizational politics, conflict leadership, communication, and the like.
3. Organization System-Level Analysis:
When groups are combined together, they constitute (create) an organization. Major contributing
disciplines at this level are sociology, anthropology, and political science. The focus of analysis at this
level is on how people structure their working relationships as well as on how organizations interact with
their external environmental forces. Major variables for analysis are organizational structure, culture,
power and politics, and change and development, etc.
There are three levels of analysis in OB. As we move from the individual level to the organization
systems level, we add systematically to our understanding of behavior in organizations. The three basic
levels are analogous or similar to building blocks; each level is constructed upon the previous level.
Group concepts grow out of the foundation laid in the individual section; we cover structural constraints
on the individual and group in order to arrive at organizational behavior.
INDIVIDUAL BEHAVIOR FRAMEWORK

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On the basis of these elements, psychologist Kurt Lewin stated the Field theory and outlined the behavior
framework. This psychological theory studies the patterns of interaction between an individual and the
environment. The theory is expressed using the formula
B = F(P,E)

where, B – Behavior, F – Behavior Function, P – Person, and E – Environment around the person.
Say for example, a well payed person who loses his job in recession may behave differently when
unemployed.
Causes of Individual Behavior
Certain individual characteristics are responsible for the way a person behaves in daily life situations as
well as reacts to any emergency situations. These characteristics are categorized as:
Inherited characteristics
Learned characteristics
Inherited Characteristics
The features individuals acquire from their parents or from our forefathers are the inherited
characteristics. In other words, the gifted features an individual possesses by birth is considered as
inherited characteristics.
Following features are considered as inherited characteristics:
Color of a person’s eye
Religion/Race of a person
Shape of the nose
Shape of earlobes
Learned Characteristics
Nobody learns everything by birth. First our school is our home, then our society followed by our
educational institutions. The characteristics an individual acquires by observing, practicing and learning
from others and the surroundings is known as learned characteristics.
consists of the following features:
Perception: Result of different senses like feeling, hearing etc.
Values: Influences perception of a situation, decision making process.
Personality: Patterns of thinking, feeling, understanding and behaving.
Attitude: Positive or negative attitude like expressing one’s thought.
The way an individual addresses a situation single-handedly or say in a group is influenced by many
factors. The key factors influencing an individual’s attitude in personal as well as social life are:
Abilities
Gender
Race and culture
Attribution
Perception
Attitude
Let’s take a quick look over these major elements that imprints a person’s behavior inside and outside of
the organization.
Abilities
Abilities are the traits a person learns from the environment around as well as the traits a person is gifted
with by birth. These traits are broadly classified as:

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Intellectual abilities
Physical abilities
Self-awareness abilities
In order to understand how these affect a person’s behavior, we need to know what these abilities are.
Intellectual Abilities: It personifies a person’s intelligence, verbal and analytical reasoning abilities,
memory as well as verbal comprehension.
Physical Abilities: It personifies a person’s physical strength, stamina, body coordination as well as motor
skills.
Self-awareness Abilities: It symbolizes how a person feels about the task, while a manager’s perception of
his abilities decides the kind of work that needs to be allotted to an individual.
Thus the psychological, physical, self-assurance traits owned by a person defines the behavior of a person
in social and personal life. For ex: Ram has a high IQ level, whereas Rahul can lift a bike and is a strong
guy.
Gender
Research proves that men and women both stand equal in terms of job performance and mental abilities;
however, society still emphasizes differences between the two genders. Absenteeism is one area in an
organization where differences are found as women are considered to be the primary caregiver for
children. A factor that might influence work allocation and evaluation in an organization is the manager’s
perception and personal values.
For example: An organization encourages both genders to work efficiently towards the company’s goal
and no special promotion or demotion is given or tolerated for any specific gender.
Race & Culture
Race is a group of people sharing similar physical features. It is used to define types of persons according
to perceived traits. For example: Indian, African. On the other hand, culture can be defined as the traits,
ideas, customs and traditions one follows either as a person or in a group. For example: Celebrating a
festival.
Race & culture have always exerted an important influence both at the workplace as well as in the
society. The common mistakes such as attributing behavior and stereotyping according to individual’s
race & culture basically influences an individual’s behavior.
In today’s diverse work culture, the management as well as staff should learn and accept different
cultures, values, and common protocols to create more comfortable corporate culture.
For example: A company invites candidates for a job post and hires one on the basis of eligibility criteria
and not on the basis of the country a person belongs to or the customs one follows.
Perception
Perception is an intellectual process of transforming sensory stimuli into meaningful information. It is the
process of interpreting something that we see or hear in our mind and use it later to judge and give a
verdict on a situation, person, group, etc.
It can be divided into six types namely:
Of sound: The ability to receive sound by identifying vibrations.
Of speech: The competence of interpreting and understanding the sounds of language heard.
Touch: Identifying objects through patterns of its surface by touching it.
Taste: The ability to detect flavor of substances by tasting it through sensory organs known as taste buds.
Other senses: Other senses include balance, acceleration, pain, time, sensation felt in throat and lungs etc.
Of the social world: It permits people to understand other individuals and groups of their social world.

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For example − Priya goes to a restaurant and likes their customer service, so she will perceive that it is a
good place to hang out and will recommend it to her friends, who may or may not like it. However,
Priya’s perception about the restaurant remains good.
Attribution
Attribution is the course of observing behavior followed by determining its cause based on individual’s
personality or situation.
Attribution framework uses the following three criteria −

Consensus: The extent to which people in the same situation might react similarly.
Distinctiveness: The extent to which a person’s behavior can be associated to situations or personality.
Consistency: The frequency measurement of the observed behavior, that is, how often does this behavior
occur.
The framework mentioned says it is all about how an individual behaves in different situations.
For example − Rohit invites Anisha and two more friends for a movie and they agree to bunk and watch
the movie, this is consensus. Bunking of class says that they are not interested in their lectures, this is
distinctiveness. A little change in the situation, like if Rohit frequently starts bunking the class then his
friends may or may not support him. The frequency of their support and their rejection decides
consistency.
Attitude
Attitude is the abstract learnt reaction or say response of a person’s entire cognitive process over
a time span.
For example: A person who has worked with different companies might develop an attitude of
indifference towards organizational citizenship.
Now we have a clear idea about what are the factors responsible for the way we behave. We
never think about these elements and how they affect our daily life but we can’t ignore the fact
that they are responsible for the way we walk, talk, eat, socialize, etc.
PERCEPTUAL PROCESS
Perceptual process are the different stages of perception we go through. The different stages are −
 Receiving
 Selecting
 Organizing
 Interpreting
Receiving
Receiving is the first and most important stage in the process of perception. It is the initial stage in
which a person collects all information and receives the information through the sense organs.
Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data randomly but
selectively. A person selects some information out of all in accordance with his interest or needs.
The selection of data is dominated by various external and internal factors.
 External factors − The factors that influence the perception of an individual externally are
intensity, size, contrast, movement, repetition, familiarity, and novelty.
 Internal factors − The factors that influence the perception of an individual internally are
psychological requirements, learning, background, experience, self-acceptance, and interest.

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Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make sense of the
data received, it is important to organize them.
We can organize the data by −
 Grouping them on the basis of their similarity, proximity, closure, continuity.
 Establishing a figure ground is the basic process in perception. Here by figure we mean what
is kept as main focus and by ground we mean background stimuli, which are not given
attention.
 Perceptual constancy that is the tendency to stabilize perception so that contextual changes
don’t affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a particular object
depending upon the need or interest. Interpretation means that the information we have sensed and
organized, is finally given a meaning by turning it into something that can be categorized. It
includes stereotyping, halo effect etc.

MANAGEMENT BEHAVIOURAL PROCESS

UNIT-03:GROUP DECISION MAKING AND
COMMUNICATION
Concept and nature of decision-making process,Individual versus group decision
making,Nominal group technique and Delphi technique, models of communication
Decision making
Decision making is the process of making choices by identifying a decision, gathering information,
and assessing alternative resolutions. Using a step-by-step decision-making process can help you
make more deliberate, thoughtful decisions by organizing relevant information and defining
alternatives.

Decision making is a process of selecting the best course of action or plan from different
alternatives available. It is a means through which managers takes action for solving the problem.
This is an integral part of the management system of the company which aims at improving
efficiency. Decision making is the one through which managers are able to take right
decisions at right time.

CHARACTERISTICS OF DECISION MAKING

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 Selective: It is a selective process in which the optimal alternative is opted, among the
various alternatives. The selection of the alternative is done, only after evaluating all
the alternatives against the objectives.
 Cognitive: As the decision making encompasses the application of intellectual
abilities, such as analysis, knowledge, experience, awareness and forecasting, it is a
cognitive process.
 Dynamic: It is a dynamic activity in the sense that a particular problem may have
different solutions, depending upon the time and circumstances.
 Positive or Negative: A decision is not always positive, sometimes even after
analysing all the points a decision may turn out as a negative one.
 Ongoing process: We all know that a company has perpetual succession and various
decisions are taken daily by different levels of management to keep the firm going.
These decisions are taken, keeping in mind the objectives of the organization.
 Evaluative: Evaluation of the possible alternatives using critical appraisal methods, is
a part of the decision-making process.
It is a problem-solving activity which produces a solution considered as the most
favourable and appropriate one, as per the situation.
Process of Decision Making
Decision making involves the identification and selection of the alternatives on the
basis of the values, preferences, requirements, and beliefs. To begin the process
objectives must be defined, classified and arranged in the order of their
importance.

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7 Steps in Decision Making Process

 Identification of Problems
 Analysis of Problems
 Development of Alternatives
 Evaluation of Alternatives
 Selection of Best Alternative
 Implementation of Alternative
 Review of Implementation

Step 1: Identification of Problems
The first and most important step of the decision-making process is to identify the
main problems. Problems may arise due to the internal and external factors of an
organization.

It is believed that the identification of problems is the completion of half of the

decision-making process. Identifying the problem is similar to diagnosing a disease,
which helps in providing the right medicine to the patients. And when a problem is
correctly understood, it becomes easy to solve.

Step 2: Analysis of Problems

After completing the first step another step of the decision-making process is
analyzing the identified problems. For this, a decision-maker has to accumulate all
the facts, data, and information related to problems.
Analyzing the problems is a part of the decision-maker to study the main reasons of
problems and their impact on short as well as long term organizational performance.
A quick analysis of the problem by accumulating all the related facts, data, and
information is a must to find out the actual source of problems.

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Step 3: Development of Alternatives

A problem may have various alternatives solutions. The decision-maker has to
identify and study all the possible solutions. A decision-maker should be creative
and innovative to identify all the alternative solutions.
He can identify the alternatives from the various sources like records and files of
problems, opinions, and views of experts, the discussions with subordinates,
creditors, customers, etc.
The more clearly identified alternatives provide more freedom for brainstorming. A
manager should concentrate on developing and finding those alternatives, which are
strategic to the problems. Therefore, the development of alternative solutions is
mental and creative work that requires discussion and creativity.

Step 4: Evaluation of Alternatives

Here every alternative is evaluated and studied in terms of the decision-making
process. All alternatives should be studied by considering the efforts involved and
the outcome expected.
Generally, the following queries are taken into consideration while evaluating any
alternative solution, firstly, whether the alternative solution is feasible in terms of
costs, time, legal, constraints, human and other resources, secondly, whether the
alternative is satisfactory for solving problems, thirdly, whether the consequences of
alternative are favorable to the organization.

Step 5: Selection of Best Alternative

This is the final stage of the decision-making process after the evaluation of various
alternatives. Here the best feasible alternative is being selected. For the best
alternative manager should consider short-term as well as long-term impacts on
organizational performance.
The decision-maker has to consider the above approaches to analyze and select the
best solution. He has to select an alternative considering the feasibility,
satisfactoriness, and financial soundness of the organization. The selection of the
best solution helps for implementation and to gain positive outcomes in
organizational objectives.

Step 6: Implementation of Alternative

This is the operational part of the decision-making process. A decision can be made
by evaluating the alternatives with the help of available resources but implementing
them is quite difficult. The efficiency of the decision-maker is measured in terms of
effective implementation of the decision.
Step 7: Review of Implementation

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Reviewing the implementation means knowing its actual performance it. As

decision-making is a continuous process it is necessary to evaluate the performance
from time to time.
A follow-up and review of actual achievement are essential. In case the
implementation does not give the desired results, it is necessary to involve in the
modification of procedures and techniques that can be made to bring the work to the
desired track. It also helps in taking an appropriate decision at the right time.

Steps from 1-to-5 are the main steps in the decision-making process and the steps
from 6-to-7 are the supporting steps for the better performance of the selected course
of action.

What is individual decision making?

Individual decision refers to the decision making process where an individual selects the
course of action to be followed in the business from various alternatives whereas collective
decision refers to the group decision which occurs at mutual agreement from the group.
What is group decision-making?
Group decision-making (also known as collaborative decision-making or
collective decision-making)
It is a situation faced when individuals collectively make a choice from the alternatives
before them. The decision is then no longer attributable to any single individual who is a
member of the group.

INDIVIDUAL V/S GROUP DECISION MAKING

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Nominal group technique

The nominal group technique is a group process involving problem identification, solution
generation, and decision making. It can be used in groups of many sizes, who want to make their
decision quickly, as by a vote, but want everyone's opinions taken into account. The method of
tallying is the difference.

Delphi method or Delphi technique

Delphi method or Delphi technique is a structured communication technique or method,

originally developed as a systematic, interactive forecasting method which relies on a panel of
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experts. The technique can also be adapted for use in face-to-face meetings, and is then called
mini-Delphi or Estimate-Talk-Estimate.

COMMUNICATION
MEANING
Communications is fundamental to the existence and survival of humans as well as to an
organization. It is a process of creating and sharing ideas, information, views, facts, feelings, etc.
among the people to reach a common understanding. Communication is the key to the Directing
function of management.
Is a process that concerns an exchange of ideas and facts between two or more people, to share
a mutual idea. The communication process is, both, static and dynamic. Dynamic, because there
is a continuous interaction, where both parts are influenced, and static because there are certain
rules to obtain an effective communication.
Communications Process

Communications is a continuous process which mainly involves three elements viz.

sender, message, and receiver. The elements involved in the communication process
are explained below in detail:
1. Sender
The sender or the communicator generates the message and conveys it to the
receiver. He is the source and the one who starts the communication
2. Message
It is the idea, information, view, fact, feeling, etc. that is generated by the sender and
is then intended to be communicated further.
3. Encoding
The message generated by the sender is encoded symbolically such as in the form of
words, pictures, gestures, etc. before it is being conveyed.
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4. Media
It is the manner in which the encoded message is transmitted. The message may be
transmitted orally or in writing. The medium of communication includes telephone,
internet, post, fax, e-mail, etc. The choice of medium is decided by the sender.
5. Decoding
It is the process of converting the symbols encoded by the sender. After decoding the
message is received by the receiver.
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He is the person who is last in the chain and for whom the message was sent by
the sender. Once the receiver receives the message and understands it in proper
perspective and acts according to the message, only then the purpose of
communication is successful.
7. Feedback
Once the receiver confirms to the sender that he has received the message and
understood it, the process of communication is complete.
8. Noise
It refers to any obstruction that is caused by the sender, message or receiver during
the process of communication. For example, bad telephone connection, faulty
encoding, faulty decoding, inattentive receiver, poor understanding of message due to
prejudice or inappropriate gestures, etc.

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because there are certain rules to obtain an effective communication.

IMPORTANCE OF COMMUNICATION IN BUSINESS

 Quick in problem solving
 Strong decision making
 More productive
 Consistence in workflow
 Strong business relation
 Better control

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1. Helps in the international and national market

Communication helps in the development of international and national market.
This is the age of big business. Many business houses are so large that they may be
termed 'Empires'. Now-a-days, the modern business has not remained the local
business. It has expanded its geographical boundaries and spread over regions and
countries. It has now become national and international in its nature and scope.
2. Helps in Effective Business
Communication aids in the effective management of businesses. A businessman spends 90% of
his time in communicating. This means that unless he is effective, speedy and uses the best
means and instruments he will be wasting valuable time and will lag behind his rivals /
competitors.
3. Help in Better Co-ordination
Communication helps in creating good co-ordination among the employers. Ours is
an age of specialization. Within an organization, the work is assigned to different
people depending upon their ability and their status. Each person does a small part
of the job and unless these parts of work are co-ordinate, the organization may not
function properly. If there is poor or no communication among these persons as a
result of which the work will suffer.
[Link] building
Communication leads to goodwill in an organization. Lack of communication leads
to misunderstandings. The present cut throat competition in the widely expanded
market has made it indispensable for the seller to communicate with the buyer
more carefully, regularly and effectively.
5. Check on competitors
Communication assistances in keeping an eye on rival activity. The businessman
has to keep a check on his competitors if he has to keep his business prosperous.
6. Assist to collect information
Communication helps to collect latest information about the market. Information,
like the expansion plans of the competitors, their position in the market, their
quality of products, etc. is needed by every businessman who wants to remain in
the market.
7. Avoid Stress
Effective Communication leads in avoiding stress. This is an age of tension. Not
being able to communicate can result in tremendous mental tension, especially
when the businessman knows that his rivals are more successful only because they
are better communicators.
8. It helps Research and Development

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Communication makes helps in research and development of the company.

Businessman has to conduct market research and study different trends
concerning demand, supply and as well as the taste of the customer.
9. Better Industrial Relations
Communication aids in maintaining better industrial relationships with the
customer. A deep study of the modern psychology guides the management to
have better industrial relations with the workers, which can motivate the workers,
raise their morale, create an atmosphere of co-operation and increase
productivity.
10. Increases Turnover
Efficacious communication helps in increasing the turnover of the business. If the
businessman fulfills these communications needs, he will certainly be successful
with increased turnover, fame and prosperity.
MODELS OF COMMUNICATION
There are 8 major models of communication, that can be divided into 3 categories:
1. Linear models — Only look at one-way communication. The most prominent linear models of
communication are:
1. Aristotle’s model of communication
2. Laswell’s model
3. The Shannon-Weaver model
4. Berlo’s S-M-C-R model
2. Interactive models — They look at two-way communication. These are the following:
1. The Osgood-Schramm model
2. The Westley and Maclean model
3. Transactional models — They look at two-way communication where the message gets more
complex as the communication event progresses. These include:
1. Barnlund’s transactional model
2. Dance’s helical model

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1 Linear models

Linear models of communication suggest that communication takes place only in

one direction.
The main elements in these models are:
 The channel,
 The sender, and
 The receiver.

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Simply put, the sender transmits the message via a channel.

The channel is the medium and changes the message into speech, writing, or
animation.
The message then reaches the receiver, who decodes it.
This model is straightforward and is used mainly in marketing, sales, and PR, in
communication with customers.
1.a Aristotle’s Model

Aside from that, Aristotle suggested that we look at five components of a communication
situation to analyze the best way to communicate:
 Speaker
 Speech
 Occasion
 Target audience
 Effect
 So, professor Hustvedt is the speaker, and her lecture on disorders is the act of speech.
 The occasion in question is a university lecture, the students being her target audience.
 The effect of her speech is the students gaining knowledge on this subject matter.
 One of the major drawbacks of this model is that it does not pay attention to the
feedback in communication because the audience is passive.
1-b Laswell’s Model

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So, Mr. Sanders is the communicator.

The message he is conveying is the promotion of his brand of a suitcase as the best.
The medium he uses is television.
His audience consists of evening TV viewers in the US.
The effect he is achieving by doing this is raising brand awareness and increasing sales revenue.
Laswell’s model aims to answer the following 5 important questions regarding its elements:
1. Who created the message?
2. What did they say?
3. What channel did they use (TV, radio, blog)?
4. To whom did they say it?
5. What effect did it have on the receiver?
The answers to these questions offer us the main components of this model:
 Communicator
 Message
 Medium
 Audience/Receiver
 Effect
1-c The Shannon-Weaver Model
Maybe the most popular model of communication is the Shannon-Weaver model.
Strangely enough, Shannon and Weaver were mathematicians, who developed their work during
the Second World War in the Bell Telephone Laboratories. They aimed to discover which
channels are most effective for communicating.

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So, although they were doing the research for engineering endeavors, they claimed that their
theory is applicable to human communication as well.
And, they were right.
So, first, let’s consider the components of the Shannon-Weaver model of communication. These
are:
Sender
Encoder
Channel
Decoder
Receiver
Shannon and Weaver were the first to introduce the role of noise in the communication process.
In his book Introduction to Communication Studies, John Fiske defines noise as “anything that is
added to the signal between its transmission and reception that is not intended by the source.”
The noise appears in the form of mishearing a conversation, misspelling an email, or static on a
radio broadcast.
1.d-Berlo’s S-M-C-R model
Berlo’s model of communication is unique in the sense that it gives a detailed account of the key
elements in each step.
This model explains communication in four steps:
1. Source
2. Message
3. Channel
4. Receiver
Let’s consider the key elements that affect how well the message is communicated, starting with
the source.
The source
The source or the sender carefully puts their thoughts into words and transfers the message to
the receiver.

2 Interactive models

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As more dynamic models, interactive models of communication refer to two-way

communication with feedback.
However, feedback is not simultaneous, but rather slow and indirect.
Interactive models are used in internet-based and mediated communication (telephone
conversations, letters, etc.).
Let’s take a look at the main elements of these models:
 Sender
 Message
 Receiver
 Feedback
 Field of experience
 You probably noticed the new, previously not seen, element — field of experience.
 The field of experience represents a person’s culture, past experiences, and personal
history.
 All of these factors influence how a sender constructs a message, as well as how the
receiver takes it. Every one of us brings a unique field of experience into communication
situations.
 We have already mentioned the most noteworthy interactive models of communication.
 Now it is time for us to consider them in greater detail.

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2.a The Osgood-Schramm Model

1. the process of communication:

 Encoding
 Decoding
 Interpreting
In this model, there is no difference between a sender and a receiver. Both parties are equally
encoding and decoding the messages. The interpreter is a person trying to understand the
message.
2.b The Westley and Maclean Model
The Westley and Maclean model is primarily used for explaining mass communication.
This model introduces environmental and cultural factors to the process of communication.
Namely, according to this model, the communication process does not start with the
source/sender, but rather with environmental factors.
The Westley and Maclean model also takes into account the object of the
orientation (background, culture, and beliefs) of the sender and the receiver of messages.
The very process of communication starts with environmental factors which influence the
speaker — the culture or society the speaker lives in, whether the speaker is in a public or private
space, etc.
Aside from that, the role of feedback is also significant.
This model consists of nine crucial components:
1. Environment (X)
2. Sensory experience (X¹)

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3. Source/Sender (A)
4. The object of the orientation of the source (X²)
5. Receiver (B)
6. The object of the orientation of the receiver (X³)
7. Feedback (F)
8. Gatekeepers (C)
9. Opinion leaders
Now that we have seen what the elements of communication in this model are, let’s look at all of
them in greater detail.
9 Key elements of communication in the Westley and Maclean Model
As mentioned above, this model shows that the communication process does not start from the
sender of the message, but rather from the environment.
So, we will start with this element.
Environment (X)
According to the Westley and Maclean Model, the communication process starts when a
stimulus from the environment motivates a person to create and send a message.

[Link] models
Transactional models are the most dynamic communication models.
Their key components are:
 Encoding
 Decoding
 Communicators
 The message
 The channel
 Noise
In these models, communication is viewed as a transaction, meaning that it is a cooperative
process in which communicators (a new term for senders and receivers, which first appears in
these models) co-create the process of communication, thereby influencing its outcome and
effectiveness.
3.a Barnlund’s Transactional Model

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Barnlund’s Transactional Model explores interpersonal, immediate-feedback communication,

and is a multi-layered feedback system.
That means that the sender and the receiver change their places and are equally important.
Feedback for the sender is the reply for the receiver, and both communicators provide feedback.
At the same time, both sender and receiver are responsible for the communication’s effect and
effectiveness.
The main components of Barnlund’s Transactional Model are:
 Encoding
 Decoding
 Communicators
 The message (including the cues, environment, noise), and
 The channel
This model accentuates the role of cues in impacting our messages. So, Barnlund differentiates
between:
 Public cues (environmental cues),
 Private cues (person’s personal thoughts and background), and
 Behavioral cues (person’s behavior, that can be verbal and nonverbal).

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All these cues, as well as the environment, and noise, are part of the message. Each
communicator’s reaction depends on their background, experiences, attitudes, and beliefs.
Examples of Barnlund’s Model of communication include:
 Face-to-face interactions,
 Chat sessions,
 Telephone conversations,
 Meetings, etc.
3.b Dance’s Helical Model

According to Dance’s Helical Model, communication is seen as a circular process that gets more
and more complex as communication progresses.
That is why it is represented by a helical spiral.
With every cycle of communication, we expand our circle, and each communication encounter is
different from the previous one because communication never repeats itself.
Additionally, in the process of communication, the feedback we get from the other party
involved influences our next statement and we become more knowledgeable with every new
cycle.
The Johari Window Model
History
It is necessary to improve self-awareness and personal development among individuals when
they are in a group. The ‘Johari’ window model is a convenient method used to achieve this task
of understanding and enhancing communication between the members in a group. American
psychologists Joseph Luft and Harry Ingham developed this model in 1955. The idea was

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derived as the upshot of the group dynamics in University of California and was later improved
by Joseph Luft. The name ‘Johari’ came from joining their first two names. This model is also
denoted as feedback/disclosure model of self-awareness.
Introduction
The Johari window model is used to enhance the individual’s perception on others. This model is
based on two ideas- trust can be acquired by revealing information about you to others and
learning yourselves from their feedbacks. Each person is represented by the Johari model
through four quadrants or window pane. Each four window panes signifies personal information,
feelings, motivation and whether that information is known or unknown to oneself or others in
four viewpoints.
The Johari Window Model
The method of conveying and accepting feedback is interpreted in this model. A Johari is represented as a
common window with four panes. Two of these panes represent self and the other two represent the part
unknown to self but to others. The information transfers from one pane to the other as the result of mutual
trust which can be achieved through socializing and the feedback got from other members of the group.
Introduction
The Johari window model is used to enhance the individual’s perception on others. This model is
based on two ideas- trust can be acquired by revealing information about you to others and
learning yourselves from their feedbacks. Each person is represented by the Johari model
through four quadrants or window pane. Each four window panes signifies personal information,
feelings, motivation and whether that information is known or unknown to oneself or others in
four viewpoints
History
It is necessary to improve self-awareness and personal development among individuals when
they are in a group. The ‘Johari’ window model is a convenient method used to achieve this task
of understanding and enhancing communication between the members in a group. American
psychologists Joseph Luft and Harry Ingham developed this model in 1955. The idea was
derived as the upshot of the group dynamics in University of California and was later improved
by Joseph Luft. The name ‘Johari’ came from joining their first two names. This model is also
denoted as feedback/disclosure model of self-awareness.

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1. Open/self-area or arena – Here the information about the person his attitudes, behaviour,
emotions, feelings, skills and views will be known by the person as well as by others. This is
mainly the area where all the communications occur and the larger the arena becomes the more
effectual and dynamic the relationship will be. ‘Feedback solicitation’ is a process which occurs
by understanding and listening to the feedback from another person. Through this way the open
area can be increased horizontally decreasing the blind spot. The size of the arena can also be
increased downwards and thus by reducing the hidden and unknown areas through revealing
one’s feelings to other person.
2. Blind self or blind spot – Information about yourselves that others know in a group but you
will be unaware of it. Others may interpret yourselves differently than you expect. The blind spot
is reduced for an efficient communication through seeking feedback from others.
3. Hidden area or façade – Information that is known to you but will be kept unknown from
others. This can be any personal information which you feel reluctant to reveal. This includes
feelings, past experiences, fears, secrets etc. we keep some of our feelings and information as
private as it affects the relationships and thus the hidden area must be reduced by moving the
information to the open areas.
4. Unknown area – The Information which are unaware to yourselves as well as others. This
includes the information, feelings, capabilities, talents etc. This can be due to traumatic past
experiences or events which can be unknown for a lifetime. The person will be unaware till he
discovers his hidden qualities and capabilities or through observation of others. Open
communication is also an effective way to decrease the unknown area and thus to communicate
effectively.
Example

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Linda got a job in an organization. Her co-workers knew a little about her and in this context the
unknown and hidden areas will be larger and the open area will be small. As the others don’t
know much about her the blind spot also will be smaller and the model will be as shown in
Figure 1

MANAGEMENT
BEHAVIOURAL PROCESS
UNIT:04 Motivation
Maslow’s Need Hierarchy, Two-factor theory-Contemporary theories of motivation (ERG,
Cognitive evaluation, goal setting, equity) expectancy mode Behavior modification, Motivation,
and organizational effectiveness Contemporary issues in leadership. Power and conflict.
MOTIVATION
Meaning:
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.

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Maslow’s Need Hierarchy Theory of Motivation!

Abraham Maslow’s motivation theory is based on the human needs. These needs
are classified into a sequential hierarchy from the lower to higher order as five
need clusters as shown in the following Figure
Mslow's Need Hierarchy Theory

The above five need-clusters are now discussed in seriatim:

1. Physiological Needs:
These needs are of the lowest-order and most basic needs of human beings. These
involve satisfying fundamental biological drives, such as the need for food, air,
water, cloth, and shelter generally expressed in the names of roti, kapada aur
makan. These needs exert tremendous influence on human behaviour. Entrepreneur
also being a human being has to meet his physiological needs for survival. Hence,
he / she is motivated to work in the enterprise to have economic rewards to meet
his / her basic needs.

2. Safety and Security Needs:

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The second level of need in Maslow’s hierarchy is emerged once physiological

needs are met. Safety needs involve the need for a secure environment, free from
threats of physical and psychological harm. These needs find expression in such
desires as economic security and protection from physical dangers. Meeting these
needs requires more money and, hence, the entrepreneur is prompted to work more
in his/ her entrepreneurial pursuit. Like physical needs, these become inactive once
they are also satisfied.
3. Social Needs:
Man is social animal. These needs, therefore, refer to belongingness or affiliation.
All individuals want to be recognized and accepted by others. Likewise, an
entrepreneur is motivated to interact with fellow entrepreneurs, his employees, and
others.
4. Esteem Needs:
These needs refer to self-esteem and self-respect. These include such needs that
indicate self-confidence, achievement, competence, knowledge, and independence.
In case of entrepreneurs, the ownership and self- control over enterprise satisfies
their esteem needs by providing them status, respect, reputation, and independence.
5. Self-Actualization:
The final step under the need hierarchy model is the need for self-actualization.
This refers to self- fulfillment. The term ‘self- actualization’ was coined by Kurt
Goldstein and means to become actualized in what one is potentially good. An
entrepreneur may achieve self-actualization in being a successful entrepreneur.
In Maslow’s above need hierarchy theory, human needs are arranged in a lowest to
the highest order. The second need does not dominate unless the first is reasonably
satisfied and the third need does not dominate until the first two needs have been
reasonably satisfied. This process goes on till the last need.
This is because man is never satisfied. If one need is satisfied, another need arises.
Once a need is satisfied, it ceases to be a motivating factor. For entrepreneurs, it is
mainly social, esteem, and self-actualization needs which motivate them to work
more and more for satisfying them.
Herzberg’s Theory of Motivation (Two-Factor Theory)
Herzberg’s Two-Factor Theory of Motivation explains the effect of attitude on
motivation. What do the employees want? Are they looking for growth
opportunities, solid workplace relationships, higher salary, or job satisfaction are
some important questions that are considered the root of motivation?
The Two-Factor Theory of Motivation was written by American psychologist
Frederick Herzberg and published in his article “One More Time: How Do You
Motivate Employees”. Herzberg asked people to describe situations when they felt
very good and also very bad in terms of their job. He came to some extraordinary
conclusions that became the basis of his Theory of Motivation.
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What are the two factors in Herzberg’s Two-Factor Theory of Motivation?

Herzberg’s Theory of Motivation states employees does not work only for a salary.
There are job factors that result in satisfaction and some factors that prevent
dissatisfaction.
Factors for Satisfaction

 Achievement
 Recognition
 Growth
 Responsibility
 Advancement
 The work itself
 Factors for Dissatisfaction
 Security
 Status
 Salary
 Supervision
 Organizational policies
 Work environment
 Relationship with peers and supervisor

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According to the findings of Frederick Herzberg, the opposite of Satisfaction is No

Satisfaction and not dissatisfaction whereas the opposite of Dissatisfaction is No
Dissatisfaction and not satisfaction.
The factors leading to job satisfaction and job dissatisfaction are different from
each other. Eliminating one factor will not automatically enhance the other factor
or vice versa. Instead, you have to address each factor separately to achieve the
desired results.
According to Herzberg, there are two types of job factors
Hygiene factors
Motivating factors
1. Hygiene Factors
Hygiene factors, also known as maintenance factors or dissatisfiers, refer to the
elements that are necessary for the presence of motivation levels in the workplace.
It does not result in long-term positive satisfaction but if absent will lead to
dissatisfaction.
Herzberg in simple words states that the Hygiene factors are those which when
present in a reasonable number will keep the employees pacified and will not make
them dissatisfied. The hygiene factors explain the job environment and are a
reflection of the psychological needs which employees want and expect to be
fulfilled.
Some of the important Hygiene factors are
a. Pay
The pay structure must be reasonable, equal, competitive, and appropriate to those
in the same domain and same industry.

b. Company policies and administrative policies

Too much rigidity can cause innumerable problems so the company and
administrative policies should be fair, reasonable and clear for instance regular
breaks, flexible working hours and vacation time.
c. Fringe benefits
Every organization must offer fringe benefits to its employees like health care
plans, employee help programs, etc.
d. Status
The status of the employee within the organization must be familiar
e. Physical working conditions
Physical working conditions are an important Hygiene factor and include a
hygienic, safe, and clean workplace where the pieces of equipment are maintained
and up-to-date
f. Job security
It is the responsibility of the organization to provide job security to its employees
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g. Interpersonal relations
The employee’s relationship with subordinates, peers, and superiors should be
appropriate without any presence of conflict or embarrassment
2. Motivating Factors
Herzberg’s Motivation Hygiene Theory categorically states that hygiene factors are
not motivators. The motivating factors are inherent to work and offer positive
satisfaction and motivation. These factors also known as satisfiers are related to the
job and motivates people to give a better performance. Unlike Hygiene Factors,
Motivating l factors prove very rewarding for an employee.

Some of them are as follows-

a. Recognition
The management needs to recognize the work of the employees within the
organization and offer verbal praise
b. Responsibility
The management needs to give the employees ownership of the work and hold
them accountable for it.
c. Growth and Promotional Opportunities
An organization with growth and promotional opportunities will motivate
employees to do better.
d. Sense of achievement
The people in a company must feel a sense of achievement in the job.
e. Meaningfulness of the work
If the work in itself is challenging and interesting it automatically becomes
meaningful. Job enrichment has the power to motive employees.
 Mc Gregor Theory of X and Y

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Theory of X and Y is a theory on human work and motivation developed

by McGregor. He explained this concept in his book “The Human side of
Enterprise”.
Theory X and Theory Y are two contrasting models of how your work force
can be motivated.
According to the Theory of X and Y, there are 2 categories of
managers, based on what the managers think of their team members.
Theory X Managers
Theory Y Managers

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Theory X
Managers believe that a typical worker dislike work, avoids responsibility,
less ambitious and is individual goal-oriented.
They believe that team members need continuous monitoring and Supervision to
get things done.
They are Most likely use rewards or punishments for motivation.
There are 2 approaches Theory X managers may take in motivating their teams
1) Hard approach
2) Soft approach
Hard Approach – There is close supervision, intimidation, and immediate punishment.
Managers are looking for mistakes from employees. Managers do not trust employee
work. This approach results in minimal, hostile relationship between employees and
management.
Soft Approach – There is leniency and less strict rules for creating cooperative
employees. If the employees are avoiding responsibility whenever possible, this approach
results in low-output work force.
McGregor says that both the approaches are extremes, and an approach in the middle can
be the most effective implementation of Theory X.
Theory Y
• Theory Y Managers believe that employees are internally motivated, enjoy their work,
and can work without supervision.

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• They have a collaborative relationship with team members.

• They believe that team members are motivated by giving them more responsibility,
empowering them to take decisions, and allowing them to work on their own initiative.
• Theory Y Managers have cordial and even personal relations with employees. He acts as
a mentor and guide.
• Healthier work place, more or less democratic environment compared to Theory X work
environment.
ERG Theory Of Motivation

ERG theory consists of three groups of core needs: existence, relatedness, and growth.
ERG theory shows that a person works on fulfilling these needs simultaneously or
separately depending on the difference of goals, status, and the environment.
Alderfer argues that there are three groups of core needs: existence, relatedness, and
growth.
Existence Needs
These are constantly and pervasively important in the work setting.
Some of them are job security, suitable working conditions, reasonable working
hours, pay and fringe benefits.
 Provides our basic material existence requirements
 They include Maslow’s physiological and safety needs.
Relatedness Needs
These needs focus on how people relate to their social environment.
It involves the relationship with significant others—family, supervisors, co-workers,
subordinates, friends and so on.
 The desire we have for maintaining important interpersonal relationships
 These social and status desires require interaction with others.
 They align with Maslow’s social need and the external component.

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Growth Needs
These needs are those that compel a person to make creative or productive efforts for
him or herself.
The satisfaction of growth is what a person needs to experience in a sense of
completeness as a human being.
 An intrinsic desire for personal development. These include the intrinsic
component from Maslow’s esteem category and the characteristics included
under self-actualization.
ERG theory holds that the fewer existence needs are satisfied the more they will be
desired, but the more existence needs are satisfied; the more relatedness needs will be
desired.
The fewer relatedness needs are satisfied, the more both existence and relatedness
needs will be desired, but the more relatedness needs are satisfied, the more growth
needs are desired.5 stages of the Conflict process are; 1) potential opposition or incompatibility,
2) Cognition and personalization, 3) intentions, 4) Behavior, and 5) Outcome.
In this way, Alderfer distinguishes between chronic needs which persist over a period
of time and the episode needs which are situational and can change according to the
environment.

Goal Setting Theory of Motivation

What is Goal-Setting Theory?
Goal-setting theory of motivation states that specific and challenging goals, along with
appropriate feedback, contribute to higher and better task performance.
Goals indicate and give direction to an employee about what needs to be done and how much
effort is required to be put in. In the 1960s, Edwin Locke put forward the goal-setting theory of
motivation. The theory states that goal setting is essentially linked to task performance.
In the goal-setting theory, goals must be set based on 7 principles. To motivate, goals must have
these.
7 Goal-Setting Theory Principles
7 principles of goal setting theory are;
1. Clarity
2. Challenge
3. Commitment
4. Feedback
5. Task Complexity
6. Self-Efficiency
7. Goal Commitment
Let’s look at each of these in detail.
1. Clarity
Clear goals are measurable and unambiguous.
When a goal is dear and specific, with a definite time set for completion, there is less
misunderstanding about what behaviors will be rewarded.
“Reduce job turnover by 15%” or “Respond to employee suggestions within 48 hours” are
examples of dear goals.

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2. Challenge
One of the most important characteristics of goals is the level of challenge.
People are often motivated by achievement, and they’ll judge a goal based on the significance of
the anticipated accomplishment.
Rewards typically increase for more difficult goals. If you believe you’ll be well compensated or
otherwise rewarded for achieving a challenging goal, that will boost your enthusiasm and drive
to get it done.
If an assignment is easy and not viewed as very important – and if you or your employee doesn’t
expect the accomplishment to be significant – then the effort may not be impressive.
3. Commitment
Goals must be understood and agreed upon if they are to be effective. Employees are more likely
to “buy into” a goal if they feel they were part of creating that goal.
5 Marketing Concepts are Production, Product, Selling, Marketing, and Societal Marketing
Concept. 00:00/00:00
The notion of participative management rests on involving employees in setting goals
and making decisions.
4. Feedback
In addition to selecting the correct type of goal, an effective goal program must also include
feedback. Feedback provides opportunities to clarify expectations, adjust goal difficulty, and
gain recognition.
It’s important to provide benchmark opportunities or targets so individuals can determine how
they’re doing for themselves.
5. Task Complexity
The last factor in the goal-setting theory introduces two more requirements for success. For goals
or assignments that are highly complex, take special care to ensure that the work doesn’t become
too overwhelming.
Goal-setting theory has certain eventualities, such as Self-efficiency and Goal commitment.
6. Self-Efficiency
Self-efficiency is the individual’s self-confidence and faith that he has potential.
When a person performs a task, the higher the level of self-efficiency, the greater the efforts will
be in the individual when they face challenging tasks.
While lower the level of self-efficiency less will be the efforts put in by the individual, or he
might even quit while meeting challenges.
7. Goal Commitment
The goal-setting theory assumes that the individual is committed to the goal and will not leave
the goal. The goal commitment is dependent on the following factors:
 Goals are made open, known, and broadcasted.
 Goals should be set-self by individuals rather than designated.
The individual’s set should be consistent with organizational goals and vision.
Features of Goal Setting Theory
1. The willingness to work towards the attainment of the goal is the main source of job motivation.
Clear, particular, and difficult goals are greater motivating factors than easy, general, and vague
goals.
2. Specific and clear goals lead to greater output and better performance. Unambiguous, measurable,
and clear goals accompanied by a deadline for completion avoid misunderstanding.

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3. Goals should be realistic and challenging. This gives an individual a feeling of pride and triumph
when he attains them and sets him up for the attainment of the next goal. The more challenging
the goal, the greater the reward generally, and the more is the passion for achieving it.
4. Better and appropriate feedback on results directs the employee behavior and contributes to
higher performance than an absence of feedback. Feedback is a means of gaining reputation,
making clarifications, and regulating goal difficulties. It helps employees to work with more
involvement and leads to greater job satisfaction.
5. Employees’ participation in goals is not always desirable. Participation in setting the goal,
however, makes the goal more acceptable and leads to more involvement.
Advantages of Goal Setting Theory
1. Goal-setting theory is a technique used to raise incentives for employees to complete work
quickly and effectively.
2. Goal setting leads to better performance by increasing motivation and efforts, but also by
increasing and improving the feedback quality.
Limitations of Goal Setting theory
1. At times, the organizational goals conflict with the managerial goals. Goal conflict has a
detrimental effect on the performance if it motivates incompatible action drift.
2. Very difficult and complex goals stimulate riskier behavior.
3. If the employee lacks the skills and competencies to perform actions essential for the goal, the
goal-setting can fail and undermine performance.
4. There is no evidence to prove that goal-setting improves job satisfaction
Equity Theory of Motivation
In the equity theory of motivation, employee’s motivation depends on their perception
of how fair is the compensation and treatment for their work input. Equity Theory
states that the employees perceive what they get from a job situation (outcomes) about
what they put into it( inputs) and then compare their inputs- outcomes ratio with the
inputs- outcomes ratios of others.
The equity theory of motivation describes the relationship between the employee’s
perception of how fairly is he being treated and how hard he is motivated to work. J.
Stacy Adams developed equity theory.

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This theory show-

 Inputs: Inputs include all the rich and diverse elements that employees believe
they bring or contribute to the job – their education, experience, effort, loyalty,
commitment.
 Outcomes: Outcomes are rewards they perceive they get from their jobs and
employers’ outcomes include- direct pay and bonuses, fringe benefit, job
security, social rewards and psychological.
 Overrewarded: if employees fell over-rewarded equity theory predicts then
they will feel an imbalance in their relationship with their employee and seek to
restore that balance.
 Equity: if employees perceive equity then they will be motivated to continue to
contribute act about the same level.
 Unrewarded: unrewarded who feel they have been unrewarded and seek to
reduce their feeling inequity through the same types of strategies but the same
of this specific action is now reverse.
This theory is based on the following two assumptions about human behavior:
1. Individuals make contributions (inputs) for which they expect certain outcomes
(rewards). Inputs include such things as the person’s past training and
experience, special knowledge, personal characteristics, etc. Outcomes include
pay, recognition, promotion, prestige, fringe benefits, etc.
2. Individuals decide whether or not a particular exchange is satisfactory, by
comparing their inputs and outcomes to those of others, in the form of a ratio.
Equity exists when an individual concludes that his/her own outcome/input
ratio is equal to that of other people.
The essential aspects of the equity theory may be shown by an equation;
 There should be a balance of the outcomes/inputs relationship for one person in
comparison with that for another person. If the person thinks that the rewards
are greater than what is considered, he/she may work harder.
 If the person perceives the rewards as equitable, he/she probably will continue
at the same level of output.
 If the person feels that he/she is inequitably rewarded, he/she may be
dissatisfied, reduce the quantity or quality of output, or even leave the
organization.
 The three situations of equity theory are illustrated in the following figure:
 An employee with several years’ experience can be frustrated to find out that a
recent college grad hired at a salary level higher than he or she is current
earnings, causing motivation levels to drop.
COGNITIVE EVALUATION THEORY OF MOTIVATION
Cognitive Evaluation Theory is a theory in Psychology that is designed to explain the
effects of external consequences on internal motivation. Cognitive Evaluation Theory

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theory suggests that there are two motivation systems; intrinsic and extrinsic which
correspond to two kinds of motivators.

Intrinsic Motivators
Achievement, responsibility, and competence; motivators that come from the actual
performance of the task or job — the intrinsic interest of the work.
Extrinsic Motivators
Pay, promotion, feedback, working conditions — things that come from a person’s
environment, controlled by others. One of the other of these may be a more powerful
motivator for a given individual.
Intrinsically motivated individuals perform for their achievement and satisfaction.
If they come to believe that they are doing some job because of the pay or the working
conditions or some other extrinsic reason, they begin to lose motivation.
The belief is that the presence of powerful extrinsic motivators can reduce a person’s
intrinsic motivation, particularly if the extrinsic motivators are perceived by the
person to be controlled by people.
In other words,
A boss who is always dangling this reward or that stick will turn off the intrinsically
motivated people.
If the cognitive evaluation theory is valid, it should have major implications for
managerial practices.

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 Pay or other extrinsic rewards are to be effective motivators, they should be

made contingent on an individual’s performance.
 Cognitive evaluation theorists would argue that this will tend only to decrease
the internal satisfaction that the individual receives from doing the job.
 If correct; it would make sense to make an individual’s pay non-contingent on
performance to avoid decreasing intrinsic motivation.
Expectancy Theory
Expectancy Theory of Motivation was developed by Victor H. Vroom in 1964 and extended by
Porter and Lawler in 1968.
The Expectancy Theory of Motivation attempts to explain why people behave the way they do.

Expectancy Theory basically states that a person behaves the way they do because
they are motivated to select that behavior ahead of others because of what they expect
the result of that behavior to be.
As managers, Expectancy Theory can help us to understand how individual team
members make decisions about behavioral alternatives in the workplace. We can then
use this information as an input for creating motivated employees.

Within the theory there are three variables at play:

[Link]. Effort -> Performance (E -> P)
[Link]. Performance -> Outcome (P -> O)
[Link]. Outcome -> Reward (V(R))
All three factors must be present to motivate employees effectively.
1. Expectancy
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Expectancy is the belief that if you work hard (effort) you will be able to hit the targets
(performance) that have been set for you by your manager.
You make this judgment based on a number of factors, including:
 Your past experience.
 Your confidence in your ability.
 How difficult you perceive the target is to achieve, and whether or not the target is under your
control.
An example of expectancy is thinking, “If I work hard I can achieve the targets my boss has set
for me”.
2. Instrumentality
In this variable, you’re assessing how likely you are to receive a reward if you hit the targets that
have been set for you.
Again, you make this judgment based on a number of factors, including:
 Is the relationship clear between performance and reward (outcome).
 How much you trust the person who decides on the reward.
 How transparent is the decision-making process around who gets what reward?
An example of instrumentality is thinking, “If I achieve all of the targets set for me then I believe
I will get promoted”.
3. Valence
So far we have a goal to hit and we understand the reward we’ll get if we hit it. The final piece of
the motivation puzzle is valence. Valence is simply the perceived value of the reward to you.
This could be negative if you actively want to avoid the reward, zero if you are unmotivated by
the reward, or one if you’re motivated by the reward.
When it comes to valency, an employee will have to weigh up the pros and cons, for example,
“Do I want to be promoted? Will the extra work result in even less time with my family? Is it
really worth putting in a serious effort for a whole year to receive a promotion and a 10% pay
rise?”

Organisational Behaviour Modification

Organisational Behaviour Modification (OBM) is a technique for personnel management that
focuses on improving observable and measurable work-related behaviour. Examples include
absence or tardiness, but also quality or quantity of work. Organisational Behaviour Modification
argues for intervention to encourage desired performance behaviour and discourage undesired
behaviour.
Fred Luthans and Kreitner developed this technique. Organisational Behaviour Modification can
also be used to motivate the employees and improve the organisation’s effectiveness.

To understand what this technique is all about, several related definitions will first be described.
These definitions are: attitude, behaviour and organisational behaviour.
Attitude
An attitude constitutes a way of thinking or feeling about something, a certain emotional state at
that specific moment.

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Behaviour
Behaviour is defined as the way in which a person acts towards themselves and to those around
them.
Organisational behaviour
A way to change behaviour and attitudes through technology and use newly discovered
knowledge to influence employees to act in various ways.
Fred Luthans and R. Kreitner developed and used Organisational Behaviour Modification for a
behavioural approach to the management of human resources for performance enhancement.

1. Identify undesired behaviour. Use the following questions as guideline.

– Can the behaviour be reduced to observable behavioural events?
– Can it be counted how often each behaviour occurs?
– What should the person do before a behaviour is recorded?
– Does it involve an important performance-related behaviour?
2. Measurement. Measure the current frequency of the behaviour to offer a baseline against
which improvement can be measured.
3. Analyse. Determine the triggers or antecedents for this behaviour and also establish the
consequences – positive, neutral or negative – that arise from this behaviour
– Analysis of reinforcement history
– Use self-reporting measures
– Systematic trial and error to identify reinforcements
4. Intervention. Develop an intervention strategy to reinforce desired behaviour and weaken
dysfunctional behaviour by using positive reinforcement and corrective feedback, where it
can be noted that punishment might be necessary in some cases, for instance to curb unsafe
behaviour.- Develop an intervention strategy that takes into account environmental variables
such as structures, processes, technologies, groups and tasks.
– Apply the right strategy by means of suitable types of unforeseen events
– Measure to establish the frequency of behaviour after intervention
– Maintain desired behaviour by using applicable reinforcement schemes
5. Evaluation. Evaluation is needed to ascertain whether the activities are effective

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Five steps are followed in changing undesired behaviour. These steps are further clarified below.
1. Identification of critical behaviour
To apply Organisational Behaviour Modification, it’s important to identify negative behaviour.
These have significant influence on employees’ performance. Employees can be involved in
various behaviours in the organisation.
Some behaviours are critical, such as absence or presence, tardiness or speed, complaints or
constructive criticism, and carrying or neglecting to carry out a certain task or procedure.
There are also behaviours that aren’t critical, such as a bad attitude or being silly. Critical
behaviour can be identified by speaking to the employee concerned and his/ her direct
supervisor. A systematic behaviour audit can also be used to identify such behaviour.
2. Measuring behaviour
After a negative behaviour has been identified, it is measured in terms of the rate at with which it
occurs.
When the number of cases falls within the acceptable limit (such as the absence through illness
with one percent), it is not necessary to take action.
If the number of cases exceeds this limit, the behaviour must be altered. Behaviour can be
measured by observing and counting it or by retrieving this from records.
3. Functional analysis of behaviour
Functional analysis encompasses a detailed investigation of the current behaviour of the
employees to determine which consequences the specific behaviours cause.
But also which circumstances lead to this. It determines one of the most practical problems when
using an Organisational Behaviour Modification approach to change critical performance
behaviour.
4. Intervention
Identification of certain behaviour and the factors that cause such behaviour will determine the
development of a suitable intervention strategy.
Intervention is action that is taken to change undesired critical behaviour. The main goal is to
reinforce and expedite desired performance behaviour and weaken undesired behaviour.
5. Systematic evaluation
The last step in Organisational Behaviour Modification is the systematic evaluation that assesses
whether the intervention strategies are effective. This given the fact that the basic goal of
Organisational Behaviour Modification is to change undesired behaviour to improve
performance.
LEADERSHIP
MEANING
Leadership is the ability of an individual or a group of individuals to influence and guide
followers or other members of an organization.

CONTEMPORARY ISSUES IN LEADERSHIP

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1. Honing Effectiveness.
This leadership challenge is about developing the relevant skills — such as time management,
prioritization, strategic thinking, decision-making, and getting up to speed with the job — to be
more effective at work.
2. Inspiring Others.
This is the challenge of inspiring or motivating team members to ensure they’re satisfied with
their jobs and working smarter.
3. Developing Employees.
This is the challenge of developing others, including coaching and mentoring effectively.
4. Leading a Team.
Another key challenge is that of team-building, team development, and team management.
Specific leadership challenges related to this include how to instill pride, how to provide support,
how to effectively engage in collaboration, how to lead a big team, how to establish team norms,
and what to do when taking over a new team.
5. Guiding Change.
The challenge of managing, mobilizing, understanding, and leading change means that being a
successful change leader isn’t easy. It requires knowing how to mitigate consequences, overcome
resistance to change, and deal with team members’ reactions to change.
6. Managing Stakeholders.
The last leadership challenge is managing relationships, politics, and image in the work
environment. This includes gaining managerial support, managing up, influencing others, and
getting buy-in from other departments, groups, or individuals.
Organizational Power and Conflict
Organizational Power and Conflict
Today, clear majority of individuals are on a constant struggle to achieve more, when it
comes to work. Social status is usually measured by the individual’s occupation, thus there

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is always a constant need to achieve a higher and more powerful position within one’s
organization. One of the biggest issues in larger organizations, is the need to have more
power than the next individual and this can lead to several workplace conflicts.
Organizations are virtual minefields when it comes to interpersonal relations. It is often the
case that people who do not know each other, are not compatible, or who do not even like
each other are thrown together in organizations and expected to work together
harmoniously and productively (Nelson A., 2017). I believe that if the need to compete
between colleagues was taken out from an organization and replaced with the need to
achieve more as a team, the organization would be a lot more successful and the employees
would be able to enjoy their job and workplace environment.
However, at the center of these organizations, lies the issue and need for power. What is
power? Power is the ability to influence other people to do what you want them to do. One
might think having power is good and ideal, however power can be an issue specially when
it comes to issues of difficult colleagues (Nelson A., 2017). Power changes people and
those who rise to the tops of companies and other organizations tend to prioritize their own
goals and desires above those of others. These individuals fail to take other people’s
perspectives into account, tend to disregard other people’s feelings and are, less polite.
When these individuals position within that company is threatened, they act aggressively
to preserve their position of power (Greer L., 2014).
Per McClelland’s need theory, people have three needs in the workplace. First is the need
for achievement, second is the need for affiliation and finally the need for power. When it
comes to larger organizations, the need for power comes first in the workplace, followed
by the need to achieve more and last the need for affiliation. However, in smaller
organizations the need to achieve more comes first, since individuals usually tend to work
together to achieve the same goal. The need for power comes second within the smaller
organizations and finally the need for affiliations comes last (Nelson A., 2017).

Conflict

Conflict in a workplace and the need for power in an organization almost always go hand
in hand. It is always good to avoid conflict in a workplace. With conflict comes other
unnecessary issues that can have a negative effect on the quality and efficiency of work
itself. We might ask ourselves what are some ways that we can avoid a workplace conflict?
While conflict is a normal part of any social and organizational setting, the challenge of
conflict lies on how one can deal with it. Concealed, avoided or otherwise ignored, conflict
will likely grow into resentment, create withdrawal and cause infighting within the
organization. The root of most conflicts is either born out of poor communication or
inability to control one’s emotions (Myatt M., 2012). Some of the ways that one can avoid
conflict in a workplace is by effective communication. Chances are everyone can do a little
bit better to avoid stepping on each other toes if there are no misunderstandings and
miscommunications amongst coworkers and the management. Sometimes one cannot
avoid conflict at all cost and that’s when it’s better to hit conflict head-on and deal with it
rather than avoiding it and causing it to escalate into a bigger issue. One other effective

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way to resolve conflict is by keeping in mind the other persons point of view and their
objective. If we all can achieve what we need to achieve then there should be no need for
conflict. In other words, happy colleagues and workplace, means a happier you. However,
we cannot always control the actions of others in a workplace, and we can always do our
best to the right thing.

………………………………………………………

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