UNIT IV

DIRECTING
Directing:
-It is the process of instructing, guiding, motivating and inspiring the human factors to achieve
organizational objectives.
-It is a continuous process and performed at every level of management
-It is the final action of a manager in getting others to act after all preparations have been
completed.

It consists of the following elements:

 Issuing orders and Instructions
 Continuing guidance and supervision of subordinates
 Motivating subordinates to work hard for meeting the expectation of management
 Maintaining discipline and rewarding those who perform well
 Providing leadership to subordinates

Nature and purpose (or) Characteristics of Directing:

 Elements of Management
 Continuous process
 Pervasive process
 Creative process
 Linking function
 Management of Human facts

Significance of directing:
 Initiates action
 Ensures coordination
 Improves efficiency
 Facilitates change
 Assists stability and growth

Techniques of directing
 Delegation
 Supervision
 Orders and instructions
 Motivation
 Leadership
 Communication

FOUNDATIONS OF INDIVIDUAL AND GROUP BEHAVIOUR

  Organizational behavior is concerned with peoples thoughts, feelings, emotions and
actions in setting up a work.
 Understanding an individual behaviour is in itself a challenge, but understanding group
behaviour in an organizational environment is a momumental managerial task.

Foundations of individual behaviour

 Human behaviour is considered a complex phenomenon. It is very difficult to define in
absolute terms.
 Combination of responses to external and internal stimuli.
 An individual makes a variety of contributions to an organization in the forms of efforts,
skills, ability, time , loyalty and so forth.

In returns for contributions the organization provides incentives such as

pay, promotion, and job security to the employee.
Factors of individual behaviour in organization

Ability Motivation Job Standards of

requirements performance

Perception Individual Individual Individual

behaviour performance effectivenes

Organization
Personality
behaviour and
resources
Foundations of group behaviour
A group consist of a number of individuals working together for a common objective.
 A group comprises of two or more persons who interact with one another in such a
manner that each person influences and is influenced by each other person .
Need for a group
 In a group, individuals communicate with each other, discuss their performance and take
suggestion from each other to make it better.
 Individual cannot perform each and every task. Group efforts are required for its
completion.
 Group efforts affect an individual, his attitude and behaviour.
 Group has ability to satisfy the needs of its members.
 Groups make the environment at workplace more lively.
 Classification of group:
1. Functional or formal group:
 This type of group is defined by the organizations structure with designated
work with assignments establishing tasks.
 Permanent in nature.
 It includes department such as the personal depart0ment, the advertising
department, the quality control department and public relation department.
2. Task group:
 This group is organizationally determined but it represents those working
together to complete a job task.
 Temporary in nature.
 Informal committees, task forces and work teams are included in task groups.
3. Command group:
 This group is dictated by the formal organization.
 Organization chart determines a command group
 It is composed by direct reports to a given manager.
4. Informal group:
 These are formed for the the purposes other then the organizational goals.
 These are the groups formed by the employees themselves at the workplace
while working together.
 Individuals are drawn together by friendship, by mutual interest or both.
 These are spontaneous and are very effective and powerful.

a. An interest group
 Employees coming together for payment of bonus, increase in salary, medical
benefit and other facilities.
b. Friendship group:
 These groups are the groups of individuals belonging to the same group,
having similar views, tastes and opinions.
 These group can also be formed outside the plant or office and can be in the
form of clubs and associations.
c. Membership group;
 These are the groups of individuals belonging to the same profession and
knowing each other.:
d. Reference group:
 These are the group where individuals shape their ideas, beliefs values etc.
Three formations

(1). Group formation and development

 Groups can form when individuals with similar goals and motives come together.
Groups are formed voluntarily. They can join and leave the group any time..

a). Organizational motives to join groups:

organizations form functional and task groups because such groups help the
organization in structuring and grouping the organization.

b). Personal motives to join groups:

Individual also choose to join informal or interest groups for unimportant reasons.
1. Interpersonal attraction
2. Interest in group activities
3. Support for group goals
4. Need for affiliation
5. Instrumental benefits

(2). Stages of group development

1. Mutual acceptance
2. Communication and decision making
3. Motivation and productivity
4. Control and organization

(3). Characteristics of mature groups

1. Role structures
2. Behavioral norms
3. Cohesiveness
4. informal leadership

Creativity and Innovation:

Creativity refers to the ability to combine ideas in a unique way or to make unusual association
between ideas.
Innovation means outcome of the creative process needs to be turned into useful products.

CREATIVITY TOOLS:
Explain the various creativity tools?

Synopsis:
Creativity Tools:
 SCAMPER
  Vertical and Lateral thinking
 Reframing Matrix
 Brain Storming
 Mind Mapping
 DOIT Process

SCAMPER TOOL:
-SCAMPER is a checklist that helps us to think of changes. We can make to an existing product
to create a new one.
-These changes can be used either as direct suggestions or as starting points for lateral thinking.
S-Substitute Components, Materials, People
C-CombineMix, Combine with others assembles or services, integrate
A-Adaptalter, change function.
M-ModifyIncrease or reduce in scale, Change shape, Modify attributes (Colour)
P-Put to another use
E-EliminateRemove elements, Simplify, Reduce to core functionality
R-ReverseTurn inside out or upside down, also use of reversal

Vertical and Lateral Thinking:

Vertical Thinking:
 In a vertical thinking, one starts with some known condition and then applies steps of
reasoning aimed at reaching goal.
Lateral Thinking:
 Lateral Thinking is the opposite of vertical thinking
 Lateral thinkers make jumps to new ideas and views; they are creative and imagination,
often supplies ideas that vertical thinking alone could not provide.
Reframing Matrix:
 Reframing matrix is a simple technique that helps to look at business problems form a
number of different viewpoints.
 It expands the ranges of creative solutions that you can generate.
  The approach relies on the facts that different people with different experience approach
problems in different problems.
Brainstorming:
 Brainstorming is an excellent way of developing much creative solution to a problem.
 It works by focusing on a problem, and then coming up with many radical solutions to it
 Suggestions are listed without any criticism on a black board or news print as they are
offered. One visible ideas leads to others.
 At the end of the session participants are asked how the ideas could be combined or
improved.
Mind Mapping:
 This tool is similar to concept fan except looking one step back from main topic
 A Mind map consists of a central word or concept with 5 to 10 main ideas that relate to
that word, similar to creating a spider-web.
DO-IT Process:
 DO-IT is a process for creativity
 Techniques explained focus on specific aspects of creative thinking.
 DO IT bundles them together introduce formal methods of problem definition and
evaluation.
 These help you to get the best out of the creativity techniques.
 DO IT is an acronym that stand for:
D- Define Problem
O-Open mind and apply creative techniques
I-Identify best solution
T-Transform

MOTIVATION:
Meaning:
 According to koontz and O’ Donnell,” motivation is a general term applying to the entire
class of drives desires, needs wishers and similar forces that induce an individual or a
group of people to work”.
 Scott defines, “Motivation means a process of stimulating people in action to accomplish
desired goal”.
 Edwin B.Flippo, “motivation is the process of attempting to influence others to do your
will through the possibility of reward”.

Discuss about the nature and importance of motivation:

Nature of Motivation:
The characteristics of motivation are
 Motivation is an unending process because human needs are unlimited.
  It deals with psychology. An efficient worker will not do the work well unless he is
properly motivated.
 It directs human behaviour towards certain goals.
 Frustrated man cannot be further motivated unless his basic needs are satisfied.
 Motivated can be either positive or negative
 Positive motivation implies use of incentives, rewards etc. to satisfy human needs.
 Negative motivation emphasis penalties, threatening etc.
 Motivation and job satisfaction are different.
 Motivation: Goal Oriented behaviour.
 Job Satisfaction: When the outcome of job performance has been achieved.

Does motivation important for organization development / achievement? Justify your

answer with Maslow’s hierarchy of needs. May 2015
Importance of motivation:
 Motivation is one of the important functions of the management without which
organisation objectives are different difficult to achieve.
 It creates willingness to do work in a better way.
 Improves the efficiency of operation.
 A proper utilization of human resources is possible since it inspires employees to make
best proper use of different factors of production.
 It leads to job satisfaction, as a result labour absenteeism and turnover is reduced.
 It helps to solve the labour problems and maintains good labour relations.
 Motivation is the basis of co-operation.
 Higher Motivation helps to reduce resistance to change.
 Financial and non-financial incentives not only retain the existing employees but also
attract the competent employees from outside the enterprise

Motivation process
(1). Analysis of situation
The situation which needs motivational inducement must be created so as to ascertain the
motivational needs. Since the needs of different employees differ both in nature as well as
intensity.
(2). Preparing, selecting and applying a set of appropriate motivating tools.
A list of all devices of motivation is drawn and a selection is made of such motivators
which motivate different types of people under different circumstances.
(3). Follow-up
It can be accomplished by getting and evaluating the feedback.
TYPES OF MOTIVATION:
Discuss about the types of Motivation?

Synopsis:
 Positive Motivation
 Negative Motivation
 Extrinsic Motivation
 Intrinsic Motivation

The following are some of the types of motivation:

(i) Positive Motivation:

 It is the process of attempting to influence others to do your will through rewards
 Based on rewards
 Economic benefits –Increment, Bonus, Promotion
 Participation in decision making process
 Delegation of authority and responsibility are some of the methods of positive
motivation.
 Such motivations improve the standard of performance, lead to good team spirit, a sense
of co-operation and feeling of belonging and happiness.

(ii) Negative Motivation:

 This motivation is based on a sort of penalty, punishment, a force of fear or threats.
 The fear of punishment affects the behavioral changes
 If the worker fails to complete the work they may be threatened with demotion,
termination, lay off, pay off cut etc.
 Gives Maximum benefits in the short run.
 In long run they become disloyal to the organisation

(iii) Extrinsic Motivation:

 Motivation by external factors
 Financial in nature
  Incentives and rewards, health insurance, holidays, retirement benefits, free medical
services, vacation pay.

(iv) Intrinsic Motivation:

 It is available at the time of performance of work
 Non Financial
 Provides satisfaction during work
 Praise, recognition, participating in decision making.

Job Specialization:
A job that is a small part of a larger task or process
Jobs are simple, easy to learn
Job Rotation:
Job Rotation is periodically moving workers form one specialized job to another
Job Enlargement:
Job Enlargement is increasing the number of similar tasks performed by a worker without
enhancing the responsibility
Job Enrichment:
Job Enrichment is adding more tasks with higher sense of challenge, achievement and authority
to an employee’s job

MOTIVATIONAL THEORIES:
Explain the different motivation theories and also discuss how it is useful in leadership of
Organization. May 2012, May 2014
Discuss the Maslow’s need hierarchy theory. Compare and discuss the Maslow’s and
Herzberg’s theory of motivation. May 2011, May 2013
Does motivation important for organization development achievement? Justify your
answer with Maslow’s hierarchy of needs. April 2015, Dec 2011, May 2016

Motivational Theories:

1. Carrot and stick approaches of Motivation.

2. Mc- Gregor’s theory X and theory Y
3. Dual-Model theory (Mills theory)
4. Hierarchy of needs- Maslow’s theory
5. Hezberg’s theory– Hygiene Approach to
motivation
6. Vroom’s expectancy theory
7. Porter and Lawler expectancy theory
8. Equity theory
9. McClelland’s needs theory

1. Carrot and Stock Approaches of Motivation

-The carrot and stick approaches are based upon the old belief.
-The best way to get work a person is to put a reward (carrot) in front of him or to hold
out the threat of punishment (stick) from behind.
-The ‘carrot’ is the reward for working and the ‘stick’ is the punishment for not
working.
-Employees who perform the task well are gives rewards in the form of bonus, pay
raise, promotion etc. While employees avoid work and punishment are given, such as
demotion, termination from work, transfer to an unpleasant job, etc.
Carrot and stick approach are, therefore, ‘a reward and punishment system’ for
motivating employees.

Some Measures:
 Reward is a more effective motivator when it is directly linked with performance.
 Accurate appraisal of performance, consistent reward structure and prompt payment of
reward are helpful in improving the effect of reward.
 Punishment is more effective when the undesirable behavior actually occurs.
 Punishment should not become a reward for undesirable behavior.
 The mixture of reward of Punishment should be judiciously applied to reinforce desirable
behavior patterns.
2. Mc-Greg or’s theory X and Theory Y
 Prof. Dowglas’ McGregor has developed a set of theories on the basis of human
behavior.
 These theories are commonly known as “Theory X” and “Theory Y” which involves
certain assumptions about human nature.
Theory – X
According to McGregor theory X is based on the following assumptions of human nature
and behavior.
 Average human dislikes working even if possible.
 Therefore people must be threatened with punishment to make them work.
 The average human being prefers to be directed.
 He avoid the responsibility
 He has no ambition in life
 He wants only job security
 He is resistance to change by nature

Conclusion:
 The above assumptions are negative in nature.
  So, a manager must take effective steps to direct and control the activities of
subordinates
 Theory “x” is pessimistic, static and rigid. It leads to authoritative type of
management

Theory – Y
According to theory-Y, the following assumptions are made about the human nature and
behavior.
 Work is as natural as play or rest.
 The average human being has the tendency to work.
 Man will have self-confidence and control.
 People will be committed to the objectives, if they are properly rewarded.
 Under proper conditions, the average human being accepts the responsibility.
 High degree of creativity

Conclusion:
 Theory Y represents a modern and dynamic nature of human beings.
 It is based on positive motivation.
 So, management does not need to apply much direction and control on the employees.
 If the employee’s needs are satisfied, they will be committed to the objectives of the
organization. Theory Y is optimistic, dynamic and flexible.
Comparison between Theory X and Theory Y:
Sl. No. Theory X Theory Y
1. The average human dislikes Work is as natural as play or rest.
work
2. People are un ambiguities Ambitious and capable of directing
and prefer to be directed by their own.
other
3. They avoid the They accept responsibility under
responsibility. proper condition.
4. External control, Self-directed and self controlled.
threatening and close
supervision required.
5. People lack self-motivation. People are self-motivated.
6. The authority is centralized Decentralization and participation is
and it leads to autocratic decision-making. Democratic
leadership. leadership is followed.
7. They have less creativity They have high degree of imagination.
and resist changing.
 8. It is pessimistic, static and It is optimistic, dynamic and flexible.
rigid.
3. Dual-Model Theory (Mills theory)
 According to Raymond E. Miles, the managerial task is to integrate organizational
variable (goals, technology and structure) with human variables (capabilities,
attitudes, values, needs and demographic characteristic) into an effective and
efficient system.
 Miles identified three theories of management known as traditional, human relations
and human resources models.
 The traditional model is similar to Theory X, while the human resources model is
closely related to Theory Y. The human relations model be seen as Theory X with
participation.
i). Traditional model:
 Its emphasis is on controlling and directing.
 According to this model, the members of the enterprise will meet specific goals if
tasks and procedure are specified and members are properly selected, trained
and paid.
ii). Human relations model:
 This model gives an attention to social and egoistic needs.
 It is recognized that fair treatment and pay are not enough.
 There should be a sufficient control and preventive steps are also taken to obtain
desired contributions of enterprise members.
iii). Human resource model:
 It is different that of above two.
 Under this mode, the manager is seen as a developer; will wisher and facilitator
who help subordinates achieve performance aims.
 In this model, self-direction and self-control are important.
 There is a great deal of participation in goal setting.
4. Hierarchy of Needs – Maslow’s Theory
Maslow’s Hierarchy of need theory is one of the most popular theories of motivation in the
management.

Features:
 Adult motives are complex.
 All people have variety of needs. At any given time some needs are satisfied and some
are unsatisfied.
 The unsatisfied need is the starting point in the motivation process.
 Human needs form a hierarchy.
 Lower level needs most atleast partly be satisfied before higher level needs merge. In
other words, a higher order needs is essentially satisfied.
  Satisfied wants do not motivate the workers.
 Only unsatisfied wants induce the man to work hard.
 Various levels needs are inter-dependent and overlapping.
 Higher level needs can be satisfied in many more ways than the lower level needs.

1. Physiological needs
 Basic needs required to preserve human life at the lower level.
 These needs include needs for food, clothing and shelter.
 Related to the survival and maintaince of life
 Related to the survival and maintaince of life
 Primary needs to be satisfied before all other needs.

2. Safety needs
 Needs to free from economic threats and physical harm.
 Avoidance of unexpected problems such as dismissal, disaster, bodily safety, job security,
Insurance.
 Organisation can satisfy through insurance plan, job security, pension plan, medical
scheme.
 Job security is the key for any individual.
3. Social needs
 Man is a social being
 A sense of belonging and acceptance
 Needs for love, friendship, social interaction, affection.
 A man find satisfaction in association with others
4. Esteem (or) Ego Needs
 Related to status, self respect, self confidence, respect and recognition from others.
 Needs produces feeling of prestige, self confidence, achievement, self respect.
 Self respect: Internal recognition, self confidence, achievement, self respect
 Respect for others: Related with one’s reputation, external recognition, status.
5. Self Actualization (or) Fulfillment
 It is a growth need
 Realising his full potential
 Need for becoming what one is capable of becoming
5. Herzberg’s Theory – Hygiene Approach to Motivation
-In the late 1950’s, Frederick Herzberg and his associate have conducted a study of
motivation.
-This can be known as. Herzberg Motivation maintenance theory or Motivation Hygiene
theory or Two-factor theory of motivation.
-Herzberg and his associates interviewed 2000 engineers and accountants from 11industries
in Pittsburg area of USA.
-These men were asked to recall the specific incident in their experience which made them
feel good or bad about their jobs.
-An analysis of their answers revealed that feelings of unhappiness & dissatisfaction were
related to the environment in which people were working.
-It is clear if a factor is responsible for job satisfaction, the absence would not mean job
satisfaction.
-Similarly the opposite of job satisfaction is not dissatisfaction, but it is no job
dissatisfaction.
-Herzberg’s conducted that there are 2 different categories of needs.
- Thus, these theories are based on two factors: motivational factors and Hygiene or
maintenance factor.

1. Hygiene Factors:
-Hygiene factors are necessary to maintain a reasonable level of satisfaction among employees
-Herzberg indentified some maintenance or Hygiene factors as
 Company policy and administration,
 Supervision
 Interpersonal relations with subordinates,
 Salary,
 Job security,
 Working conditions,
 Status
2. Motivation Factors:
-Motivational factors create satisfactions to the workers at the time of presence but their
absence does not cause dissatisfaction.
 Achievement
 Recognition
 The work self
 Responsibility

6. Vroom’s Expectancy Theory

Discuss on expectancy theory of motivation.
Expectancy Theory:
 Expectancy theory says that people will be motivated to the extent to which they
believe that their efforts will lead to good performance.
 That good performance will be rewarded, and are offered attractive rewards.
 One of the most recent models of motivation has been developed by Victor Vroom.
 Expectancy theory represents a comprehensive valid and useful approach to understand
motivation.
 It is a theory based on self-interest, wherein each individual seeks to maximize his
expected satisfaction.
Vroom’s Expectancy Theory

i). Valance:
 People have preferences (valances) for various rewards and outcomes.
 Valance refers to the importance or personal value that an individual places on the rewards
which can be achieved on the job.
 For example, a person may be motivated to work hard, not to get pay rise but to get
recognition and status. Another person may be more interested in job security than
with status.
ii). Expectancy:
 It implies the extension which a person believes that has effort will lead to high
performance.
 For example, a worker will be motivated by the belief that his performance will ultimately
lead t increase productivity and thus it will result in better payoff for him. Similarly, a
student works hard during the semester because he expects to do well in the semester
examination.
 People must expand some effort to achieve a goal.
 Usually people have certain expectations about whether their behavior will be successful
or not.
 If they see odds as zero, they will not even try. Therefore, expectancy is subjective.

iii). Instrumentality:
 It refers to the relationship between performance and reward.
 It provides the answer to the question, “will I be rewarded if I perform the job well?”
 It implies the degree to which a first level outcome leading to a desired second level
outcome.
  For example, working hard may led to better performance, which is the first level
outcome, which may result in a reward, such as raise in pay of promotion or both,
which is the second level outcome.
 Instrumentality is also a subjective one.
 If a person believes that his high performance will be rewarded or le to expected results,
the instrumentality will be positive.
 On the other hand, if they believe that their higher performance does not make any
difference to their rewards, the instrumentality will be low.
Hence, according to Vroom’s theory, motivation is the sum f the product of valance,
expectancy and instrumentality

Motivational force = Valance x Expectancy x Instrumentality

7. Porter and Lawler Expectancy Theory

 Lyman W.Porter and Edward E.Lawler derived a more complete model of motivation,
built in large part on expectancy theory.
 They propose a multi-varirate model to explain the complex relationship tat exists
between job attitudes and job performance.
 According to Porter and Lawler, the performance in organization appears to be a function
of three important factors.
1. An employee must want to perform the assigned jobs.
2. Motivation alone will not ensure the task performance. A person must have the necessary
abilities and skills.
3. Finally, a person must usually have an accurate knowledge of the requirements of the job, if
he to expected to devote his energies fully on the assigned tasks.
Some of the key variables in this model are presented in fig.4.12
(i) Effort:
 Effort refers to the amount of energy exerted by an employee on a given task.
 It will not directly lead to a specific level of performance.
 Perceived reward probability refers to the individual perception of the probability that
differential depends upon differential amounts of effort.
 Motivation is seen as the force on the employee to expand effort.

Value of
rewards
Ability and Perceived
traits equitable
Performance Intrinsic rewards Satisfaction
Effort
accomplishme rewards
nt
Role
Extrinsic
Rewards
Perceived
Effort-reward
Probability
ii). Performance:
 Effort alone is not enough.
 Performance results from a combination of the effort that an individual puts forth and the
ability which he has and the way he perceives the role ad he should take.
iii). Rewards:
 Intrinsic and Extrinsic rewards are given to a person by himself for a good Performance.
 They include feelings of having accomplished something worthwhile. Intrinsic rewards
are subject to fewer disturbing influence and thus are likely to be more directly related to
the good performance.
 Extrinsic rewards, such as pay, promotion, job-security, good working condition, status
are given by organization and are imperfectly related to performance.
 In addition, the perceived equitable rewards vitally affect the performance satisfaction
relationship.
iv). Satisfaction:
 It actual rewards meet or exceed perceived equitable rewards, the individual will feel
satisfied. Otherwise, he will be dissatisfied.
Conclusion:
 Porter ad Lawler have refined and extended Vroom’s version and provided a more
application oriented model.
 It is true that it proved to be quite complex and difficult to measure. In spite of its
apparent complexity, the model provides a useful tool for understanding, predicting and
influencing behavior and attitudes in organization.
8. Explain Adam’s Equity theory of Motivation:
Equity theory:
According to this theory, people will be motivated when they perceive that they are treated
equally.
This theory points that people are motivated to maintain the relationship between their
performance and rewards in comparison with others
Individuals make contributions for which they gets rewards
InputsPast Training and experience, Special Knowledge
Outcomes/RewardsPay, Recognition, status.

O/I=outcomes of a person/Inputs by a person = Outcomes of another person/ Inputs by

another person
If Individual feel this ration is equal ,he feels equity and motivated.
If individual feel this ration is more, he feels over paid and guilty.
In this case he is likely to reduce the inputs to maintain equity.
9. McClelland’s Needs Theory:
McClelland’s Needs Theory and his associates of Harvard University proposed that the
organization offers an opportunity to satisfy at least three needs, namely, the need for
achievement (n Ach), the need for affiliation (n. Aff) and the need for power (n PWR).

1. Need for power:

 Ability to control the activity of others.
 Need to dominate, influence and control
 People with high needs look for leadership
 They like to set goals, make decision and direct activities
2. Need for affiliation :
 Social needs
 Need for companionship and support
 Motivated by the jobs that needs frequent interaction with coworkers
 They perform well in customer service and interaction situations
3. Need for achievement (n Ach)
 Need for accomplishment and success in competitive situations
 Basic characteristics of achievers
 Take responsibility to find a solution to a problem
 Want to win
 Not Motivated by money instead utilize money for achievement

Limitation of McClelland’s Theory

(i) The use of projective technique is objectionable.
(ii) The evidence in support this theory is fragmentary and doubtful.
(iii) Achievement motivation cannot be taught. It is because acquisition of motives occurs in
childhood and it is difficult to change them one established.
(iv) Achievement motivation training, through promising, is time-consuming and expensive.
10. Alderfer’s ERG theory:
Alderfer’s ERG theory collapses Maslow’s five needs into three:
Existence: Safety and basic needs
Relatedness: Belongingness
Growth: Esteem and self actualisation.

SPECIAL MOTIVATIONAL TECHNIQUES

Money:
Money is one of the important motivational factor. It may be in the form of wages, incentives,
bonuses, company paid insurances.
1. It is an urgent means of achieving a minimum standard of living.
2. Various enterprises make wages and salaries competitive within their industry and their
areas to attract and hold people.
3. It is also a source of status and prestige in society.
4. Mgmt ensure that individual working in the same category are given the same salary or
nearly.
5. The bonuses for managers should be based on their individual performance and outcome.
Participation:
1. Participation is also a means of recognition. It appeals to the need for affiliation and
acceptance.
2. Participation reflects a genuine faith in human nature and it provides dignity to workers.

Quality of working life:

1. One of the important and interesting approach of motivation is the quality of working life
program
2. Good physical working condition such as right temperature, adequate lighting, proper
ventilation, noise free atmosphere have the positive effects.
Job security:
1. It can act as a powerful short-term demotivator. To threaten people, the loss of
employment is to provide a negative incentive which does not pull them to the desired
goal.
Effective communication :
1. Communication at all levels of the organization must be effective both up and down in
the communication mechanism chain.
2. They must be equitable in dealings with subordinates, providing equal opportunities for
benefits such as promotions and be fair in enforcement.
Power of authority:
1. Many professionals seek power to influences others. Managers can satisfy this needs in
several ways such as making them responsible for a task force on a specific topic or
getting them to lead an important technical project.
Financial and non-financial:
Incentives are the inducements which are offered to employees in order to direct their
behavior towards enterprises objectives.
(1). Pecuniary incentives:
Pecuniary or financial incentives are payments directly or indirectly in money wages,
salaries, bonus, profit sharing, retirement pay, vocation pay etc..
a). Individual incentives
b. Group incentives
(2). Non- pecuniary incentives:
It provide psychological and emotional satisfaction rather than financial rewards.
Status responsibility, recognition of work, job security, challenging job, team spirit,
competition, participation.
a). Work challenges
b).Recognition and status
c). Job security
d). Responsibility
e).Competition
f).Opportunity for growth
g). Knowledge of results
h). Supportive Relationship
i). Participation

JOB SATISFACTION

Job satisfaction refers to an employees general happiness with his or her job.
Job satisfaction is the amount of overall positive effect or feelings that individuals have
towards their job.
It is the result of various attitudes the employee holds towards his job, towards related
factors and towards life in general.
Three different approaches
First: Work attitude such as job satisfaction, job performance are dispositional in nature.
Second: social information processing model, which suggest that job satisfaction and other
work place attitudes are developed.
Third: is the information processing model, which is based on the accumulation of cognitive
information abt the work place and ones job.

Job Firm
performance performance
Job factors
 Job satisfaction
Problems with
role perception

Importance of job satisfaction

Job satisfaction significantly contributes to employee productivity and morale. If employees are
satisfied turnover and absenteeism will be less and productivity will be more.
Factors relating to job satisfaction:
Factors such as nature of work, salary, advancement opportunities, management, work groups
and work condition.

Personal factor
It includes the individual employees personality, age, sex, educational level, intelligence..
Job Factor:
It include the type of work to be performed, skill required for work performance,
occupational status involves in the job.

Organizational factors:
It include security, wages and salaries, fringe benefits, opportunities for advancement,
working conditions ..

JOB ENRICHMENT

(i) It is a non-financial technique of motivation. It has been derived from Herzberg’s

two factor theory of motivation..it is based on the assumptions that in order to
motivate personnel.
(ii)The job itself must provide opportunity for achievement, recognition,
responsibility, advancement and growth..
(iii)Modern technology such as division of labour, assembly line, job simplification
has made the jobs dull and monotonous..
(iv)In order to overcome these problems, a new technique called job enlargement..
(v)Job enrichment is an extension of job enlargement technique..
Steps:
1. Giving workers more freedom in deciding about such thing as work, sequence and pace
or the acceptance.
2. Giving workers feeling of personal responsibility for their tasks..
3. Encouraging participating of subordinates and interaction between workers..
4. Taking steps to make sure that workers can see how their tasks contribute to a finished
product.
 5. Giving people feedback on their job performance, preferably before their superiors..
6. Involving workers in the analysis and change of physical aspects of the work
environment..
Advantages:
 Increase the productivity
 Reduces the absenteeism and turnover
 Improves workers morale
 Improves decision making ability
1. Reduces work load of superiors
Disadv:
1.job enrichment has negative implications
2. It is basically limited to non-managerial jobs
3. Workers those who prefer less responsible jobs.
4.most of the time job enrichment is imposed on people..

LEADERSHIP

 Leadership is the process of influencing the behaviour of others to work

 Leadership inspires and motivates people to work together.

What are the essential qualities of a good leader? May 2016

Discuss the obstacles to be leader flexibility and Leader Styles based on them. May 2015
Importance of leadership:
 Initiates action- leader is a person who starts the work by communicating the policies
and plans to the subordinates from where the work actually starts.
 Motivation- He motivates the employees with economic and non-economic rewards
and thereby gets the work from the subordinates.
 Providing guidance- Guidance here means instructing the subordinates the way they
have to perform their work effectively and efficiently.
 Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates.
 Building morale- Morale denotes willing co-operation of the employees towards their
work and getting them into confidence and winning their trust.
 Builds work environment- An efficient work environment helps in sound and stable
growth. He should treat employees on humanitarian terms.
 Co-ordination- The synchronization can be achieved through proper and effective co-
ordination which should be primary motive of a leader.
LEADERSHIP STYLES
Explain the various leadership styles
April 2015
Leadership Styles: It is the behaviour of a leader during the supervision of employees

Autocratic leadership: A leader believes in centralisation of power. He is also known as

authoritarian or Dictator.
There are three types of autocratic leaders.
(a) Strict autocrat: The leader follows autocratic styles in a strict sense. He follows negative
motivation for getting work from subordinates.
(b) Benevolent Autocrat: The leader also takes decisions himself but his motivation styles is
positive,
(c) Incompetent Autocrat: Sometimes, leader adopts autocratic leadership style just to hide
their inabilities i.e, incompetence, but this cannot be used for a long time,
 Full authority
 Decision taken without consulting the subordinates
 Subordinates should follow the direction without any question
 Uses threats and punishment to extract work
 Centralisation of power
Advantages
 Quick decision making
 Suitable at lower levels
Limitations:
 Dissatisfaction among employees
 One way communication without feed back
 Employee morale will be very low
 Suitable in the short run
 Absenteeism and employee turnover will be more
 One way communication without feed back
 Absence of leader affects the output

Participative or democratic leadership:

 Leader believes in decentralisation of power.
 This type of leader asks suggestion; ideas from sub-ordinates,
  Subordinates feedback are consulted before decision making
Advantages:
 Leads to good human relation
 Motivated by participating in decision making
 Absenteeism and employee turnover will be less

Limitations:
 Time consuming indecision making
 Not suitable at lower levels
 Controlling is difficult

Laissez faire or Free Rein:

 The leader has no authority and responsibility under this style.
 Authority is completely decentralized.
 Complete freedom given to the subordinates
 The sub ordinates themselves take decisions for which they get authority.

Advantages:
 Positive effect on job satisfaction
 Builds morale of subordinates.
 It creates an environment of freedom, of individuals as well as the team-point.
 Full utilization of the potential of subordinates.
Limitations:
 Lack of discipline
 Lowest productivity
 No control and co-ordination.
  Some members may put their own interests above the group and team interests.
Paternalistic:
 Leader plays a father like role towards the followers and takes care of their problem.
The way a father does for his family and his subordinates will be his daughter or son.
This type of leader will give complete freedom to sub-ordinates.
Advantages:
 Subordinates are loyal to the organisation and leader
 Good human relations(because of family environment)
 Fear and love are combined. Hence best performance

Limitations:
 Unsuitable when there is lack of mutual trust between leader and followers
 More involved in family problems than organisational issues

Conclusion:
 No particular leadership style is adopted in all managerial situations
 Changing with situational factors
 Based on demand, a leader must adopt a mixture of all styles at the same time

LEADERSHIP THEORIES:
Discuss various leadership theories

Leadership theories:
The theories are classified into 4 types
 Charismatic leadership theory or Great man theory
 Trait theory
 Behavioural theory
o Michighan studies
o Ohio state university
o Managerial grid
 Contingency theory
o Fiedler's model
o House's path goal model

1. Charismatic leadership theory:

 This theory also called great man theory. This suggests "Leaders are born and is not
made"
 Charisma is a Greek word meaning "Gift"
 Leadership quality carried out through genes
 These leaders has extremely high-level of self-confidence, dominance,
 E.g. Mahatma Gandhi, Nelson Mandela, Lenin, Winston Churchill, Dhirubhai Ambani
who created histories (God gifted qualities)
2. Trait Theory:
  Trait means quality in Person.
 It describe leadership in terms of what they are
 These approaches are not completely inborn, but one can acquire through learning and
experience.
 This theory suggest" what makes a successful leader" from the leader's own
characteristics.

3 .Behavioural Theory:
 This theory describes leadership in terms of what to do
 This emphasis strong leadership is a result of effective role of behaviour.
 Effectiveness of a leader is judged in terms of sub ordinate outcome
Michighan studies
Researchers identified two leadership styles
 Employee centered: A supervisor is considered as employee centered if the employees
are allowed to handle most of the problems with little assistance
 Production centered: Concerned more for the task than the people performing the
task Considered employee as instruments for getting work rather than the needs and
emotions
 Conclusion:
 Employee centered style of leadership increases productivity
 Production centered will frustrate the employees and creates unsatisfactory job
performance
Ohio state university studies
 Researchers identified two leadership behaviours
 Concentration: mutual trust between leaders and the group
 Initiating structure: creating a work environment. Work is created and organised in such
a way what they know exactly, what and how is to be done
They found two behaviours are independent

Managerial grid
A well known approach to define leadership style is managerial grid developed by Robert Blake
and Mounton
The grid has two dimensions concern for people and concern for production
Concern for production

1,1 management (Impoverish management) - Managers concerns themselves very little with
either people or production and have minimum involvement in their jobs. It indicates
 Managers take minimum efforts to get work done
 Minimum standard of performance
 Minimum worker dedication

management- They are the Team managers. The highest possible dedication both to people
and production. It indicates
 Dedicated people
 High Managerial efficiency
 Highly organised task performance

management (country club management) - managers have little or no concern for production
but are concerned only for people. It indicates

management (Autocratic management) - ) -managers ,have little or no concern for people

but are concerned only for production It indicates It indicates
 Excellent work design
 Minimum worker interference
 Efficient operation

management - Managers have medium concern for both people and production.
 Satisfactory performance is achieved by equating the necessity for performance and
reasonable morale.

The grid is useful in identifying and classifying the managerial styles but it does not tell why a
manager falls in part or other part of the grid

Conclusion:
Leader styles
1. Task Manager E.g Defence, Concerned only on task
2. Team Builders - high concern for production as well as people
3. Impoverished Style - Unfit for Leadership qualities, less concern for people as well as
production
4. Country club Manager E.g - Trade union, high concern for people than production.

4. Situational or Contingency Approaches to Leadership

 The usefulness of trait and behaviour is tested in a particular situation.
  Some traits and behaviours are effective in a particular situation and ineffective in another
situation.
 According to situation theory, no leadership style is the best for all times and all
situations. Situation helps the persons to develop their leadership qualities and emerge as
leaders.
 The leader should adjust his style to the nature of the task, the type of followers and the
environment to improve his leadership effectiveness.

Fielder's contingency approach:

According to this theory, leader effectiveness depends upon three major situational variables.
These variables are viewed as attributes (low-high) rather than continuum.
They are (a) Leader-member relations, (b) The task structure and (c) The leader's position
power.

(a) leader-member relations

 It examines the degree of trust that the group members place in the leader.
 It indicates the degree to which group members willing to accept the leader's
behaviour.
 A leader can be more effective if he is trusted by the followers who are willing to
accept his influences.

(b) Task structure

 It is focused upon the number of steps needed to complete the task.
 It measures the extent to which the task performed by followers is routine or non-
routine.
 If the task is clearly defined and routine, group members can be more easily held
responsible for performance.

(c) Leader's position power

 It is determined by the degree to which a leader derives power from the position held
by him in the organization.
 It enables him to influence the behaviour of others.
 A leader with considerable position power can more easily obtain a better following.
Fiedler developed eight possible combinations ranging from highly favourable to unfavourable
situations
Conclusion:
 A favourable situation - the first cell with high task structure, Good leader member
relations and strong leader’s position power.
 An unfavourable situation – The last cell with Loco task structure,, poor leader – member
relations and weak leader’s position power.

House’s path goal approach

The term path goal is employed because the leader sets up clear paths and clear guidance
It is a combination of situational leadership and V room’s expectancy theory.

Two groups of situational variables are considered

(i) Characteristics of subordinates – Needs, self confidences and abilities
(ii) Work environment – Nature of task, rewards systems, founal authority system

There are 4 leadership behavior that supports this approach depending on situation
 1. Supportive leadership : This type of leadership is friendly and approachable and has
positive effect on the followers
2. Participative leadership: This type of leadership makes the decision with active
participation of the followers.
3. Instrumental leadership: Leader focus our planning, organizing and co-ordinating the
activities of subordinates. He defines the standard of performance and make it clear what
is expected from subordinates
4. Achievement – Oriented leader ship : leader sets challenging goals for the folloers and
seeks improvement of performance of the subordinates.
Conclusion:
 Leadership behavior is acceptable and satisfying for the subordinates.
 Leadership behavior is also motivational.

Likerts Management Model – Situational theory

System 1- Exploitive Autocratic Leader (oriented towards task alone)
System 2 - Benevolent Autocratic Leader (task oriented but has the quality of opposing if
things are good)
System 3 - Participative Leader (concerns the employees for a particular kind of work,
though he concern decision will be taken only by him.
System 4 - Democratic leader

3 Situations
1. Confidence / Trust in Employees
2. Subordinates feeling of freedom
3. Managers seeking involvement with Subordinates

Ratings of the Leaders by their employees at different situations

COMMUNICATION:
Explain the process of communication Dec 2011
Communication
 Communication is the interchange of thoughts and information.
 Human beings interact with each through communication
 It is the process of passing information from one person to another
Nature of communication
 Ongoing process
 Two way process
 Pervasive function
 Message should contain substance
Purpose
Communication is necessary to integrate all the managerial functions internally Planning
Organizing, Staffing, Leading, Controlling.
Need for communication
 1. To establish spread goals of an enterprises widely
2. To develop plans for further achievement
3. To organize human and other recourse
4. To select, develop and apprise the members of the organization.
5. To lead, direct, motivate and create a good working environment..
6. To control and maintain the uniform performance throughout..

Communication process:

Elements of communication
 Sender -Initiator of communication process
 Message - The Subject matter of Communication
 Encoding - act of translating he message into words, pictures, symbols
 Channel- Media used (formal or informal)
 Receiver - person who receives the message and understand
 Decoding - act of converting symbols, signs or pictures into meaningful message
 Noise-Affects the communication in any stage- transmitter, receiver, channel. If anyone
is affected proper communication will not reach the receiver.
 Feedback - It is the response, reaction or reply to the sender by the receiver
When the sender receives the feedback communication process is complete

Sound Communication provides the following advantages

 Improves Managerial Performance
 Facilitates Leadership
 Increases job Satisfaction
 Reduces time and efforts
 Enhances coordination

CHANNELS OF COMMUNICATION

Explain different types of communication May 2014

Explain the types of formal communication. May 2015
Flow of communication
1. Formal Communication - follows the route formally laid down in the organization
structure
a. Downward Communication - flow of communication from superior to subordinate
b. Upward Communication - flow of communication from subordinate to superior
c. Horizontal Communication - transmission of information among the positions at the
same level of the Organization.
2. Informal Communication - Communication among people through informal
contacts or relations.

1. Downward Communication

S => Subordinates

 Sometimes, information may lose as it comes down the chain of command and t
Consumes move time.
 So, feedback system is necessary for this type of communication.
 This communicating system is only applicable for autocratic type of arrangement

2. Upward Communications
Upward communication flows from subordinates to superior as per organizational hierarchy.
 S:::> Subordinates
 There is a chance of passing irrelevant information to the boss.
 The information may be modified or filtered
 This type of communication is mainly applicable to democratic organisation.

3. Horizontal or lateral Communications

 Communication between the peers or employees of same level.

 Information is passed between the same levels of organisation
 It helps to better understanding of information and to coordinate towards the management
goals

MEDIA OR METHODS OF COMMUNICATION

1. Oral Communication
2. Written Communication
3. Non verbal or Gestural Communication
Oral communication
Oral Communication involves exchange of messages through spoken words. It may take place.
i) by face- to face contacts ii) through mechanical devices like telephone.

Merits
Oral or Verbal communication offers the following advantages:
 Economical
 Personal touch
 Speed
 Flexibility
• Quick response

Demerits
Oral Communication suffers from the following weaknesses-
 Lack of record
 Time Consuming
 Lengthy message
 Physical distance
 Misunderstanding

Written communication
Written Communication is transmitted through written words in the form of letter, circular,
memos, bulletins, instruction cards, manuals, handbooks, reports, returns,

Merits
 Effectiveness
 Lengthy messages
 Economical
 Repetition
 Permanent record
  Better response Demerits
 Time Consuming
 Expensive
 Inflexibility
 Little secrecy
 Lack of personal touch
 Misunderstanding

Difference between Downward and Upward:

Grapevine Merits and Demerits

Personal and social Flexible and instable Fast and Unstructured

Merits Demerits
Useful for developing group Based on rumours
cohesiveness
Serves as an emotional safety Misleads People
value
Effective source of knowledge May breed against particular
feelings
attitudes and
of Employees executives
Supplements the channels of May lead to more talk and less
official
communication work
Tells management when to be May distort official channels of
firm
whenandto yield communication

COMMUNICATION NETWORKS

A network is a structure of organisation made up of lines or channels interconnected

 1. Chain Network
2. Wheel Network
3. Circle Network
4. Free flow or All Channel Network 5. Inverted V

Simple chain: communication flows downward or upward through successive levels Control is
easier
Time consuming
Wheel: subordinates are not linked directly
subordinates can communicate with only a central supervisor coordination is difficult
Circle: communication moves in a circle
Each person can communicate with the 2 nearest neighbours only
Communication is slow
Free flow: Everyone is allowed to talk freely with others Communication is fast but
coordination is difficult Delay in decision making.

BARRIERS TO EFFECTIVE COMMUNICATION

What are the Barriers to Effective Communication? May 2011/
May2012/Dec2011/May 2014
Explain the different Barriers of communication? What steps can be taken to overcome
such barriers? May
2012/ Dec 2014
Hurdles in effective communication (or) Barriers of communication

Communication:
 It is the process of passing of information from one person to another person.
 It should always be clear and understood by the person who receives information.
Some problems may arise in its encoding and decoding or communication channel.

Effective communication:
If the message sent by the sender to the receiver is understood by the receiver in the same sense
is called as effective communication.
BARRIERS OF COMMUNICATION:

1. Physical barriers
 Already present in the environment
 some are controllable by the management and some are not
 The barriers are environment factors that reduce the sending and receiving of
communication.
 It includes physical distance, distracting noises and other interferences.

Noise
 Noise acts as a barrier when we are communicating in a factory premises
 The noise made by the machines acts as a barrier
Defects in the medium
 When two persons are communicating via a telephone line and there is disturbance in the
line then the receiver could not be able to get die proper message of the sender .it acts as the
barrier

Time and distance

 When two persons want to communicate and if the receiver do not have time to listen then it
acts as a barrier
 Too much of distance between the persons also act as a barrier

2. Semantic Barrier
 It refers to the relationship of signs, symbols, actions etc.,
 This will reach person's brain through any of the senses such as feeling or hearing.

The various semantic barriers are:

Language:

 Understanding of language is difficulty among many of them.

 Lack of common language
 For e.g a Telugu speaking employee and English speaking manager
 When two people communicating each other do not know a single common language,
the message will not be passed properly
 Poor vocabulary
 Poor knowledge of grammar and punctuation
Picture:
It is used as visual aids in communication. Eg., Charts, map
Gestures and Action :
Action is also known as non-verbal communication. It speaks louder than words. The people do
not listen to what he/she does.

3. Socio psychological barrier or personal barrier

 They are the attitude, emotions, sentiments and moods of the people Emotions: play an
important role, how we perceive the message
 For example the same message will be interpreted in a different manner when we are
angry or when we are calm mood as we see in day to day life
 Lack of self confidence: when there is distrust between sender and receiver of
communication the sender lacks confidence in delivering a message
 Bad listening: If the person cannot listen properly to the feedback given by the receiver
due to negativity going on mind we will not be able to communicate

Selective perception:
 We all perceive only that of which is our interest.
 For example depending on our past experience or background we will interpret only the
part of the message which is of our interest
Laziness:
 In an organisation sometimes a manager feels that message have been already passed or
spread. In that case they do not take action to formally pass the message
4. Mechanical Barrier:
 It includes inadequate arrangement for transmission of news, facts and figures, poor
layout, and defective procedure.

5. Organisational Barrier:
 Information flows based on downward communication through hierarchical structure in
organization. So, there may be chances of information being filtered. Poor supervision
also serves as communication barrier.

Status relationship:
 The person at a status have the power is not able to communicate properly with
subordinates.
 The subordinates feel scared to respond to superior
Lengthy process:
 In an organisation, there is a hierarchy of communication flow.
 If hierarchy is too lengthy it takes long time to reach from top to bottom

Making communication effective

 Sound Organization Structure
 Clear messages
 Two-way Communication
 Multiple Channels
 Good Listening
 Effective Control .
 Modern Instrument
 Human Relations attitude

Essentials of good communication system

 Clarity of messages
 Completeness of message
 Consistency of message
 proper timing
 Credibility
 Follow-up
 Economy

COMMUNICATION AND IT

Discuss how the communication through electronic media is helpful for effective business.
May 2016

Write short notes on Technological Advances 'in Communication

Electronic media in communication

• Internet
- Global system of computer networks that is easy to join and is used by employees to
communicate inside and outside their companies

• World Wide Web (WWW)

- "Business district" with multimedia capabilities
• Intranets
- A company-wide system of computer networks for information sharing by
employees inside the firm,
Advantages of intranets
 - Can be used for a number of different purposes by people who may have little
expertise in computer software and programming
• Groupware
Computer software that enables members of groups and teams to share information with each
other and improve communication
 Teleconferencing
A group of people interacting with each other by means of audio, video media with
moving or still pictures
• Video conferencing
 Electronic mail systems
 Voice mail systems
 Fax machine systems
 Cellular phone systems
 Whats app