Management

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Management



• Taylor’s scientifc management sought eciencyin job perormance.

• Administrative principles describe managerialduties and practices.

• Weber’s bureaucratic organization is supposed tobe ecient and air.

!A""#A! MA$A%&M&$T

"cientifc Management



• lassical approach – The term used to describe the

hypotheses o the scientifcmanagement theorists and the general

administrative theorists.• "cientifc management theorists

– 'redric( W. Taylor) 'ran( and !illian%ilbreth) and *enry %antt

• %eneral administrative theorists

– *enri +. 'ayol and Ma, Weber

lassical ontributions

• &mphasis is on-

a. rationality

b. ma(ing organizations and or(ers as ecient as possible.



"cientifc Management-The systematic study of the relationships

between people and tasks for the purpose ofredesigning the work process for higher

eciency .

Frederick W. Taylor – The /rinciples o "cientifc Management 012113

• Advocated the use o the scientifc method to defnethe 4one best ay5 or a job to be done

– 6elieved that increased eciency could be achieved byselecting the right people or the job and training themto do it precisely in the one best ay. 0specialization3

"cientifc Management



• Frederick W. Taylor – To motivate or(ers) he avored incentive

age plans.

– "eparated managerial or( rom operativeor(.

– Also (non as 4Taylorism5) an adaption studyin globalization. Taylor’s model being utilizedby frms around the orld.

Scientifc Management



Taylor’s Four Principles oManagement

1. 7evelop a 4science5 or each job8rules omotion) standard or( tools) proper or(conditions.

9. *ire or(ers ith the right abilities or the job.

:. Train and motivate or(ers to do their jobs according to the science.

;. "upport or(ers by planning and assistingtheir or( by the job science.



• Elements o Scientifc Management-

The techni<ues hich Taylor regarded asits essential elements or eatures are-

– "cientifc Tas( and +ate=setting) or(improvement) etc.

– /lanning the Tas(.

– >ocational "election and Training

– "tandardization 0o or(ing conditions)

material e<uipment etc.3 – "pecialization

– Mental +evolution.



The positive vie o Principles o scientifcmanagement descri!ed !y Taylor

• "cience) not the rule o thumb?

• *armony) not discord?

• o=operation) not individualism?

• Ma,imum output in place o restrictedoutput.

• &<ual division o responsibility

• The development o each man to hisgreatest eciency and prosperity.

• Mental revolution



/roblems o "cientifcManagement

/roblems o "cientifcManagement

• Managers oten implemented only theincreased output side o Taylor’s plan. – They did not allo or(ers to share in

increased output. – "pecialized jobs became very boring) dull. – Wor(ers ended up distrusting "cientifc

Management.

• Workers could purposely "under#perorm$

• Management responded ithincreased use o machines.



%riticism rom Employers

• &uge investment re'uired

• Sudden change may distur!e(isting orking arrangements

• )nsuita!le to small units• *enefts ater a long period

• &uge overhead e(penses re'uired



%riticism rom Workers and Trade)nions

– &eavy !urden on orkers

– +educes initiative among orkers

– Possi!ility o unemployment

– E(ploitation o orkers – Possi!le adverse e,ects on

orkers unity



*enefts - dvantages o Scientifc Management

1. Application and use o scientifc methods.

9. Wide scope or specialization and accurateplanning.

:. Minimum astages o materials) time andmoney.

;. ordial relations beteen or(ers andmanagement.

@. 6enefts to or(ers 0higher ages and less

burden o or(3) management 0costreduction) better <uality productions3 andconsumers 0superior goods at loerprices3



Frank and Lillian Gilbreth

refined Taylor’s methods and suggested –

1. Breaking down each action into individual components. – 2. Find better ways to perform the action. – 3. Reorganize each action to be more efficient. – 4. Eliminate wasteful activities.to be more productive.

• Taylor: What is a fair day’s or! for a fair day’ ages"

• Gilbreth: #o can a fair day’s or! be utilised in the most productivemanner"

How managers today apply scientifc management?

• Managers analyze basic or( tas( that must beperormed

= use time=and=motion study to eliminate asted motions.

= hire best=<ualifed or(ers or a job.

= designed incentive systems based on output.



• *enri 'ayol 0'rance3 – All #ndustrial activities classifed-

• Technical 0relating to production3

• ommercial 0buying) selling e,change3

• 'inancial 0search o apital and its optimum use3

• "ecurity 0o persons property3

• Accounting 0recording transactions3

• Managerial 0/lanning) Brganising) ommanding) oordinating ontrolling3

• 'ayol divided his approach o studyingmanagement into- – Managerial /ualities 0 Training

– Five Elements o Management 0'oyal3-

– Fourteen Principles o Management 1 'undamentalor universal principles o management practice

2eneral dministrative Theory



Managerial /ualities

– /hysical Cualities 0appearance) health)etc3

– Mental <ualities 0judgement)adaptability) etc3

– Moral Cualities 0frmness) initiative)loyalty) etc3

– &ducational Cualities 0generalac<uaintance ith bac(ground omanagement3

– Technical Cualities 0related to unctionsto be perormed3

– &,perience 0arising rom or( itsel3



Five Elements o Management 0'oyal3-

• To F3+E%ST to P45

• To 3+256SE

• To %3MM57• To %33+765TE

• To %35T+34



8. 7ivision o Work = "pecialization increases output by ma(ing employees moreecient.

9. uthority

= Managers must be able to give orders) and authoritygives them this right.

:. )nity o command

= &very employee should receive orders rom only one

superior.

;. )nity o direction

= Brganization have single plan o action to guide managers andor(ers.

&enri Fayol’s 8; Principles oManagement



<. 7iscipline= employees must obey and respect the rules that

govern the organization.

=. Su!ordination

= o individual interest to the general interest.

>. +emuneration

= or(ers must be paid a air age or their service.

?. %entrali@ation

= the degree to hich subordinates are involved indecision ma(ings.

Fayol’s Fourteen Principles oManagement



A. Scalar chain

= line o authority rom top management to loestran(

8B. 3rder

= people and materials should be in the right place atthe right time.

88. E'uity

= managers should be (ind and air to their

subordinates.

89. Sta!ility o tenure o personnel

= orderly personnel planning = human resource

management.





8:. 6nitiative

= employees alloed to originate and carry outplans that ill e,ert high levels o eDort.

8;. Espirit de corps

= promoting team spirit ill build harmony andunity ithin the organizations



Though they are diDerent rom one other they are dependent on each other. Enity o direction is a

prere<uisite or unity o command.

*asis )nity o command )nity o direction

Meaning #t implies that a sub=

ordinate should receive

orders instructions romonly one boss.

#t means one head) one plan

or a group o activities

having similar objectives.

5ature #t is related to the

unctioning o personnel’s.

#t is related to the unctioning

o departments) or

organization as a hole.

5ecessity #t is necessary or f,ing

responsibility o each

subordinates.

#t is necessary or sound

organization.

dvantage #t avoids conFicts)

conusion chaos.

#t avoids duplication o eDorts

and astage o resources.

+esult #t leads to better superior

sub=ordinate relationship.

#t leads to smooth running o

the enterprise.



%eneral Administrative TheoriesHow managers today apply GMT?• 'unctional vie o the manager’s job G 'ayol

• 'ayol 1; principle G rameor( or currentmanagement concepts.

• FET)+ES 3F P+65%6P4ES 3F M52EME5T

8.Principles o Management are Universal

9.Principles o Management are Flexible

:.Principles o Management have a ause ! "#ect$elations%ip

;.Principles o Management # &ims at 'n(uencingHuman )e%avior

<.Principles o Management are o "*ual 'mportance



Taylorism vs Fayolism

• 6oth attempted to overcome managerial problems in a

systematic manner• 6oth developed some principles hich can be applied to

solving managerial problems

• 6oth emphasized that management actions can be eDectivei they are based on sound management principles

• 6oth e,pressed that managerial <ualities can be ac<uiredthrough training and development

• 6oth emphasized harmonious relationship beteenmanagement and or(ers to achieve organizationalobjectives

• 6oth have advocated division o labour and specialisation

*asis Ta lor Fa ol



*asis Taylor Fayol

&uman aspect Taylor disregards human

elements and there is more

stress on improving men)

materials and methods

'ayol pays due regards

on human element. &.g.

/rinciple o initiative)

&spirit 7e’ orps and

&<uity recognizes a need

or human relations

Status 'ather o scientifc

management

'ather o management

principles

ECciency 0administration

"tressed on eciency "tressed on generaladministration

pproach #t has micro=approach

because it is restricted to

actory only

#t has macro=approach

and discuses general

principles o

management hich are

applicable in every feld

o management.

Scope o

principles

These principles are restricted

to production activities

These are applicable in

all (inds o organization

regarding their

management aDairs



Taylorism FayolismEmployees perormance vs Management perormanceTaylor’s Scientifc Management ocuses

more on the perormance o the orker

'ayol’s principles o management place

more emphasis on the perormance o

managementpproach

Taylor olloed !ottom#upardapproachD as he mainly ocused on

shop and actory management

'ayol olloed top=don approach as hismain ocus as on unctions and <ualities o

managerspplica!ilityTaylor’s principles and techni'ues have

narro applica!ility. They are ocussed

on production units.

'ayol put orth general principles o

management hich can be applied to any

type o organization or activity

5atureTaylor’s techni'ues are more specifc

and rigid

'ayol’s techni<ues are general and Fe,ible

in naturePopularityTaylor is popularly knon as the ather

o Scientifc management

'ayol is popularly (non as the ather o

'unctional ManagementMechanistic vs &umanistic approach1Taylor’s approach is mechanistic as he

mainly emphasi@es increase in

productivity and eCciency

'ayol’s approach is humanistic as he

considers human elements li(e e<uity)

stability o tenure) unity etc.6ndividual vs 2roup perormanceTaylor’s scientifc management gives

more importance to the individual

perormance

'ayol’s unctional management gives more

stress on group perormance o managers

Functional oremanship vs Principle o )nity o %ommand

Taylor introduced the concept o

unctional oremanshi D here!

'ayol strongly advocates the principle o

4Enit o ommand5 i.e.) one subordinate



Planning

• /lanning is undamental unction omanagement G preceding all otherunctions o management .

• To %overn is to oresee. /rocess throughhich a manager loo(s into the uture.

• Though uture is uncertain) planning

helps instead o leaving things to chance.• #t involves developing goals) strategies)policies) procedures and programmes



4Planning is deciding in advance hat to do)

ho to do it) hen to do it and ho is to do it./lanning bridges the gap rom here e are to

here e ant to go.5+ ,oont- and ./0onnell

"Planning is a continuous process o ma(ing

present entrepreneurial decisions systematically)ith best possible (noledge o their uturity and

organising systematically the eDorts needed tocarry out these decisions and measuring theresults o these decisions against thee,pectations through organised) systematic

eedbac(.5 + George Terry



/lanning

• #s goal=oriented

• #s uture=oriented

• #s the primary unction

• #s an intellectual process• #s all=pervasive

• #s both short range and long range

• #s ontinuous

• #s actionable• #s Fe,ible

• #s an integrated system



&""&$T#A!" B' "BE$7 /!A$$#$%

• /lan should be easy to understand and e,ecute

• Must be based on clear=cut objectives

• Must be suitable to the needs o an organization

• Must be comprehensive and integrated

• Must be Fe,ible

• "hould be based on rational orecast

• "hould be consistent ith the environment

• Must be realistic and not idealistic

• Must be ecient and economical

• "hould be time bound

• Must in employee’s avour and confdence



$&&7 #M/B+TA$& B' /!A$$#$%-

• /lanning is complimentary to all management unctions

• #t helps management to ace the uture ith confdence

• #t ocuses its attention on objectives

• #t leads to optimum utilization o resources

• #t increases overall eciency

• #t provides premises or eDective control

• #t guides decision ma(ing

• #t acilitates coordination

• #t helps in perormance evaluation• #t ma(es provisions or contingencies



!#M#TAT#B$" B' /!A$$#$%-

– &goistic planning

– Wastage o resources

– &,pensive

– !imits individual reedom

– $ot an end – 7ynamic environment

– $on=availability o authentic and accurate data

– Ensuitable or small units

– Time consuming – 7elayed action due to deliberation

– +apidly changing business environment H unrealistictargets



BM/B$&$T" B' /!A$$#$%-

• "tanding /lans- – Mission-

– Bbjectives-

– "trategies-

– /olicies-

– /rocedures-

– +ules-



"ingle use plans-$ /rogrammes

$ 6udget

$ "chedule

$ 'orecast

$ /roject



7&#"#B$=MAI#$%

• 7ecision=ma(ing is a conscious human

process involving both individual and socialphenomenon) based upon actual and valuepremises) hich concludes ith a choice o onebehavioural activity rom among to or morealternatives ith the intention o moving toards

some desired state o aDairs. G "hull

• 7ecision=ma(ing is the selection based onsome criteria rom to or more possible

alternatives G %eorge Terry



/+B&"" B' 7&#"#B$=MAI#$%

– #dentifcation o a problem

– 7iagnosing the problem

– Analysis o the problem

– ollecting inormation

– #dentiying alternate courses o action

– &valuation o alternatives

– hoice o best alternative – onversion o decision into action

– /rogressive revie

3+256ST635



3+256ST63543rganising involves grouping o activities necessary to

accomplish goals and plans) the assignment o these

activities to the appropriate departments and theprovisions or authority delegation and coordination.’ G,oont- and ./0onnell

"3rganising is the process o identiying and grouping

the or( to be perormed) defning and delegatingresponsibility and authority and establishing relationshipsor the purpose o enabling the people to or( most

eDectively together in accomplishing objectives.5 1ouis & &llen

• The term organisation is used in to senses- – Brganisation as a process

–Brganisation as a structure



The !ogic o Brganizing /rocess

Enterprise

3!ectives

Supporting

o!ectivesD

policies0 plans

6dentifcation0

classifcationo re'uiredactivities

2rouping oactivities in

light oresources

andsituations

7elegation o

authority

&ori@ontal 0 verticalcoordination o

authority 0inormation

relationships

1. &stablishing enterprise objectives9. 'ormulating supporting objectives) policies andplans

:. #dentiying and classiying the activitiesnecessary to accomplish these objectives

;. %rouping these activities in the light o thehuman and material resources available and thebest ay) under the circumstances) o usingthem

@. 7elegating to the head o each group theauthority necessary to perorm the activities

J. Tying the groups together horizontally andvertically) through authority relationships andinormation Fos



5ature 0 %haracteristics o 3rganisation

• Brganizing is the basic unction omanagement

• Brganizing is alays related toobjectives

• Brganizing is an entity

• Brganizing as a group o people

• Brganizing as a process

• Brganizing as a structure



#mportance o Brganisation

– Brganization promotes specializationand division o labour

– #t avoids ommissions) overlapping andduplication o eDorts

– #t clarifes authority=responsibilityrelationships

– #t acilitates stang

– #t acilitates coordination – #t establishes communication lin(s

– #t increases eciency o management



#mportance o Brganisation 0contd.3

– #t acilitates management by e,ception

– &Dective location o responsibility

– Cuic( achievement o organizational

goals – Cuic( decision ma(ing

– /rovides acility or training) testing and

development – /revents groth o intrigues andcorruption

/+#$#/!&" B'



/+#$#/!&" B'B+%A$#"AT#B$

1. /rinciple o delegation o authority

9. /rinciple o coordination

:. /rinciple o continuity

;. /rinciple o defnition

@. /rinciple o e,planation



J. /rinciple o e<uilibriumbalance

K. /rinciple o Fe,ibility

L. /rinciple o unity o objectives

2. /rinciple o responsibility

1. /rinciple o specialization



11./rinciple o span o control

19./rinciple o scalar chain

1:./rinciple o simplicity andhomogeneity

1;./rinciple o unity o command

1@./rinciple o unity o direction



1J./rinciple o uniormity

1K./rinciple o eciency

1L./rinciple o leadership

12./rinciple o e,ception

9./rinciple o joint decision



Authority

Authority may be defned as the poer to ma(e

decisions hich guide the actions o another..

%haracteristics o uthority1

aG uthority is a legitimate right to command

0 control su!ordinates

!G uthority is granted to achieve thecherished goals o the enterprise

cG uthority is a right to direct others to get

things done

dG uthority is a commanding orce !indingindividuals together

eG uthority is delegated donards.



+esponsibility

+esponsibility may be defned as the obligation o a

subordinate to hom a duty has been assigned toperorm.

%haracteristics o +esponsi!ility1

a3 +esponsibility is to assign duty to human beingsonly.

b3 +esponsibility is the result o duty assigned to ahuman being

c3 +esponsibility is the obligation to complete theassigned tas(

d3 +esponsibility can never be delegated

e3 +esponsibility alays Fos upard rom juniors toseniors

+ l ti hi b t A th it d



+elationship beteen Authority and+esponsibility

a3 /arity in authority and responsibility

b3 Authority and responsibility Fo inopposite direction

c3 +esponsibility cannot be delegated



Elements o 3rganisation

– 7efning responsibility

– 7elegating Authority) and

– &stablishing relationships beteen

authority and responsibility

Three signicant elements of organising:

1. Line authority 2. Sta authority

!. "unctional authority

3



• 465E )T&3+6TH • 4ine authority Ios don the chain o

command.

• STFF )T&3+6TH • Sta, authority is the right to advise or

counsel those ith line authority.

• Functional uthority• Functional authority o sta,

departments to control the activities oother departments.

• 4ine and Sta,



%ormal &tructure



'nformal &tructure

• 'nformal &tructure – (nofficial but important or!ing relationships

beteen members.

Types o 6nternal 3rganisation



Types o 6nternal 3rganisation

1. 'ormal Brganisation

9. #normal BrganisationFeatures o Formal

3rganisation

Features o 6normal

3rganisation6t is the result o deli!erate

managerial planning

#normal organisations do not

appear on the ormal chart o the

enterprise6t is !ased on the principle o

division o la!our and

specialisation

#normal organisations are based

on personal attitudes) li(es and

disli(es) understanding) customs)

traditions) etc.6t is !ased on the activities to !e

perormed and not on the

individuals ho perorm such

activities

#normal organization e,ists at all

levels o organization rom top to

bottom

6t is ormally proclaimed !y the

top management and henceD

shon on the organi@ation

Although) there is no specifc

channel o communication)

inormal channel is much more



'nformal &tructure

• 'nformal &tructures have good andbad points – &ocial netor! analysis identifies

communication relationships – )ood points include problem solving*support* friendship and fill gaps in theformal structure

– +ad points include rumors* inaccurateinformation and resistance to change



,rgani-ational harts

What /ou an 0earn from an ,rgani-ation hart

• /ositions and titles sho or(responsibilities.

7ivision o or(

• !ines beteen positions sho ho reports to hom

in the chain o command.

"upervisory

relationships

• The number o persons reporting to a supervisor."pan o control

• !ines beteen positions sho routes or ormalcommunication Fos.

ommunicationchannels

• Which job titles are grouped together in or( units)departments) or divisions.Major subunits

• "taD specialists that support other positions andparts o the organization."taD positions

• The number o management layers rom top tobottom.

!evels o

management



ommon Types of &tructures

• %unctional structures group together people

using similar s!ills

• ivisional structures group together people

by products* customers or locations

• atri structures combine the functional

and divisional structures

• Team structures use many permanent andtemporary teams

• etor! structures etensively use

strategic alliances and outsourcing



• 7epartmentation enables an organizationto avail the benefts o specialisation.When every department loo(s ater one

major unction) e,pertise is developed andeciency o operation increases.

– &,pansion

– 'i,ation o responsibilities

– Appraisal

– Administrative control



7epartmentalization

• 'unctional departmentation-

• /roduct departmentation

• Territorial departmentation

• ustomer departmentation

• /rocess or e<uipmentdepartmentation

• Matri, organisation



,, ,5)6'76T',60 &T5(T(58&

Functional Structures

ommon functional structure

'unctional Brganisation grouping



'unctional Brganisation grouping

7J5T2ES 76S7J5T2ES

6s logical reIection o

unctions

7eemphasis o overall company

objectivesMaintains poer 0 prestige

o maor unctions

Bverspecializes and narros

viepoints o (ey personnel

Follos principle o

occupational speciali@ation

+educes coordination beteen

unctions

Simplifes training +esponsibility or profts is at the

top only

Furnishes means or tight

control at the top

"lo adaptation to changes in

environment

!imits development o generalmana ers



ivisional &tructures

ommon divisional structures



Product 3rgnisation grouping7J5T2ES 7#"A7>A$TA%&"

Places attention and e,ort onproduct line

+e<uires more persons ithgeneral managerial abilities

Facilitates use o speciali@ed capitalD

acilitiesD skills and knoledge

Tends to ma(e maintenance o

economical central services

dicultPermits groth and diversity o

products and services

/resents #ncreased problem o

top management control6mproves coordination o unctional

activities

Places responsi!ility or profts at

the division level

Furnishes measura!le traininground or eneral mana ers

Territorial or 2eographic 3rgnisation grouping



Territorial or 2eographic 3rgnisation grouping7J5T2ES 7#"A7>A$TA%&"

Places responsi!ility at

loer level

+e<uires more persons ith general

managerial abilitiesPlaces emphasis on local

markets and pro!lems

Tends to ma(e maintenance o

economical central services dicult and

may re<uire services such as personnel or

purchasis at the regional level6mproves coordination in

the region

#ncreases problem o top management

control

Takes advantage o

economies o local

operations

*etter ace#to#ace

communication ith local

interests

Furnishes measura!le

training ground or

general managers



%ustomer 7epartmentation

7J5T2ES 7#"A7>A$TA%&"

Encourages concentration o

customer needs

May be dicult to coordinate

operations beteen competing

customer demands2ives customers a eeling

that they have an

understanding supplier

+e<uires managers and staD

ith e,pertise in customers

problems7evelops e(pertise in

customer area

ustomer groups may not

alays be clearly defned



Process 3rgnisation grouping7J5T2ES 7#"A7>A$TA%&"

chieves economic

advantage

oordination o

departments is

dicult)ses speciali@ed

technology

+esponsibility or

proft is at the top)tili@es special

skills

#s unsuitable or

developing general

managers



atri &tructures

atri &tructures combine functional and

divisional structures• uses permanent cross functional teams to try

to gain the advantages of both the functionaland divisional approaches



atri &tructures



Matri( 3rgnisation7J5T2ES 7#"A7>A$TA%&"

6s oriented toards

end results

onFict in organization

authority e,ists

Proessionalidentifcation is

maintained

/ossibility o disunity ocommand e,ists

Pinpoints product#

proft responsi!ility

+e<uires manager

eDective in human

relations



Team &tructures

Team &tructures• a!e use of permanent and temporary cross

functional teams

• 'mproved problem solving and pro9ectmanagement

,, ,5)6'76T',60 &T5(T(58&



,, ,5)6'76T',60 &T5(T(58&

Team &tructures

Team structure eample

,, ,5)6'76T',60 &T5(T(58&



,, ,5)6'76T',60 &T5(T(58&

Team &tructures

:ossible advantages of Team structures• Team assignments improve communication*

cooperation* and decision;ma!ing.

• Team members get to !no each other aspersons* not 9ust 9ob titles.

• Team memberships boost morale* andincrease enthusiasm and tas! involvement.



M3T6JT635

MotivationMotivation



MotivationMotivation

• 7efned as the psychological orces ithina person that determine-

13 direction o behavior in an organization?93 the eDort or ho hard people or(?

:3 the persistence displayed in meeting goals.

– 'ntrinsic Motivation: behavior perormedor its on sa(e.

• Motivation comes rom perorming the or(.

– "xtrinsic Motivation: behavior perormedto ac<uire reards.

• Motivation source is the conse<uence o an action.

The psychological processes that arouse anddirect goal=directed behavior

The set o orces that cause people to behave incertain ays



Butcomes #nputsButcomes #nputs

– +egardless o the source o motivation)people see( outcomes.• .utcome2 anything a person gets rom a job.

– &,amples include pay) autonomy) accomplishment.

– Brganizations hire or(ers to obtaininputs-• 'nput 1 anything a person contributes to their job.

– &,amples include s(ills) (noledge) or( behavior. – Managers thus use outcomes to motivate

or(ers to provide inputs.$eed =O Motive =O 6ehaviour =O onse<uence =O "atisaction H7issatisaction



Motivation &<uationMotivation &<uation

6nputs rom3rgani@ational

mem!ers

6nputs rom3rgani@ational

mem!ersPerormancePerormance

3utcomesreceived !y

mem!ers

3utcomesreceived !ymem!ers

TimeE,ort

EducationE(perience

SkillsLnoledge

Work *ehav.

TimeE,ort

EducationE(perience

SkillsLnoledge

Work *ehav.

%ontri!ute toorgani@ation

eCciencyDe,ectiveness

andattain goals

%ontri!ute toorgani@ation

eCciencyDe,ectiveness

andattain goals

Pay o! Security

*eneftsJacation

utonomy+esponsi!ility

Pay o! Security

*eneftsJacation

utonomy+esponsi!ility



&ierarchy o 5eeds Theory1

Abraham Maslow hypothesized that withinevery human beingthere exists a hierarchy of five needs:

1. Physiological.2. afety.!. ocial.". #steem.

$. elf%actualization.

&ierarchy o 5eeds



Sel#ctuali@ation

Esteem

Social

Saety

Physiological

&ierarchy o 5eeds

Theory

Self-Development & Realisation.

,ffer training* creativity* promotions*

employee control over 9obs

Self-esteem reco!nition status" ,ffer recognition* status* challenges* merit pay*

employee participation in ma!ing decisions

Sense of belon!in! love# ,ffer interaction ith

others* participation in or!group* good relations ith

supervisors

Security protection# ,ffer safe or!ing conditions* 9ob security*health and retirement benefits

$un!er thirst#"",ffer ade<uate ventilation* heat* ater* base pay



*ierarchy o $eeds*ierarchy o $eeds

Sel#ctuali@ation

Sel#ctuali@ation

+eali@e one’s ull potential

+eali@e one’s ull potential

)se a!ilitiesto the ullest

)se a!ilitiesto the ullest

EsteemEsteem Feel gooda!out onesel

Feel gooda!out onesel

Promotions 0 recognition

Promotions 0 recognition

*elongingness*elongingness SocialinteractionD love

SocialinteractionD love

6nterpersonalrelationsD parties

6nterpersonalrelationsD parties

Saety

Saety

SecurityD sta!ilitySecurityD sta!ility o! securityD

health insurance

o! securityD

health insurance

PhysiologicalPhysiological FoodD aterDshelter

FoodD aterDshelter

*asic pay levelto !uy items

*asic pay levelto !uy items

5eed 4evel 7escription E(amples

4oer level needs must !e satisfed !eore higherneeds are addressed.



Maslow then categorized these $ needs into

lower%order needs and higher%order needs.

&ower%order needs are needs that aresatisfied externally: physiological and safety

needs.

'igher%order needs are needs that aresatisfied internally (within the person):social* esteem* and self%actualization

needs.

Theory P and Theory Q o 7ouglas Mc%regor-



7ouglas Mc%regor 012@K3 developed aphilosophical vie o human(ind ith his Theory

P and Theory Q 8 to opposing perceptionsabout ho people vie human behavior at or(and organizational lie.

Mc+regor concluded that a manager,s view of thenature of human beings is based on a certaingrouping of assumptions and that he or she tends tomold his or her behavior toward subordinatesaccording to these assumptions:



Theory P and Theory Q-Theory N

• &mployees inherently disli(eor( and) henever possible)ill attempt to avoid it?

• "ince employees disli(e or()they must be coerced)controlled) or threatened ith

punishment to achieve goals?• &mployees ill avoid

responsibilities and see(ormal direction heneverpossible.

• Most or(ers place securityabove all other actorsassociated ith or( and illdisplay little ambition.

Theory H

• &mployees can vie or( as being asnatural as rest or play? *umans donotdisli(e or( G given meaningul or()they ill try hard to achieve.

• "atisfed /eople ill e,ercise sel=direction and sel=control i they arecommitted to the objectives? &,ternal

control threat o punishment arenot the only means to bring abouteDorts.

• ommitment depends on reardsassociated ith achievement. Mostimportant reard being those thatsatisy need o sel=respect personal

improvement.• The average person can learn to

accept) even see() responsibility?

• The ability to ma(e innovativedecisions is idely dispersedthroughout the population and is notnecessarily the sole province o those

in management positions.

Theory P Theory Q



Theory P Theory Q

• #n an organization ith Theory Q assumptions)managementRs role is to develop the potentialin employees and help them to release thatpotential toards common goals.

• Theory P is the vie that traditionalmanagement has ta(en toards the or(orce.Most organizations are no ta(ing theenlightened vie o theory Q 0even though

they might not be very good at it3. A boss canbe vieed as ta(ing the theory P approach)hile a leader ta(es the theory Q approach.

*erzberg’s To='actor Theory



g y

To#actor Theory proposed that or( satisaction and

dissatisaction arise rom to diDerent actors8*ygiene and

Motivating.*ygiene or maintenance actors must be present in the job beore

motivators can be used to stimulate a person. That is) you cannot usemotivators until all the hygiene actors are met. *erzbergRs needs arespecifcally job related and reFect some o the distinct things thatpeople ant rom their or( as opposed to MasloRs *ierarchy o

$eeds hich reFect all the needs in a personRs lie.6uilding on this model) *erzberg coined the term #ob enrichment 8 the

process o redesigning or( in order to build in motivators byincreasing both the number o tas(s that an employee perorms andthe control over those tas(s. #t is associated ith the design o jobsand is an e,tension o job enlargement 0an increase in the number o

tas(s that an employee perorms3.

E(trinsic FactorO&ygiene3

is the payoD) such as moneya person receives rom

others or doing a particular

6ntrinsic Factor 0Motivating3 isthe satisaction) such as theeeling o accomplishment) aperson receives rom perorming

the particular tas( itsel



Motivation=*ygiene Theory-

According to 'erzberg* the factors leading to -obsatisfaction are separate and distinct from thosethat lead to -ob dissatisfaction.

'ygiene factors include factors such as: companypolicy and administration* supervision* interpersonalrelations* woring conditions* and salary.

Motivator factors include factors such as:achievement* recognition* the wor itself*responsibility and growth.



To='actor Theory

• *ygiene 'actors – ompany policy and

administration?

– "upervision?

– +elationship ithsupervisor?

– Wor( conditions?

– "alary?

– +elationship ith peers?

– /ersonal lie?

– +elationship ithsubordinates?

– "tatus?

– "ecurity

• Motivator 'actors-

– Achievement – +ecognition?

– Wor( itsel?

– +esponsibility?

– Advancement?

–%roth

Mclelland’s $eeds Theory



Mclelland s $eeds Theory

5eed or Cliation

basic human need to establish and maintain arm)close) intimate relationships ith other people

5eed or Poer

basic human need to ma(e an impact on others) inFuenceothers) change people or events) and ma(e a diDerence in

lie

5eed or chievement

a basic human need that concerns issues o

e,cellence) competition) challenging goals)persistence) and overcoming diculties

c'uired#5eeds Theory states that three needs8

achievement) aliation) and poer = are major motivesdetermining people’s behavior in the or(place



The need or achievement is the desire to accomplish a tas( orgoal more eDectively than in the past.

haracteristics-

Tend to Set Moderately 7iCcult 2oals and MakeModerately +isky 7ecisions

&ave a Preoccupation With Work

Want 6mmediateD Specifc Feed!ack on Their

Perormance

ssume Personal +esponsi!ility or 2etting Things7one

Th $ d Ali ti



The $eed or Aliation

• The need or human companionship.• #ndividuals ith a high need or

aliation tend to ant reassurance

and approval rom others and usuallyare genuinely concerned aboutothers’ eelings.

• /eople ith a high need or aliationoten or( in jobs ith a lot ointerpersonal contact.

Th $ d /



The $eed or /oer

• The desire to control the resources in one’senvironment. – Degree of control a person desires over his / her situation

– Related to how people deal with failure and success.

Motivators- 'ear o ailure H *ope o "uccess

• /eople ith a high need or poer can besuccessul managers i three conditions are met- – They must see( poer or the betterment o the organization rather

than or their on interests

– They must have a airly lo need or aliation 0ulflling a personalneed or poer may ell alienate others in the or(place3.

– They need plenty o sel=control to curb their desire or poer henit threatens to interere ith eDective organizational or interpersonal

relationships.

6ndications o Motivation and



6ndications o Motivation and7emotivation

Who can !e considered a motivated orkerS• Bne ho ants to come to or( and or(s illingly

• When at or( he gives his best

• *e has a defnite sense o belonging and pride in the organisation andin the improvement o management eDectiveness.

Some common indications o demotivation1

• #ncreasing absenteeism among employees and e,cessive labourturnover

• !o output and productivity

• An increasing rate o accidents and astage o ra material

• +an( indiscipline

• 'rustration and unrest in the or( orce• 7efant and violent behaviour o or(ers at or outside the or(place)

and re<uent conrontation or argument ith supervisors and managers

• $on=cooperation) stri(es) gheraos) abusive and violent demonstrations.

Some Motives 0 Motive 6ndicators



Some Motives 0 Motive 6ndicatorsM3T6JE ME5652 *E&J63)+ 6576%T3+

Persons dominated !y this motive

are generally

chievement

oncern or e,cellence)desire o the person to

meet a particular standard

o e,cellence

Active) *ardor(ing) "et high goals) ta(echallenging tas(s) derive pleasure in doing

dicult things and loo( or <uality. "el=set

standards.

Cliation oncern or establishing or

maintaining arm and

aDectionate relations ith

others

Want close relationships ith people and also

establish emotional relationships. They join

groups) invite people) develop attachments

and eel depressed in case o separation odear ones. lub membership) re<uent social

parties) organised riendship circles are

indicators

Poer 7esire to inFuence others

and gain control over others

or to be superiors to others.

#n positions here they can lead) inFuence or

control others. They see( opportunities or

leadership. Argumentative) alays anting to

be the frst) enjoying) giving directions toothers.

E(tension 7esire to be helpul to

others or to provide one’s

service to organisation

nation or any e,ternal

agent.

Are good social or(ers. They enjoy helping

others and loo( or opportunities here they

can be o help. They join social service

organisations and probably maintain good

interpersonal relations.



M3T6JE ME5652 *E&J63)+ 6576%T3+Persons dominated !y this motive

are generallyggressio

n

$eed to dominate

others and to

demonstrate one’s

on strength) at times

even physically

Are argumentative) tal(s loud) they may get

into physical fghts and ant alays to in

or sho their strength.

7ependen

ce

$eed to consult others

beore ma(ing any

decision. This mayarise out o insecurity.

Will alays loo( or directions rom others)

cannot ma(e any independent decisions)

ant to be protected by someone and lac(initiative.

6ndepende

nce

Bpposite o

dependence) a desire

to do things

individually and to be

one’s on sel.

!i(e to ma(e decisions on their on ithout

see(ing anyone’s approval. They preer to

have reedom and disli(e intererence rom

outsiders including superiors. They may

consult others) but do not see( approval.Security $eed to be secure

about one’s on living

and to be sure one

continues to have it.

&,press it by their rustration at lac( o job

security) economic security etc. They may

grumble about the job) save money or the

uture etc. This is a very important need and

i many employees have this as a high need)

the organisation policies are orth loo(ing

at.



M3T6JE ME5652 *E&J63)+ 6576%T3+

/ersons dominated by this motive

are generallyStatus and

Prestige

7esire to be

respected and

treated ith

deerence specially

by others in the

social environment.

Would not violate social norms or ould

do so only hen they get recognition

positively. They run or oces) they li(e to

sho authoritarian tendencies hen they

or( ith others. They may be

categorising people into status groups and

interacting ith them selectively anddiDerentially.

+ecognition $eed to be

recognised or

one’s

accomplishment

Wor( hard but lose their motivation

completely i their or( is not recognised

immediately. They try to ma(e their

presence elt and strive to get attention.

This is another basic need in all o us.

ctivity 7esire to be

constantly doing

things

#s alays active) a hard or(er and is

constantly engaged in some activity. The

opposite is passivity hich is also a need

to rela, and not to be disturbed.

!eadership



!eadership

Types o !eadership-

• Autocratic leadership.

• 6ureaucratic leadership.

• 7emocraticleadership or participative leadership.

• !aissez=aire leadership.

• harismatic leadership.

utocratic leadership style1

http://www.vectorstudy.com/management_topics/autocratic_leadership.htm

http://www.vectorstudy.com/management_topics/bureaucratic_leadership.htm

http://www.vectorstudy.com/management_topics/democratic_leadership.htm


http://www.vectorstudy.com/management_topics/laissez_faire_leadership.htm

http://www.vectorstudy.com/management_topics/laissez_faire_leadership.htm



http://www.vectorstudy.com/management_topics/bureaucratic_leadership.htm

http://www.vectorstudy.com/management_topics/autocratic_leadership.htm



#n this style o leadership) a leader has complete command and hold over theiremployeesHteam. The team cannot put orard their vies even i they are best orthe team’s or organizational interests. They cannot criticize or <uestion the leader’say o getting things done. The leader himsel gets the things done. The advantage

o this style is that it leads to speedy decision=ma(ing and greater productivity underleader’s supervision. 7rabac(s o this leadership style are that it leads to greateremployee absenteeism and turnover. This leadership style or(s only hen theleader is the best in perorming or hen the job is monotonous) uns(illed and routinein nature or here the project is short=term and ris(y.

utocratic leaders1

• ==+ely on threats and punishment to inFuence employees

• ==7o not trust employees

• ==7o not allo or employee input

HetD autocratic leadership is not all !ad. Sometimes it is the most e,ectivestyle to use. These situations can include1

• ==$e) untrained employees ho do not (no hich tas(s to perorm or hichprocedures to ollo

• ==&Dective supervision can be provided only through detailed orders andinstructions

• ==&mployees do not respond to any other leadership style

• ==There are high=volume production needs on a daily basis

• ==There is limited time in hich to ma(e a decision

• ==A managerRs poer is challenged by an employee

*ureaucratic leadership1



*ere the leaders strictly adhere to the organizational rules and policies.Also) they ma(e sure that the employeesHteam also strictly ollos therules and procedures. /romotions ta(e place on the basis o employees’

ability to adhere to organizational rules. This leadership style graduallydevelops over time. This leadership style is more suitable hen sae or(conditions and <uality are re<uired. 6ut this leadership style discouragescreativity and does not ma(e employees sel=contented.

This style can !e e,ective hen1

• ==&mployees are perorming routine tas(s over and over.

• ==&mployees need to understand certain standards or procedures.• ==&mployees are or(ing ith dangerous or delicate e<uipment that

re<uires a defnite set o procedures to operate.

• =="aety or security training is being conducted.

• ==&mployees are perorming tas(s that re<uire handling cash.

• This style is ineDective hen-

• ==Wor( habits orm that are hard to brea() especially i they are nolonger useul.

• ==&mployees lose their interest in their jobs and in their ello or(ers.

• ==&mployees do only hat is e,pected o them and no more.

7emocrative-Participative leadership style1

The leaders invite and encourage the team members to play an



The leaders invite and encourage the team members to play animportant role in decision=ma(ing process) though the ultimatedecision=ma(ing poer rests ith the leader. The leader guides theemployees on hat to perorm and ho to perorm) hile theemployees communicate to the leader their e,perience and thesuggestions i any. The advantages o this leadership style are thatit leads to satisfed) motivated and more s(illed employees. #t leadsto an optimistic or( environment and also encourages creativity. This leadership style has the only drabac( that it is time=

consuming. Typically the democratic leader-

• ==7evelops plans to help employees evaluate their onperormance

• ==Allos employees to establish goals

• ==&ncourages employees to gro on the job and be promoted• ==+ecognizes and encourages achievement.

• !i(e the other styles) the democratic style is not alaysappropriate. #t is most successul hen used ith highly s(illed ore,perienced employees or hen implementing operational

changes or resolving individual or group problems

The 4aisse@ Faire



4eadership Style1*ere) the leader totally trusts theiremployeesHteam to perorm the jobthemselves. *e just concentrates on theintellectualHrational aspect o his or( and

does not ocus on the management aspect ohis or(. The teamHemployees are elcomed

to share their vies and provide suggestionshich are best or organizational interests. This

leadership style or(s only hen theemployees are s(illed) loyal) e,perienced andintellectual.



• !eadership is a process by hich an e,ecutive can direct)guide and inFuence the behavior and or( o otherstoards accomplishment o specifc goals in a givensituation. !eadership is the ability o a manager to inducethe subordinates to or( ith confdence and zeal.

• !eadership is the potential to inFuence behaviour o others.#t is also defned as the capacity to inFuence a grouptoards the realization o a goal. !eaders are re<uired todevelop uture visions) and to motivate the organizationalmembers to ant to achieve the visions.

• According to Ieith 7avis) 4!eadership is the ability topersuade others to see( defned objectives enthusiastically.#t is the human actor hich binds a group together andmotivates it toards goals.5

%haracteristics o 4eadership:.Providing guidance# A leader has to not only

supervise but also play a guiding role or the



•#t is a inter=personal process in hich amanager is into inFuencing and guidingor(ers toards attainment o goals.

•#t denotes a e <ualities to be present in a

person hich includes intelligence) maturityand personality.

•#t is a group process. #t involves to or morepeople interacting ith each other.

•A leader is involved in shaping and mouldingthe behaviour o the group toardsaccomplishment o organizational goals.

•!eadership is situation bound. There is no

best style o leadership. #t all depends upontac(ling ith the situations.

The olloing points justiy the importance o

leadership in a concern.

8.6nitiates action# !eader is a person ho starts theor( by communicating the policies and plans to

the subordinates rom here the or( actuallystarts.

9.Motivation# A leader proves to be playing anincentive role in the concern’s or(ing. *emotivates the employees ith economic and non=

economic reards and thereby gets the or( romthe subordinates.

supervise but also play a guiding role or thesubordinates. %uidance here means instructing thesubordinates the ay they have to perorm their

or( eDectively and eciently.

;.%reating confdence# onfdence is an importantactor hich can be achieved through e,pressing

the or( eDorts to the subordinates) e,plainingthem clearly their role and giving them guidelines toachieve the goals eDectively. #t is also important to

hear the employees ith regards to their complaintsand problems.

<.*uilding morale# Morale denotes illing co=operation o the employees toards their or( and

getting them into confdence and inning their

trust. A leader can be a morale booster by achieving

ull co=operation so that they perorm ith best otheir abilities as they or( to achieve goals.

=.*uilds ork environment# Management is getting

things done rom people. An ecient or(environment helps in sound and stable groth. Thereore) human relations should be (ept into mind

by a leader. *e should have personal contacts ithemployees and should listen to their problems and

solve them. *e should treat employees on

humanitarian terms.>.%o#ordination# o=ordination can be achievedthrough reconciling personal interests ith

organizational goals. This synchronization can beachieved through proper and eDective co=ordinationhich should be primary motive o a leader.

*asis Manager 4eader

3riginA person becomes a manager by virtue o

hi iti

A person becomes a leader on basis o

hi l liti



ghis position. his personal <ualities.

Formal +ightsManager has got ormal rights in an

organization because o his status.+ights are not available to a leader.

Folloers

The subordinates are the olloers o

managers.

The group o employees hom the

leaders leads are his olloers.

FunctionsA manager perorms all fve unctions o

management.

!eader inFuences people to or(

illingly or group objectives.

5ecessity A manager is very essential to a concern.

A leader is re<uired to create cordial

relation beteen person or(ing in

and or organization.

Sta!ility #t is more stable. !eadership is temporary.Mutual +elationship All managers are leaders. All leaders are not managers.

ccounta!ilityManager is accountable or sel and

subordinates behaviour and perormance.

!eaders have no ell defned

accountability.

%oncernA manager’s concern is organizational

goals.

A leader’s concern is group goals and

member’s satisaction.

Folloers

/eople ollo manager by virtue o job

description. /eople ollo them on voluntary basis.

+ole continuation

A manager can continue in oce till he

perorms his duties satisactorily in

congruence ith organizational goals.

A leader can maintain his position only

through day to day ishes o olloers.

Management

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