Organization and Management

Organization and Management Notes(Collected)

Management by Exception

Management by Exception is a “policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results. The idea is that management should spend its valuable time concentrating on the more important items (such as shaping the company’s future strategic course). Attention is given only to material deviations requiring investigation.” It is not entirely synonymous with the concept of exception management in that it describes a policy where absolute focus is on exception management, in contrast to moderate application of exception management. In Project Management, an implication of Management by Exception is that the project board should meet when key decisions about the project should be taken, and not on regular intervals. The Project Manager should produce an Exception Report to summon the board for such meetings.

Scientific Management

Scientific management, also called Taylorism, was a theory of management that analyzed and synthesized workflows. Its main objective was improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes and to management. Its development began with Frederick Winslow Taylor in the 1880s and 1890s within the manufacturing industries. Its peak of influence came in the 1910s; by the 1920s, it was still influential but had begun an era of competition and syncretism with opposing or complementary ideas. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s, most of its themes are still important parts of industrial engineering and management today. These include analysis; synthesis; logic; rationality; empiricism; work ethic; efficiency and elimination of waste; standardization of best practices; disdain for tradition preserved merely for its own sake or merely to protect the social status of particular workers with particular skill sets; the transformation of craft production into mass production; and knowledge transfer between workers and from workers into tools, processes, and documentation.

Scientific management’s application was contingent on a high level of managerial control over employee work practices. This necessitated a higher ratio of managerial workers to laborers than previous management methods. The great difficulty in accurately differentiating any such intelligent, detail-oriented management from mere misguided management also caused interpersonal friction between workers and managers.

Consultative/Participative Management

Among the three main management styles (autocratic, consultative and democratic), the consultative management style is where managers consult other team members before arriving at a decision. This is in contrast to autocratic management style wherein the manager gives instructions.

Type of management in which employees at all levels are encouraged to contribute ideas towards identifying and setting organizational-goals, problem solving, and other decisions that may directly affect them. Also called consultative management. Therefore, listening skills and right consulting channel creation are essential skills a consultative manager should possess.

Strategic Planning

Strategic planning is an organization‘s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the “strategic plan.” While strategic planning may be used to effectively plot a company’s longer-term direction, one cannot use it to reliably forecast how the market will evolve and what issues will surface in the immediate future. Therefore, strategic innovation and tinkering with the “strategic plan” have to be a cornerstone strategy for an organization to survive the turbulent business climate.Strategic planning is the formal consideration of an organization’s future course. All strategic planning deals with at least one of three key questions:

“What do we do?”

“For whom do we do it?”

“How do we excel?”

In business strategic planning, some authors phrase the third question as “How can we beat or avoid competition?” (Bradford and Duncan, page 1). But this approach is more about defeating competitors than about excelling.

In today’s highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track. A simplified view of the strategic planning process is shown by the following diagram:

The Strategic Planning Process

Mission and Objectives, Environmental Scan: The environmental scan includes the following components: Internal analysis of the firm, Analysis of the firm’s industry (task environment), External macroenvironment Strategy Formulation: Strategy Implementation:Evaluation & Control: Evaluation and control consists of the following steps:

  1. Define parameters to be measured
  2. Define target values for those parameters
  3. Perform measurements
  4. Compare measured results to the pre-defined standard
  5. Make necessary changes


Planning in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired goal on some scale. As such, it is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans, that is, it combines forecasting of developments with the preparation of scenarios of how to react to them. An important, albeit often ignored aspect of planning, is the relationship it holds with forecasting. Forecasting can be described as predicting what the future will look like, whereas planning predicts what the future should look like. The term is also used for describing the formal procedures used in such an endeavor, such as the creation of documents, diagrams, or meetings to discuss the important issues to be addressed, the objectives to be met, and the strategy to be followed. Beyond this, planning has a different meaning depending on the political or economic context in which it is used.

Types of plan

Tactical plans: A tactical plan is concerned with what the lower level units within each division must do, how they must do it, and who is in charge at each level. Tactics are the means needed to activate a strategy and

Strategic plans: A strategic plan is an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments. Strategic planning begins with an organization’s mission.

Contingency plans: Intelligent and successful management depends upon a constant pursuit of adaptation, flexibility, and mastery of changing conditions. Strong management requires a “keeping all options open” approach at all times — that’s where contingency planning comes in.

Inter-Branch Reconciliation

Inter-branch reconciliation is a major activity for banks and financial institutions looking to create a balanced co-ordination between their various branches and their activities. TechMech offers inter-branch reconciliation services whereby our trained professionals cover every transaction, exchange of services and other interactions between different branches of a bank or subsidiaries of a company. Our experts ensure a keen attention to detail, covering every interaction in depth, so as not to miss out on any inherent flaws or discrepancy.

Inter-branch reconciliation can help the organisation discover any errors or negligence in transactions and make due changes. Our experts, with their detailed financial knowledge, can help to not only find errors but also facilitate in removing or minimizing them. We are trained to handle large volumes of financial data and have worked with companies of all scales.

Job Analysis

A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. You need as much data as possible to put together a job description, which is the frequent outcome of the job analysis. Additional outcomes include recruiting plans, position postings and advertisements, and performance development planning within your performance management system.

Job analysis is the formal process of identifying the content of a job in terms activities involved and attributes needed to perform the work and identifies major job requirements. Job analysis was conceptualized by two of the founders of industrial/organizational psychology, Frederick Taylor and Lillian Moller Gilbreth in the early 20th century. Job analyses provide information to organizations which helps to determine which employees are best fit for specific jobs. Through job analysis, the analyst needs to understand what the important tasks of the job are, how they are carried out, and the necessary human qualities needed to complete the job successfully.

The job analysis may include these activities:

  • reviewing the job responsibilities of current employees,
  • doing Internet research and viewing sample job descriptions online or offline highlighting similar jobs,
  • analyzing the work duties, tasks, and responsibilities that need to be accomplished by the employee filling the position,
  • researching and sharing with other companies that have similar jobs, and
  • articulation of the most important outcomes or contributions needed from the position.

Job evaluation

A job evaluation is a systematic way of determining the value/worth of a job in relation to other jobs in an organization. It tries to make a systematic comparison between jobs to assess their relative worth for the purpose of establishing a rational pay structure.

Job evaluation is a method for comparing different jobs to provide a basis for a grading and pay structure. Its aim is to evaluate the job, not the jobholder, and to provide a relatively objective means of assessing the demands of a job. It is an assessment of the relative worth of various jobs on the basis of a consistent set of job and personal factors, such as qualifications and skills required.

The objective of job evaluation is to determine which jobs should get more pay than others. Several methods such as job ranking, job grading, and factor comparison are employed in job evaluation. Research indicates, however, that each method is nearly as accurate and reliable as the other in ranking and pricing different jobs. Job evaluation forms the basis for wage and salary negotiations.

The job evaluation process established the relative value of jobs throughout the university. There are two steps involved in this process:

  1. Job Analysis and Job Description – Using a “job profile,” the content of each job is analyzed to identify key duties, responsibilities, and qualification necessary to perform the job. Written job descriptions are then prepared to contain this information.
  2. Job Evaluation – A computer assisted job evaluation plan, measuring 17 dimensions of nonexempt work and 28 dimensions of exempt work, is used to evaluate the relative worth of staff positions. This evaluation process focuses on valuing the content of each position in terms of a series of well defined compensable factors.

Job description

A job description is a list that a person might use for general tasks, or functions, and responsibilities of a position. It may often include to whom the position reports, specifications such as the qualifications or skills needed by the person in the job, or a salary range. Job descriptions are usually narrative,[1] but some may instead comprise a simple list of competencies; for instance, strategic human resource planning methodologies may be used to develop a competency architecture for an organization, from which job descriptions are built as a shortlist of competencies.

Job descriptions are written statements that describe the:

  • duties,
  • responsibilities,
  • most important contributions and outcomes needed from a position,
  • required qualifications of candidates, and
  • reporting relationship and coworkers of a particular job.

Job descriptions are based on objective information obtained through job analysis, an understanding of the competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work.

The best job descriptions are living, breathing documents that are updated as responsibilities change. They do not limit employees, but rather, cause them to stretch their experience, grow their skills, and develop their ability to contribute within their organization.

Merit Rating

System of rating employees on the basis of factors such as absenteeism, adaptability, attitude, health, length of service, punctuality, and safety record. It is a Computing premium on a policy (such as for auto insurance) on the basis of an insured’s loss record.

The main objectives for merit rating:

  1. employee rating achieved through a periodic employee evaluation system, often used as the basis for pay increases and/or promotion.
  2. rating achieved on a standard civil-service type merit examination, signifying the level of achievement on the exam.


Electronic commerce, commonly known as ecommerce, is a type of industry where buying and selling of product or service is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices social media, and telephones as well.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.

E-commerce can be divided into:

  • E-tailing or “virtual storefronts” on websites with online catalogs, sometimes gathered into a “virtual mall”
  • The gathering and use of demographic data through Web contacts and social media
  • Electronic Data Interchange (EDI), the business-to-business exchange of data
  • E-mail and fax and their use as media for reaching prospective and established customers (for example, with newsletters)
  • Business-to-business buying and selling
  • The security of business transactions

The road to creating a successful online store can be a difficult if unaware of eCommerce principles and what commerce is supposed to do for your online business. Researching and understanding the guidelines required to properly implement an e-business plan is a crucial part to becoming successful with online store building.

Mobile Banking

Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or personal digital assistant.

Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely,[1] analogously to the use of a debit or credit card to effect an EFTPOS payment.

The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers.

In today world Mobile Banking is a popular term. Mobile Banking means a financial transaction conducted by logging on to a bank’s website using a cell phone, such as viewing account balances, making transfers between accounts, or paying bills. It is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a mobile phone. In recent time Mobile banking is most often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.

Mobile Banking concept

In general term we can categorized the mobile banking below –

* Mobile Accounting

* Mobile Brokerage

* Mobile Financial Information Services

Mobile banking can offer services such as the following:

* Mini-statements and checking of account history

* Alerts on account activity or passing of set thresholds

* Monitoring of term deposits

* Access to loan statements

* Mutual funds / equity statements

* Insurance policy management

* Pension plan management

* Status on cheque, stop payment on cheque

* Ordering check books

* Balance checking in the account

* Recent transactions

* Due date of payment (functionality for stop, change and deleting of payments)

* PIN provision, Change of PIN and reminder over the Internet

* Domestic and international fund transfers

* Mobile recharging

* Commercial payment processing

* Bill payment processing

* Peer to Peer payments

Online banking

Computerized service that allows a bank’s customers to get online with the bank via telephone lines to view the status of their account(s) and transaction history. It is system allowing individuals to perform banking activities at home, via the internet. It usually also allows them to transfer funds, pay bills, request check The performance of banking activities via the Internet. Online banking is also known as “Internet banking” or “Web banking.” A good online bank will offer customers just about every service traditionally available through a local branch, including accepting deposits (which is done online or through the mail), paying interest on savings and providing an online bill payment system.

Online banking is a service offered by banks that allows account holders to access their account data via the Internet. In order to take advantage of online banking, an account holder would need to meet several technological requirements, such as having a personal computer with Internet access and web browser. If those conditions are satisfied, online banking can be performed from anywhere in the world. To minimize the risk of fraud, online banking is enabled through a secure server, which grants the individual a private access to his or her bank account. Online banking is designed to streamline banking chores that otherwise require considerable time and effort. Thus, online banking facilitates direct access to account details, enables transfer of funds, allows for multiple bills payments, and performs an array other transactions. Online banking is available twenty four hours, seven days a week, regardless of the bank’s working hours. Today, most banks offer online banking services.

The common features fall broadly into several categories

  • A bank customer can perform some non-transactional tasks through online banking, including –
    • viewing account balances
    • viewing recent transactions
    • downloading bank statements, for example in PDF format
    • viewing images of paid cheques
    • ordering cheque books
    • download periodic account statements
    • Downloading applications for M-banking, E-banking etc.
  • Bank customers can transact banking tasks through online banking, including –
    • Funds transfers between the customer’s linked accounts
    • Paying third parties, including bill payments (see, e.g., BPAY) and telegraphic/wire transfers
    • Investment purchase or sale
    • Loan applications and transactions, such as repayments of enrollments
    • Register utility billers and make bill payments
  • Financial institution administration
  • Management of multiple users having varying levels of authority
  • Transaction approval process

Communication Process

The sharing of meaningful information between two or more people with the goal of the receiver understanding the sender’s intended message. In business, the effectiveness of a company’s internal and external communication process is often very important to its overall success.

Communication (from Latin “communis“, meaning to share) is the activity of conveying information through the exchange of thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior.

The communication process is the guide toward realizing effective communication. It is through the communication process that the sharing of a common meaning between the sender and the receiver takes place. Individuals that follow the communication process will have the opportunity to become more productive in every aspect of their profession. Effective communication leads to understanding.


The communication process is made up of four key components. Those components include encoding, medium of transmission, decoding, and feedback. There are also two other factors in the process, and those two factors are present in the form of the sender and the receiver. The communication process begins with the sender and ends with the receiver.

Communication requires a sender, a message, and a recipient, although the receiver doesn’t have to be present or aware of the sender’s intent to communicate at the time of communication; thus communication can occur across vast distances in time and space. Communication requires that the communicating parties share an area of communicative commonality. The communication process is complete once the receiver has understood the message of the sender.


Leadership has been described as “a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task“. Other in-depth definitions of leadership have also emerged.

The ability of a company’s management to make sound decisions and inspire others to perform well. Effective leaders are able to set and achieve challenging goals, to take swift and decisive action even in difficult situations, to outperform their competition, to take calculated risks and to persevere in the face of failure. Strong communication skills, self-confidence, the ability to manage others and a willingness to embrace change also characterize good leaders.

Leadership is “organizing a group of people to achieve a common goal”. The leader may or may not have any formal authority. Studies of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence, among others. Somebody whom people follow: somebody who guides or directs others.

 Leadership involves

(1) establishing a clear vision,

(2) sharing that vision with others so that they will follow willingly,

(3) providing the information, knowledge and methods to realize that vision, and

(4) coordinating and balancing the conflicting interests of all members and stakeholders.

A leader steps up in times of crisis, and is able to think and act creatively in difficult situations. Unlike management, leadership cannot be taught, although it may be learned and enhanced through coaching or mentoring. Someone with great leadership skills today is Bill Gates who, despite early failures, with continued passion and innovation has driven Microsoft and the software industry to success.

Human Resource Development (HRD)

The part of human resource management that specifically deals with training and development of the employees.Human resource development includes training an individual after he/she is first hired, providing opportunities to learn new skills, distributing resources that are beneficial for the employee’s tasks, and any other developmental activities.

Human Resources Development (HRD) as a theory is a framework for the expansion of human capital within an organization through the development of both the organization and the individual to achieve performance improvement.[1] Adam Smith states, “The capacities of individuals depended on their access to education”. The same statement applies to organizations themselves, but it requires a much broader field to cover both areas.

Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.

The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.

Human Resource Development is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.


The process of grouping of activities into units for the purpose of administration is called departmentation. It can be defined “as the process by which activities or functions of enterprise are grouped homogeneously into different groups.”

The administrative units are called divisions, units or departments. The followings are the basis of departmentation:

(a) When departmentation is done on the bask of functions the departments created are production, marketing, accounting, finance and personnel departments.

(b) When departmentation is done on the basis of geographical area, the departments are known as eastern department, western department, northern and southern department.

(c) Departmentation can be done on the basis of customers.

(d) Departmentation can be done on the basis of product handled.

Departmentation is a process resulting out of choice to group tasks according to some criterion. The resultant process of departmentation includes decisions regarding segregating organizational work, allocation of work to persons, telling all involved who is in charge and provide for the support needed by those. Given the nature of these choices and decisions, departmentation and the criteria or bases used for creating departments can have serious impact on the organization’s effectiveness. Nine bases of departmentation are common among managerial choices:

Departmentation by numbers, Departmentation by time of duty,  Departmentation by function,  Departmentation by Process or Equipment, Departmentation by Location or territory, Departmentation by Product,  Departmentation by Customer,  Departmentation by Market or Distribution Channel,  Departmentation by Services.

Departmentation by Customers

Some advantages of this type of structure are:

  • Greater specialized customer service.
  • Where marketing channels are considerably different for various types of customers, this type of structure is very useful.

Some disadvantages of this type are:

  • May not be enough work for certain types of customers. Hence, under employment of facilities and manpower specialized in terms of customer groups.
  • Problems of co-ordination might pose difficulties.
  • Unequal development of customer groups.


Centralisation, or centralization (see spelling differences), is the process by which the activities of an organisation, particularly those regarding planning and decision-making, become concentrated within a particular location and/or group.

The term has a variety of meanings in several fields. In political science, centralisation refers to the concentration of a government‘s power – both geographically and politically – into a centralised government. In neuroscience, centralisation refers to the evolutionary trend of the nervous system to be partitioned into a central nervous system and peripheral nervous system. In business studies, centralisation and decentralisation refer to where decisions are made in the chain of command.

Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, “Centralization” is the systematic and consistent reservation of authority at central points in the organization. The implication of centralization can be:-

  1. Reservation of decision making power at top level.
  2. Reservation of operating authority with the middle level managers.
  3. Reservation of operation at lower level at the directions of the top level.

The degree of centralization and decentralization will depend upon the amount of authority delegated to the lowest level. According to Allen, “Decentralization refers to the systematic effort to delegate to the lowest level of authority except that which can be controlled and exercised at central points.


Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management.

Decentralization is not the same as delegation. In fact, decentralization is all extension of delegation. Decentralization pattern is wider is scope and the authorities are diffused to the lowest most level of management. Delegation of authority is a complete process and takes place from one person to another. While decentralization is complete only when fullest possible delegation has taken place. For example, the general manager of a company is responsible for receiving the leave application for the whole of the concern. The general manager delegates this work to the personnel manager who is now responsible for receiving the leave applicants. In this situation delegation of authority has taken place. On the other hand, on the request of the personnel manager, if the general manager delegates this power to all the departmental heads at all level, in this situation decentralization has taken place. There is a saying that “Everything that increasing the role of subordinates is decentralization and that decreases the role is centralization”. Decentralization is wider in scope and the subordinate’s responsibility increase in this case. On the other hand, in delegation the managers remain answerable even for the acts of subordinates to their superiors.

Implications of Decentralization
  1. There is less burden on the Chief Executive as in the case of centralization.
  2. In decentralization, the subordinates get a chance to decide and act independently which develops skills and capabilities. This way the organization is able to process reserve of talents in it.
  3. In decentralization, diversification and horizontal can be easily implanted.
  4. In decentralization, concern diversification of activities can place effectively since there is more scope for creating new departments. Therefore, diversification growth is of a degree.
  5. In decentralization structure, operations can be coordinated at divisional level which is not possible in the centralization set up.
  6. In the case of decentralization structure, there is greater motivation and morale of the employees since they get more independence to act and decide.


Motivation is a psychological feature that arouses an organism to act towards a desired goal and elicits, controls, and sustains certain goal directed behaviors. It can be considered a driving force; a psychological one that compels or reinforces an action toward a desired goal. For example, hunger is a motivation that elicits a desire to eat.

Motivation is an inner drive to behave or act in a certain manner. It’s the difference between waking up before dawn to pound the pavement and lazing around the house all day. These inner conditions such as wishes, desires, goals, activate to move in a particular direction in behavior.

Motivation is the driving force by which humans achieve their goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but it can also be used to describe the causes for animal behavior as well.  According to various theories, motivation may be rooted in a basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion.

Job Satisfaction

Locke and Lathan (1976) give a comprehensive definition of job satisfaction as pleasurable or positive emotional state resulting from the appraisal of ones job or job experience. Job satisfaction is a result of employee’s perception of how well their job provides those things that are viewed as important.

The relationship between job satisfaction and motivation at work has been one of the widely researched areas in the field of management in relation to different professions, but in Pakistan very few studies have explored this concept especially on banking sectors employees. According to Khan (1997), in the current business environment, organizations in all industries are experiencing rapid change, which is accelerating at an enormous speed. Finck et al. (1998) also stated that companies must recognize that the human factor is becoming much more important for organizational survival, and that business excellence will only be achieved when employees are excited and motivated by their work. In addition, difficult circumstances, such as violence, tragedy, fear, and job insecurity create severe stress in employees and result in reduced workplace performance (Klein, 2002). According to Watson (1994) business has come to realize that a motivated and satisfied workforce can deliver powerfully to the bottom line. Since employee performance is a joint function of ability and motivation, one of management’s primary tasks, therefore, is to motivate employees to perform to the best of their ability (Moorhead & Griffin, 1998).

Primary and secondary needs

Murray identified needs as one of two types:

  1. Primary Needs
  2. Primary needs are based upon biological demands, such as the need for oxygen, food, and water.
  3. Secondary Needs
  4. Secondary needs are generally psychological, such as the need for nurturing, independence, and achievement.

Theory X

In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee’s compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee’s interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager’s job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses.

 Theory Y

In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It’s human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them. This theory is a positive view to the employees, meaning that the employer is under a lot less pressure than some one who is to influenced by a theory X management style.

 “You can not motivate managers. They are self propelled.” Comment on the statements.

Self propelled describes something that moves, progresses or acts on its own power without needing outside help. Like anything else, leadership ability is distributed throughout a population. Can you be a good leader without being a good manager? In my experience, the best leaders are also great managers, and the best managers have strong leadership capabilities. To be successful, you must have both a passion for improving your organization and the capability to drive your efforts through to completion. Some people are “natural” leaders, others prefer to operate capably within a well-defined context, and many people are somewhere in between. Natural leaders have important core abilities, but they often need careful training in the more practical aspects of converting a creative vision into a concrete program of action. Very often, they need to understand the length of the change lifecycle so they don’t underestimate the importance of persistence. Most people, however, can develop their leadership skills by working at it. The process starts with the recognition that leadership requires “ambidextrous” activities. The first hurdle is recognizing that excellence at the day-to-day is critical, but it is not enough. The second is the need to look inside yourself and decide whether you are willing to be uncomfortable for a prolonged period while you conceptualize and lead the change. The ultimate reward is the deep satisfaction that comes from seeing something new that wouldn’t have been there if you had not created it. Once you decide to become a leader, you can develop the characteristics you’ll need by being thoughtful about the accomplishments that you want on your resume, and deciding to devote the time and attention needed to achieve them. Like anything else, practice makes perfect. To be a great leader, you need a certain level of intellect, but not necessarily great genius. You need a certain level of social skills, but not necessarily those of a great salesperson. However, you do need a compulsion to operate at two levels: to be a great doer, and a great reflector. Most importantly, to be a great leader, you need to find what you really like. That’s where the passion, commitment, and integrity come from. In my experience, the most important underlying factor in leadership is whether a person has searched out and found a great match between what’s in his or her heart, which is what he or she really enjoys, and the work situation. Think about the definition of leaders, “people who leave their footprints in their areas of passion.” It’s easy to focus on the first part, how to leave footprints. But the real power comes from the second, working in your area of passion.

To what extent and how is money an effective motivation.

Despite the fact that most of the world works for the sake of financial reward, the need for money only obliges us to undertake certain sort of work, but doesn’t motivate in actual fact. For example, one of the theories of human motivation – ‘Money as a motivator theory’ is grounded on the belief that the need for money primarily motivates all workers (“Theories of Human,” 2004). Nonetheless, such a statement is true just to a limited extent, to say the least. Although the very word “money” (which in final outcome aims to ensure greater happiness) would be the most common reply to the question of whatever causes us to work, in its own right it lags behind the variety of other human values. “A simple pay raise, naturally not identified as part of the corporate culture, would be defined as an external motivator. Pay is expected, needed, and required – it is not necessarily an identifier of either corporate or personal identity” (Grossman, n.d., A brief pause section, para. 2). “Psychologists have been finding that rewards can lower performance levels, especially when the performance involves creativity” (Kohn, n.d., Introduction section, para. 2). Furthermore, “if a reward – money, awards, praise, or winning a contest – comes to be seen as the reason one is engaging in an activity, that activity will be viewed as less enjoyable in its own right” (Kohn, n.d.). Herzberg said about ‘salary’: “…when salary occurred as a factor in the lows (causes of dissatisfaction) it revolved around the unfairness of the wage system within the company… It was the system of salary administration that was being described… as something that went along with a person’s achievement on the job. It was a form of recognition; it meant more than money; it meant a job well done; it meant that the individual was progressing in his work…”

Explain the Maslows Need Hirarcy theory of motivation. State why it is criticized?

The Maslow’s Hierarchy of Needs five-stage model below (structure and terminology – not the precise pyramid diagram itself) is clearly and directly attributable to Maslow; later versions of the theory with added motivational stages are not so clearly attributable to Maslow. These extended models have instead been inferred by others from Maslow’s work. Specifically Maslow refers to the needs Cognitive, Aesthetic and Transcendence (subsequently shown as distinct needs levels in some interpretations of his theory) as additional aspects of motivation, but not as distinct levels in the Hierarchy of Needs. Each of us is motivated by needs. Our most basic needs are inborn, having evolved over tens of thousands of years. Abraham Maslow’s Hierarchy of Needs helps to explain how these needs motivate us all. Maslow’s Hierarchy of Needs states that we must satisfy each need in turn, starting with the first, which deals with the most obvious needs for survival itself. Only when the lower order needs of physical and emotional well-being are satisfied are we concerned with the higher order needs of influence and personal development. Conversely, if the things that satisfy our lower order needs are swept away, we are no longer concerned about the maintenance of our higher order needs. Maslow’s original Hierarchy of Needs model was developed between 1943-1954, and first widely published in Motivation and Personality in 1954. At this time the Hierarchy of Needs model comprised five needs. This original version remains for most people the definitive Hierarchy of Needs.1. Biological and Physiological needs – air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs – protection from elements, security, order, law, limits, stability, etc.3. Belongingness and Love needs – work group, family, affection, relationships, etc.4. Esteem needs – self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs – realising personal potential, self-fulfillment, seeking personal growth and peak experiences.

Describe the various theories of motivation

Instinct Theory of Motivation: According to instinct theories, people are motivated to behave in certain ways because they are evolutionarily programmed to do so. An example of this in the animal world is seasonal migration. These animals do not learn to do this, it is instead an inborn pattern of motivation.

Incentive Theory of Motivation: The incentive theory suggests that people are motivated to do things because of external rewards. For example, you might be motivated to go to work each day for the monetary reward of being paid. Behavioral learning concepts such as association and reinforcement play an important role in this theory of motivation.

Drive Theory of Motivation: According to the drive theory of motivation, people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs. For example, you might be motivated to drink a glass of water in order to reduce the internal state of thirst. This theory is useful in explaining behaviors that have a strong biological component, such as hunger or thirst. The problem with the drive theory of motivation is that these behaviors are not always motivated purely by physiological needs. For example, people often eat even when they are not really hungry.

Arousal Theory of Motivation: The arousal theory of motivation suggests that people take certain actions to either decrease or increase levels of arousal. When arousal levels get too low, for example, a person might watch and exciting movie or go for a jog. When arousal levels get too high, on the other hand, a person would probably look for ways to relax such as meditating or reading a book. According to this theory, we are motivated to maintain an optimal level of arousal, although this level can vary based on the individual or the situation.

Humanistic Theory of Motivation: Humanistic theories of motivation are based on the idea that people also have strong cognitive reasons to perform various actions. This is famously illustrated in Abraham Maslow’s hierarchy of needs, which presents different motivations at different levels. First, people are motivated to fulfill basic biological needs for food and shelter, as well as those of safety, love and esteem. Once the lower level needs have been met, the primary motivator becomes the need for self-actualization, or the desire to fulfill one’s individual potential.

Herzberg’s theory of motivators

In 1959 Frederick Herzberg developed the Two-Factor theory of motivation. His research showed that certain factors were the true motivators or satisfiers. Hygiene factors, in contrast, created dissatisfaction if they were absent or inadequate. Dissatisfaction could be prevented by improvements in hygiene factors but these improvements would not alone provide motivation.

He concluded that such factors as company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction.

Herzberg showed that to truly motivate an employee a business needs to create conditions that make him or her feel fulfilled in the workplace.

Limitations of Two-Factor Theory:
  1. The two-factor theory overlooks situational variables.
  2. Herzberg assumed a correlation between satisfaction and productivity. But the research conducted by Herzberg stressed upon satisfaction and ignored productivity.
  3. No comprehensive measure of satisfaction was used. An employee may find his job acceptable despite the fact that he may hate/object part of his job.
  4. The theory ignores blue-collar workers. Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.
  5. Motivation as a need satisfying process” Explain from your view point.

Basically, motivation stems from a desire to satisfy a need. Understanding the motivation theory, the hierarchy of needs, helps management with the business and the employees. This is based on Abraham Maslow’s motivation theory that says that individuals are motivated to satisfy a number of  needs in a hierarchy and people move from the basic needs to a higher level needs only after the basic one is satisfied. Until the need is satisfied, other needs have little effect on an individual’s behaviour. In other words, we satisfy the most prepotent needs first and then progress to the less pressing ones. As one need becomes satisfied, that need becomes less important; other needs loom up and become motivators of our behavior. Maslow’s Needs Hierarchy is :

1. Physical – such as food, clothing and shelter.

2. Security – which is the feeling a safety, and the assurance of continued satisfaction of physical needs.

3. Social – this is the feeling of belonging, love, affection. It could be expressed in belonging to the
organization or the immediate work group. Have affiliation of some sort, be a part of something.

4. Safety – the need to have physical safety and psychological security, the desire for self esteem and the esteem of others. This is done through increasing competence and development programs. Expressed through recognition, titles, offices, awards.

5. Self Actualization – Self fulfillment. Reaching maximum potential. Management should socus on continuous growth.

  1. Explain briefly the method of motivating people according to the theory of David C.Mc Clelland.

One of McClelland’s most well known theories is that human motivation, is dominated by three needs. McClelland’s theory, sometimes referred to as the three need theory or as the learned needs theory, categories . The importance of each of these needs will vary from one person to another. If you can determine the importance of each of these needs to an individual, it will help you decide how to influence that individual. McClelland asserted that a person’s needs are influenced by their cultural background and life experiences. He also asserted that the majority of these needs can be classified as the needs for affiliation, achievement or power. A person’s motivation and effectiveness can be increased through an environment, which provides them with their ideal mix of each of the three needs (N-Ach, N-Pow and/or N-Affil).

The need for affiliation (N-Affil); This is the need for friendly relationships and human interaction. There is a need “to feel liked” and “accepted” by others. A person with a high need for affiliation is likely to be a team player and thrive in a customer services environment. They will perform best in a co-operative environment. McClelland said that a strong need for affiliation will interfere with a manager’s objectivity. The “need to be liked” will affect a manager’s decisions, prompting them to make decisions to increase their popularity rather than furthering the interests of the organisation.

The need for power (N-Pow); This is the need to lead others and make an impact.This need can exhibit itself in two ways. The first which is the need for personal power may be viewed as undesirable as the person simply needs to feel that they have “power over others”. They don’t have to be effective or further the objectives of their employer.The second type of “need for power” is the need for institutional power. People with the need for institutional power; want to direct the efforts of their team, to further the objectives of their organisation.

The need for achievement (N-Ach); This is the need to achieve, excel and succeed. A person with this type of need, will set goals that are challenging but realistic. The goals have to be challenging so that the person can feel a sense of achievement. However the goals also have to be realistic as the person believes that when a goal is unrealistic, its achievement is dependant on chance rather than personal skill or contribution. This type of person prefers to work alone or with other high achievers. They do not need praise or recognition, achievement of the task is their reward.

Define organizational behavior.

The study of the way people interact within groups. Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers. Organizational behavior theories are used for human resource purposes to maximize the output from individual group members.

There are a variety of different models and philosophies of organizational behavior. Areas of research include improving job performance, increasing job satisfaction, promoting innovation and encouraging leadership. In order to achieve the desired results, managers may adopt different tactics, including reorganizing groups, modifying compensation structures and changing the way performance is evaluated.

  1. What are the three levels of analysis in a organizational behavior?

Individual level

in individual level organizational behavior involves the study of learning, perception, creativity, motivation, personality, turnover, task performance, cooperative behavior, deviant behavior, ethics, and cognition. At this level of analysis, organizational behavior draws heavily upon psychology, engineering, and medicine.

Group level

At the group level of analysis, organizational behavior involves the study of group dynamics, intra- and inters group conflict and cohesion, leadership, power, norms, interpersonal communication, networks, and roles. At this level of analysis, organizational behavior draws upon the sociological and socio-psychological sciences

Organizational level

At the organization level of analysis, organizational behavior involves the study of topics such as organizational culture, organizational structure, cultural diversity, inter-organizational cooperation and conflict, change, technology, and external environmental forces. At this level of analysis, organizational behavior draws upon anthropology and political science.

  1. What is a contingency approach to organizational behavior?

The contingency approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. Managers have always asked questions such as “What is the right thing to do? Should we have a mechanistic or an organic structure? A functional or divisional structure? Wide or narrow spans of management? Tall or flat organizational structures? Simple or complex control and coordination mechanisms? Should we be centralized or decentralized? Should we use task or people oriented leadership styles? What motivational approaches and incentive programs should we use?” The contingency approach to management (also called the situational approach) assumes that there is no universal answer to such questions because organizations, people, and situations vary and change over time. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies.

  1. Q. What is an organization? Is the family unit an organization? Explain.

An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon – as we know `organ` – and it means a compartment for a particular job.

A social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. All organizations have a management structure that determines relationships between functions and positions, and subdivides and delegates roles, responsibilities, and authority to carry out defined tasks. Organizations are open systems in that they affect and are affected by the environment beyond their boundaries.

Family unit is an organization:It is good to remember a family is an organization. In fact, it is the basic organization of society. This is just one of the reasons I am such a proponent of family meetings. You wouldn’t think of running a successful business without a plan, goal setting meetings, team building sessions and clear missions and expectations. As such, everyone in the family should have an equivalent of a job description. Each person’s job description helps him define his roles and responsibilities in the family. Just like in the workplace, the clearer the job description and the more input is solicited from the participant, the more ownership is established. If you have ever worked in a workplace where no one knew what their job was day to day and rules were arbitrary, you will recall how chaotic and frustrating it was for everyone. The following information on structuring a family council has been compiled in part from information contained in The Parent’s Handbook by Dinkmeyer & McKay, as well twenty five years of personal experience.

  1. State different types of organization structure that you know of.

The study of organizations includes a focus on optimizing organizational structure. According to management science, most human organizations fall roughly into four types:

Pyramids or hierarchies: A hierarchy exemplifies an arrangement with a leader who leads other individual members of the organization. This arrangement is often associated with bureaucracy. These structures are formed on the basis that there are enough people under the leader to give him support. Just as one would imagine a real pyramid, if there are not enough stone blocks to hold up the higher ones, gravity would irrevocably bring down the monumental structure. So one can imagine that if the leader does not have the support of his subordinates, the entire structure will collapse. Hierarchies were satirized in The Peter Principle (1969), a book that introduced hierarchiology and the saying that “in a hierarchy every employee tends to rise to his level of incompetence.”

Committees or juries: These consist of a group of peers who decide as a group, perhaps by voting. The difference between a jury and a committee is that the members of the committee are usually assigned to perform or lead further actions after the group comes to a decision, whereas members of a jury come to a decision. In common law countries, legal juries render decisions of guilt, liability and quantify damages; juries are also used in athletic contests, book awards and similar activities. Sometimes a selection committee functions like a jury. In the Middle Ages, juries in continental Europe were used to determine the law according to consensus amongst local notables.

Matrix organization: This organizational type assigns each worker two bosses in two different hierarchies. One hierarchy is “functional” and assures that each type of expert in the organization is well-trained, and measured by a boss who is super-expert in the same field. The other direction is “executive” and tries to get projects completed using the experts. Projects might be organized by products, regions, customer types, or some other schema.

Ecologies: This organization has intense competition. Bad parts of the organization starve. Good ones get more work. Everybody is paid for what they actually do, and runs a tiny business that has to show a profit, or they are fired. Companies who utilize this organization type reflect a rather one-sided view of what goes on in ecology. It is also the case that a natural ecosystem has a natural border – ecoregions do not in general compete with one another in any way, but are very autonomous.

  1. What is an informal organization? What are its benefits?

The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviors, interactions, norms, personal and professional connections through which work gets done and relationships are built among people who share a common organizational affiliation or cluster of affiliations. It consists of a dynamic set of personal relationships, social networks, communities of common interest, and emotional sources of motivation. The informal organization evolves organically and spontaneously in response to changes in the work environment, the flux of people through its porous boundaries, and the complex social dynamics of its members. An informal organisation is one which is not reliant on a hierarchical structure, typical of large-scale companies. It is not typical for an entire organisation to be informal, as this could cause problems which are discussed in a moment, but formal organisations do tend to have informal ones within them.  Informal organsations have very loose structures. People can become members freely and sometimes spontaenously; relationships are undefined and the sharing of responsibility and involvement of members will vary considerably.  The best example to give is an organisation’s football team. One might find a managing director, a manager and a manual worker all on the same team- and we know that relationships between them will be very different than in the office place. So, the football team is an informal organisation; the company as a whole is formal since it has increasing levels of power. The advantages of informal organisations are that they create strong relationships between their members. There is no theoretical “boss” and this makes all members feel like a larger part of the organisation as a whole. The disadvantages, which explain why there are few purely informal organisations, are that a lack of structure can result in a reduction in professionalism. The company cannot benefit from different people managing different areas easily. Finally, the members cannot look to the future- after all, with no-one above them, they cannot look for promotion and therefore find themselves stuck with the same job.

  1. Distinguish between formal and informal organization.

Formal organizations:-They are registered org. and are under the control of govt/private sector. These org. are included in organized sector. These org. include MN Cs, Insurance companies, Schools, Malls, etc. In short they are those org. which employ people organisedly. Informal Organisations :- They are not registered and are amongst local basis only. They are those org. which are not under the control of govt. or organised sector. They include small shops, Hockers, etc.

  1. “An organization is a social system”- Explain.

A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries… it exchanges goods, ideas, culture, etc. with the environment around it. Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations. Individualization is when employees successfully exert influence on the social system by challenging the culture.

  1. “Informal organization grow within formal organization” elaborate the statement.

Historically, some have regarded the informal organization as the byproduct of insufficient formal organization—arguing, for example, that “it can hardly be questioned that the ideal situation in the business organization would be one where no informal organization existed.” [1] However, the contemporary approach—one suggested as early as 1925 by Mary Parker Follett, the pioneer of community centers and author of influential works on management philosophy—is to integrate the informal organization and the formal organization, recognizing the strengths and limitations of each. Integration, as Follett defined it, means breaking down apparent sources of conflict into their basic elements and then building new solutions that neither allow domination nor require compromise.[2] In other words, integrating the informal organization with the formal organization replaces competition with coherence. At a societal level, the importance of the relationship between formal and informal structures can be seen in the relationship between civil society and state authority. The power of integrating the formal organization and the informal organization can also be seen in many successful businesses.

  1. Define management and explain its nature.

Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to ‘manage’ oneself, a pre-requisite to attempting to manage others.

Nature of Management.

In for-profit work, management has as its primary function the satisfaction of a range of stakeholders. This typically involves making a profit (for the shareholders), creating valued products at a reasonable cost (for customers) and providing rewarding employment opportunities (for employees). In nonprofit management, add the importance of keeping the faith of donors. In most models of management/governance, shareholders vote for the board of directors, and the board then hires senior management. Some organizations have experimented with other methods (such as employee-voting models) of selecting or reviewing managers; but this occurs only very rarely.

In the public sector of countries constituted as representative democracies, voters elect politicians to public office. Such politicians hire many managers and administrators, and in some countries like the United States political appointees lose their jobs on the election of a new president/governor/mayor.

  1. Universality: Management is an universal phenomenon in the sense that it is common and essential element in all enterprises. Managers perform more or less the same functions irrespective of their position or nature of the organization. The basic principles of management can be applied in all managerial situations regardless of the size, nature and location of the organization. Universality of managerial tasks and principles also implies that managerial skills are transferable and managers can be trained and developed.
  2. Purposeful: Management is always aimed at achieving organizational goals and purposes. The success of management is measured by the extent to which the desired objectives are attained. In both economic and non-economic enterprises, the tasks of management are directed towards effectiveness (i.e., attainment of organizational goals) and efficiency (i.e., goal attainment with economy of resource use).
  3. Social process: Management essentially involves managing people organized in work groups. It includes retaining, Developing and motivating people at work, as well as taking care of their satisfaction as social beings. All these interpersonal relations and interactions makes the management as asocial process.
  4. Coordinating force: Management coordinates the efforts of organization members through orderly arrangement of inter-related activities so as to avoid duplication and overlapping. Management reconciles the individual goals with the organizational goals and integrates human and physical resources.
  5. Intangible: Management is intangible. It is an unseen force. Its presence can be felt everywhere by the results of its effort which comes in the form of orderliness, adequate work output, satisfactory working climate, employees satisfaction etc.
  6. Continuous process: Management is a dynamic and an on-going process. The cycle of management continues to operate so long as there is organised action for the achievement of group goals.
  7. Composite process: Functions of management cannot be undertaken sequentially, independent of each other. Management is a composite process made up of individual ingredients. All the functions are performed by involving several ingredients. Therefore, the whole process is integrative and performed in a network fashion.
  8. Creative organ: Management creates energetic effect by producing results which are more than the sum of individual efforts of the group members. It provides sequence to operations, matches jobs to goals, connects work to physical and financial resources. It provides creative ideas, new imaginations and visions to group efforts. It is not a passive force adopting to external environment but a dynamic life giving element in every organization.
  9. Discuss the systems theory of management.

Systems theory has had a significant effect on management science and understanding organizations. First, let’s look at “what is a system?” A system is a collection of part unified to accomplish an overall goal. If one part of the system is removed, the nature of the system is changed as well. For example, a pile of sand is not a system. If one removes a sand particle, you’ve still got a pile of sand. However, a functioning car is a system. Remove the carburetor and you’ve no longer got a working car. A system can be looked at as having inputs, processes, outputs and outcomes. Systems share feedback among each of these four aspects of the systems. Let’s look at an organization. Inputs would include resources such as raw materials, money, technologies and people. These inputs go through a process where they’re planned, organized, motivated and controlled, ultimately to meet the organization’s goals. Outputs would be products or services to a market. Outcomes would be, e.g., enhanced quality of life or productivity for customers/clients, productivity. Feedback would be information from human resources carrying out the process, customers/clients using the products, etc. Feedback also comes from the larger environment of the organization, e.g., influences from government, society, economics, and technologies. This overall system framework applies to any system, including subsystems (departments, programs, etc.) in the overall organization. Systems theory may seem quite basic. Yet, decades of management training and practices in the workplace have not followed this theory. Only recently, with tremendous changes facing organizations and how they operate, have educators and managers come to face this new way of looking at things. This interpretation has brought about a significant change (or paradigm shift) in the way management studies and approaches organizations. The effect of systems theory in management is that writers, educators, consultants, etc. are helping managers to look at the organization from a broader perspective. Systems theory has brought a new perspective for managers to interpret patterns and events in the workplace. They recognize the various parts of the organization, and, in particular, the interrelations of the parts, e.g., the coordination of central administration with its programs, engineering with manufacturing, supervisors with workers, etc. This is a major development. In the past, managers typically took one part and focused on that. Then they moved all attention to another part. The problem was that an organization could, e.g., have a wonderful central administration and wonderful set of teachers, but the departments didn’t synchronize at all.

  1. Explain the contingency theory of management.

Basically, contingency theory asserts that when managers make a decision, they must take into account all aspects of the current situation and act on those aspects that are key to the situation at hand. Basically, it’s the approach that “it depends.” For example, the continuing effort to identify the best leadership or management style might now conclude that the best style depends on the situation. If one is leading troops in the Persian Gulf, an autocratic style is probably best (of course, many might argue here, too). If one is leading a hospital or university, a more participative and facilitative leadership style is probably best.

  1. Explain theory Z as expounded by William Ouchi.

William Ouchi is an American professor of business management who has worked at the Stanford business school and the Anderson School of Management at the University of California for many years. He first came to prominence in 1981 for his work on bridging the gap between American management, then in decline, and Japanese management, then riding a boom. His belief that American business could learn from the management beliefs of Japanese industry led to his idea of Theory Z and his first book, “Theory Z: How American Management Can Beat the Japanese Challenge”. The book became a New York Times best-seller and today ranks as the 7th most widely-read business book in all US libraries. His theory is now regarded as influencing the management style of major organisations such as IBM, Procter and Gamble and Hewlett Packard.

The Different Assumptions Between American and Japanese Management

Just as Douglas MacGregor’s theory X and Y were based on management assumptions about people, so too is Ouichi’s Theory Z approach. Here are 5 Theory Z principles.

  1. Job Security : The Japanese Theory Z approach believes that people are a far too valuable resource to be lost when the economy has a downturn. In a recession, the Japanese don’t fire people, they’ll reduce their hours until things pick up. By contrast, when a US company is in trouble, they waste no time laying people off and as a result lose all the knowledge, skills, and expertise that go with them.
  2. Trust : The Japanese feel that you should never give people a reason to distrust you. Loyalty is expected of all employees. In American companies, distrust and suspicion are endemic. If a person or supplier is not delivering, the company will go elsewhere for a better deal.
  3. Decision-Taking : There are two differences between the Japanese and American approaches to decision-making. In Japanese companies, everyone gets involved in the decision-taking process as part of their commitment to the organisation. As a result, the process is slow. In the US, decision-taking is the responsibility of the few and so is quick.
  4. Teamwork: In Japan, organisational success is viewed as the result of team effort, so it is illogical to reward invididuals. In the US, there is still a belief that, if you do the work and claim the results, you should get the reward.
  5. Motivation and Target-Setting: The Japanese corporation rarely sets invididuals targets as a way of motivating them. They believe that individual motivation comes from others in the team. As a result, it often takes years before a Japanese employee receives their first performance evaluation and even longer before they are promoted. By contrast, the American corporation believes that the role of management is to set their subordinates targets and ensure that these are met, using evaluation and promotion as incentives and rewards.
  6. Why has Henry Fayol been called “The father of Modern management theory”?

Henri Fayol was a French mining engineer and management theorist. He developed the theory of Scientific Management. He studied at the mining school “Ecole Nationale Superieure des Mines” in Saint-Etienne of France. He is well known as the father of modern management theory. Fayol started as an engineer at a mining company and he became its managing director in 1888. Fayol’s contributions were first published in book titled “Administration Industrielle et Generale”, in 1916. He looked at the problems of managing an organisation from top management point of view. He has used the term ‘administration’ instead of ‘management’. His contributions are generally termed as operational management or administrative management. Fayol has divided the activities of an industrial organisation into six groups. 1.Technical: Related to production. 2. Commercial: Related to buying, selling and exchange. 3. Financial: It is search for capital and its optimum use. 4. Security: Protection of property and person. 5. Accounting (Including statistics). 6. Managerial: It includes planning, organisation, command, coordination, and control. Fayol has identified the qualities required in a manager. According to him the qualities a manager has to possess are as under; 1. Physical (health, vigour, and address) 2.Mental (ability to understand and learn, judgement, mental vigour, and capability) 3. Moral (energy, firmness, initiative, loyalty, tact, and dignity) 4. Education (general acquaintance) 5.  Technical (peculiar to the function being performed) 6. Experience (arising form the work). Fayol listed and reviewed fourteen principles of management on the following aspects. Division of Work , Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest to General Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure of Personnel, Initiative, Esprit de Corps. The principles enunciated are not aimed at being exhaustive but are the ones to which Fayol had recourse most often. He stresses the universality of such principles and their application not only to business but also for the success of all associations of individuals. Fayol regarded the elements of management as the functions of management. He said that management should be viewed as a process consisting of 5 elements. They are Planning, Organising, Commanding, Coordination, Controlling. He has regarded planning as the most important managerial function. Creation of organisation structure and commanding function is necessary to execute plans. Coordination is necessary to make sure that every one is working together , and control looks whether everything is proceeding according to the plan.

  1. Who is the father of scientific management? What was his major concern?

Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency.[1] He is regarded as the father of scientific management and was one of the first management consultants.[2] Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. The main elements of his theory were: 1. Management is a true science. The solution to the problem of determining fair work standards and practices could be discovered by experimentation and observation. From this, it follows, that there is “one right way” for work to be performed. 2. The selection of workers is a science. Taylor’s “first class worker” was someone suitable for the job. It was management’s role to determine the kind of work for which an employee was most suited, and to hire and assign workers accordingly. 3. Workers are to be developed and trained. It is management’s task to not only engineer a job that can be performed efficiently, but management is responsible for training the worker as to how the work is to be performed and for updating practices as better ones are developed. This standardizes how the work is performed in the best way. 4. Scientific management is a collaboration of workers and managers. Managers are not responsible for execution of work, but they are responsible for how the work is done. Planning, scheduling, methods, and training are

  1. State the essentials of quantitative management theory.

Quantitative Management (also known as Operations Research) off ers a systematic and scientific approach to problem solving and decision making in complex environments and situations of uncertainty and conflict. The discipline is characterised by a search for an optimal (best) answer for a problem by using quantitative (numerical) models. The use of mathematical models enables a decision maker to better understand the problems facing him/her and provides a tool for making informed and reasoned judgements. Quantitative Management is a practical field. It can be applied in many areas: Manufacturing, businesses management, banking, environmental planning, mining, housing and engineering projects, management consultancy – in fact, in every situation where numerical data are available and management or decision making takes place. The aim of the undergraduate program in Quantitative Management is to give a student a substantive theoretical background in Quantitative Management, and – at the same time – to inculcate modeling skills and systematic thinking when solving decision making problems. At the conclusion of each year of the curriculum a student would be equipped with a variety of techniques and the skill of applying them to problems that arise in practice. Quantitative Management is a multidisciplinary subject that can be usefully combined with any other subject in this College.

  1. What is meant by the term “management theory jungle”?

The purpose of this article is to identify the various schools of management theory, indicate the source of the differences, and to provide some suggestions for disentangling the management theory jungle. Koontz describes six schools of management theory as follows. 1. The Management Process School, 2. The Empirical School, 3. The Human Behavior School, 4. The Social System School, 5. The Decision Theory School, 6. The Mathematical School. The Major Sources of Mental Entanglement that create the Management Theory Jungle. Five sources of entanglement or confusion include the following: 1. The Semantics Jungle – There is no agreement on the meaning of the words management, organization, leadership, communication, and human relations to give a few examples. 2. Differences in the Definition of Management as a Body of Knowledge – What is management? Who is a manager? If everything is management and everyone is a manager, how can management theory be regarded as a useful or scientific? 3. The a priori Assumption – Ignoring the work of Fayol, Mooney, Brown, Urwick, Gulick and others on the grounds that they are universalists. 4. The Misunderstanding of Principles – For example, confusion over the validity of principles such as unity of command, and span of control. 5. The Inability or Unwillingness of Management Theorists to Understand each other – The roadblock to understanding is unwillingness.

  1. Describe the contributions of Frank and lillina Gilbreth to put scientific management in to effect.

Lillian and Frank Gilbreth were certain that the revolutionary ideas of Frederick Winslow Taylor, as Taylor formulated them, would be neither easy to implement nor sufficient; their implementation would require hard work by both engineers and psychologists to make them successful. Both Lillian and Frank Gilbreth believed that scientific management as formulated by Taylor fell short when it came to managing the human element on the shop floor. The Gilbreths helped formulate a constructive critique of Taylorism; this critique had the support of other successful managers.Her work included the marketing research for Johnson & Johnson in 1926 and her efforts to improve women’s spending decisions during the first years of the Great Depression. She also helped companies such as Johnson & Johnson and Macys with their management departments. In 1926, when Johnson & Johnson hired Lillian as a consultant to do marketing research on sanitary napkins., the firm benefited in three ways. First, it could use her training as a psychologist in measuring and the analysis of attitudes and opinions. Second, it could give her the experience of an engineer who specializes in the interaction between bodies and material objects. Third, she would be a public image as a mother and a modern career woman to build consumer trust.

  1. “Management is culture-bound”- explain.

Because we live in a cross-cultural world.Diversity is a very similar issue-most workforces are increasingly diverse- in terms of age,gender,ethnic origin,qualifications etc so managing complex staff. Culture affects management by affecting the values and beliefs that managers hold towards their job, coworkers and employees, and the organization. For example, in western management, business values. Any where from some degree to the nth degree depending upon your identification with your culture. Culture is learned. Those who apply what they learn are bound by those actions. Many people believe that safety should be part of the workplace culture. In many workplaces, it is clearly not part of the culture, and so must be achieved by management initiative.

  1. Importance of management in organization.

  It helps in Achieving Group Goals – It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort.   Optimum Utilization of Resources – Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage.   Reduces Costs – It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.   Establishes Sound Organization – No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates.  Establishes Equilibrium – It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies.   Essentials for Prosperity of Society – Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living.

  1. Distinguish between the science of management and the art of management.


Practicing managers who believe in management as a science are likely to believe that there are ideal managerial practices for certain situations. That is, when faced with a managerial dilemma, the manager who believes in the scientific foundation of his or her craft will expect that there is a rational and objective way to determine the correct course of action. This manager is likely to follow general principles and theories and also by creating and testing hypotheses. For instance, if a manager has a problem with an employee’s poor work performance, the manager will look to specific means of performance improvement, expecting that certain principles will work in most situations. He or she may rely on concepts learned in business school or through a company training program when determining a course of action, perhaps paying less attention to political and social factors involved in the situation. Many early management researchers subscribed to the vision of managers as scientists. The scientific management movement was the primary driver of this perspective. Scientific management, pioneered by Frederick W. Taylor, Frank and Lillian Gilbreth, and others, attempted to discover “the one best way” to perform jobs. They used scientific processes to evaluate and organize work so that it became more efficient and effective. Scientific management’s emphasis on both reducing inefficiencies and on understanding the psychology of workers changed manager and employee attitudes towards the practice of management. See Exhibit 1 for a summary of the principles of scientific management.


Practicing managers who believe in management as an art are unlikely to believe that scientific principles and theories will be able to implemented in actual managerial situations. Instead, these managers are likely to rely on the social and political environment surrounding the managerial issue, using their own knowledge of a situation, rather than generic rules, to determine a course of action. For example, as a contrast to the example given previously, a manager who has a problem with an employee’s poor work performance is likely to rely on his or her own experiences and judgment when addressing this issue. Rather than having a standard response to such a problem, this manager is likely to consider a broad range of social and political factors, and is likely to take different actions depending on the context of the problem. Henry Mintzberg is probably the most well-known and prominent advocate of the school of thought that management is an art. Mintzberg is an academic researcher whose work capturing the actual daily tasks of real managers was ground breaking research for its time. Mintzberg, through his observation of actual managers in their daily work, determined that managers did not sit at their desks, thinking, evaluating, and deciding all day long, working for long, uninterrupted time periods. Rather, Mintzberg determined that mangers engaged in very fragmented work, with constant interruptions and rare opportunities to quietly consider managerial issues. Thus, Mintzberg revolutionized thinking about managers at the time that his work was published, challenging the prior notion that managers behaved rationally and methodically. This was in line with the perspective of management as an art, because it indicated that managers did not necessarily have routine behaviors throughout their days, but instead used their own social and political skills to solve problems that arose throughout the course of work.

 “Management is getting things done through others”-explain the statement.

This has become a very popular definition of management for several reasons. Firstly, this definition is very simple and easy to under­stand. Secondly, it highlights the indirect nature of a manager’s job. A manager does not operate a machine or sell a product himself. Rather he guides others in producing and selling goods and services. Thirdly, this definition reveals that a manager is the leader of people working under him. Fourthly, it states that management is basically an art or practice of achieving results. The above definition is, however, inadequate for the present day concept of management. It suffers from the following drawbacks. (i) This definition does not reveal that management is a science. The modern concept of management is much wider than simply a skill in getting things done through other people. Since the days of F.W. Taylor management has become a science based on certain fundamental principles. (ii) The above definition does not highlight how does manage­ment get things done through people. It fails to reveal the functions of a manager and the skills used for getting things done. (iii) This definition does not recognize the role of human beings. It treats people as mere tools forgetting results and does not consider their feelings, emotions and needs. People are inanimate objects and cannot be treated as mere tools.  (iv)The above definition gives an impression that management gets things done by hook or crook. Results alone are not significant. The means employed to achieve results are equally important. This definition is of man’s putative character. (v) This definition does not reveal that a formal organizational set up is needed for getting things done.

  1. Distinguish between administration and management.

Distinguish between administration and management

  1. What are the key characteristics of Japanese management practices?

The culture of Japanese management that is often portrayed in Western media is generally limited to Japan’s large corporations. These flagships of the Japanese economy provide their workers with excellent salaries, secure employment, and working conditions.[citation needed] These companies and their employees are the business elite of Japan.[citation needed] Though not as much for the new generation still a career with such a company is the dream of many young people in Japan,[citation needed] but only a select few attain these jobs. Qualification for employment is limited to the few men and women who graduate from the top thirty colleges and universities in Japan. Service to the public – by providing high-quality goods and services at reasonable prices, we contribute to the public’s well-being;   Fairness and honesty – we will be fair and honest in all our business dealings and personal conduct;  Teamwork for the common cause – we will pool abilities, based on manual trust and respect; Uniting effort for improvement – we will constantly strive to improve our corporate and personal performances; Courtesy and humility – we will always be cordial and modest and respect the rights and needs of others;Ø

 Accordance with natural laws – we will abide by the laws of nature and adjust to the ever-changing conditions around us; and Gratitude for blessings – we will always be grateful for all the blessings and kindness we have received.”The “guiding principles” were “remarkable for their time.”

  1. What is management by objective(MBO)? Discuss the process of MBO.

Management by Objectives (MBO) 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. The term “management by objectives” was first popularized by Peter Drucker in his 1954 book ‘The Practice of Management’. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. According to George S. Odiorne, the system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members. Here is a quick 5 step process outline that most companies use to manage MBOs (Management by Objectives), recapping some of the things I talked about in my last post.  As you will see, this is just common sense. First, companies need to set corporate objectives.  Some goals are then set for the employees to meet those objectives.  The employee performance is then measured through the performance cycle, and evaluated at the end.  Finally, the employee is rewarded for his or her performance, and we repeat the cycle.

To elaborate on the comments I received in the last post, setting good objectives is very important; that’s at the core of MBOs.  Depending on the level of sophistication of the MBO solution, some help with objective setting, but most solutions simply help out to manage them. A big aspect of MBO solutions is the performance monitoring.  Traditionally, that’s an activity performed at the end of a performance cycle.  With an MBO solution, managers can usually record some feedback about how employees performed on a certain milestone at anytime.  This way, the employee’s contribution is not forgotten when it’s time to evaluate them. The performance evaluation is another big piece of MBO management. It is related to performance monitoring but records final observations

  1. Following Henry Mintzberg explain the different roles played by managers.

Mintzberg then identified ten separate roles in managerial work, each role defined as an organised collection of behaviours belonging to an identifiable function or position. He separated these roles into three subcategories: interpersonal contact (1, 2, 3), information processing (4, 5, 6) and decision making (7-10).

  1. FIGUREHEAD: the manager performs ceremonial and symbolic duties as head of the organisation;
  2. LEADER: fosters a proper work atmosphere and motivates and develops subordinates;
  3. LIASION: develops and maintains a network of external contacts to gather information;
  4. MONITOR: gathers internal and external information relevant to the organisation;
  5. DISSEMINATOR: transmits factual and value based information to subordinates;
  6. SPOKESPERSON: communicates to the outside world on performance and policies.
  7. ENTREPRENEUR: designs and initiates change in the organisation;
  8. DISTURBANCE HANDLER: deals with unexpected events and operational breakdowns;
  9. RESOURCE ALLOCATOR: controls and authorises the use of organisational resources;
  10. NEGOTIATOR: participates in negotiation activities with other organisations and individuals.
  1. Explain the various interpersonal skills of managers.

The list of interpersonal skills as a manager includes items that can be invaluable to any type of management position.

1. Conflict Management: Conflict management is an essential interpersonal skill that all managers need to have an understanding of, according to management expert Gregorio Billikopf writing on the University of California at Berkeley website. Do not allow conflict between employees to go unaddressed. If you see conflict starting to happen, take the employees aside and try to address the conflict immediately. The longer a pending conflict goes unchecked, the worse it will be when it finally does result in a confrontation.

2. Body Language: Much of what an employee gets from a conversation with you comes from your body language and the signals you give, according to business communication expert Lyndsay Swinton writing on the Management for the Rest of Us website. Body language signals such as crossing your arms and not making eye contact can make an employee believe that something bad is about to happen. Work on your body language skills to make sure you get the point across correctly every time. Make eye contact with your employee when you are talking to him, and avoid authoritative signals such as crossing your arms that can give the wrong impression. By the same token, crossing your arms when you are trying to make a serious point will help the employee to understand that you mean what you say.

3. Involvement: When you manage several people, you need to remember that the individual tasks of each employee are important to them. If you assign tasks, then keep a log so that you know which employee is engaged in which projects. Have weekly meetings with employees to discuss the activities they are doing in their daily job tasks, and stay up to date on what all of your employees are doing.

4. Confidant: As a manager, you do not want to get too intimately involved in the personal lives of your employees. But becoming an employee confidant for the personal issues that affect employees’ work performance is a skill that all managers need to have. If a personal issue is affecting an employee’s performance, then encourage that employee to let you know what is going on. You cannot help an employee if he does not give you some idea of what the issue is. Work with your human resources department to come up with solutions that will benefit the employee and the company.

  1. What are the skills and interpersonal characteristics that a managers has to possess?

Managers need various skills ranging from technical to design to be effective. The relative importance of these skills varies according to the level in the organization. In addition, analytical and problem-solving abilities and certain personal characteristics are sought in managers. Analytical and problem solving abilities: One of the frequently mentioned skills desired of managers is analytical and problem solving ability. In other words, managers must be able to identify problems, analyze complex situations, and by solving the problems encountered, exploit the opportunities presented. Desire to manage: The successful manager has a strong desire to manage, to influence others, and to get results through team efforts of subordinates. To be sure, many people want the privileges of managerial positions, which include high status and salary but they lack the basic motivation to achieve results by creating an environment in which people work together toward common aims. The desire to manage requires effort, time, energy, and, usually, long hours of work. Communication skills and empathy: Another important characteristic of managers is the ability to communicate through written reports, letters, speeches, and discussions. Communication demands clarity, but even more, it demands empathy. This is the ability to understand the feelings of another person and to deal with the emotional aspects of communication. Communication skills are important for effective intra-group communication, that is, communication with people in the same organizational unit. Integrity and honesty: Managers must morally sound and worthy of trust. Integrity in managers includes honesty in money matters and in dealing with others, effort to keep superiors informed, adherence to the full truth, strength of character, and behavior in accordance with ethical standards. Past performance as a manager: Past performance as a manager is probably the most reliable forecast of a manager’s future performance. Of course, an assessment of managerial experience is not possible in selecting first-line supervisors from the ranks, since they have not had such experience.

  1. “Every manager is a decision maker” discuss.

Decision making is a central aspect of virtually every management and business activity; important decisions are not only made by managers and entrepreneurs, but also by the consumers of their goods and services, and by their business rivals, partners and employees.  The ability to understand how decisions are made, and to predict, guide and improve those decisions, will be an invaluable part of every manager’s toolbox.  It is this ability that will be developed in this course. Some decisions are impossible to make analytically, for lack of time, data, computational ability, or awareness. These are situations that could put decision makers at risk of falling into systematic biases and errors. The first part of this course will raise your awareness about these ‘traps’ with a view to becoming a better intuitive decision maker. Other decisions are made with and require extensive thought and analysis, as the stakes are high, there are multiple conflicting objectives to balance, and many sources of uncertainty about the future. To these decisions we will devote the second half of the course, where you will learn how to structure decision problems, identify relevant objectives and make trade-offs among them when objectives are in conflict with one another, as well as, represent and analyse the main uncertainties and risks involved in a decision.

  1. As a manager describe when a plan considered an effective plan.

Project managers can get a head start on success by creating a project planning guide that serves as a reference tool for current and future projects. The project planning guide should be company-specific, taking the organization’s size and standard processes into account, yet flexible enough to accommodate projects of varying size and scope. A project manager who is working for a small company and coordinating relatively few team members faces a far different task than one who is managing a large, complex project with man. An effective project planning guide should outline the questions that need to be answered at the outset in order to establish clear and measurable project goals and identify the budget and departmental resources required for its completion. Senior management plays an important role in the preliminary steps of a project, as these individuals must sign off on the project’s goals and objectives and allocate the necessary resources. It is the responsibility of the project sponsor to obtain executive-level buy-in, but a project manager will often assist in preparing the initial presentation or request.

  1. How do the managerial skills differ in the organizational hierarchy?

Organisations have usually three levels. Top management is connected with planning & strategy making for overall organisations & monitoring functional managers & their functions through control reports. Top management should know how to manage managers. Middle level management need to know how to manage their functions & use their functional skills & managerial skills to unify their activities to overall goal achievement of the organisations. Lower echelon of management should know how to use job .operational skills to manage their job/operations.Managerial skills at top level would be Managing the managers & at middle level managing the functional area & lower level managing the job.


  1. Briefly discuss the different styles of decision making.

Intuitive Style: Some people are spontaneous by nature and like to decide “on the spot”. Experience and circumstances may sometimes support this type of problem solving approach. However, those who consistently use this style are – admittedly – comfortable with the “trial and error”, or “hit and miss” approach. Limited Procrastination Style: Not to be confused with never wanting to make a decision, this style involves the delaying of a decision until enough factors have been evaluated and/or enough time has gone by for the situation to stabilize. Systematic Style: Involves identifying and evaluating each possible course of action. Of all the decision making styles, this is obviously the most likely candidate for computer based decision making tools. Individualistic Style: Some individuals prefer to research and arrive at a decision on their own, without any active input from others. By Consensus Style: Applies to decisions that have to, or should preferably, be arrived at as a group.

  1. What are the most commonly used tests in the selection process of managers?

Examples of employment tests and other selection procedures, many of which can be administered online, include the following:

  • Cognitive tests assess reasoning, memory, perceptual speed and accuracy, and skills in arithmetic and reading comprehension, as well as knowledge of a particular function or job;
  • Physical ability tests measure the physical ability to perform a particular task or the strength of specific muscle groups, as well as strength and stamina in general;
  • Sample job tasks (e.g., performance tests, simulations, work samples, and realistic job previews) assess performance and aptitude on particular tasks;
  • Medical inquiries and physical examinations, including psychological tests, assess physical or mental health;
  • Personality tests and integrity tests assess the degree to which a person has certain traits or dispositions (e.g., dependability, cooperativeness, safety) or aim to predict the likelihood that a person will engage in certain conduct (e.g., theft, absenteeism);
  • Criminal background checks provide information on arrest and conviction history;
  • Credit checks provide information on credit and financial history;
  • Performance appraisals reflect a supervisor’s assessment of an individual’s performance; and
  • English proficiency tests determine English fluency.

  1. “Planning and control are Siamese twins” explain it.

PPC comprise the planning, routing, dispatching in the manufacturing process sothat the movement of material, performance of machines and operation of labour however are subdivided and are directed and coordinated as to quantity, quality, time and place.Planning and control are two basic and interrelated managerial functions. They are sointerrelated that they can be and often are considered as being one function. Planning is the preparation activity while control is the post-operation function. Both of them are so closelyrelated that they are treated as Siamese twins. Planning sets the objectives, goals, targets onthe basis of available resources with their given constraints. Control is the integral part of effective planning. Similarly control involves assessment of the performance, suchassessment can be made effectively only when some standard of are set in advance. Planninginvolves setting up to such standard. The controlling is made by comparing the actual performance with these present standard and deviations are ascertained and analyzed. Production is an organised activity of converting raw materials into useful products but before starting that work of actual production, production planning is done in order toanticipated possible difficulties and decide in advance as to how the production should becarried out in the best and economical way.Since mere planning of production is not only sufficient, hence management takesall possible steps to see that project or plan chalked by the planning department are properlyadhered to and the standards set are attained in order to achieve it, control over production isexercised. The aim of production control is to produce the products of right quality, in rightquantity at the right time by using the best and least expensive methods.

  1. What are the requirement for effective control?

Tailoring controls to plans and positions: Control techniques should reflect the plans they follow, and reflect the place in the organization where responsibility for action lies. This enables managers to take action when controls differ from their plans. Tailoring controls to individual managers: When controls are tailored to individual managers, individual managers carry out their functions of control more effectively. The system of control shouldn’t be too ambiguous to people who will utilize it. Making sure the control point up expectations at critical points: Controls that point out exceptions help managers detect areas that require attention. Its is best to look for exceptions at critical points, and the exception principle should be accompanied by principle of critical point control. Seeking objectivity of controls: An objective, accuracy, and suitable standards are required for effective control technique. Ensuring flexibility of controls: Controls should remain in place despite unexpected plans, unforeseen circumstances, or outright failures. Fitting the control system to the organizational culture: Systems that fit within the organizational culture are deemed to do best. Achieving economy of controls: Control techniques are most effective when they achieve maximum output at minimum cost. Establishing controls that lead to corrective action: Controls are useful only if they can correct plans through better planning, organization, staffing

  1. Make a comparison of fed forward and feed back systems of control.

Feed-forward is a term describing an element or pathway within a control system which passes a controlling signal from a source in the control system’s external environment, often a command signal from an external operator, to a load elsewhere in its external environment. A control system which has only feed-forward behavior responds to its control signal in a pre-defined way without responding to how the load reacts; it is in contrast with a system that also has feedback, which adjusts the output to take account of how it affects the load, and how the load itself may vary unpredictably; the load is considered to belong to the external environment of the system.

  1. Briefly describe the steps of the basic control process.

Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner.

  • Control is a continuous process
  • Control is a management process
  • Control is embedded in each level of organizational hierarchy
  • Control is forward looking
  • Control is closely linked with planning
  • Control is a tool for achieving organizational activities
  • Control is an end process

The control process is a continuous flow in Taj between measuring, comparing and action. Naturally Taj follows the four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action. Step 1: Establish Performance Standards. Taj’s Standards are created when objectives are set during the planning process. Its standard is a guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard. Step 2: Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.  Step 3: Compare Measured Performance against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation – the acceptable variance – has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.  Step 4: Take Corrective Action. The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient; however basic corrective action is the more effective.

  1. State the importance of the control process in an organization.

There is a strong school of thought holding forth this premise: chaos does not actually exist. What passes for chaos, say some, is simply a lack of complete understanding of the contributing factors in a seemingly chaotic process. “No,” say others, “chaos exists and can never be fully controlled nor completely understood.” Take this old example. Pour a bucket containing 100 golf balls onto a gymnasium floor and predict the final resting place of each of the balls. “Impossible,” say the chaotic theory proponents, “because the system at work (in this case, gravity, mass, variable air currents, floor surface, etc.), produces chaos, and things chaotic can never be accurately predicted.” “Not so,” say the anti-chaos zealots. “With enough data at hand, and understanding of the dynamic processes occurring, the path of each ball could be accurately predicted.” Given my experience with the flight of golf balls, I tend to side with the chaos proponents on this one. Nevertheless, the following statements can be made with certainty: much of what passes for chaos in business today is not chaos at all. It is a failure to control processes that are imminently controllable. Which brings us to three absolutes:

  1. Failure to control processes (whether or not you call it chaos), always results in defects and loss of quality.
  2. Compromises in quality always result in customer dissatisfaction.
  3. Customer dissatisfaction always results in the eventual failure of the product of any product or service.
  1. “Planning is looking Ahead & Control is looking back” – Comment.

Planning is Looking Ahead is true because it contributes heavily to success and gives us some control over the future. By, planning we set aside our tasks and deadlines so we can enlarge our mental focus and seeing the bigger picture. By, planning we can set our Personal or organizational goals and for this defiantly we have to look ahead. But, Planning is not ending with such strategies or guidelines. It has relation with Implementation and controls. Because plans are not always proceed as conceived. The control process measures progress towards goal attainment and indicate corrective action if too much deviation is detected. Controlling investigates whether planning was successful. Controlling referred to as terminal management function, takes place after the other functions have been completed. And for this process we have to look back and have to analyze the performance of our planning, organizing and leading. And therefore we have to look back also. So, yes we can say Control is looking back for Investigation, Analysis, and Understandings and for checking our effectiveness and efficiency.

Describe the significance of accurate planning to modern business.

As organization’s senior leadership sets goals for milestones to be reached, it is the responsibility of the management team to create initiatives to achieve these milestones. Each will yield an outcome and require a set of resources – it is these outcomes and resource requirements that need to be planned. For example, an organization that provides services is required to forecast the offerings demanded in the near future, and determine whether they are equipped to meet that need. “Will the sales force be able to effectively drive significant demand?” “Is the delivery capacity available to meet the anticipated demand that will be generated by the sales force?” These questions can only be answered once a sales plan has been created and compared to the staffing demand.These planning goals affect internal, external and financial decisions based upon the organization’s commitment to these objectives. Therefore, it is critical that these commitments are achieved and that the associated processes provide accurate results.Most planning processes have been an evolution within a company as organizations have grown. Typically, plans are created within spreadsheets and shared among a small number of those who direct the business. As organizations grow, their supporting infrastructure generally grows faster than the planning infrastructure since planning occurs once a year. As organizations mature, the planning processes required mature as well. However, the plans are still managed within spreadsheets.

  1. Describe the relationship between budget and plan.

New small business owners may run their businesses in a relaxed way and may not see the need to budget. However, if you are planning for your business’ future, you will need to fund your plans. Budgeting is the most effective way to control your cashflow, allowing you to invest in new opportunities at the appropriate time.
If your business is growing, you may not always be able to be hands-on with every part of it. You may have to split your budget up between different areas such as sales, production, marketing etc. You’ll find that money starts to move in many different directions through your organisation – budgets are a vital tool in ensuring that you stay in control of expenditure.A budget is a plan to:

  • control your finances
  • ensure you can continue to fund your current commitments
  • enable you to make confident financial decisions and meet your objectives
  • ensure you have enough money for your future projects

It outlines what you will spend your money on and how that spending will be financed. However, it is not a forecast. A forecast is a prediction of the future whereas a budget is a planned outcome of the future – defined by your plan – that your business wants to achieve.

Benefits of a business budget

  • manage your money effectively
  • allocate appropriate resources to projects
  • monitor performance
  • meet your objectives
  • improve decision-making
  • identify problems before they occur – such as the need to raise finance or cashflow difficulties
  • plan for the future
  • increase staff motivation
  1. What is meant by Management Information System (MIS)?

A management information system (MIS) provides information needed to manage organizations efficiently and effectively.[1] Management information systems involve three primary resources: people, technology, and information. Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization.[2] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems.[2]

  1. Advantage of MIS

The following are some of the benefits that can be attained for different types of management information systems.[5]

  • The company is able to highlight their strength and weaknesses due to the presence of revenue reports, employee performance records etc. The identification of these aspects can help the company to improve their business processes and operations.
  • Giving an overall picture of the company and acting as a communication and planning tool.
  • The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers. The effective management of customer data can help the company to perform direct marketing and promotion activities.
  • Information is considered to be an important asset for any company in the modern competitive world. The consumer buying trends and behaviors can be predicted by the analysis of sales and revenue reports from each operating region of the company.
  1. “Planning and controlling are the cycling work”- explain.

PLAN: Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects.

DO : Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following “CHECK” and “ACT” steps.

CHECK : Study the actual results (measured and collected in “DO” above) and compare against the expected results (targets or goals from the “PLAN”) to ascertain any differences. Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step “ACT”.

ACT :Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle.

  1. Briefly describe the process of strategic planning.

In today’s highly competitive business environment, budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm must engage in strategic planning that clearly defines objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track. A simplified view of the strategic planning process is shown by the following diagram:

The Strategic Planning Process

Mission and Objectives: The mission statement describes the company’s business vision, including the unchanging values and purpose of the firm and forward-looking visionary goals that guide the pursuit of future opportunities.  Environmental Scan: The environmental scan includes the following components:

  • Internal analysis of the firm
  • Analysis of the firm’s industry (task environment)
  • External macroenvironment (PEST analysis)

The internal analysis can identify the firm’s strengths and weaknesses and the external analysis reveals opportunities and threats. A profile of the strengths, weaknesses, opportunities, and threats is generated by means of a SWOT analysis

An industry analysis can be performed using a framework developed by Michael Porter known as Porter’s five forces. This framework evaluates entry barriers, suppliers, customers, substitute products, and industry rivalry.

Strategy Formulation: Given the information from the environmental scan, the firm should match its strengths to the opportunities that it has identified, while addressing its weaknesses and external threats.

Strategy Implementation: The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm’s resources and motivation of the staff to achieve objectives.

Evaluation & Control: The implementation of the strategy must be monitored and adjustments made as needed.

Evaluation and control consists of the following steps:

  1. Define parameters to be measured
  2. Define target values for those parameters
  3. Perform measurements
  4. Compare measured results to the pre-defined standard
  5. Make necessary changes
  1. What is decision support system? What is its advantage?

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.


  1. Improves personal efficiency
  2. Speed up the process of decision making
  3. Increases organizational control
  4. Encourages exploration and discovery on the part of the decision maker
  5. Speeds up problem solving in an organization
  6. Facilitates interpersonal communication
  7. Promotes learning or training
  8. Generates new evidence in support of a decision
  9. Creates a competitive advantage over competition
  10. Reveals new approaches to thinking about the problem space
  11. Helps automate managerial processes
  1. Discuss why banker-customer relationship is very important.

Banker customer relationship,is just a special contract where a person entrusts valuable items with another person with an intention that such items shall be retrieved on demand from the keeper by the person who so entrust. Thus the banker is the one who is entrustd with the above mentioned valuable items,whie the person who entrust the tems with a view to retrieving it on demand is called the customer. The relationship is thus based on contract.It is based on certain terms and conditons.For instance,the customer has the right to collect his deposit on demand personally or by proxy.The banker too is under obligation to pay, so long the proxy is duly auhorised by the customer It has a semblance of creditor /debtor relationship.Thus the customer is the creditor who has the right of demand on the money from the banker.As long as the banker is keeping the customer items,the banker is indebted to the customer. The elationship is also fiducial.The terms and conditons governing the relationship should not be leaked to a third party,particularly by the banker.Also the items kept should not be released to a third party without due authorisation by the customer. Banker customer relationship,is just a special contract where a person entrusts valuable items with another person with an intention that such items shall be retrieved on demand from the keeper by the person who so entrust. Thus the banker is the one who is entrustd with the above mentioned valuable items,whie the person who entrust the items with a view to retrieving it on demand is called the customer. The relationship is thus based on contract.It is based on certain terms and conditons.For instance,the customer has the right to collect his deposit on demand personally or by proxy.The banker too is under obligation to pay, so long the proxy is duly auhorised by the customer It has a semblance of creditor /debtor relationship.Thus the customer is the creditor who has the right of demand on the money from the banker.As long as the banker is keeping the customer items,the banker is indebted to the customer. The relationship is also fiducial.The terms and conditons governing the relationship should not be leaked to a third party,particularly by the banker.Also the items kept should not be released to a third party without due authorisation by the customer.

  1. What is code of ethics?

An ethical code is adopted by an organization in an attempt to assist those in the organization called upon to make a decision (usually most, if not all) understand the difference between ‘right’ and ‘wrong’ and to apply this understanding to their decision. The ethical code therefore generally implies documents at three levels: codes of business ethics, codes of conduct for employees and codes of professional practice. Code of ethics (corporate or business ethics): A code of business ethics often focuses on social issues. It may set out general principles about an organization’s beliefs on matters such as mission, quality, privacy or the environment. It may delineate proper procedures to determine whether a violation of the code of ethics has occurred and, if so, what remedies should be imposed. The effectiveness of such codes of ethics depends on the extent to which management supports them with sanctions and rewards. Code of conduct (employee ethics): A code of conduct for employees sets out the procedures to be used in specific ethical situations, such as conflicts of interest or the acceptance of gifts, and delineate the procedures to determine whether a violation of the code of ethics occurred and, if so, what remedies should be imposed. Code of practice (professional ethics): A code of practice is adopted by a profession or by a governmental or non-governmental organization to regulate that profession. A code of practice may be styled as a code of professional responsibility, which will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear account of what behavior is considered “ethical” or “correct” or “right” in the circumstances.


Concept is an idea of something formed by mentally combining all its characteristics or particulars; a construct.


A principle is a law or rule that has to be, or usually is to be followed, or can be desirably followed, or is an inevitable consequence of something, such as the laws observed in nature or the way that a system is constructed. The principles of such a system are understood by its users as the essential characteristics of the system, or reflecting system’s designed purpose, and the effective operation or use of which would be impossible if any one of the principles was to be ignored.

Examples of principles:

  • a descriptive comprehensive and fundamental law, doctrine, or assumption,
  • a normative rule or code of conduct,
  • a law or fact of nature underlying the working of an artificial device.

A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more variables under given situation. They serve as a guide to thought & actions.

Therefore, management principles are the statements of fundamental truth based on logic which provides guidelines for managerial decision making and actions. These principles are derived: –

  1. On the basis of observation and analysis i.e. practical experience of managers.
  2. By conducting experimental studies.


Theory – a well-substantiated explanation of some aspect of the natural world; an organized system of accepted knowledge that applies in a variety of circumstances to explain a specific set of phenomena; “theories can incorporate facts and laws and tested hypotheses”; “true in fact and theory”.

A collection of ideas which set forth general rules on how to manage a business or organization. Management theory addresses how managers and supervisors relate to their organizations in the knowledge of its goals, the implementation of effective means to get the goals accomplished and how to motivate employees to perform to the highest standard.

Theory is a proposed explanation whose status is still conjectural and subject to experimentation, in contrast to well-established propositions that are regarded as reporting matters of actual fact. Synonyms: idea, notion hypothesis, postulate. Antonyms: practice, verification, corroboration, substantiation.


conflict – an open clash between two opposing groups (or individuals); “the harder the conflict the more glorious the triumph”–Thomas Paine; “police tried to control the battle between the pro- and anti-abortion mobs”

An armed struggle or clash between organized groups within a nation or between nations in order to achieve limited political or military objectives. Although regular forces are often involved, irregular forces frequently predominate. Conflict often is protracted, confined to a restricted geographic area, and constrained in weaponry and level of violence. Within this state, military power in response to threats may be exercised in an indirect manner while supportive of other instruments of national power. Limited objectives may be achieved by the short, focused, and direct application of force.

In literature, conflict is an inherent incompatibility between the objectives of two or more characters or forces. Conflict creates tension and interest in a story by adding doubt as to the outcome. A narrative is not limited to a single conflict. While conflicts may not always resolve in narrative, the resolution of a conflict creates closure, which may or may not occur at a story’s end.

Basic nature of conflict

Conflict in literature refers to the different drives of the characters or forces involved. Conflict may be internal or external—that is, it may occur within a character’s mind or between a character and exterior forces. Conflict is most visible between two or more characters, usually a protagonist and an antagonist/enemy/villain, but can occur in many different forms. A character may as easily find himself or herself in conflict with a natural force, such as an animal or a weather event, like a hurricane. The literary purpose of conflict is to create tension in the story, making readers more interested by leaving them uncertain which of the characters or forces will prevail.

There may be multiple points of conflict in a single story, as characters may have more than one desire or may struggle against more than one opposing force. When a conflict is resolved and the reader discovers which force or character succeeds, it creates a sense of closure. Conflicts may resolve at any point in a story, particularly where more than one conflict exists, but stories do not always resolve every conflict. If a story ends without resolving the main or major conflict(s), it is said to have an “open” ending. Open endings, which can serve to ask the reader to consider the conflict more personally, may not satisfy them, but obvious conflict resolution may also leave readers disappointed in the story.


The basic types of conflict in fiction have been commonly codified as “man against man”, “man against nature”, and “man against self.” In each case, “man” is the universal and refers to women as well.

Although frequently cited, these three types of conflict are not universally accepted. Ayn Rand, for instance, argued that “man against nature” is not a conflict because nature has no free will and thus can make no choices. Sometimes a fourth basic conflict is described, “man against society”, Some of the other types of conflict referenced include “man against machine” (The Terminator, Brave New World), “man against fate” (Slaughterhouse Five), “man against the supernatural” (The Shining) and “man against god” (A Canticle for Liebowitz).

Man against man

“Man against man” conflict involves stories where characters are against each other. This is an external conflict. The conflict may be direct opposition, as in a gunfight or a robbery, or it may be a more subtle conflict between the desires of two or more characters, as in a romance or a family epic. This type of conflict is very common in traditional literature, fairy tales and myths. One example of the “man against man” conflict is the relationship struggles between the protagonist and the antagonist stepfather in This Boy’s Life.

Man against society

Where man stands against a man-made institution (such as slavery or bullying), “man against man” conflict may shade into “man against society”. In such stories, characters are forced to make moral choices or frustrated by social rules in meeting their own goals. The Handmaid’s Tale and Fahrenheit 451 are examples of “man against society” conflicts.

Man against nature

“Man against nature” conflict is an external struggle positioning the hero against an animal or a force of nature, such as a storm. The “man against nature” conflict is central to Ernest Hemingway‘s The Old Man and the Sea, where the protagonist contends against a marlin. It is also common in adventure stories, including Robinson Crusoe.

Man against self

With “man against self” conflict, the struggle is internal. This is a conflict that is usually associated with an external conflict. A character must overcome his own nature or make a choice between two or more paths – good and evil; logic and emotion. A serious example of “man against himself” is offered by Hubert Selby, Jr.‘s 1978 novel Requiem for a Dream, which centers around stories of addiction.

Competition vs. Conflict

But in a conflict the desired result of one person is actually incompatible with the desired result of another. If one succeeds, the result is contrary to the desires of the other. Related Questions

Competition is one or more people striving for the same goal–being the person who sells the most shoes, or runs the fastest in the race, or scores the highest in the test. Everyone wants to see the same thing happen–shoes getting sold, fast running or high scoring. Competition is a secretive, zero-sum game played by individuals for private gain; conflict is open and sometimes raucous but always communal, a public encounter in which it is possible for everyone to win by learning and growing.

The first assumption is a scarcity mindset as opposed to an abundance mindset.  Here, all resources are assumed to be scarce and limited.  When we assume that we’re fighting for a slice of a pie of a fixed size, then our win must be someone else’s loss.  I know I’ve written posts in the past critiquing modernity’s assumption that there are no limits to anything, but there are pitfalls to assuming there’s only a limited amount of desirable things to go around.

The second assumption is a closed mindset as opposed to an open mindset.  This is a “if you’re not for us, you’re against us” attitude.  In a closed mindset, one is not receptive to being enriched by other sides in a debate.

Many of the problems our nation faces stem from a mindset of competition between individuals or interest groups in society rather than a mindset of conflict.  In so many areas, we see dualistic, competition-based logic: politics, culture war issues, economic issues, church policies, etc.

Conflict is not all bad.

Conflict has been broadly defined as the perceptions held by the parties involved, in that they hold discrepant views or have interpersonal incompatibilities (Jehn, 1995). Typically, interpersonal conflicts at workplaces involve interaction between two interdependent parties that perceive incompatibility of goals, interests, values, or ideas.

People sometimes think that being a part of a best place to work means that it is party time all the time. That’s not the case. Sure we work hard and play hard, but really what we do is challenge each other to greatness. We know that to be challenged can also be truly rewarding.

It says somewhere in the bible that a ‘good wife’ will debate and challenge her husband so he can see what he cannot see. I think this is the basis of all partnerships or even leadership teams. If we keep playing it safe, living in our comfort zone then how can we ever possibly create something bigger than ourselves?

There are more people in the RedBalloon team than it once was, and I don’t necessarily have the same moment-by-moment contact with each individual that I used to. As a result I rely heavily on the team leaders around me to deliver on the vision, the passion and the commitment to our people.

Having differences of opinion, viewing the world differently, holding the mirror up so we can see how we are really performing is all healthy. When there is fundamental respect for each other, then challenges are seen as growth opportunities.

Neutralizing of  Conflict

There are times in life when a conflict may arise that needs intervention from a third party. You may find yourself in a situation where you have to mediate a conversation between others who may not agree on a specific topic or procedure. When faced with this challenge, it is critical to “put out the fire” before it spreads to others and / or possibly impacts productivity. Consider these tips the next time you have to mediate a conversation between two or more people.

There are times in life when a conflict may arise that needs intervention from a third party. You may find yourself in a situation where you have to mediate a conversation between others who may not agree on a specific topic or procedure. When faced with this challenge, it is critical to “put out the fire” before it spreads to others and / or possibly impacts productivity.

Below are some tips to consider the next time you have to mediate a conversation between two or more people.

At the beginning of the discussion, ask each party to provide an opening statement regarding what brought them to the table and what they are hoping to achieve.

Based upon the opening statements, build an agenda for “cross-talk” (conversation between all parties). The goal of cross-talk is to:

  • Promote venting
  • Identify needs and interests
  • Generate options
  • Get the parties to talk to each other
  • Clarify issues
  • Exchange information
  • Build rapport among parties
  • Summarize the information. (You cannot do this enough.)
  • Use the agenda to frame the discussion. In the agenda, be neutral, concise, and fairly broad.
  • Identify the needs and interest first before providing the options. This helps the transition into negotiation.
  • Express empathy towards the disputants to help minimize emotions.

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