assignment principle of management

PRINCIPLE OF MANAGEMENT

EMBA Program

DISTANCE LEARNING ASSIGNMENT


Quarter: Winter 2015 , Deadline for Submission of Assignment: February 5, 2015

Attempt all questions given below. Your answers should not be copied, word-for-word, from the textbook. You may use the terms, concepts, examples from the textbook, but these must be written as your own, independent expression.

1. Define Management and explain basic management functions.

2. Describe the concept of an MBO in the context of management and explain

four different strategies of TOWS matrix.

3. What is meant by “span of management” and explain the factors that

influence the span of management.

4. List categories of departmentation and explain departmentation by functions.

5. Describe in details the term “line”, “staff” and “functional authority”.

6. What are the critical factors in effective organizing?

7. Explain the Adam’s Equity theory of motivation.

8. List types of leadership approaches and explain “Autocratic Approach”.

9. Describe briefly the reasons for using “committees” and “groups”

10. Write a detailed note on the basic control process and also describe the

requirement for establishing effective control.


Question # 1: Define management and explain basic management functions?

Answer:

Management

Management is a process of designing and maintaining and environment in which individual working together in groups efficiently to accomplish the selected aims.

This can be elaborated as:

1. As managers people carry out the managerial functions of planning organizing staffing and controlling

2. Management applies to any kind of organization3. It applies to manager at all organizational levels4. The aim of all the managers is the same to create a surplus5. Managing is concerned with productivity which applies effectiveness and sffeicienlty

Function of management

Researcher and managers have found that the analysis of management is facilitated by a useful and clear organization of knowledge. Management is therefore breaking into five managerial functions.

Managerial functions are as follows:

1. Planning2. Organizing3. Staffing4. Leading5. Controlling

The framework of management is used and tested for number of decades. The emphasis onstudy of management functions is on mangers and task that pertain to designing an internal environment for performance with an organization. As to mangers one cannot perfom the and operate the enter business enterprise.

Planning

The word planning incorporates both ideas: It means determining the organization's goals

and defining the means for achieving them. Planning allows managers the opportunity to

adjust to the environment instead of merely reacting to it. Planning increases the possibility


of survival in business by actively anticipating and managing the risks that may occur in the

future.

Planning is the function of management that involves setting objectives and determining a

course of action for achieving those objectives. Planning requires that managers be aware of

environmental conditions facing their organization and forecast future conditions. It also

requires that managers be good decision makers.

Planning is a process consisting of several steps. The process begins with environmental

scanning which simply means that planners must be aware of the critical contingencies facing

their organization in terms of economic conditions, their competitors, and their customers.

Planners must then attempt to forecast future conditions. These forecasts form the basis for

planning.

Planners must establish objectives, which are statements of what needs to be achieved and

when. Planners must then identify alternative courses of action for achieving objectives. After

evaluating the various alternatives, planners must make decisions about the best courses of

action for achieving objectives. They must then formulate necessary steps and ensure

effective implementation of plans. Finally, planners must constantly evaluate the success of

their plans and take corrective action when necessary.

There are many different types of plans and planning

1. Starategic Planning

2. Tactical Planning

3. Operational Planning

Organizing

Organizing is the function of management that involves developing an organizational

structure and allocating human resources to ensure the accomplishment of objectives. The

structure of the organization is the framework within which effort is coordinated. The

structure is usually represented by an organization chart, which provides a graphic

representation of the chain of command within an organization. Decisions made about the

structure of an organization are generally referred to as organizational design decisions.

Organizing also involves the design of individual jobs within the organization. Decisions

must be made about the duties and responsibilities of individual jobs, as well as the manner in


which the duties should be carried out. Decisions made about the nature of jobs within the

organization are generally called “job design” decisions.

Organizing at the level of the organization involves deciding how best to departmentalize, or

cluster, jobs into departments to coordinate effort effectively. There are many different ways

to departmentalize, including organizing by function, product, geography, or customer. Many

larger organizations use multiple methods of departmentalization.

Staffing

Staffing is the process by which an organization creates a pool of applicants and makes a choice from that pool to provide the right person at the right place at the right time to increase the organizational effectiveness.

The staffing function follows the planning and organizing function. It is a continuous process. This function includes recruitment, selection, training, development, transfer, promotion and compensation of personnel.

The major elements of staffing are as follows –

Effective recruitment and selection. Proper classification of personnel and pay fixed for them. Proper placement. Adequate and appropriate training for development. Satisfactory and fair transfer & promotion. Sound relationship between management and workers. Adequate provision for retirement.

Leadership

Over the years the philosophical terms "management" and "leadership" have been used both as synonyms and with clearly differentiated meanings. Debate is fairly common about whether the use of these terms should be restricted and generally reflects an awareness of the distinction made by Burns (1978) between "transactional" leadership (characterized by emphasis on procedures, contingent reward, management by exception) and "transformational" leadership (characterized by charisma, personal relationships, creativity). Management is often associated with the former and leadership with the latter.

Leaders who demonstrate persistence, tenacity, determination, and synergistic communication skills will bring out the same qualities in their groups. Good leaders use their own inner mentors to energize their team and organizations and lead a team to achieve success.

In contrast to individual leadership, some organizations have adopted group leadership. In this situation, more than one person provides direction to the group as a whole. Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or


downsizing. Others may see the traditional leadership of a boss as costing too much in team performance. In some situations, the team members best able to handle any given phase of the project become the temporary leaders. Additionally, staff experiences energy and success when each team member has access to elevated levels of empowerment.

Leadership style is a leader's approach towards providing direction, implementing plans, and motivating people. It is the result of the philosophy, personality, and experience of the leader. Rhetoric specialists have also developed models for understanding leadership

Different situations call for different leadership styles. In an emergency, when there is little time to reach an agreement and where a designated authority has significantly more experience or expertise than the rest of the team, an autocratic leadership style may be most effective. However, in a highly motivated and aligned team, with a homogeneous level of expertise, a more democratic or laissez-faire style may be more effective. The leadership style adopted should be the one that most effectively achieves the objectives of the group while balancing the interests of its individual members.

Controlling Meaning & Nature

Control, it is the last function of any management. The controlling function will be unnecessary to the management if other function of management are performed properly.

According to Knootz & O’Donnell, “ Controlling is the measurement of accomplishment against the standards and the correction of deviations to assure attainment of objectives according to plans.”

G.R.Terry state that – “ Controlling is determining what is being accomplished, that is, evaluating the performance and if necessary, applying corrective measure so that the performance takes place according to plans.”

Henry Fayol, “ Control consists in verifying whether everything occurs in conformity, is with the plans adopted the instructions issued and principles established. It has for its object to point out weaknesses and errors in order to rectify them and prevent recurrence.”

According to Mc Farland, “ The presence in a business of that force which guides it to a pre-determined objective by means of pre-determined policies and decisions.”

The main scopes of control are as follows –

a) Control over organization.b) Control over policies of the concern.c) Control over production.d) Control over public relations.e) Control over research & development.f) Control over tools & equipment.

Characteristics of Control are –


1. Control is a continuous process.2. It is a management process.3. It is embedded in each level of organizational hierarchy.4. It is forward looking.5. It is closely linked with planning.6. It is a tool for achieving organizational activities.7. Control is an end process.

This study is about individuals, groups/teams and organizations, and the management of them, people behavior, and the impacts on organizational effectiveness. Behavior is analyzed to determine what impedes, maintains, and advances organizations, in terms of profitability and competitiveness. It also provides an overview of the major elements of organizational behavior including: motivation, perception, communication, group dynamics, leadership, structure, culture, and environment.


Question # 2: describe the concept of an MBO in the context of management and explain the strategies of TOWX matrix?

Answer:

Management By Objectives:

Management by objectives (MBO), also known as management by results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them. The term "management by objectives" was first popularized by Peter Drucker in his 1954 book The Practice of Management

One of the most interesting developments in management during the latter part of this century has been the development of the concept of Management by Objectives (MBO). As the organizations grew more complex both in organizational structure as well as the extent of operations the need for more sophisticated techniques of management arose.

The main concern of management is to produce the desired results effectively and efficiently. This has been the focus of the evolution of management approaches and techniques.

In the context of the simple managerial situation of yesterdays, when the level of technology was low and the organisational complexities were non-existent, sophisticated techniques were not needed. But with the rapid development of technology at all levels, with organization pyramids becoming larger and more complex and with the separation of ownership and management, new situations have emerged which demand different responses.

It is now recognized that when the managers cease to be risk bearers, it becomes necessary to devise some means to increase their stake in the output of organization. The system of Management by Objectives (MBO) is designed to achieve that

Advantages:

MBO programs continually emphasize what should be done in an organization to achieve organizational goals.

MBO process secures employee commitment to attaining organizational goals.

Disadvantages:

The development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work.

The elaborate written goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization.


TOWS Matrix

Heinz Weihrich has developed a matrix called TOWS matrix by comparing strengths and weaknesses of organization with that of market opportunities and threats

It has been criticized that after conducting the SWOT Analysis managers frequently fail to successfully deal with the strategic choices that the outcomes demand.

TOWS Matrix while using the same inputs (Threats, Opportunities, Weakness and Strengths) reorganizes them and integrates them more fully into the strategic planning process.

The matrix is outlined below:


Question # 3: What is meant by “Span of management” and explain the factor that influence the span of management?

Answer:

Span Of Management

Span of management means the number of people managed efficiently by a single officer in an organization. This is also called span of management, span of authority, span of supervision, span of authority, span of responsibility or levels of organization. This principle is based on the principle of relationship.

Span of control refers to the maximum numbers effectively supervised by a single individual. The number of members may be increased or decreased according to the nature of work done by the subordinate or the ability of the supervision. In the administration area, under one executive, nearly four of five subordinates may work. The span of control enables the smooth functioning of the organization.

The term ‘span’ literally means the space the between two supports of a structure, e.g. the space between two pillars of a bridge. The space between two pillars should be neither too large nor to small. If it is too large, the bridge may collapse and if is too small, it will enhance its cost. When this word is applied to management, it refers to the number of subordinates a manager or a supervisor can supervise, manage or control effectively and effectively.

Therefore, span of supervision refer to the optimum number of subordinates that a manager or supervisor can manage or control effectively.

An organization is characterized by the presence of a number of levels and departments. But more the levels are created more will be the administrative cost due to additional staff required and more will be the difficulty to be encountered in communication and controlling.

This is basically the problem of deciding the number of subordinates to report directly to each manager. According to this principle there is a limit of the number of subordinates that each managers can effectively supervise.

Basically there are two types of span of management –

1. Narrow span of management – It leads to many level in heresy system in organization situation. Narrow span also effect employees moral adversely.

2. Wide span of management – Wide spans of management leads to flat organization in which manager have a developing skill and experience of knowledge.

Factors influencing Span of Control

Important factors influencing the determination of proper span of control/supervision management are: 1. nature of work 2. ability of the supervisor 3. competence of the


subordinates 4. ability of staff services 5. availability of time and energy with the supervisor 6. delegation of authority 7. degree of decentralization 8. planning required by the supervisor 9. use of objective standards and 10. territorial contiguity of functions supervised!

1. Nature of work:

The span of control greatly depends upon the nature of activities and problems faced by the supervisor, which in turn will depend on nature and size of production. In case the supervisor carries routine type of job under set guidelines, he need not devote much time on the workers under him.

As the job is repetitive in nature, span of supervision or control can be larger. In other words, a supervisor can control more workers under him. On the other hand, in case of complex and complicated jobs it would be difficult for the supervisor to control large number of workers effectively. The span of control will be narrow in such cases.

2. Ability of the supervisor:

The ability and skill of the supervisor greatly affects determination of span. A highly qualified and experienced supervisor with specialised knowledge and technical skill will be able to undertake effectively a larger span than a supervisor who is not well qualified and experienced.

3. Competence of the subordinates:

The span of control supervision is also greatly affected by the quality of the subordinates to be supervised by the supervisor. If subordinates are by and large experienced, hard working and well versed in their jobs, the supervisor can manage large number of workers and span can be more. The supervisor can rely on the performance of the workers and he need not guide them time and again once instructions are issued to them.

If the staff under the control of supervisor is inexperienced and inefficient (say comprising of new comers), the subordinates would refer to the supervisor every now and then for clarifications and guidance. The span of control in such a case will be narrow.

4. Ability of staff services:

The term ‘staff’ means the appointment of experts in the line organisation for guiding, advising, and expert opinion to the line officers. The supervisor or line superior is greatly benefited and relieved by the staff advice. He can manage large number of subordinates and the span will be large. If staff services are not available, lesser number of subordinates should be put under the control of one supervisor which will lead to narrow span

5. Availability of time and energy with the supervisor:

The availability of time with the supervisor will depend upon the type of the problems, simple or complex, tackled by him and he has to do many other things like preparation of


reports and planning. If he is busy in these complexities, he will not be able to manage large number of subordinates. Here the span of control will be narrow.

6. Delegation of authority:

In an enterprise which is effectively organised and structured, management is able to influence and minimise the frequency and severity of superior- subordinate relationships and thus increase its span. An organisation poorly conceived consumes disproportionate time of the manager in counselling and guidance of the subordinates

An important symptom of inefficient organisation influencing span of control is to be found in ambiguous or inadequate authority delegation. If subordinate is not clear about what he is expected to do or is called upon to do something beyond the scope of his authority, he will make more demand on the senior manager and hence operate to reduce his span.

Where subordinates are delegated authority sufficient to carry out the assigned duties and their authorities are clearly defined, properly trained subordinates will considerably reduce the time and attention of the senior and thus help to increase his span.

7. Degree of decentralization:

If a manager is to make many decisions himself, he will have less time to spare from supervising the work of his subordinate and thus must operate with a narrow span. On the other hand, an executive operating under decentralized set-up is relieved of much of the burden of making programmed decisions and hence can afford to supervise relatively a larger number of subordinates.

8. Planning required by the supervisor:

This factor refers to the importance, complexity and time to be spent by the executive in reviewing the objectives, programming the actions and deciding about a number of policy matters. As the importance, complexity and time required of the manager in performing his planning function increases, it will be more prudent to reduce the number of subordinates reporting to him.

9. Use of objective standards

Supervising the subordinates requires that management must know how far plans are being followed and to what extent their performance tends to deviate from plans. He can know the deviations either by personal observation or through use of objective standards. In the latter case, manager is saved of many time-consuming relationships and can concentrate on points of strategic importance thus widening his span of control.


Question # 4: List categories of departmentation and explain departmentation by functions

Answer:

Introduction

Organizations are formed when a group of individuals unite to accomplish a specific goal. They are responsible for creating a work environment that best utilizes resources such as people, tasks and technology. But, in order to meet this objective, they will need to create an organizational structure or design. Organizational structure and design include work specialization, departmentalization, chain of command, span of control, centralization and decentralization and common organizational designs. Departmentalization is discussed here.

Meaning of departmentation

Grouping of activities is an essential step in designing an organisational structure. Grouping of activities into departments or other homogeneous unit is known as departmentation. Departmentation or departmentalisation is the process of grouping tasks into jobs, the combining of jobs into effective work groups and the combining of groups into identifiable groups or departments.

Need and importance

The basic purpose of departmentation is to make the size of each departmental unit manageable and to secure advantages of specialization. It is necessary on the account of following reasons

Specialization: Departmentation enables an organization to avail the benefits of specialisation.

Expansion: One manager can supervise and direct only a few subordinates. Autonomy: Departmentation results in the division of enterprise into semi-

autonomous units. Fixation of responsibilities: Departmentation enables each person to know the specific

part he is to play in the total organization. Appraisal: Appraisal of managerial performance becomes easier when specific tasks

are assigned to specific personnel. Managerial development: Departmentation facilitates communication, coordination

and control. Administrative control: Departmentation is a means of dividing the large and complex

organization into small and flexible administrative units.

Functional departmentation:

Functional Departmentalization groups jobs by the functions that they perform. Hence each major or basic function is organized as a separate department. The basic or organic functions are the functions the performance of which is vital and essential to the survival of the


organization. For example, key functions of a manufacturing company include production, purchasing, marketing, accounting, and personnel. The functions of a hospital include surgery, psychiatry, nursing, housekeeping, and billing.

If necessary, a major function may be divided into minor or sub-functions. A production department’s activities may classify into quality control, processing of materials and repairs and maintenance. The process of functional differentiation can continue as long as there exists a sound basis for further differentiation. It is the widely used basis for grouping activities and exists almost in every organization at some level.

List of departentation:

1. Departmentation by Enterprise2. Departmentation by Territory or geography3. Departmentation by Customer Group4. Departmentation by Product

ENTERPRISE DEPARTMENTATION

A method for separating the activities performed within an organization into groups differentiated by the function they perform. For example, a business employing functional departmentalization would tend to group together workers that perform a particular function, such as accounting, that differs substantially from the tasks performed by other staff members.


TERRITORIAL DEPARTMENTATION

Organizations that are spread over a wide area may find advantages in organizing along geographic lines so that all the activities performed in a region are managed together. Bank, insurance companies, transport companies, distribution agencies are examples of such enterprises. The activities are divided into zones, divisions and branches. It is obviously not possible for one functional manager to manage efficiently such widely separated activities this makes it necessary to appoint regional managers for different regions.

CUSTOMER DEPARTMENTATION

An organization may find it advantageous to organize according to the types of customers it serves. For example, a distribution company that sells to consumers, government clients, large businesses, and small businesses may decide to base its primary divisions on these different markets. Its personnel can then become proficient in meeting the needs of these different customers. This figure depicts an organization grouped by customers and markets.

PRODUCT DEPARTMENTATION


Product Departmentalization jobs are grouped by product line in which each major product area is placed under the authority of a manager whom is responsible for all aspects of the product line. It is useful when product expansion and diversification, manufacturing and marketing characteristic of the product are of primary significance. It is generally employed when the product line is relatively complex and diverse requiring specialized knowledge and a great deal of capital is required for plant and equipment. A I company with diversified product line may have the following divisions


Question # 5: Describe in detail the term “Line”, “staff” and functional Authority”.

Answer:

Organizational structure involves, in addition to task organizational boundary considerations, the designation of jobs within an organization and the relationships among those jobs. There are numerous ways to structure jobs within an organization, but two of the most basic forms include simple line structures and line-and-staff structures.

In a line organization, top management has complete control, and the chain of command is clear and simple. Examples of line organizations are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.

The line-and-staff organization combines the line organization with staff departments that support and advise line departments. Most medium and large-sized firms exhibit line-and-staff organizational structures. The distinguishing characteristic between simple line organizations and line-and-staff organizations is the multiple layers of management within line-and-staff organizations. The following sections refer primarily to line-and-staff structures, although the advantages and disadvantages discussed apply to both types of organizational structures.

Several advantages and disadvantages are present within a line-and-staff organization. An advantage of a line-and-staff organization is the availability of technical specialists. Staff experts in specific areas are incorporated into the formal chain of command. A disadvantage of a line-and-staff organization is conflict between line and staff personnel.

LINE-AND-STAFF POSITIONS

A wide variety of positions exist within a line-and-staff organization. Some positions are primary to the company's mission, whereas others are secondaryn the form of support and indirect contribution. Although positions within a line-and-staff organization can be differentiated in several ways, the simplest approach classifies them as being either line or staff.

A line position is directly involved in the day-to-day operations of the organization, such as producing or selling a product or service. Line positions are occupied by line personnel and line managers. Line personnel carry out the primary activities of a business and are considered essential to the basic functioning of the organization.

Line managers make the majority of the decisions and direct line personnel to achieve company goals. An example of a line manager is a marketing executive.

Line-and-Staff Organization Although a marketing executive does not actually produce the product or service, he or she directly contributes to the firm's overall objectives through market forecasting and generating product or service demand. Therefore, line positions, whether they are personnel or


managers, engage in activities that are functionally and directly related to the principal workflow of an organization.

Staff positions serve the organization by indirectly supporting line functions. Staff positions consist of staff personnel and staff managers. Staff personnel use their technical expertise to assist line personnel and aid top management in various business activities. Staff managers provide support, advice, and knowledge to other individuals in the chain of command.

Although staff managers are not part of the chain of command related to direct production of products or services, they do have authority over personnel. An example of a staff manager is a legal adviser. He or she does not actively engage in profit-making activities, but does provide legal support to those who do. Therefore, staff positions, whether personnel or managers, engage in activities that are supportive to line personnel.

LINE-AND-STAFF AUTHORITY

Authority within a line-and-staff organization can be differentiated. Three types of authority are present: line, staff, and functional. Line authority is the right to carry out assignments and exact performance from other individuals.

LINE AUTHORITY.

Line authority flows down the chain of command. For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, and it gives the vice president of finance the right to request a certain report from a department head. Therefore, line authority gives an individual a certain degree of power relating to the performance of an organizational task.

Two important clarifications should be considered, however, when discussing line authority: (1) line authority does not ensure effective performance, and (2) line authority is not restricted to line personnel. The head of a staff department has line authority over his or her employees by virtue of authority relationships between the department head and his or her directly-reporting employees.

STAFF AUTHORITY.

Staff authority is the right to advise or counsel those with line authority. For example, human resource department employees help other departments by selecting and developing a qualified workforce. A quality control manager aids a production manager by determining the acceptable quality level of products or services at a manufacturing company, initiating quality programs, and carrying out statistical analysis to ensure compliance with quality standards. Therefore, staff authority gives staff personnel the right to offer advice in an effort to improve line operations.

FUNCTIONAL AUTHORITY.

Functional authority is referred to as limited line authority. It gives a staff person power over a particular function, such as safety or accounting. Usually, functional authority is given to specific staff personnel with expertise in a certain area. For example, members of an


accounting department might have authority to request documents they need to prepare financial reports, or a human resource manager might have authority to ensure that all departments are complying with equal employment opportunity laws. Functional authority is a special type of authority for staff personnel, which must be designated by top management.

LINE-AND-STAFF CONFLICT

Due to different positions and types of authority within a line-and-staff organization, conflict between line and staff personnel is almost inevitable. Although minimal conflict due to differences in viewpoints is natural, conflict on the part of line and staff personnel can disrupt an entire organization. There are many reasons for conflict. Poor human relations, overlapping authority and responsibility, and misuse of staff personnel by top management are all primary reasons for feelings of resentment between line and staff personnel. This resentment can result in various departments viewing the organization from a narrow stance instead of looking at the organization as a whole.

Fortunately, there are several ways to minimize conflict. One way is to integrate line and staff personnel into a work team. The success of the work team depends on how well each group can work together in efforts to increase productivity and performance. Another solution is to ensure that the areas of responsibility and authority of both line and staff personnel are clearly defined. With clearly defined lines of authority and responsibility, each group may better understand their role in the organization. A third way to minimize conflict is to hold both line and staff personnel accountable for the results of their own activities. In other words, line personnel should not be entirely responsible for poor performance resulting from staff personnel advice.

Line-and-staff organizations combine the direct flow of authority present within a line organization with staff departments that offer support and advice. A clear chain of command is a consistent characteristic among line-and-staff organizational structures. Problems of conflict may arise, but organizations that clearly delineate responsibility can help minimize such conflict.


Question # 6: What are the critical factors in effective organizing?

Answer:

Organization Efficiency

Organizational efficiency is the organization's degree of success in using the least possible inputs in order to produce the highest possible outputs. Organizational efficiency is gauged using a number of quantitative figures such as production costs and production times because it is too broad of a concept to be encapsulated in a single figure.

Avoiding Mistakes in Organizing by Planning

Lack of design in an organization is illogical, cruel, wasteful and inefficient.

Planning for the IdealThe search for an ideal organization to reflect enterprise goals under given circumstances is impetus to planning. The ultimate form established, like all other plans, seldom remains unchanged, and continuous remolding of the ideal plan is normally necessary. Nevertheless, an ideal organization plan constitutes a standard, and by comparing the present structure with it, enterprise leaders know what changes should be made when possible. An organizer must always be careful not to be blinded by popular notions in organizing, because what may work in one company may not work in another.

Modification for Human Factor

If available personnel do not fit into the ideal structure and cannot or should not be pushed aside, the only choice is to modify the structure to fit individual capabilities, attitudes, or limitations. Although modification may seem like organizing around people, in this case one is first organizing around the goals to be met and activities to be undertaken and only then making modification for the human factor.

Advantage of Organization Planning

Planning the organization structure helps determine future personnel need and required training programs. Furthermore organization planning can disclose weakness such as, duplication of effort, unclear lines of authority, and overlong lines of communication.

Avoiding Organizational Inflexibility

One basic advantage of organization planning is the avoidance of organizational inflexibility. An effective organization must have the ability to adapt to a changing environment and meet new contingencies. This resistance to change can cause considerable loss of efficiency in organizations.

Avoiding inflexibility through Reorganization

Although reorganization is intended to respond to changes in the enterprise environment, there may be other compelling reasons for reorganization.


1. Change in operations caused by the acquisition or sale of major properties, change in product line or marketing method, business cycle, competitive influences, new production techniques, labor union policy, government regulatory and fiscal policy.

2. Moreover, a new chief executive officer and new vice presidents and department head are likely to have some definite organizational ideas of their own.

3. Furthermore, reorganization may be caused by demonstrated deficiencies in an existing structure. Some of these arise from organization weaknesses: excessive spans of management and committees, lack of union policy, slow decision making, failure to accomplish objectives, inability to meet schedules, excessive cost or break down of financial control.

The need for readjustment and changeIn addition to pressing reasons for reorganization, there is a certain need for moderate and continuing readjustment merely to keep he structure from becoming stagnant.

Making Staff Work Effective

The line-staff problem is not only one of the most difficult that the organizations face but also the source of an extraordinarily large amount of inefficiency. Solving this problem requires great managerial skills, careful attention to principles, and patient teaching of personnel.

Understanding Authority Relationships Managers must understand the nature of authority relationships if they want to solve the problems of line and staff. As long as the managers regard line and staff as groups of people or grouping activities, confusion will result. The line relationship involves making decisions and acting on them. The staff relationship, on the other hand, implies the right to assist and counsel. In short line may “tell”, but staff must “sell”.

Making Lines Listen to Staff

Line managers should be encouraged or required to consult with the staff. Enterprises would do well to adopt the practice of compulsory staff assistance wherein the line must listen to staff.

Keeping Staff Informed

Many criticisms arise because staff assistants are not kept informed on matters within their field.

Requiring Completed Staff Work

Many staff persons overlook the fact that in order to be most helpful, their recommendations should be complete enough to make possible a simple positive or negative answer by a line manager. Staff assistants should be problem solvers and not problem creator. Completed staff work implies presentation of a clear recommendation based on full consideration of problem, clearance with persons importantly affected. Should a recommendation be accepted, through


staff work provides line managers with the machinery to put in into effect. People in staff positions who learn to do these things can find themselves highly valued and appreciated.

Making Staff Work as a Way or Organizational Life

Wherever staff is used, its responsibility is to develop and maintain a climate of favorable personal relations. A staff assistant should not attempt to assume credit for an idea. Not only is this a sure way of alienating line teammates who do not like being shown up by staff assistant, but operating managers who accept ideas actually bear responsibility for the implementation of the proposals. Companies also employ the outside assistance of professional firms.

Avoiding Conflicts by Clarification

A major reason for conflict in organizations is that people do not understand their assignments and those of their co-workers. No matter how well conceived an organization structure may be, people must understand it to make it work. Understanding is aided materially by the proper use of organization charts, accurate job descriptions, the spelling out of authority and informational relationships and the introduction of specific goals for specific positions.

Organization Charts

Every organization structure, even a poor one, can be charted.

Advantages of Organization Charts: Though it is arguable that, charts tends to make people overly conscious of being superiors or inferiors, tend to destroy team feeling also, if an organization is left uncharted, it can be changed more easily, organization charting is required because of essential reporting relationships. Without charting is like, preparing a way for politics, intrigue, frustration, buck-passing, lack of co-ordination, duplicated effort, vague policy, uncertain decision making, and other evidences of organizational inefficiency. Since a chart maps lines of decision-making authority, sometimes merely charting any organization can show inconsistencies and complexities and lead to their correction.

Limitation of Organization Charts:

A chart shows only formal authority relationships and omits the many significant informal and informational relationships. It does not show how much authority exists at any point in the structure. Many time managers hesitate or neglect or redraft charts, forgetting that organization structures are dynamic and that charts should not be allowed to become obsolete. Another difficulty is that individuals may confuse authority relationship with status (salary and bonus levels).

Position Description

Every managerial position should be defined. A good position description informs every one of the incumbent’s responsibilities. It must states the basic function of the position, the major end-result areas for which the manager is responsible, and the reporting relationships


involved. Description also clarifies the position’s authority, and it states the set of verifiable objectives for the end-result areas. Its benefits include analyzing jobs, duties and responsibilities, identification of areas of neglecting or overlapping duties. Also benefits include the guidance they provide in training the new managers, in drawing up candidate requirements, and in setting up salary levels. Finally it is a means of control over the organization. It gives standards against which to judge a position is necessary and, if so, what its organizational level and exact location in the structure should be.

Ensure Understanding of Organization

All members of an enterprise must understand the structure of their organization in order for that structure to work.

Teaching the Nature of Organizing

A well written organization manual – containing a statement of organization philosophy, programs, charts and an outline of job descriptions – goes far towards making organizing understandable.

The Grapevine

Informal organization tends to exist when members of a formal organization know one another well enough to pass on information – sometimes only gossip – that is some way connected with the enterprise. Since all forms of informal organization serve essential human communication needs, the grapevine is inevitable and valuable.

Advantages Informal Organization brings a kind of cohesiveness to formal organization. Many managers, understanding this fact, consciously use informal organizations as channels of communication and molders of employee moral.

Promoting an Appropriate Organization Culture

The effectiveness of an organization is also influenced by the organization culture, which affects the way the managerial functions of planning, organizing, staffing, leading and controlling are carried out.

Defining Organization Culture

Culture is general pattern of behavior, shared beliefs, and values that members have in common. Culture can be inferred from what people say, do, and think within an organizational setting. It involves the learning and transmitting of knowledge, beliefs, and patterns of behavior over a period of time, which means that an organization culture is fairly stable and does not change fast. It often sets the tone for the company and establishes implied rules for the way people should behave. Many slogans give a general idea of what a particular company stands for. Influence of the Leader on Organization Culture


Question # 7: Explain the Adam’s Equity Theory of Motivation?

Answer:

Definition of Equity Theory

In 1963, John Stacey Adams introduced the idea that fairness and equity are key components of a motivated individual. Equity theory is based in the idea that individuals are motivated by fairness, and if they identify inequities in the input/output ratios of themselves and their referent group, they will seek to adjust their input to reach their perceived equity. Adams' suggested that the higher an individual's perception of equity, the more motivated they will be, and vice versa - if someone perceives an unfair environment, they will be demotivated.

Examples of Equity Theory

The easiest way to see the equity theory at work, and probably the most common way it does impact employees, is when colleagues compare the work they do to someone else that gets paid more than them. Equity theory is at play anytime employees say things like 'John gets paid a lot more than me, but doesn't do nearly as much work' or 'I get paid a lot less than Jane, but this place couldn't operate without me!' In each of those situations, someone is comparing their own effort-to-compensation ratio to someone else's and is losing motivation in the process.

Equity Theory :

As per the equity theory of J. Stacey Adams, people are motivated by their beliefs about the reward structure as being fair or unfair, relative to the inputs. People have a tendency to use subjective judgment to balance the outcomes and inputs in the relationship for comparisons between different individuals Accordingly :


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If people feel that they are not equally rewarded they either reduce the quantity or quality of work or migrate to some other organization. However, if people perceive that they are rewarded higher, they may be motivated to work harder.

How to Apply the Adams' Equity Theory

It is important to also consider the Adams' Equity Theory factors when striving to improve an employee's job satisfaction, motivation level, etc., and what can be done to promote higher levels of each.

To do this, consider the balance or imbalance that currently exists between your employee's inputs and outputs, as follows:

Inputs typically include:

Effort. Loyalty. Hard work. Commitment. Skill. Ability. Adaptability.


Flexibility. Tolerance. Determination. Enthusiasm. Trust in superiors. Support of colleagues. Personal sacrifice.

Outputs typically include:

Financial rewards (such as salary, benefits, perks). Intangibles that typically include: Recognition. Reputation. Responsibility. Sense of achievement. Praise. Sense of advancement/growth.

Job security.

While obviously many of these points can't be quantified and perfectly compared, the theory argues that managers should seek to find a fair balance between the inputs that an employee gives, and the outputs received.


Question # 8: List the types of Leadership approaches and explain “ Autocratic Approach”

Answer:

Leadership has been described as "a process of social influence in which a person can enlist the aid and support of others in the accomplishment of a common task”. For example, some understand a leader simply as somebody whom people follow, or as somebody who guides or directs others, while others define leadership as "organizing a group of people to achieve a common goal".

My knowledge about leadership says that leadership is the ability to influence a group towards the achievement of a goal or goals. All human attempts desire a unifying and motivating force for victory and that driving potency is finally traced to worthy leadership. Similarly it is worth noting that every one of us sometimes, in some capacity, or somewhere is a leader, because almost every person have sometimes somewhere, somehow played a leading role in his life.

Leadership is about influencing and molding people, their thoughts, their preferences, their priorities, towards the goal. Everyone has an independent brain, to judge, to prefer, to accept, dealing with a number of such diversified brains and leading them towards a common goal without using any unfair power or unethical actions is the actual leadership. A leader’s personality, behavior, character should be flawless. He influences people not only by words of mouth but also by language of actions. People will follow the one, who follows himself and there is no difference in his words and acts.

Key factors need and are found in leaders as

1. Being Positive2. Approaches the team with a focus on Listening3. Compromise4. Approaching Decision making

Types of Leadership approaches:

1. Trait Appraoch2. Charismatic leadership Approach3. Situational or Contigency Leadership4. Transactional or Transformational Appraoch

Autocratic Approach:

The autocratic leadership style is best used in situations where control is necessary, often where there is little margin for error. When conditions are dangerous, rigid rules can keep people out of harm’s way. Many times, the subordinate staff is inexperienced or unfamiliar with the type of work and heavy oversight is necessary.


Rigid organizations often use this style. It has been known to be very paternalistic, and in highly-professional, independent minded teams, it can lead to resentment and strained morale.

Good fits for Autocratic Leadership:

Military Manufacturing Construction

How to be effective with this position:

It’s easy to see the immediate goal of this type of leadership: use your expertise to get the job done. Make sure that everyone is exactly where they need to be and doing their job, while the important tasks are handled quickly and correctly.

In many ways this is the oldest leadership style, dating back to the early empires. It’s very intuitive to tell people what needs to be done by when.

It is difficult balancing the use of authority with the morale of the team. Too much direct scrutiny will make your subordinates miserable, and being too heavy handed will squelch all group input. Being an effective autocratic leader means being very intentional about when and how demands are made of the team.

Here are some things to keep in mind to be an effective when acting as an autocratic leader:

Respect your Subordinates:

It’s easy to end up as rigid as the rules you are trying to enforce. It’s important that you stay fair and acknowledge that everyone brings something to the table, even if they don’t call the shots. Making subordinates realize they are respected keeps moral up and resentment low; every functional team is built on a foundation of mutual respect.

Explain the rules:

Your people know they have to follow procedure, but it helps them do a better job if they know why.

Be consistent:

If your role in the team is to enforce the company line, you have to make sure you do so consistently and fairly. It’s easy to respect someone objective, but hard to trust someone who applies policy differently in similar circumstances.

Educate before you enforce:

Having everyone understand your expectations up front will mean less surprises down the road. Being above board from the outset prevents a lot of miscommunications and misunderstandings.


Listen, even if you don’t change:

We all want to feel like our opinions are appreciated, even if they aren’t going to lead to immediate change and being a leader means that your team will want to bring their opinions to you. It’s important to be clear that they are heard, no matter the outcome.

Benefits of Autocratic Leadership

Autocratic leadership can be beneficial in some instances, such as when decisions need to be

made quickly without consulting with a large group of people. Some projects require strong

leadership in order to get things accomplished quickly and efficiently.

Have you ever worked with a group of students or co-workers on a project that got derailed

by poor organization, a lack of leadership, and an inability to set deadlines? If so, chances are

that your grade or job performance suffered as a result. In such situations, a strong leader who

utilizes an autocratic style can take charge of the group, assign tasks to different members,

and establish solid deadlines for projects to be finished.

In situations that are particularly stressful, such as during military conflicts, group members

may actually prefer an autocratic style. It allows members of the group to focus on

performing specific tasks without worrying about making complex decisions. This also

allows group members to become highly skilled at performing certain duties, which can be

beneficial to the group.

Downsides of Autocratic Leadership

While autocratic leadership can be beneficial at times, there are also many instances where

this leadership style can be problematic. People who abuse an autocratic leadership style are

often viewed as bossy, controlling, and dictatorial, which can lead to resentment among

group members.

Because autocratic leaders make decisions without consulting the group, people in the group

may dislike that they are unable to contribute ideas. Researchers have also found that

autocratic leadership often results in a lack of creative solutions to problems, which can

ultimately hurt the performance of the group.While autocratic leadership does have some

potential pitfalls, leaders can learn to use elements of this style wisely. For example, an

autocratic style can be used effectively in situations where the leader is the most

knowledgeable member of the group or has access to information that other members of the

group do not.


Question # 9: Describe briefly the reason for using “Committees” and “Groups’

Answer:

here are widespread uses of committee and also some strong reasons for using committee; the more important ones are discussed below:

Reasons for Using Committee

1. Superior Judgment: The most important reason for the use of committee is to arrive at a superior judgment through group deliberations. It is increasingly being recognized that most problems of modern business require more experience, knowledge, and judgment than any individual possesses. Committees may help the clarification of problems and development of new ideas. Group interactions through committees have been found to be especially enlightening in policy matters. In complex business situations, however, group interactions may be superior to individual judgment.

2. Motivations through participation: Membership of committees permits wider participation in decision-making. There are people who seem to be against every move unless they have been previously consulted. Committee membership may help improve the situation. Persons who take part in decision-making through committee membership usually feel more enthusiastic about accepting and executing it.

3. Avoiding concentration of authority in a single person: The use of committee can help avoid concentration of authority in a single person. There may also be a committee to make recommendations on a problem because the manager does not wish to take full responsibility for making a decision. Major financial and capital investment policies are also often developed by committees, partly because of unwillingness to give a single individual complete authority to make each important decision.

4. Sharing and transmitting of information: Another reason for using committee is sharing and transmitting information. All the members of a committee can learn about a project or problem simultaneously. Moreover, decisions and instructions can be received uniformly with opportunities for clarification. This may help avoid misunderstanding and save time.

5. Achieving co-ordination: Committees are very useful for co-ordinating activities among various organizational units. The dynamics of modern organizations place a heavy burden on the mangers to integrate plans and activities. Committees can help a lot in this direction by co-ordinating plans and policies as well as their implementation.

6. Representation of interested groups: Committees are often formed with membership from different interested groups. Members of board of directors are often selected on the basis of groups interested in the company and, perhaps more often, on the basis of groups in which the company has an interest. When top executives have internal problems involving, for example, heads of various departments, they may choose committee members in such a way as to give these departments representation.


7. Delaying or avoiding action: It is well known that committees are often appointed by mangers when they want to delay or avoid action. At times, committee members are chosen in a way aimed at delaying action. Careful mangers know that one of the surest ways to delay the handling of a problem, and even to postpone a decision indefinitely, is to appoint a committee to study the matter.


Question # 10: Write a detailed note on the basic control process and also describe the requirement for establishing effective control.

Answer:

The Basic Control Process

The Basic Control Process: Control techniques and systems are essentially the same for controlling cash, office procedures, morale, product quality, and anything else. The basic control process, wherever it is found and whatever is being controlled, involves three steps:

Establishing standards Measuring performance against these standards, and Correcting variations from standards and plans.

1. Establishment of Standards:

Because plans are the yardsticks against which managers devise controls, the first step in the control process logically would be to establish plans. However, since plans vary in detail and complexity, and since managers cannot usually watch everything, special standards are established. Standards are simply criteria of performance. They are the selected points in an entire planning program at which measures of performance are made so that managers can receive signals about how things are going and thus do not have to watch every step in the execution of plans.

There are many kinds of standards. Among the best are verifiable goals or objectives, as suggested in the discussion of managing by objectives. You will learn more about standards later, especially those that point out deviations at critical points.

2. Measurement of Performance:

Although such measurement is not always practicable, the measurement of performance against standards should ideally be done on a forward-looking basis so that deviations may be detected in advance of their occurrence and avoided by appropriate actions. The alert, forward-looking manager can sometimes predict departures from standards. In the absence of such ability, however, deviations should be disclosed as early as possible.

3. Correction of Deviations:

Standards should reflect the various positions in an organization structure. If performance is measured accordingly, it is easier to correct deviations. Managers know exactly where, in the assignment of individual or groups duties, the corrective measures must be applied.

Correction of deviations is the point at which control can be seen as a part of whole system of management and can be related to the other managerial functions. Managers may correct deviations by redrawing their plans or by modifying their goals. (This is an exercise of the


principle of navigational change.) Or they may correct deviations by exercising their organzing function through reassignment or clarification of duties. They may correct, also, by additional staffing, by better selection and training of subordinates, or by that ultimate restaffing measure-firing. Another way is to correct through better leading-fuller explanation of the job or more effective leadership.

Requirements of Effective Controls

1. Focus on Objectives and Needs

The effective control system should emphasis attainment of organizational objectives and therefore it should be designed in accordance with practical needs of the enterprise. For example, the marketing department may use pre-controls for introduction of new products into the market, and current control for specific advertisements. Similarly, more sophisticated and broad ranging controls may be developed for production managers than for a shop floor supervisor. Thus, controls should be tailored to plans and positions.

2. Prompt Indicator

An ideal control system could detect and report significant deviation as promptly as possible so that necessary corrective action may be taken adequately in time. This needs an efficient system of appraisal and flow of information. Rapid reporting of variations of the core of control.

3. Forward Looking

Control should be future-oriented, marketing valuable forecasts to the managers so that they become aware of the problems likely to confront them in the future.

4. Understandable and Economical

Control tools and techniques adopted should be such as are clearly understandable by the managers. They must know all the details and critical points in the control device as well as its usefulness. If developed and complex statistical and mathematical techniques are adopted, then proper training should be imparted to the persons who are supposed to execute such control system. Besides the control system should be worth its costs. Expensive and elaborate control system will not suit, for example to small enterprise.

5. Control by Functions and Factor

Control should emphasis function, such as production, marketing, finance, human resources, etc it should also focus on four factors, quality, quantity, time use and costs. Not one but multiple controls should be adopted.

6. Strategic Points Control

Every detail or thing is not be controlled in order to save time, cost and effort. Certain strategic or vital points in the functioning of an enterprise must be identified and appropriate


control devices should be designed and imposed at those stages. Thus, only critical, major deviations should be attended to and control should concentrate on exceptional problems only. Control should be selective and concentrate on key result areas of the company.

7. Flexible

It means that the control system should be able to accommodate such modifications or revisions as are made necessary in the wake of rapidly changing and complex organizational environment. Control must not become ends in themselves. They must be suited to the environment in which an organisation finds itself. Flexibility in control system is generally achieved by the use of alternative plans or flexible budgets.

8. Objective

To the maximum possible extent, controls, i.e., standards of performance should be objective (unbiased) and specific. For this purpose control measures should be verifiable or quantified. Standards should be determined based on facts and participation.

9. Indicative as well as Suggestive

Controls should not only be able to point to the deviations, but they should also suggest corrective action that is supposed to check the recurrence of variations or problems in future.

10. Correct Action at Correct Time

A significant test of the effectiveness of a control system is whether correct action is taken at correct time.

11. Attention to Human Factor or Emphasis on Self-Control Aspect

It is said that excess control causes corruption. Control system should be designed is such a way, as it does not arouse negative reactions among organizational people. Good controls are designed to develop positive feelings in the members by focusing on work and not on worker. It facilities creative action within properly laid down limits. The aim of control should be to create self-control among members. For this purpose, the tendency over the years has been toward such techniques as participative budgeting and human resources accounting.