Management is universal in modern industrial world.

Every organization requires the making of decisions,

the coordination of activities, handling of people, and the evaluation of the performance directed towards
organizational objectives. Specialization and increase

Principles and Practices of Management

Chapter 1. NATURE AND IMPORTANCE OF MANAGEMENT
Management is universal in modern industrial world. Every organization requires the making of decisions, the coordination of activities,
handling of people, and the evaluation of the performance directed towards organizational objectives. Specialization and increase in the scale
of operations have increased the importance of management.
Management is the process of designing and maintaining an environment in which individuals working together in groups
accomplish effectively selected aims. If we expand this definition we understanding that:
Management is present in any kind of organization (business or non-business).
Its aim is to create a surplus, i.e., management is concerned with productivity which is measured through effectiveness and
efficiency.
A manager works in coordination with both the internal and external environment.
It is essentially decision making under various constraints.
It is an integrated as well as continuous process.
It is use of means to accomplish given ends.
For achieving the objectives the Managers have to assume responsibility, achieve a balance among competing (and often conflicting) goals,
and have to be conceptual thinkers. The term management is often used to refer to a group of managerial personnel of an enterprise.
Sometimes, this term is used as a way of referring to the process of managing. On other occasions it is used as a substantive to describe the
subject, the body of knowledge and practice as a whole, the discipline. Strictly speaking, management is a functional concept and does not
include persons who practice management. Such persons are designated as Managers, Executives, etc. However, in our daily transaction
we generally include the practitioners within the scope of this term.
The managerial process is a complex social activity. It is a process because it comprises of a series of actions that lead to accomplishment of
objectives. It is known as a social process because these actions are concerned with relations between people, i.e., inter-personal
relationship. It is a continuous process, there is always fresh minds to stimulate, newer area and approaches to explore, and ever changing
situations to tackle. Management is a mental or intellectual process involving thought, judgement and decision, the fundamental aim being
achievement of certain objectives.
Technological development has continuously changed the setting of management. However, the chief characteristics of management are the
integration and application of the knowledge and analytical approaches developed by numerous disciplines. This involves:
1.
2.
3.

Formation of policy and its translation into plans,

Execution and implementation of plans, and
Exercising administrative control over the plans.

Utilisation of resources has been one of the most common and yet perhaps the most complex management activity. Maximum return and
utility from limited available resources has been the main aim of any manager. Traditionally, only three factors of production were recognised
i.e., Man, Machine, and Material. However, with the development of thought, a fourth factor of production was recognised, in the absence of
which the other three factors could be rendered useless. This fourth vital factor of production was entrepreneurship. The entrepreneur could
be a person having his own resources or a custodian of someone else's resources, organising it with a view to attain maximum output and
efficiency with minimum input. As such, Management can also be defined as a process through which all the resources are organised and
utilised to attain maximum output and efficiency through minimum input.
A liberal point of view is not merely a sum of number of narrow approaches. Its emphasis is on freedom to choose from widest range of
possibilities already available or newly evolved. The stress is on expanding the mental horizon with utmost freedom with an effort to strive
towards an ultimate in life. The paradox of management is that it is based on identifiable and rigorous framework of concepts, but at the same
time it continues to strive towards breaking out of any set discipline.
The characteristics of a good manager may be described in broad terms as initiative, intelli- gence, judgement, dependability, integrity,
perseverance, and so on. Thus, management can also be defined as a process of bringing about improvement in knowledge, skill, habits,
and attitudes of the employees in an organization. In other words it refers to development of people in the organization. Management
involves improvement in knowledge factors, attitude factors, and ability factors of the employee in an organization.
Knowledge factors refer to ideas, concepts, or principles that are conscious, able to be expressed, and are accepted because they
are subject to logical proof.
Attitude factors relates to those beliefs, feelings, desires, and values that may be based on emotions and may not be subject to
conscious verbalization. interest in ones work, desire to accept responsibilities, respect for the dignity of one's associates, and
desire for creative contribution are some of the attitude factors.
Ability factors are too often treated as being unaffected by environment. Skill, art, judgement and wisdom are the four most
important ability factors required in management. Although these are abstract, but nevertheless they can be developed and
sharpened through practice.

One of the most important characteristics regarding the nature of management is that its prin ciples have universal application. Management
problems are present in all joint activity, be it a family, school, small-scale or large corporation, or a trade union. The head of these
institutions use the same managerial techniques and principles in solving their problems and achieving their desired goals.
Universality of managerial principles means that they are transferable, i.e., the same principles can be used by various departments
regardless of the nature of their functions. Not only that, the universality of managerial principles also means that they can be transferred
from one level to another. All managers perform the same managerial function regardless of their position in the organizational hierarchy.
Different schools of thought have emerged and all of them define management in their own way :
Classical School :
Management is ordering people to do the job.
Management is designing job structure.
To manage is to forecast, to plan, to organize, to command, to coordinate and to control (Fayol)
Behavioural School :
Management is managing men.
Management is the development of people and not the direction.
Modern Definition : Management is a multipurpose organ of the society, which aims at utilizing the resources of the country for creating a
situation of plenty and comfort instead of scarcity and misery.
The development of the theory of management is useful because it provides a broad basis for approaching management problems. In the
recent time, there has been a growing concern about the proper role of a business firm within our society. Traditionally, this role was limited
to production and distribution of economic goods and services, in return for profits. However, the term "social responsibility" is being referred
to quite often in the present day situation. It has been increasing felt that the social consequences of business organization cannot be ignored
any longer.
Management is a 'process comprising of series of actions that lead to accomplishment of objectives. Since these actions are basically
concerned with inter-personal relationships every management decision has a social impact. Therefore, management can also be called a
social process. Is management and administration the same? According to one school of thought 'Management' is a comprehensive term
embracing within its scope the entire process of planning, policy-making, co-ordination of activities, maintaining discipline, as well as
controlling the operations so as to attain best possible results.
Thus, management activity can be classified into two broad heads -Administrative Management and Operative Management. The former is
primarily concerned with policy-decision making, changing such decisions as and when necessary, preparing plans, fixing standards of
performance and verifying the actual performance vis--vis pre-determined standards. On the other hand operative management is
concerned with carrying out of these policies and plans to achieve the organizational objectives.
However, another school of thought, led by eminent writer Oliver Sheldon, is of the view that management is a lower-level function and is
concerned primarily with the execution of the policies formed by the top-body or administration. This school, narrows down the meaning of
management by stating that administration determines the corporate policy, co-ordination of finance, and definition of goals, whereas,
management uses the policies and strives towards the objectives.
Administration is inherent in the performance of all normal business functions. Every manager discharges both administrative as well as
managerial functions. Quantum of administrativ and managerial functions depends upon his position in the organizational hierarchy. Higher
they are in the hierarchy, more is the time and effort devoted in administrative activities like formulation of policies, determination of
objectives, etc. However, they too spend some time in managing and directing those directly under their command. The daily activity in the
managerial hierarchy can be demonstrated as under:
Management is a continuing and dynamic process. Fresh situations and problems arise every now and then, advocating the need for
continuous development of theories and principles to solve the management problems and achieve the organizational objectives. No system,
procedure or policy is perfect, there may be various drawbacks in every system. Just because some policies have worked wonderfully in one
organization, there is no guarantee that they would be successfur in another organization.
It can be said that the process of management is a mental or intellectual process involving thought, judgement, and decision. Management
efforts are to provide an atmosphere in which efficiency and accomplishment are recognised and rewarded, employee self-development is
emphasized, and employees' rights and privileges are fulfilled. The growth of the organization is a cumulative effect of the growth of the
people working in the organization.
A question is always raised when we start management studies and this is concerning the basic nature of the subject i.e., Is management a
science or an art? There is no straight answer to this question. But like all practices, managing is an art and using knowledge of management
is a science. Therefore managing as a practice is an art; the organized knowledge underlying the practice maybe referred to as a science.
Thus, it is both a science and an art, also both these are not mutually exclusive but are complementary.

Science and art of management are interwoven and overlapping in nature. They complement each other and are not mutually exclusive.
However, it may be added that although the art of management is very old, the science of management is an event of recent past. It was only
in the later part of 19th century that management came to be regarded as a scientific process. Recently, considerable attention has been
given to analytical approaches to management, resulting in emergence of mathematical formulae, business games, operations research, and
scientific decision-making.
A scientific approach requires clear concepts -by determining and analysing these facts scientists look for causal factors, when these are
found true than they become principles, i.e., they are believed to be valid enough to be used for prediction. A theory is a systematic grouping
of interdependent concepts and principles that give a framework for the gathering of significant knowledge. Management theory provides
means of classifying significant and pertinent management knowledge principles.
Therefore, it can be concluded that management contains elements of both science as well as art. The management science provides a body
of principles or laws for guidance in the solution of specific management problems and objective evaluation of results. The analysis of basic
management functions has led to the development of certain principles that can be applied as general guidelines for solving future problems.
On the other hand, the art of management deals with the application of skill and effort for producing desirable results.

Principles and Practices of Management

Chapter 2. EVOLUTION OF MANAGEMENT THOUGHT
EVOLUTION OF MANAGEMENT THOUGHT
Management as a subject is relatively young. It evolved in various phases.
CLASSICAL THEORIES OF MANAGEMENT
Fredrick, W Taylor and Scientific Management : Taylor gave up college in 1875 and joined Midvale Steel Works as a machinist in 1878.
He became the Chief Engineer (after doing an Engineering course). He is called the "Father of Scientific Management". He had first hand
knowledge about problems existing at various levels of management.
Taylor 's major concern was Increasing efficiency in production not only to lower costs and raise profits but also to make possible increased
pay for workers through higher productivity. He said productivity suffered mainly due to ignorance and the tension of how to split profits but
not how to increase profits. Taylor undertook Time and Motion studies.
Taylor's - Principles of Scientific Management -1911
1.
2.
3.
4.
5.

Replacing rule of thumb with science (Organized Knowledge)

Obtaining harmony in group action rather than discord
Achieving cooperation of humans not chaotic individuals
Working maximum output, not restricted output
Developing all workers to the fullest extent, possible for their own and the companies higher prosperity

Henri Fayol - Process Management theory: Fayol wrote a book called "General and Industrial Management". He stated that all operational
activities in a business organization can be classified under six headings:
Financial (search for and optimum use of capital)
Accounting (including statistics)
Commercial (buying, selling, exchange)
Managerial (planning, organization, command, co-ordination, control)
Technical (production)
Security (protection of property and persons)
Fayol stressed on managerial aspects and he regarded elements of management as its functions - planing, organizing, commanding,
coordinating and controlling. His observations are still valid after 7 -8 decades. Throughout his study he stressed on the universality of the
principles. He repeatedly pointed out that the principles apply not only to business but also to political, religious, philanthropic, military and
other undertakings. Fayol is also called the real father of modern management theory; he also gave 14 general principles of management.
These principles are flexible not absolute.
1.

Division of work - Fayol applies this principle to all kinds of work, managerial as well as technical.

2.

Authority and responsibility - Fayol found these are related, with the latter arising from the former.

3.

Discipline - Fayol said discipline requires good superiors at all levels.

4.

Unity of command - Single superior should give orders.

5.

Unity of Direction - Each group of activities with the same objective must have one head and one plan.

6.

Subordination of individual to general interest .

7.

Remuneration - Must be fair giving maximum possible satisfaction to employees and employer.

8.

Centralisation - Fayol says individual circumstances will determine the degree to which authority is concentrated or dispersed.

9.

Scalar chain - Payol believed that "chain of superiors" from highest to lowest ranks should not be departed from needlessly but can
be short-circuited when the need be.

10. Order - "A place for everything and everyone"

11. Equity - Loyalty can be elicited from personnel by combination of kindliness and justice.

12. Stability of tenure - Unnecessary turnover can have high danger and costs.
13. Initiative - Managers must sacrifice personal vanity to permit subordinates to exercise initiative.
14. Espirit-De-Corps -" In union there is strength" emphasising the need for teamwork "and importance of communication in obtaining it
Fayol concluded by saying that his list was not exhaustive but some kind of codification of principles appeared to be indispensable in every
undertaking. Taylor & Fayol's work is complementary to a large extent.
Max Weber -Principle of Bureaucracy: He laid down three principles 1.

Hierarchy of authority: Hierarchy of positions should provide for supervision of each office by a higher authority.

2.

Continuing body of rules: All organizations work in accordance with these rules.. All administrative acts, actions and decisions
should be recorded in writing so as to provide for future scrutiny and permanent record.

3.

Clear-cut division of work: Specific areas of competence should be determined on the basis of division of labour. Appointments
and promotions on the basis of universalistic criterion of demonstrated competence.

NEO CLASSICAL TIHEORIES OF MANAGEMENT

Emergence of behavioral sciences: During Taylor and Fayol's time, many scholars were thinking about experimenting with and writing on
Industrial Psychology and Social Theory. Father of Industrial Psychology Hugo Muntserber in his book "Psychology and Industrial Efficiency"
talked of:
How to find people whose mental qualities best fit them for the work they are to do.
Under what psychological conditions the greatest and most satisfactory output can be obtained from every person.
How a business can influence workers to obtain the best possible results from them.
He was interested in reducing working time, increasing wages and raising the "level of life"
The Hawthorne studies : Elton Mayo and F J Roethlisberger undertook experiments at the Hawthorne plant of Western Electric Company
between 1927 to 1932. Before this from 1924 to 1927, National Research Council with Western Electric Co. was studying the effect of
illumination on productivity. They found that whether illumination was increased or decreased the productivity went on increasing.
They were going to declare the study a failure when Mayo and Roethlisberger continued the research. Mayo found changing illumination,
modifying rest periods, shortening workdays and varying incentive pay-systems did not seem to explain changes in productivity. Mayo
concluded that improvement in productivity was due to social factors as morale and sense of belonging. This phenomenon of people being
noticed came to be known as Hawthorne Effect.
After this study greater and deeper understanding of social and behavioural aspects of management was seen.
Abraham Maslow -Need Hierarchy Theory: He said every human being has five needs:
Physiological
Security
Affiliation
Esteem
Self-Actualization
According to him these needs were seen in hierarchical order i.e., only after one was fulfilledl the other showed its appearance.
McGregor - Theory and Theory Y
Theory X - The manager considers subordinates to be lazy.
Theory Y - The manager considers subordinates like to work if they are given work.

Elements of Neo Classical Theories

The Individual - Classical theorists ignored the differences among the individuals. Neo classical theorists stressed on individual
differences. They said each person is unique.
Work Groups (Informal Organizations) - An individual in a group develops social wants that is the need to belong
Participative Management - Taylor opposed this he wanted specialists to give training, Neo- classical and Modern Management

welcomes this.
The Neo Classical Theories of management led to the emergence of a new subject called Organizational Behavior. This subject mainly
dealt with the role of people in organizations and how to understand, predict and control the human behaviour. OB was based on certain
assumptions:
Organizations are not just techno-economic system but a social system.
People are not only motivated by economic incentives but their social and psychological wants also have to be fulfilled.
Democratic rather then authoritarian leadership is the key to effective leadership.
Effective two-way communication is essential for managerial success.
Management must take greater interest in employee development and workers satisfaction.
Informal organizations and groups should be recognized and considered to be a reality because they are bound to exist.
Management must develop social skills in addition to technical skills.
MODERN MANAGEMENT THEORIES
Modern management theories have twin objectives:
Productivity (Classical Approach)
Satisfaction (Neo-Classical Approach)
1.

Quantitative Approach to Management - Operations Research -Linear Programming, Game Theory, Queuing Theory, Simulation
etc. But these are limited in their application as the final decision is always the managers.

2.

Systems Approach - Since 1950, a period of refinement, extension and synthesis of management thought and practice. It stresses
on the inter-relatedness and interdependence of all activities within an organization. It includes Operations Research, Behavioral
Science, Social - technical System, Management Information Systems and Industrial Dynamics. System Approach to Management
is a popular approach used widely. This approach uses the following basic inputs, processes and outputs. In a system all
subsystems of the organization along with the supra-system of environment are interconnected and interrelated.

3.

Contingency Approach - Situational Approach - According to this approach every firm is unique and so is every situation, so
there can not be tailor made solutions to any problem. Every problem will have a unique solution.

Principles and Practices of Management

Chapter 3. MANAGEMENT FUNCTIONS
Management process can be best analysed by studying the functional approach. According to this approach, the function of Management is
principally a task of planning, coordinating, motivating, and controlling the efforts of employees towards a specific objective. It involves
combining of individual goals to that of organizational goals. The process of planning, organising, motivating, and controlling involves various
steps as under:
Planning is the determination of the objective of an organization to achieve maximum profit effectiveness, the establishment of policies and
innovating better ways of performing a given task. It enables the managers to be a step ahead of each activity, retain initiative to make use of
the opportunity and anticipate problems before they actually arise. The process of planning involves:
crystallisation or determination of organizational objectives
collection and classification of information
development of alternative courses of action
comparison of alternatives in terms of objectives
feasibility and consequences
selection of optimum course of action, and
establishment of policies, procedures, methods, schedules, programmes, systems, standards, and budgets
In other words, planning means that targets to be achieved are well defined which requires laying down the objectives as far as possible in
quantified terms. Relevant information relating to the objectives should be properly collected and classified so as to enable the managers to
use it without delay. The manager is always faced with alternative courses of action. He should adopt one that has the highest probability of
yielding maximum benefit to the organization. Plans must be detailed and flexible so that they are capable of being re-adjusted in case there
is a change in the working conditions and / or objectives.
Organising means coordinating the activities of various groups of employees, assets, money and time into efficient production of goods and
services. After the plans have been prepared, personnel must be selected and assigned to their jobs. They must be trained and motivated to
perform to the best of their capability. The process of organization involves:
division of work into component activities,
assigning people to tasks,
defining responsibilities,
prescribing limits of authority and its delegation, and
establishment of structural relationship to secure co-ordination.
Authority is the key to a managerial job, and delegation of authority is the key to organization. Just as a manager is handicapped without
authority, an organization cannot be created in absence of delegation of authority.
Motivation is the core of management functions and can be regarded as the most vital element in the process of management. The process
of motivation involves:
providing effective leadership,
integrating people and tasks towards achievement of the overall objectives,
providing effective communication, and
providing a climate for employee development.
This Function of management calls for the practice of a high degree of social skills based on an adequate understanding of human nature in
different individuals, their common and individual needs factor and urges in relation to their work
Controlling refers to the evaluation of performance of those who are responsible for executing the plans. This may include
(a) controlling adherence to plans, and (b) appraising performance. Utilisation of resources has been one of the most common and yet
perhaps the most complex management activity. Maximum return and utility from limited available resources has been the main aim of every
commercial organization. Management can also be defined as a process through which all the resources are organised and utilised to attain
maximum output and efficiency through minimum input.
In an undertaking, control consists of verifying whether everything occurs in conformity with the plans adopted, the instructions issued and
the principles established. Its object is to point out weaknesses and errors in order to rectify them and prevent their recurrence. It operates on
things, people, and actions. The plans become the standard by which the accomplishments are to be measured. Similarly, the requirement of
clear and complete organizational structure helps in pin- pointing the responsibility, the deviation and the corrective action required. From the
above it can be inferred that the control process involves three steps:
establishing standards,
measuring performance against those standards, and

reinforcing success / correcting deviation.

Management controls should formulated keeping in view its organizational goals. Through passage of time it has to be improved upon so that
it remains reliable, objective and cost - effective. It is no use having a control system whose benefits are lower than the cost involved in
implementing it.
All managers carry out all the managerial functions but the time spent on each function may differ depending in organizational hierarchy.
Mintzberg has done lot of research on managerial roles. According to him a manager has:
Interpersonal roles:
1.
2.
3.

Figurehead role (performing ceremonial and social duties as the organizational representative).
The leader role.
The liaison role (communicating particularly with outsiders).

Informational roles:
1.
2.
3.

The recipient role (receiving information about the operation of an enterprise).

The disseminator role (passing information to subordinates).
The spokes-person role (transmitting information to those outside the organization).

Decision roles:
1.
2.
3.
4.

The entrepreneurial role.

The disturbance handler role.
The resource allocator role.
The negotiator role (dealing with various persons and groups of persons).

Aim of any manager is normally on reducing inputs but according to Peter F Drucker "The greatest opportunity for increasing productivity is
surely to be found in knowledge work itself and especially in management". The most important aim of any manager is thus to create a
surplus, i.e., to enhence the productivity of the firm. Various managerial skills are required for creating a surplus. Some of the main ones are:
1.

Technical skills - Knowledge of and proficiency in activities involving methods processes and procedures.

2.

Human skills - Is the ability to work with people, it is cooperative effort, it is team - work, it is the creation of an environment in
which people feel secure and free to express their opinions.

3.

Conceptual skills - Is the ability to see the "big picture" to recognize significant elements in a situation and to understand the
relationships among the elements.

4.

Design / Analytical ability - Is the ability to solve problems in ways that will benefit the enterprise. Managers don't have to only be
"problem watchers" they have to be able to design a workable solution to the problem in the light of the realities they face.

5.

Administrative ability - Is the ability of the manager to do the administrative work.

All levels of managers require these skills, but technical skills required more at the supervisory level. Human skills are helpful in interaction
with subordinates and are needed equally at all levels. Conceptual skills are seen more at the top level.

Principles and Practices of Management

Chapter 4. PLANNING AND DECISION MAKING
Planning is the process by which managers examine their internal and external environments and ask fundamental questions about their
organization's mission, goals, and objectives. If group effort has to be effective, people must know what they are expected to accomplish.
Therefore, it is the first and the most important management function.
Planning requires selecting missions and objectives and the actions to achieve them.
Therefore planning requires Decision Making -i.e., choosing from alternatives the best possible option to solve the problem. Planning is
charting the future course of action at present. Thus, we can, say that plans provide a rational approach and strongly imply managerial
innovation.
Planning is an intellectually demanding process, the future course of action is consciously determined and decisions are based on purpose,
knowledge and considered estimates. Without: planning events are left to chance.
Planning is deciding in advance who will do what, at a certain time and what is to be achieved. In business, planning is an ongoing effort
since changes are continuous. A plan is a predetermined course of action to achieve a specified aim or goal. It is a blueprint of action.
Planning is an analytical thought process that covers:
Assessment of future
Determination of objectives and goals
Development of alternative courses of action
Selection of best course of action
Planning precedes all other functions -All plans must contribute to purpose and objectives. It is all pervasive activity -all levels of managers
have to do planning. Plans are effective if they achieve their purpose at a reasonable cost (in terms of time and money). Planning has to be
systematic to ensures a timely, orderly, and cost-effective process to achieve specific objectives. Planning should involve everyone centralized planning occurs when responsibility rests with top-level executives. Decentralized planning occurs when responsibilities rest with
managers and workers who actually execute the tasks.
Types of Planning : Type of planning is determined by three factors, namely Scope (The range of activities covered), Time frame (the
period covered by the plan) and Level of Detail (the specificity of the plan). Depending upon these factors, planning could be:
Strategic planning - comprehensive, long-term, and relatively general planning.
Operational planning - focused, short-term, and specific planning.
Tactical planning - more narrow, intermediate-term planning, more specific than strategic planning, but not as narrow as
operational planning.
Types of Plans : As opposed to the various types of planning, different types of plans could be:
1.
2.
3.
4.

5.

Purpose or Mission - Basic function assigned by society to the organization:

Objectives / Goals - Ends towards which activity is aimed and end point of the organization.
Strategies - Broad areas of an enterprise operation, normally its in light of competitors. The firm has to decide on its growth goal
and desired profitability. Form a framework for guiding, thinking and action.
Policies - General statements that guide decision-making. Policies encourage discretion and initiative within limits.
Procedures - Establish a required method of handling future activities, they are guides to action.
o Rules - Specific required action, allowing no discretion.
o Programs - Complex of goals, policies, procedures, rules, tasks, assignments steps to be taken, resources to be employed
and other elements necessary.
o Budget - Statement of expected results expressed in numerical terms i.e., numerical program

Steps in the Planning Process: Planning process involves four steps and then gives way to the implementation phase. These steps are:
1.
2.
3.
4.

5.

Assess Current Conditions: Determine the current situation, including examination of re- sources, market trends, economic
indicators, and competitors.
Determining Goals and Objectives: Goals are future states or conditions that contribute to the fulfillment of the organization's
mission. Objectives are short-term, specific, measurable targets that must be reached to accomplish organizational goals.
Establishing an Action Plan: An action plan is a specific set of behavior that will lead to the attainment of an objective.
Allocate Resources: Resources include people, money, and time.
o TFP - (Total Factor Productivity) is a measure of a firm's effectiveness in using its resources to create product values.
o A budget is a predetermined amount of resources allocated to an activity which includes budgeting organizational
resources for each step in the process.
Implementation: The commitment of organizational resources through the delegation of tasks, objective-driven actions, and
feedback of data.

6.

Control the Implementation: The continuous management of plans to ensure that they meet objectives in the correct time horizon.

Objectives: Objectives should be understandable and measurable. However, it has been observed that stretched goals lead to higher
performance than easy ones. Similarly, they should be prioritised to provide direction to employees. Objectives need to be met by a specific
time; therefore managers must develop plans to meet short, intermediate and long-term objectives. They can be framed as per following
alternatives -Short-term Vs Long-term, Profit margin Vs Competitive position, Profit Vs Non-profit objectives, or Low-risk environment Vs
High-risk environment. Other types of objectives could be:
Profitability Objectives - based on the attainment of specific financial objectives such as re- turn on investment (ROI), or return on
assets (ROA), or change in net worth.
Marketing Objectives - can be expressed as increases in unit sales, dollar volume, or market share.
Productivity Objectives - an efficiency measure that assesses how many resources were used to produce one unit of output.
Physical & Financial Objectives - the ability of the organization to use physical assets and capital to achieve objectives.
Quality Objectives - ability to achieve product quality and service quality objectives. Your text lists measures that can be used to
assess both product and service quality.
Importance of Planning: Good plans are simple and easily understandable, flexible or adaptable to new conditions. It is balanced and gives
equal importance to all vital areas of business. It uses available resources to the utmost before creating new resources. A good plan must
lead the, organization forward on the path of progress and prosperity. Planning is necessary because it establishes a clear relationship
between decision-making, mission, values, goals and objectives.
Good planning involves the following values:
Customer driven, not product-driven
Employee participation, not management authority.
Fact-based decisions, not intuition.
Emphasis on continuous, not periodic improvement.
Prevention of defects, not detection of defects.
Planning focuses on the future direction, values and sense of purpose. It provides a unifying decision making framework and helps to identify
potential opportunities and threats, and minimize risks. It sets standards for performance and helps to control events rather than be controlled
by them. The need for planning arises from constant change in the environment.
Pressure to Reduce Cycle Times - Cycle time reduction, or the time to complete a process and to be ready to begin anew is
deemed essential to success in current markets. Where economy of scale was a key concept, it is complemented today by economy
of time. Reductions in time should not be made at the expense of quality or customer service.
Increased Organizational Complexity - More products, more competitors, more product complexity, all yield greater complexity in
the planning process.
Increased Global Competition - More diversity is present in global markets. Cultural diversity is just another form of uncertainty to
be reduced by the firm. Uncertainty in global exchanges is reduced through planning.
Impact on Other Management Functions - Plans influence such organizational activities as organizing, managing, selling, and
training, Without integrated plans, each function might use different, possibly, contradictory methods to meet objectives.
Benefits of Planning: Planning can be very beneficial in four major areas:
Coordination of Effort
Preparation for Change
Development of Performance Standards
Development of Managers
1.

2.
3.
4.
5.
6.
7.
8.

Integrated, constant and purposeful action is more easily achieved. All efforts are directed towards desired objectives or results.
Unproductive work and waste of resources can be minimized. Through planning managers can relate decisions to each other and to
goals of the enterprise.
Planning enables a company to be competitive with other rivals. Progressive management likes to be proactive rather than reactive.
Through planning adverse situations can be anticipated and mistakes or delays avoided. Trouble can be more often easily corrected
in its earlier stages than after a crisis "Forewarned is forearmed".
Planning helps to plan for changes and also helps in managing change effectively.
Planning leads to systematic and thorough investigation of alternative methods.
Plans are based on adequate information of the past, present and intelligent forecasting of the future.
Plans give control standards.
Planning facilitates effective delegation of authority and removes communication difficulties

Limitations of Planning: Planning is not a perfect measure against risk as reliability of forecasts are inversely proportional to time. Planning
is very costly and must justify its existence and often delays action. Planning may give a false sense of security as standing plans are
repetitive and lead to resistance to change.

MANAGEMENT BY OBJECTIVES (MBO)

A good plan is based on clearly defined objectives -Management by objectives (MBO) is now widely used for planning, where objectives,
policies and plans are set at all levels of management through meaningful participation between the superior and subordinate. Goals must be
interconnected but often people within companies pursue paths good for their own departments but detrimental to the company as a whole.
MBO is a comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously
directed towards the effective and efficient achievement of organizational and individual objectives.
DECISION MAKING
It is the selection of the appropriate alternative from a set of alternative courses of action. It is the core of planning. Decision making has been
identified as the primary responsibility of any manager. Decision making is at the core of all planned activities. Effective decision making must
be rational, i.e., for effective decision making the decision maker must generate all the possible alternatives, he must also have all the
relevant information, be able to analyze and evaluate alternatives and must have a desire to achieve the best solution. Seldom can 100%
rationality be achieved as future entails uncertainties so the manager must settle for limited rationality. Limitations are in terms of information,
time and certainty.
Alternatives are evaluated based on quantitative and qualitative factors. Selection is done based on experience, experimentation or research
and analysis. The decision may be Programmed (structured) i.e., repetitive and routine or Non-programmed (unstructured) i.e., unique,
strategic. Decisions are made under different conditions:
Certainty conditions - Cause effect known
Risk condition - Probabilities can be drawn
Uncertainty condition - Meager database unsure whether situation will change or not
The degree of risk varies from decision to decision.
Objectives of the Decision Making Process
1.
2.
3.
4.
5.

Improve the business by successfully solving problems that are causing external or internal customer dissatisfaction.
To ensure we do not jump to solutions before we have analysed the CAUSE(S) of our problems.
Provide a process (tool) that can be used by the team to maximise contribution from each individual and the creativity from the
team.
Implement solutions to problems that really do eliminate the problem through PREVENTION processes.
Value addition to the product or services rendered.

Decision making process requires a structured approach involving six steps:

1.

2.

3.

4.

5.

6.

Identify and select the problem: A 'problem' is a deviation between the ACTUAL results and the TARGET level at which the
results should be, or an OPPORTUNITY level at which the results could be. A problem statement should be written based on the
measurements taken. The most serious problems are those the customer experiences. Implement holding action, if necessary,
while solving the problem.
Analyse the causes of the problem: Brainstorm all potential causes of the deviation. Usually, there are several causes of a
problem that require analysing and prioritising. This will require collecting data which provides the facts needed rather than opinions.
Determine the root causes.
Generate potential decisions: For most problems there are usually several solutions. The first idea is not always the best.
'Brainstorming' and 'building' on ideas are the most effective ways to find the right solutions. Use competitive benchmarking to adopt
other's ideas.
Select and plan the decision to be implemented: Prioritise the solutions identified using cost-benefit analysis together with the
timetable demanded by the urgency of the problem. A specific ACTION PLAN must be prepared identifying the key activities with
start and finish dates, and the named individuals who will carry them out. The proposed plan is then presented to the next higher
manager for approval, giving opportunity for team 'recognition'.
Decide and implement: The Project Teams are responsible for implementing the decision. Regular review of the Project is
essential to control progress and costs, ensuring that the benefits are gained. Contingency plans may need to be activated to
overcome practical difficulties arising.
Evaluating the decision: Following successful implementation, the project must be monitored and evaluated. Has the problem
been solved? Is the customer satisfied? What added value has been achieved? It may be necessary to use the Decision Making
Process again.

How to define a problem? There are five key measurements for each 'output'

HINDRANCES TO EFFECTIVE DECISION MAKING

Many hidden factors hinder us in arriving at effective decisions. Some arise from our psychological make-up, others from the environment in
which we try to solve problems. We must recognise and try to counteract these influences in order to become better decision-makers.
How we respond to the world is shaped largely by experience that may result in providing skills necessary to solve a particular problem or we
may learn things that actually hinder us. There are four main dimensions to our psychological make-up which can be affected -perception,
expression, emotion and intellect.
Perception: Difficulties can arise when we don't accurately perceive a problem or the information needed to solve it. This includes:
Seeing only what we expect to see.
Not recognising problems effectively.
Stereotyping -applying inappropriate labels.
Not seeing a problem in proper perspective.
We tend to jump to conclusions, based on the obvious, and look no further. As a result we may take too narrow a view, recognising only a
part of the problem or the information required for solving it. Following can be consequences of wrong perception:
We may simply not recognise a problem.
We may miss good opportunities if we do not see the full picture.
Our solution may be inadequate.
Our solution may not be workable as we failed to take into account certain information /factors.
Of all the psychological aspects of decision making, how we perceive situations is easiest to manipulate. Following steps will help to ensure
that you see the full picture:
Establish systems arid procedures to alert you to potential problems and opportunities.
Don't rely on single or obvious measures.
Define and analyse problems carefully, ensuring you gather all relevant information.
Question whether you have used inaccurate information or made assumptions about what is and isn't relevant.
Ask for other people's points of view.
Use graphic representations to clarify the relationships between different aspects of a problem. .
Regularly review the status quo.
Expression: the ability to express information and ideas clearly during problem solving is important. Difficulties with expression can include:
Inability to articulate or express ideas adequately.
Using the wrong "language" to work on a problem.
Unfamiliarity with the application of a language.
Routinely we use words to communicate and these often dominate our thinking. However, not all problems are best tackled using words
alone. In using language to express ideas to other people we must take account of their understanding of that language. Steps to improve
our expressive abilities are as follows:
Identify which languages are most likely to help you solve a particular problem.
Get expert 'help with problems that necessarily involve a language you are not fluent in
Try using languages other than the norm, e.g., visuals instead of words, charts instead of raw data.
While communicating, adapt to the audience's level of understanding.
Emotion : Our emotional make up can cause difficulties when it conflicts with the needs of problem solving. For example

Fear of making mistakes or looking foolish.

Impatience.
Avoiding anxiety.
Fear of taking risks.
Emotions exert an incredibly powerful influence over our thoughts and actions, even though we may regard ourselves as sober, rational
individuals. Emotions can encourage us to indulge in survival behaviour or give rise to needs for achievement, recognition, belonging, self
esteem and so on. Fear of making mistakes or looking foolish in front of others is the most common manifestation .of emotional conflict. This
is more severe if senior colleagues are around.
Our desire for security tends to make us set objectives within easy reach or accept common, solutions without going in for creative ones.
Emotion is deep seated and an integral part of us. It is; not easy to change. Some practical steps can help us to recognise and avoid the
negative effects:
Critically, question existing ideas and methods.
Accept that some mistakes are inevitable while looking for better ways of doing something.
Remember many people were ridiculed for what turned out to be great inventions.
If you dislike change, do some "wishful thinking" to see what benefits change would bring.
Follow a strictly methodical approach to curb impatience.
Reduce anxiety by tackling problems in more manageable steps.
Identify the possible unpleasant outcomes while taking risks, and look for ways to minimise them.
If a problem does appear challenging, imagine the greatest benefit that could be achieved with a totally new solution.
Intellect: How we apply our intellect to our problems rather than our ability, is the primary source of difficulties. They include:
Lack of knowledge or skills in problem solving process.
Not enough creative thinking.
Lack of flexibility in thinking.
Not being methodical.
Knowledge, understanding and reasoning are fundamental in problem solving. However, we all account difficulties in applying it. Its not "what
you have got" but "how you use it", that is important. Even more difficult is translating a creative idea into something more structured and
logical. With practice we can start applying our mind flexibly and creatively. Following strategies would help:
Be methodical and work systematically.
Consider what approach is best for each problem.
Practice using the various aids to problem solving (quality tools, etc.).
COMMITTEE AND GROUP DECISION-MAKING
The purpose of formal organizations is to provide a framework for cooperation and to fix responsibilities, delegate authority and provide for
accountability. A committee is a group charged with dealing with specific problems or problem areas. Committees are often criticised but the
problem is not in the existence of committees but in the way they are conducted and where they are used. Group process in committees generally has four stages
Forming ( getting to know each other)
Storming ( determining objectives of meeting; here conflicts arise)
Norming ( group norms and behavioural rules are set)
Performance (these are not essentially in this order)
Committees can be just for information or for decision making
If the authority involves decision making affecting subordinates responsible to it, it is called a Line Committee.
If authority relationship is to a superior i.e., it is advisory in nature then it's a Staff Committee.
Committees which are a part of the organization structure with specifically delegated duties and authority are FORMAL. Those without any
specific delegation of authority (usually by someone designing a group decision on a problem) are informal committees. A formal committee
may be temporary (if it is for solving only one problem). Committees are widely used in all types of organizations and are popular because
they lead to several benefits.

Advantages of committee approach to decision making: Group deliberation and judgment is considered better than individual judgment.
It also negates the fear of delegation. It provides representation to interested groups and coordination of departments, plans and policies,

transmission and sharing of information and motivation through participation. It avoids too much authority in a single person and is easily
accepted due to its representative style
Disadvantages of committee approach: One of the biggest disadvantages of group decision making is escalation of cost and time which
may sometimes lead to compromise of decision making. It also results in splitting of responsibility leading to indecision.

Principles and Practices of Management

Chapter 5. ELEMENTS OF ORGANIZING
People working together in groups to achieve some goal must have roles to play; organizing involves establishing intentional structure of
roles for people in all enterprise to fill. It is a tool of managing and not an end in itself.
The purpose of organizing is to fit together individuals and their tasks as productively as possible, so that every individual knows what his
responsibility is, that is how he fits into the organization pattern, and the end result is synergism (i.e. 2 + 2 = 5 effect).
Basic elements of organizing
Identifying the activities involved to attain the objectives of the enterprise.
Grouping of similar activities.
Definition of responsibility and authority.
Delegation of the requisite authority.
Provision of adequate physical facilities to discharge duties.
Establishment of clear structural relationships among individual and groups.
As a company grows in size it does more and more activities and organizing gets complicated.
TYPES OF ORGANIZATIONS
Formal organizations result from planning where the pattern or the structure has already been determined by the Chief Executive of the
firm. An informal organization is any joint personal activity without conscious joint purpose even though possibly contributing to joint results.
Informal organizations comprise of all kinds of groups which are not prescribed officially through formal organizing efforts but have evolved
naturally bring cemented together through social interests.
Effects of organizing
Specialization is encouraged which enhances productivity.
Duplication of activities is avoided.
Co-ordination is fostered by supplying framework for holding together the various functions in an orderly pattern and logical
arrangement.
Expansion and growth is aided.
Span of management and organization levels: Organization levels exist because there is a limit to the number of persons a manager can
supervise effectively (though this limit varies depending on situation, type of work, etc). The span may be categorized as narrow or wide.
Advantages of narrow span: Close supervision, close control, fast communication between sub-ordinates and superior.
Disadvantages of narrow span: Superior tend to get too involved in subordinates work, many levels of management leads to cost
escalation, excessive distance comes up between top and lowest level of management.
Advantages of wide span: Superiors are forced to delegate, clear policies have to be made, and subordinates are carefully selected.
Disadvantages of wide span: Tendency of overloaded superiors to become decision bottlenecks. Danger of superiors' loss of control
requires exceptional quality of managers. It is also expensive leading to indirect costs, more managers, more peons, costs of facilities etc.,
also department levels complicate communication-omissions and misinterpretation of information may result. It also complicates planning &
control
Factors determining an effective span: Things like personal capacities of superior and subordinate like comprehending quickly
commanding loyalty and respect lead to reducing time spent by superiors and subordinates.

FACTORS INFLUENCING THE SPAN OF MANAGEMENT

Subordinate training: Better the training of subordinates lesser the contact necessary by superior. This governs the superior subordinate
relationships. Well-trained subordinates need less managers time and contact.

Clarity of delegation of authority: The main reason for excessive time burdens on superior- subordinate relationships is inadequate
authority delegation
Clarity of plans: Routine jobs can have more accurate plans and if they are non-routine planning will be that much tougher.
Use of objective standards: So that superior can know which subordinate is deviating and direct attention can be given to exceptional
cases for successful execution of plans.
Rate of change: It is also an important determinant of the degree to which policies can be formulated and stability of policies maintained.
Communication techniques: Effective communication of plans and instructions clearly and concisely increases a manager's span. Amount
of personal contact needed in the business. Different businesses have different requirements.
Variation by organization level: A study has shown that specialization by individuals was an important variable affecting span, if there are a
lot of specialties, effective spans were narrower at lower and middle levels but increased at upper levels, lack of variety of work has little
effect at any level.
STRUCTURE AND F'ROCESS OF ORGANIZING
Structure must reflect objectives, plans, authority available and the environment (political, social, ethical, technical etc.).
As the structure is filled by people, therefore, it must take into account people's limitations and customs.
Organizing does not imply any extreme occupational specialization which normally makes labor uninteresting, tedious and unduly restrictive.
THEORIES OF ORGANISING
Classical Approach - has four pillars
Division of labor
Scalar and functional processes (horizontal and vertical growth)
Structure
Span of control
Managers who believe in Theory X use Carrot (money) and Stick (punishment) approach. A dehumanized organization structure was seen.
Neo Classical Approach
Theory Y: Reflects human relations movement as well as behavioral science approach. This approach stresses on motives, supervision,
group and intergroup behavior. People oriented organizations came up which emphasized on informal organizations.
Systems Approach
Defines organization as a structured process in which the individuals interact for fulfillment of objectives. Emphasis is on adaptability and
efficiency. Organization is seen as an open and adaptable system which has five parts:
1.
2.
3.
4.
5.

The individual.
Formal structure.
Group or informal organization.
Status and role patterns.
Physical environment of work.

The linking processes are communication, concept of balance and decision process. The organizational system has three goals -growth,
stability and interaction among individuals and groups. Under systems approach there are three main components
Individuals, Formal organization & Informal organization
Contingency approach - Systems orientation with further modifications. Emphasis is on the need to adapt the organization to the
demands of technology, the need for innovation generating from environmental and decision making uncertainty.
Multivariate Approach -Regards organization as a system of four interacting variables
1. Task - Basic business.
2. Structure - covering system of authority, workflow and communication.
3. Technology.

4.

People (Actors).

A stable industry may have mechanistic organization. Organic management is most suitable for coping with unstable and changing conditions
and unpredictable problems. Dynamic technologies like electronics, computers should have organic structure with less emphasis in rules with
necessary decentralization and liberal lateral communication.
Sound organization provides the best mechanism for management in action. Well designed and balanced organization facilitates
management and operations of the enterprise, leads to precise and effective delegation, enables growth and diversification, provides
optimum use of technical improvements, encourages stability, provides effective management of change and gives premium to innovations.
In today's dynamic environment if a company is not innovative it is bound to die.
AUTHORITY AND POWER
Power is a much broader concept than authority. It is the ability of an individual or group to induce or influence beliefs and actions of other
persons and groups. Authority on the other hand is the right due to a position to exercise discretion; it is power in an organization setting.
Power could be derived due to following basis:

Line and staff concept: Line functions have a direct impact in the accomplishment of the objectives of the enterprise. Staff functions help
line persons to work more effectively in accomplishing the objectives. Clearer the line of authority from ultimate management position in an
enterprise to every subordinate position clearer will be the responsibility for decision-making, more effective organization communication will
be. Line authority is direct supervision by superior over a subordinate. Staff relationship is advisory, the function is to investigate, conduct
research and give advice to line managers.
Line and staff are mainly authority relationships and not what people do. Some departments are predominantly staff (R&D, P R). Others are
line (Finance, Marketing, and Production). Although often departments are referred to as line or staff but within each department there are
line and staff relationships.
Authority is the right that is delegated to an individual or department to control specified processes, practices, policies or other matters
relating to activities undertaken by persons in other departments. Decentralization of authority is the tendency to disperse decision-making
authority in an organized structure. Decentralization implies more than delegation. It reflects the philosophy or organization and management.
DELEGATION OF AUTHORITY
Many managers fail due to poor delegation. No one person can do all the work for the group, similarly no one manager can exercise all
authority for making decisions. The process of delegation involves:
Determination of results expected from a position.
Assignment of tasks to a position.
Delegation of authority for accomplishing these tasks.
Holding of people in positions responsible for accomplishment of tasks.
Delegation must have clarity so it should be written, but regular changes must be made in organization structure to keep it flexible. Delegated
authority can always be recovered. Splintered authority exists wherever a problem requires pooling of delegated authority of 2 or more
managers.
Personal attitudes towards delegation
Perceptiveness to other ideas
Willingness to let go (by superior)
Willingness to let others make mistakes
Willingness to trust subordinates
Guidelines for overcoming weak delegation
Define assignments and. delegate authority in the light of results expected
Select the person in the light of the job to be done
Maintain open lines of communication
Establish proper controls
Reward effective delegation and successful assumption of authority
Factors determining the degree of decentralization of authority
Cost of the decision (in cash or intangibles)

Desire for uniformity of policy

Size and character of the organization
History and culture (Ford motors -centralized, Merged companies- decentralized)
Management philosophy
Desire for independence
Availability of managers
Control techniques
Decentralized performance
Business dynamics
Environmental influences (Government controls, tax etc.)

Delegation is a device to meet the challenge of growth. Those who are jealous of other doing well cannot delegate. An overworked executive
is generally poor at delegation. He is overloaded with work he should not be doing -a good manager must learn to work with and through
others.
Authority, Responsibility and accountability are the three elements of delegation in the absence of anyone of these delegations are
impossible. Delegation is not a process of abdication of responsibility. Mutual trust is one of the important pre-requisites of delegation.
Delegation is entrustment of responsibility and authority to another and the creation of accountability for performance.
Delegating of authority is the creation of an obligation on the part of the subordinate to the superior executive for the satisfactory performance
of the assigned duties. The acceptance of this obligation on the part of the subordinate creates responsibility. Responsibility can not be
delegated so the superior even after delegating a job to the subordinate is ultimately responsible for its accomplishment so he must continue
to supervise direct and control the subordinate to whom he has delegated the authority.
Authority and responsibility should be coexisting and both must be present for smooth functioning of the organization, the entire process of
delegation can become ineffective unless authority delegated is commensurate with responsibility.
A manager must realize that every business is a continuing entity and must work efficiently even in the absence of the top most efficient
manager so the manager must delegate his power to subordinates so that they can deal with problems independently and use their own
initiative.
DEPARTMENTALIZATION
Is grouping activities and people into departments. It helps to expand organizations. There is no ideal way of Departmentalization applicable
to all situations and organizations. Various forms are seen in the industry, such as:
Departmentalization by simple numbers (Only useful at the lowest level).
Departmentalization by time (Very old systems -shifts seen in organizations where normal working day does not suffice e.g.,
Hospitals).
Departmentalization by enterprise function (Grouping of activities in accordance with the functions of an enterprise -example Production, selling, financing etc.).
Functional Departmentalization (It is the most widely employed basis for organizing activities and is at present seen in almost
every enterprise).
Departmentalization by territory (Based on geographical territories).
Customer Departmentalization (Grouping of activities to reflect a primary interest in customers is common in services industries).
Process Departmentalization (Seen in manufacturing firms).
Product Departmentalization (In multi-line large-scale enterprises).
Coordination may be achieved through rules, procedures, planning, organizational hierarchy, personal contacts and sometimes through the
Liaison department.
Advantages of departmentalization:
Logical and time proven, specialization leads to efficiency, simplifies training, facilitates tighter control, maintains power, also there is
added prestige of major functions.
Places responsibility at lower levels, emphasis on local markets, improves coordination, advantage of economies of local operation,

measurable training ground for General Managers.

Encourages concentration on customer needs, develops expertness in a customer area.
Disadvantages:
De-emphasis of overall company objective over departmental objectives, over specialization and narrow viewpoints of key personnel
may result, reduces coordination, responsibility for profits is at top only, slow adaptation to changes, limits development of General
Managers.
Requires more persons with general manager abilities, problem of top management control.
May be difficult to coordinate operations between customer demands, customer groups may not always be clearly defined.
MATRIX organization
Another kind of departmentalization is Matrix / Grid / Projects. Here a combining of functional and product departmentalization is seen in the
same organization structure. This is seen in construction, marketing etc. A matrix organization is oriented towards end-results, professional
identity is maintained. pinpoints product-profit responsibility. However. it has a disadvantage that there is a possibility of disunity of command.
requires managers effective in human relations. Now Strategic Business Units (SBUs) are being seen within an organization for a product.
There is no one best way of departmentalization and departmentalization is not an end in itself. Departmentalization is just a means of
organizing.

Principles and Practices of Management

Chapter 6. MANAGING CHANGE
ELEMENTS OF CHANGE
There are two main elements of change:
what exactly is changing, and
how to deal with the emotional and psychological sense of loss of the old, familiar, or routine.
The change may involve a job, a location, job responsibilities, a team, or a manager, and it can be very significant; however, the most vital
part of change is the way in which we deal with it. The most successful change efforts carefully address both of these elements -in reverse
order.
Managers can begin a successful change intervention by first realizing that employees have a "sixth sense" about changes about to happen,
so whether anything is said or published, they can sense it. It's naive to believe that management can hide change until it's about to happen,
and the air of uncertainty and suspicion among employees leads to counter-productivity, adverse morale, fear, and stress. The best decision
managers can make (although our gut instinct is to try to hide "bad news") is to provide employees with as much detailed information about
the upcoming change as possible and to be as open, honest, and up-front as early as possible when the need for change is recognized.
BARRIERS TO CHANGE
Fear, anger, and uncertainty (emotion)
Failure to see the need for the change (perception)
Feeling that all change must be negative (attitude)
Lukewarm acceptance of change or a wait-and-see attitude (reluctance)
Failure or refusal to see the positive opportunities inherent in change (resistance)
When change occurs, employees are likely to put up several barriers to change, often without recognizing that they are forming these
barriers. Emotion is always a part of change - both positive and negative change. For example, landing a new job and being transferred to
another division are both exciting but incite very different emotions. We have to understand and allow for the letting go of the comfortable and
familiar for a new experience or situation.
Failure to see the need for change (perception) may be a result of management's failure to fully explain the change and help people "buy
into" the change. The attitude that all change must be negative is often a by-product of poorly handled previous change initiatives.
Reluctance is very natural reaction to proposed change because it signifies the loss of something familiar or comfortable. It takes time to
work through this process, but it's also important to move people forward and get them involved in the new change and working toward
positive goals for the future.
Outright resistance must be addressed head-on. If it shows in an employee at the very outset of change, work through the process and try to
get the person to see the need for change, accept the change, and move forward. After all avenues have been exhausted, you must take
whatever appropriate action is required to move the company forward, with or without this employee.
EMBRACING CHANGE
No one can dispute that change is here to stay! The spiraling rate of change we have seen affects successful transition through one change
before being hit with the next one. This results in a feeling of continuous 'wilderness'. No wonder individuals feel lost and stressed by the
changes that impact their lives.
What can we do about these changes? It is clear that we can't control or stop change. The healthy option is to 'embrace change'. What do we
mean by 'embrace change'? Anticipate change if possible. Recognition of change before it hits, or at least when faced with it, allows us to
deal more effectively with it. Denying change will only increase its ultimate impact since it hits us when we are unprepared to adapt to it. The
successful ones "don't fight it, join it!" Blaming others for change prevents us from accepting and adapting to the change. Let's face it,
organizations must change to survive. Preserving 'status quo' is deadly during turbulent times. Holding on to the 'old way of doing things'
requires energy. By choosing to invest energy in adapting to change, we become more productive. Controlling our response to change will
empower us to do more!
Realignments or quick adjustments will allow us to 'ride the waves' of change. This change resiliency will allow us to not only survive, but
thrive! Having a positive mindset of 'embracing change will lead to more effective, change-adaptive behaviors. As work changes, this
resiliency will prove to be a career success factor. It lead us to re-evaluate our work, and prioritize the 'essential work.' By focusing on these
newly established work priorities, we can give up old activities that are no longer value-added. Reinventing our jobs lets us maintain high
performance as the work requirement changes. This serves to transform us from 'doing work right' to the more impactful contribution of 'doing
the right work'.
If change is something we see as a negative in our lives, it will be difficult for us to develop a change-adaptive mindset. By dreading or
denying change, we are assuming that change is bad. Change presents us with new opportunities. These opportunities allow us to grow.

Change is all around us -at home and work alike. To put change in perspective, answer the following question: "When was the last time you
walked over to your television set and turned the dial to get a different channel?" We take our remote-controls for granted, and must admit
that they are a convenience in our lives.
Is this change bad? Like everything else in life. There will be both good and bad changes that we experience. By 'embracing change' with
quick realignment, we have a better opportunity of maximizing the positive effects of change in our lives and work.
Nonstop change makes it difficult to complete one transition before being hit with the next change. Individual's response to constant change
is a 'lost' feeling. A healthy approach to constant change is to 'embrace' it. Embracing change starts with willingness to anticipate or accept
change when faced with it.
Denying change increases its negative impact. Blaming others for change is counterproductive to adapting to change. Organizations must
change to survive since 'status quo' can be deadly during turbulent times. Investing energy in adapting to change will increase productivity.
Controlling our response to change will empower us to do more.
Realignments or quick adjustments will enhance our change-resiliency. A positive mindset about change will lead to more effective, changeadaptive behaviors. Change-resiliency will prove to be a career success factor. Change presents us with new opportunities in our careers
and personal lives. By 'embracing change' with quick realignments, we will maximize the positive effects of change in our lives and work.
TIPS FOR MANAGING CHANGE SUCCESSFULLY
1.

Create an environment of openness: Give people as much information as possible, as early as possible to head off the
"grapevine" proclamations of doom and prevent employees from imagining the worst. Allow employees to ask questions and give
them straight answers. Employees worry because it's their lives and futures you're changing.

2.

Function as objectively as possible: Be prepared with as many facts, figures, and examples that support the reasons why a
change is necessary and beneficial, even if it is uncomfortable.

3.

Be sensitive to subjectivity and emotion: We live in our own comfort zones and almost automatically reject anything that violates
our zone. Remember that, above all else, change always suggests losing or giving up something that may be very important and
personal to the employee. You're dealing with human emotions and always need to be sensitive to that fact.

4.

Encourage development of alternative perspectives: Encourage employees to find positive ways to accept change. Minimize
potential disruption. Evaluating as many options as possible is a valuable technique to opening minds to the potential positive
impacts of change.

5.

Disconnect and re-establish: It's important to allow a reasonable period of time for employees to adjust to the loss of the old and
familiar. Afterwards, it is equally important to get them focused on the new path, begin to generate excitement and attain positive
goals, and re-establish the new comfort zone as another experience to be enjoyed and learned from, as the company moves
forward.

6.

Watch out for the internal "grapevine": Never underestimate the power of the internal "grapevine." News of impending change
travels fast, and while its essence is often in the ballpark, the accuracy can be questionable. Employees' trust and confidence in you
will be stronger when they hear about change from you rather than through the rumour mill.

7.

Give employees time to accept change: Remember that since you have been privy to the change before your employees, you
have had time to develop acceptance and direction. Your employees need the same opportunity to understand, accept, and adjust.
Be patient with them, within a reasonable period of time. Change involves old habits and the development of new ones.

8.

Display empathy: Change is emotional. By its very nature it involves letting go of something one has become attached to. It
involves a grieving, acceptance, and readjustment period. By showing empathy and understanding, you will help your employees
understand why change is taking place and start building support for your change efforts.

9.

Share the facts: Provide employees with all the facts you have. Show them why the change is being made. Share with them the
dangers or repercussions of maintaining the status quo, and ask them for their input on the dangers as the employees see them.

10. Demonstrate the possible benefits of change: Enthusiastically show people the benefits once you have successfully
implemented the changes. Admit there is pain, anger, and disillusionment that accompany change. The process is not always
popular, and its wisdom is even questionable, but there has to be a reason and a benefit. Losing jobs and co-workers hurts, but the
loss can provide stability and competitiveness which can protect many other jobs.
11. Communicate with your employees on a regular basis: Hold weekly meetings to keep your employees updated as to the nature
of all ongoing changes at the company. Any change big or small is bound to affect at least one or more employees and you should
have a regular forum to discuss these changes and encourage your employees to share their ideas and suggestions.
KEY POINTS OF THE CHANGE PROCESS
Reengineer your job. Eliminate unnecessary steps, get rid of busywork, and unload activities that don't contribute enough to the

organization's current goals. Focus your efforts on doing "the right things." Ditch those duties that don't add value.
Nonstop change makes it difficult to adjust to one transition before being hit with the next change. Individuals' response to constant change is
a 'lost' feeling. A healthy approach to constant change is to 'embrace' it. Embracing change starts with willingness to anticipate or accept
change. Denying change increases its negative impact. Blaming others for change is counterproductive to adapting to change.
Organizations must change to survive since 'status quo' can be deadly during turbulent times. Investing energy in adapting to change will
increase productivity. Controlling our response to change will empower us to do more. Change-resiliency will prove to be a career success
factor. Realignments or quick adjustments will enhance our change-resiliency. A positive mindset about change will lead to more effective,
change-adaptive behaviors. Change presents us with new opportunities in our careers and personal lives. By 'embracing change' with quick
realignments, we will maximize the positive effects of change in our lives and work.
Stretch yourself today so you'll be in better shape tomorrow.
Reach for new assignments that broaden your experience base.
Remember that one of the best techniques for stress prevention is to keep updating your skills so you're highly employable.

Principles and Practices of Management

Chapter 7. MOTIVATING EMPLOYEES
A manager has to work through other people. So he must know what motivates others. The primary task of a manger is to guide peoples
activity in the desired direction which requires knowing to the best of ability what leads people to do things, i.e., What motivates them?
A person's motivation is a combination of her desire and energy directed at achieving a goal. Influencing someone's motivation
means getting them to want to do what you know must be done. People can be motivated by beliefs, values, interests, fear, worthy
causes, and other such forces.
Some of these forces are internal, such as needs, interests, and beliefs. Others are external, such as danger, the environment, or pressure
from a loved one. There is no simple formula for motivation -you must keep a open viewpoint on human nature.
There is a complex array of forces steering the direction of each person and these forces cannot always be seen or studied. Also, if the same
forces are steering two different people, each one will act differently. Knowing that different people react to different needs will guide your
decisions and actions in certain situations.
WORK MOTIVATION
A person's motivation is a combination of his desire and energy directed at achieving a goal. Influencing someone's motivation means getting
him to want to do what we know must be done. A person's motivation depends on two things:
The strength of certain needs. For example, we are hungry, but we must have a task completed by a nearing deadline. If we are
starving we will eat. If we are slightly hungry we will finish the task at hand.
The perception that taking a certain action will help satisfy those needs . For example. we have two burning needs -The desire
to complete the task and the desire to go to lunch. Our perception of how we view those two needs will determine which one takes
priority. If we believe that we could be fired for not completing the task, we will probably put off lunch and complete the task. If we
believe that we will not get into trouble or perhaps finish the task in time, then we will likely go to lunch.
The main question is the following: does there exist such a thing as intrinsic motivation that incites people to work, or to develop skills, when
pecuniary incentives and/or external control are excluded?
According to Steiner, people develop intrinsic or true work motivation when they are in a position where they can shape their own social
environment. This implies an advanced democracy, and the possibility of the worker to freely choose his working place, w4thout being
compelled by external, mostly pecuniary needs. He states that people develop motivation to develop skills when they are permitted to learn in
a spirit of freedom, which implies that the spiritual and educational realm is not under control of the state or economic forces. True creativity
or productivity comes into being only when learning is free from external constraints.
Performance-contingent rewards were found to undermine intrinsic motivation more than task- contingent ones, which produced decrements
relative to control conditions of no reward. Positive feedback enhanced intrinsic motivation and this effect was independent of reward effects.
A recall measure indicated that subjects receiving performance-contingent rewards remembered fewer performance-irrelevant details about
the task, suggesting that rewards may affect the process of task involvement as well as its motivational outcomes.
"Do incentives work? The answer depends on what we mean by 'work'. Rewards, like punishments, are extremely effective at producing one
thing, and only one thing: temporary compliance. But carrots and sticks are strikingly ineffective at producing lasting change in attitudes or
even in behaviors. They do not create an enduring commitment to any value or action; they merely, and temporarily, change what we do.
Other studies from the field of social psychology have shown conclusively that people who expect to receive a reward for completing a task
(or for doing it successfully) simply do not perform as well as those who don't expect to receive anything. This result, which has sometimes
surprised the researchers themselves, has been found with all sorts of rewards, all sorts of people, and all sorts of tasks (with the most
destructive effect found when the task involves creativity).
In the workplace, not one controlled study has ever demonstrated a long-term improvement in the quality of performance as a result of
rewards. All that is achieved is short-term boosts in the quantity of production.

Events that weaken self-determination or competence will decrease intrinsic motivation. In order to boost intrinsic motivation companies
should pursue the same activity with which the autonomy-supporting or externally-controlling variables are associated. However, it could be
that there is a 'spreading effect': for instance, when a person is allowed to exercise choice with respect to some given activity, it could be that

the person's sense of self-determination is enhanced not only in relation to that activity, but that there is an overall increase in his sense of
personal autonomy.
Thus, all the theories lead to a situation of understanding the individual behavior. A person's motive structure undergoes continuous though
gradual change, our habits, interests, goals and desires, change with changing circumstances and advancing years. We are normally in the
process of becoming more or less secure, more or less concerned about our interactions with other people, more or less pre-occupied with
our self image and the opinions of us held by our associates.
Motives are the variable source of energy to pursue selected alternatives. Selected refers to, the network of motivation that screens one's
input of stimuli, causing a person to respond significantly to a few of the sights, sounds, smells etc., Presented to his sensing and perceiving
mechanisms. Variables are the wide range in amount of energy made available when a motive goes in pursuit of an alternative.
A person's motive structure can be referred to as a network of habits, interests, needs, desires and goals. This includes whatever is of
importance to that individual, e.g., what he wants out of life, what he covets openly or secretly as well as what he feels compelled to do,
however, reluctantly. We are all confronted with hundreds of opportunities to become interested in things suggested to us to spend time,
energy and money pursuing these alternatives. Our motive structures the network of our habits, interests, needs, desires and goals screen
out the proposals that catch our interest because we need them and they command our attention. The others are suppressed so effectively
that many of them are not consciously heard or seen.
There is a general agreement that man's needs are somehow organized and they fall into some sort of pattern, but there are differences of
opinion however, on the nature of the pattern. Some investigators consider the physiological needs as primary and those which involve
obtaining there satisfaction at a later time as secondary.
So far, we have laid stress on theories which attempt to identify what motivates individuals (employees), that is, content theories. There are
two other kinds of approaches which are based on the ideas of process and reinforcement.
Cognitive theories: Cognitive theories are largely concerned with the interaction between the individual and the environment, especially how
the individual perceives external factors. The most important amongst these deals with how people decide on what behavior to engage in on
the basis of their expectations.
Expectancy theory: People will adapt their behavior in order to achieve a desired outcome. That is, they will pursue behavior for which they
are rewarded and attempt to avoid behavior which leads to undesirable consequences. According to Vroom, individuals will try and make
some assessment of three factors before deciding on a course of action. These are:
1.
2.
3.

If I attempt this behavior how likely is it that I will succeed? (Expectancy)

If I am successful, will the outcome be desirable? (Instrumentality) and
How much do I value the outcomes? ( Valence )

The answers to these questions will determine the level of an individual's intrinsic motivation.

Valence x Expectancy x Instrumentality = Motivation

Human motives are based on needs (conscious / subconscious):

Primary needs - physiological requirements -water, air, food, sleep, shelter.
Secondary needs - self esteem, status, affiliation, affection, accomplishment, self assertion.
These needs vary in intensity and over time within various individuals.
Motivation is a general term applying to the entire class of drives, desires, needs and similar forces. A manager motivates his subordinates to
do things which will satisfy their drives.
In reality needs do not always lead to behavior but maybe a cause of it. Sometimes behavior is what we do, not why we do. Motivators are
such things which induce an individual to perform. Motivation reflects wants, motivators (rewards / incentives) and it influences individual
behavior. So motivation is the drive and effort to satisfy a want or a goal. Satisfaction is the contentment experienced when a want is
satisfied. Motivation is a drive towards an outcome. Satisfaction is the out- come experienced.
Theories of Motivation: There are a number of theories regarding motivation

1.

Carrot and Stick Approach: Use of rewards / penalties to induce desired behavior
o Carrot -Money / bonus etc.
o Stick -fear of loss of job, other penalty
It remained the main tool in the hands of managers for a long time. The managers believed if they had power to punish or

reward they would be able to direct human behavior.

2.

The Interaction Theory: Organization has three variables, group individuals and environment which interact for activity, any kind of
interaction, sentiments and self interest. The human motives are product of group life and the gains are for the group not just the
individual. It is based on the interaction of the group and the individuals.

3.

Participative Theory: Some management thinkers have said that participation in decision making is the motive. This approach is
based on Theory Y of Douglas McGregor. It means that by participation a worker feels involved and obeys the leader.

4.

Pattern Concept: A man does something for the pleasure of achievement. If positive achievement oriented frame of mind is created
in individuals they may be favourable for work. They may be motivated.

Behavioral Theories
As a manager, we need to interact with peers, seniors, and other people whose support we need to accomplish our objectives. To gain their
support, we must be able to understand and motivate them. To understand and motivate people, we must know the human nature. Human
nature is the common qualities of all human beings. People behave according to certain principles of human nature. These principles govern
our behavior.
Maslow's Hierarchy of Needs: Human needs are an important part of human nature. Values, beliefs, and customs differ from country to
country and group to group, but all people have similar needs. As a leader we must understand these needs because they are powerful
motivators.
Abraham Maslow felt that the basic human needs were arranged in a hierarchical order. He based his theory on healthy, creative people who
used all their talents, potential, and capabilities. At the time, this differed from most psychology research studies which were based on the
observation of disturbed people. There are two major groups of human needs: basic needs and meta needs.
Basic needs are physiological, such as food, water, and sleep; and psychological, such as affection, security, and self esteem. These basic
needs are also called deficiency needs because if they are not met by an individual, then that person will strive to make up the deficiency.
The higher needs are called meta needs or growth needs. These include justice, goodness, beauty, order, unity, etc. Basic needs take
priority over these growth needs. People who lack food or water cannot attend to justice or beauty.
These needs are listed below in hierarchical order. The needs on the bottom of the list (1 to 4) must be met before the needs above it can be
met. The top four needs (5 to 8), can be pursued in any order depending on a person's wants or circumstance, as long as all the other needs
(1 to 4) have all been met.
Maslow listed the following hierarchy of needs:
8. Self-transcendence -a transegoic level that emphasises visionary intuition, altruism, and unity consciousness.
7. Self-actualisation know exactly who we are, where we are going, and what we want to accomplish. A state of well-being.
6. Aesthetic -at peace, more curious about inner workings of all.
5. Cognitive -learning for learning alone, contribute knowledge.
4. Esteem -feeling of moving up in world, recognition, few doubts about self.
3. Belongingness and love -belong to a group, close friends to confine with.
2. Safety -feel free from immediate danger.
1. Physiological -food, water, shelter, sex.

Maslow posited that people want and are forever striving to meet various goals. Because the lower level needs are more immediate and
urgent, if they are not satisfied, they come into playas the source and direction of a person's goal.
A need higher in the hierarchy will become a motive of behaviour as long as the needs below it have been satisfied. Unsatisfied lower needs
will dominate over unsatisfied higher needs and must first be satisfied before the person can climb up the hierarchy.
Knowing where a person is located on this scale aids in determining an effective motivator. For example, motivating a middle-class person
(who is in range 4 of the hierarchy) with a certificate will have a far greater impact than using the same motivator to motivate a minimum
wage person from the ghettos who is struggling to meet needs 1 and 2.

It should be noted that almost no one stays in one particular hierarchy for an extended period. We constantly strive to move up it, while at the
same time forces outside our control try to push us down it. Those on top get pushed down for short time periods, i.e., death of loved-one or
an idea that does not work. Those on the bottom get pushed up, i.e., come across a small prize or receive a well paying job. Our goal as
leaders is to help employees obtain the skills and knowledge that will push them up the hierarchy permanently. People who have their basic
needs met become much better workers. There are able to concentrate on fulfilling the visions put forth to them, instead of consistently
worrying about how to make ends meet.

Herzberg's Hygiene and Motivational Factors: Herzberg developed a list of factors which are closely based on Maslow':) Hierarchy of
Needs, except it is more closely related to work:
Hygiene or Dissatisfiers:

Motivators or Satisfiers

Hygiene factors must be present in the job before motivators can be used to stimulate that person. That is, we cannot use Motivators until all
the Hygiene factors are met. Herzberg's needs are specifically job related and reflect some of the distinct things that people want from their
work as opposed to Maslow's Hierarchy of Needs which reflect all the needs in a persons life.
Building on this model, Herzberg coined the term "job enrichment" to describe the process of redesigning work in order to build in Motivators.
McGregor's Theory X and Theory Y: Douglas McGregor developed a philosophical view of humankind with his Theory X and Theory Y.
These are two opposing perceptions about how people view human behaviour at work and organizational life.
Theory X
People have an inherent dislike for work and will avoid it whenever possible.
People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational
objectives.
People prefer to be directed, do not want responsibility, and have little or no ambition.
People seek security above all else.
With Theory X assumptions, management's role is to coerce and control employees.
Theory Y
Work is as natural as play and rest.
People will exercise self-direction if they are committed to the objectives (they are NOT lazy).
Commitment to objectives is a function of the rewards associated with their achievement.
People learn to accept and seek responsibility.
Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to

solve an organizational problem.

People have potential.
With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards
common goals.
Theory X is the view that traditional management has taken towards the workforce. Many organizations are now taking the enlightened view
of Theory Y. A boss can be viewed as taking the Theory X approach, while a leader takes the Theory Y approach.
Notice that Maslow, Herzberg, and McGregor's theories all tie together :
Herzberg's theory is a micro version of Maslow's theory (concentrated in the work place).
McGregor's Theory X is based on workers caught in the lower levels (1 to 3) of Maslow's theory while his Theory Y is for workers
who have gone above level 3.
McGregor's Theory X is based on workers caught in Herzberg's hygiene or Dissatisfiers, while Theory Y is based on workers who
are in the Motivators' or Satisfiers' section.
Keirsey Temperament Sorter : David Keirsey and Marilyn Bates based their work on the Myers- Briggs - Type-Indicator (MBTI) - which is
based on the work of Carl Jung. There are four temperaments or characters that our personality is based on. Although we have the capacity
for all four temperaments, we typically develop a basic attitude or predisposition for one of them. They are described with the names of Greek
Gods of mythology, with whom they share preferences and behaviors:
1.

Dionysian (Artisan) - This temperament seeks freedom, values spontaneity, and resists being constrained or obligated. They do
things because the process of doing them is pleasing, regardless of the goal or outcome. They are action driven, here-and-now, and
thrive on situations requiring immediate response. They are optimists who are not easily controlled. They are the ultimate troubleshooters and negotiators. They tend to dislike bosses, policies, and procedures.

2.

Epithean (Guardian) - People with this temperament have strong affiliation needs, a sense of duty, are keepers of traditions, get
satisfaction from giving, and have strong work ethics. They want recognition and appreciation for they believe is merited, but will not
request it. They are pessimists who elicit conformity to group norms. They like making clear cut decisions and will follow established
organizational protocol without question.

3.

Promethian (Rationalist) - This type of person understands, predicts, explains and harness phenomena. They value competence
in themselves and others, thrive on challenges, and strive to control situations. They are the most self-critical of all and consistently
set higher goals of perfection. They are almost never satisfied with accomplishments and are embarrassed by praise. They are
imaginative, analytical, and like to build systems for the future. They will create sweeping changes if they see the need.

4.

Apollonian (Idealist) - An Apollonian sets extraordinary goals, even transcendent, that are, hard for them to even explain. They
strive to "be real" and are always in the process of "becoming". Work, relationships, efforts, and goals must be imbued with
"meaning" "They are hard workers, if the cause is deemed worthwhile, and are tireless in pursuit of a cause". They can be gadfly in
pursuing one goal after another. They prefer the big picture over details, are centred on people and relationships! and would rather
focus on ideas than tasks.

Leaders need all four types of temperaments on their team to make it well rounded. All to often, leaders tend to choose people with their
same type of personality, or their favorite. But this makes; a team weak, in that it cannot approach problems and implementations from all
sides of the spectrum. Balance our team and choose people from all walks of life.
Existence / Relatedness / Growth (ERG): Clayton Alderfer, in his Existence / Relatedness / Growth (ERG) Theory of Needs, theorised that
there are three groups of needs:
Existence - This group of needs is concerned with providing the basic requirements for material existence, such as physiological
and safety needs. This need is satisfied by money earned in a job to buy food, home, clothing, etc.

Relationships - This group of needs centers on or is built upon the desire to establish and maintain interpersonal relationships.
Since, one usually spends approximately half of one's waking hours on the job, this need is normally satisfied at least to some
degree by one's co-workers.
Growth - These needs are met by personal development. A person's job, career, or profession provides for significant satisfaction of
growth needs.
Alderfer's ERG theory also states that more than one needs maybe influential at the same time. If the gratification of a higher level need is
frustrated, the desire to satisfy a low level need will increase. He identifies this phenomenon as the "Frustration - aggression dimension." Its
relevance on the job is that even when the upper-level needs are frustrated, the job still provides for the basic physiological needs upon
which one would then be focused. If, at that point, something happens to threaten the job, the person's basic needs are significantly

threatened. If there are not factors present to relieve the pressure, the person may become desperate and panicky.
Vroom's Expectancy Theory: Vroom's Expectancy Theory states that an individual will act in a certain way based on the expectation that
the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Valence (Reward) = Is the amount of desire for a goal. (What is the reward?)
Expectancy (Performance) = Is the strength of belief that work related effort will result in the completion of the task.
Instrumentality (Belief) = This is the belief that the reward will be received once the task is completed.
The product of valence, expectancy, and instrumentality is motivation. It can be thought of as the strength of the drive towards a goal. For
example, if an employee wants to move up through the ranks, then promotion has a high valence for that employee. If the employee believes
that high performance will result in good reviews, then the employee has high expectancy. But if the employee believes the company will not
promote from within, then the employee has low instrumentality. Therefore, the employee is not motivated to perform any harder. Effort,
ability and knowledge of task determine actual performance of job. The reward and expectation of equitable reward leading to satisfaction
also affect performance.
Equity theory: Equity theory is concerned with our sense of how justly we are treated at work in terms of the ratio between our inputs
(experience, qualifications and effort) and outcomes (pay, promotion and status). People may create equity in a variety of ways.
Locke and Latham's goal setting theory: Goal setting theory is centered around the notion that both explicit and implicit goals motivate.
Goals, they assert, produce effort, provide task focus and encourage persistence, leading to improved performance. Their work seems to be
most effective where three conditions are present:
1.
2.
3.

Feedback
Specific goals
Difficult goals

One of the more interesting critiques of goal setting theory concerns the issue of time horizon. For example, an individual who is undertaking
a mind numbingly boring task might be more interested in setting high performance goals for themselves if he or she can return to more
interesting work at the completion of the task. What about those who already know that they will be engaged in boring work for the
foreseeable future? How 1ikely are they to feel good about setting high goals and targets for themselves?
This research is interesting because it deals with tasks of different kinds and goals with varying degrees of difficulty. For example, research
has found that where a task is new or a goal difficult, individuals will be more likely to be motivated, where they are dissatisfied with their
current level of performance and have a high expectation that they will succeed in achieving their goal. When the individual becomes
experienced however high expectations of success may actually lead to a reduction in effort and therefore declining performance.
A highly motivated manager is one who finds his job fulfills his needs and he is therefore, likely to put forward more effort, to take more
initiative and responsibility and to be more creative in his approach to the job. On the other hand a manager who finds his job does not fulfill
his needs is likely to put forward less effort, to look for another job and to be absent a good deal.

Principles and Practices of Management

Chapter 8. CONCEPT OF LEADERSHIP
Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a
never-ending process of self-study, education, training, and experience. This guide will help you through that process.
To inspire your people into higher levels of teamwork, there are certain things you must, know and do. These do not come naturally, but are
acquired through continual work and study. The best leaders are continually working and studying to improve their leadership skills.
Leadership is defined as "a complex process by which a person influences others to accomplish a mission, task, or objective and directs the
organization in a way that makes it more cohesive and coherent."
Leadership is a complex process by which a person influences others to accomplish a mission, task, or objective and directs the organization
in a way that makes it more cohesive and coherent.
Relationships are determined by a role's tasks. Some tasks are performed alone, but most are carried out in relationship with others. The
tasks will determine who the role-holder is required to interact with, how often, and towards what end. Also, the greater the interaction, the
greater the liking. This in turn leads to frequent interaction. Its hard to like someone whom we have no contact with. People tend to do what
they are rewarded for.
A person carries out this process by applying his leadership attributes (belief, values, ethics, character, knowledge, and skills). .Although your
position as a manager, supervisor, head, etc. gives you the authority to accomplish certain tasks and objectives in the organization, this
power does not make you a leader...it simply makes you the boss. Leadership makes people want to achieve high goals and objectives,
while, on the other hand, bosses tell people to accomplish a task or objective.
When a person is deciding if he respects you as a leader, he does not think about your at- tributes. He observes what you do so that he can
know who you really are. He uses this observation to tell if you are a honourable and trusted leader, or a self serving person who misuses his
authority to look good and get promoted. Self serving leaders are not as effective because their employees only obey them, not follow them.
The basis of good leadership is honourable character and selfless service to your organization. In your employees' eyes, your leadership is
everything you do that effects the organization's objectives and their well being. A respected leader concentrates on what he be (beliefs and
character), what he knows Gob, tasks, human nature), and what he does (implement, motivate, provide direction).
What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To
gain respect, they must be ethical. A sense of direction is achieved by conveying a strong vision of the future.
Bass's theory of leadership states that there are three basic ways to explain how people become leaders. The first two explain the
leadership development for a small number of people. These theories are:
Some personality traits may lead people naturally into leadership roles. This is the Trait Theory.
A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an
ordinary person. This is the Great Events Theory.
People can choose to become leaders. People can learn leadership skills.
This is the Transformational Leadership Theory. It is the most widely accepted theory today and the premise on which this guide is based.
Principles of Leadership: To help you be, know, and do, follow these eleven principles of leader- ship (later sections will expand on gaining
an insight into these principles and providing tools to perform them):
1.

Know yourself and seek self-improvement: In order to know yourself, you have to under- stand your be, know, and do, attributes.
Seeking self-improvement means continually strengthening your attributes. This can be accomplished through reading, self-study,
classes, etc.

2.

Be technically proficient: As a leader, you must know your job and have a solid familiarity with your employees' jobs.

3.

Seek responsibility and take responsibility for your actions: Search for ways to guide your organization to new heights. And
when things go wrong, they will sooner or later, do not blame others. Analyse the situation, take corrective action, and move on to
the next challenge.

4.

Make sound and timely decisions: Use good problem solving, decision making, and planning tools.

5.

Set the example: Be a good role model for you employees. They must not only hear what they are expected to do, but also see.

6.

Know your people and look out for their well-being: Know human nature and the importance of sincerely caring for your

workers.
7.

Keep you people informed: Know how to communicate with your people, seniors, and other key people within the organization.

8.

Develop a sense of responsibility in you people: Develop good character traits within your people that will help thl3m carry out
their professional responsibilities.

9.

Ensure that tasks are understood, supervised, and accomplished: Communication is the key to this responsibility.

10. Train your people as a team: Although many so called leaders call their organization, department, section, etc., a team; they are
not really teams...they are just a group of people doing their jobs.
11. Use the full capabilities of your organization: By developing a team spirit, you will be able to employ your organization,
department, section, etc., to its fullest capabilities
Factors of leadership: The four major factors of leadership are:
Follower: Different people require different styles of leadership. For example, a new hire requires more supervision than an
experienced employee. A person with a poor attitude requires a different approach than one with a high degree of motivation. You
must know your people! The fundamental starting point is having a good understanding of human nature: needs, emotions, and
motivation. You must know your employees' be, know, and do attributes.
Leader: You must have a honest understanding of who you are, what you know, and what you can do. Also, note that it is the
followers, not the leader who determines if a leader is successful. If a follower does not trust or lacks confidence in his leader, then
he will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of
being followed.
Communication: You lead through two-way communication. Much of it is non-verbal. For instance, when you "set the example,"
that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and
how you communicate either builds or harms the relationship between you and your employees.
Situation: All situations are different. What you do in one leadership situation will not always work in another situation. You must
use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may
need to confront a employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then
the results may prove ineffective.
Various forces will affect these factors. Examples of forces are your relationship with your seniors, the skill of your people, the informal
leaders within your organization, and how your company is organized.
Attributes of an effective leader: If you are a leader that can be trusted, then the people around you will learn to respect you. To be a good
leader, there are things that you must be, know, and do:
1.
2.

BE a professional. Examples: Be loyal to the organization, perform selfless service, take personal responsibility.
BE a professional who possesses good character traits. Examples: Honesty, competence, candour, commitment, integrity, courage,
straightforward, imagination.
3. KNOW the four factors of leadership -follower, leader, communication, situation.
4. KNOW yourself. Examples: strengths and weakness of your character, knowledge, and skills.
5. KNOW human nature. Examples: Human needs and emotions, and how people respond to stress.
6. KNOW your job. Examples: be proficient and be able to train others in their tasks.
7. KNOW your organization. Examples: where to go for help, its climate and culture, who the unofficial leaders are.
8. DO provide direction. Examples: goal setting, problem solving, decision making, planning
9. DO implement. Examples: communicating, co-coordinating, supervising, evaluating.
10. DO motivate. Examples: develop moral and esprit in the organization, train, coach, counsels.
Environmental effect: Every organization has a particular work environment that dictates to a considerable degree how its leaders respond
to problems and opportunities. This is brought about by a heritage of its past leaders and its present leaders. leaders exert influence on the
environment by three types of actions:
The goals and performance standards they establish.
The values they establish for the organization.
The business and people concepts they establish.

Successful organizations have good leaders who set high standards and goals across the entire spectrum such as strategies, market
leadership, plans, presentations, productivity, quality, and reliability.
Values reflect the concern the organization has for its employees, customers, investors, vendors, and surrounding community. These values
define the manner in how business will be conducted and what type of business the organization will engage in. Concepts define what

products or services the organization will offer and the methods and processes for conducting business.
These goals, values, and concepts make up the organization's "personality" or how both outsiders and insiders observe the organization.
This personality defines the roles, relationships, rewards, and rites that take place.
Roles are the positions that are defined by a set of expectations about behavior of any jot incumbent. Each role has a set of tasks and
responsibilities that mayor may not be spelled out. Roles have a powerful effect on behavior because money is paid for the performance of
the role there is prestige attached to a role, there is a sense of accomplishment or challenge, etc.
Relationships are determined by a role's tasks. Some tasks are performed alone, but most are carried out in relationship with others. The
tasks will determine who the role-holder is required to interact with, how often, and towards what end. Also, the greater the interaction, the
greater the liking. This in turn leads to more frequent interaction.
In human behavior, its hard to like someone whom we have no contact with, and we tend to seek out those we like. People tend to do what
they are rewarded for, and friendship is a powerful reward. Many tasks and behaviors that are associated with a role are brought about by
these relationships. That is, new task and behaviors are expected of the present role holder because that role holder or a prior role holder
developed a strong relationship in the past, either.
There are two distinct forces that dictate how to act within an organization -culture and climate. Each organization has its own distinctive
culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size. This results in rites: the
routines, rituals, and the "way we do things." These rites impact individual behavior on what it takes to be in good standing (the norm) and
directs the appropriate behavior for each circumstance.
The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization's members. While the
culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs;
climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the "feel of the organization" by
its members. This individual perception of the "feel of the organization" comes from what the people believe about the activities that occur in
the organization. These activities influence both individual and team motivation and satisfaction. Such activities include:
How well does the leader clarify the priorities and goals of the organization?
What is expected of us?
What is the system of recognition, rewards, and punishments?
How competent are the leaders?
Are leaders free to make decision?
What will happen if I make a mistake?
Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and
actions, as well as the priorities of the leader. The ethical climate then is the "feel of the organization" about the activities that have ethical
content or those aspects of the work environment that constitute ethical behaviour. The ethical climate is the feel about whether we do things
right; or the feel of whether we behave the way we ought to behave. The behavior (character) of the leader is the most important factor that
impacts the climate.
On the other hand, culture is along-term, complex phenomenon. Culture represents the shared expectations and self-image of the
organization. The mature values that create "tradition" or the "way we do things here." Things are done differently in every organization. The
collective vision and common folklore that define the institution are a reflection of culture. Individual leaders, cannot easily create or change
culture because culture is a part of the organization. Culture influences the characteristics of the climate by its effect on the actions and
thought processes of the leader. But, everything you do as a leader will effect the climate of the organization.
Functions of a leader: Leadership functions are to lead, is to guide, counsel, conduct, direct, motivate, empathize and precede. Therefore
they need to:
Use of persuasion
Take calculated risk
Encourage voluntary cooperation and discipline
A leader has to define the group goals to make decisions, safeguard the interest of the group and individuals, direct growth, resolve internal
clashes, develop rewarding system, co-ordinate and control.
Leadership Theories
1.
2.
3.

4.

Trait theory: Great man approach one who has the traits will be a leader in all situations. Research shows these traits may just put
a person in higher esteem.
Situational approach: Work situation or environment must be taken into account. This gives a good Insight. Contingency theory of
management supports situational influence on leadership.
Group approach: Success of a leader is influenced by the characteristics of the particular group leader should be best suited to
articulate the group needs and desires.
Composite view: leadership is neither the quality possessed by an individual nor a product of situation alone or of the group alone.

Effective leadership is a function of:

o the leader
o the led
o the situation
Classification of leadership: The traditional classification of styles of leadership has been autocratic, democratic and laissez faire.
1.

Autocratic or dictatorial leadership: Leader assumes full responsibility for all actions, he is the sole decision maker, highly critical
and negative attitude in his relations. He freely uses threats of punishment and penalty for motivation and obedience. It demoralizes
workers, retards growth, lowers quality of performance. The autocratic leader is an authoritarian. He possesses all power, takes
decision, directs and controls.

2.

Democratic leadership: leader draws ideas and suggestions from his group by discussions, consultation and participation. A
leader is a moderator of the two way flow of communication. This give greater co-operation better morale. This relies heavily on non
financial incentives. The democratic leader wants to share some of the decision making responsibility centers with his followers. He
consults, create a sense of responsibility, praises, criticizes, motivates, gives opportunity to his subordinates to participate in
problem solving and goal setting.

3.

Laissez faire or free rein leadership: Leader depends entirely on his subordinates to establish their own goals and make their own
decisions. The laissez-faire leader is a 'free-reign' leader, avoids power by effective delegation or he is a weak leader.

Each leadership style is effective when it matches the needs of the situation, the attitudes and beliefs of the work group and attitudes and
beliefs of the leader. Leaders have to work within certain limitations. Every leader has a particular behavior pattern and follows a distinctive
style of functioning. On one extreme there are leaders who maintain a high degree of control, while on the other end we have leaders who
releases highest degree of control. However, in practice we do not operate on these two extremes but somewhere in between.
A common model is given below to show the centers of power under the different styles of leadership. This is known as leadership behavior
continuum . The leadership behavior continuum gives us the various levels of control that can be utilized by the leaders.
1.

Leader takes the decision and informs the subordinates.

2.

Leader takes the decision but takes the trouble of selling it to his subordinates.

3.

Leader suggests ideas and invites questions from his subordinates.

4.

Leader suggests the decision to his subordinates which are subject to change.

5.

Leader explains the problem to the subordinates gets their suggestions and takes the
decision.

6.

Leader asks his subordinates to take the decisions, but within certain fixed limits of
authority.

Thus, the leader may be exploitatively authoritative or benevolent -authoritative, consultative, participative or may even leave subordinates
completely free. In short, the style may vary from a strong leadership where a high degree of control is exercised to a weak leadership where
complete decision making is delegated to subordinates. Between these two extremes there can be various shades and hues.
Leadership Models: Leadership models help us to understand what makes leaders act the way they do in certain situations. The ideal is not
to lock yourself into a type of behavior discussed in the model, but to realize that every situation calls for a different approach or behavior to
be taken. Two models will be discussed, the Four Framework Approach and the Managerial Grid.
In the Four Framework Approach, Bolman and Deal suggest that leaders display leadership behaviors in one of four types of frameworks:
Structural, Human Resource, Political, or Symbolic. The style can either be effective or ineffective, depending upon the chosen behavior in
certain situations.
Structural Framework - In an effective leadership situation the leader is a social architect whose leadership style is analysis and
design. In an ineffective leadership situation the leader is a petty tyrant whose leadership style is details. Structural Leaders focus
on structure, strategy, environment, implementation, experimentation, and adaptation.
Human Resource Framework - In an effective leadership situation the leader is a catalyst and servant whose leadership style is
support, advocate, and empowerment. In an ineffective leadership situation the leader is a pushover, whose leadership style is
abdication and fraud. Human Resource Leaders believe in people and communicate that belief; they are visible and accessible; they

empower, increase participation, support, share information, and move decision making down into the organization.
Political Framework - In an effective leadership situation the leader is an advocate, whose leadership style is coalition and building.
In an ineffective leadership situation the leader is a hustler, whose leadership style is manipulation. Political leaders clarify what they
want and what they can get; they assess the distribution of power and interests; they build linkages to other stakeholders; use
persuasion first, then use negotiation and coercion only if necessary.
Symbolic Framework - In an effective leadership situation the leader is a prophet, whose leadership style is inspiration. In an
ineffective leadership situation the leader is a fanatic or fool, whose leadership style is smoke and mirrors. Symbolic leaders view
organizations as a stage or theatre to play certain roles and give impressions; these leaders use symbols to capture attention; they
try to frame experience by providing plausible interpretations of experiences; they discover and communicate a vision.
This model suggests that leaders can be put into one of these four categories and there are times when one approach is appropriate and
times when it would not be. Anyone of these approaches alone would be inadequate. We should be conscious of all four approaches and not
just rely on one. For example, during a major organization change, a structural leadership style may be more effective than a visionary
leadership style; while during a period when strong growth is needed, the visionary approach may be better. We also need to understand
ourselves as each of us tends to have a preferred approach. We need to be conscious of this at all times and be aware of the limitations of
our favored approach.
The Blake and Mouton Managerial Grid uses two axis. "Concern for people" is plotted using the vertical axis and "Concern for task" is
along the horizontal axis. They both have a range of 1 to 9. The notion that just two dimensions can describe a managerial behavior has the
attraction of simplicity. These two dimensions can be drawn on a graph or grid:

Most people would fall somewhere near the middle of the two axis. However, by going to the extremes, that is, people who score on the far
end of the scales, we come up with four types of leaders:
Authoritarian (9 on task, 1 on people),
Team Leader (9 on task, 9 on people),
Country Club (1 on task, 9 on people), and
Impoverished (1 on task, 1 on people).
Authoritarian leader - high task, low relationship -9,1: People who get this rating are very much task oriented and are hard on their workers
(autocratic). There is little or no allowance for cooperation or collaboration. Highly task oriented people display these characteristics:
they are very strong on schedules;
they expect people to do what they are told without question or debate;
when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to
prevent it;
they are intolerant of what they see as dissent (it may just be someone's creativity) so it is difficult for their subordinates to contribute
or develop.
Team leader - high task, high relationship -9,9: This type of leader leads by positive example. They endeavor to foster a team environment in
which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team

goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They form and lead the
most productive teams.
Country Club leader - low task, high relationship -1,9: This leader uses predominantly reward power to maintain discipline and to encourage
the team to accomplish its goals. Conversely, he is almost incapable of employing the more punitive coercive and legitimate powers. This
inability results from the leaders' fear that using such powers could jeopardize his relationships with the team members.
Impoverished leader - low task, low relationship-1,1. This person uses a "delegate and disappear" management style. Since he is not
committed to either task accomplishment or maintenance; he essentially allows the team to do what ever it wishes and prefers to detach
himself from the team process by allowing the team to suffer from a series of power struggles.
Middle of the road leader points out firm but fair approach.
The most desirable place for a leader to be along the two axis at most times would be a 9 on task and a 9 on people, the Team Leader.
However, do not entirely dismiss the other three. Certain situations might call for one of the other three to be used at times. For example, by
playing the Impoverished Leader, you allow your team to gain self-reliance. Be a Authoritarian Leader to instill a sense of discipline in an
unmotivated worker. By carefully studying the situation and the forces affecting it, you will know at what points along the axis you need to be
in order to achieve the desired result.
The process of effective leadership: The road to great leadership (common to successful leaders):
1.
2.
3.
4.
5.

Challenge the process - First, find a process that you believe needs to be improved the most.
Inspire a shared vision - Next, share your vision in words that can be understood by your followers.
Enable others to act - Give them the tools and methods to solve the problem.
Model the way - When the process gets tough, get your hands dirty. A boss tells others what to do...a leader shows it can be done.
Encourage the heart - Share the glory with your followers' heart, keep the pains in your heart.

Leadership is of spirit, compounded of personality and vision its practice is an art. Leadership is the ability to cause other to follow willingly.
Every person theoretically can be a leader but in the industrial situation a leader emerges and grows and is sustained till he satisfies the
needs of the team. Some people believe only if a person has certain personality traits he can be a leader. Others believe that the position
due to formal authority makes a true leader. Only if a person with authority also happens to be a leader of the group he leads it in an ideal
situation. It is a vital ingredient for a manager's success so that he can direct and motivate his subordinates. A good leader must have selfcontrol, competency of handling diverse situations, empathy, he should be able to define organization goals to the group he leads, he should
have warmth and sympathy. He must be flexible, honest, physically fit, creative, a good communicator and he must have integrity.

Principles and Practices of Management

Chapter 9. ORGANIZATIONAL COMMUNICATION
Communication is defined as "the sharing, transfer (exchange) of messages, facts" opinion, ideas or attitudes and emotions between
a sender (manager) and receiver (employee) or between two or more people. Sharing or exchange is a two way process".
According to Chester Bernard the first executive function is to develop and maintain an effective system of organizational communication. He
said that communication is the means by which people are linked together to achieve a common purpose. Each managerial position is a
center of decision making as well as a center of communication.
Communication is essentially a bridge of meaning or understanding between people. Effective communication is the biggest challenge before
the management today.
Effective communication = Receipt of message + Understanding + Acceptance + Action.
ROLE OF COMMUNICATION IN organization
Establishing and disseminating goals of the enterprise.
Developing plans for their achievement.
Organizing human and other resources effectively.
Selecting, developing and appraising members.
Leading, directing, motivating.
Controlling.

Studying the communication process is important because you coach, coordinate, counsel, evaluate, and supervise through this process. It is
the chain of understanding that integrates the members of an organization from top to bottom, bottom to top, and side to side.
What is involved in the communication process?
Idea - First, information exists in the mind of the sender. This can be a concept, idea, information, or feelings.
Encodes - Next, a message is sent to a receiver in words or other symbols.
Decoding - The receiver then translates the words or symbols into a concept or information.
During the transmitting of the message, two processes will be received by the receiver. Content and Context. Content is the actual words or
symbols of the message. Context is the way the message is delivered: tone of voice, the look in the sender's eye's, body language, state of
emotion (anger, fear, uncertainty, confidence, etc.).
A message has NOT been communicated unless it is understood by the receiver. How do you know it has been properly received? By twoway communication or feedback. This feedback will tell the sender that the receiver understood the message, its level of importance, and
what must be done with it. Communication is an exchange, not just to give, all parties must participate to complete the information exchange.

Source and Encoder: Information source is the origin of the message. Sender is the source of some thought. Need or information to be
transmitted. He is also the encoder. The message is put into a code before it is transmitted. Language is a popular code.
Message: Spoken words, printed words, graphic drawing, facial expression, gesture etc., are all messages.
Channel: Medium used to transfer message, sight and sound, phone, newspaper, tv etc., The best communication channel is face to face

interaction. The channel links sender with the receiver. Proper channel is vital for effective communication.
Decoder and Receiver: Receiver decodes message and attaches meaning to it. But he should be ready for it. Communication is not
complete unless it is understood.
Meaning: Meanings result from factors in the individual and the physical world around the receiver.
Feedback: Receiver decodes an attempt to understand the message. He now becomes the source and gives response to receive the
message. Receiver's response is called the feedback. This indicates the effectiveness of communication.
Noise: Is any kind of interference in interpersonal and organizational communication. Noise is anything that reduces accuracy of
communication. Noise could be physical error in typing, misprint in a book, office grapevine, wrong meaning attached to words or symbols,
use of ambiguous symbols. Static in channel, inaccurate reception caused by inattention.
In organizational communication
source is brain
transmitter is voice mechanism
channel is air
receiver is ear
decoder is brain
Noise are the other sounds which create difficulty in hearing the speech. Speed of communication and sharing of relevant information has
acquired lot of importance in the post globalised scenario. In this connection, MIS (management information system) is a popular tool for
organizational communication.
Managers either have too less information or are subjected to information overload for decision making. In most effective organizations
communication flows:
horizontal
downward
upward
diagonal
Downward communication can be lost / distorted. Therefore, feedback is essential.
Upward communication from subordinate to superior generally gets hindered by managers filtering messages and not transmitting
them to the organization.
Effective upward communication requires an environment in which subordinates feel free to communicate.
Crosswise communication includes horizontal flow with people on the same / similar organizational levels and diagonal flows with
people at different levels, who don't directly report to each other. This helps increasing understanding and coordinates efforts.
Many of the problems that occur in an organization are the direct result of people failing to communicate. Faulty communication causes most
problems. It leads to confusion and can cause a good plan to fail; Effective communication occurs only if the receiver understands the exact
information or idea that the sender intended to transmit.
Active listening: Hearing and listening is not the same thing. Hearing is the act of perceiving sound. It is involuntary and simply refers to the
reception of aural stimuli. Listening is a selective activity which involves the reception and the interpretation of aural stimuli. It involves
decoding the sound into meaning.
Listening is broken down into two categories: passive and active. Passive listening is little more than hearing. It occurs when the receiver or
the message has little motivation to listen carefully, such as music, story telling, television or being polite.
Active listening, on the other hand, involves listening with purpose. It may be to gain information, obtain directions, understand others, solve
problems, share interest, see how another person feels, or show support. It requires that the listener attends to the words and the feelings of
sender for understanding. It takes the same amount or more energy than speaking. It requires the receiver to hear the various messages,
understand the meaning, and then verify the meaning by offering feedback. The following are some of the traits of good listeners:
Spends more time listening than talking.
Does not finish the sentence of others.
Does not answer questions with questions.
Are aware of biases. We all have them. We need to control them.
Never daydreams or become preoccupied with their own thoughts when others talk.
Lets the other speaker talk. Does not dominate the conversation.
Plans responses after the other person has finished speaking...NOT while they are speaking.
Provides feedback but do not interrupt incessantly.
Analyses by looking at all the relevant factors and asking open-ended questions. Walks the person through your analysis
(summarise).

Keeps the conversation on what the speaker says...NOT on what interests them.
Takes brief notes. This forces them to concentrate on what is being said.
Listening can be our most powerful communication tool! Be sure to use it!
Feedback: The purpose of feedback is to change and alter messages so the second communicator understands the intention of the original
communicator. It includes verbal and non verbal responses to another person's message. Providing feedback is accomplished by
paraphrasing the words of the sender. Restate the sender's feelings or ideas in your own words, rather than repeating their words. Your
words should be saying, "This is what I understand your feelings to be, am I correct?" It not only includes verbal responses, but also
nonverbal ones. Nodding your head or squeezing their hand to show agreement, dipping your eyebrows shows you don't quite understand
the meaning of their last phrase, or sucking air In deeply and blowing it hard shows that you are also exasperated with the situation.
Carl Roger listed five main categories of feedback. They are listed in the order in which they occur most frequently in daily conversations.
Notice that we make judgements more often than we try to understand:
1.
2.
3.
4.
5.

Evaluative: Making a judgement about the worth, goodness, or appropriateness of the other person's statement.
Interpretative: Paraphrasing -attempting to explain what the other persons statement mean.
Supportive: Attempting to assist or bolster the other communicator
Probing: Attempting to gain additional information, continue the discussion, or clarify a point.
Understanding: Attempting to discover completely what the other communicator means by his statements.

NON-VERBAL BEHAVIOURS OF COMMUNICATION

Lot of information is communicated orally through face to face addressing. What we say can be reinforced / contradicted by non-verbal
communication. i.e., facial expressions and body gestures. A manager looking angry and disgusted, but saying "I appreciate suggestions" is
contradictory. Therefore, non-verbal communication can support or contradict verbal communication. Actions of- ten speak louder than
words. To deliver the full impact of a message, use non-verbal behaviours to raise the channel of interpersonal communication. They are as
follows:
Eye contact : This helps to regulate the flow of communication. It signals interest in others and increases the speaker's credibility.
People who make eye contact, open the flow of communication and convey interest, concern, warmth, and credibility.
Facial expressions : Smiling is a powerful cue that transmits happiness, friendliness, warmth, and liking. So, if you smile frequently
you will be perceived as more likeable, friendly, warm and approachable. Smiling is often contagious and people will react favorably.
They will be more comfortable around you and will want to listen more.
Gestures : If you fail to gesture while speaking you may be perceived as boring and stiff. A lively speaking style captures the
listener's attention, makes the conversation more interesting, and facilitates understanding.
Posture and body orientation : You communicate numerous messages by the way you talk and move. Standing erect and leaning
forward communicates to listeners that you are approachable, receptive and friendly. Interpersonal closeness results when you and
the listener face each other. Speaking with your back turned or looking at the floor or ceiling should be avoided as it communicates
disinterest.
Proximity : Cultural norms dictate a comfortable distance for interaction with others. You should look for signals of discomfort
caused by invading the other person's space. Some of these are: rocking, leg swinging.. tapping, and gaze aversion.
Vocal : Speaking can signal non-verbal communication when you include such vocal elements as: tone, pitch, rhythm, timbre,
loudness, and inflection. For maximum teaching effectiveness, learn to vary these six elements of your voice. One of the major
criticisms of many speakers is that they speak in a monotone voice. Listeners perceive this type of speaker as boring and dull.
BARRIERS TO COMMUNICATION
Anything that prevents understanding of the message is a barrier to communication. Communication barriers are symptoms of deep-rooted
problems. Barriers can be related to the sender, mode of transmission, the receiver or the environment. It generally is a consequence of lack
of planning on the part of the communicator. Many physical and psychological barriers exist, some of them are listed below:
Noise - Equipment or environmental noise impede clear communication. The sender and the receiver must both be able to
concentrate on the messages being sent to each other.
Ourselves - Focusing on ourselves, rather than the other person can lead to confusion and conflict. The "Me Generation" is out
when it comes to effective communication. Some of the factors that cause this are defensiveness (we feel someone is attacking us),
superiority (we feel we know more that the other), and ego (we feel we are the center of the activity).
Perception - If we feel the person is talking too fast, not fluent, does not articulate clearly, etc., we may dismiss the person. Also our
pre-conceived attitudes affect our ability to listen. We listen uncritically to persons of high status and dismiss those of low status.
Message - Distractions happen when we focus on the facts rather than the idea. Our educational institutions reinforce this with tests
and questions.
Environment - Bright lights, an attractive person, unusual sights, or any other stimulus pro- vides a potential distraction.

Smothering - We take it for granted that the impulse to send useful information is automatic. Not true! Too often we believe that
certain information has no value to others or they are al- ready aware of the facts.
Stress - People do not see things the same way when under stress. What we see and believe at a given moment is influenced by
our psychological frames of references -our beliefs, values, knowledge, experiences, and goals.
International environment - Different languages and different feelings are present globalized companies a cross cultural problem.
They have to be sensitive to all such differences or influences.
Unclarified assumptions - People unnecessarily assume things which do not exist. For example, a candidate called for an
interview for a period of two/three days usually assumes he will be provided boarding and lodging, etc. On the other hand the
placement department assumes he would make his own arrangement for staying. Therefore, there is confusion.
Semantic distortion - Semantic distractions occur when a word is used differently than you prefer. For example, the word chairman
instead of chairperson may cause you to focus on the word and not the message. Henkel detergent in Muslim countries used the
following advertisement

This failed miserably since Muslims read from right to left.

Poor expression - Lack of clarity and expression can be a cause for communication breakdown.
Loss by transmission and poor retention - To avoid such a loss. Companies do a lot of repetition and use various channels to
transmit their message.
Poor listening and premature evaluation - Listening is very important for communication. Generally people make hasty
judgement leading to communication breakdowns.
Distrust, threat or fear - This undermines communication, specially in an organizational setup.
Impersonal communication - Affects communication between superior and subordinate. Status and power are the different levels
in an organization through which communication flow often distorts message.
Information overload - Too much information leads to a disregard for it. Errors in processing emerge, people don't read carefully.
There is a delay in processing and task of communication is defeated.
Selective perception - People hear and see what they want to and ignore other relevant information. Attitude leads to a
predisposition to act / not to act in a particular way.
Guidelines for improving communication or overcoming barriers: Sender must be clear about purpose of message. Sender must use
participative tools before sending message e.g., let someone else read the message before sending it. Consider needs of receivers of
information and clearly show them the long term benefits of a short-term communication which may not be appealing right now. e.g., extra
classes. The tone of voice and choice of language must be right. Try to get feedback
The responsibility of affective communication lies with both the sender and listener. Therefore, listening is the key to understanding. Time
empathy and concentration on the communicators messages are pre- requisites to understanding. For honest feedback there should be an
atmosphere of trust and confidence and a supportive leadership style. According to Keith Davis, guide to improving listening are:
stop talking,
put talker at ease,
show talker you want to listen,
remove distraction,
empathize with the talker,
be patient,
hold your temper,
don't argue,
don't criticize, and
ask questions.
Therefore listening, understanding and empathy are required for communication.
Distribution of managers activities: A decision is 90% information and 10% inspiration. One third of a manager's time is spent for routine
communication work.
Chester Bernard ranked communication along with common purpose and willingness to serve as one of the three primary elements of the
organization. He said that communication shapes and forms the internal economy of a firm.
In the modern perspective, a study by Fred Luthans on how managers really communicate shows:The humanistic inter-actor is one who frequently interacts both upward and downwards.
Mechanistic isolate communicates very little except formally.
Formal controller uses formally scheduled communication interaction and exhibits monitoring/controlling activities.

Informal developer communicates spontaneously.

FORMS OF COMMUNICATION
organizational communication: This is the middle ground between MIS and non verbal communication. In classical management
style, downward communication is followed from one to the next in the organizational hierarchy. Upward communication is from
subordinate to the immediate superior.
Interpersonal communication: Interpersonal style is used for perception, learning, and motivation and for transferring information.
Listening, sensitivity, empathy and non-verbal communication are used here.
Non-verbal communication or the silent dimensions of communication: It is the perceived characteristics of environment
through which the human verbal and non verbal messages are transmitted. Gestures, facial expression, hands, feet, posture, eyes,
all communicate messages. Even a person's clothing, how close one sits during meetings, the firmness of a hand- shake
communicate messages. This form of non-verbal communication is known as body language.
Para-language: Pitch, tone, tenor, fluency, voice modulation, volume, form a part of this form of communication.
Conversation as communication: Communication is best achieved through simple planning and control; lets look at approaches which
might help you to do this and specifically at meetings, where conversations need particular care. Most conversation sort of drift along; in
business, this is wasteful as a manager, you seek communication rather than chatter. To ensure an efficient and effective conversation, there
are three considerations:
you must make your message understood
you must receive/understand the intended message sent to you
you should exert some control over the flow of the communication
Thus, you must learn to listen as well as to speak. Those who dismiss this as a mere platitude are already demonstrating an indisposition to
listening: the phrase may be trite. but the message is hugely significant to your effectiveness as a manager. If you do not explicitly develop
the skill of listening, you may not hear the suggestion/information which should launch you to fame and for tune.
Avoid ambiguity: As a manager (concerned with getting things done) your view of words should be pragmatic rather than philosophical.
Thus, words mean not what the dictionary says they do but rather what the speaker intended. The greatest source of difficulty is that words
often have different meanings depending upon context or culture. Thus, a "dry" country lacks either water or alcohol; a "couple" is either a
few or exactly two. If you recognise that there is a potential misunderstanding, you must stop the conversation and ask for the valid
interpretation.
A second problem is that some people simply make mistakes. Your job is not simply to spot ambiguities but also to counter inconsistencies.
Thus, if I now advocate that the wise manager should seek out (perhaps humorous) books on entomology (creepy crawlies) you would
deduce that the word should have been etymology. More usual, however, is that in thinking over several alternatives you may suffer a
momentary confusion and say one of them while meaning another. There are good scientific reasons (to do with the associative nature of the
brain) why this happens, you have to be aware of the potential problem and counter for it. Finally, of course, you may simply mishear. The
omission of a simple word could be devastating. For instance, how long would you last as an explosives engineer if you failed to hear a
simple negative in: "whatever happens next you must [not] cut the blue wi..."?
So, the problem is this: the word has multiple meanings, it might-not be the one intended, and you may have misheard it in the first place how do you know what the speaker meant?

Rule 1 : PLAY BACK for confirmation

Simple, you ask for confirmation. You say "let me see if I have understood correctly, you are saying that ..." and you rephrase what the
speaker said. If this "play back" version is acknowledged as being correct by the original speaker, then you have a greater degree of
confidence in your own understanding. For any viewpoint/message/decision, there should be a clear, concise and verified statement of what
was said; without this someone will get it wrong.
Rule 2 : WRITE BACK for confidence
But do not stop there. If your time and effort depend upon it, you should write it down and send it to everyone involved as a double check.
This has several advantages:
Consistency check -the act of writing may highlight defects/omissions
A formal stage -a statement of the accepted position provides a spring board from which to proceed
Evidence -hindsight often blurs previous ignorance and people often fail to recall their previous errors
Rule 3 : GIVE BACKGROUND for context
When speaking yourself, you can often counter for possible problems by adding information, and so providing a broader context in which
your words can be understood. Thus, there is less scope for alternative interpretations since fewer are consistent. When others are speaking,
you should deliberately ask questions yourself to establish the context in which they are thinking. When others are speaking, you should
deliberately ask questions yourself to establish the context in which they are thinking.
The Techniques of Speech
Every speaker has a set of "tricks of the trade" which he or she holds dear -the following are a short selection of such advice taken from
various sources.
Make an Impression: The average audience is very busy -they have husbands and wives, schedules and slippage, cars and mortgages;
and although they will be trying very hard to concentrate on your speech, their minds will inevitably stray. Your job is to do something,
anything, which captures their attention and makes a lasting impression upon them. Once you have planned your speech and honed it down
to its few salient points, isolate the most important and devise some method to make it stick.
Repeat, Repeat: The average audience is very busy: they have husbands or wives etc., -but repetition makes them hear. The average
audience is easily distracted, and their attention will slip during the most important message of your speech- so repeat it. You don't
necessarily have to use the resonant tonal sounds of the repeated phrase, but simply make the point again and again and again with different
explanations and in different ways. The classic advice of the Sergeant Major is: "First you tell 'em what you are going to tell 'em, then you tell
'em, then you tell 'em what you told 'em!"
Draw a Sign: Research into teaching has yielded the following observation: "We found that students who failed to get the point did so
because they were not looking for it". If the audience knows when to listen, they will. So tell them: the important point is ...
Draw a Picture: The human brain is used to dealing with images, and this ability can be used to make the message more memorable. This
means using metaphors or analogies to express your message. Thus, a phrase like "we need to increase the market penetration before there
will be sufficient profits for a pay related bonus" becomes "we need a bigger slice of the cake before the feast".
Jokes: The set piece joke can work very well, but it can also lead to disaster. You must choose a joke which is apt, and one which will not
offend any member of the audience. This advice tends to rule out all racist, sexist or generally rude jokes. If this seems to rule out all the
jokes you can think of, then you should avoid jokes in a speech.
Amusing asides are also useful in maintaining the attention of the audience, and for relieving the tension of the speech. If this comes
naturally to you, then it is a useful tool for pacing your delivery to allow periods of relaxation in between your sign-posted major points.
Plain Speech, Yes! Short and Sweet: One way to polish the presentation of the main 'point of your speech is to consider it thus. The day
before your presentation, you are called to to the office of the divisional vice-president; there you are introduced to the managing director and
a representative of the company's major share holder; "OK" says the vice president "we hear you have got something to say, we'll give you
30 seconds, GO". Can you do it?
If you can crystallize your thoughts and combine your main message with some memorable phrase or imagery, and present them both in 30
seconds then you have either the perfect ending or the basis for a fine presentation.

The Narrative: Everyone loves a story and stories can both instruct and convey a message: Zen Philosophy is recorded in its stories, and
Christianity was originally taught in parables. If you can weave your message into a story or a personal anecdote, then you can have them
wanting to hear your every word -even if you have to make it tip.
Rehearsal: There is no substitute for rehearsal. You can do it in front of a mirror, or to an empty theatre. In both cases, you should

accentuate your gestures and vocal projection so that you get used to the sound and sight of yourself. Do not be put off by the mirror remember: you see a lot less of yourself than your friends do.
Relaxation: If you get nervous just before the show, either concentrate on controlling your breathing or welcome the extra adrenaline. The
good news is that the audience will never notice your nerves nearly as much as you think. Similarly, if you dry-up in the middle -smile, look at
your notes, and take your time. The silence will seem long to you, but less so to the audience.
Once the speech is over and you have calmed down, you should try to honestly evaluate your performance. Either alone, or with the help of a
friend in the audience, decides what was the least successful aspect of your presentation and resolve to concentrate on that point in the next
talk you give. If it is a problem associated with the preparation, then deal with it there; if it is a problem with your delivery, write yourself a
reminder note and put it in front of you at the next talk. Practice is only productive when you make a positive effort to improve - try it.

Principles and Practices of Management

Chapter 10. COORDINATING ORGANIZATIONAL EFFORT
Coordination has often been called the essence of management. All the activities of the organization have to be coordinated to achieve the
final objective.
According to Mary Parker Follet there are four principles of co-ordination.
1.

Principle of direct control - Co-ordination is best brought about by direct face to face contact or direct access between the
concerned members of the organization by cutting across departments and management levels.

2.

Principle of early stage co-ordination - This principle highlights the need to integrate co- ordination effort at the stage of planning
itself so that things can move smoothly at later stages.

3.

Principle of reciprocal relations - The principle assumes that an organization is a system of inter-related elements. This means
that all the elements are to be pulled together and pushed together which is the coordinating job of the manager.

4.

Principle of continuous co-ordination - According to this principle, co-ordination is not a one-time task but is a never ending and
all-time function. It cannot be taken for granted or be left to chance but is consciously and continuously ensured.

Coordinating the Effort: The success of a project will depend critically upon the effort, care and skill you apply in its initial planning and
subsequent coordination. Effective coordination requires following steps:
Laying down the specifications: A specification is the definition of your project: a statement of the problem, not the solution. Normally, the
specification contains errors, ambiguities, misunderstandings and enough rope to hang you and your entire team. The outcome of this
deliberation should be a written definition of what is required, by when; and this must be agreed by all involved. There are no short cuts to
this; if you fail to spend the time initially, it will cost you far more later on.
The agreement upon a written specification has several benefits:
the clarity will reveal misunderstandings,
the completeness will remove contradictory assumptions,
the rigor of the analysis will expose technical and practical details,
the agreement forces all concerned to actually read and think about details.
The work on the specification can be seen as the first stage of Quality Assurance, since, you are looking for and countering problems in the
very foundation of the project - from this perspective the creation of the specification clearly merits a large investment of time.
Once the project is underway, changes cost time (and money). The existence of a demonstrably-agreed specification enables you to resist or
to charge for (possibly in terms of extra time) such changes. Further, people tend to forget what they originally thought; you may need proof
that you have been working as instructed
The places to look for errors in a specification are:
the global context: often focus too narrowly on the work of one team and fail to consider how it fits into the larger picture. Some of
the work given to you may actually be undone or duplicated by others. Some of the proposed work may be incompatible with that of
others.
the interfaces: between your team and both its customers and suppliers, there are interfaces. At these points something gets
transferred. Exactly what, how and when should be discussed and agreed from the very beginning. Never assume a common
understanding, because you will be wrong. All it takes for your habitual understandings to evaporate is the arrival of one new
member, in either of the teams. Define and agree your interfaces and maintain a friendly contact throughout the project.
time-scale: we always underestimate the time involved for work. If there are no time-scales in the specification, you can assume
that one will be imposed upon you (which will be impossible). You must add realistic dates. The detail should include a precise
understanding of the extent of any intermediate stages of the task, particularly those that have to be delivered.
external dependencies: our work may depend upon that of others. Make this very clear so that these people too will receive
warning of your needs. Highlight the effect that problems with these would have upon your project so that everyone is quite clear
about their importance. To be sure, contact these people yourself and ask if they are able to fulfill the assumptions in your
specification.
resources: we tends to ignore resources. The specification should identify the materials, equipment and manpower that are needed
for the project. The agreement should include a commitment by your managers to allocate or to fund them. You should check that
the actual numbers are practical and/or correct. If they, are omitted, add them -there is bound to be differences in their assumed

values.
This seems to make the specification sound like a long document. It should not be. Each of the above could be a simple sub-heading
followed by either bullet points or a table -you are not writing a brochure, you are stating the definition of the project in clear, concise and
unambiguous glory.
Of course, the specification may change. If circumstances, or simply your knowledge change, then the specification will be out of date. You
should not regard it as cast in stone but rather as a display board where everyone involved can see the current, common understanding of
the project. If you change the content everyone must know, but do not hesitate to change it as necessary.
Providing structure: Having decide what the specification intends, your next problem is to decide what you and your team actually need to
do, and how to do it. As a manager, you have to provide some form of framework both to plan and to communicate what needs doing.
Without a structure, the work is a series of unrelated tasks which provides little sense of achievement and no feeling of advancement. If the
team has no grasp of how individual tasks fit together towards an understood goal, then the work will seem pointless and they will feel only
frustration.
To take the planning forward, therefore, you need to turn the specification into a complete set of tasks with a linking structure. Fortunately,
these two requirements are met at the same time since the derivation of such a structure is the simplest method of arriving at a list of tasks.
Task Allocation: The next stage is a little complicated. You now have to allocate the tasks to different people in the team and, at the same
time, order these tasks so that they are performed in a sensible sequence. Task allocation is not simply a case of handing out the various
tasks on your final lists to the people you have available; it is far more subtle (and powerful) than that. The allocation of tasks should thus be
seen as a means of increasing the skills and experience of your team - when the project is done, the team should have gained.
The ordering of the tasks is really quite simple, although you may find that sketching a sequence diagram helps you to think it through (and to
communicate the result). Pert charts are the accepted outcome, but sketches will suffice. Getting the details exactly right, however, can be a
long and painful process, and often it can be futile. The degree, to which you can predict the future is limited, so should be the detail of your
planning. You must have the broad outlines by which to monitor progress, and sufficient detail to assign each task when it needs to be
started, but beyond that -stop and do something useful instead.
Guesstimation: At the initial planning stage the main objective is to get a realistic estimate of the time involved in the project. You must
establish this not only to assist higher management with their planning, but also to protect your team from being expected to do the
impossible. The most important technique for achieving this is known as Guesstimation.
Guesstimating schedules is notoriously difficult but it is helped by two approaches:
make your guesstimates of the simple tasks at the bottom of the work break down structure and look for the longest path through
the sequence diagram
use the experience from previous projects to improve your guesstimating skills
There are two practical problems in Guesstimation. First, you are simply too optimistic. Second, you will be under pressure from senior
management to deliver quickly, especially if the project, is being sold competitively.
Establishing controls: When the planning phase is over (and agreed), the "doing" phase begins. Once it is in motion, a project acquires a
direction and momentum that is totally independent of anything you predicted. If you come to terms with that from the start, you can then
enjoy the roller coaster that follows. To gain some hope, however, you need to establish at the start (within the plan) the means to monitor
and to influence the project's progress. There are two key elements to the control of a project:
milestones (clear, unambiguous targets of what, by when)
established means of communication
The artistry in coordinating: At the planning stage, you can deal with far more than the mere project at hand. You can also shape the
overall pattern of your team's working using the division and type of activities you assign. Involve your team in the planning of projects,
especially in the lower levels of the work breakdown structure. Not only will they provide information and ideas, but also they will feel
ownership in the final plan.
This does not mean that your projects should be planned by committee -rather than you as manager, plan the project based upon all the
available experience and creative ideas. As an initial approach, you could attempt the first level(s) of the work breakdown structure to help
you communicate the project to the team and then ask for comments. Then, using these, the final levels could be refined by the people to
whom the tasks will be allocated. However, since the specification is so vital, all the team should vet the penultimate draft.
There are two pitfalls to avoid in project reviews:
They can be too frequent,
They can be too drastic.
The constant trickle of new information can lead to a vicious cycle of planning and revising which shakes the team's confidence in any

particular version of the plan and which destroys the very stability which the structure was designed to provide. You must decide the balance.
Pick a point on the horizon and walk confidently towards it. Decide objectively, and explain beforehand, when the review phases will occur
and make this a scheduled milestone in itself.
Even though the situation may have changed since the last review, it is important to recognise the work which has been accomplished during
the interim. Firstly, you do not want to abandon it since the team will be demotivated feeling that they have achieved nothing. Secondly, this
work itself is part of the new situation: it has been done, it should provide a foundation for the next step or at least the basis of a lesson well
learnt. Always try to build upon the existing achievements of your team.
Testing and quality: No plan is complete without explicit provision for testing and quality. As a wise manager, you will know that this should
be part of each individual phase of the project. This means that no activity is completed until it has passed the (objectively) defined criterion
which establishes its quality, and these are best defined (objectively) at the beginning as part of the planning.
When devising the schedule, therefore, you must include allocated time for this part of each activity. Thus, your question is not only: "how
long will it take", but also: "how long will the testing take". By asking both questions together you raise the issue of "how do we know we have
done it right" at the very beginning and so the testing is more likely to be done in parallel with the implementation. You establish this
philosophy for your team by including testing as a justified (required) cost.
Fitness for purpose: Another reason for stating the testing criteria at the beginning is that you can avoid futile quests for perfection. If you
have motivated your team well, they will each take pride in their work and want to do the best job possible. Often this means polishing their
work until is shines; often this wastes time. If it is clear at the onset exactly what is needed, then they are more likely to stop when that has
been achieved. You need to avoid generalities and to stipulate boundaries not easy, but essential.
Fighting for time: As a manager, you have to regulate the pressure and work load which is imposed upon your team; you must protect them
from the unreasonable demands of the rest of the company. Once you have arrived at what you consider to be a realistic schedule, fight for
it. Never let the outside world deflect you from what you know to be practical. If they impose a deadline upon you which is impossible, clearly
state this and give your reasons. You will need to give some room for compromise, however, since a flat NO will be seen as obstructive.
Since you want to help the company, you should look for alternative positions.
Planning for error: The most common error in planning is to assume that there will be no errors in the implementation: in effect, the
schedule is derived on the basis of "if nothing goes wrong, this will take ...". Of course, recognising that errors will occur is the reason for
implementing a monitoring strategy on the project. Thus, when the inevitable does happen, you can react and adapt the plan to compensate.
However, by carefully considering errors in advance you can make changes to the original plan to enhance its tolerance. Quite simply, your
planning should include time where you stand back from the design and ask: "what can go wrong?"; indeed, this is an excellent. way of
asking your team for their analysis of your plan.
You can try to predict where the errors will occur. By examining the activities' list you can usually pinpoint some activities which are risky (for
instance, those involving new equipment) and those which are quite secure (for instance, those your team has done often before). The risky
areas might then be given a less stringent time-scale -actually planning-in time for the mistakes. Another possibility is to apply a different
strategy, or more resources, to such activities to minimize the disruption. For instance, you could include training or consultancy for new
equipment, or you might parallel the work with the foundation of a fall-back position.
Post-mortem: At the end of any project. You should allocate time to review the lessons and information on both the work itself and the
management of that work: an open meeting, with open discussion, with the whole team and all customers and suppliers. If you think that this
might be thought a waste of time by your own manager, think of the effect it will have on future communications with your customers and
suppliers.
Planning for the future: With all these considerations in merely the "planning" stage of a project, it is perhaps surprising that projects get
done at all. In fact projects do get done, but seldom in the predicted manner and often as much by brute force as by careful planning. The
point, however, is that this method is non-optimal. Customers feel let down by late delivery, staff are demotivated by constant pressure for
impossible goals, corners get cut which harm your reputation, and each project has to overcome the same problems as the last.
With planning, projects can run on time and interact effectively with both customers and suppliers. Everyone involved understands what is
wanted and emerging problems are seen (and dealt with) long before they cause damage. If you want your projects to run this way -then you
must invest time in planning.
Maintaining Communication: Your most important tools are:
Clarification -always clarify: the purpose of the meeting, the time allowed, the rules to be observed (if agreed) by everyone.
Summary -at each stage of the proceedings, you should summarise the current position and progress: this is what we have
achieved/agreed, this is where we have reached.
Focus on stated goals -at each divergence or pause, re-focus the proceedings on the original goals.
Code of conduct: In any meeting, it is possible to begin the proceedings by establishing a code of conduct, often by merely stating it and
asking for any objections (which will only be accepted if a demonstrably better system is proposed). Thus, if the group contains opinionated
wind-bags, you might all agree at the onset that all contributions should be limited to two minutes (which focuses the mind admirably). You
can then impose this with the full backing of the whole group.

Matching method to purpose. The (stated) purpose of a meeting may suggest to you a specific way of conducting the event, and each section
might be conducted differently. For instance, if the purpose is:
to convey information, the meeting might begin with a formal presentation followed by questions
to seek information, the meeting would start with a short (clear) statement of the topic/problem and then an open discussion
supported by notes on a display, or a formal brainstorming session
to make a decision, the meeting might review the background and options, establish the criteria to be applied, agree who should
make the decision and how, and then do it
to ratify/explain decisions, etc.
As always, once you have paused to ask yourself the questions: what is the purpose of the meeting and how can it be most effectively
achieved; your common sense will then suggest a working method to expedite the proceedings. You just have to deliberately pause. Manage
the process of the meeting and the meeting will work.
Support: The success of a meeting will often depend upon the confidence with which the individuals will participate. Thus, all ideas should
be welcome. No one should be laughed at or dismissed ("laughed with" is good, "laughed at" is destructive). This means that even bad ideas
should be treated seriously -and at least merit a specific reason for not being pursued further. Not only is this supportive to the speaker, it
could also be that a good idea has been misunderstood and would be lost if merely rejected. But basically people should be able to make.
naive contributions without being made to feel stupid, otherwise you may never hear the best ideas of all.
Avoid direct criticism of any person. For instance, if someone has not come prepared then that fault is obvious to all. If you leave the criticism
as being simply that implicit in the peer pressure, then it is diffuse and general; if you explicitly rebuke that person, then it is personal and
from you (which may raise unnecessary conflict). You should merely seek an undertaking for the missing preparation to be done: we need to
know this before we can proceed, could you circulate it to us by tomorrow lunch?
Coordination through counseling: Counseling has a powerful, long-term impact on people and the effectiveness of the organization.
Counseling is talking with a person in a way that helps that person solve a problem or helps to create conditions that will cause the person to
improve his behaviour. It involves thinking, implementing, knowing human nature, timing, sincerity, compassion, and kindness. It involves
much more that simply telling someone what to do about a problem. Managers must demonstrate the following qualities in order to counsel
effectively.
Respect for employees: This quality includes the belief that individuals are responsible for their own actions and ideas. It includes
an awareness of a persons individuality though unique values, attributes, and skills. As you attempt to develop people through
Counseling, you must refrain from projecting you own values onto them.
Self- awareness: This quality is an understanding of yourself as a leader. The more you are aware of your own values, needs, and
biases, the less likely you will be to project your feelings onto your employees.
Credibility: This quality is achieved through both honesty and consistency between the managers, statements and actions.
Credible managers are straightforward with their subordinates and behave in such a manner that subordinates respect and trust
their words.
Empathy: This quality entails understanding a subordinate's situation. Empathetic managers will be better able to help subordinates
identify the situation and develop a plan to improve the situation
The reason for counseling is to help employees develop in order to achieve organizational or individual goals. At times, the counseling is
directed by policy, and at other times, managers should choose to counsel to develop employees. Regardless of the nature of the counseling,
managers should demonstrate the qualities of an effective counselors (respect, self-awareness, credibility, and empathy) and employ the
skills of communication.
While the reason for counseling is to develop subordinates, managers often categorise counseling based on the topic of the session. Major
categories include performance counseling, problem counseling, and individual growth counseling. While these categories help managers to
organise and focus counseling sessions, they must not be viewed as separate and distinct types of counseling. For example a counseling
session which focuses on resolving a problem may also have a great impact on improving job performance, and a counseling session
focused on performance may also include a discussion of opportunities for growth. Regardless of the topic of the counseling session, you
should follow the same basic format to prepare for and conduct counseling.
Coordinating through Performance Appraisals: The performance appraisal is one of the most powerful tools available to a manager. It
has three main objectives:

To measure performance fairly and objectively against job requirements. This allows effective workers to be rewarded for their
efforts and ineffective workers to be put on the line for poor performance.
To increase performance by identifying specific development goals. "If you don't know where you are going, any road will take you
there". The appraisal allows the worker to target specific areas for job growth...it should be a time to plan for better performance on

the job.
To develop career goals so that the worker may keep pace with the requirements of a fast paced organization. More and more,
every job in an organization becomes more demanding with new requirements. Just because a worker is performing effectively in
his job now, does not mean he will be able to perform effectively in the future. He must be allowed to grow with the job and the
organization.
Post appraisal counseling / discussion sessions, feedback, and one-on-ones are the best coordinating effort put in by a manager. It gives the
employee a pretty clear understanding of what to expect from the job and makes him aware of his strengths and weaknesses. If you blindside him, you have not done your job as a manager. Helping your people to grow is not a once or twice yearly duty, but a daily duty.
The appraisal should be a joint effort. No one knows the job better than the person performing it. By turning the appraisal into a real
discussion, the manager could learn some insightful information which could help boost performance in the future.
CONTROLLING WORK EFFORT
The purpose and nature of control: The task of control is to ensure that plans succeed by detecting deviations from plans and furnishing a
basis for taking action to correct potential or actual undesired deviations.
Principle of future-directed controls: Because of time lags in the total system of control, the more a control system is based on feed
forward rather than simple feedback of information, the more managers have the opportunity to perceive undesirable deviations form plans
before they occur and to take action in time to prevent them.
These two principles emphasize that the purpose of control in any system of managerial action is ensuring that objectives are achieved
through detecting deviations and taking corrective action designed to attain them. Moreover, control, like planning, should ideally be forwardlooking. This principle is often disregarded in practice, largely because the present state of the art in managing has not regularly provided for
systems of feed forward control.
Managers have generally been dependent on historical data, which may be adequate for collecting taxes and determining stockholders
earnings but are not good enough for the most effective control. If means of looking forward are lacking, reference to history, on the
questionable assumption that "what is past is prologue" , is better than not looking at all. But time lags in the system of management control
make it imperative that greater efforts be undertaken to make future-directed control a reality.
Principle of control responsibility: The primary responsibility for the exercise of control rests in the manager charged with the performance
of the particular plans involved.
Since delegation of authority, assignment of tasks, and responsibility for certain objectives rest in individual managers, it folios that control
over this work should be exercised by each of these managers. An individual manager's responsibility cannot be waived without changes in
the organization structure.
Principles of efficiency of controls: Control techniques and approaches are efficient if they detect and illuminate the nature and causes of
deviations from plans with a minimum of costs or other unsought consequences.
Control techniques have a way of becoming costly, complex, and burden some. Managers may become so engrossed in control that they
spend more than it is worth to detect a deviation. Detailed budget controls that hamstring a subordinate, complex mathematical controls that
thwart innovation, and purchasing controls that delay deliveries and cost more than the item purchased are instances of inefficient controls.
Principles of preventive control: The higher the quality of managers in a managerial system, the less will be the need for direct controls.
Most controls are based in large part on the fact that human beings make mistakes and often do not react to problems by undertaking their
correction adequately and promptly. The more qualified managers are, the more they will perceive deviations from plans and take timely
action to prevent them.
Structure of Control
Principle of reflection of plans: The more that plans are clear, complete, and integrated, and the more that controls are designed to reflect
such plans, the more effectively controls will serve the needs of mangers.
It is not possible for a system of controls to be devised without plans, since the task of control is to ensure that plans work out as intended.
There can be no doubt that the more clear, complete, and integrated these plans are, and the more that control techniques are designed to
follow the progress of these plans, the more effective they will be.
Principle of organizational suitability: The more that an organizational structure is clear, complete, and integrated, and the more that
controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitate
correction of deviations from plans.
Plans are implemented by people. Deviations from plans must be the responsibility primarily of managers who are entrusted with the task of

executing planning programs. Since it is the function of an organization structure to define a system of roles, it follows that controls must be
designed to affect the role in which responsibility for performance of a plan lies.
Principle of individuality of controls: The more that control techniques and information are understandable to individual managers who
must utilize them, the more they will actually be used and the more they will result in effective control.
Although some control techniques and information can be utilized in the same form by various kinds of enterprises and managers, as a
general rule controls should be tailored to meet the individual needs of managers. Some of this individuality is related to position in the
organization structure, as noted in the previous principle. Another aspect of individuality is the tailoring of controls to the kind and level of
managers understanding.
Company Presidents as well as supervisors have thrown up their hands in dismay (often for quite different reasons) at the unintelligible
nature and inappropriate form of control information. Control information that a manager cannot or will not use has little practical value.
The Process of control: Control, often being so much a matter of technique, rests heavily on the art of managing, on know-how in given
instances. However, there are certain principles which experience has shown have wide applicability.
Principle of standards: Effective control requires objective, accurate, and suitable standards. There should be a simple, specific and
verifiable way to measure whether a planning program is being accomplished. Control is accomplished through people. Even the best
manager cannot help being influenced by personal factors, and actual performance is sometimes camouflaged by a dull or a sparkling
personality or by a subordinates ability to sell a deficient performance. By the same token, good standards of performance, objectively
applied, will more likely be accepted by subordinates as fair and reasonable.
Principle of critical-point control: Effective control requires special attention to those factors critical to evaluating performance against
plans. It would ordinarily be wasteful and unnecessary for managers to follow every detail of plan execution. What they must know is that
plans are being implemented, therefore, without watching everything, any important deviations from plans. Perhaps all managers can ask
themselves what things in their operations will best show them whether the plans for which they are responsible are being accomplished.
The exception principle: The more that managers concentrate control efforts on significant exceptions, the more efficient will be the results
of their control. This principle holds that managers should concern themselves with significant deviations -the especially good or the
especially bad situations. It is often confused with the principle of critical-point control, and the two do have some kinship. However, criticalpoint control has to do with recognizing the points to be watched, while the exception principle has to so with watching the size of deviations
at these points.
Principle of flexibility of controls: If controls are to remain effective despite failure or unforeseen changes of plans, flexibility is required in
their design. According to this principle, controls must not be so inflexibly tied in with a plan as to be useless if the entire plan fails or is
suddenly changed. Note that this principle applies to failures of plans, not failures of people operating under plans.
Principle of action: Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning,
organizing, staffing and leading.
There are instances in practice in which this simple truth is forgotten. Control is a wasteful use of managerial and staff time unless it is
followed by action. If deviations are found in experienced or projected performance, action is indicated, in the form of either redrawing plans
or making additional plans to get back on course. The situation may call for reorganization. It may require replacing subordinates or training
them to do the task desired. Or it may indicate that the fault is a lack of direction and leadership in getting a subordinate to understand the
plans or in motivating him or her to accomplish them. In any case, action is implied.
Budgeting system
A popularly used control technique in both industry and government is the budget. A budget is just a numerical plan which is comprehensive
and coordinated for the operations and resources of the firm. Budgets are useful in many ways, they induce management to think systematically about the future.
serve as a device for coordinating the complex operations of the business.
provide a medium for communicating the plans of the firms.
motivate managers at all levels to perform well.
serve as a standard against which actual performance may be judged.
For preparing a budget the first requirement is the strategy for planning and budgeting - the corporate strategy or long range plan gives major
programs in various areas. If strategy is not articulators a broad guideline has to be given. The budget can either be programme budgets or
responsibility budgets. Programme budgets are normally developed for products. This shows relative profitability of various product lines and
suggests areas where revenues can be enhanced and costs reduced.
Art of Delegation
Delegation is one of the most important skills required to become an effective manager and a manager. Delegation is a skill of which we have
all heard -but which few understand. It can be used either as an excuse for dumping failure onto the shoulders of subordinates, or as a

dynamic tool for motivating and training your team to realise their full potential.
Everyone knows about delegation. Most managers hear about it in the cradle as mother talks earnestly to the baby-sitter: "just enjoy the
television... this is what you do if ...if there is any trouble call me at ..."; people have been writing about it for nearly half a millennium; yet few
actually under- stand it.
Delegation underpins a style of management which allows your staff to use and develop their skills and knowledge to the full potential.
Without delegation, you lose their full value;
As the ancient quotation above suggests, delegation is primarily about entrusting your authority to others. This means that they can act and
initiate independently; and that they assume responsibility with you for certain tasks. If something goes wrong, you remain responsible since
you are the manager; the trick is to delegate in such a way that things get done but do not go (badly) wrong
Objective of Delegation
The objective of delegation is to get the job done by someone else. Not just the simple tasks of reading instructions and turning a lever, but
also the decision making and changes which depend upon new information. With delegation, your staff have the authority to react to
situations without referring back to you.
If you tell the janitor to empty the bins on Tuesdays and Fridays, the bins will be emptied on Tuesdays and Fridays. If the bins overflow on
Wednesday, they will be emptied on Friday. If instead you said to empty the bins as often as necessary, the janitor would decide how often
and adapt to special circumstances. By leaving the decision up to the janitor you will apply his/her local knowledge to the problem. Consider
this frankly: do you want to be an expert on bin emptying, can you construct an instruction to cover all possible contingencies? If not,
delegate to someone who gets paid for it.
To enable someone else to do the job for you, you must ensure that:
they know what you want
they have the authority to achieve it
they know how to do it.
Delegation depend upon communicating clearly the nature of the task, the extent of their discretion, and the sources of relevant information
and knowledge. Certain pre-requisites to be fulfilled before effective delegation can take place:
Sharing Information: Such a system can only operate successfully if the decision-makers (your staff) have full and rapid access to the
relevant information. This means that you must establish a system to enable the flow of information. This must at least include regular
exchanges between your staff so that each is aware of what the others are doing. It should also include briefings by you on the information
which you have received in your role as manager; since if you need to know this information to do your job, your staff will need to know also if
they are to do your (delegated) job for you.
One of the main claims being made for computerised information distribution is that it facilitates the rapid dissemination of information. Some
protagonists even suggest that such systems will instigate changes in managerial power sharing rather than merely support them: that the
"acknowledged" workforce will rise up, assume control and innovate spontaneously. You may not believe this vision, but you should
understand the premise.
If a manager restricts access to information, then only he/she is able to make decisions which rely upon that information; once that access is
opened to many others, they too can make decisions -and challenge those of the manager according to additional criteria. The manager who
fears this challenge will never delegate effectively; the manager who recognises that the staff may have additional experience and knowledge
(and so may enhance the decision-making process) will welcome their input; delegation ensures that the staff will practise decision-making
and will feel that their views are welcome.
Effective Control: One of the main phobias about delegation is that by giving others authority, a manager loses control. This need not be the
case. If you train your staff to apply the same criteria as you would yourself (by example and full explanations) then they will be exercising
your control on you behalf. And since they will witness many more situations over which control may be exercised (you can't be in several
places at once) then that control is exercised more diversely and more rapidly than you could exercise it by yourself. In engineering terms: if
maintaining control is truly your concern, then you should distribute the control mechanisms to enable parallel and autonomous processing.
Staggered Development: To understand delegation, you really have to think about people. Delegation cannot be viewed as an abstract
technique, it depends upon individuals and individual needs. Let us take a lowly member of staff who has little or no knowledge about the job
which needs to be done.

The key is to delegate gradually. If you present someone with a task which is daunting, one with which he/she does not feel able to cope,
then the task will not be done and your staff will be severely de-motivated. Instead you should build-up gradually; first a small task leading to
a little development, then another small task which builds upon the first; when that is achieved, add another .stage; and so on. There is the
difference between asking people to scale a sheer wall, and providing them with a staircase. Each task delegated should have enough
complexity to stretch that member of staff -but only a little.

When you delegate, agree beforehand how often and when you actually need information and decide the reporting schedule at the onset.
They will then expect these encounters and even feel encouraged by your continuing support; you will be able to check upon progress and
even spur it on a little. Avoid making decisions of which they are capable themselves. The whole idea is for them to learn to take over and so
he must be encouraged to do so. Of course, with you there to check his decisions.
Constrained Availability: There is a danger with "open access" that you become too involved with the task you had hoped to delegate. One
successful strategy to avoid this is to formalize the manner in which these conversation take place. One formalism is to allow only fixed,
regular encounters (except for emergencies) so that Jimmy has to think about issues and questions before raising them; you might even
insist that he draw-up an agenda.
A second formalism is to refuse to make a decision unless Jimmy has provided you with a clear statement of alternatives, pros and cons, and
his recommendation. This is my favourite. It allows Jimmy to rehearse the full authority of decision making while secure in the knowledge that
you will be there to check the outcome. Further, the insistence upon evaluation of alternatives promotes good decision making practices.
Outcomes and Failure: Let us consider your undoubtedly high standards. When you delegate a job, it does not have to be done as well as
you could do it (given time), but only as well as necessary: never judge the outcome by what you expect you would do (it is difficult to be
objective about that), but rather by fitness for purpose. When you delegate a task, agree then upon the criteria and standards by which the
outcome will be judged.
You must enable failure. With appropriate monitoring, you should be able to catch mistakes before they are catastrophic; if not, then the
failure is yours. You are the manager, you decided that your subordinate could cope, and you gave him enough rope to hang himself, then
you are at fault.
The safest ethos to cultivate is one where your subordinate actually looks for and anticipates mistakes. If you wish to promote such
behaviour, you should always praise him for his prompt and wise action in spotting and dealing with the errors rather that castigate him for
causing them. Here the emphasis is placed upon checking/testing/monitoring of ideas. Thus, you never criticise him for finding an error, only
for not having safe-guards in place.
What to Delegate
There is always the question of what to delegate and what to do yourself. and you must take a long term view on this: you want to delegate
as much as possible to develop you staff to be as good as you are now. Decisions are a normal managerial function: these too should be
delegated - especially if they are important to the staff. In practice, you will need to establish the boundaries of these decisions so that you
can live with the outcome, but this will only take you a little time while the delegation of the remainder of the task will save you much more.
The starting point is to consider the activities you used to do before you were promoted. You used to do them when you were junior, so
someone junior to you can do them now. Tasks in which you have experience are the easiest for you to explain to others and so to train them
to takeover. You thus use your experience to ensure that the task is done well, rather than to actually perform the task yourself. In this way
you gain time for your other duties and someone else becomes as good as you once were (increasing the strength of the group).
Tasks in which your staff have more experience must be delegated to them. This does not mean that you relinquish responsibility because
they are expert, but it does mean that the default decision should be theirs. To be a good manager though, you should ensure that they
spend some time in explaining these decisions to you so that you learn their criteria.
In terms of motivation, you should distribute the more mundane tasks as evenly as possible; and sprinkle the more exciting ones as widely. In
general, but especially with the boring tasks, you should be careful to delegate not only the performance of the task but also its ownership.
Task delegation, rather than task assignment, enables innovation.
The point you need to get across is that the task may be changed, developed, upgraded, if necessary or desirable. So someone who collates
the monthly figures should not feel obliged to blindly type them in every first-Monday; but should feel empowered to introduce a more
effective reporting format, enhance the data processing, suggest and implement changes to the task itself.
Negotiating Delegation
Since delegation is about handing over authority, you cannot dictate what is delegated nor how that delegation is to be managed. To control
the delegation, you need to establish at the beginning the task itself, the reporting schedule, the sources of information, your availability, and
the criteria of success. These you must negotiate with your staff: only by obtaining both their input and their agreement can you hope to
arrive at a workable procedure.
Once you have delegated everything, what do you do then? You still need to monitor the tasks you have delegated and to continue the
development of your staff to help them exercise their authority well.
There are managerial functions which you should never delegate -these are the personal / personnel ones which are often the most obvious
additions to your responsibilities as you assume a managerial role. Specifically, they include: motivation, training, team-building, organization,
praising, reprimanding, reviewing performances, promotion.
As a manager, you have a responsibility to represent and to develop the effectiveness of your group within the company; these are tasks you

can expand to fill your available time -delegation is a mechanism for creating that opportunity.
Concept of Power: The concept of power is closely related to the concept of leadership, but is often avoided because of negative
connotations associated with it. Power is an influential potential -the resource that enables a manager to gain compliance or commitment
from others. It is one of the means by which a manager influences the behaviour of followers. Therefore, it becomes imperative that
managers examine their possession and use of power.
Let us look at some of the definitions for power:
Stephen Robbins defines power as "the ability to influence and control anything that is of value to others."
Weber broadly defines power as the "probability to secure obedience. "
Maciver states that social power means the "capacity to command the service or the compliance of others."
Power is finite. There is only so much of power around. If someone else has it, you don't. The amount of power available does not expand in
different situations. In present day organizations many sources of power have been legislated, negotiated, or policied away. Thus, today's
manager must learn ways to use the limited amount of power he has in realistic and meaningful ways.
Sources and Types of Power
Position Power: It is the authority to use the rewards, punishments and sanctions to bring to bear in order to get organizational objectives
fulfilled by the subordinates (followers). Position power is not inherent in the office. It is not a matter of office having power, but the extent to
which those people to whim managers report are willing to delegate authority and responsibility down to them.
Personal Power: It is the extent to which managers gain confidence of those people who are attempting to influence.
With position power comes from above personal, power flows from the followers. However, one distinctly effects the other.
Concept of power embraces several group processes such as 'leadership", "influence", "collaboration", "authority", "co-ordination",
"mediation", and "arbitration".
Authority is power that is legitimized by virtue of individual's formal role in a social organization.
How to acquire power: If you want to climb the career ladder you have not only to understand power, you must seek it actively and skillfully.
However, to protect yourself from frustration and burnout, you must decide consciously whether you want power and are ready to do what it
takes to acquire it.
Bezinger suggests three guidelines for acquiring power:
1.
2.
3.

Earning power requires substantial time commitment. If you are not ready to invest time, perhaps gaining power is not the right thing
for you.
Gaining power in an organization requires confrontation. If you are not ready to get on top and stay there -then you may not wish to
seek power.
If organization demands are congruent with your personal style, then you may function with a greater degree of comfort.

In case you have decided to acquire power, following twelve -step strategy may help you:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Learn and use your organization's language and symbols.

Learn and use your organization's priorities.
Conduct Force Field Analysis to learn the power lines.
Determine who has power and get to know these people.
Keep on developing your professional knowledge base.
Develop your power skills.
Be PROACTIVE.
Assume authority, even if it means taking on additional jobs / responsibilities.
Take risks -go for creative problem solving.
Beat your own drum -"I'm the best".
Meet the boss's needs -try to out think him by understanding his thinking pattern.
Take care of yourself -"No one wants a martyr amongst their midst".

You may discover that "being powerful is not as exhaustive as some people might have you believe". What's more you might discover
"having power is fun -it gets things you want done",
Supervision and Control

Supervision is the management of a process, a worker or workers or a project. It implies operating at close range by actually overseeing or
controlling on the shop floor, dealing with situations on the spot as they arises. It is basically concerned with day to day running of the
section.
Success and productivity are directly related to a person's attitude. Supervisor is any person who is given authority and responsibility for
planning and controlling the work of a group by close contact. He:
has the authority to engage, transfer, or reprimand an employee under his control.
deals with grievances and take appropriate action.
is responsible for:
o discipline.
o quality and quantity of output.
makes recommendation to management.
The competitive market demands of high quality output at the least cost. To accomplish this task he must posses various supervisory skills
and must be able to:
foster good working relationships
maintain general discipline and conduct
generates supports from his superiors
effectively lead people,
understand and motivate employees
develop and maintain good communication, and
influences employees and their work attitude.
Basic elements of supervision
Building and maintaining an efficient organization
Creating and maintaining efficient working force
Controlling the work
These elements of supervision interact together and help the supervisor improve his performance, apply the right techniques and principles
at the right time and makes correct decisions.
Controlling the work: Field of control includes division and delegation of responsibility to individuals. Decisions on the work, such as,
budgeted cost of performing the work, regulation of work performance, cost reduction, quality control and following up progress.
The scope of duties also include, planning, setting procedures, using work study techniques to develop the department, achieving and
maintaining quality and keeping records, controlling wastage and cost reduction, keeping adequate records and control costs as budgeted.
Skills Required for Supervision and Control
Technical Skills
Job know-how
Knowledge of industries:
o Processes
o Machinery, etc
Administrative Skills
Knowledge of organization and co-ordination
Ability to plan and control work
Human Relation Skills
Knowledge of human behaviour
Ability to work with individuals and group (peers, superiors, subordinates)
Conceptual Skills
Ideas, plan, directives, etc."
Ability to see 'big-picture' and understand the overall effect.

Principles and Practices of Management

Chapter 11. GENERAL MANAGEMENT PAST AND FUTURE
As with everything else today, the notion of general management is in a state of transition. The old certainties in general management are
breaking down. Size and complexity have undermined the traditional three-tier upward climb, which starts with technical knowledge and
qualifications, continues as broader interpersonal aptitudes are developed, and ends with mastery of the big picture and an ability to integrate
all the company's functions. Increasingly, organizations want young managers to acquire all these skills at an earlier stage.
The power axis of management has also changed over the last 50 years. The prominence of engineering/manufacturing made sense after
the Second World War. Marketing people became more assertive in the 1960s, while finance gained more importance as competition for debt
and equity increased in the inflationary 1970s. The point, though, is not what function should be dominant today: the current environment
calls for people and processes that effectively synthesize specialist functions into general management.
One broad type is the specialising generalist, such as the 'turnaround' executives of the late- 1980s or the 'habitual' entrepreneur who creates
multiple new business ventures. A happier model is the generalising specialist able to reinvigorate an overly narrow company. Vision and
leadership, though, are no substitute for the nitty-gritty. Effective general management includes the ability to communicate, to be
approachable, to encourage and respond to the upward flow of ideas, and to adopt great behavioural flexibility.
Creative, synthesising skills are vital, as is a preparedness sometimes to discard painfully gained specialist knowledge. The concept of the
generalist executive who could utilise his or her general management principles effectively in any country, company or industry is dying.
Conglomerate diversification is out; disciplined focus on core competencies within an industry is in.
Also going is the assumption that a lifetime of geographic and functional moves will prepare a manager for general executive responsibilities.
New educational and organizational design models that facilitate functional synthesis are being sought. Emerging are models of the
'generalising specialist' and the 'specialising generalist'. To understand these concepts, however, we need to examine an older view of how
generalists were developed.
The myth that a determined young person could enter via the mail room and by dint of hard work and pluck move upward to the executive
suite, died a virtual death due to the universal requirement that one have at least a college education to get one's foot on the lower rung of
the professional and managerial ladder.
In most of the companies the hierarchical pyramid was replaced by a two-class structure comprised of a larger, truncated lower pyramid of
operating employees topped by a smaller pyramid of specialist managers and executives. Increasingly, one had to have the appropriate
higher education to get access to the lower rungs of the upper pyramid which was entered directly, usually right out of college.
Those operating white-collar, blue-collar and white-coverall personnel in the lower pyramid have been increasingly restricted. The boundary
between the two pyramids has become less permeable. Today, management education is becoming essential for a chance of making it to
general management levels.
The upper managerial pyramid could be visualised as divided into three bands, each defined by the skills most relevant to effective
performance. Thus, the lower portion into which a new graduate entered was primarily defined by technical or knowledge-based skills.

If a young person did well, then in five years or so he or she might begin the transition upward into the middle skill band, which would draw on
interpersonal aptitudes or people skills. Here one would have to supplement technical ability with skill in communicating, directing and leading
others. For many engineers and technocrats, of course, this could be a difficult transition, but if successfully navigated, it would set the stage
for a second, more difficult, transition some 10 to 15 years later.
The skills at the upper levels were described a bit more ambiguously, but generally were seen as conceptual or integrating skills that is, the
ability to see the big picture, particularly in integrating the company's various functions.
Assumed in this model was that the 15 to 20-year climb upward would be characterised by diagonal moves that would expose the future
general manager to the organization's relevant activities so that in time there would emerge a happy congruence of level, skill and authority.
Unfortunately, this assumption has collapsed.
Size and complexity have sharply undermined the time = level = knowledge assumption. The pace of technical innovation and environmental
change means that beyond the smaller firm no individual's career can embrace all the relevant dimensions. Indeed, complexity has forced
increased focus in a career so that a manager's upward movement became increasingly restricted within a specialised silo. As a result, the
transition into the synthesising duties of senior general management became increasingly difficult with a consequent loss of visionary
leadership at the top.
The Managerial Pyramid
The concept of technical, human relations and conceptual skills is still relevant. But, increasingly, organizations are demanding that young
specialists and managers possess all three skills sooner in their careers. They have to make the transition from functional to general
management without which they would never get a chance to operate on the larger canvas of the organizational decision making due to their
specialising in narrow functional areas. Those who had already been promoted to cross-functional responsibilities. felt they were lacking in
the integrating skills.
Hence, emphasises has to be on heterogeneity and functional interdependence, coupled with encouraging thinking about the ambiguous and
even paradoxical duties that confront senior executives. They needed to strengthen their skills in teamwork, interpersonal relations,
negotiations and communications while also encouraging greater 'depth' in their 'breadth'.
Given today's common matrix-like structures that demand cross-functional, multi-product service, inter-regional teams, young professionals
no longer have time to work alone while developing their interpersonal skills. These skills are increasingly required from the beginning.
Accordingly, the most dramatic innovations in Wharton's programme are the required team-oriented experiential courses in foundations of
leadership and a cross-functional immersion in a real company. In addition, given the sophistication of the specialities brought to bear on
problems today, organizations want their young managers to be stronger in multiple areas.
Trends in Power Axis Functions
The years since the second world war have seen significant changes in the power of the various functional specialties to control senior
general management. National culture and tradition have affected these trends differently, but competition is forcing convergence.
The US , for example, came out of the war with an emphasis on manufacturing. Strong production managers tended to be selected for the
post of chief executive officer. Hence, the production function was closest to an imaginary power axis up through the centre of the managerial
pyramid. Other functions were distant from the axis, with some, such as personnel, on the pyramid's surface. Even today, of chief executives
of the 1,000 most valuable US companies, only one has a functional background primarily in human resource management.
The prominence of engineering and manufacturing made sense in the immediate post-war era because it reflected the central challenge then
confronting North American companies: the conversion from wartime to peacetime products, which had mostly been designed years before in
the 1930s. Given pent-up civilian demands, selling was easy.
In a short time, however, immediate demand was met, competition for discretionary dollars intensified and an increased need to differentiate
products and services emerged. With this need the modern marketing function began to move toward the power axis so that by the early
1960s it became the number-one supplier of US chief executives.
As recently as the 1960s, financial specialists were generally not seen as candidates for senior general management. The 'bean counter',
'green eye-shade' stereotype was still strong and they were judged as lacking the synthesising big-picture skills necessary for the top. It was
not until the rampant inflation of the 1970s and the dramatic increase in competition for equity and debt, along with the escalating
sophistication of financial instruments, that the finance function moved to the power axis.
Today, among the chief executives of the 1,000 most valuable US companies, 264 are from finance backgrounds, 217 from marketing, 193
from engineering / technical, 144 were company founders, 110 from production / manufacturing, 73 from law, and seven from corporate
planning.
However, understandable the recent dominance of the marketing and financial functions did create problems. Interest in manufacturing and
production declined. Academic programmes stagnated or disappeared. In recent years, companies have rediscovered the centrality of these
functional skills, and the latest generation of chief executives in many companies are drawn from the production function.
The point is not what function should be dominant nor what country has the greatest relevant functional strength. What is called for are

people and processes that effectively synthesize the specialist functions into general management.
Specialising Generalists
The post-1991 open environment led to an era of unprecedented downsizing. The strengthening of shareholder demands for emphasis on
total return from dividends and share price appreciation led to the emergence of a general manager who was a turnaround specialist.
Experience in the industry was deemed less important than the will to impose a cost-cutting vision that would rapidly improve corporate
profits and make the company more attractive to a prospective acquirer. Whatever the merits of such turnaround specialising generalist
executives, they do not offer a model for general executives because the challenge they face is relatively simple at least in comparison with
the long-run building of a viable business strategy.
Such a specialising generalist focuses on the functional areas having the quickest payback (on closing plants, dismissing staff and reducing
costs in the case of Scott) to the detriment of relations with surviving employees, customers and communities. Another version of the
specialising generalist is the 'habitual' entrepreneur who creates multiple new business ventures. Such creators are the ultimate generalists,
since in the early days of a new firm the entrepreneur must play many roles because staff tends to be very thin. Entrepreneurship, therefore,
is the most 'on-the-job' training for general management that exists because it demands daily action in multiple functional areas.
Nonetheless, even the most courageous entrepreneur will probably be more successful if he or she has had significant work experience as
an employee in the industry and market in which they expect to lead a new company (seven years or so appears to be the optimal time. Less
means inadequate knowledge of the business, and more may mean excessive conservatism).
Entrepreneurs seldom provide models of general management in large corporations. They tend to be loners, primarily interested in personal
achievement and uncomfortable with exercising power over a large organization. Their personal career anchors tend toward
'autonomy/independence' or 'functional/ technical' rather than aspiring personally to lead a large company. They are uneasy with the
'interdependence' that management requires.
Often, once the company is successfully launched and has grown beyond a size that he or she can control personally, the entrepreneur
becomes frustrated with the emergence of big-company- like bureaucracy and sells and/or departs the company.
Even when the entrepreneurial founding general executive stays and is effective, the chronic problem is often succession. Personal technical
knowledge and leadership charisma coupled with a disinclination to delegate significant authority, blocks the development of subordinate
managers. The unhappy experience of Wang Laboratories after the death of its namesake founder is all too common.
The Generalising Specialist
The generalising specialist takes a critical skill and generalises it for the total organization's benefit. An organizational design philosophy
emphasises every manager's responsibility to network within the family of companies. Developing informal relationships and looking for
synergistic opportunities is every manager's responsibility, not just the top's. Thus, the intent is to disperse a synthesizing perspective
throughout the organization.
Louis Gerstner, chief executive at IBM, who represents a specialist able to generalise his expertise so that it reinvigorates an overly narrow
company, offers a happier general executive model. The core consumer marketing function orientation he brought to IBM seems to be
exercising a beneficial influence on the company's technical culture to help it better define its product and service strategy in a way that
prospective customers can understand. By taking a marketing orientation approach and integrating it into a strong but complementary
organizational culture, longer run possibilities emerge.
General Management Attributes
We hear that firms are 'over-managed' and 'under-led'; leading to an unfortunate distinction between management and leadership with the
pernicious implication that good management is some- how inferior and less important than leadership. The distinction can cause great
mischief when embodied in the belief that a senior executive need only be a good leader rather than an effective manager.
Influential leaders who did not know how to manage have done much damage in human affairs as they raised expectations without the ability
to deliver on them. And no effective number-two executive officer/chief operating officer/executive vice-president type can totally compensate
for the destructive effects of a charismatic leader who has no aptitude for the nitty-gritty of actual management.
Of course, the good manager/non-leader can be boringly bureaucratic. In the long run such narrow people can also reduce human liberties
and spirit, as adherence to rules becomes an end instead of a means. The worldwide scepticism about government-run business reflects this
unhappy experience.
The effective general executive does not need to be an improbable philosopher-king, but does need an ability to uncover vision and convert it
into action. The chief executive alone does not have .to be the creator of the unifying vision. The vision may be more collective in origin than
one individual, but clearly it must be shared and converted into management practice.
Proactive communication skills are important and the ability and willingness to initiate communications to stakeholders is critical. Verbal
articulation is increasingly important to general managers. Some studies suggest that public speaking is our most feared activity, which may
explain why the most common training requested by newly appointed senior executive is speech making. Because of the world wide
competition for capital speaking to stockholders, individually or in groups, is one of the most rapidly expanding time demands on senior

executives.
Fostering Approachability
Even more important than initiating communications, however, is the ability to receive them: that is, willingness to create an environment of
approachability. My own research on how managers spend their time suggests that the most effective general executives spend less time on
communications they initiate and more time talking to others who start the conversations. (Those rated more effective spent 16 hours per
week communicating in response to others, and only 9.5 hours on conversations they initiated; less effective executives spent 11.3 hours per
week on self-initiated conversations and only 6.5 hours responding to others).
The more effective executives control less by self-initiated interrogation and more by availability and receptivity to subordinates and
colleagues. They best create an atmosphere of tranquillity and focus that communicates to their visitors that their presence is enjoyable and
is at the moment the most important activity that the executive could be doing. Colleagues of as diverse a set of leader-managers as Winston
Churchill and Reginald Jones, former chief executive of General Electric , have commented admiringly on this skill.
Some dramaturgy is involved in creating this environment, of course: not talking across a crowded desk but rising to move to another chair
when a visitor enters; silent buzzers that prompt a secretary 'accidentally' to interrupt a meeting to remind the executive of some real or
imaginary pressing matter.
More fundamentally, however, effective general executives intrinsically enjoy conversation when people come to them and this enjoyment
reinforces the willingness, especially of subordinates, to approach thern. It is not that the subordinates habitually come to the executive with a
request for permission to do something. Rather they come for advice. Most such conversations do not end with the general executive's
directive, but they do offer a mutual learning experience (and of course the opportunity for a veto if the subordinate's intended action
promises disaster).
The greatest advantage of general executive receptivity is the encouragement of an upward flow of communications that helps top managers
to understand better the operating and environmental realities.
Tolerance for Error
Encouraging candid upward communication requires substantial tolerance for error and even foolishness. Churchill repor1edly never
criticised a subordinate's proposal at first hearing. He recognised that a creative idea is most venerable shortly after birth. Rather, he
expressed boyish enthusiasm about the most unrealistic ideas. More importantly, his subordinates were not afraid to voice new ideas so the
organization was rich with creativity. Such a leader-manager, of course, cannot accept all proposals, but necessary vetoes can be issued on
a somewhat delayed and more private basis so that the future floating of ideas is not discouraged.
Senior general executives require great behavioural flexibility. Among all kinds of specialist and manager positions, general management
allows the incumbent the greatest discretionary control of personal behaviour and requires the greatest behavioural flexibility.
Unlike functional control managers, service managers and other specialised positions, general managers have the potential for personality to
be reflected in how they spend their time. The time horizons and decision demands, for example, are much longer than those for an
operating supervisor. This means that general managers must have a wider repertoire of behaviours -enduring periods of uncertainty about
what subordinates are doing; withstanding the temptation to intervene prematurely after they have supposedly delegated authority; accepting
results inferior to those they could have achieved by doing the task themselves; and listening through a subordinate's proposal when they
could simply tell him or her what to do in a fraction of the time.
General executives must know when their leadership style should be participative and when authoritarian. Being authoritarian all the time is
the easiest style. It will work in lower management levels, with entrepreneurial start-ups and in many corporate turnaround situations where
the objectives are clearly defined and the problem relatively simple intellectually if not behaviourally.
However, constant authoritarianism will be disastrous in a competitive and changing environment where the company's success depends on
the ability to utilise all the divergent skills present among its key players. Even here, however, talk must eventually come to an end and action
commences. In those circumstances when consensus cannot be reached, the senior general executive must issue the decisive word.
The Japanese have a most descriptive term for the person who can do this. He is the one who listens with an 'inner ear' to the implicit
consensus of which the management team is not yet aware, and then articulates it at the propitious moment.
Developing Generalised Skills
Since specialised skills and education will remain critical to a viable organizational career, the challenge seems to be how to help the
specialist gain himself or herself a generalised expertise as rapidly as possible. As we have seen, in general management the ability to
conceptualise how parts and functions fit together is critical. This is an integrating, or synthesising, skill (in contrast to the specialist's
analysing, or breaking-apart, approach).
This synthesising ability is related to creativity, most of which consists not of conjuring up totally new ideas but in putting common elements
together in novel ways, often by borrowing from a separate context. For example, a professional architect/amateur fisherman who was
designing a roof for a tropical building wondered how the flounder changes its colour depending on the sea bottom. The technology of small
bubbles, which expand or contract among fish scales, was adopted to the building of the roof, white balloons expanding to reflect heat;

contracting to absorb it.

Such creative synthesizing ability is not totally understood, but there are some instructive lessons for developing general executives. People
who are more creative tend to expose them- selves to a more heterogeneous mix of incoming stimuli for example, more varied reading,
odder hobbies and a wider diversity of people with whom they talk.
It is not clear what the impact is of undergraduate business education, but the intention at most such institutions is to combine the analytical
development of a technical education with the integration of liberal arts development, Thus, variety of experience provides the potential cues
for borrowing synthesising ideas.
One of the paradoxes of management development is that one must sometimes throwaway specialised knowledge, so painfully gained, by
periodically changing functional responsibilities. Short- term individual and corporate performance must be harmed in the interest of building
stronger integrating forces.
Research on conflict resolution strongly supports the conclusion that homogeneous groups composed of people with no personal experience
of an opposed group are much less likely to resolve their differences with that group than when at least some members in each group have
had experience in the other. As 'a native American saying puts it: 'Walking a mile in the moccasins of your opponent enables you to
understand his grievance'.
In addition, the rhetorical gap between senior executives and recruiting managers should be bridged. Many general executives offer vocal
support for the hiring of humanities and liberal arts students for managerial careers. But the operating departments doing the actual hiring
mainly look for more narrowly educated technocrats.
Finally, the dramatic pruning of corporate staff and middle managers in recent years has led to new concerns about the elimination of general
management positions crucial to developing people for top executive jobs.
Whether reducing bureaucratic levels aids or hinders development of future general managers appears to depend on the causes of the
pruning. If the drive is to reduce expenses and quickly improve profits, power flows upward rapidly and lower-level discretion is squeezed out.
Morale declines and personal development slows down even among the survivors.
If, however, the pruning is accompanied by viable product and service innovation that draws on close-to-the market multi-functional teams,
the opportunities for general management training increase.
The Threat of Success
Personal career success can be a grave threat to those who have climbed to the general management ranks. Unhappily, such success often
leads to inflexibility as one loses the motivation and courage to change. With time we tend to lose the ability to distinguish the new from the
old, the unique from the regular. We interpret cues as warranting previously successful responses inappropriate to the changed situation. It is
the very 'busy-ness: of managerial life that contributes to the problem.
The reality of most executives' days is not like that implied in management textbooks, neatly divided into periods of planning, controlling,
structuring, staffing and directing. Rather, it is a seeming chaos of time, talking in many short conversations covering multiple topics, broken
by five or so previously scheduled meetings per day.
Now making transitions from short-run emergencies to longer-run challenges is tough; ten minutes alone are helpful only for work on small,
immediate issues. They are unsuitable for longer range, less-structured projects. Many executives simply do not believe they have up to 90
minutes alone each day; they feel that they scarcely have time to start a new task, drink a cup of coffee or even take a deep breath before
being interrupted by a ringing telephone, an unexpected fax, an uninvited visitor or a clanging bell on the computer announcing another
incoming e-mail message.
Continual dominance by immediate demands means inadequate time for future-oriented reading and thinking. As a result, many executives
tend to be narrow in their interests, concentrating on technical and business reading. Time-harried people take insufficient time for
exploration of the different. Dominated by response behaviour for long periods, they can lose track of who they are and what they believe.
Losing touch with their own values and aspirations, they find it impossible to initiate fundamental changes. The future is never confronted.
Short-term performance measures also encourage executives to concentrate on it now. They feel that they are rewarded or punished for this
year, based on annual measures of costs, earnings and growth. In the long run, they will be dead or transferred.
Every competitive business system requires short-term performance results; only a monopoly can ignore them. Nonetheless, even given
world-wide competition, performance tends to be measured over too limited a time span. Concentrating on the present is often rewarded,
while sacrificing for the future is ignored (or punished).
Short-term busy-ness contributes to habits and preoccupations that are the ultimate threats of success. As we master our jobs and grow
older, we tend to behave without thinking, a sort of sleepwalking through our lives allowing our perceptive skills to atrophy. Men over 50
particularly demonstrate a propensity to insulate themselves, to draw back from the competitive fray, to lose touch with customers and
markets.
One study of 2,000 executives concluded that the single most important attribute of those who handled success well (and were able to

maintain it) was their ability to embrace change. To stay so vital requires maintaining the ability to perceive uniquely, to see differences.
Experience can be a great source of learning, of course. It can certainly save a lot of time as we fit current problems into the learned
categories of the past. Unfortunately it can also waste time and cause disaster if we categorise issues prematurely and erroneously.
Confronting the Unknown
You have heard of people who have worked for 20 years, but do not have 20 years experience; they merely repeated the first year 20 times.
Such people may treat a new problem as if it were like past ones, when in fact it is new and unique. Keeping alive this ability to perceive
deeply requires frequent exercise. This means building into our daily lives regular repetition of the process of letting go of the known and
confronting the unknown change for the sake of change.
The answer to this problem could be to focus on one unsatisfactory more senior subordinate for a few months, experimenting with changing
the mode of performance feedback. Perhaps the managers could write a note to themselves every time they observe the subordinate in
action; then they could schedule time every week to discuss these observations while they are fresh, rather than letting unrecorded
impressions pile up until a fruitless annual interview ritual. The new approach mayor may not work, but the very action of confronting a
difficult new behaviour will help preserve executive vitality.
Similarly, off the job, executives can define personal growth objectives that encourage focusing on a new activity: learning to play the piano at
age 35; studying a foreign language at age 40; starting to paint at 50. All of these can be vehicles for keeping alive the ability to perceive
uniquely because they involve modest but repeated confrontations with the unknown.
In these encounters it is less important that the new be actually mastered than that a good effort be made. Humans can 'deny' death
(psychologically if not physically) by exercising the capacity to give up the well-known task and confronting the new.
Numerous senior executives have said to me that they never really felt comfortable in their careers until they 'transcended' their ambitions. It
is not that they give up the race, but they become less concerned with winning and happier with merely running. The key to this turning point
lies in accepting oneself and giving up the tyranny of external evaluations. Paradoxically, this very lessening of career centrality can promote
personal success as we become less fearful of making mistakes and more willing to act on intuition.
No one of course can truly 'transcend' time; but ultimately, the most effective general executives seem to lift their time horizons.
Most achievement-oriented managers are dominated by a Newtonian view of time as constant, unvarying motion in which each interval is
unique but equal. The activist ethic, associated with this perspective, encourages constant, short-range activity. It discourages speculation
and fosters guilt feelings when one is not busy.
The paradox for general executives is that they need to relax a little in order to work more effectively relax the intensity of their work on
present problems and address themselves more to future possibilities. They need to value today less and tomorrow more.
Executives tend to avoid thought about the future because it is ambiguous. Clear-cut, short- run problems may be difficult but they are
satisfying to solve. In contrast, formulating wishes about the future, conceiving what we want the future to be and perceiving the future as
history is difficult and threatening.
We tend to fear the kind of time necessary for such thought. It must be open, unstructured and seemingly non-directed, attributes counter to
time-haunted, efficiency-minded people. Wide-open time like space can be frightening.
Defining Fundamental Values
In addition, incorporating concern about the future into the present necessitates clarifying what we really want. And this means defining
fundamental values of management, organizations and society. As we wrestle with problems of international competitiveness, chronic
unemployment, government debt and global environmental pollution, such clarification is critical for all of our futures.
An old native American proverb states: 'All that is seen is temporary.' The present is not unimportant nor is the world an illusion, but futureoriented, time-transcending general executives should have the detachment of people who accomplish great things while refusing to be
devoured by current events.
The Human Factor
In the management of a small team, the human factor is crucial to success. Lets consider possible motivators and a simple framework for
dealing with people.
When you are struggling with a deadline or dealing with delicate decisions, the last thing you want to deal with is "people". When the fight is
really on and the battle is undecided, you want your team to act co-operatively, quickly, rationally; you do not want a disgruntled employee
bitching about life, you do not want a worker who avoids work, you do not want your key engineer being tired all day because the baby cries
all night. But this is what happens, and as a manager you have to deal with it. Few "people problems" can be solved quickly, some are totally
beyond your control and can only be contained; but you do have influence over many factors which affect your people and so it is your

responsibility to ensure that your influence is a positive one.

You can only underestimate the impact which you personally have upon the habits and effectiveness of your group. As the leader of a team,
you have the authority to sanction, encourage or restrict most aspects of their working day, and this places you in a position of power -and
responsibility. This article looks briefly at your behaviour and at what motivates people, because by under- standing these you can adapt
yourself and the work environment so that your team and the company are both enriched. Since human psychology is a vast and complex
subject, we do not even pretend to explain it. Instead, the article then outlines a simple model of behaviour and a systematic approach to
analysing how you can exert your influence to help your team to work.
Behaviour: Consider your behaviour. Consider the effect you would have if every morning after coffee you walked over to Jimmy's desk and
told him what he was doing wrong. Would Jimmy feel pleased at your attention? Would he look forward to these little chats and prepare
simple questions to clarify aspects of his work? Or would he develop a Pavlovian hatred for coffee and be busy elsewhere whenever you
pass by? Of course you would never be so destructive -provided you thought about it. And you must; for many seemingly simple habits can
have a huge "impact upon your rapport with your team.
Take another example: suppose (as a good supportive manager) you often give public praise for independence and initiative displayed by
your team, and suppose (as a busy manager) you respond brusquely to questions and interruptions; think about it, what will happen?
Probably your team will leave you alone. They will not raise problems (you will be left in the dark), they will not question your instructions
(ambiguities will remain), they will struggle on bravely (and feel unsupported). Your simple behaviour may result in a quagmire of errors,
misdirected activity and utter frustration. So if you do want to hear about problems, tell the team so and react positively when you hear of
problems in-time rather than too-late.
Motivation: When thinking about motivation it is important to take the long-term view. What you need is a sustainable approach to maintain
enthusiasm and commitment from your team. This is not easy; but it is essential to your effectiveness.
Classic work on motivation was undertaken by F. Herzberg in the 1950's when he formulated the "Motivation-Hygiene" theory. Herzberg
identified several factors, such as salary levels, working conditions and company policy, which demotivated (by being poor) rather that
motivated (by being good). For example, once a fair level of pay is established, money ceases to be a significant motivator for long term
performance. Herzberg called these the "Hygiene" factors to apply the analogy that if the washrooms are kept clean, no one cares if they are
scrubbed even harder. The point is that you can not enhance your team's performance through these Hygiene factors - which is fortunate
since few team leaders have creative control over company organization or remuneration packages. What you can influence is the local
environment and particularly the way in which you interact with your team.
The positive motivators identified by Herzberg are: achievement, recognition, the work itself, responsibility, and advancement. These are
what your team needs; loads-of-money is nice but not nearly as good as being valued and trusted.
Achievement: As the manager, you set the targets -and in selecting these targets, you have a dramatic effect upon your team's sense of
achievement. If you make them too hard, the team will feel failure; if too easy, the team feels little. Ideally, you should provide a series of
targets which are easily recognised as stages towards the ultimate completion of the task. Thus, progress is punctuated and celebrated with
small but marked achievements. If you stretch your staff, they know you know they can meet that challenge.
Recognition: Recognition is about feeling appreciated. It is knowing that what you do is seen and noted, and preferably by the whole team
as well as by you, the manager. In opposite terms, if people do something well and then feel it is ignored -they will not bother to do it so well
next time (because "no one cares").
The feedback you give your team about their work is fundamental to their motivation. They should know what they do well (be positive), what
needs improving (be constructive) and what is expected of them in the future (something to aim at). And while this is common sense, ask
yourself how many on your team know these things, right now? Perhaps more importantly, for which of your team could you write these down
now (try it)?
Your staff need to know where they stand, and how they are performing against your (reason- able) expectations. You can achieve this
through a structured review system, but such systems often become banal formalities with little pr no communication. The best time to give
feedback is when the event occurs. Since it can impact greatly, the feedback should be honest, simple, and always constructive. If in doubt,
follow the simple formula of:
highlight something good
point out what needs improving
suggest how to improve
You must always look for something positive to say, if only to offer some recognition of the effort which has been put into the work. When
talking about improvements, be specific: this is what is wrong, this is what I want/need, this is how you should work towards it. Never say
anything as unhelpful or uninformative as "do better" or "shape up" -if you cannot be specific and say how, then keep quiet. While your team
will soon realize that this IS a formula, they will still enjoy the benefits of the information (and training). You must not stint in praising good
work. If you do not acknowledge it, it may not be repeated simply because no one knew you approved.
The work itself: The work itself should be interesting and challenging. Interesting because this makes your staff actually engage their
attention; challenging because this maintains the interest and provides a sense of personal achievement when the job is done. But few

managers have only interesting, challenging work to distribute: there is always the boring and mundane to be done. This is a management
problem for you to solve. You must actually consider how interesting are the tasks you assign and how to deal with the boring ones. Here are
two suggestions.
Firstly, make sure that everyone (including yourself) has a share of the interesting and of the dull. This is helped by the fact that what is dull
to some might be new and fascinating to others -so match tasks to people, and possibly share the worst tasks around. For instance, taking
minutes in meetings is dull on a weekly basis but quite interesting/educational once every six weeks (and also heightens a sense of
responsibility). Secondly, if the task is dull perhaps the method can be changed -by the person given the task. This turns dull into challenging,
adds responsibility, and might even improve the efficiency of the team.
Responsibility: Of all of Herzberg's positive motivators, responsibility is the most lasting. One reason is that gaining responsibility is itself
seen as an advancement which gives rise to a sense of achievement and can also improve the work itself: a multiple motivation! Assigning
responsibility is a difficult judgement since if the person is not confident and capable enough, you will be held responsible for the resulting
failure. Indeed, delegating responsibility deserves another article in itself (see the article on Delegation).
Advancement: There are two types of advancement: the long-term issues of promotion, salary rises, job prospects; and the short-term
issues (which you control) of increased responsibility, the acquisition of new skills, broader experience. Your team members will be looking
for the former, you have to provide the latter and convince them that these are necessary (and possibly sufficient) steps for the eventual
advancement they seek. As a manager, you must design the work assignment so that each member of the team feels: "I'm learning, I'm
getting on".
Problems: We are going to look at a simple system for addressing people-problems. It is a step-by- step procedure which avoids complex
psychological models (which few managers can/should handle) and which focuses upon tangible (and so controllable) quantities.
One work of warning: this technique is often referred to as Behavioural Modification (BM) and many balk at the connotations of managementdirected mind control. Do not worry. We are simply recognising that staff behaviour is modified by the work environment and by your
influence upon it. The technique is merely a method for analysing that influence to ensure that it is positive and to focus it to best use.
In any group of people there are bound to be problems - as a manager, you have to solve or at least contain them. You ignore them at your
peril. Such problems are usually described in terms like: "Aman is just lazy" or "Brenda is a bad-tempered old has-been". On the one hand,
such people can poison the working environment; the other hand, these descriptions are totally unhelpful.
The underlying philosophy of BM is that you should concentrate upon specific, tangible actions over which you have influence. For instance
"Aman is lazy" should be transformed into "Aman is normally late with his weekly report and achieves less than Alice does in anyone week".
Thus, we have a starting point and something which can be measured. No generalities; only specific, observable behaviour.
Before proceeding, it is worth checking that the problem is real -some "problems" are more appearance than substance, some are not worth
you time and effort. So, Stage 1 is to monitor the identified problem to check that it is real and to seek simple explanations. For instance
Aman might still be helping someone with his old job.
Stage 1 is often missed -ask Aman for his solution. This sort of interview can be quite difficult because you run the danger of making personal
criticism. Now you may feel that Aman deserves criticism, but does it actually help? Your objective is to get Aman to work well, not to indulge
in personal tyranny. If you make it personal, Aman will be defensive. He will either deny the problem, blame someone else, blame the
weather, tell you that he knows best or some combination of the above. If, on the other hand, you present the situation in terms of the specific
events, you can focus upon Aman's own view of the problem (why is this happening?) and Aman's own solution (what can Aman do about it.
- can you help?).
Stage 2 will sometimes be sufficient. If Aman had not realised there was a problem, he might act quickly to solve it. If he had thought his
behaviour would pass unnoticed, he now knows differently. By giving Aman the responsibility for solving his own problem, you can actually
motivate him beyond the specific problem: he may suggest on improved reporting system, or a short training course to deal with a technical
short-coming. Finally, the demonstration alone that you are interested in Aman's work may be enough to make him improve. Never assume
that you know better, always ask first -then if no solution. is forthcoming, proceed to ...
Stage 3 is the analysis stage and is based upon a simple model of behaviour: every action is preceded by a trigger, and is followed by a
consequence or payoff. Thus baby is hungry (trigger), baby wails (action), baby gets fed (payoff); or the report is due today (trigger), Aman
goes for coffee break "to think about if' (action), Aman has a relaxing afternoon (payoff).
Sometimes, good behaviour is blocked by negative payoffs. For instance, if every time Chetan informs his boss Deepa about a schedule
change (action), Deepa vents her annoyance on Chetan (payoff), then Chetan will be less inclined to approach Deepa with information in the
future. One of the problems with communication in Ancient Greece was that the bearer of bad news was often executed.
Once you have analysed the problem, Stage 4 is to find a solution. With most people-problems at work, you will find that the "bad" behaviour
is reinforced by a payoff which that person finds attractive. There are two solutions: 1) modify the payoff either by blocking it, or by adding
another consequence which is negative, or 2) create a positive payoff for the alternative, desired "good" behaviour. In the long term, the latter
is preferable since it is better for motivation to offer encouragement rather than reprimand; optimally you should implement both.
This is where you have to be creative. 8M provides a manageable focus and a framework for analysis; you, as manager, must provide the
solution. It is best to work on one problem at a time because this simplifies the analysis. Further, by addressing one, other related problems

are often affected also. Let us consider "late reporting".

Firstly, add a negative consequence to Aman's current behaviour. State explicitly that you need the report by 3.30 on Friday (so that you can
prepare your weekly schedule update) -and, if this does not happen, summon Aman at four o'clock to demand the report before he leaves for
the weekend. This will probably ruin his "hour before the weekend" and he will wish to avoid it.
Secondly, if Aman does get the report in by 3.30 make a habit of responding to it on Monday morning: if there is an issue raised, help Aman
to solve it; if there is a schedule change, talk it over -but make it clear (say it) that you are only able to do this because you had time on
Friday to read over his report. Thus Aman learns that he will receive help and support IF he gets the report in on time
Stage 5 is necessary because such plans do not always work. You must continue to monitor the problem and after a trial period, review your
progress. If the plan is working, continue; if the plan has failed, devise a new one; if the plan has worked, look for a new problem to solve.
Where to Seek Solutions: The range of problems is so large, that it is impossible to offer more than generalities as advise. Each person is
different, each situation is different, so each solution must be carefully crafted. This being said, here are a few ideas.
Look for aspects of motivation -any problem which stems from lack of commitment or interest can only successfully be addressed by
providing motivation, and any of the motivators described earlier can be applied.
Be flexible with regards to personal problems. No parent is immune to the "joys" of a new born baby, no one is unaffected by bereavement.
When circumstances and the human factor impinge upon your ordered plans, adapt; since you cannot change it, work with it. Focus upon the
problem (say, schedule slippage) and deal with that in the existing situation. For instance if you sanction half a day's "sick-leave" to see a
solicitor, you might save a week's worry and distraction.
On a larger scale, look carefully at the "systems" which exist in your team, at those work practices which you and they follow through habit.
Some of these can work against you, and the team. For instance, the way you hold team meetings may suppress contributions (at 4 o'clock
on a Friday, say); the way you reward the exceptional may de-motivate those responsible for the mundane.
Take a long-term view. Constant pressure will eventually destroy your team members. If you acknowledge that a relaxed yet engaged
workforce is (say) 10% more efficient than one which is over-stressed and fretful, then you should realize that this amounts to half-a-day per
week. So why not devote half-a-day to: peer-group teaching, brainstorming on enhanced efficiency, visits to customers (internal and
external), guest lectures on work tools, or all four on a four-weekly cycle. You lose nothing if you gain a skilled, committed, enthusiastic team.
Finally, look carefully at how you behave and whether the current situation is due to your previous inattention to the human factor: you might
be the problem, and the solution.